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issue 149 OCTOBER

Pipe masters Thanks to a bold investment strategy, Global Pipe Company is creating state-of-the-art manufacturing facilities and preparing the foundations for international expansion

News: Global Pipe Company is exploring opportunities in its home market and internationally



Editor Editors Chairman Andrew Schofield Editor Libbie Hammond libbie@schofieldpublishing.co.uk Assistant Editor Will Daynes Staff Writer Jo Cooper Editorial Administrator Emma Crane Art Editor Gérard Roadley-Battin Production Manager Fleur Daniels Advertising Designer Fiona Jolliffe Managing Director Joe Woolsgrove Operations Director Philip Monument Business Development Manager Mark Cawston Sales Tim Eakins Darren Jolliffe Jonas Junca Dave King Theresa McDonald Rob Wagner Research Managers Ben Richell Natalie Griffiths Kieran Shukri Editorial Researchers Jeff Johnson Wendy Russell Richard Saunders ­Office Manager/Advertisement Administrator Tracy Chynoweth Digital Subscriptions Iain Kidd digital @schofieldpublishing.co.uk Web Sales James Whiteley jwhiteley@schofieldpublishing.co.uk

Climate change is one of the most serious challenges the world faces today, and to avoid inflicting serious harm to the global ecosystems, we need to fundamentally change the way we power the world

So

, there’s been some interesting recently, with the Scottish Government’s announced ban on fracking, and DONG Energy’s (Danish Oil and Natural Gas) plans to change its company name following a strategic transformation from fossil fuels to renewables (largely offshore wind), and the divestment of its upstream oil and gas business. Greenpeace welcomed the Scottish news as ‘a huge win for thousands of people’ – the same news was lambasted by UK Onshore Oil and Gas as ‘a poor decision, ignoring Scotland’s rich heritage and expertise in oil and gas’. Whether it includes fracking or not, what is clear is that there is an urgent need to develop a robust future energy mix – DONG Energy (or Ørsted as it will be called after 31st October) has already shown its commitment to clean energy and its statement for the future is ambitious: ‘Our vision is a world that runs entirely on green energy. Climate change is one of the most serious challenges the world faces today, and to avoid inflicting serious harm to the global ecosystems, we need to fundamentally change the way we power the world – from black to green energy.’ As 2018 approaches, do you foresee more investment in renewables?

© 2017 Schofield Publishing Limited all rights reserved 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130

editor LIBBIE HAMMOND

@EOG_magazine please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, and correct at time of writing, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

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1


Regulars

4

Shifting views

Brand building can help to shift public perceptions, and some major oil brands are really working hard to connect to their audience

6

The right decision

Pipeline corrosion control systems can fall victim to the pressure to reduce capex – but this can cost a lot more in the long run

8

Go with the flow

18 Creating the right culture

22 A new phase

12 The power to transform

How battery technology has the potential to create entire nations that are self-sufficient in energy generation

15 Cause and prevention

The five most common causes of bearing failures and steps that can be taken to prolong the service life of replacements

22

4

6 26 2

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Volatility is ahead for the refining sector, as the IMO Marpol Annex VI 2020 looms closer and the need to comply gets more urgent

30 Welcoming the world

Some of the recent developments within the oil and gas industry

The lack of local capacity in Nigeria for heavy fabrication and engineering is now being addressed and should open up major opportunities

26 Changes ahead

A mass flowmeter installation is bringing multiple benefits to a Colorado oil and gas producer

10 News

A positive health and safety culture requires companies to put H&S at the heart of operations – it has to be key

November 2017 sees the opening of ADIPEC – the largest oil and gas and conference in Asia, Africa, Europe and the MENA region


Contents

Profiles

32

32 Global Pipe Company 40 RedGuard Specialist Services 42 AXTech AS 45 The Hub Power Company (HUBCO) 48 BHDT GmbH 50 Inter Terminals 52 Frerk Aggregatebau GmbH 55 Chart Ferox 57 TGE Marine Gas Engineering

48

60 Keppel Seghers 62 Ocean Installer 65 Parsons Peebles 67 Tube-Mac Piping Technologies 71 Marine Fabricators 73 Plexus 76 Vattenfall 80 TWMA 84 Dammam Shipyard 87 Offshore Painting Services

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views Shifting

Peter Walshe explains why it’s worth investing in brand building to change public perceptions

A

Below Peter Walshe is Global BrandZ Director at Kantar Millward Brown

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s one of the most scrutinised industries in the world, moves made by major oil companies to demonstrate greater responsibility can be met with scepticism by media commentators and other influencers. When Shell, BP, ExxonMobil and Total backed the US carbon tax, for example, Greenpeace called it a ‘PR stunt’. Evidence from the latest BrandZ Top 100 Most Valuable Global Brands research, however, shows that efforts made by oil brands to be perceptibly more conscientious are having a positive impact on their reputation, value and – as a result – their bottom line. As one of the most important intangible assets a business possesses, alongside its IP and data, brand is a major source of shareholder value. Strong brands predispose customers to purchase, build long-term loyalty, protect a business from risk and help it recover from a crisis. Brands exist in the minds of consumers, which is why the BrandZ research measures the opinions the public holds about them as well as their financial strength.

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The world’s ten most valuable oil and gas brands increased their value to the businesses that own them by five per cent over the last year, in contrast to a drop of 20 per cent the previous year. This turnaround was in part due to more favourable geopolitical climate, recovering oil prices and businesses streamlining their operations, but it also reflects the focused investment companies made in developing the consumer-facing part of their brands. Oil and gas brands have increasingly recognised the importance of public opinion, and re-examined their communications strategies to reach a wider audience beyond legislators, journalists, academics, lobbyists and other influencers. They are also making a concerted effort to engage millennials, who are inclined to select brands which are aligned with their values. The value of Shell’s brand has increased 23 per cent to $18.3 billion in the last year, following its merger with BG and investment in marketing, brand-building and corporate social responsibility (CSR). It is the 57th most valuable brand in the world.


Brand management

world’ – and used advertising to explain how its investment in Gulf coast natural gas facilities will both create jobs and reduce emissions. The world’s most valuable oil and gas brand, ExxonMobil grew its value 11 per cent to $18.7bn in the last year. BP increased its value +5 per cent to $11.1bn, helped by a major advertising campaign that focused on the launch of its dirt busting fuels. It also highlighted its innovations, which included collaborating with GE to develop a diagnostic system of sensors that monitor offshore platform performance and safety to enable preventative maintenance. Oil and gas brands with aspirations to accelerate growth by delivering purpose to a high level and better connecting with their audiences should: Find a point of differentiation. Once this has been identified it must be amplified through a long-term marketing strategy that is geared towards repositioning the brand and improving its image. Stay the course. Don’t deviate from long-term strategies to lower carbon impact, even if regulations are relaxed. Being responsible will deliver greater shareholder value. Speak up. Aim to reach audiences beyond those who directly influence regulations and contracts. Public opinion will have an increasing influence on corporate reputation. Shape the story. Communicate about new technologies and innovations that are good for the environment, emphasising how people can’t live without the products of the oil industry.

Shell’s aim is to own the conversation about the future of energy. Its Make the Future clean energy advertising campaign has proved extremely popular with consumers, topping 2016’s viral video charts for number of views. The brand’s actions have spoken as loudly as its words, demonstrating a shift away from fossil fuels – it acquired BG to strengthen its position in liquid natural gas (LNG), partnered with Toyota on fuelling stations for hydrogen cars, and is also looking to develop offshore wind farms. Shell scores well across the five characteristics our research has shown indicate a healthy brand with future growth potential. Consumers perceive it as having a strong sense of purpose, and a high level of innovation, which it brings to life in creative, powerful, and memorable communications and through a great brand experience. Over time, this leads people to feel ‘love’ for the brand – a word that is not often used in relation to the oil industry, but it is there in Shell’s case. Also aiming to reframe the climate change conversation was ExxonMobil, which communicated with consumers about its brand purpose – summarised as ‘Powering the

The signs indicate that consumers believe the efforts made by oil brands to demonstrate more responsible behaviour are authentic. It’s likely that consumers and NGOs concerned with climate change and ethical issues will raise both the volume of their voices and the pressure they put brands under in coming years. Every brand will need to have a long-term strategy in place to shift and sustain perceptions.

global brandZ Peter Walshe is Global BrandZ Director at Kantar Millward Brown. The BrandZ™ Top 100 Most Valuable Global Brands study has been carried out by WPP's marketing and brand consultancy Kantar Millward Brown annually since 2006. It is the only study that combines interviews with over three million consumers globally about thousands of brands with analysis of their financial and business performance. For further information please visit: millwardbrown.com

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The right

decision The dangers of false economy in a low oil price environment. BY MARK SMITH

T

he Spanish have a phrase: lo barato sale caro. Roughly translated, it means that which is bought cheap, often turns out expensive. It may sound obvious, but they’re words to live by when making procurement decisions for safety and operation-critical components in oil and gas projects. One such area is in pipeline corrosion control. Whereas once upon a time manual, after-the-fact inspection was the only way to assess the problem, now there are a variety of sensors available to monitor corrosion rate and send back the data to a central location. Based on this data, anti-corrosion chemicals are injected into the oil flow, allowing for beforethe-fact action. It seems like a relatively simple set-up when described in plain terms, but the pressure to reduce capex when designing and installing a corrosion control system can lead to substandard solutions being implemented, which result in much higher opex in the end – or even worse – potential loss of containment.

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Procurement: I can resist anything but temptation to reduce capex The prolonged low-oil price environment has put margins under sustained pressure throughout the industry. Where operators are investing in new projects, they are keeping a tighter rein on their spending. This means engineering, procurement and construction (EPC) contractors are becoming more competitive than ever, squeezing costs wherever possible to put in the leanest possible tender. For aspects of a project like corrosion monitoring, which make up a relatively small proportion of the total project capex cost, the temptation to underspend is especially strong, as its less likely to attract attention than with a big-ticket item. It’s understandable, but not condonable. Often, the operator has created specifications in consultation with experts, and includes a specific type of system. Often, a solution is then included in the tender which meets the specifications in a narrow technical sense but not in the way requested by the operator – meeting the letter of the ‘law’ but violating the spirit.


Corrosion control

The risks of false economy The risks of this approach are twofold. On the one hand, there’s the risk of increased ongoing costs. On the other, a substandard system might increase corrosion risk. An example: an operator specifies for a corrosion monitoring system, including corrosion data management. They want a completely online solution, automatically feeding sensor data back into the system for analysis. What they get instead is a cheaper solution that relies on data loggers – sending someone out into the field a few times per month to take manual readings. The data is less granular, and the ongoing cost is much greater and an unnecessary element of personnel risk is introduced. Or, consider a situation where a customer needs a corrosion system to operate in a high H2S environment. Traditional electrical resistance (ER) probes have struggled in these conditions, however the box is ticked to say they’re up to the task and the buyer, lacking technical expertise in this specific niche, takes it at face value. Over the coming months and years, the data collected is so noisy as to be nearly unusable, and the probes are gradually replaced with more expensive ones designed for the conditions. The EPC may have submitted the lowest tender, but the operator has ended up paying the price twice. So, there are the obvious costs directly associated with maintaining and replacing the data collection technology, but there are also the less obvious but potentially bigger costs that result from the poor-quality data. As with all things, decisions based on bad data are probably bad decisions. When it comes to corrosion monitoring, this data is used to assess how much (if any) corrosion inhibitor to inject into the gas or oil flow. Typically, poor data and uncertainty lead operators to err on the side of overdosing, rather than underdosing, thereby spending countless millions on expensive and unnecessary volumes of inhibitor chemical. However, more worrying than the extra cost associated with bad data, is the risk of increased corrosion. Surprisingly, corrosion inhibitor chemicals can themselves be quite corrosive if used in too great a concentration or where they aren’t needed. It’s a delicate balancing act – too much or too little can be ruinous. Top quality data is therefore crucial.

Loss of containment – the worst-case scenario Risking downtime and reduced return on investment by replacing parts that wear out more quickly is one thing, but loss of containment is obviously the biggest risk of unchecked corrosion. Fatalities and injuries, environmental hazards, damage to reputation, legal expenses, downtime, the cost of asset repair or replacement and the cost of the spilled product – it’s a risk-list that makes for grim reading. As such, when it comes to corrosion monitoring, the old

doctors’ adage applies: prevention is always better than cure, and effective corrosion monitoring is essential for prevention.

What’s an operator to do? It’s tricky for operators to fix the problem of false economy when it comes to corrosion monitoring. Unlike a scenario where, say, a pump is handed over by a contractor and it stops working within a few months, corrosion stays invisible for a long time. By the time – months or years later – the problem comes to light and the false economy becomes clear, it’s often too late. So how to avoid cheap becoming expensive? Though the problems often stem from the supplier, there are some steps the buyer can take to avoid false economy. The first step is to ensure specifications are as up to date as possible. One operator I’ve seen wanted a system including full data communication capabilities, but was unable to purchase one, because the company’s standards – written in the 1980s – specified the use of data loggers. The employee involved knew what they needed, but was hamstrung by old specifications. Then, it’s important not to take a ticked box at face value on a tender. If a system needs to stand up to a high H2S environment for example, the contractor should be able to provide data to prove its assertion that the suggested system can do so – the burden of proof should be put squarely on the contractor. In a low-oil price world it’s essential to get product flowing as quickly and cheaply as possible to start generating a return on investment. In that context, it’s tempting to eschew spending the upfront time and effort to get it spot on in a part of the project which, to be honest, constitutes a small part of the total expenditure. However, false economy is one of the biggest, most insidious risks of a low-margin landscape. If ever in doubt, remember what the Spanish say: lo barato sale caro.

Cosasco Mark Smith is Business Unit Director, EMEA, at Cosasco. Cosasco offers complete corrosion control. From consultancy, to manufacturing, to in-field support and long-term maintenance. Taking in both intrusive and non-intrusive corrosion and erosion monitoring sensors – unrivalled in the market for sensitivity. This data allows bespoke chemical optimisation solutions to finetune the levels of anti-corrosion chemicals injected. All coupled with complete data and communications solutions. No-one else can provide such a full service, full-suite approach to controlling corrosion. For further information please visit: cosasco.com

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flow Go with the

A Colorado oil and gas producer is using mass flowmeters for wellhead allocation

A

Colorado energy producer is taking advantage of new Coriolis mass flowmeter technology that ensures both stable and uninterrupted measurements of oil with high gas content. The new meter is cost effective, rugged, and reliable technology that helps them meet investors’ needs for accurate and reliable well allocation measurement information.

Above A row of separators, each one with an Independent energy company looking OPTIMASS 6400 Below left OPTIMASS 1400 with a remote mount Below right OPTIMASS 6400 in a separator dog house

for cost effective well allocation metering Denver-based Bonanza Creek Energy, Inc. is an exploration and production company focused on extracting oil and associated liquids-rich natural gas in the United States. The company has operations in Colorado’s Denver-Julesburg Basin, a major oil and gas field that is being actively developed through the use of horizontal drilling and multistage fracture stimulation.

Bonanza Creek is developing its assets in the basin by drilling horizontal lateral wells. It needed an accurate and reliable way to measure how much oil and water each well was producing. Tank gauging is the standard method used to measure the volume of production at each well. While simple and relatively accurate, tank gauging is time consuming, costly, and entails some safety risks. To account for the production variations among the wells and provide accurate well allocation measurement information, each well on a pad had to flow into a separate tank. Bonanza Creek was looking for a cost-effective way to provide an accurate oil meter at each wellhead, where the oil flows into a separator that separates the water, gas, and oil. It anticipated there would be gas entrained in the fluid coming out of the separator, so it needed an option that could handle entrained gas. Gas entrainment refers to the presence of gas bubbles in hydrocarbon fluids. Entrained gas can disturb the sensitivity of mass flow measurement of liquids, decreasing accuracy or even stopping measurement completely. It can occur for many reasons, for example, due to degassing; leaks upstream of (or in) a negative pressure area; excessive cavitation and levels falling below the minimum in supply containers, as well as agitators in tanks; or long drop distances for media into tanks. Entrainment can also occur due to status transitions in process control, such as when starting, shutting down, or cleaning the system.

New technology ensures stable measurement even with high gas content Knowing that Bonanza Creek was seeking an accurate oil

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Flow meters

meter that could handle gas entrainment, Bob Phagan, sales engineer for I.C.S. Sales, arranged a demonstration of a new mass flowmeter device that is ‘gas bubble resistant.’ I.C.S. Sales is a leading manufacturer’s representative in the Rocky Mountain Region, specialising in process instrumentation. The new meter, the OPTIMASS Coriolis mass flowmeter, developed by KROHNE Inc., offers reliable indication of gas bubbles in a process by using a combination of various measurements to detect a two-phase flow. The meter detects and signals gas entrainment reliably and maintains the active measurement in all measuring conditions with gas content from zero to 100 per cent by volume. The measuring sensor and signal converter were designed to offer complete digital signal processing, from the production of the drive oscillation of the measuring tube to the evaluation of the sensor signals. The meter maintains continuous mass density measurement and provides measured values at all times. At the same time, it can report the two-phase status and output a preconfigured alarm, in accordance with NAMUR NE 107 requirements. “We knew the new technology would be the best way for them to handle entrained gas in this application, and the demonstration showed them clearly how the meter could help,” said Phagan. He explains that for this application, the OPTIMASS meters are installed on the crude oil leg of the oil/water/gas separator. Less expensive metering technology is used to meter the water, since it is of lower value to investors. Gas is metered using differential pressure (DP) devices. After purchasing the first 30 meters in 2013, Bonanza Creek compared the tank volume versus the metered volume over a 24-hour period and found only minor differences

in the measured values. These minor differences in the measured volumes were due to the phenomenon known as shrinkage. It has since installed more than 400 OPTIMASS meters. Bonanza Creek can now accurately manage wellhead allocation, and provide stakeholders critical production data. The model used depends upon the required accuracy. Private leases use the OPTIMASS 1400, which offers a published accuracy of 0.15 per cent, while the OPTIMASS 6400 model is used for Federal Bureau of Land Management leases, with a published accuracy of 0.10 per cent. The OPTIMASS 6400 has been approved for custody transfers of both liquids and gases, making it ideal for process industries and specialist applications like LNG, CNG, or supercritical gases in terminal or storage/bunkering, along with custody transfer applications. The meter is the first Coriolis mass flowmeter in the world to feature advanced entrained gas management (EGM), with no loss of measurement with gas entrainment up to 100 per cent of volume. Unlike other mass flowmeters, where relative movement between gas and fluid dampens the amplitude of the measuring tube and interferes with the electronics’ capability to determine the actual resonant frequency, the OPTIMASS models with EGM can follow and correct for the varying amplitudes. EGM continues to present an actual measured reading, together with an indication or configurable alarm that improves processes by identifying transient gas entrainments. “Bonanza Creek has found the meters to be rugged and durable and the price compared to other options is a great benefit to them,” said Phagan. “They have also found entrained gas management to be another huge benefit to their operations.” The new meters are now being used at other exploration and production companies working in the Wattenberg Fields. After a head to head demonstration and evaluation comparing OPTIMASS meters to a competitor meter without EGM, one major energy company purchased and installed about 180 OPTIMASS meters in 2015, and had expectations to buy more in the future.

KROHNE KROHNE is a world-leading manufacturer and supplier of industrial process instrumentation solutions. It has 90 years of experience providing flow, level, temperature, and pressure instrumentation to all industry sectors around the globe. For further information please visit: us.krohne.com

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In Brief Danish deal Aquila Capital has acquired a wind energy project in Denmark near Kappel on Lolland with an installed capacity of over 25 MW. With the acquisition, Aquila Capital’s transaction volume in the wind sector has now surpassed 1000 MW. The project consists of seven wind turbines, all of which are 3.6 MW, by Danish manufacturer Vestas. Six of these are V117 turbines and one is a V126 turbine. The project has entered into a long-term full maintenance contract with Vestas. Roman Rosslenbroich, CEO and Co-Founder of Aquila Capital, said: “The combination of excellent wind resources with a very transparent support scheme means Denmark offers an attractive diversification to the wind energy projects we manage. Due to the highly professional sector environment and the well-developed market for commercial power purchase agreements, we believe Denmark will continue to offer an appealing environment for professional investments.”

Key objectives Bibby Offshore has successfully completed three further contracts from global oil and gas operator, Apache North Sea. The multimillion pound contracts

Powering demand for increasing capacity ABB power equipment, automation systems and lifecycle support care programmes are being deployed across four new floating storage units (FPUs) that are scheduled to, or have recently come on stream, tapping into the huge new production capacity in the North Sea. Among the most recent FPUs to come on stream are Armada Kraken Pte Ltd, a subsidiary of Bumi Armada Berhad, a Malaysia-based international offshore oilfield services provider and the Western Isles Development Project (WIDP), operated by Dana Petroleum. Other FPUs being supplied are set to operate in the Greater Stella Area, located in the heart of the Central Graben area of the Central North Sea and within the Mariner field, both on the UK Continental Shelf. For the Armada Kraken FPU, ABB supplied medium and low-voltage switchgear, transformers, medium-voltage variable speed drives (VSDs), uninterruptible power supplies (UPSs) and electrical monitoring and control systems. All are packaged within a prefabricated e-house to protect from the extreme weather conditions encountered in the North Sea. ABB’s scope also includes the automation system, controlling process and marine systems that control the vessel’s routine operations, providing real-time feedback and diagnostic information to its operators. The vessel was delivered to the oil company EnQuest UK, which began operations at the Kraken field in the East Shetland Basin of the North Sea earlier this year, (2017). The Kraken oil field is the biggest subsea oilfield project in the North Sea with an expected capacity of 140 million barrels of oil and a life of 25 years.

utilised Bibby Offshore’s diving support vessels, Bibby Polaris and Bibby Topaz, and its construction support vessel, Olympic Ares. Operating across North Sea assets during Q3 2017, the vessels engaged with project activities, which included supporting field development and inspection repair and maintenance. Commenting on this most recent win, Barry Macleod, UKCS managing director at Bibby Offshore, said: “Securing a triple win from Apache reinforces Bibby Offshore’s key objectives; to fully appreciate our clients’ requirements and provide them with efficient, multi-scope operations. “We are delighted that once again Apache has trusted Bibby Offshore with this repeat business.”

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Forecast solution bringing benefits The Estonian transmission network operator Elering has been using ProCom BoFiT for the past five years to forecast the electrical network load across Estonia and its regions. At the end of 2016, ProCom got the order to extend the BoFiT system to predict gas consumption in the country and up to 36 gas distribution stations as well as the forecast of the electrical transmission network losses in Estonia. These forecasts have run productively since the end of February 2017. From better gas forecasting Elering is expecting an increased security of supply and reliability; improved utilisation of transport and distribution capacities as well as an more exact planning base for its targeted expansion; as well as more efficient gas purchasing over a longer period. With a more accurate network losses forecast, Elering is able to purchase the exact amount at the best price and to avoid control energy costs. BoFiT generates day-ahead and intraday forecasts. The grid loss forecasts use some of the following predictions as influence factors, some of which also BoFiT generated: SS Estonian power generation in the various large-scale power plants and the wind power generation as well as the load. From those BoFiT derives the net position of Estonia SS Net position of Latvia, Lithuania, Belarus and Kaliningrad SS Cross-border energy flows with Russia

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News

Total’s wash tank technology license Sulzer’s Chemtech division has been granted a license covering the Total-patented Wash Tank Technology for Oil Processing. The main purpose of this technology is to enhance the removal of water, salt, and contaminants from oil and emulsions, by a controlled distribution of the feed into the bottom of a hull tank of an FPSO/FSO/FPU which transforms the water-in-oil dispersion into an oil-inwater one where high efficiency phase separation takes place more easily. The technology also involves a significant simplification of the topsides crude oil process. The following benefits can be achieved and are maximised by an early concept selection of this technology: SS Reduced topsides weight, CAPEX and complexity through significant minimisation of topsides processing equipment, including reduced number of separators and elimination of electrostatic coalescers (dehydrators & desalters) and associated heat exchangers SS Robust performance through more flexibility towards flow rate variations and potential future capacity increases, as well as mitigation of risks associated with naphthenate formation (emulsion stabilisation, deposits accumulation) SS Improved Energy Efficiency and Lower OPEX through reduction of utility consumptions (heating, cooling and electrical loads) SS Improved safety through a more aerated layout of the FPSO topsides

Project strategy John Crane Asset Management C has secured a contract to supply Maersk Oil with data services to support the planned maintenance strategy at one of the largest new developments in the UK North Sea. At the Culzean field, John Crane Asset Management Solutions will provide data build services as well as establishing a maintenance plan for all topside equipment. A Detailed Criticality Analysis and Maintenance Definition (DCAMD) strategy will be

REAL COPY

developed to cover high-criticality equipment with generic procedures being used for non-critical appliances. Additionally, in June, John Crane Asset Management Solutions was awarded a five-year contract to provide condition based maintenance services

Shell plans project with ITM Power

with another major operator in the UK North Sea. In October 2015, John Crane Group

Shell, together with ITM Power, plans a project to install a large-scale electrolyser to produce hydrogen at the Wesseling refinery site within the Rheinland Refinery Complex. With a capacity of ten megawatts, this would be the largest unit of its kind in Germany and the world’s largest PEM (Polymer Electrolyte Membrane) electrolyser. This electrolyser technology is also suitable to improve the stability of the electricity grid with a growing share of intermittent renewable energy sources, such as from solar and wind. Shell through Shell Deutschland Oil GmbH and Shell Energy Europe Ltd with consortium partners ITM Power PLC, SINTEF, thinkstep and Element Energy have been invited to the preparation of a grant agreement by the European Fuel Cells and Hydrogen 2 Joint Undertaking (FCH 2 JU), following a competitive call for proposals. The project aims to enable the construction and operation of a large scale 10 MW electrolyser that can produce high quality hydrogen and CO2 free hydrogen while demonstrating technology and cost improvements through upscaling and new business applications. Electrolysis using low-cost renewable electricity could be a key technology for a potential CO2 free hydrogen production in the Shell Rheinland Refinery. “The envisaged hydrogen electrolysis would be a step into the future – opening the door to many new development options for the refinery,” said Dr. Thomas Zengerly, the General Manager for the Shell Rheinland Refinery. The hydrogen produced could be integrated into the refinery processes. The location will also allow the refinery to later expand its facilities to supply hydrogen to potential new customers outside the refinery. “This project would allow us to test new technologies in the refinery context,” he added.

announced it had acquired Aberdeen independent Asset Management business, XPD8 Solutions Ltd. Both contracts will enable the strengthened John Crane Asset Management Solutions team to use their expertise to fully meet the customer needs and further increase their asset performance. John Morrison, Managing Director at John Crane Asset Management Solutions, said: “To be involved in supporting the maintenance strategy on one of the most significant projects on the UK Continental Shelf in recent years is fantastic news for the company. Having an effective strategy will stand the development in good stead for years to come, giving those in charge the confidence that their topside equipment will perform reliably and efficiently.”

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transform The power to

Sami Khoreibi discusses how battery technology has the potential to create entire nations that are self-sufficient when it comes to energy generation

B

Below Sami Khoreibi, founder and CEO of Enviromena

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attery storage gives us the ability to store power when we have more than we need. We can then release it at times of high demand. It’s a real game changer when it comes to renewables, which in the past have been less reliable than fossil fuels because they depend on the changeable forces of nature. For example, when Enviromena first started installing solar panels on rooftops ten years ago, we could only reap power when the sun was shining. Night time presented a ‘shut off shift’ every evening, when the panels were essentially useless.

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Now, thanks to the evolution of technology, we can connect storage to solar panels so excess power feeds into a battery during the day and releases it at night. We’re generating 24-hour electricity and what’s more, it’s coming from a completely renewable source. With the majority of our projects being in the Middle East and North Africa, where the sun blazes during the day, that presents a huge opportunity.

What could it mean for the Middle East? Now picture that scenario but rather than a rooftop, we’re talking about a whole country. Currently in the Middle East and North Africa we have a grid which relies on multiple energy elements, like solar, gas, oil and coal. In the next ten years, we’re going to be at the point where, for about five USD cents we’ll be producing 24 hour electricity, very consistently and eliminating the need to import things like coal from other countries to balance the grid. That becomes a huge value proposition with countries producing their own energy without having to depend on foreign sources. The benefits of countries producing their own energy without having to depend on foreign sources is huge and that’s not even touching on the environmental impact.


Energy storage

We’re seeing massive declines in the cost of solar plus storage. And that means we’re moving towards a renewable baseload energy system. When Enviromena first started building solar installations in 2007 the cost per kwh per plant was around 35 USD. Today we’re closer to three USD, which is a huge shift. That will please end users, who ultimately don’t seem to mind where their kwh are coming from, as long as they are cheap. To most, energy is agnostic.

Investment and collaboration

The advancement of storage technologies, particularly in the context of use with solar, is going to lead to a huge transformation of the way we approach energy in the next ten years. However, there are other factors to consider. The cost and value of oil is likely to be affected if countries can create consistent energy from solar and batteries. As a region that is dependent on the revenues of oil, we need to understand the implications of this.

What needs to happen to further drive the battery revolution? The PV revolution, which Enviromena was very much at the centre of, was driven by technological improvement and strong investment in PV companies. It will be exactly the same for battery storage. The technology and economics of lithium ion batteries are in the beginnings of a revolution, where performance is increasing while cost is going down. Between 2011 and 2015 China’s capacity of solar module production increased by a factor of six. It was a significant contributor to the declining cost of solar. That same type of increase is occurring in lithium ion batteries today. Between 2016 and 2020 we’re looking at a six-fold increase in lithium ion battery production capacity.

As it’s becoming cheaper, investors are pricking up their ears and treading, albeit carefully, into the world of storage. The financial community is growing more comfortable with investments in energy storage, which lowers the cost to deploy systems even further. Of course, it’s still in the early days but the more we can prove the results, the easier funding will become going forward. There’s no doubt that the USA is leading the way when it comes to funding and the proof is in the pudding; the first quarter of this year was its biggest to date for the energy storage market. According to GTM Research and the Energy Storage Association’s (ESA) latest US Energy Storage Monitor, 234 megawatt-hours of energy storage were deployed in the first quarter, which represents more than fiftyfold growth year-over-year. Looking at Enviromena’s home of the Middle East progress is also being made. The UAE plans to invest $163 billion in renewable projects to achieve its 2050 targets and a further $100 billion is being invested across the GCC (Gulf Co-operation Council). Meanwhile, GCC member nations are creating new R&D facilities to develop new and improved energy storage solutions in partnership with leading international technology partners. If we can maintain this momentum and increase collaborations between the public and private sector, I have no doubt that the storage revolution will come into full swing sooner than predicted.

ENVIRONMENA Sami Khoreibi is founder and CEO of Enviromena, the leading provider of transformative energy solutions in the Middle East and Africa. Having installed 17,0000 solar home systems and built more than 40 solar power plants since 2007, the company is now focusing on combining battery storage with its solar projects. For further information please visit: enviromena.com

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Motors and Generators

Cause and

prevention

Close examination of failed motor bearings will reveal the root cause of failure and suggest remedial actions to avoid a recurrence. Phil Burge explains the five most common causes of such bearing failures and the steps that can be taken to prolong the service life of their replacements

E

lectric motors typically incorporate a locating and non-locating bearing arrangement to support the rotor radially and locate the rotor axially relative to the stator. Locating bearings position the shaft and support axial loads, while non-locating bearings permit shaft movement in the axial direction and compensate for overload conditions when thermal expansion of the shaft occurs.

Electric motor bearings can fail prematurely for any number of reasons but in the vast majority of cases the prime causes are one or more of the following: electrical erosion, poor lubrication practices, external mechanical stresses such as excessive vibration, improper installation procedures relating to bearings and shaft components, and insufficient bearing load. So, how are these failure modes identified and what can be done to ensure that they don't reoccur? Let’s look at each of them in turn:

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Electric motor bearings can fail prematurely for any number of reasons but in the vast majority of cases the prime causes are one or more of the following: electrical erosion, poor lubrication practices, external mechanical stresses such as excessive vibration, improper installation procedures relating to bearings and shaft components, and insufficient bearing load

Electrical erosion - Electric erosion or arcing occurs when a stray current passes between the bearing rings from the rotor to the motor frame which is earthed. These stray currents may be the result of asymmetry in the motor’s magnetic circuit or unshielded power cables, but these days are more likely to be a side effect of the fast-switching PWM circuits of motor controllers such as variable speed drives. The extent of the damage depends on the amount of energy and its duration, but it usually manifests itself as pitting damage to the rolling elements and raceways, and lubricant degradation, which ultimately leads to premature bearing failure. Prevention is simply one of blocking the path of these stray currents by introducing an insulating medium into the

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bearing structure. An electrically insulated bearing, normally installed at the non-drive end of the motor, comes in two types: coated and hybrid. Coated bearings (such as SKF’s ‘INSOCOAT’ range) are standard bearings that have the external surfaces of their inner or outer ring plasma-sprayed with an aluminium oxide to form an insulating coating; whereas hybrid bearings have insulating rolling elements of silicon nitride running between standard steel rings.

Inadequate lubrication and contamination - If the lubricant film between the rolling elements and raceways is too thin due to inadequate viscosity or contamination, metal-to-metal contact will occur, which, if left untended,


Motors and Generators

motor is at a standstill and subjected to external sources of vibration over a period of time. Bearings should be secured in transit by locking the shaft axially using a flat steel profile bent into a 'U' shape, while carefully preloading the ball bearing at the non-drive end. The bearing at the drive-end should then be radially loaded with a strap. Where the motor is at standstill for prolonged periods, the shaft should be turned from time to time.

Improper installation and setup – Installation errors include the use of inappropriate mounting tools, such as hammers, which may transmit damaging forces to the motor bearing’s rolling elements; drive-to-driven shaft misalignments, which will cause excessive vibration and premature bearing wear; imbalances in the driven load, also leading to excessive vibration, and excessive belt tension (in the case of motor shaft-mounted pulleys), resulting in asymmetric loads on the motor’s drive-end bearing. There are various tools and instruments to help overcome these problems, including shaft alignment and vibration analyser instruments, belt tension measurement tools, as well as appropriate and industry recognised tools and methods for mounting the bearings themselves. Insufficient bearing load - Bearings always require a minimum load to function properly and if a motor runs for long periods of time unloaded this may cause damage, which will appear as smearing on the rolling elements and raceways. The problem is more acute when using cylindrical roller bearings, since these are typically used to accommodate heavier loads. Unless preloaded bearings are used, external loads should always be applied to motor bearings. Being aware of these failure modes and the methods that are available to avoid them will go a long way to ensuring a long and trouble-free service life for motor bearings. will lead to premature bearing failure. Lubrication as a subject is well beyond the scope of this article but, basically, good lubrication practice comes down to checking whether the appropriate lubricant is being used and that re-greasing intervals and lubricant quantities are adequate for the application. Lubricant containing contaminants may indicate seal failure, so these will need to be checked to determine if they should be replaced or upgraded.

Vibration damage - Motors that are transported without the rotor shaft being held securely in place may be adversely affected by relative movements within the bearing clearance as a result of vibration. Bearing damage can also occur if a

SKF Phil Burge is Country Communications Manager UK at SKF. SKF is a leading global supplier of bearings, seals, mechatronics, lubrication systems, and services which include technical support, maintenance and reliability services, engineering consulting and training. SKF is represented in more than 130 countries and has around 17,000 distributor locations worldwide. Annual sales in 2016 were SEK 72,787 million and the number of employees was 44,868. For further information please visit: skf.com

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culture Creating

the right

Fostering a health and safety culture is a big challenge for energy companies operating in the Middle East. In part, this is because the workforce is often drawn from countries where the tolerance of risk is greater, and attitudes to safety vary

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he sector is also facing pressure to find efficiencies; the International Energy Agency’s annual World Energy Investment report found that global energy investment fell by 12 per cent in 2016, the second consecutive year of decline. The pressure to hit targets in the face of continued oversupply and suppressed oil prices can mean that health and safety considerations aren’t always foremost. Yet for global energy players, health and safety is a massive consideration – impacting on brand reputation, investment and of course, most importantly, employee wellbeing. So

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how do you develop a safety culture in such circumstances? In its simplest form, culture is the way in which people do things. A key step in creating a good health and safety culture has to be ensuring everyone has a good grounding in health and safety best practice so that they are mindful of the impact of their actions. That means providing many different types of training. Training that: equips people to be competent to do a risk assessment; gets all workers to a common standard and shows managers how to safely manage their teams. Organisations also need to develop supervisors’ health, safety and environmental management skills and provide


Health & Safety

individuals with job specific training for particular high-risk situations. When it comes to delivery, training needs to take into account the challenge of catering for a multicultural workforce. That can mean using pictures, diagrams, role play and IT rather than just the written word. It’s also important to ensure the training is provided in multiple languages and allow for the differences between employee groups, in terms of their roles and knowledge. Companies in the Middle East are increasingly recognising the role training can play in developing a health and safety culture. Indeed, NEBOSH’s (National Examination Board in

Occupational Safety and Health) international registrations now make up 67 per cent its students. The Middle East, where the energy sector is one of the prime industries, represents one of its largest markets. One of NEBOSH’s international students is Rustam Sadykov. Rustam holds its International General Certificate in Occupational Health and Safety and, most recently, gained the NEBOSH National Diploma in Occupational Health & Safety in February 2017. Not only this, but his high performance in the qualification gained him a Best Candidate Award at the recent NEBOSH Graduation Ceremony. He is now using his knowledge in a new role

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Health & Safety

Acknowledging frontline staff who are following a good health and safety approach, really encourages the right behaviours

Above Rustam Sadykov

Prevention working for Royal Dutch Shell Plc at the Pearl GTL (gas-toliquid) plant in Qatar. Responsible for health, safety, security and the environment, Rustam has around 900 workers from multiple countries to think of. While he is responsible for ensuring goals are met in terms of incidents, leaks and injuries, he is also tasked with enhancing a positive health and safety culture. “This is a challenge as you often have people on short-term contracts – between three and 12 months – who are from Nepal, Bangladesh, India and many other countries,” says Rustam. “We need to make sure all employees are brought up to speed and working to a consistent, safe standard.” For Rustam, whose earlier experience includes working within the energy sector in Russia, prevention is vital. “That means implementing things which are understandable to people. For instance, you must train and encourage staff to look around the workplace for hazards or risks which could harm themselves or a colleague, and then get them to think about how that could be prevented.” He elaborates: “One of the techniques I use is to encourage people to divide tasks into small steps, looking for hazards at each point. This really helps them to understand where problems can arise.”

Environment Preventative training is vital, but it can’t do it all. The workplace environment needs to be right too if skills and knowledge are to be transformed into real behavioural change. The organisation’s culture must enable, encourage and value the behaviours that the training aims to instil. That

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means empowering frontline staff. Rustam continues: “It’s important to give ownership to frontline staff – all workers, not simply supervisors. This is one of the key ways to improve the safety culture.” Beyond empowerment, management’s commitment and willingness to engage with the staff on safety issues is also important. This can be as simple as a line manager showing an interest, asking questions about the training an employee has undertaken and checking that an employee is getting the relevant opportunities to use their new skills. At another practical level, it might be ensuring that someone has the appropriate physical tools they need to do their job or demonstrating the value the company places on HSE training by incorporating it into an individual’s overall career development plan. “Management recognition is important,” agrees Rustam. “Acknowledging frontline staff who are following a good health and safety approach, really encourages the right behaviours.” He suggests that there is also merit in some form of reward or recognition scheme. “Rewarding and recognising when people follow good safety practice can be a big motivator to some of our staff. Public recognition works very well as it shows that the organisation prioritises and values health and safety, which is vital if the culture is to continue to evolve.”

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A positive health and safety culture is prevention focused. It requires companies to have health and safety at the heart of their thinking – in the way things are done. It needs to be a key consideration when corporate decisions are made. When there are many competing commercial and cultural pressures to accommodate, the attention that health and safety requires can be put at risk. However, as Rustam is demonstrating, with the right focus on training, corporate culture plus a commitment to prevention, it is possible to develop an effective health and safety culture.

nebosh The National Examination Board in Occupational Safety and Health (NEBOSH) was formed in 1979 and is an independent examination board and awarding body with charitable status. NEBOSH offers a comprehensive range of globally-recognised, vocationally-related qualifications designed to meet the health, safety, environmental and risk management needs of all places of work in both the private and public sectors. Courses leading to NEBOSH qualifications attract around 50,000 candidates annually and are offered by over 600 course providers around the world. NEBOSH examinations have been taken in over 120 countries. For further information please visit: nebosh.org.uk


The strong combination of technology and trust Creating a good climate is a matter of trust. Even more than onshore is this valid for ventilation and air-conditioning applications offshore, where the conditions are often harsh, available space is constricted and the climatic conditions can be very different. Systemair offers a wide range of robust and reliable ventilation, air conditioning and heating products. Our wide range of marine applications includes: all types of centrifugal and axial fans, products with IEC standard motors, thermo fans with medium range temperature up to 200 oC, explosion proof fans, air curtains, fan heaters, chillers and heat pumps, air handling units, air distribution products, electric heaters, accessories. Systemair units were for example installed in the Yamal in Russia, where a large plant for the recovery and liquefaction of natural gas is being developed. The realization of such a project is in good hands at Systemair. The competence and specialist knowledge of their employees guarantee that you will receive 100% reliable and high-quality technical products that are used in the demanding offshore markets.

Systemair B.V. · Phone +31 416 685 555 info@systemair.nl · www.systemair.nl

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phase A new

High returns to be made by investing in local engineering capacity in West Africa. By Dr Amy Jadesimi

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igeria is Africa’s largest oil producer, and one of the most prolific in the world. It is strange, therefore, that Nigeria’s oil sector is the lowest contributor to GDP of all the OPEC countries. According to the National Bureau of Statistics, in Q1 2017 the oil sector provided just 8.9 per cent of total GDP in Nigeria, despite accounting for 90 per cent of exports. By comparison, Angola’s oil and gas sector contributes 45 per cent of total GDP. This problem, which is serious, is a symptom of a much larger issue in Nigeria, that is the lack of local capacity for heavy fabrication and engineering. This shortcoming has stunted economic growth for years. Nigeria’s deficient infrastructure development and lack of skilled labour has been exacerbated by chronic underinvestment from

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the government and the politically exposed local and international companies that have historically monopolised the contracts awarded in the sector. Contractual terms with both local and international companies, also often result in extractive rather than mutually beneficial agreements. For the first time in 50 years the trajectory of the industry is rapidly and dramatically changing, largely due to the investment and participation of a new cohort of transparent, well-run private indigenous companies (‘Real Local Private Sector’) – which are winning contracts based on their skill level and value addition, rather than their rolodex. The passing of the Local Content Act in 2010, opened the door for these value adding local companies to enter the market and play a significant role. The Act mandates the use of local capacity and personnel at increasing levels


Fabrication facilities

for petroleum sector projects and contracts. The initial implementation of the Act, sadly, provided a platform for rent seeking behaviour. Often local private companies posed, and some still do pose, as legitimate business partners for international companies when in reality, they were doing little more than charging fees, allowing international companies to take the work offshore. Another powerful group of individuals and companies fighting the fair implementation of this Act are politically exposed monopolies, made wealthy by decades of receiving uncompetitive and exclusive billion dollar contracts. Despite strong local and international opposition, the Act is beginning to have its desired effect. The change is largely due to the huge value addition, cost savings and jobs created by legitimate indigenous companies, which are

proactively investing to localise activities. In addition, in April 2017 President Buhari signalled the end to rent seeking and monopolies in Nigeria by issuing strong directives that specifically broke up an oil and gas monopoly and ensured that it could never return. According to This Day, a prominent Nigeria newspaper, over 170 operators were forced to close their doors while the Intels monopoly was in place; President Buhari’s directive is a victory for private sector actors desperate for a level playing field. At the same time the President recognised the positive contribution that private sector companies, like LADOL in particular, have made to the industry. This directive has been followed up by a series of Executive orders all aimed at increasing ease of doing business and supporting real local and international long-term investors.

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LADOL’s mission is to continue its development across the Free Zone and attract non-oil and gas manufacturing and engineering companies to set up in the Zone. The emphasis in this new phase of development will be on building sustainable infrastructure and facilities, to support companies that want to sustainably manufacture for the Nigerian and West African market

For LADOL, owner and operator of the only deep offshore logistics base in Lagos, this recognition of its contribution to the economy and the instigation of a truly competitive market for logistics and ports services marks a very important breakthrough. LADOL has been investing and developing its facilities for 15 years, today it is a fully integrated $150 million logistics base, built to service offshore and near Lagos oil and gas blocks 24/7. The existence of this facility has been critical factor enabling many oil majors, such as Shell, Chevron and Exxon Mobil, who have been pondering further investments in Nigeria’s offshore acreages to greenlight those investments. In terms of cost savings alone, operating out of LADOL could save

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oil majors $1 billion per year in logistics costs. LADOL is continuing its campaign to drive greater proliferation of real, value adding private sector companies in Nigeria, with a view to increasing industrial capacity such that supply chains are localised, jobs are created, and value is returned to the local economy. Since 2001, LADOL has been working to turn an unused swamp area inside Lagos’ largest port, into a leading global sustainable industrial free zone. Today LADOL is home to Nigeria’s only fully integrated deep offshore logistics base, West Africa’s largest shipyard and the heaviest crane capacity in the region. In disrupting the stagnant status quo in the petroleum


Fabrication facilities economy by 2030. At present LADOL is undertaking one of the largest oil and gas fabrication project in West Africa and has set new records in Nigeria for the level of work being performed by local labour. The yard is fabricating 6000 tonnes for Total’s flagship FPSO, the Egina FPSO, all of which will be integrated at LADOL when the FPSO arrives in Q4. Beyond the Egina FPSO, the yard has the capacity to fabricate up to 1000 tonnes per month. Additionally, LADOL has just started construction on its Upskilling Academy. This initiative will create a skilled pool of labour within the Free Zone, trained in a campus with many schools. This will increase the capacity for future projects to be done in LADOL and across Nigeria and train young people to work in non-petroleum sectors.

sector, LADOL has set a higher standard for local industrial activity and is helping ensure that international companies transfer their technology. Importantly, LADOL understands that its success is only possible if it can demonstrate to all stakeholders the huge benefits of its sustainable business model. Already through its logistics base and its ship yard it has proven that Nigerians can add value to the most complex and challenging oil and gas projects in the world – the result for the international oil companies will be elevated returns from investments in Nigeria. A recent report by the Business and Sustainable Development Commission found that sustainable business models, like LADOL’s, are poised to add $12tn to the global

LADOL’s mission is to continue its development across the Free Zone and attract non-oil and gas manufacturing and engineering companies to set up in the Zone. The emphasis in this new phase of development will be on building sustainable infrastructure and facilities, to support companies that want to sustainably manufacture for the Nigerian and West African market. Once completed, LADOL will be a blueprint for the establishment of sustainable industrial free zones across West Africa. In a low oil price environment where operation costs are under more scrutiny than ever, it’s imperative to source local, legitimate partners for high-value projects. International companies that latch onto these new opportunities and operate sustainably in the Nigerian market will reap the benefits alongside their local partners.

ladol Dr Amy Jadesimi is LADOL’s MD and CEO. For further information please visit: ladol.com

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Changes

ahead

Jaime Ruiz-Cabrero, Clint Follette, and Rafael Moreno look at IMO MARPOL Annex VI 2020 and predict there is volatility ahead for the refining sector

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he International Maritime Organization’s MARPOL ANNEX VI regulation limiting sulphur emissions from marine fuels to 0.5 per cent in all marine areas will take effect in 2020. It is a commendable initiative that Below Jaime Ruiz-Cabrero will reduce polluting emissions in shipping and help address global environmental concerns. As of today, however, the affected players and sectors are simply not ready to comply. This does not mean that the regulation will meet with widespread noncompliance, but rather that the price to comply will be high during the period immediately after the regulation comes to effect. Below The result will be increased volatility in an already Clint Follette volatile refining sector. Some players will benefit during the disruption period, while others will see significant erosion in their bottom line.

What are the options? Below Rafael Moreno

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The options for compliance are widely known. Ship owners can build scrubbers, refineries can invest in facilities to desulfurize fuel or upgrade residue to gasoil, and ships can move to liquefied natural gas (LNG) as a preferred fuel—a step that would also require hefty investment in port infrastructure. Unfortunately, each option requires different actors to make the upfront investment, in sectors that already face

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challenges today. The result may resemble a game of chicken, in which each player stays on track, hoping that the other will change course first. For this reason, we anticipate that upfront investments will remain limited until the regulation officially comes into effect, thus driving high price volatility in 2020 as involved parties belatedly scramble to achieve compliance by using either bunker gasoil or low-sulphur fuel oil (LSFO) - regulation-compliant fuel oil that produces sulfur emissions of 0.5 per cent or less. About 90 per cent of the marine fuel sold today is 3.5 per cent sulphur. In total, about half of global high-sulphur fuel oil (HSFO) production is consumed as marine bunker. Because the IMO regulation will require ships to use marine fuel with no more than 0.5 per cent sulphur, we believe that in the short term we will see a glut of nearly two million barrels per day of HSFO.


Refining

Potential outcomes In the short-term we believe that the increase in volatility will have a profitable upside for complex, high-conversion refineries with low fuel oil yields. Gasoil and LSFO pricing will necessarily rise relative to HSFO prices, widening the light-heavy differentials and providing hefty margins to conversion units that produce gasoil. The situation is analogous to the one that arose in 2006 following the US Environmental Protection Agency’s introduction of lowsulphur fuels for road traffic. On the other hand, simple refineries with high HSFO yields—as well as refineries with fluid catalytic crackers (FCCs) that produce high gasoline yields—will suffer. The Boston Consulting Group’s refining model simulations show that in order to comply with required distillate streams and to minimise HSFO production, units that co-produce

gasoline and gasoil, such as delayed cokers, will have to increase their utilisation, pushing gasoline production above its demand level and depressing market prices. The long-term outlook is different, owing to a combination of pricing signals and investment cycles that change the mix. Faced with a wide spread between LSFO and HSFO and between distillates and HSFO, shipping companies will demand more ships with scrubbers. At the equilibrium point, use of HSFO in ships fitted with scrubbers should continue to be a mainstream alternative. Companies could slowly introduce LNG-based vessels, given a sustained price-differential advantage, but no such advantage may exist in countries that already rely on LNG imports to supply their natural gas demand for power generation for industrial or home use. In any case, such vessels will be limited to ships with regular routes that call on ports with LNG-enabled facilities.

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Refining Creative responses could pay big dividends. Refining companies might even consider developing partnerships with shipping companies, mitigating their investment limitations by using off-take agreements

What to do? There is still time to act. Refining companies should carefully analyse investment options for producing regulationcompliant fuel and eliminating noncompliant HSFO. The period of volatility that will arrive in 2020 will provide good margins to compensate for part of the investment. Refineries should also carefully look at their portfolios and act today, before they are left holding assets that will struggle to survive in a post-2020 environment. Refining companies with compliant fuel should focus their marketing and trading capabilities accordingly. LSFOcompliant bunker will command a premium price against today’s price realisation. Companies need to find in advance the right markets to place their product, however; otherwise, they will have to rely on intermediaries that will capture a sizable part of the upside. Creative responses could pay big dividends. Refining companies might even consider developing partnerships with shipping companies, mitigating their investment limitations by using off-take agreements. Wärtsilä, a manufacturer of marine equipment, is already offering ship owners the option to repay their investment in scrubbers through a premium paid on top of HSFO costs, thereby reducing the capital requirement in a cash-strapped industry, while enabling them to benefit from the HSFO price advantage that will follow.

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complex refineries with little HSFO and gasoline production will benefit, others will face challenging times. It is not too late to act, but companies need to move quickly and decisively.

boston consulting group

Volatility ahead—and opportunity for those that are better prepared

Jaime Ruiz-Cabrero is a partner and managing director in the Singapore office of The Boston Consulting Group (BCG). He leads the energy practice in Asia Pacific and the refining sector globally. Clint Follette is a partner and managing director in the firm’s Dallas office and leads its petrochemicals sector globally. Rafael Moreno is a principal in BCG’s Madrid office and an expert in refining operations. BCG is a global management consulting firm and the world’s leading advisor on business strategy. It partners with clients from the private, public, and notfor-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Founded in 1963, BCG is a private company with 85 offices in 48 countries.

In short, the refining sector is about to undergo significant changes and volatility due to the IMO’s revised MARPOL Annex VI regulation, which will take effect in 2020. While

For further information please visit: bcg.com

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world

Welcoming the

W

ith the UAE holding the world’s sixth largest oil reserves, and remaining one of the most reliable producers and exporters of crude oil, it is hard to argue with those that refer to its capital of Abu Dhabi as being at the heart of the oil and gas industry. One event that has played a significant role in positioning Abu Dhabi as a key destination for the sector is the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC). The largest oil and gas exhibition and conference in Asia, Africa, Europe and the MENA region, ADIPEC is seen as one of the world’s most influential events in the industry’s calendar. As a premium exhibition and conference platform, ADIPEC hosts hundreds of speakers, thousands of exhibiting companies and tens of thousands of trade professionals from around the world. By attracting Energy Ministers, global CEO’s and leading decision makers, the event provides one of the most important channels for companies to do business and exchange information. The event itself stretches across 135,000 square metres of exhibition space and hosts more than 2000 exhibiting companies from 135 countries around the world. With 25 Country Pavilions offering companies the chance to generate

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new business and capitalise on existing bi-lateral trade opportunities, ADIPEC has already played a role in enabling more than $9.76 billion of business to be conducted in its lifetime. Some of the global players to regularly visit the four-day event include BP, CEPSA, ExxonMobil, GS Energy, Shell, Statoil, TOTAL and Wintershall. It also provides a vital platform for some of the largest national oil companies such as BAPCO, Dolphin Energy, Gazprom, Indian Oil Corporation Ltd, Petronas and Saudi Aramco. ADIPEC provides the stage for Offshore and Marine, a must-attend event for key players within the offshore and


Adipec 2017

marine sectors. Over four days this event includes the use of a waterfront vessel display area and over 8000 square metres of exhibition space housing more than 150 exhibiting companies. It also hosts a dedicated conference theatre for a diverse mix of strategic and technical sessions. 2017 marks the third edition of Offshore and Marine and this year it intends to build on the success of 2016 by delivering an ever-more comprehensive platform for visitors, speakers and delegates. Last year’s ADIPEC event also saw the debut of the Security in Energy Conference. This particular gathering was praised for bringing together cyber and critical infrastructure security experts, and oil and gas executives to discuss the very real security threats and challenges facing the industry today. With reports stating that a high percentage of oil and has organisations rate their cyber readiness to be low and to have experienced at least one security compromise in recent years, it is seen as imperative that the industry and government work together to pre-empt and disrupt malicious attacks. ADIPEC’s second annual Security in Energy Conference will this year look to continue to deliver the latest market intelligence in energy security protocols as the threat of new and evolving attacks increases. The agenda for the 2017 conference shines the spotlight on the best innovations, security practices and crisis planning within the industry in order to anticipate supply disruptions and major incidents. Discussions will include a spotlight on critical infrastructure threats and front-line protection strategies across the Middle East, recognising the importance of solid defence platforms to combat cyber-attacks, understanding the fall out of such attacks and the financial cost implications, and how the retrofitting of existing industrial control systems (ICS) can help to build a secure and resilient infrastructure across one’s oil and gas facilities. An equally integral part of ADIPEC 2017 will be its

Women in Energy Conference. Taking place on 15th November 2017, it will provide a global platform where the finest minds in the industry will convene to connect, engage, inspire change and put forward solutions for building an ever-more diverse and inclusive oil and gas environment. First launched in 2013, then as an evening of discussion centred around the lives and careers of three pioneering business leaders, the conference has grown in the years since to become a wide platform for collaboration, learning and forging new relationships. ADIPEC 2017 plays host to the fifth edition of the conference, where further initiatives will no doubt be developed and host discussions help to highlight the continued contributions women are making across all oil and gas sectors. In April 2017, three keynote conference speakers were confirmed for ADIPEC. Bob Dubley, Group Chief Executive of BP, Patrick Pouyanné, Chairman and Chief Executive Officer of Total and His Excellency, Mohammed Barkindo, Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) will all take to the stage during the course of the event. The presence of these industry leaders further highlights the importance associated with ADIPEC and the topics discussed at its 2017 edition will no doubt be those that help shape the future of the industry over the next 12 months.

ADIPEC The Abu Dhabi International Petroleum Exhibition and Conference 13-16 November 2017 For further information please visit: adipec.com

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Pipe

masters Global Pipe Company (GPC) is a pipe manufacturer located in Jubail in the eastern province of Saudi Arabia. The company was founded in 2010 as SaudiGerman joint venture and started its commercial operation in 2013. Global Pipe Company has worked on a significant number of line pipe jobs providing major quantities of Longitudinal Submerged Arc Welded (LSAW) pipes for Saudi Aramco projects. Seven months after our last interview with GPC’s management, the company has embarked upon a number of strategic investments targeting the optimisation of the company’s products in terms of quantity and quality. In this issue, Mr. Ahmed Hamad Al-Khonaini, GPC’s Managing Director, and Mr. Maher Fkaier, GPC’s General Manager, give us an overview about GPC’s expansion plans.

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PROFILE

Global Pipe Company

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PROFILE

Master Gas Project – mission accomplished Over the last 15 months, Global Pipe Company has worked almost exclusively on the Master Gas Project. The major portion of the second expansion of this prestigious project (Master Gas Systems Expansion II – MGS II) was awarded to Global Pipe Company, with the company being chosen to supply approximately 550 km of the pipes required (from a total quantity of around 900 km). The main size required for MGS-II is 56” in wall thickness ranging from 14mm to 26mm. Even though the required sizes, with big diameters and low thicknesses, are very challenging for the LSAW manufacturing process, Mr. Khonaini is happy to report that: “Global Pipe Company managed to finish the manufacturing activities within 15 months.” “After some issues that we faced in the beginning of the project in June 2016, GPC developed an ambitious action plan to improve output and increase productivity. We have developed a new forming procedure for big diameter pipes for our JCO press, based on a wide shoe, reducing the number of bending strokes. We have also added an additional X-ray bunker to our manufacturing line and, last but not least, we have added some conveyer systems for plates and pipes to improve the manufacturing logistics and remove some bottlenecks in our manufacturing line,” added Mr. Fkaier. After putting all these measures in place, it was possible to increase the output to reach an average of 160 pipes per day. “This is a major improvement compared to the maximum output of 80 pipes per day at the beginning of the project,” added Mr. Khonaini. The last MGS-II pipe left GPC’s manufacturing bench at the end of September 2017. The company is now working on a new job for Saudi Aramco involving Sour-Service pipes in 20” and 24” and wall thickness ranging from 15 mm to 19 mm. The total quantity of about 6000 MT is required for Saudi Aramco pipe store replenishment.

The expansion plan - a new challenge During the last board meeting held in Germany in May 2017, the board of directors approved the investment for a new manufacturing line for GPC’s Mill in Jubail. “The total investment of about SAR 100 MM has been approved for our new manufacturing line. The Board also approved the tight schedule for the erection

Global Pipe Company

and commissioning of this new line that should be ready for production in the third quarter of 2018,” informed Mr. Khonaini. The target of this expansion is to increase to nominal capacity of the plant to reach an impressive 400,000 MT. The new line will also allow GPC more flexibility in the execution of manufacturing orders. “The new line will be implemented as a completely independent line from the existing one. This will allow us to run two different manufacturing orders simultaneously and avoid interruption for orders in case of priority changes,” explained Mr. Fkaier. “Our experience with the Master Gas Project showed us that a higher output is required from the pipe manufacturer to feed the coating yards and then the pipe stringing activity at the project site,” added Mr. Khonaini. Located at the beginning of the supply chain for line pipe projects, GPC wants to be the driving partner for these jobs. Asked about this new investment in these critical times for the worldwide oil and gas business, Mr. Khonaini highlighted: “In our local market, we cannot confirm the general down-trend observed in the international markets. We are dealing with an increasing number of enquiries for new projects for Saudi Aramco for the near future and the long term. The In Kingdom Total Values Added program (IKTVA) initiated by Saudi Aramco is giving us confidence that these new jobs will be awarded mainly to local suppliers. We are still observing significant quantities of pipes awarded to pipe manufacturers outside the Kingdom. For the Master Gas Project Expansion II mentioned previously, for example, about 40 per cent of the pipes required have been sourced from pipe mills outside KSA. With our new expansion and increased capacity, we are targeting the localisation of these quantities,” explained Mr. Khonaini. With this ambitious expansion plan, GPC is also targeting the international market. “Inspired by the Vision 2030 of the government of the Kingdom of Saudi Arabia, GPC is aiming to explore new opportunities in The GCC and MENA area. The proximity to these markets and the high-quality Aramco standards GPC is applying, are making our products attractive to these neighbouring markets. By doubling our nominal capacity to 400,000 MT, we will be in the position of allocating production slots for these markets without neglecting our home market,” added Mr. Khonaini.

Inspired by the Vision 2030 of the government of the Kingdom of Saudi Arabia, GPC is aiming to explore new opportunities in The GCC and MENA area. The proximity to these markets and the high-quality Aramco standards GPC is applying, are making our products attractive to these neighbouring markets Left Mr. Khonaini and Mr. Saad Alikhan, Executive Director of Al-Ruqee Group, the local partner of Haeusler AG in Saudi Arabia

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Smart machine selection for powerful manufacturing lines

Our new investment for the new line is a clear commitment to the localisation policy of the Kingdom of Saudi Arabia

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Doubling the nominal capacity could be easily reached by simply doubling the existing machines. However, since GPC was also targeting to increase productivity and have more flexibility with independent manufacturing lines, a detailed study was undertaken to identify the required equipment. “Based on the pipes sizes involved in orders and the RFQ’s we have received during the whole period of operation, we have created a detailed analysis for the pipe dimensions and material grades involved. The analysis showed that a major share of our market involves big diameter pipes with quite low thicknesses. For this reason, we selected a three-roll-bending machine as the main forming machine for the new line,” explained Mr. Fkaier. “With the JCO press available in our existing line, we have the flexibility to cover the whole size range from 16” to 62”, but with lower productivity for big diameter pipes. The roll-bending machine cannot form small diameter pipes, but has a significantly higher output for big diameters. On the other hand, the detailed study has shown us that our existing line also has some limitations to provide pipes with smaller diameter and heavy thickness. The installed post-bending machine in the existing line is not in the position to make round straight ends for heavy thickness pipes after forming at the JCO press. For this reason, we have considered a pre-bending machine in our expansion plan. This machine will be placed in front of the JCO press and will pre-bend plate ends after edge milling. The new pre-bending machine will serve the existing line with the JCO press to provide smaller diameter pipes with heavy thickness. The existing post-bending machine will be shifted to the new line to serve the new three-roll-bending machine, providing big diameter pipes with lower thickness.” In order to have a completely independent pipe flow in the new manufacturing line and less interaction between the lines, GPC decided to add a new tack-welding machine to close pipes after forming. The new tack-welding machine will have a similar capacity to the one in the existing line with an additional laser tracking feature that allows the welding electrode to follow the seam automatically. The new line will also have its own expander in the final control area. In addition to the stress relief on welded pipes, the expander will give the final shape for GPC’s products, making sure that the final dimensions are within the required range according to the applicable specifications.

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The new expander machine will cover the diameter range between 24” and 56”, and optimise GPC’s output in big diameter pipes. A new hydrotesting machine is also one of the major equipment additions to the new line. The hydrotester will have the extended capacity of 650 bar allowing the hydro-inspection of heavy thickness pipes as per applicable specifications. The new line will also have its own NDT equipment. Two ultrasonic testing machines for internal and final inspection are part of GPC’s investment programme for the new line, as well as an X-ray bunker for pipe end inspection as per applicable specification. GPC will also add several overhead cranes and pipe conveyer systems connecting the new machines to a powerful manufacturing line, simplifying the production logistics. GPC has selected leading European machine suppliers for the equipment for the new line. “One of the main reasons for our investment plan is to maintain the technology leadership in our market,” explained Mr. Khonaini. “Our target is to equip our new manufacturing line with the most advanced technology available on the market, from reliable machine suppliers with lengthy experience in the supply of equipment for pipe mills,” he added. GPC collected offers from several well-known machine suppliers. The final decision was made based on the liability of the supplier and the ability to provide machines meeting the requirements of GPC in terms of size range, good quality of pipes and good output. The contract with the pre-bending machine was signed with the German machine supplier AWS Schaefer GmbH. Schaefer has already provided two similar machines in the past to EEW pipe plants in Germany and Korea. GPC placed the three-roll-bending and tack-welding machines with Haeusler AG in Duggingen, Switzerland. The Swiss-German machine supplier has a vast experience in the supply of these machines, building the forming area in the new manufacturing line. “With about 26 similar roll bending machines, we think that Haeusler is the right supplier for this kind of equipment for our investment,” noted Mr. Fkaier. SMS Group GmbH in Moechengladbach in Germany was selected as the supplier for the expander and the hydrotesting machines. “With the total number of 17 installed expander machines from 2002 and 19 hydrotesters from 1971, SMS Group presented us strong references in pipe mills with similar scope of business.” The UT equipment was placed with GE


PROFILE

Global Pipe Company

One of the main reasons for our investment plan is to maintain the technology leadership in our market

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PROFILE

Global Pipe Company

Sensing & Inspection GmbH in Huerth in Germany. “GE convinced us with the most advanced ultrasonic phased array technology and operator friendly setting of the testing machines, saving valuable time in our daily manufacturing activities,” explained Mr. Fkaier. The local content was also one of the major criteria for machine supplier selection. “All selected suppliers for the machines in our new line have their own branches in the Kingdom of Saudi Arabia. We have insisted that the local units are part of the whole negotiation process and that the contract for installation and erection of the machines are signed with the local unit,” reported Mr. Khonaini. “With this approach, we will support the international machine suppliers to build local subsidiaries in the Kingdom and transfer required know-how. This will also improve our access to aftersales services and spare parts,” he added. After signing contracts for the sourcing of long lead items for the new line, GPC has also awarded the civil work. “We have a tight schedule and we have to get all foundations for the new machines ready before end of the second quarter 2018,” reported Mr. Fkaier. He added further: “The first foundation for the prebending machine is already under execution. We have to be very careful during the construction of the new foundations. The manufacturing activity in our existing line shall not be disturbed. A detailed and accurate planning approach is required.”

Top Left Mr. Johannes Heinlein and Dr. Frank Kaiser from SMS Meer signing the contract for machines with Mr. Khonaini Bottom Left Mr. Joerg Haeusler signing the contract with Mr. Khonaini

New major pipeline job GPC has recently received a new major pipeline project from Saudi Aramco. The Arabian Heavy Oil Corridor project has been awarded to the mill in Jubail. The scope of supply contains three items of pipes with the diameter of 48” and wall thickness ranging from 15 mm to 22 mm. The total length in 165 km including about 80,000 MT of X65 steel material. The delivery of pipes is scheduled between mid-December 2017 and March/April 2018.

Above Mr. Ahmed Hamad Al-Khonaini, Shareholder and Managing Director, Global Pipe Company

Conclusion “The new line will help us not only to double our capacity, but also to streamline our manufacturing activities and produce each required pipe size on the suitable equipment. The new line will also allow us to close some gaps in our capacity matrix. This will help us to explore more opportunities in our home market and on the international market,” highlighted Mr. Fkaier. “Our new investment for the new line is a clear commitment to the localisation policy of the Kingdom of Saudi Arabia,” concluded Mr. Khonaini.

Above Mr. Maher Fkaier, General Manager, Global Pipe Company

Global Pipe Company www.globalpipe.com.sa Services: Manufactures pipes for the oil and gas, water and construction sectors

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Blasting off to the

future Now in its second year of operations,

Below John Kay, General Manager, RedGuard Specialist Services

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RedGuard Specialist Services is a relatively new company, but one that was created out of a joint venture between two of the industry’s leading names, RedGuard and Specialist Services. Based in Dubai, the newly formed business specialises in the design, engineering and manufacturing of blast-resistant and ballistic-resistant modular buildings. Offering proven, highly certified and field tested blast-resistant buildings, American company RedGuard is the world’s leading player in the field of blast buildings. Specialist Services, meanwhile, has over 35 years of experience and expertise in the upstream, mid-stream and downstream modular buildings market. Placed together, the joint venture company has the resources at its disposal to provide first class, safe, customisable and scalable products to customers in the Middle East, Europe, Asia Pacific and Africa, in addition to RedGuard’s operations in North and South America. “From

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our 350,000 square feet of manufacturing space here in Dubai we have successfully brought together the specialist manufacturing capabilities of Specialist Services and the design qualities of RedGuard under one roof,” explains RedGuard Specialist Services General Manager, John Kay. In areas where there is a risk of accidental explosions, customers require modular buildings of the highest quality to rely on for protecting their people, equipment and critical operations. RedGuard Specialist Services meets these needs through three different service offerings, as well as dedicated aftersales staff, who form part of its ServiceTeam, and are based in facilities in Dubai, Jubail, Aberdeen and Singapore, in addition to RedGuard teams in Houston and Wichita. The company’s LeaseFleet is made up of a rental fleet of blast-resistant modular buildings ready for immediate deployment, while its SafetySuite offers a premier line of customised buildings that are purpose built to meet all requirements, from control rooms to administration facilities.


PROFILE

Thirdly, CoverSix Shelters are the ultimate solution in keeping personnel, equipment and electronics safe and secure, providing government, military and industrial security customers with a range of different security structures.

RedGuard Specialist Services

RedGuard Specialist Services’ LeaseFleet standard range of blast-resistant modules available for sale and hire include modules of various sizes that serve numerous purposes, from refuge shelters and bunkers to engineering modules, laboratories, workshops and more. In addition to its rental services, countless customers around the world have benefitted from the company’s ability to build customised blast-resistant modular buildings that can be purchased and used for the entire life of their desired use. Only RedGuard Specialist Services is able to combine all the engineering behind the industry’s best blast-resistant modules with the virtually unlimited amenities of a traditional brick and mortar office building, such as offices, conference rooms, control rooms, kitchen and dining areas, locker rooms, utility rooms and restrooms. From flooring and wall coverings, to custom cabinetry and restrooms, the company puts the power in its customer’s hands, with the only areas off limits being its unparalleled standards of strength and safety. “All of the units and buildings we construct are certified to the highest of standards when it comes to blast-resistance,” John enthuses. “Anybody can build a box or a unit and say that it’s going to deliver certain things, but what we have is an unrivalled depth of engineering capability to build structures that we know meet and exceed all of the industry various standards. This provides our customers with an added layer of confidence and ensures that we can move quickly with new, approved projects.”

RedGuard Specialist Services’ LeaseFleet standard range of blast-resistant modules available for sale and hire include modules of various sizes that serve numerous purposes, from refuge shelters and bunkers to engineering modules, laboratories, workshops and more

RedGuard Specialist Services redguard.specserve.com/ Products: Blast-resistant and ballisticresistant modular buildings

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The future is in

hand

Founded in 2004, it has taken AXTech less than 15 years to become established as a specialist engineering and service company with a forte for heavy-duty lifting and material handling in the capacity range of 25 to 1000 tonnes, and above. With its main office based in Molde, close to Norway’s large oil and gas fields, and a subsidiary company located in Gdynia, Poland called AXTech Polska, AXTech has forged its reputation through the design, development, delivery, testing, commissioning and servicing of heavy lifting, and material handling equipment for use in harsh and corrosive marine environments. “Historically, most of our work has been connected to the offshore oil and gas market, but in recent years we have diversified in order to become heavily involved with a range of subsea activities, including subsea mining, the mooring and installation of wind mill systems, and the lifting and handling of other subsea infrastructures,” explains AXTech Managing Director, Richard Myhre. “Operating worldwide, we have evolved from having a primary focus on delivering engineering solutions to become

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a company that today draws equal levels of business from the design and development of operational equipment, and from the providing of associated system solutions and services.” This evolution has allowed AXTech to establish relationships with a diverse mix of customers. This mix includes companies such as TechnipFMC, Subsea 7 and DeepOcean, which specialise in the installation and integrity of seabed infrastructure, FPSO operators including SBM, Modec, Bluewater, Teekay and BWO, and ship owners such as Maersk and Solstad. Operating in a very direct manner, the mindset of the business is to complete its projects at optimum costs. AXTech is known for its ability to adjust quickly to its customers’ needs and for its expertise when it comes to engineering radical solutions to complex challenges. It is this expertise that has seen AXTech contracted for work on projects such as that involving TechnipFMC and Statoil’s offshore installation and IMR vessel, North Sea Giant. “Collaborating with the aforementioned customers, it was our job to supply all of the lifting equipment required for module


PROFILE

handling,” states Kjell Ødegård, AXTech’s Director of Marketing, Sales and Services. “Two of the towers onboard the vessel are engineered solutions created by AXTech, the Special Handling System (SHS) and the Modular Handling System (MHS). The former is a revolutionary new concept for the launch and recovery of heavy subsea modules under extreme environmental conditions, able to handle up to 420 tonnes. Both the SHS and MHS are excellent examples of the type of work we do, creating specialised solutions that typically require either a significant amount of power or precise load handling qualities.” In June 2017, AXTech was incredibly proud to have its work recognised once again when it was announced as the winner of Statoil’s ‘Heavy maintenance of offshore wind turbines’ innovation contest. The brief of this contest was to devise a solution for replacing and/or repairing large components, weighing up to 150 tonnes, used in the construction of offshore wind turbines, but one that would not depend upon the use of jack-up vessels or large floating crane vessels. AXTech’s response was to devise an idea it has dubbed ‘Wind-worker’. “In essence, what Statoil was asking for was something like an aerial hook system that will allow for the handling of heavy objects at height, all while still moving in the open ocean,” Richard says. “Taking into account our own previous experience of similar undertakings, we began working hard to devise a working method for securely handling heavy loads at a height that no normal vessel or crane can achieve. Our idea involved splitting the package into separate modules, which meant we could simultaneously look at incorporating a compensated platform into the lifting and handling process, a patented methodology to significantly reduce the roll and pitch of a vessel at sea that we control through a third-party company that we control, MRPC, and the actual lifting structure itself. We were honoured to be have received the award from Statoil, who described the Wind-worker concept as being very ‘appealing’, and the company have shown a genuine interest in taking this forward and seeing it through into a fully realised innovation at full scale.” A further display of AXTech’s radical approach can be found in the way that it is developing live systems to remotely monitor and operate subsea modular handling projects. “Through the use of various technologies, we strive to be at the cutting edge of digital and cloud based systems,”

AXTech

Kjell adds. “The beauty of these systems means that we can provide a customer with a solution that they potentially do not even have to operate themselves in that we can install it, operate it remotely and then remove it upon completion. Said systems also significantly lower the threshold of who can actually act as a provider of these services. For example, even a ship owner with no real subsea experience can offer their vessel to a project where we will handle all the subsea handling procedures from our own facilities. This is quite the dynamic shift in terms of a business model, but it is one that we foresee strong growth from so long as businesses embrace it as the viable, fruitful alternative that it is.”

With 2016 being a prosperous year financially for AXTech, 2017 is being characterised as a year of development and planning for what the company hopes to be an exciting future

With 2016 being a prosperous year financially for AXTech, 2017 is being characterised as a year of development and planning for what the company hopes to be an exciting future. “From what was once purely an equipment supplier, AXTech is now firmly entrenched as a service provider related to specially engineered equipment,” Richard concludes. “We still firmly believe in the offshore market, but at the same time we recognise that it has undergone recent radical change itself. We expect it to become increasingly influenced by disruptive technologies and that will mean that those companies that thrive will be the ones that welcome change and the challenge of doing things differently. By continuing to do what we do best, proactively offering our customers technology that lowers risk and increases returns, we hope to be a conduit for this change providing solutions that benefit all.”

AXTech AS axtech.no Products: Heavy-duty lifting and material handling equipment and solutions

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PROFILE

The Hub Power Company

up

Powered The roots of

Below Khalid Mansoor, CEO of the Hub Power Company Limited

the Hub Power Company (HUBCO) were formed in the mid-1980s, when there wasn’t a single independent power producer (IPP) in Pakistan. Aided by the World Bank, the Government of Pakistan developed a long-term strategy, which envisaged the involvement of private investors in power generation, with the objective of meeting the increasing demand for power in the country. In 1991, HUBCO was incorporated as a limited liability company in Pakistan and several agreements were signed with the aim of generating long-term finance without direct guarantees from the government. In addition to support from the World Bank and other governmental sources such as the governments of France, Italy and Japan to name a few, the World Bank and the import/export Bank of Japan also jointly developed an expanded co-financing operations programme to assist the international commercial debt funding through the provision of a partial guarantee. A significant amount of the offshore debt was also guaranteed by many export credit agencies, while Rupee debt was provided by a group of local banks led by the National Development Finance Corporation of Pakistan. “The investment in this project is still the biggest private sector investment in the history of Pakistan,” says Khalid Mansoor, CEO of the Hub Power Company Limited. In 1994, the National Power International

Holdings BV and Xenel cumulatively owned a 34.9 per cent stake in the company and by 1997 the first IPP in Pakistan was up and running. “Three years on, in 1997, the first plant had a total capacity of 1292 MW and was created with state-of-the-art equipment that was supplied by Japanese and Italian OEMS. The company was subsequently listed on the Pakistan Stock Exchange.” The Hub plant is the most efficient steam turbine plant in the country and one of the largest private power projects. The plant consists of four generating units, each rated at 323 MW gross output, with a residual oil-fired single re-heat boiler and tandem compound, twocylinder condensing steam turbines directly coupled to a hydrogen cooled generator. The net available output from this plant is exported to WAPDA’s national grid via the power station’s 500 kv switchyard. The company decided to develop a second power plant in Narowal, Punjab, with a net capacity of 214 MW in 2006-07 keeping in view the increasing demand of electricity in the country. Spread over 62 acres of land and located 150 km north east of Lahore, the Narowal power plant was constructed in 2010. Comprised of 11 generating sets based on the MAN 18V48/60 engines, 11 Alborg heat recovery steam generators and one cooled condensing steam turbine from Dresser Rand, the Narowal plant has a capacity of 213.82 MW Nett, and an average efficiency of 45 per cent in combined cycle mode. ENERGY,oil&gas

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PROFILE

The Hub Power Company

With a combined power generation capacity of more than 1600 MW, HUBCO is the largest IPP in Pakistan and the provider of ten per cent of the country’s energy demand

To further pursue its goal of being the biggest power supplier of Pakistan, HUBCO made the strategic decision to set up the first ever hydel IPP in Pakistan, Laraib Energy, in 2013. A run-of-the-river based power project, the environmentally friendly plant is located on Jhelum River, 7.5 km downstream of the Mangla Dam, a major multi-purpose water storage project that was commissioned in 1967. Laraib Energy uses the water discharged from the Mangla Dam and is registered as a Clean Development Mechanism (CDM) project by CDM Executive Board under the United Nations Framework Convention on Climate Change. With a combined power generation capacity of more than 1600 MW, HUBCO is the largest IPP in Pakistan and generates around ten per cent of the country’s electricity. However, it is not a company to rest on its laurels and has instead sought out many projects that are complementary to its portfolio. HUBCO is a strategic shareholder in Sindh Engro Coal Mining Company Ltd which is developing the first ever coal mine at Thar in Sindh Province. Thar has the seventh largest reserves of coal in the world and has not been tapped so far. The utilisation of Thar coal reserves will play a huge role in providing Pakistan with energy security in the future. The mine is expected to begin commercial production by mid 2019 and will supply coal to mine mouth power generation projects also being established at the Site including a 330 MW project being developed by HUBCO. HUBCO has created an SPV named Thar Energy Limited (TEL) to undertake this project. Fauji Fertilizer Company and China Machinery and Engineering Corporation are other shareholders in TEL. TEL has started construction of the

plant and is expected to achieve commercial production by 2H 2020. HUBCO has also established China Power Hub Generation Company (CPHGC) in a joint venture with the China Power International Holding, Ltd which is constructing a 1320 MW imported Coal Project along with a dedicated jetty in Hub, Balochistan. The project is expected to start commercial operation in 3Q 2019. One of the newest developments for HUBCO is the establishment of Hub Power Services Ltd (HPSL), which has been set up to manage O&M of its existing power assets and to also explore further opportunities onshore and offshore. HUBCO’s growth initiatives will help erase electricity shortfall in the country by providing reliable year round electricity supply at competitive price which will help kickstart the economy suffering due to energy shortfall. All HUBCO’s new projects will be fully compliant with World Bank environmental standards for coal based power projects due to state-of the art environmental protection equipment being added at a huge capital cost. HUBCO will remain focused on helping Pakistan to become self-sufficient in power generation. “If the economy is going to continue to improve then demand is going to get higher too. Our country will keep needing more power as whatever power we are producing either now or in the future will barely bridge the gap between supply and demand. We need to keep adding capacity year-by-year to ensure the country never faces this type of energy crisis; this is our strategy going forward. If we can help the country to supply an affordable and dependable power that will support and maintain economic stability, this is the biggest contribution a company can make,” Khalid concludes.

The Hub Power Company hubpower.com Services: Largest independent power producer in Pakistan

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Putting on the

pressure “

GEODATA GEODATA has built up in-depth know-how in the industrial and construction surveying fields over many years, and provides flexible and graded service packages. With its complex production processes, the accurate acquisition of geometrical and spatial information describing plants, machines, components and products is becoming increasingly important, particularly in the oil and gas industry. To ensure that this data is available promptly, and in a form that is both precise and meaningful, and also has the required depth, GEODATA employs state-of-the-art equipment and outstanding expertise. As a result, valuable installation time and costintensive reworking and fitting can be avoided.

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As soon as the market is ready we will be able to react accordingly and in this sense, we look forward to returning to a successful level of growth in the longer term.” Those were the words of BHDT’s Head of Oil and Energy, Manuel Prohaska when he spoke to Energy, Oil & Gas in March 2016. In the time since, this Austrian supplier and manufacturer of high pressure equipment and components for the chemical and petrochemical industry has indeed taken a number of important steps to counteract the prolonged slowdown in its traditional oil and gas segment. “Over the last 18 months we have continued with the development of our various operations, primarily through the introduction of new products and associated services,” Manuel begins. “Some of this work dates back to the summer of 2015 and has resulted in the development of a range of next generation items including high pressure ball and gate valves, mainly for use on subsea production units, and a full range of compact connector products, such as compact flanges and plant connectors. Having built several successful prototypes, we reached a significant milestone in July 2017 when the aforementioned ball and gate valves passed an API Monogram audit. With the API licenses in the meantime received, efforts now shift to securing orders for these subsea valves. Indeed the first order was already secured only one week after receipt of the aforementioned API monogram licenses.

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In terms of its compact connectors and flanges, the company has added to its preexisting range to create a full family of these products up to extremely high pressures of up to 20,000 PSI, thus opening up several new markets for BHDT. Said markets include those specialising in niche petrochemical applications. “As recently as several years ago it would have been fair to say that growth in the petrochemicals industry was not high up on the radar,” Manuel explains. “However, it has been our move into this field that has helped secure contracts such as one valued at more than one million euros to supply a facility in Trinidad with more than 1000 special flanges, as well as multiple orders to supply compact flanges for use in high pressure and temperature environments for power contractor General Electric (GE) Power.” Turning back to the oil and gas market, Manuel reflects back on a time as recent as six months ago when the standard response from potential customers regarding new projects was that they were undergoing a period of ‘restructuring’. Fast forward to today though and it would appear that for most, the time for consolidation is coming to an end with engineers and key decision makers appearing more frequently as events and conferences, and expressing an interest in new technologies. “As a result of the downturn in the price of oil, BHDT chose to reshape its own strategy somewhat,” Manuel states. “One of the most important decisions we made was to refocus our efforts onto those core markets where high quality products remain appreciated and in demand, for instance in and around the North


PROFILE

Sea. As part of this process we have recently appointed a new business development director who will be focusing on generating business across the region as he travels extensively to various events and conferences. This is just one of a number of strategic moves being made that we believe will open more doors to new business.” Work within the company continues apace, with further new products being prototyped and primed for release in the months to come. These include a range of new flange, connector and valve solutions that are marketed under the BHDT BestLoc® brand, the latter of which has seen a recent uptake in orders. “Meanwhile, from a supply chain perspective,” Manuel adds, “we have made strong efforts to look beyond just our local market, examining other streams of interest and potential partners in growing regions such as Eastern Europe, India and potentially China as well. We have recently opened a new subsidiary office in Shanghai for this very reason and we are confident that such

moves will help make BHDT more commercially attractive as it looks to win new projects.” Despite its efforts to become a more internationally active business, Manuel is keen to note that BHDT has no plans to relocate its core fabrication and manufacturing capabilities outside of Europe. “We will always fabricate our critical products and components in our home market of Austria. While we will always be ready and able to follow business opportunities wherever they may be, one thing that will never change is our desire for BHDT to remain best known for commitment to quality, our technical expertise and our unrivalled engineering capabilities.”

BHDT

BHDT GmbH bhdt.at Products: High pressure equipment and components

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SUPPORTING THE RENEWABLE ENERGY SUPPLY CHAIN

Our storage terminal business is well positioned to play its part in meeting the growing demand for eco-friendly renewable energy, says Martyn Lyons, Chief Executive of Inter Terminals Circular economy With a comprehensive range of storage solutions, added value services and ongoing investment in skills and infrastructure, Inter Terminals are fully committed to supporting the renewable energy industry and the circular economy in which end-of-life resources are transformed into products that can power our homes and industry. As an important part of this commitment, we ensure that operations across our European storage network are managed safely and in a way that both protects and respects our neighbours and the wider environment. By working in partnership with customers, regulators and other stakeholders, we believe the modern bulk liquid storage industry can play a pivotal role in creating a greener future for our planet.

Biofuels blending expertise Inter Terminals have developed long term partnership solutions with the biofuels industry that have, and continue to require, responsive, bespoke engineering and storage solutions to support the continued development of the production, raw material and finished product supply chains of liquid renewable energy sources. To support this sector we have developed a wealth of experience in the storage, blending and redelivery of ‘green’ fuels, as well as

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advanced techniques for blending biofuels with conventional hydrocarbons, both in-tank and in-line during road tanker loading. The latter provides a highly efficient and fully automated process for our customers. When a tanker driver requests bio-gasoline at the loading gantry, a signal is sent to the automated micro-blender on the selected loading arm to initiate the gasoline / bio-ethanol blending process at the preset ratio. An in-blend metering system ensures that the final blend is correct at the point of delivery into the tanker. This advanced type of blending operation is managed and monitored by our Terminal Automation and Stock Control System (TASCS). This internally developed and bespoke automation package communicates the preset blend ratio to the relevant micro-blender at the load rack. After loading, TASCS calculates any excise duty per component that may be liable, provides updated stock calculations and allows customers to access near real time reporting via a web based access system.

Storage solutions The convenient and cost effective storage of raw materials used in the production of biofuels is fundamental to our service provision to the sustainable energy sector. Feedstocks, such as used cooking oil (UCO) and tallow, can be received into


PROFILE

inter terminals

our terminals by road tanker or by sea and stored in heated tanks ready for redelivery to biofuel manufacturing plants which produce FAME (Fatty Acid Methyl Esters) – the chemical term for biodiesel produced by the esterification of UCO and tallow. We also have the capability to store FAME under the required excise duty suspension arrangements, ensuring compliant handling and control of stocks for our customers.

Alternative fuels In addition to biofuels, Inter Terminals also offer facilities with the capacity and approvals in place to store a range of recovered organic and solvent wastes, including oils, glycols and solvent based inks and paints. These materials are used by specialist recycling companies to create an alternative recycled fuel that can be used in industrial processes. All hazardous bulk liquid wastes are stored and managed for our customers under strict stock management systems and reporting regimes, with the appropriate licenses and permissions as required by legislation.

Upcycling waste

Inter Terminals

Our waste storage capability also attracts interest from the waste oil recycling markets. Waste lubricating oil collected from various recycled sources can be received for bulk up at our terminals, prior to being exported to European refineries for upcycling into high quality oils and lubricants.

InterTerminals.com Services: One of the largest independent bulk liquid storage providers in northern Europe

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Generation

change

With a change in leadership taking place at the start of 2017, leading manufacturer of electric power supply systems, Frerk Aggregatebau GmbH is preparing for future growth in new markets. Founded in 1964, Frerk Aggregatebau GmbH has more than 50 years of industry experience, gaining a leading reputation in manufacturing electric power supply systems across a broad range of applications. Within this business segment, Frerk proposes complete power supply systems, starting with an in-depth customer understanding, including an analysis of environmental conditions up to the projectplanning, erection and commissioning within building installations or inside containerised modular solutions. While Frerk’s engineering team uses state-of-the-art CAD tools to develop the solutions, the project management team coordinates the project execution phase with the customer and internally from material procurement to manufacturing and on-site installation. Frerk’s highly qualified service team accompanies the product and the customer during the warranty period, and for the entire life of the delivered system. With a wide product portfolio, Frerk offers black-start diesel systems for starting up gas turbine power stations, combined cycle power

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stations with modular CHP packages for districtheating, standby power and UPS solutions for datacentres, temporary plug and play containerised solutions for the rental market, and offshore equipment for oil field applications. Operating at its current location since 1978, the company has significantly increased its capacity, a trend that began with the construction of a new production facility as well as eight state-of-the-art test bays. With this increase in capacity completed in 2001, the company went onto develop an additional production base in 2005 with the aim of expanding the plant’s total production area to 11,000 square metres. Three


PROFILE

years on, Frerk expanded to 25,000 metres and, most recently, installed a new 1500 square metre storage building and additional office space. A 2100 square metre production bay for the reconditioning of used generator sets was also erected. Since previously featuring within Energy, Oil & Gas in January 2016, Frerk has undergone a change in leadership and is pushing forward with new plans to remain competitive in the face of evolving markets. “With Mark Hiller and myself appointed as new directors of Frerk Aggregatebau, we are leading important changes that will enable us to steer the company in direction of future growth,” says Benedikt Buxtorf, Director at Frerk Aggregatebau GmbH. “It is all about preparing the company for future challenges and opportunities, for which we are leading developments internally and towards new markets. Our efforts are concentrated on human resources and getting the right people on board to follow our growth plans. As we move toward increased system integration and complexity by entering new application areas, we are looking to develop our expertise internally, but also externally. ” Indeed, having established itself as a market leader in innovative design solutions through the development of bespoke power generating systems within the energy, and oil and gas markets, the company is seeking to gain a foothold in similar markets that will further boost its presence and result in a stronger, more diverse customer base. “The oil and gas market is currently slightly depressed due to a lack of investment in the recent years,” Benedikt says, “however we expect a lift in this sector in the very near future.

Frerk Aggregatebau

“Another area we will be focusing on is penetration into new markets, and not only in our traditional business of power generation. In this respect, there are several markets that are of interest to us; one market being the hybrid market. Going forward, and despite the fact that diesel combustion is an energy that will continue to exist, we expect it to reduce in importance, which is why we need to be on board with alternative energy solutions. These markets will require from us further integration and inevitably raise the complexity of our packages.” Lastly, and in seeking to boost its operational excellence, Frerk will be focused on increasing effectiveness internally over the short-term, whether in production, its project management or engineering processes. “Operational excellence is another goal that we will strive to become a leader in within our industry.” Benedikt concludes.

Frerk Aggregatebau GmbH frerk-aggregatebau.com Services: Power generating systems

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PROFILE

Chart Ferox

Small in scale, big in

potential

The last 12 months

REGO REGO is recognised as the premier manufacturer of gas flow and control products worldwide for the LPG gas industries. With over 100 years of experience, REGO supports these industries with reliable products, innovative technologies, technical expertise, and world-class customer support. All product lines are manufactured in the United States and include well-respected brands such as RegO®, Goddard, Macro Technologies and Superior Products.

has been a good period for Chart Ferox (Chart). In that time, this recognised global specialist in the design and manufacture of highly engineered cryogenic equipment that is used in the liquid gas supply chain, has experienced strong sales growth. While all of its product lines have seen growth in line with its projections, it has been the company’s LNG projects that have excelled. For its part, Chart is the world’s leading singlesource LNG equipment and solutions provider across the complete LNG value chain, from liquefaction and distribution, to storage and enduse fuelling. It is what the company describes as ‘small-scale’ LNG terminals that have been the biggest drivers of growth. One prominent example of this work can be found at the port of Klaipeda, Lithuania. It is here that Klaipedos Nafta is in charge of the development of the Lithuanian LNG terminal project, creating a small-scale LNG infrastructure and establishing the port as an LNG hub for the Baltic countries and north-eastern Poland. “Chart is partnering with the German company PPS Pipeline Systems to deliver this exciting complete turnkey project,” explains Chart’s European President, Hans Lonsain. “Our involvement in this project sees us providing most of the key equipment and technology, including the preparation and delivery of the cryogenic section, comprising storage tanks, two

truck loading bays, marine bunkering jetty and the regasification plant.” Both Chart and PPS Pipeline Systems were recently on hand in late September 2017 when the terminal experienced the successful offloading of its first LNG product and the filling of two of the five Chart engineered and built ‘Decinske Giant’ cryogenic storage tanks with LNG. “This represents a significant milestone for the timely finalisation of this project,” Hans continues. “The delivery of LNG to Klaipedos Nafta was only made possible as a result of the unloading infrastructure and associated safety equipment being installed on time, and this event sends out a strong signal to the market that small-scale LNG distribution from the terminal is a reality.” Another area in which Chart has been making great progress is the delivery of LNG/ LCNG fuelling stations for vehicles. In addition to the successful delivery of its seventh station to Shell in the Netherlands, the company has just recently announced the opening of its latest station in Ennshafen, Austria, by major European gas storage operator RAG, in cooperation with Iveco Austria. Like previous European stations, Chart engineered and manufactured the complete CE marked package which incorporates the Dynaflow 3000 LNG dispenser, remote monitoring and control systems, and other technical features ENERGY,oil&gas

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PROFILE

Chart Ferox

for optimum safety, reliability, convenience and zero emissions to atmosphere. Furthermore, this latest skidded design facilitated full assembly and pre-testing in Chart’s workshop to significantly reduce on-site installation time and cost. “Our specifically designed skidded stations meet the industry’s demand for low cost solutions and short delivery times,” Hans states. “Upon receiving a customer’s order, we have the ability to begin building said stations immediately, and their design is such that installation and commissioning time is kept to a minimum, further reducing the cost for the customer. Nevertheless, it is important to point out that every skidded station we build includes all of the safety features present in our larger stations and can be equipped with all approved metering systems.” In addition to the number of projects the company has completed in the past few months, September 2017 also saw the finalization of Chart’s acquisition of VCT Vogel, a trusted German business, servicing cryogenic and other mobile gas tank equipment and trucks, and a European leader in truck mounted drive and control systems for the operation of cryogenic pumps on trailers, rigid trucks and containers. The acquisition expands and strengthens Chart’s service and aftermarket presence in Southern Germany, Austria and Switzerland, and adds highly complementary truck drive systems to Chart’s mobile equipment offering.

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Hans, commenting at the time said; “VCT Vogel GmbH (VCT) is a market leading company for cryogenic services in Germany, Austria and Switzerland with a proven competence to fulfill customer needs on short notice while maintaining a high-quality standard. It has an excellent reputation for outstanding technical capabilities throughout the markets it serves. In addition to its service offering, VCT manufactures state-of-the-art systems that are needed to drive and control cryogenic pump units. We are impressed by the long-term customer relationships VCT has built based on its technical competence, problem-solving capabilities and hands-on, extremely professional approach. Both VCT’s services and its product range are a great complement to Chart’s existing European offering. In the future, VCT will become a regional service provider for Chart Ferox, Gofa and Flow Instruments products. We are very excited to welcome the VCT employees to Chart.” With the industrial gas market also growing steadily in line with European GDP growth, Hans foresees a healthy continued interest in LNG ship fuelling systems and bunkering facilities. “Our own aim is to remain the supplier of choice for all of our customers by continuing to deliver high quality engineered products. We want to grow significantly and we will carry on developing new products and expanding into new markets in order to achieve this.”

Our own aim is to remain the supplier of choice for all of our customers by continuing to deliver high quality engineered products

Chart Ferox a.s. www.chartindustries.com Products: Cryogenic storage and distribution infrastructure


PROFILE

TGE Marine Gas Engineering

Field of

opportunity

TGE

Below Bjorn Munko, General Manager, TGE Marine Gas Engineering GmbH

Marine Gas Engineering GmbH was founded in 1980 in Bonn, western Germany, under the name Liquid Gas International Ingenieurgellschaft GmbH (LGI) by Mr Horst Schierack and Mr Vladimir Puklavec. Starting as an engineering company for the design and supply of gas handling systems for gas carriers that were primarily delivered to small shipyards in northern Germany and Holland, the company grew over the years and underwent a number of corporate developments that have resulted in TGE Marine being acquired by Mitsui Engineering & Shipbuilding Co., Ltd. in 2015. Discussing these developments is Bjorn Munko, General Manager at TGE Marine Gas Engineering GmbH: “We were owned by GDF Suez until 2006 when the organisation decided not to support the EPC business that we were involved in. The onshore aspect of the business was largely taken over by CIMC, with Caledonia Investment in London becoming the main shareholder of the offshore/gas carrier division; TGE Gas Engineering GmbH was then split into two firms, which is how TGE Marine emerged from the original company. In 2015, Caledonia made the decision to sell its shares, with Mitsui Engineering & Shipbuilding Co., Ltd. acquiring 99.4 per cent in September 2015; the shares were then increased to 100 per cent, so we are now wholly owned by MES. “The main benefit of this acquisition for us is that we have better access to the difficult to penetrate Japanese market, while MES gains significant synergies in the ship building market as well as with regards to the equipment it has, such as engines and high-pressure pumps and compressors that we can include in our fuel gas supply system.”

TGE Marine was acquired by MES due to the demand for small-to-medium sized carriers for LNG, ethane and ethylene gas as well as LPG, which is anticipated to increase. As such, MES is active in the development and sale of mediumsized multi-gas carriers and has been involved in the production and sale of electronicallycontrolled dual fuel gas injection diesel engines (ME-GI) in addition to high-pressure pumps and compressors for fuel gas supply systems that use natural gas as fuel. With both companies boasting technology, engineering and manufacturing expertise as well as enviable customer bases, MES and TGE Marine alike are set to gain an increasingly stronger foothold in their chosen markets. Furthermore, TGE Marine was an attractive choice due to its long-term experience as a pioneer in the dynamic field of LNG fuel gas systems, LNG bunkering and LNG floating units as well as its reputation as a market-leading provider of engineering services for the design and supply of gas carriers, fuel gas systems and offshore units. Able to deliver turnkey solutions for engineering, design, procurement and construction supervision (EPCS) of marine gas handling and storage systems alongside vessel designs, the company specialises in the containment and handling of cryogenically stored gases and is at the forefront in the ethylene carrier and small LNG carrier segment. Bjorn explains the company’s process of delivering high quality gas handling and storage systems to customers across the globe: “Our head office in Bonn has a staff of approximately 100 people, the majority made up of engineers and specialists of cryogenic gas systems for the marine industry; we also have a subsidiary office ENERGY,oil&gas

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in Shanghai where support, marketing and sales activities take place, however this part of the business is also involved in a lot of local quality management with our local manufacturers as we have our tank manufacturing operations with a sub-contractor in China. We also have some manufacturing activities involving pressure vessels and heat exchangers in China too. Our projects tend to be developed with local agencies or local offices and we then develop the product together with the ship owners or shipyards; when it comes to the execution of the supply contract the complete engineering is undertaken here in Bonn. “All the equipment required for the plants is purchased as each plant is a tailor-made solution; we then deliver this equipment as a complete package to the shipyard and are responsible for the construction and commissioning supervision with our local site supervisors. We basically help the yard to put everything together in the right order and support the commissioning and start up to ensure the plant works as intended.” Notable projects for the company involve the

TGE Marine Gas Engineering

arrival of three bunker vessels arriving in Europe in 2017, as Bjorn comments: “We are proud to have played a part in these projects by delivering the complete equipment necessary to handle the LNG on board all three bunker vessels, including the fuel gas system and type-C storage tanks. This is a development that we believe will trigger further progress and growth in the LNG fuel gas market as there is a lot more LNG fuel available than there was five years ago.” With MES’ acquisition complete, TGE Marine is set to continue with its strategy of providing technical excellence at a highly competitive price, and capturing new opportunities in LNG, fuel gas systems and floating storages; the latter ambition follows a substantial level of R&D investment so the company can evolve its core products further in order to address new markets and utilise new technologies. “The goal for us is to increase our market share in the LNG fuel gas market and to participate in the market development that we expect for the small to mid-scale LNG sector,” Bjorn concludes.

Cryonorm Since its inception in 1968, Cryonorm has been a major European supplier of cryogenic vaporisers. Next to customer designed units like steam heated, water heated or gas fired vaporisers, Cryonorm offers a standard range of ambient air heated vaporisers, both natural and forced draft. Originating from within the industrial air gases industry, offering vaporisers for liquid nitrogen and oxygen, Cryonorm sees strong, growing demand for the regasification of liquefied natural gas (LNG), for which it also offers a full range of regasification solutions.

TGE Marine Gas Engineering GmbH tge-marine.com Services: Engineering, procurement and construction supervision solution provider

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59


No wasted

effort Beginning life in 1968

as a shipyard based at the Keppel Harbour in Tanjong Pagar, nearly 50 years later Keppel Corporation is now a Singaporean conglomerate with a global footprint in more than 20 countries. With employees numbering in excess of 30,000, Keppel Corporation is a multibusiness entity providing a multitude of robust solutions for numerous industries, including energy, oil and gas. A member of the Keppel Infrastructure group, Keppel Seghers is the environmental technology arm of the corporation. A leading player in environmental technology and services, it offers a broad portfolio of comprehensive solutions and a scope of activities that include consultancy, design, engineering, technology development, construction, operations and maintenance of plants and facilities, and investment in large environmental projects. The company’s advanced technology solutions have been devised to address a wide variety of issues in wastewater and solid waste. For more than 30 years, Keppel Seghers has been striving towards sustainable water technology solutions and is today recognised as a global leader in the design, engineering and construction of advanced systems for drinking water and wastewater treatment. Sustained investment has resulted in the company being able to build up significant expertise in the

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operation and maintenance of waste water treatment, water reuse and desalination plants. During a similar time period, the company has also carved out a reputation as being a leading specialist in the thermal treatment of residual waste to recover energy through wasteto-energy (WTE) technology. WTE is considered to be the most environmentally friendly method of processing residual waste, as it reduces land occupation and provides a meaningful outcome for waste. Energy from the combustion of non-recyclable waste has been shown to generate valuable and sustainable electricity and heat, of which 50 per cent is recognised as being renewable, while the other 50 per cent is derived from recovered energy sources that would otherwise be lost. As well as forming an essential part of a sustainable waste management chain, WTE has proven to be a net reducer of greenhouse gas emissions, and to be an effective way of conserving fossil fuels and diverting significant residual waste from landfill. Keppel Seghers’ strong track record of delivering successfully completed projects in Europe, North and South America, Asia Pacific, Africa and the Middle East, means it is well-positioned to meet the challenges of protecting the environment and enriching the lives of communities in a cleaner world. By leveraging accumulated experience in designing, developing, innovating and delivering


PROFILE

individual process sectors and turnkey plants, the company’s patented technologies have been successfully implemented in more than 100 state-of-the-art facilities around the world. One of the top destinations for waste is China, which has historically imported many millions of tonnes of discarded plastic, waste paper and steel scrap per annum, and Keppel Seghers is the leading provider of imported WTE technology solutions in the country. In September 2016, the company secured a contract to provide technology and services to the Baoan WTE facility in Shenzhen, Guangdong Province. The terms of the contract will see Keppel Seghers supplying technology solutions and associated services to what is the world’s largest WTE facility. The contract, awarded by repeat customer Shenzhen Energy Environment Engineering Co. Ltd, is for the expansion of the existing plant through the provision of equipment design and technical services for the plant’s furnace and boiler components. Collaboration between the two parties began in 1999, and to date Shenzhen Energy Environment Engineering has awarded a total of 18 WTE line projects to Keppel Seghers. The contract for the Baoan WTE facility project has helped to further reinforce the company’s position as the market leader among imported WTE technology solutions providers in China. The Baoan WTE plant’s waste processing capacity is equal to three million tonnes per year. Such is the scale that if you were to pile up the waste processed by the plant over said period onto a space the size of a football pitch, the result would be a two-kilometre-high tower of processed waste. The facility’s waste treatment capacity comes in at more than two times the total operational WTE capacity present in the whole of Flanders, Belgium, and the energy produced in a year is the equivalent of running four million 40W light bulbs or burning 700,000 tonnes of coal. Keppel Seghers’ involvement with the project has previously seen it providing the process design, technology and services for Phase I and Phase II of the plant, which were completed in 2006 and 2013, respectively. Scheduled to be completed by 2018, the Phase III expansion of the facility will add an additional 4675 tonnes per day (TPD) of capacity and enable the plant to process up to 8875 TPD of municipal waste, up from its current rate of 4200 TPD. This expansion will make the Baoan WTE facility the world’s largest WTE plant in terms of incineration capacity.

Keppel Seghers

Mr.Ivan Christiaens, General Manager of Keppel Seghers Belgium says: “The intrinsic and unique flexibility of the Keppel Seghers combustion system has proven to be a genuine advantage when it comes to large sized WTE plants. Urbanisation is taking place at an unprecedented pace in China and cities are looking for suitable technology capable of dealing with these large waste streams. Keppel Seghers aims to deliver world-class solutions to meet the demand for clean, liveable environments.” Once Phase III of the Baoan WTE facility has been successfully completed, Keppel Seghers’ proprietary technology being employed across China will be able to process over ten million tonnes of municipal waste per year, which is generated by over 20 million citizens. The waste will go on to be converted into 12,000 MWh of renewable energy per day, which will contribute to the reduction of approximately six million tonnes of CO2 per year.

The Phase III expansion of the facility will add an additional 4675 tonnes per day (TPD) of capacity and enable the plant to process up to 8875 TPD of municipal waste

Keppel Seghers keppelseghers.com Services: Solid waste and wastewater treatment

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global Going

Below Steinar Riise, Chief Executive Officer of Ocean Installer

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office there involved deep water umbilicals, flowlines and risers (UFR) installation work with Total E&P Congo at the Moho Nord field off the coast of the Republic of Congo. A complex project, it included the installation and pre-commissioning of an umbilical, MultiPhase Pump (MPP), flying leads and spools in water depths of up to 1000 metres. Utilising the highly-advanced CSV vessel, the Normand Vision from Solstad Offshore, which has worked on some of our most complex and challenging projects, we were able to execute the entire project, from project management, engineering and logistics, to the offshore installation work itself.” Following on from this, and several other successful African projects, Ocean Installer is very pleased to have recently signed a contract for a subsea umbilicals, flowlines and risers (SURF) project at the Al Jurf oil field, off the coast of Libya. Working for Mabruk

Since the well-publicised

downturn suffered by the oil and gas market that set in towards the end of 2014, we have taken several strategic decisions designed to respond to what has been a changing, and challenging market,” explains Steinar Riise, Chief Executive Officer of Ocean Installer. Headquartered in Stavanger, with offices in Aberdeen, Houston, Mexico City, Perth, Dubai and Rio de Janeiro, Ocean Installer is a Norwegian subsea contractor, delivering full EPCI services within the area of marine and subsea operations. “In the time since the downturn set in we have expanded our reach globally into new markets,” Steinar continues. “Such has been our success in doing so that our projections for 2017 suggest that more than half our total revenue for the year will have come from outside our traditional market of the Norwegian Continental Shelf (NCS). At the same time, we have also revised our asset strategy, becoming more focused on flexibility rather than long term charters. That has resulted in us becoming better equipped at taking on a broader range of jobs.” A large part of the company’s strategy for expanding its reach has been its goal of establishing itself in key African markets. This has been an intensive task that has required a great deal of hard work, but is one that is already paying dividends. “We are currently working in West Africa, as well as in the Mediterranean,” Steinar states. “Our first major operation in West Africa following the creation of our regional energy-oil-gas.com

Oil Operations, a joint venture between Total E&P and the National Oil Cooperation (NOC) of Libya, the work scope of this project encompasses the replacement of a ten-inch flexible flowline between a fixed drilling and production platform and a floating, production, storage and offloading unit, the Farwha FSPO. Project management will be handled by the company’s Stavanger office, with mobilisation and offshore operations scheduled to begin within the third or fourth quarter of 2017. “With such contracts as those already mentioned we are continuing to showcase our global capabilities,” Steinar says. This was further evidenced in the awarding of the company’s first contract in Australia, which was announced in January 2017. This contract on the Ichtys field involves the installation of six flexible risers and ten flexible flowlines, as well as additional support work and further installation options. Ocean Installer is conducting its work as a subcontractor to McDermott International, which is responsible for the overall URF EPCI scope towards end-client Inpex. “We have


PROFILE

long wanted to establish a presence within Australia and we are happy to be working with McDermott. As for our strategy for the Australian market, we believe cooperation of the type demonstrated here makes for a good way of establishing ourselves in the region, in what is still a fairly challenging market.” Closer to home, Ocean Installer does continue to attract work from its longstanding partners, notably Statoil, which in July 2017 confirmed it had awarded the company a contract for subsea installations and tie-in operations on its Johan Sverdrup, Utgard and Bauge projects. A continuation of Statoil’s Marine Wave 1 programme, which Ocean Installer remains

Ocean Installer

involved with, offshore operations relating to this latest contract will commence in 2019. While the company was certainly not immune to the immense challenges posed by the recent downturn in fortunes for the oil and gas industries, what Ocean Installer did during this time was view this uncertain period as representing an opportunity to change its focus, become more global and flexible, and ultimately gain market share. “We are very much focused on establishing relationships to secure priority access to a diverse range of vessels through partnership agreements, something which has proven key to enabling us to bid on a range of projects, from fast track jobs to bigger, more complex jobs,” Steinar concludes. “Throughout the company’s existence our vision has remained the same and that is that we want to be a key service provider in the global SURF market. That ambition is as strong today as it has ever been and we feel very well equipped to succeed as we continue to work towards it.”

Ocean Installer oceaninstaller.com Services: Subsea contractor services

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PROFILE

Parsons Peebles

Generating

growth Honing its skills over more than 115 years in the motor and generator industry, Parsons Peebles today serves a diverse collection of companies within the energy and industrial sectors. Driven by the delivery of high quality service, Parsons Peebles provides an extensive range of electromechanical services both onsite and within its workshops across the UK. Well positioned to ensure each customer’s equipment operates reliably and with minimal downtime, the company is a well-respected provider of inspection and installation services as well as diagnostics and replacement machines. Also known for its rapid response and short turnaround times, the company’s specialities are in motor, generator, gearbox, pump and compressed air service, parts and replacement units. With highly skilled engineers on-hand 24 hours a day, 365 days per year, the company has the employee numbers and capabilities to serve a range of industries on both large and small scale projects. Not only are site engineers CCNSG trained, AtEx approved and ad blue card holders, Parsons Peebles is also a member of the Electrical & Mechanical Trades Authority and Certified Rebuilder Electric Motors. As a company clearly committed to maintaining consistently high standards, all processes undertaken by the company adhere to a strict regulatory framework that includes the ISO 9001 and ISO 14001 environmental standards. Bringing together a range of legacy brands

such as Bruce Peebles, NEI Peebles, Peebles Electric Machines and AW Sterne, the company was purchased by Clyde Blowers Capital, an independent industrial investment firm, in 2013. Since then, Parsons Peebles has been strengthened by heavy investment, which not only enabled further growth, but also cemented Parsons Peebles’ reputation as a world leader in the service and manufacturer of bespoke electrical machines. Expanding into more sectors through both organic growth and acquisitions over recent years, the company now employs more than 360 people and boasts a network of 11 sites across the UK. This expansion has enabled Parsons Peebles to become closer to its customers, increase responsiveness to demands and also gain a higher level of product and service coverage. On top of this, through its acquisition of the Rotherham based high voltage coil company Preformed Windings, Parsons Peebles is able to deliver high voltage coils in days, not weeks to its customers. This offers a massive advantage to clients working offshore with a critical machine that goes down as the company can supply coils to get these machines back up and running very quickly. Furthermore, because it has the original machine design experience, the company can not only put in a set of like-forlike replacement coils, but also upgrade the coil to provide a more reliable machine that can be designed for potentially more output too. The more recent acquisitions of Anstee ENERGY,oil&gas

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Parsons Peebles

Now able to offer asset optimisation solutions for pump technology that supports the water industry in line with TOTEX expectations, Parsons Peebles looks set to strengthen its presence in the growing water sector & Ware in October 2015 and Taylor and Goodman, in March 2016 have not only played a key role in the company’s strategy of becoming the top electromechanical solutions provider in the market, but also resulted in these companies, alongside Parsons Peebles Generation, being placed under a new brand identity. Taking place throughout a 90-day brand integration process in the final quarter of 2016, the businesses have since begun to present the brand on various materials such as sales collateral, documentation, clothing and signage. With both Taylor and Goodman and Anstee & Ware specialising in electromechanical services for the water industry, the company has widened its scope on both workshop and onsite services that can be supplied to pump applications. This strategy for growth and expansion has been highly fruitful for Parsons Peebles, which today delivers coils, frequency converters, compressed air solutions, pumps, gearboxes and services & parts in addition to motors and generators to its diverse customer base. A more dynamic and adaptable firm, Parsons Peebles has taken a step away from the turbulent oil &

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gas market and developed a stronger presence in more stable sectors such as hydroelectric power, energy, water and industrial. Thanks to its versatility, the company has more balanced revenue streams and will also be ready to serve the oil & gas market when it returns. With a keen eye for opportunity, Parsons Peebles recently announced the formation of a partnership with water pump energy specialists Riventa with the goal of delivering a new, combined offering to the UK water industry. Bringing together energy optimisation expertise with world-class engineering solutions, this partnership will extend Parsons Peebles’ reach within the UK water market while also helping Riventa deliver its services to UK water organisations. Based on a joint belief in technological innovation and exceptional customer services, the two companies believe that the joint strengths of Riventa and Parsons Peebles will result in world-class TOTEX projects to be delivered and positive outcomes for customers. Since the announcement of the partnership in February 2017, the two partners have gone on to attend the Pump Centre Conference in Telford in May 2017 to provide information on the combined offering of pump efficiency and lifecycle extension solutions for pump applications. Now able to offer asset optimisation solutions for pump technology that supports the water industry in line with TOTEX expectations, Parsons Peebles looks set to strengthen its presence in the growing water sector. However, as a company that is in growth mode and has maintained a focus on diversifying operations, Parsons Peebles will continue to open its doors to customers in any sector that it can provide the best possible electromechanical services.

Parsons Peebles parsons-peebles.com Services: Electromechanical products and service provider


PROFILE

Tube-Mac Piping Technologies

Piping not hot -

but cold Founded in 1977, piping systems repair and installation business Tube-Mac Piping Technologies Ltd. (Tube-Mac) has plenty of firsthand experience when it comes to negotiating challenging economic times. It is this experience, and its proven ability to weather these storms while maintaining its industry-leading position that has seen it grow into a progressive, global company with its head office in Canada and offices in the United States, Spain, Austria and Brazil, and distributors and agents throughout Europe, Scandinavia, Asia and the Middle East. “We are currently witnessing a scenario where business in general throughout the world is experiencing several years of relatively slow growth, especially in comparison to that seen a few years ago,” begins Chris Peitchinis, TubeMac’s Vice President of Business Development. “One of the biggest contributors to this has been the drop-in oil prices, and while we have identified some potential piping repair and modification business on the horizon in the latter half of 2018, this drop has contributed to a decrease in sales from our customers in this particular sector.” Luckily for the company, it has diversified

over the last 40 years, moving into a number of industry segments, including steel, mining, automotive, offshore and marine shipbuilding. “The steel industry in North America has always been our strongest market, powered by a consistently strong demand for hydraulic piping systems, and while it too has suffered something of a slowdown, we see great potential for 2018,” Chris adds. “Meanwhile, demand from the shipbuilding industry has remained active in certain countries and we are seeing a number of other trends aiding our business, including the conversion of Offshore Supply Vessels (OSVs) into other ships such as fishing trawlers.” Tube-Mac utilises technologically advanced non-welded 37° flare and retain ring flanges, and PYPLOK connectors as a more costeffective alternative to traditional welded piping systems. With industry trends today resulting in a decrease in available skilled, high pressure welders, particularly in remote parts of the world, as well as ever-stricter cleanliness and environmental regulations, Tube-Mac is adamant that piping systems should no longer be installed in the same manner as they were 50 years ago. To do so simply creates higher labour costs and ENERGY,oil&gas

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STAUFF are a leading manufacturer of a range of products utilised in hydraulic applications, serving many industries Offshore Oil and Gas ● Marine ● Renewables Agriculture ● Rail transport ● Pharmaceuticals Construction ● Access Platforms

STAUFF & TUBEMAC enjoy the perfect partnership in supplying quality & innovation

Stephen Lyle, Sales Manager STAUFF Scotland, presenting the Pyplok product at a recent “lunch and learn” event.

A Tube-Mac® Manufactured Product

Our portfolio of manufactured products is vast and adheres to all relevant international standards.

Aberdeen Centre of Excellence for the Offshore Oil and Gas Industry Badentoy Avenue Badentoy Industrial Estate Portlethen, Aberdeen, AB12 4YB Tel: 01224 786166 sales@stauffscotland.co.uk

A4 Pyplok Advert.indd 1

Ireland

Tel: 02892 606900 sales@stauffireland.com

Sheffield

Tel: 0114 251 8518 sales@stauff.co.uk

Southampton Tel: 023 8069 8700 sales@stauffsouthampton.co.uk

www.stauff.co.uk www.stauffwebshop.co.uk

UK-EPA-A4-IS-210717-V1

ices Products and Serv FF U TA S 2 e su Is OUT NOW

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PROFILE

inadequate practices, and its advanced nonwelded piping technologies have been developed to combat this. “Mechanically attached PYPLOK fittings are really becoming an interesting new product development, which companies have been embracing in increasing numbers,” Chris explains. A weld-less, thread-less way to join pipe, the product has a successful history in the most demanding of environments where fire safety is essential, as well as being a quick and easy solution to maintenance repairs. Using a portable, hand-held installation tool, couplings are cold worked and permanently compressed onto the piping, thus forming a permanent leaktight seal. There are three seals, these being a metal-to-metal seal, an inner o-ring seal and an outer o-ring seal. The outer o-ring seal prevents outside contaminants from entering the system. The use of the PYPLOK connecting system eliminates the extensive requirements and costs of welding, such as a welder and consumables, hot work permits, fire watch, flushing and purging, gas freeing, radiography and certification. Repairs and pipe installations can be made safely, quickly and easily with the PYPLOK system, minimising the duration of shutdown periods. For these reasons, PYPLOK was recently approved by, and will be included in, STATOIL’s TR 3016 standard. Innovative, cost effective systems like PYPLOK, together with exceptional customer service, have contributed to Tube-Mac becoming involved in all manner of projects over the last four decades. To this day, it continues to be contracted to work on interesting and challenging undertakings, particularly when it comes to the offshore and steel industries. These projects can be highly specialised and diverse, from its work on the new locks being installed at the Panama Canal to the installation of an underwater acrobatic hydraulic system at the Wynn Hotel in Las Vegas, Nevada. This year marks the 40th anniversary of the company being established, quite the achievement for a business of any size or expertise. “Being in business for 40 years, and counting, provides our customers with an added boost of confidence, reassuring them that we are not simply a ‘fly by night’ business, rather that we are serious when it comes to providing the best quality products and services every time,” Chris states. “What makes us equally as proud as the company reaching its 40th anniversary is the fact that many of our employees have also been

Tube-Mac Piping Technologies

Stauff

here for over 30 of those years. That says an awful lot about both them and how Tube-Mac values its people, and plans are in the works for a big celebration for all our employees and their families to mark this milestone.” While business in some of its core sectors may currently be down compared to previous years, Tube-Mac is always on the lookout for new opportunities and potential new markets to explore. “PYPLOK gives us an edge since it is a system that can be utilised with a variety of fluids and gases, not to mention in any number of industries,” Chris says. “One example would be in the field of condensate and steam lines in petrochemical or oil refineries. This is a new market for us that we are yet to fully penetrate, so that is something we are looking closely at. “Our goals for the business are simple, and they are to stay the course and increase sales. We will achieve this by supporting our existing customers and finding new ones. We have an added advantage in that along with great products, we recognise that you also need to have a team of dedicated and knowledgeable staff to sell and promote said products. We have such staff and without our people, our solutions simply would not sell themselves.”

Stauff’s relationship with TubeMac has evolved as a result of the natural synergies that exist between the PYPLOCK non-weld system and the extensive range of Stauff Connect hydraulic solution packages. These include innovative hydraulic pipework solutions, tube manipulation technologies, clamping systems, components, accessories and services. Over time, a strategic partnership has developed that allows Tube-Mac’s range of products to gain exposure via the extensive market coverage enjoyed by Stauff. Far from being simply oil and gas reliant, Stauff also has a healthy and successful footprint within the renewables, rail transport, construction and marine sectors. Current market conditions require the industry to continually source technically credible alternatives to existing products. Stauff is continually working with clients in the field of research and development in order to determine, and support, the fact that Tube-Mac products exceed technical requirements and commercial benefits. This work has resulted in said products being accepted and specified for several upcoming scopes of work. Tube-Mac products are also type approved by leading global authorities such as ABS, DNV, BV and Lloyds. On a local basis, Stauff is able to deliver comprehensive practical demonstrations and presentations at a client’s facilities, which are generally followed up with active Q&A sessions.

Tube-Mac Piping Technologies Ltd. tube-mac.com Products: Non-welded piping systems and components

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Marine Fabricators

substance Providing structure and

Occupying seven bays

The Angle Ring Company Angle Ring has been at the forefront of the steel bending industry for over 60 years and offer the UK’s widest range of bending solutions to meet today’s markets. Significant investment ensures we remain the UK’s #1 and new plate rolls now allow 100mm thick plate to be rolled in widths up to 3000mm. Plate can also be pressed in lengths up to 10,000mm and up to 200mm thick. Information on all services can be viewed online at www.anglering.com Contact: sales@anglering.com Tel: 0121 557 7241 Fax: 0121 522 4555

of the main fabrication shop at Haverton Hill Shipyard, a covered area of approximately 45,000 square feet, Marine Fabricators specialises in medium and heavy fabrication for structures and equipment used in the renewables energy, marine, and offshore oil and gas industries. Founded in 1998, the primary aim of the company is to produce quality goods, safely, on time and within budget. Marine Fabricators’ fabrication shop is today served by three 15 tonne and two 40 tonne overhead travelling cranes, with maximum hook heights of 10.5 metres and 17 metres respectively. With two main access doors, sized to accommodate large structures, the company also has a dedicated, insulated assembly and storage building, which is served by a five tonne Goliath crane. As well as being able to offer additional internal floor space and external storage areas where required, the company’s painting sub-contractor, Universal Coatings, is accessible by internal site roads, and its strong relationship with its local neighbours means that Marine Fabricators also has access to three loadout quays. Marine Fabricators’ capabilities have seen the company carry out an array of projects including overboarding/lay towers with capacities from 60 tonnes to 200 tonnes, 600 dia. wire rope sheaves through to 6000 dia. over-boarding vee-

sheaves, carousels, for flexible pipe and power cables, from 750 tonne capacity and 15 metre diameter to 7000 tonne and 27 metre diameter, and tensioner systems with varying capacities ranging from three to 45 tonnes. Additionally, the company also offers pipe handling equipment, for instance hydraulically operated spooling arms and chute structures, ROV launch and recovery systems for Lawson Engineers and the Kizomba TLP, and A-Frames with up to 150 tonne capacity. When Energy, Oil & Gas caught up with the company’s Directors, conversation focused on how things have developed since we last spoke in 2016. “Over the course of the last year we have successfully manufactured and completed installation of cable carousels and associated cable lay equipment on two vessels, the NKT Victoria and Living Stone, for our customer MAATS Tech,” explains Marine Fabricators’ Managing Director, Chris Reed. The company’s involvement with the NKT Victoria is significant given that the state-ofthe-art, high-voltage cable laying vessel has only recently been announced as the winner of the prestigious ‘Ship of the Year’ award at a ceremony at the Nor-Shipping trade fair in Oslo. The annual award goes to a Norwegian-built vessel that represents innovation, and value added and technological advances. The NKT Victoria is among the world’s most advanced ENERGY,oil&gas

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Marine Fabricators

vessels of its kind and provides improved cablelaying precision based on DP3 capability and a remotely operated vehicle, using cameras and sonar, thus eliminating the need for divers. “Marine Fabricators work on the NKT Victoria involved the manufacture and installation of two carousels and a large deck spread of lay equipment,” explains Chris. “The two cable carousels in question possess a 7000 tonne and 4500 tonne capacity, respectively, the latter of which was an underdeck carousel equipped with a full spooling system. In addition, we also supplied two No 45T tensioners, an underbender, various roller pathways, a loading arm and repair line container pathways.” Living Stone, meanwhile, is an impressive vessel in its own right. Measuring 161 metres in length, with a moulded breadth of 32 metres, draught of 6.5 metres and deadweight of 13,185 tonnes, this multi-role vessel is capable of performing cable, umbilical and rock installation, trenching, offshore transport and installation works. In the case of Living Stone, Marine Fabricators’ involvement saw it manufacture and install two 5000 tonne capacity cable carousels, with accompanying spooling and lay equipment also provided. The linear product loading speed at the centre core area of the cable carousels can total 1200 metres an hour. “While 2017 has been a relatively stable year to date, we have used this opportunity in order to work towards, and achieve accreditation to EN1090-1 for CE Marking, Execution Class 3. We are also on the cusp of beginning work on several exciting projects. These include working with Wilton Engineering and Offshore Structures Britain to deliver the suspended internal platforms for Hornsea 1.” Hornsea 1 represents an exciting opportunity for the company, itself being a crucial phase in the development of the Hornsea Wind Farm, a Round Three wind farm currently under planning development in the North Sea, 120 kilometres off the coast of England. Project One is the first development proposed within the Hornsea Zone and will constitute up to three offshore wind generating stations with a total capacity of up to 1200 megawatts, covering an area of approximately 407 square kilometres. The development consent order for Hornsea 1 would authorise the construction of up to 332 wind turbines, up to two offshore accommodation platforms, up to five offshore HVAC collector substations, and up to two

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offshore HVDC converter stations. Further infrastructure will include an offshore HVAC reactive compensation substation, subsea interarray electrical circuits, a marine connection to the shore approximately 150 kilometres in length, onshore cables which will connect the offshore wind farms to the onshore electrical transmission station, and the connection from there to National Grid’s existing substation at North Killingholme, a distance of approximately 40 kilometres. Once fully functional in 2020, Hornsea will be the largest offshore wind farm in the world, making its significance when it comes to the immediate future success of the companies involved in its development abundantly clear. Fortunately, the track history of projects successfully delivered by Marine Fabricators suggests that it is more than adequately placed to service the needs of this project, and many other large scale undertakings, for many years to come.

Marine Fabricators marinefabricators.co.uk Services: Medium and heavy fabrication


PROFILE

Plexus

Turning the

corner Six months can be a long time in what Above Ben van Bilderbeek Chief Executive Plexus PLC Below 18 3-4 Surface Wellhead

is currently a volatile oil and gas industry. That was the sentiment shared by Plexus PLC (Plexus) Chief Executive, Ben van Bilderbeek in the company’s interim results for the six months to 31st December 2016. While Plexus like virtually every business in the sector, has seen itself impacted by an extended period of low oil prices and reduced levels of exploration activity, particularly in the North Sea, what sets Plexus apart is the fact that it stands well placed to see out this downturn. It has achieved this, in part, by significantly reducing costs, strengthening its debt free balance sheet and reducing its capital spending commitments. Even more important is Plexus’ patented POS-GRIP® friction grip method of wellhead engineering, which continues to deliver best in class solutions to the industry in terms of safety and operational efficiency. “In spite of the fact that the trading cycle within the industry remains in a downturn, being an intellectual property (IP), engineering and technology led business means we do not believe in taking our foot off the pedal when it comes to our IP or our R&D,” explains Graham Stevens, Plexus’ Chief Financial Officer. “While it is true that, like everyone else, we have been tightly controlling our budgets in recent times, what we have is a comprehensive body of patented technology under our belt which we know has many possible applications aside from those proven within our traditional jack-up arena.”

Invented in 1997, Plexus’ POS-GRIP technology offers significantly enhanced safety and operational features, whilst minimizing operator’s costs through increased time savings and which have been taken to a whole new level by the company’s proven ability to test wellhead metal seals to the same standard of premium couplings. Key to the success of POSGRIP is the technology’s ability to deliver instant casing hanger lock down and a true metal to metal seal based on real and verifiable science employing Hertzian Contact Stress principles that can withstand well dynamics and which deliver a large seal contact area. Such features are uniquely advantageous for HPHT and corrosive drilling conditions. “By December 2015, we had come to the end of an extensive R&D cycle, the result of which was a number of products that we could look at marketing in additional industry segments to those that we would usually target, including connectors, surface production and subsea applications,” Ben adds. “We see from a number of reports released by researchers and analysists that hydrocarbons are on target to remain a vital part of the energy mix for many years to come and that exploration drilling activity levels will ultimately pick up again. “Even if cars move quickly towards being electric, energy consumption satisfied by gas is growing and global demand for industrial purposes and chemicals remains strong. We are already starting to see some of the green shoots ENERGY,oil&gas

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as exploration drilling begins to pick up, and our strategy will continue to be geared towards using our unique IP to generate revenue by marketing our capabilities to customers around the world, as well as the large providers of related equipment and technology.” Plexus has also begun to spread its wings in a geographical sense, identifying potential areas of growth away from those where it has historically been present such as the North Sea. One of the regions it has recognized as being a potential source of future growth is the Gulf of Mexico, particular on the Mexican front. Similarly, it has pinpointed increasing levels of activity in India and the Middle East. “It could very much be a game changer for the company to be marketing its IP in such regions,” Ben enthuses. “For more than a decade the majority of our marketing was focused on the North Sea and its surrounding countries. Whereas previously our operations were more compact, typically organised from Aberdeen, this international growth requires the forming of new alliances and partnerships. We have a great deal of confidence in our IP and its potential to be adopted by these new markets.” The significance of Plexus’ IP, and its POSGRIP technology is clear for anyone to see. The specialised nature of the technology has seen it used in over 400 oil and gas wells to date. With its many advantages coming to the fore in High Pressure/High Temperature (HPHT) and Extreme HPHT (X-HPHT) oil and gas environments, Plexus is increasingly recognised as the supplier of choice. One such project the company recently completed was the supply of an X-HPHT exploration wellhead to Total for the Solaris well, which is believed to be the deepest and highest pressure well ever drilled in the North Sea. “We were selected to provide the wellhead equipment for the Solaris exploration well, an undertaking that went very well indeed,” Ben states. “We were fortunate in that this was not a project that we actually had to tender for. Rather we believe it was a case of the customer recognising Plexus as being the only company of its kind to be able to supply the specialist wellhead equipment required to carry out activities in such a challenging environment and which could supply the type of technology needed to complete the task at hand.” In the face of some of the most testing trading conditions that the oil and gas industry has experienced in recent decades Plexus has

Plexus

Groundwater Lift Trucks Ltd Groundwater Lift Trucks Ltd has been providing Plexus Ocean Systems Ltd with materials handling equipment for over ten years. We supply Toyota, Kalmar and Combilift forklifts with capacities ranging from 2.5T up to 15T, where we also repair and service their large fleet of forklifts. Although the current climate remains challenging within the oil industry, Plexus Ocean Systems Ltd continues to prosper and expand. Groundwater Lift Trucks Ltd is always on hand to supply materials handling equipment to meet their growing demand.

continued to demonstrate its ability to win complex, technically challenging contracts such as the Total Solaris well. At the same time, it has strengthened its debt-free balance sheet, solidified its IP position and begun planning for the future by targeting new geographic regions and new customers. “Our stakeholders all share the belief we have in the strategy we are pursuing, which we are certain will enable the business turn an important corner on its journey towards becoming an innovative, world class technology and engineering led oil equipment services and solutions provider,” Ben concludes.

Above POS-GRIP 15ksi HPHT Exploration Wellhead System

Plexus PLC plexusplc.com Services: Engineering wellhead solutions

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A renewed strategy with

renewable energy in focus Below Gunnar Groebler, Senior Vice President, Business Area Wind at Vattenfall

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Beginning operations

more than 100 years ago with the restructuring of the Trollhättan canal in Sweden, Vattenfall has since grown to become one of Europe’s biggest producers and retailers of electricity and heat. A reasonably traditional energy utility until 2015, the company then went onto establish a new strategy to divest lignite assets and instead focus on renewable energy. With its main markets located in Denmark, Finland, the Netherlands, Germany, the UK and Sweden, the 20,000-strong company is committed to delivering alternative, cleaner ways of powering and heating homes, industries and cities. energy-oil-gas.com

Vattenfall produces heat and electricity from energy sources such as wind, hydro, biomass, solar, nuclear, coal and gas and believes the continuous and reliable delivery of energy to society requires a variety of energy sources. Working to speed up and enable a climatesmart life, the company’s strategic objective is to be climate-neutral by 2050 and by 2030 in Nordic countries – a commitment that requires a stepwise phase-out of fossil fuels. To fulfil its purpose, to ‘power climate smarter living’, the company’s strategy has been arched around four strategic objectives: leading towards sustainable consumption, sustainable production, high


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Vattenfall

business and something we work very hard with. Our transition is not only visible to the outside world, but also believed by people as something we take seriously, which is a big achievement for us.”

performing operations and empowered and engaged people. Against this backdrop, Vattenfall accelerated the implementation of its strategy in 2016 and took concrete actions to ensure these objectives become reality. Discussing the company’s move into the renewable energy market is Gunnar Groebler, Senior Vice President, Business Area Wind at Vattenfall: “The strategy that began in 2015 will continue into the early 2020’s as we have undergone a major change and aim to continue growing as we push towards being fossil free in one generation. This is something we have stated and strive towards in all areas of the

Since previously being featured in September 2016, the 100 per cent Swedish state-owned organisation has continued to be active in many aspects of the renewable sector, as Gunnar Groebler comments: “We are on track with our focus on renewable energy and have two projects under contract currently – the Horns Rev 3 windfarm and the Aberdeen Offshore windfarm, otherwise known as the European Offshore Wind Deployment Centre (EOWDC). For Horns Rev 3 we have made a final executive decision and are in the product delivery phase. We are in the process of manufacturing the components and are going to sail out with the first components for installation in the final quarter of 2017. “Meanwhile, the Aberdeen Offshore windfarm is enabling us to use turbines available on the market with new features; for example, for the first time we are using suction bucket foundations on an entire wind farm instead of monopiles. This offers more flexibility on foundation piles in different soil conditions to bridge higher water depth than you could with a monopile.” While this development underlines the vision of EOWDC, the centre is still in its construction phase, with first power generating in the summer of 2018 and operations set to last for two decades. Vattenfall invested more than £300 million ENERGY,oil&gas

Top left The offshore wind farm Sandbank is the second major wind power project in the German North Sea by Vattenfall. The construction started 2015

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Below Solar panels on a roof in Hafen City, Germany

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to build EOWDC, which is Scotland’s largest offshore wind test and demonstration facility, in July 2016, making it the 100 per cent owner of Aberdeen Offshore Wind Farm Limited. Working with its partner, the Aberdeen Renewable Energy Group, the company has developed EOWDC with the goal of growing its wind power capacity throughout Europe and the UK and boosting the industry’s drive for

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competitive, renewable power. Once complete, EOWDC will produce 309 GWh annually, have an installed capacity of 92.4 MW and will annually displace 132,977 tonnes of CO2; it will also produce enough electricity every year to meet the equivalent annual demand of almost 80,000 homes and remove the equivalent of more than 730,000 cars from UK roads throughout its lifetime. Another major development for the company was the inauguration of Sandbanks, a windfarm of 72 turbines that are generating 288 MW and supplying 400,000 households. Despite being complete, the windfarm has room for an extra 64 turbines, of which 24 have already been approved. Gunnar Groebler elaborates on the inauguration of this project: “We had a BBQ party to celebrate, with grills fired up by offshore electricity; it was a big achievement for us and is proof that the change in strategy for us is becoming visible.” Further strengthening its transition towards renewable energy, the company made the decision to progress into solar energy and batteries in April 2017. In terms of batteries, Vattenfall and BMW Group signed a contract for


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the pioneering company is keen to continue proving itself in the energy sector and has a strong ambition to reshape its overall production portfolio and progress into a market that has significant growth rates anticipated. Looking ahead, Gunnar Groebler concludes: “We have a clear strategy going forward to grow the solar business, both in terms of the business sales side and business to consumer side with a more complex offering of solar panels combined with batteries behind the meter; both offerings will thus be much stronger than we have seen so far. “We have taken and will continue to take important steps in realising our strategy. So I am happy to see that our projects are in line with our main ambitions of driving down the cost of electricity as well as providing climate smart and cost efficient energy to Europe. But we are far away ready, we will need to continue our strong growth in renewables and improve our customers’ experiences.”

Vattenfall

I am happy to see that our projects are in line with our main ambitions of driving down the cost of electricity as well as providing climate smart and cost efficient energy to Europe

Vattenfall corporate.vattenfall.com Services: Producer and retailer of electricity and heat

the delivery of up to 1000 lithium-ion batteries in 2017, with Vattenfall purchasing new batteries from the BMW plant in Dingolfing and using them in storage projects, with the largest storage capacity being built at the company’s wind farm Pen y Cymoedd in South Wales. “Yes, we also seek to expand into batteries more, having won part of a tender that National Grid put up in 2016. For this project we will be building a 22 MW battery alongside the Pen y Cymoedd windfarm in South Wales. This storage facility will help support the stability of the countrywide power grid in the UK.” When it comes to solar power, Vattenfall is looking for opportunities in three core areas: the development of large scale solar photovoltaic (PV) farms, particularly where it has the opportunity to use existing infrastructure to help reduce costs; the facilitation of decentralised energy generation at the point of consumption for both private and business customers, and the offering of market access services and power purchase agreements to small scale solar PV generators who are looking to market their excess generation. Operating in an expanding energy framework, ENERGY,oil&gas

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Drilling fluid

recovery Due to a combination

Below Ronnie Garrick, TWMA’s Chief Executive Officer

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of tightening international legislation, complexities in well architecture, enhanced ethical awareness, and an ever-increasing trend for best practice, the need for the global oil and gas industry to pursue more sustainable and efficient methods of handling and treating drill cuttings and slop has never been greater. This requirement has seen oil and gas companies seek out single source providers who can safely deliver drill cuttings and slop management, preferably through the full project life cycle from exploration to decommissioning. One such provider is TWMA. Formed in the UK in 2000, TWMA is globally recognised for providing specialist drill cuttings and slop handling, management and treatment solutions to the onshore and offshore oil and gas industry. “Our skilled and experienced teams work in partnership with clients internationally to meet and surpass the demands of legislation by providing value driven solutions for the

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recovery of valuable drilling fluids, whilst also reducing the environmental impact, and improving the safety of drilling and associated activities,” explains TWMA’s Chief Executive Officer, Ronnie Garrick. “From initial concept development through to project execution, we specialise in the design, manufacture, integration and maintenance of reliable equipment packages, designed to safely and efficiently handle and treat the various material streams generated during oil and gas operations,” Ronnie adds. “We design, manufacture and operate our technical solutions in-house for use across multiple applications, dependent on specific project requirements. This allows us to provide tailored, high quality solutions for our customers.” These customers are active today in core markets such as Europe, the Americas, North Africa, West Africa and the Middle East, across which TWMA employs approximately 550


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TWMA

experience working with multiple service providers across various drilling waste streams, but this can often lead to issues with control, liability and tracking, thereby reducing efficiency

The aim for the company is to continue to grow by focusing on its core activities and associated services while maintaining and delivering high level service quality to its clients

people in order to meet demand. “Since 2000, we have safely delivered solutions across the full contract spectrum, from single well projects to multi-well, multi-year programmes, with varying levels of complexity,” Ronnie says. “Our clients are typically operators, well engineering companies and rig contractors, who are looking to meet and exceed legislative parameters, whilst maximising operational and cost efficiencies with regards to their drill cuttings and slop management requirements. “Clients turn to us to develop tailored solutions whether their project is considered to be straightforward or much more involved and complex. Unlike many of our competitors, we don’t simply provide off-the-shelf solutions, rather we provide a service based around established technology and solutions. This is proven through our volume of repeat business and number of long standing clients.” A number of operators in the industry have

and adding unnecessary costs to the supply chain. TWMA offers every client an efficient and value driven solution by bundling drill cuttings and fluid recovery requirements into one contract. By providing fluid recovery and drilling efficiency through drill cuttings and slop management solutions, the company gives itself an edge over its competitors, many of whom can only offer this as a ‘bolt-on’ service. TWMA’s core technologies and services include the EfficientC®, TCC RotoMill®, TCC RotoTruck® and Slop Treatment. Its EfficientC technology transports drill cuttings for drilling operations, removing the need for high volumes of crane lifts onshore and offshore, thus allowing continuity of operations, which significantly reduces safety risks to personnel. Meanwhile, the company’s TCC RotoMill, TCC RotoTruck and Slop Treatment solutions effectively separate drill cuttings and slops into its three constituent parts, these being recovered oil, solids and water. Oil is recovered at such a high quality that it is able to be reused in multiple applications including returning it to the drilling process. Recovered water and solids are also clean enough to be safely dispersed. There are numerous examples of TWMA’s services and technologies being applied to successful projects. One particular case involved the company being contracted by an ENERGY,oil&gas

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APPROVED

1 SAMSON PUMPS SAMSON PUMPS AND TWMA HAVE COLLABORATED FOR MORE THAN 15 YEARS A Vacuum transport system for cuttings, the Air Transfer System sold by TWMA is based on high volume air flow technology and replaces all screw conveyers, belt conveyers and other transport equipment. The main components in an Air Transfer System unit are liquid ring vacuum pumps. Samson liquid ring vacuum pumps are engineered to operate in an extreme, harsh environment and designed with the solid shaft and welded impeller in stainless steel to ensure high reliability and low maintenance costs. Maersk Oil UK Maersk Oil UK had come up with other proposals of how to transfer cuttings, but they were not effective. Both Samson Pumps and TWMA have been suppliers to Maersk for many years, so for Maersk Oil UK it was natural to ask for a collaboration between two well-known companies to provide the drill cuttings transfer. Kelvin Jensen, Engineer at Samson Pumps said: “Drill cuttings can be difficult to work with, so we were happy to cooperate with TWMA with whom we have worked with for more than 15 years. We had to calculate and test the whole system together with TWMA at their land based facilities, and with their practical experience, innovative behavior and our own knowhow of using high air flow systems in the oil industry, the new Air Transfer System from TWMA has been developed and proven offshore.” Samson Pumps has supplied TWMA with EX pump units, which are ATEX approved and have a recycling water system to reuse 90 per cent of the water for the liquid ring pumps. Samson Pumps has a partnership with rig designers and engineers for many of the world´s largest offshore oil and gas companies. Samson Pumps has full focus on documentation and the development of units for the offshore industry. Pumps can be delivered to both zone 1 and zone 0. Samson Pumps offer complete pump units for incorporation in containers to total solution suppliers of plants for the offshore industry. Whether for small, movable container units (LRUs - Line Replaceable Units) or larger stationary containers, Samson Pumps can supply exactly the right kind of pumps and finished units. We ensure that the customer is supplied with the solution that best fits their actual need. Left Kelvin Jensen, Samson Pumps Far right You can connect two Gamma 100 vacuum units with the suction capacity of 6000 m3/h (air) to a big liquid separator, and place them in a 10ft container.

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international operator undertaking a five-year drilling campaign in the North Sea. The rig was already under construction, with a client owned drill cuttings and storage system integrated into the rig when TWMA was tasked with delivering a complete drill cuttings management service. Core elements that needed to be addressed included the need to safely and efficiently manage the removal of the drill cuttings from the rig preload tanks, and to utilise an electric drive TCC RotoMill, which would harness rig power via a Variable Frequency Drive (VFD) offering 950kW of rig supplied capacity. Furthermore, the service needed to be contained within a small, pre-defined area on the rig and TWMA needed to deliver contingency options for the robust and efficient management of drill cuttings. In October 2015, in Singapore, the company conducted a detailed rig survey and a comprehensive solution was outlined. This would involve TWMA designing and manufacturing a flexible solution that delivered the lightest and most compact electrically powered TCC RotoMill, as well as a fully designed, developed and manufactured Air Transfer System. The latter would be used to safely transfer drill cuttings from rig preload tanks to the TCC RotoMill. “Installation and commissioning of the system was carried out with no incident, and once in its operational phase this application was successfully operated offshore,” Ronnie describes. “The Air Transfer System allowed a significant volume of drill cuttings to be transferred from the rig owned preload tanks and processed successfully through the TCC RotoMill.” In May, 2017, TWMA announced that it had secured an important strategic partnership and investment from specialist oil field services investment firm, Buckthorn Partners. “This investment will accelerate our plans for global growth and product and service expansion. It will allow us to invest further into research and development, and continue to introduce revolutionary technologies and industry-leading solutions,” Ronnie states. “Coupled with the strong financial performance of the business over the last three years, this investment positions us well for the future.” The aim for the company is to continue to grow by focusing on its core activities and associated services while maintaining and delivering high level service quality to its clients. The longer-term view is to have its current international business transitioned into a global business.

“Delivering best in class solutions would not be possible without the best people in place to support our clients’ requirements. Our talented and committed workforce has helped us contribute greatly to the evolution of a more cost efficient and environmentally- aware energy sector, as well as the growth of TWMA as a whole. We look forward to building on our success in the future, and bringing new products and services that will add further value to our customers.”

TWMA

TWMA twma.co.uk Services: Drill cuttings and slop handling, management and treatment solutions

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Making a vision

a reality

On 25th April 2016, Crown Prince Mohammad bin Salman outlined a grand vision for the Kingdom of Saudi Arabia, dubbed Saudi Vision 2030. An ambitious undertaking designed to reduce Saudi Arabia’s dependence on oil, diversify its economy, and develop service sectors such as health, education, infrastructure and tourism, the plans include 80 different largescale projects, each costing up to $20 million. Some of the goals set out by the Crown Prince include reinforcing economic and investment activities, expanding non-oil industry trade, and increasing government spending on the military, manufacturing equipment and ammunitions. As expected, the announcement of Saudi Vision 2030 helped spark an increase in industry-specific projects. One of the beneficiaries of this has been Dammam Shipyard. A part of the Al Blagha Group, one of the largest marine infrastructure companies in Saudi Arabia, Dammam Shipyard, with its sister company Jeddah Ship Repair, is the premier shipyard in the Kingdom. Since 2015, the shipyard has completed 12 jack up rig repair and fabrication projects, and since its concession in May 2012 it has completed over 500 vessel repairs. Located in the King Abdulaziz Port of Dammam, the shipyard operates two IACS classed floating docks, two 90 metre jetties, a ‘pull test’ bollard and several electrical, mechanical and machine workshops.

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“As a proud Saudi-based company, we have been very focused over the last couple of years on supporting Saudi Arabia’s national petroleum and natural gas company, Saudi Aramco, and its contractors, as well as important institutions like the Royal Saudi Navy and the Saudi Coastguard,” explains Jason French, Chief Executive Officer of Dammam Shipyard. “As well as continuing to provide customers with ship and rig repair services, we have also expanded our passive fire protection, and blasting and coating applications.” The latter activities are now being put to use in one of the most important infrastructure projects taking place in the Kingdom, the Riyadh Metro. A rapid transit system serving the city, it will consist of six metro lines spanning a total length of 176 kilometres and host 85 stations. The project will cost $22.5 billion to build and is scheduled to open in 2019. “Working with the BACS consortium, made up of Bechtel, almabani, CCC and Siemens, which is responsible for the design and build of lines one and two of the Metro, we are operating as blasting and coating applicators, providing blasting and painting management and personnel, and applying passive fire protection to the project. We have been a part of the Riyadh Metro project for approximately one year now and our work remains ongoing as we continue to be awarded new packages to complete.”


PROFILE

Dammam Shipyard

which I believe has given us an excellent foundation to build upon. As far as the future is concerned, our aim is to evolve our offering, expand the size and capability of the yard, and target the inevitable increase in fabrication and maintenance work that will accompany Saudi Vision 2030. “We believe we have achieved something special by not only surviving, but prospering in one of the toughest markets known and we want to build upon this through further investment to the dock, our workshops, our cranes and so forth. We are currently discussing this with the Port Authority, who are very conducive towards our ideas. Competition in this market will only get stronger and more intense, but we will continue to work with all of our customers, providing them with the best service possible and leading turnaround times. This is what Dammam Shipyard is all about, doing a fast, quality job at a competitive price.”

We believe we have achieved something special by not only surviving, but prospering in one of the toughest markets known and we want to build upon this through further investment to the dock, our workshops, our cranes and so forth Dammam Shipyard dammamshipyard.com Services: Ship, jack-up and drilling platform repair

Back at its port home, and at Jeddah Ship Repair’s facilities, Dammam Shipyard is busy working on projects for the Saudi military. For the Royal Saudi Navy’s Eastern Fleet, it is in the process of completing a water-chilled AC refurbishment contract, while for the Western Fleet it is carrying out DCNS work. At the same time, it continues to support those drilling contractors and jack up rig operators working with Saudi Aramco, as well as providing repairs and maintenance for handling tug boats, crew boats and dredgers operating in the area. While the steep decline and subsequently slow rebound of oil prices in recent years has caused widely publicised disruption and pain to much of the industry, Dammam Shipyard has used the time constructively, investing capital in order to transform into a leaner, stronger entity. Supported by its shareholders, it has a long-term vision for its future growth, part of which is to target those EPCI contractors who enter into long-term agreements with Saudi Aramco for the building and maintenance of jackets and offshore platforms. “I personally came into the shipyard four years ago and at that time it was essentially a dead yard for all intents and purposes,” Jason says. “In the time since our team has completely changed the face of the business, bringing in new talent, systems and processes, ENERGY,oil&gas

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PROFILE

Offshore Painting Services

A stroke of

When brothers David and Paul Jones recognised, in May 2010, that there was an opportunity to provide niche painting services to the renewables sector, particularly offshore wind farms, the result was the creation of Offshore Painting Services (OPS). Based in Liverpool, OPS initially worked on a small number of projects, growing the business through the quality of its workmanship and by referral. Within four years the company’s workforce numbered more than 45 technicians and it was able to offer an additional service, blade inspections and repairs. A year later, with premises now open in Grimsby, OPS achieved ISO:9001 and 14001 accreditations. Then, in Spring 2016, relocated to larger premises in order to begin offering a wide range of training courses, including Industrial Coatings Application Training Scheme (iCATS). That same year OPS would accumulate accreditations from the Industrial Rope Access Trade Association (IRATA), the Global Wind Organisation (GWO) and The Society for Protective Coatings (Train The Painter). In January 2017, the company would take the next step in its rapid development by commencing with industrial contract works for the first time. “The core elements of the business are its ability to provide complete corrosion protection, as well as blade inspection and repair services,” begins OPS Co-Founder and

Operations Director, Paul Jones. “The two elements comprise a part of the O&M function on the windfarm, both onshore and offshore, and include rope-access and ground-based operations. Our services are also provided at every stage of windfarm development, from preassembly to commission and beyond, through to decommissioning. At the end of the day, our primary function is to preserve our customer’s asset and prolong its operational lifespan.” OPS boasts a diverse customer base, which includes the likes of MHI Vestas, Senvion, Siemens, DONG, RWE/Innergy and SP Energy, while its technicians can be found working across the globe, from Scandinavian to Africa, and beyond. Equally as diverse is the company’s project history, which encompasses undertakings requiring anywhere between one and 30-plus technicians to be deployed, sometimes for just a few days or potentially several seasons. These projects may involve blade work, paint work, window cleaning on high-rise buildings or even the painting of the underside of a railway bridge that spans an expanse of water. Whatever the case may be, each task presents a specific challenge to plan and organise, which OPS is well versed in responding to. Recent examples of the company’s work include a five-week project to dismantle, repair, paint and reassemble an electricity gantry across a canal for a large utility provider, and a two-month undertaking to attach acetates to the sides of wind turbine nacelles on a large windfarm in central Africa. Closer to home, OPS has a team of more than 25 technicians currently working on pre-assembly preparation for several windfarms off the east-coast of England. “Our company has an enviable reputation for quality, with an ethos built upon excellence in all that we do,” Paul continues. “This ethos is part of the company psyche and one which we believe begins during the recruitment process. Furthermore, we are one of only a select number of businesses that can offer both operations and training services that complement one another. This helps us to provide our technicians with potential employment opportunities upon completion of their training, while at the same time providing OPS with a quality and competent resource with which to meet present and future requirements.” Training has always been considered as a fundamental contributor to the success of the company, with its reputation for quality being in part, due to the skills and knowledge of its team. It is also important to remember that the ENERGY,oil&gas

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PROFILE

Offshore Painting Services

demands and needs of the industry are everchanging, making the need for regular and thorough training to ensure each technician is fully competent and able to deliver to the best of their ability all the more relevant. “Training, as part of the business model, is not a new concept, having been on the agenda since 2014, rather it was a matter of timing to find the right premises for our training centre, which we purchased in Spring 2016,” Paul states. “From this point on we were able to bring most of our own training requirements in-house, meaning we no longer had to be reliant on external providers. This in turn meant that we could concentrate on delivering a first-class service to our customers, knowing that their training needs would be fulfilled. Meanwhile, the addition of monthly career-development days for all technicians provides them with the opportunity to refresh their skills when they feel the need.” While the future is always difficult to predict, the outlook for renewable energy is broadly positive and with technicians from the UK considered to be among the best in the world

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demand for their services is likely to continue in the coming years. At the same time, declines in other sectors are contributing to an influx of technicians looking to transfer their skills into the renewables sector, all of whom need to obtain the relevant training and certificates to enable them to work in the industry. “Our business model is to continue in its current format, further strengthening and growing the core areas of paint and blades, while continuing to recognise and utilise new technologies in order to improve efficiencies, and meet customer needs,” Paul adds. “Our new functions of training and industrial contracts have begun life well, and they will need support and nurturing to develop into mature revenue streams. Additionally, the imminent introduction of further certification and accreditations, including ELCAS, will help to secure the foundations for strong growth over the next three-to-five years. As the industry continues to evolve and change, so too must OPS, adapting and innovating to meet the challenges of the future head-on.”

Training has always been considered as a fundamental contributor to the success of the company, with its reputation for quality being in part, due to the skills and knowledge of its team

Offshore Painting Services (OPS) offshorepaintingservices.co.uk Services: Perilous painting, maintenance and training


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or more information please contact Austin Kennedy on 07831 471 005 or email austin.kennedy@xyleminc.com


Schofield Publishing Ltd 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 Editor Libbie Hammond libbie@schofieldpublishing.co.uk Managing Director Joe Woolsgrove jwoolsgrove@schofieldpublishing.co.uk

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