European Oil and Gas Issue 12 2013

oil&gas

issue TWELVE 2013

european

europeanoilandgas.co.uk f r o m e x p l o r a t i o n t o e n d u s e r

New

opportunities A thriving shale gas industry could create thousands of jobs

Save the data Engineering data management can improve operations Perfect planning Effective refinery planning is essential for operators

this ISSUE: Materials innovation

SOG_almaco_living_quarters_200x280mm.indd 1

6.5.2013 14.05

Editors Chairman Andrew Schofield Group Managing Director Mike Tulloch

Sales Director David Garner Corporate Advertising Sales David King dking@schofieldpublishing.co.uk Sales Finlay Johnson Head of Research Philip Monument Business Development Manager Mark Cawston Research Managers Natalie Martin Ben Richell Editorial Researchers Ed Hipperson Kieran Shukri Jeff Johnson ­Office Manager Tracy Chynoweth

© 2013 Schofield Publishing Limited all rights reserved 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 F: +44 (0) 1603 274131 schofield-media.com 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, 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.

Shale gas

, or unconventional gas, may be a relatively young industry in the UK, but it is one that we can’t help but hear about across the industry and in the media on a wider scale. However, rather than consider whether shale is good or bad for the UK, whether it will or won’t provide the resources that some experts predict, or if indeed it will change the landscape for myriad communities around the country, in this issue we discuss how the growth of the unconventional gas sector could stretch the energy skills pool.

We all know that for many, finding young skilled personnel is seen as the key challenge for the energy industry, but on page four Mike Thornhill of Spencer Ogden analyses whether shale could heighten the problem. “The best way to forecast how shale gas might affect our skill pools is to monitor local developments, planning regulations and test site successes, for example, and to look at existing markets, comparing our experiences with theirs,” he explains.

Of course, while our shale industry may still be somewhat embryonic this is a topic that is worth some consideration, and as Mike points out, if we do want to take this sector forward we need to start planning now, “we need to be prepared to meet the demands of fracking projects if they are given the go ahead. One of those demands will be for skilled and unskilled workers to man the supply chain. Once it is up and running shale gas may generate 74,000 jobs in the UK.” Whatever your thoughts on unconventionals, it’s a topic that we can’t shy away from.

editors Libbie Hammond & matt high

europeanoilandgas.co.uk

Art Editor Gérard Roadley-Battin Advertising Design Jenni Newman Production Manager Fleur Conway Production Administrator Vicky Howes

One of those demands will be for skilled and unskilled workers to man the supply chain. Once it is up and running shale gas may generate 74,000 jobs in the UK”

European oil & gas

Managing Editor Libbie Hammond libbie@schofieldpublishing.co.uk Editor Matt High mhigh@schofieldpublishing.co.uk Staff Writers Kirsty Birkett-Stubbs Jo Cooper Editorial Administrator Emma Harris

1

Regulars

4

A thriving shale gas industry could create thousands of new jobs

8

News

A look at some of the recent developments in the oil and gas industry

10

IT

Engineering data management can significantly improve E&P operations

12

Lead Feature

Mike Hawkins on his experiences of working in the oil and gas industry

16

Special feature - Refinery management

europeanoilandgas.co.uk

European oil & gas

Profiles

Lead Feature

18

20

22 Port of Fujairah Authority 26 A.Hak Drillcon 29 Cryo AB 32 Seven Seas Services 34 Amarinth 36 MMHE 39 Barge Master 42 Trelleborg Offshore & Construction

Examining why effective refinery planning is essential for operators

South Hook LNG Terminal Company Ltd Technology Phenolic composite insulation materials represent a new era in oil and gas

18

2

22

4

29 10

36

Contents

65

67 Xcite Energy Resources 70 AFI 72 Gas Compressors 75 Essar Oil

European oil & gas

44 EagleBurgmann Norway 47 VENKO Offshore 49 Thermtech 52 Gemini Corrosion Services 54 Providence Resources 57 Camcon Oil 59 Motherwell Bridge 62 Galp Energia 65 Gasunie

europeanoilandgas.co.uk

47

3

49

67

70

New

European oil & gas

europeanoilandgas.co.uk

opportunities

4

A thriving shale gas industry in the UK would create thousands of jobs but a major boom is unlikely, suggests Mike Thornhill

I

n recent years there’s been a lot of talk about trends in energy skills. In particular there have been concerns of a widening skills gap at middle-manager level in established markets including conventional oil and gas. Thankfully it is relatively easy to predict the development of mature sectors such as this, and with knowledge of how the markets are moving we are able to take pre-emptive action to plug any skills gaps that might develop. However shale gas, or unconventional gas, is a fledgling industry. It’s unpredictable and we have no true idea of how it will impact the UK. The best way to forecast how shale gas might affect our skill pools is to monitor local developments, planning regulations and test site successes, for example, and to look at existing markets, comparing our experiences with theirs.

Shale right now It’s hard to keep up with the volume of news published on the topic of shale; every day brings a new report or comment from an industry expert. The story is developing so fast that anything written here may very well be out of date by the time it is read.

In April we were inundated with stories about the Government incentivising those communities local to fracking projects. In May an industry round table involving the CEO of Spencer Ogden led to national controversy over flaring in Sussex, while in June the topic moved on to the feasibility of shale projects in the UK. Most recently The British Geological Survey (BGS) in association with DECC released its estimate of the resource of shale gas available in central Britain. The figure it proposed was 1329 trillion cubic feet (tcf), which given that the UK uses approximately three tcf per year would indicate that we have enough available to give value to shale projects. But what BGS stated, and what we’ve heard again and again, is that how much gas we can actually extract is hard to predict.

Planning for the future In order to predict the skills that will be required in the UK, we need to look at similar projects abroad. Yes shale is in an embryonic state here, but internationally fracking has been under way for a number of years, and we are in a very fortunate position in that we can actively learn from the triumphs and failures in other more mature markets. Two examples on either ends of the scale are the US and Poland.

The US is considered the great success story when it comes to shale gas, and it is to the US that other countries turn when considering their own shale prospects. In 2000 shale accounted for an insignificant 1.6 per cent of natural gas production in the country, but by 2010 that figure had grown to 23.1 per cent. As a result, the US shale industry now employs 600,000 workers. One of many reasons it was able to grow its shale projects so fast was its laws on

European oil & gas

europeanoilandgas.co.uk

Lead one

5

land ownership. Shale gas development in the United States has taken place primarily on private land. This has given companies a way to secure decent returns from early investments. Unfortunately for developers, in the UK the underlying rocks belong to the Crown Estate, which complicates matters.

Conversely, the Polish shale industry has all but been written off as a failure. Despite predictions that 500 wells would be drilled a year, since 2010 only 33 test wells have been drilled, and less than six of which have been horizontally fracked. Three years ago the story of Poland was similar to the UK, in 2011 it was estimated that there was reserves of 187 tcf of recoverable gas in the country, and plenty of rock available for fracking. Hopes were high and comparisons were drawn with the Marcellus Shale Project in

the US. Unfortunately concerns about taxation and licensing, alongside disappointing results from the first test fracks, soon placed the brakes on project development. In 2012, with projects looking less profitable Exxon pulled out of its investment. Since then others, most recently Talisman and Marathon Oil, have followed suit.

Poland demonstrates why we shouldn’t be getting ahead of ourselves in the UK; what was predicted to be a boom has turned out more of a rumble, and as a result companies and investors will now be more cautious before placing their money elsewhere. Even if we are successful, the rate of production is unlikely to have a large and immediate impact on our skills pool. Rather, drilling sites will develop slowly, picking up speed once we have confirmation that shale gas is a profitable and sustainable market.

Market regulation That word ‘profitable’ will be key. The more regulatory and legislative hoops that companies need to jump through before and during drilling, the more expensive it becomes for them. Projects then become less attractive and less lucrative, which dampens investment as we saw in Poland.

But this is something we already seem to be learning from. In June Minister of State for Business and Enterprise, Michael Fallon, announced new support for shale gas – tax breaks for exploration, simpler planning rules and new incentives for communities to back ‘fracking’ wells in their areas.

European oil & gas

europeanoilandgas.co.uk

Transferable skills

6

Though we continue to be uncertain about the future of shale gas in the UK, we need to be prepared to meet the demands of fracking projects if they are given the go ahead.

One of those demands will be for skilled and unskilled workers to man the supply chain. Once it is up and running shale gas may generate 74,000 jobs in the UK, but they won’t all be on rigs; we will need manufacturers to create the chemicals used in the fracking process, drivers to transport chemicals and other materials to and from sites and geological and engineering experts involved throughout.

So where will we find those 74,000 workers? They’re not yet present in the UK – not as existing shale experts, and we can’t gather them from abroad as shale is still a limited sector.

What we do have are thousands of skilled conventional oil and gas workers, particularly in the North Sea, though it is worth noting that there is already a recognised skills shortage in this area. PwC referred to an “emerging talent and recruitment crisis” in reference to Aberdeen, Europe’s oil and gas hub last year, while Subsea 7 has called the sector’s skills shortage, “genuinely worrying”.

Nonetheless, it seems certain that some of the talent drafted into the UK shale industry will come from the North Sea. Drilling operations there have produced thousands of workers with skills that can be transferred to shale projects, and the return to on-land projects will certainly prove attractive to some.

A number of offshore workers may also find themselves with the opportunity to return to dry land sooner than they think. In the North Sea larger companies have begun to decommission fields. Hess, for example, has already sold some fields and is in the process of pulling out of others.

For this, and other large organisations, the North Sea is less commercially viable than it once was (production is set to grow for another five years before beginning to decline); the fields are being bought up by smaller companies, which are less attractive as employers to the skilled workforce. For the workers on these rigs, a move into onshore fracking may seem wise move.

And the lucrative nature of shale – if that’s what it proves to be – may also prompt some ex-patriot citizens to return to the UK. But before either of these things happen, the industry must prove itself profitable and sustainable. Very

few workers will want to leave sunny climes for the UK if they also run the risk of losing their position within a few months.

Once the gathering of conventional oil and gas workers is underway, there will need to be training in order to complete the transference of skills. There are a number of techniques and methods used in fracking that are foreign to many oil and gas workers. For example conventional 3D seismic data has been used to estimate the saturation of gas hydrates for years, but within the shale industry the preferred technique for understanding subsurface variability is microseismic technology. The most obvious way to facilitate the transference of skills will be to bring in existing expertise from abroad. In the US, where the industry has been active and mature for a number of years, there are thousands of contractors that might be paid to come to the UK in order to train our local workforce.

The Government must also take a role, establishing

Lead one

European oil & gas

europeanoilandgas.co.uk

Once it is up and running shale gas may generate 74,000 jobs in the UK, but they won’t all be on rigs; we will need manufacturers to create the chemicals used in the fracking process, drivers to transport chemicals and other materials to and from sites and geological and engineering experts involved throughout

7

training programmes for workers new to the sector. Once the existing generation of workers has moved up and on, we will need a new talent available in order to avoid the skills gaps that have become so troublesome in industries such as mining.

Concluding a topic of this nature is no easy task. The success of the UK shale industry is dependent on many variables and we cannot know how fast it will grow, if it all.

We don’t even know how many companies will express an interest in undertaking initial drilling projects. There are 176 licenses for onshore oil and gas exploration issued in the UK but it is up to licensees to come forward with plans to explore shale’s potential. The best we can do is learn from existing markets, watch the outcomes of Caudrilla and IGas’ investigations, and prepare ourselves to meet skills needs as and when they arise. Thankfully the skill sets of conventional oil and gas workers are transferable, and of those, we have some of the best in the world.

Spencer Ogden Mike Thornhill is exploration and production manager - oil and gas, at Spencer Ogden, the global energy recruiter of choice.

By joining together the project lifecycles of the energy sector, it offers a 360 degree service to its energy clients. Since trading began in 2010 it has formed long-term client and candidate relationships built on trust and success. With vast knowledge and experience within each sector of the energy market, Spencer Ogden represents energy professionals at all levels. The company employs over 200 people across its London headquarters, Aberdeen, Glasgow, Houston, Singapore, Hong Kong, Cape Town, Calgary and Dubai offices working in oil & gas, renewables, power, smart, nuclear, energy trading, mining, technology and energy finance.

For further information please visit: spencer-ogden.com

Funding the future europeanoilandgas.co.uk

A total of £15,000 has been awarded to students in Scotland by the Society of Petroleum Engineers Aberdeen Section as part of its 2012-13 bursary programme.

The bursaries were given to 20 students from Aberdeen, Strathclyde, Robert Gordon, Dundee and

European oil & gas

Heriot Watt universities following

8

a rigorous application process. All students who received the awards are currently studying courses linked to the oil and gas industry including petroleum, chemical and mechanical engineering.

The bursary scheme was created

by SPE Aberdeen in line with one of its primary objectives – to provide an information channel and support to young people in schools and universities. The awards are presented to those who demonstrate strong technical knowledge and a drive to succeed both academically and in their future careers.

Anthony Onukwu, SPE Aberdeen chairman, said: “One of our key values as an organisation is to encourage a high standard of academic performance from students who are part of the SPE, and to support the industry in growing the workforce of tomorrow.

“In the past ten years, SPE Aberdeen has provided over £100,000 of support to students to help ease financial pressures and allow these individuals to reach their full potential.”

Above: (l to r) Emma Merchant and Colin Manson from Xodus, and Jon Rodd, Wayne Longstreet, Burnie Simpson and Peter Bradley from Prime

Prime objective

Xodus Group has acquired the business of Dubai based Prime Energy as part of a major expansion drive in the Eastern Hemisphere. This is the first acquisition Xodus has made in the Middle East following the launch of its Dubai operations in 2012.

Colin Manson, CEO of Xodus Group, said: “Prime Energy is a great fit for Xodus and with its focus on wells and drilling, it completes the Xodus offering. We now have the full complement of wells, subsurface and surface services to offer our Middle East clients.

“This is the first major acquisition as part of a significant international expansion drive. Our sights are set on expanding the business in the Middle East, Africa, India and Asia Pacific. Prime Energy has a strong focus in these areas, which will open the door to explore further opportunities in these regions.”

Prime Energy’s team will form part of Xodus’ subsidiary based in Dubai, Xodus DMCC, which will be renamed Xodus-Prime DMCC. Peter Bradley, director operations of Prime Energy, said: “Founded by a team with broad experience in the oil and gas services industry, Prime Energy has accomplished strong growth and is serving a global client base with a focus on East and West Africa, India and the Middle East. With our integration into Xodus we will be able to deliver to our clients the enhanced capabilities of the combined platforms.”

Optimum equipment Global supplier of fluid transfer systems, FES International has won a £2 million contract to supply BG Norway with six Automatic DBSCs. FES will supply an array of Automatic DBSCs to contractors NOV/Subsea 7 for a floating production, storage and offloading (FPSO) vessel operating in the Knarr field, in the Norwegian sector of the North Sea. The Automatic DBSCs are designed by FES International to enable quick, efficient and cost effective installation of riser and umbilical bend stiffeners in often congested or confined areas. The latching mechanisms on these DBSCs are fully ROV and diverless, offering safer and more reliable connections and have been designed to cope with extremely high loads. FES says this could save in the region of circa £300,000 to £400,000 on the cost of installation.

FES International will deliver the contract by the end of 2013 and FES International’s managing director Rob Anderson said: “This is a significant contract for us, Shell have fully approved our Automatic DBSC, which was developed in partnership with them, and now NOV/Subsea 7 have identified it as the optimum piece of equipment for use in the Knarr field.

“We’ve built a strong working relationship with NOV/Subsea 7 thanks to our track record of delivering innovative products or delivering successfully to stringent requirements.”

Continuing to grow Oil and gas operator GDF SUEZ E&P UK has announced a senior

Aubin has launched a new integrity management and subsea division in response to demand from the oil and gas industry. The division will provide groundbreaking solutions to urgent challenges facing operators of aging offshore infrastructure, both in the UKCS and internationally, as well as permanent fixes.

Aubin recently helped resolve one operator’s major integrity issue in the leg of a North Sea platform by adapting its patented L gel technology to create an internal pipework sealant on an asset in record time, enabling repair intervention following a serious breach in integrity.

Paddy Collins, CEO of Aubin, said: “Many of the assets in the North Sea were built to last 25 years and are still producing well beyond their original lifespans. This inevitably brings with it integrity issues. Our range of products can provide a quick temporary fix if there is a leak in flexible (and rigid) pipework by creating a seal around or within a breach.

“We have seen significant growth at Aubin through new projects and international expansion, and adding this new division was a natural step for us. We have long assisted many of our operators with integrity management solutions, and adding these new capabilities allows us to continue growing and reaching new markets.”

appointment in Aberdeen as the

Exciting developments

2013 and Cygnus, the largest gas

The North Caspian Operating Company (NCOC) has announced an important milestone in the development of the Kashagan field. On the occasion of RoK President Nursultan Nazarbayev and British Prime Minister David Cameron visiting the Kashagan project facilities, the NCSPSA Consortium celebrated the completion of the facilities required for initial production, marking the commencement of the start-up of the Kashagan production facilities.

Pierre Offant, managing director NCOC, added: “Preparations for start-up both onshore and offshore commenced in 2012 and progressed at a steady pace. Today we celebrate the completion of a very important milestone which we have been looking forward to: the commencement of the start-up of the production facilities, which means from today onward, the project facilities will become live in a staged process.”

Once all milestones have been completed successfully, the integrated system will receive the first oil and gas from some 4200 meters below the North Caspian Sea. This will be delivered by eight wells on the artificial A Island. The wells and the pipeline system are ready for production, whereas the offshore production and treatment facilities on D Island are in the final stages of commissioning.

company pursues an ambitious UK growth strategy. Rob Buchan takes up the role of Aberdeen general manager and will oversee the company’s developments and operations across the UK. He will also become part of the firm’s executive team.

His appointment comes as two major developments operated by GDF SUEZ E&P UK move towards production. The Juliet field in the Southern North Sea (SNS) is due to come on stream at the end of discovery in the SNS in the last 25 years, is scheduled to start producing in late 2015.

Rob has worked for GDF SUEZ E&P since 2008 when he joined as operations manager in Aberdeen. He moved to head office in Paris in 2009 where his most recent role was senior vice president operations for GDF SUEZ E&P International. He said: “GDF SUEZ E&P is at a very exciting stage of its growth in the UK and I look forward to returning to Aberdeen as we prepare for first gas from Juliet and progress construction for Cygnus while pursuing an active exploration and appraisal programme.”

European oil & gas

Age defying solutions

Above: Rob Buchan takes up the role of Aberdeen general manager

europeanoilandgas.co.uk

News

9

data European oil & gas

europeanoilandgas.co.uk

Save the

10

Fionnuala Cousins, Amor Group information management business analyst, discusses engineering data management in oil and gas

I

need a new window hinge. To cut a long story short, I broke mine. The casement is now sitting precariously in the opening in danger of falling into the room or outside, three stories down onto the cars below. I need to know the model of the hinge so I can order a new one. Or a detailed description so I can buy a similar replacement. But this isn’t exactly the part of the standard information handover when buying a new home.

The previous property owner wouldn’t have known because the builder wouldn’t have told them. The builder wouldn’t have known because the subcontractor wouldn’t have told them. The manufacturer knows, but I don’t know who they are, and they don’t know who I am. Most importantly, the manufacturer, subcontractor, builder and previous owner all got paid ages ago. So why should they care about me and my window now? The data exists somewhere but I can’t get to it. My heating bill is higher because I can’t properly close the window and an escape route in the event of fire is compromised. I am suffering from endemically poor data management (and poor judgement in high winds.)

Engineering data management is one of the most misunderstood aspects of safe and efficient operation in oil and gas. Disinterested project teams, seductive new technologies and frustrated operations staff have led to lots of pain points, lots of talk and lots of tools but not so much realised benefit.

The missing element is an appreciation that data relationships are just as important as the data itself. The snazzy fix I buy today isn’t worth the box it came in if I can’t link it to the snazzy fix I bought yesterday. And I wouldn’t need a fix at all if the overall system was designed properly in the first place.

High profit margins and design focused project teams overshadow the inefficiency in which we gather data for

operations. The people who actually operate and maintain plants are often the least likely to have any influence over what supporting information is gathered for their use. The project team is heavily reliant on design drawings, which means these are proactively managed. Associated data may be provided in notes on the drawing or in separate documents or application extracts, or not at all.

The Information Management discipline has visibility across both projects and operations so we can see the problems this causes. However, within Information Management, document management and data management have not developed as closely as they should have been.

Engineering Data Management Systems do not tend to have as rigorous document management capability as is required, and Document Management Systems have no Data Management functionality at all. International Standards have been developed for engineering data, but not for documents. To make it more difficult, staff tend to specialise in one or the other.

The end user doesn’t care if the answer comes from a database or a document, as long as it comes, and quickly.

With drawings, because so many originate in projects, they are assigned document numbers and you can find them using the number. Within the drawing different pieces of equipment are assigned tag numbers. But during the project it’s unlikely that anyone will need to find a drawing, but only have a tag number as a reference. Therefore, most projects do not bother investing in functionality that allows you to search for a drawing using a tag number.

Conversely, when the project has disbanded and operations are in charge, the actual equipment in-situ is just marked with is a tag number. At this stage it is likely that someone will need to find a drawing and have only a tag number to go on. We have put ourselves in a situation in which the

Amor Group Fionnuala Cousins is an information management business analyst at Amor Group - Energy Sector, which has over 20 years’ experience of delivering scalable IT managed services, information management, process control systems security, process safety management and application developments to clients in the global energy industry, operating from bases in Aberdeen, Houston and Dubai. Fionnuala is responsible for establishing and driving the Information Management (IM) Energy Forum, a collaborative project between Amor Group and the Robert Gordon University (Aberdeen), to facilitate knowledge sharing and service development in oil and gas information management.

For further information please visit: amorgroup.com

European oil & gas

most evident reference in the physical environment is not searchable in the information environment.

When you consider that a normal offshore platform might have 30,000 documents but 150,000 tagged items, each with 35 pieces of data recorded against them, the scale of the inefficiency becomes apparent. The delay this has caused over the years has certainly cost millions in down time.

However, we are now making progress in a number of ways. International standards exist, though are not yet comprehensive. Two way links between the document number and tag numbers are being retrofitted by operations.

We also recognise that there is value in both the data that describes a requirement, and the data that describes the item fulfilling this requirement. Historically, the latter overwrote the former and we ended up knowing what was in place, but not why it was in place.

We are encouraging operations to define their data requirements and to ensure subsequent projects meet this standard. We want to cascade this down the supply chain to make data capture efficient and easy for every organisation.

There are also services available in which a single data source for an entire industry is built so all you need do is provide a single pointer to that system.

New technologies are in the early stages of deployment, for example Google Streetview style image capture on offshore installations and 3D models are beginning to replace drawings as a means of communicating design in some instances.

The biggest challenge, however, is still the people.

Projects engineers are powerful; even if there is a contractual requirement for a third party to provide data, if they don’t recognise its necessity they can negotiate it away in favour of completing on time and in budget. Even when they keep to the data requirement they have a new and deeply uninteresting task of checking data quality. Unless the

projects team have felt the pain themselves of going from system to system, manually making the links between images and drawings and data, this is a difficult sell.

Where the sale has failed, operations feel the pain.

However, it may be just as challenging to really address the problems even at this point. It’s much easier to sell cool, cutting edge technology then it is the development plan thereafter. The outcome then can be hundreds of thousands of pounds of imaging data sitting on a network drive, out of date and isolated from engineering data. It might be exciting to look at a 3D image of a platform but no one’s job is purely to look at exciting things. More likely, after the initial excitement, I want to get on with the task in hand. I need the data on the valve in the picture but it turns out no one bothered to connect the two. So I close the picture and go back to the old way of doing things.

Fundamentally, it is necessary to build an understanding in the oil and gas industry that the data we record now is for the use of our colleagues in the future, and it is our professional duty to make it as easy as possible for them.

It is not a particularly challenging requirement. All the data already exists somewhere. We need to be smart about where. We also need to recognise that engineering data projects should be approached with all the rigour of any proposed business project, with real attention given to what requirements will be met, and how.

Back to me and my window. Were we practicing good engineering data management, there would have been a standard clause in each contract in the supply chain; data would be supplied according to the specification in International Standard XYZ. As the operator of this property, I would be provided with the designs and the data, linked.

I would be able to reach the data via the design and the design via the data. The data would describe not only the hinge in place but also the functional requirements that led to the selection of that particular hinge. I would skip down to B&Q and, if the exact hinge wasn’t there, I would have the information which allowed me to pick an alternative. Sorted.

I could move on to breaking the next thing confident that the strength of my data will see me through.

europeanoilandgas.co.uk

IT

11

Valuable

European oil & gas

europeanoilandgas.co.uk

Mike Hawkins of Jee Ltd discusses his experiences of working at a successful business in the oil and gas industry

12

Below Mike Hawkins, technical director of Jee Ltd

T

his year, Jee Ltd celebrates its 25th anniversary. From its beginnings as a one-person consultancy, the company has grown to become a leading independent multi-discipline subsea engineering and training firm, with a team of 90 and three offices located around the UK. Jee was founded by Trevor Jee in 1988 and Mike Hawkins joined as the first full-time staff member soon after. He has been with Jee for more than 20 years and has witnessed the company’s phenomenal growth first-hand. Now working as Jee’s technical director, Mike shares his thoughts on his time with the company and his experiences of working in the oil and gas sector.

Q

What brought you into the oil and gas industry?

My involvement is due largely to my family – my father was a mechanical engineer in the oil industry and I wanted to follow a similar career path. The North Sea was relatively young when I started out and it was an exciting time to join the sector. I knew it would be a stimulating career that could teach me a lot and provide new experiences.

As I have progressed within the oil and gas industry, I have seen many advancements and my position at Jee has allowed me to be involved with large changes within the industry, as well as the company.

European oil & gas

europeanoilandgas.co.uk

Lead two

13

Q

How did you get started at Jee Ltd? I had an existing relationship with Trevor from the early days working together at BP. When Trevor founded Jee, the staff comprised just himself and a secretary. On his request, I began doing some freelance consulting for the company and, as the workload continued to grow, Trevor reached the point where he wanted to take on full-time staff.

At the time I was working for a large company and going from that to a smaller business was a challenge, but it also provided an exciting opportunity to help actively grow the company through an organic growth strategy.

One of the most rewarding aspects of working at Jee has been watching the company evolve. I have seen many developments in my time here, and look forward to seeing

how we can continue progressing to remain a company of choice for the subsea industry.

Q

How have you seen the oil and gas industry develop during your 20 years in the workforce?

From legislation reform to technological innovation, I have seen the industry transform tremendously in the past two decades.

Charting advancements in the sector, Jee has adapted with costeffective and integrated engineering solutions, and has grown its offerings to stay in step with the ever-changing industry.

Within Jee, we have transformed from a small consultancy to a full-service company fulfilling large contracts for international clients. Not only has the company added a

European oil & gas

europeanoilandgas.co.uk

range of additional services and capabilities during my time here, but also I have seen our roster of clients grow as Jee became recognised for its technical excellence and commitment to service.

In the beginning, the company worked exclusively on pipeline technology. We were able to specialise in a niche market and could undertake highly technical studies or pieces of work, but such specialisation inevitably limited the size of the company. The decision to move from being purely a pipeline company was one made quite deliberately, as it enabled the business to continue to grow by fulfilling the needs of our customers and provide whole life of field engineering to their projects. By expanding our staff and introducing new expertise in structures, controls, materials, installation, decommissioning and renewables, we have allowed Jee to not only grow, but also to thrive.

14

Q

What have been some milestones of your time within the industry?

One of the biggest achievements during my time at Jee is also a milestone of the oil and gas industry as a whole. In one of my early pieces of work with the company, I assisted in convening a joint industry project (JIP) on pipeline trenching in connection with the British government.

In 1995, Jee managed the Trenching Guidelines Joint Industry Project, which accomplished a change in design philosophy for small diameter pipelines. For nearly two years, we managed this project, which involved collaboration from more than 20 companies within the industry, to develop design methodologies and data to enable operators to install pipelines without trenching.

The JIP provided influential change for the industry and proved financially successful. The resulting government guideline was especially significant in certain locations around the North Sea and West of Shetland, saving considerable installation costs for operators.

Internally, one of Jee’s major milestones was introducing a management team and board of directors within the company.

Ten years ago, Jee’s workforce was primarily composed of engineers. We realised that to take the company further, we needed to have a team who could manage technical contracts, as well as a board who could decide company strategy.

By adding both of these, we moved from a small group of consultants doing engineering studies to a fully-fledged engineering company able to complete major projects.

Q

How can oil and gas companies such as Jee ensure they continue to grow and thrive in the industry?

I think innovation is the most important aspect of this industry. Companies have to be able to adapt and encourage their staff members to examine novel approaches and devise new solutions, rather than remain stagnant with existing policies.

At Jee, we are identifying new skills that we want to develop within the company to broaden our range of integrated engineering capabilities. We are currently looking

to further expand our expertise in flow assurance capabilities, increased materials capabilities and structural design. We have recently completed a large renewables project and will use the experience gained from this to continue expanding our focus in the field.

Employing openness to change and modernisation is what has helped Jee achieve its lasting longevity and will be necessary for all companies working in the oil and gas industry.

Q

What developments do you expect to see within Jee in the next five years?

Jee is currently focusing on an aggressive growth strategy, aiming to increase our workforce from 90 to 150 in the next four years. This year, we opened an office in central London to attract new staff as well as give a more localised service to our clients in the area. We have already seen staff numbers there grow exponentially and we anticipate seeing this continue. We are also moving our Aberdeen office to a location double its size to accommodate growing client requirements.

Though not currently under development, but certainly within the longer term, it is inevitable that we will open an office in the US. We still have plenty of scope for growth within the UK sector at the moment but in the future

we will be looking to expand overseas and America is a natural choice.

Our focus on expansion is also seen in our engineering courses. Jee offers a wide variety of courses that are continually adapted to the changing industry. Similar to our engineering capabilities, we add new course subjects as the industry demands. Currently, we are developing new courses in the renewables area as we advance our skills in that field.

Our portfolio will continue to evolve as the company grows and furthers its range of expertise.

Q

What developments do you expect to see in the coming years for European oil and gas?

The European offshore oil and gas industry is now mature, which brings very specific issues and drivers. Cost-effective safe operation of aging assets, extension of the life of assets beyond original design life, reduction of the cost of new developments and efficient decommissioning of infrastructure will be brought to the forefront. Operators will have to put organised plans in place to effectively deal with these initiatives.

Lifetime extension (LTE) will continue to become more prevalent in the industry in the coming years to enable safe operation of existing assets and infrastructure beyond its

original design intent. At Jee, we are working consistently on LTE projects and have contributed to the authorship of ISO 12747, an internationally recognised code addressing LTE for rigid metallic pipelines.

The industry will also be driven towards low-cost options for development of subsea tie-backs to maximise viable production from depleting fields. Alternative novel techniques for pipeline installation could become extremely valuable if savings over conventional installation methods can be proven.

The engineers and staff at Jee will keep a close eye on this and other industry advancements to remain at the forefront of technology and practice, and to ensure we continually deliver optimal service to our current and future clients.

Jee Ltd Jee Ltd is a leading independent multi-discipline subsea engineering and training company, focussing on the oil, gas and renewables industries. The company employs a high ratio of chartered engineers to graduates and continues to grow as a centre of excellence. Its projects range from integrity management to decommissioning and analysis.

For further information please visit: jee.co.uk

European oil & gas

One of the biggest achievements during my time at Jee is also a milestone of the oil and gas industry as a whole. In one of my early pieces of work with the company, I assisted in convening a joint industry project (JIP) on pipeline trenching in connection with the British government

europeanoilandgas.co.uk

Lead two

15

plans Perfect

European oil & gas

europeanoilandgas.co.uk

Eric Petela on achieving a step-change in refinery planning

16

H

arsh economic realities are making commercial objectives difficult to achieve for refiners worldwide. Refineries are becoming more heavily integrated into the global supply chain and there is the need to be more responsive to pricing fluctuations and changing demand in the market place. Most refineries are struggling to achieve profit levels witnessed prior to the global recession as they try to place their products into, what is for many a shrinking marketplace.

Effective refinery planning is the foundation for refinery profitability. Every day, decisions are made that will affect the financial performance of the operation. Investment in leading-edge software can play a significant role in helping planners make the right economic decisions and maximise refinery margins.

Changing landscape Before the economic downturn, a typical refinery’s principal goal was to maximise throughput in the safe knowledge that the company’s trading organisation would be able to profitably place the products into the market. The situation for many has radically shifted. Downward pressures on refining margins have led to a more dynamic planning environment as refiners are forced to look at a range of options in a bid to become more profitable. For example, many refiners have considered a much wider array of crude oil feedstocks than ever before in order to find the elusive optimum slate that will yield the highest margins.

In this new environment, streamlining the operational process has become increasingly important as a means of helping drive profitability. The key here is to find

solutions that free up time for the planners to experiment with new ideas and to drive innovation. If planners can look at alternatives they can make more money and drive additional profit for the plant. So, software solutions need to help refineries to increase the time that they can spend on exploring those new ideas and testing them to drive enhanced profits. In terms of economic modeling, planners will spend time looking at what crudes to purchase at the front end and assess the most economical way to produce feedstock and turn them into profitable products.

Driving better decisions In developing solutions, refiners need to be aware of the challenging, yet pivotal role played by refinery planners individuals who typically have to make a raft of difficult decisions in tight timeframes. Important decisions are sometimes made without much detailed information because it is difficult to anticipate problems or disruptions to supply, and predict prevailing market conditions that are likely to occur three to six months ahead and beyond.

Planners typically have a lot of responsibility, albeit that they often work in isolation or small groups and without much assistance.

In many refineries, there is just one planner based on site and sometimes several at corporate headquarters. Adding further to their pressures, planners also need to continuously report to senior management in a timely manner how operations are proceeding on a daily basis while making assessments about which trading areas are likely to be most commercially advantageous in the near future. Critically too, planners have to keep three distinct groups happy; management, who principally want to ensure that the plant

How leading-edge software can help Successful planning requires the integration of proven technologies with industry best practices to deliver the highest value. The approach needs to drive the efficiency of the hard-pressed refinery planner while also driving the efficiency and ultimately profitability. State-of-the-art planning software, such as Aspen PIMS, is able to harness vast data quantities - the thousands and thousands of numbers that production planning and processing solutions generate. By also turning these data into pictures, planners can assimilate all the important information and evaluate multiple scenarios quickly. This software capability is essential to making the difficult job of the planner easier to perform effectively, while also driving the efficiency of the refinery itself.

The majority of the world’s refining operations are planned with Aspen PIMS, making it the industry-leading production planning and optimisation product. New, powerful analytics in PIMS yield faster and better evaluation of crudes available in the open market as crude cost is the major expense for all refineries the ability to determine crude choices quickly and accurately supports the planning process and enhances refinery profitability. Aspen PIMS Platinum, recently launched by AspenTech, is a significant enhancement to the PIMS family and provides a new experience for the user. The post solution analysis capability has been significantly enhanced with a new set of features including 2-d and 3-d graphs. The key to PIMS Platinum is that the software product enables planners to better understand the options quickly and ensure the best choice can be made. This powerful tool is the perfect workhorse to evaluate all the options and make the best economic decisions for business.

Paul Gallagher, refinery planning manager, Samsung Engineering recently commented “Aspen PIMS Platinum is the way that planners can make decisions, making it faster and easier. The post solution analysis capability has been significantly enhanced with this new set of features, including 2-d and 3-d graphs. Seeing the LP solution space visually is a sea-change in planning analysis and should result in better plans and greater profitability.”

Bottom line results Every refinery has seen the dynamics of their business change significantly due to the economic downturn.

Understanding where opportunities exist is paramount for making sound, swift business decisions. Getting the refinery production strategy right is of great importance to ensure profitability. Through leading-edge planning software, refiners can rapidly respond to changing market conditions or upsets in their operations. With powerful tools, such as Aspen PIMS Platinum, planners will make crucial and timely decisions that drive powerful results.

AspenTech Eric Petela is director, business consulting at AspenTech, a leading supplier of software that optimises process manufacturing for energy, chemicals, pharmaceuticals, engineering and construction, and other industries that manufacture and produce products from a chemical process.

With integrated aspenONE solutions, process manufacturers can implement best practices for optimising their engineering, manufacturing and supply chain operations.

As a result, AspenTech customers are better able to increase capacity, improve margins, reduce costs and become more energy efficient.

For further information please visit: aspentech.com

europeanoilandgas.co.uk

is running efficiently and profitably; operations teams whose overriding concern is safety and compliance; commercial teams who are fundamentally focused on driving profit. The intensity of work, the constant need to create, publish and share plans, creates its own challenges and means there is little time to explore alternative approaches or devise new innovative techniques and methodologies.

The main purpose of the refinery planner, however, is to apply effective processes to develop the monthly refinery operating plans. By selecting and acquiring the best value crude the planner can help to maximise operating margins and maintain a robust supply chain. In view of the dynamic nature of oil markets, it is vital to be continually aware of supply demand balances and capitalise on opportunities. Speed is becoming critically important as speed of response can make the difference between a profitable trade happening or not.

- Refinery management

European oil & gas

Special feature

17

important

European oil & gas

europeanoilandgas.co.uk

Strategically

18

Groundbreaking in terms of its size Below Yasser S. Al Jaidah, Director and General Manager of South Hook LNG Terminal Company

and strategic importance, the South Hook LNG Terminal is one of Europe’s largest liquefied natural gas (LNG) re-gasification terminals.

Fully commissioned in 2010, it has the capacity to process 15.6 million tonnes of LNG annually, representing up to 20 per cent of the UK’s natural gas demand. Based in the deep water port of Milford Haven, Pembrokeshire, Wales, the Terminal offers easy access for large LNG carriers and reduced transportation costs due to its location on the UK’s west coast.

Three of the world’s most experienced energy companies came together in this visionary project as part of a joint venture. The shareholders of South Hook LNG Terminal are affiliates of Qatar Petroleum International, with a 67.5 per cent share, ExxonMobil, with 24.15 per cent, and Total, with 8.35 per cent. “A clear accomplishment of the Terminal is that, since we began First Phase operations in 2009, we have safely received 300 LNG shipments at the Terminal, which is an achievement we are very proud of,” says Yasser S. Al Jaidah, who became General Manager of the South Hook LNG Terminal in August 2012.

Appointed to the head position by shareholders due to his previous experience and involvement in major international projects in the oil and gas industry, Yasser was the Inlet Facilities Project Lead for the RasGas Expansion Phase Two Project and also held the position of Project Execution Engineer in Houston for

ExxonMobil. “I have worked on four continents and held senior positions in a number of areas, most recently as General Manager of the RasGas Korea Liaison Office,” said Yasser.

Keen to bring his expertise and enthusiasm to the Terminal, Yasser already has a clear vision on how he can continue taking the business forward: “I am committed to making sure the company’s highest regard for operational safety standards are upheld and to build on South Hook LNG’s reputation for safety, reliability and security. I will also work actively to safeguard the company’s legacy to the local community and the environment in which we operate. Our greatest asset as a company is our people. Key to my leadership will be their continued development.”

Over the last few years there has been a decline in UK Continental Shelf gas reserves, raising the importance for the UK to gain more diverse and secure supplies of energy. South Hook Gas Company Limited, a separate entity in the UK, is responsible for LNG imports, the Terminal’s capacity and commercial arrangements, and is helping to improve energy security and diversity by signing agreements with companies such as ConocoPhillips, Total and Chevron to enable them to potentially bring in more cargoes of LNG via the South Hook LNG Terminal. South Hook Gas’ core business though is to import LNG from Qatar and sell natural gas to ExxonMobil Gas Marketing Europe Ltd. As Qatar’s first involvement in a foreign

PROFILE

South Hook LNG Terminal Company

capacity adjacent to the existing Terminal. The shareholders are Qatar Petroleum International Ltd., ExxonMobil Power Ltd. and Total Gas and Power Business Services S.A.S. The CHP facility would provide electricity to the existing Terminal and the balance would be exported off-site. The proposed plant, for which an application for development consent has been submitted, will have the capacity to meet the electricity needs of 900,000 homes and will significantly lower the gas use and emissions of the LNG Terminal by providing heat that can be used for LNG regasification. “The South Hook CHP project is being considered by our shareholders. Although a separate entity from South Hook LNG Terminal Company Ltd, we are keen to share our values and high standards with this potential new development and are working closely with the South Hook CHP team as they progress the consultation and consenting process,” says Yasser.

Proud of the high standards maintained and the transparency of its operations, Yasser is optimistic about the future of the company and what it can continue to offer to the country. “LNG continues to offer strong benefits to the UK; it improves our security in energy supplies and reduces carbon emissions. The Terminal holds a significant role, not just by being part of the UK’s energy infrastructure, but also by strengthening the strategic relationship between the UK and Qatar.

We are incredibly proud to be part of this venture and remain committed to the safe and reliable operation of the Terminal,” he concludes.

European oil & gas

downstream terminal, South Hook LNG Terminal is proud to be one of the major contributors to the diversity of UK energy. The supply chain starts 3500 miles away in Qatar’s North Field gas reserves in the Arabian Gulf, the single largest non-associated gas reservoir in the world, with an estimated 900 trillion cubic feet of proven reserves. The natural gas is then piped from the gas fields to a processing plant in Ras Laffan Industrial City where it is processed and liquefied through cooling. The liquefied natural gas is stored at sub-zero temperatures in insulated storage tanks before being transported by sea. The state-of-the-art double-hulled ships are designed specifically to accommodate the low temperatures of LNG and the cargo requires no pressurisation or refrigeration throughout the voyage to maintain it in a liquid state.

Once at South Hook LNG Terminal, the cargo is pumped ashore into double-walled, insulated non-pressurised tanks that act similarly to large thermos flasks. When natural gas is required, the LNG is warmed until it reverts to its gaseous state and enters the National Transmission System, reaching homes and industries across the UK. South Hook LNG Terminal cost $1.7 billion to build, demonstrating the long-term commitment of its shareholders to the UK market. “As one of the largest LNG facilities in Europe, the safe, successful and reliable regasification of natural gas is our main objective,” says Yasser.

Yasser welcomes the proposed development of a high efficiency, low-carbon combined heat and power (CHP) plant of up to 500 MW

europeanoilandgas.co.uk

As one of the largest LNG facilities in Europe, the safe, successful and reliable regasification of natural gas is our main objective”

19

South Hook LNG Terminal Company Ltd southhooklng.com

Services LNG Terminal operator

europeanoilandgas.co.uk

European oil & gas

Material Andrew Bennion looks at how the development of phenolic composite insulation materials is unlocking a new era in oil and gas

I

nnovative subsea structure technology is key to the future of oil and gas, where challenging extremes of temperature and pressure are becoming unavoidable problems faced by operators in new developments in the more remote areas of subsea topography.

It is no surprise pipework in these sometimes unpredictable deepwater environments will depend upon a resilient insulation material that can cope with these extremes.

20

Go with the flow

Below Andrew Bennion, managing director of Advanced Insulation plc

Thermal insulation is an integral part of the design of many offshore systems, especially in deep waters. This is because effective insulation of subsea structures helps maintain flow rates, optimise productivity and reduce processing costs.

More specifically, subsea thermal insulation materials are critical to guard against the build-up of waxes and hydrate crystals in the reservoir fluids, which can occur when the wells are shut in and the hot fluid hydrocarbon is cooled by the low seawater temperature at the seabed.

Unchecked, these deposits can quickly build up and cause loss of flow or even a blockage. Downtime means a loss of revenue, and blockages are expensive to rectify, representing a loss on a considerable investment. The greater the depth, the more expensive the intervention.

Different materials Subsea pipelines and equipment need insulation to assist flow assurance from quite low temperatures so productivity can be increased. But there is only one known material capable of withstanding the heat and pressure in deepwater environments in excess of 3000 metres and at temperatures of as much as 185°C. Traditionally, the industry relied upon technologies such as Polyurethane materials. These were applied by ‘pump-inplace’ methods and were limited to around 120°C operating temperatures. Furthermore, field experience has shown that Polyurethane can fail at temperatures as low as 85°C when exposed to heat in a seawater environment. Hydrolysis can take place causing catastrophic failure.

Another limitation of both Polyurethane and its alternative, the Epoxy-resin based material, is that these materials shrink on curing, requiring attention at application stage, but also causing stress loading and risk of joint failure.

So what alternatives are there to overcome these risks?

Both Polypropylene and natural rubber can also be used, but the former is limited to 140°C and can only be applied in the factory rather than on location, which significantly inhibits its usefulness in practical applications. The latter, meanwhile, requires vulcanisation at a special facility, which also limits practicality when applying.

Technology

The C55 composite syntactic foam layer sits under multiple glass fibre layers impregnated with phenolic resin to form a tough outer skin of nominal 4mm thickness.

There are several ContraTherm material grades individually developed for differing water depth requirements. Some of the latest offshore operations in locations such as West Africa or Brazil are taking place at depths of up to 3000 metres beneath the sea, where equipment must withstand temperature ranges of -50°C to 185°C, and cope with pressures of up to 300Bar. Physical tests on both dry and saturated material simulate accelerated ageing, which have shown that insulation materials can maintain their performance characteristics until the end of the field life.

For example, among our many tests, we use thermal shock tests in which hot oil at 121°C is introduced into the inside of a pipe as rapidly as possible then allowed to cool. Even when repeated five times, this test found no cracking, delamination of disbondment either between the ContraTherm layers or between the ContraTherm substrate.

Fire proofing Phenomenal phenolics This phenolic material has already been used to manufacture insulation products that have been proven in action in oil and gas developments around the world. The unique thermal insulation properties of the products, such as our ContraTherm® C55 on subsea pipelines and equipment, have generated repeat client demand and led to substantial business growth for AI. In anticipation of future oilfield developments, testing has even been carried out to temperatures up to 200°C.

Heat proofing foam Syntactic foams have been used in the offshore industry for more than 30 years because they have low thermal conductivity and maintain a robust mechanical structure.

Even the most advanced materials, such as a multi-layer syntactic phenolic composite system, have properties that can be tailored to meet specific project requirements.

The future of oil and gas exploration will depend on cutting-edge research and development into the advancement of materials. The material evaluation process is split into two main categories, material definition and full scale performance testing. Our own ContraTherm has been developed thanks to continuing research and development within our laboratories and through qualification programmes sometimes involving third party facilities. In developing the materials, a constant focus was maintained on the critical parameters required of high temperature and high pressure insulation materials.

In topside asset protection, elevated production temperatures at the wellhead translate to increased processing equipment operating temperatures, and coupled with moves to more and more hostile production theatres there are again few alternatives to phenolic-based fire protective coatings.

For instance, in places such as Kazakhstan the environmental temperature can vary from -50° to +50°C over the year and combined with elevated operating temperature of around 150°C this presents a considerable material selection challenge to the fire protection engineer.

With offshore oil and gas exploration beset by increasingly harsher environments and long distance deepwater gas transportation becoming an ever pervasive challenge, the age of easy oil seems to be drawing to a close. A relatively ancient material has found a new lease of life. Indeed the future of oil and gas exploration looks like it will depend on it.

Advanced Insulation plc Andrew Bennion is managing director of Advanced Insulation plc, a company that specialises in the manufacture and application of unique syntactic phenolic resin based foam insulation and fire protection systems. Advanced Insulation is a single source supplier for insulation and fire protection systems to the oil and gas industry and represents one of the most respected and progressive names in topside and subsea insulation worldwide.

For further information please visit: aisplc.com

European oil & gas

A team of materials scientists at AI’s Research and Development facility in Gloucestershire has found a way to unlock the new boom in oil and gas in remote areas using phenolic composites – one of the oldest types of plastic known to man.

Such deep drilling requires a composite that can control flow of fluids at a stable temperature, and at these extremes there is no more resilient insulation material than a phenolic composite. In fact, we believe that this relatively ancient material is the key to many of the world’s most recent oilfields, and surprisingly it is a close relative to Bakelite, a plastic that dates back over 100 years.

It is now critical for operators developing subsea oil and gas fields to transport unprocessed hydrocarbons, usually at high pressure and high temperature, over longer and longer distances on the surface of the ocean floor.

If the structure isn’t sufficiently insulated the hydrocarbons will cool, leading to the aforementioned blockages and the risks and costs associated with them. The hydrostatic pressure capability of a resin-based phenolic composite allows safe flow in ever more inhospitable and extreme environments.

europeanoilandgas.co.uk

Deepwater performance

21

hub

European oil & gas

europeanoilandgas.co.uk

An important

22

The Port of Fujairah

is the only multi-purpose port on the eastern seaboard of the United Arab Emirates (UAE). Located approximately 70 nautical miles from the Straits of Hormuz, the Port is positioned at the crossroads of shipping lines between east and west making it one of the Emirate’s most vital facilities, as well as an important hub for the market activities of the Indian sub-continent and East Africa.

Construction of the port initially began in 1978 as part of the economic development of the UAE, with full operations beginning in 1983, giving it a long heritage in port and terminal operations. Since then the Port has embarked on a continuous process of enhancement to both its facilities, and comprehensive range of services.

These include handling of general cargo, bulk cargo, wet bulk cargo, container activity, and facilities for small supply craft users and agents.

The Port benefits from a draft of 15-metres and 1.4 kilometre long main quay. It has a number of different berths for container, general, and bulk cargo, and two oil terminals commissioned in 2006 and 2010 respectively. Oil Terminal 1 is home to three berths with the ability to accommodate tankers of up to 110,000 tonnes, whilst Oil Terminal 2 has four berths and a draft of 18-metres allowing larger vessels to call.

Container operations at the port began in 1982, since which time it has built up a long expertise in road relay, consolidation and

deconsolidation, sea/air cargo, and transhipment services. The Port’s alliance with DP World as the concessionaries for container cargo has also strengthened its position amongst the global network of container ports.

In terms of more general cargo, the Port also handles a significant proportion of the steel billets, steel bars, copper concentrate, chrome ore, iron ore, coal, bagged aluminium hydroxide, and industrial salt which moves to and from the UAE, GCC countries and beyond. A major proportion of project cargo associated with the UAE Federal Qidfa Desalination plant was handled successfully through the Port.

As well as a paved storage area of 500,000 square metres which can accommodate general and project cargo, cars, and containers, the Port has additional compacted land of approximately 150,000 square metres available for temporary pre-shipment or post-shipment storage.

Also present at the port is Fujairah Anchorage, which offers an efficient and varied one-stop-

shop service for up to 100 vessels at any time.

Calling vessels can secure bunkering, ship supply, ship repair, spare parts, and inspection services, as well as crew changes to and from anchorage.

In order to keep accommodating the growing, and diverse, volumes that look to take advantage of its attractive location, the Port of Fujairah has long subscribed to a strategy of investment. It is not only the Authority itself though that sees the benefit of this approach, private external companies also fund developments within the port and surrounding area.

One notable project has been the completion of the Abu Dhabi Crude Oil Pipeline (ADCOP), which will carry between one and 1.5 million b/d per day via a 360-kilometre pipeline. This feeds into 12 million bbl of storage capacity, and then onto export through three subsea pipelines and three single point mooring buoys for deep water loading.

Another recent development is the UAE Federal Grain Reserve, which in its first phase contains 250,000 tonnes of grain silo storage, conveyors, and load and discharge arms. Plans are already in place for a second phase of development that will see this capacity increased

europeanoilandgas.co.uk

Port of Fujairah Authority

The Port benefits from a draft of 15-metres and 1.4 kilometre long main quay. It has a number of different berths for container, general, and bulk cargo, and two oil terminals commissioned in 2006 and 2010 respectively

European oil & gas

PROFILE

23

24 European oil & gas

europeanoilandgas.co.uk

With additional berths also scheduled for delivery, and projects like the ADCOP come to fruition, oil is clearly a target market for the port when it comes to making the best use of its position. Also in the pipeline is the new Fujairah Refinery, which is expected to become operational around the end of 2016.

It is designed initially to produce 200,000 b/d per day, primarily using feedstock from the ADCOP, but can also import different grades of crude through the port. Planning has not only focused on the facility itself, but also the services required around it, particularly if products are to be exported.

Even those sub-trends such as LNG, which the Port may not be able to cater for directly through its berth and storage structure, are still being fulfilled in the area as a result of private investment. At present a separate LNG facility to the north of the port is being developed by Mubadalla and IPIC, and as for all commercial activity in Fujairah waters the Port will supply the necessary marine services.

Whilst the Port of Fujairah clearly has a lot to offer its customer base, its success is not only down to its favourable location. From the very beginning the port has grown alongside its market, enhancing and adding new capabilities to mirror the requirements it sees. By having a structure that allows for this evolution, and the determination to succeed, the port has become a strong marine logistics hub. Although the acceleration of investment has seen it become an increasingly internationally important oil centre, the Port is not focusing on growth in one area through the sacrifice of others. As such, it continues to build on both its oil-based and non-oil activities to ensure an enduring high level of service.

Archipelago Middle East Shipping LLC Archipelago Middle East Shipping LLC (AMES) is well aware of the role of a Port Authority to be of assistance in shaping the broadness of business functionality of its partner operators. AMES’ strong local relationship with Port Of Fujairah (POF), and POF’s continuing process of enhancing their facilities and comprehensive range of functions, widely helps us to provide pure and complete ship agency services to vessel owners, charterers and managers. POF’s up-to-date shipping information enables us to extend high quality service to the clients attuned to the reality in which we work.

Port of Fujairah Authority fujairahport.ae

Services Multi-purpose port

europeanoilandgas.co.uk

to 750,000 tonnes.

Earlier this year a new observation tower was inaugurated at the port in the midst of Fujairah Bunkering Week 2013. Fifty-three metres in height, the tower is shaped like the letter F of the Port of Fujairah logo and equipped with radars, navigation systems, and a state-of-the-art system for calling vessels. It was constructed as part of an ongoing programme to enhance the port and increase its capacity to accommodate more inbound and outbound operations.

The tower will also help the Port of Fujairah to offer customer service that is on par with international standards.

Furthermore the port has installed eight Tideland SB-285P lateral mark buoys north of the port to mark a new passage where the Port Authority provides services for the ADCOP. The buoys are equipped with SolaNOVA-65 selfcontained LED lanterns, the first to be supplied in the Middle East, and AIS AtoN systems to communicate with vessels in the vicinity. This equipment transmits a range of information such as its position to vessels approaching the port, and sends a remote monitoring signal back to base. These are picked up and routed through to the AIS display system situated in the newlybuilt observation tower.

Elsewhere, private companies are continuing with the construction of additional tank storage to cater for trading and bunkering activity, and new terminal facilities. This is a particular point of focus for the Port which aims to raise capacity from around six million cubic metres to ten million by 2014. This is in response to booming demand from the Middle East and Asia, which could see the Port of Fujairah rival the world’s top bunkering hubs.

Port of Fujairah Authority

European oil & gas

PROFILE

25

europeanoilandgas.co.uk

European oil & gas

26

company A family

A.Hak Drillcon BV is a specialist in horizontal directional drilling (HDD) crossings, direct pipe drilling methods, micro tunnelling, and auger drilling. Typical applications for A.Hak Drillcon’s services include pipelines for gas transmission, kerosene and oil transportation, fresh and wastewater, telecommunications connections, heat transport systems, landfalls, culverts, inverted siphons, drainage systems, and low-, middle- and high-tension connections. The company is focused on providing a full service to its clients, which means as well as maintaining its own engineering department, A.Hak Drillcon also operates its own fleet of in-use designed rigs. These vary in terms of size and application,

from the three-tonne HDD mini drill rig up to the 500 tonne HDD mega drill rig, allowing A.Hak Drillcon to execute a wide scope of projects whether large or small.

Ronald van Krieken, managing director of A.Hak Drillcon, highlighted that the 500 tonne rig mentioned above is a very new investment, which was only delivered at the end of June 2013: “This is our newest HDD rig end and it is one of the largest rigs in the world,” he said. “In addition last year we made an acquisition and invested in five other new rigs, this time of 400 tonne pull back force.”

He continued: “It is one of our unique selling points that we have a lot of HDD rigs, and

thanks to our history in this industry we also have a team of very experienced and skilled people to operate them. Many of our employees have over 15 years experience in HDD and this gives us a big advantage, especially on contracts for difficult and large crossings. So for example, we worked on a job in Columbia a few months ago, where we created a very large crossing of 1500 metres for a 42-inch gas pipe in very difficult soil conditions, on budget and on time.

After finishing that job our client give us several other jobs to do in Columbia, and in fact we still are drilling over there now.”

This sort of large project is where A.Hak Drillcon can really shine and in May 2013 it

started another significant project, this time working with A.Hak Leidingbouw, building a 60-kilometre high-pressure transport pipeline.

Said Ronald: “This is in the north west part of Holland, close to the city of Amsterdam so comes with a lot of infrastructure challenges.

We have to make 12 HDD crossings with drilling lengths of about 800 metres to 1250 metres. The first crossing on that project has been completed, and that was the largest one, of 1250 metres from Amsterdam harbour to the North Sea.” Ronald was also keen to highlight a very special design and construct project for A.Hak Drillcon, which is called the Shore Approach, also located in the north west of Holland. “This is a unique contract so we are responsible for the engineering and the supply of the pipe, as well as the drilling,” he explained. “We will drill a PE plastic pipe of 42 inches with a length of 1000 metres into the sea. This incorporates new environmental challenges as we are drilling from the beach and so we have to take into account all local activities - from people to animals.”

This required some creative thinking and as Ronald explained, A.Hak Drillcon came up with an original concept: “Normally we would have several trucks transporting pipe over the beach and then we would need to weld the pipeline into one straight one km length on the beach as well. Instead we negotiated with the supplier of the pipeline to make it in one piece of 1000 metres and it’s coming on a boat from Norway directly to our jobsite.”

From looking at all these new contracts, it is clearly an exciting time for A.Hak Drillcon, but nevertheless the company is always looking for new opportunities. Ronald agreed, and highlighted that the business had very recently set up a drilling company in Nigeria, together with a local company that is specialised in pipeline work. “We will have our own yard

We will work together over the next two to three years and hopefully create a drilling technique that should make it possible to do longer crossings than are possible at the moment. This will mean we can achieve a drilling length over 3000 metres

europeanoilandgas.co.uk

A.Hak Drillcon

European oil & gas

PROFILE

27

European oil & gas

europeanoilandgas.co.uk

PROFILE

28

A.Hak Drillcon

and rigs very shortly in the south of Nigeria and we will be drilling a lot of oil and gas pipelines over there.”

He continued: “There is a lot of work in Nigeria, for pipelines and river crossings, so for example, Shell is considering using HDD methods for all its installations instead of normal dredging, because there have been issues in the country with pipelines being damaged when people steal oil. When we use HDD we are at a depth of at least 15 metres so nobody can come into contact with the pipeline.” A.Hak Drillcon will be using this new division to gain more contracts in Nigeria in the future, as well as in the wider West African region.

“This will be one of our key areas, alongside Europe and South America,” added Ronald.

“Europe is where we are based so is of course very important to us, and we are always enhancing our presence across the region – so for example we exhibited at the No-Dig exhibition in Germany, and we are already working on a very exciting 1000 metre crossing in France, which for us is a real breakthrough to the French market.”

Ronald previously mentioned working with Shell, and he noted that A.Hak Drillcon is very keen to work in close partnership with clients. In fact, the company and Shell are now working together on a new drilling technique, which will make it possible to do longer drillings in the future.

“Shell had already undertaken some research and now we have a joint venture,” he said. “We will work together over the next two to three years and hopefully create a drilling technique that should make it possible to do longer crossings than are possible at the moment. This will mean we can achieve a drilling length over 3000 metres.”

Since last appearing in European Oil and Gas A.Hak Drillcon has gone from strength

to strength, always supported by its parent company, the A. Hak Park Group. As Ronald concluded, this backing has contributed to its impressive development: “A.Hak is a family company and this makes it much easier to invest in people and equipment,” he said.

“After a simple phone call or meeting with the owner of the company, we can move quickly with our decisions and that has really helped in our success.”

A.Hak Drillcon a-hakdrillcon.nl

Services Specialist in trenchless technologies

PROFILE

Cryo

field manufacturers of cryogenic equipment for the storage, transportation and handling of liquefied gases, Cryo AB has long been at the forefront of this market having developed its first tank in the 1950s. It’s an area that has become the subject of greater focus as liquefied natural gas (LNG) grows as a fuel source.

An independent company belonging to the Linde Engineering Division, Cryo AB gains several advantages from its parent business as managing director Lars Persson explains:

“We have direct access to leading experts in the cryogenic field. Having a strong mother company also enables us to go for larger projects, which wouldn’t be possible without strong financial backing. Linde also has global functions such as construction, manufacturing and procurement so we gain synergies in many fields. We are a relatively small local operator, so this opens the door to many global markets.”

Based as it is in Gothenburg, Sweden, Cryo AB built a lot of its expertise in the Scandinavian and Nordic countries, and continues to lead projects in these markets today. Notably in 2011 the company completed Sweden’s first LNG receiving terminal project. It’s an area where it has continued to secure work in, including a new project for Scangas.

“This is the second LNG receiving terminal that Cryo AB has built of this magnitude, and once complete will be the biggest facility of its type in Sweden,” describes Lars. “The project is progressing very well with a target for mechanical completion of early next year.

We also see opportunities for other upcoming projects of this size in Scandinavia, so this will serve as a good reference for those.”

As well as plants, another side of the business that is growing strongly is distribution equipment. This has sparked considerable investment into development by Cryo AB with a

European oil & gas

One of the world’s leading

europeanoilandgas.co.uk

Experts in the

29

europeanoilandgas.co.uk

European oil & gas

30

Clearly the potential of LNG as a fuel source is massive, and as projects such as these indicate there is still much in the way of development taking place around this

number of new products now coming to market.

This includes the world’s biggest vacuum insulated tank with a capacity of 1250 m3, and the largest LNG semi-trailer on the market to transport up to 60 tonnes of product.

At the same time Cryo AB has launched a new trailer with the lowest centre of gravity available, which offers superior road handling. Investment has not only been into new innovations though.

The company has also upgraded its helium tank container production facilities in the wake of the

success of this product to enable it to produce more than 50 units per annum.

“We have extensive cryogenic know-how having been present in the market since it began,” highlights Lars. “The combination of this with our core technology and production capabilities gives us a very strong proposition.

We also focus on offering complete solutions to the client including after sales services such as education, maintenance and support.”

One market where Cryo AB has found significant scope for its capabilities, particularly in LNG, is the maritime sector. For over 12 years the company has supplied energy fuel tanks for vessels such as ferries and supply ships to run on LNG, which has both economic and environmental benefits.

This has since been extended to smaller ships with the company’s development of the world’s first marine LNG fuel system for tug boats. The vessels were ordered by the Norwegian marine services company Buksér og Berging AS to go into service in late 2013. The system has been designed specifically to minimise the space needed for such equipment onboard the vessel, which opens up the LNG fuel market to even small ships.

It’s a market that Cryo AB is following on a global basis, as Lars concludes: “We want to be a world class provider of EPC services for LNG terminals in Scandinavia, and a supplier of leading and innovative onboard LNG fuel tanks, bunker systems and related solutions to the global marine industry. We will also continue with our distribution equipment arm and other developments borne out of our experience in cryogenics.”

Cryo AB cryo.se

Products Cryogenic equipment

europeanoilandgas.co.uk

“This was a unique system that enables the boat to purely run on LNG, as opposed to a dual fuel set-up, and therefore minimises the need to carry different types of fuel. The solution has been of interest for smaller coastal vessels such as tug boats and passenger ships, as its the first time that they have been able to exploit this fuel, so we expect this to grow further,” explains Lars.

Going one step further, earlier this year Cryo AB delivered the world’ first LNG bunkering ship, which operates within the Port of Stockholm providing LNG fuel to Viking Line’s new Viking Grace dual fuel passenger ferry and other such vessels. This pioneering project was undertaken for AGA and involved the conversion of a former ferry into the bunker boat, which has since been christened Seagas.

Clearly the potential of LNG as a fuel source is massive, and as projects such as these indicate there is still much in the way of development taking place around this.

Cryo

European oil & gas

PROFILE

31

Special

attention

European oil & gas

europeanoilandgas.co.uk

Operating from

32

offices through the UAE, Seven Seas Services is a leading specialist contracting company that provides services in the marine, offshore and building construction industry. The company, which is part of the Seven Seas Services Group, employs a team of dedicated and highly skilled and experienced design, services and sales engineers and project supervisors, which enables it to offer services across the entire Middle East Gulf region.

It is just under a year since Seven Seas Services was featured in European Oil and Gas Magazine.

At that time (November 2012) the company was firmly dedicated to continued growth, while securing its already strong reputation across the Middle East Gulf. Shahvir Sidhwa, business development director, recently highlighted some of the key developments that have happened in the company.

“One of the biggest recent developments is

that we are in the process of relocating to new office facilities,” he said. “While this is part of our natural growth, it is largely down to the fact that we have expanded quite a lot, having gone from having roughly 50 office staff to around

75 now, so the new offices will allow us to accommodate that, as well as increasing our site workforce to around 250 workers.

“At the same time, we have also been expanding our workshop facilities quite significantly with new machinery, tools and equipment in line with our growth. In terms of the new equipment, it includes the introduction of new CNC machines, which we mainly use for the fabrication of various furnishings, equipment and similar items that we use in our living accommodation solutions. There have been other introductions, so looking at galley equipment for example; we have invested in stainless steel cutters, as well as a lot of new equipment for our carpentry department. Again, that will be used for a lot of interior and soft furniture items that we develop, so beds and other similar items. It all serves to improve our operations and our efficiency within our workshops. Take the new CNC machine for example, before some of that work would have been a manual operation, so the benefits are obvious.”

This growth has been part of the natural development of Seven Seas Services. The company is already a leader in the region, with its name synonymous with quality and efficient project delivery. As Shahvir explained, being a part of the Seven Seas Services Group has been a key part of the successful development. “The main benefits that we find are the financial strength that the group has,” he says. “Seven Seas Services is just one division of the overall group, which is quite financially strong. Apart from the financial strength the corporate structure of the group gives us advantages too. It is well structured, which makes it very easy when new investments need to be made and approved. It’s not like a big public company for example, where we would need to go through various committees

looking to expand in the Saudi Arabian market.

We don’t have a full presence there but are looking for a suitable partner to be working with.

I think it will be a key growth area, particularly as the Saudi Government is looking to conduct more marine jobs locally rather than exporting work, which is the current situation. We have been in talks with Daman Shipyard to open a workshop in order to build up a small presence to begin with, and if we can build our business there we will certainly grow in that sector.

“Over the coming years we will largely focus on continuing to grow. We have always been a contractor for accommodation modules but whereas before we have always done just the interior the industry is moving towards more end-to-end solutions. In order to meet that demand we will move toward becoming a more complete provider, offering a total modular accommodation system where we can provide the complete service to our clients. That is where I see us progressing to for the foreseeable future,” he concluded.

Seven Seas Services LLC sevenseasservices.com

Services Specialist contracting services

europeanoilandgas.co.uk

or stages to get a decision approved, but rather they can be made quickly and effectively for the benefit of the whole organisation.”

Seven Seas Services provides a wide range of services to clients in the marine, offshore and construction industries. The company is able to supply and install a variety of solutions, largely for offshore rigs and platforms, but also for offshore vessels. Its large portfolio includes traditional items such as turnkey accommodation solutions, galleys, laundry rooms, windows, fire doors and cabin doors, ceilings and walls, toilet and shower modules, and associated services and equipment.

However, as Shahvir explained, the company continuously looks to develop new areas to exploit market opportunities. “We have recently started manufacturing helidecks, becoming one of the first companies in the Middle East to start building them out of aluminium. Companies are now looking at using aluminium helidecks instead of steel, largely because of the weight savings they can gain. As a consequence clients have looked further at how they can use aluminium instead of steel in other areas, so this is something new that we have moved into. We’ve started aluminium fabrication, so alongside helidecks we’ve looked at other types of aluminium fabrication, such as buildings, accommodation units, modules and other products.”

Due to its extensive range of services and solutions, the company is regularly contracted by some of the leading names in the industry for large projects. One example is the DOLWIN-2 development, which is the largest offshore wind platform structure ever commissioned. “This is a project that we worked on with Dubai Drydocks World, and it really is a key project for not only us, but for Drydocks World and the region as a whole. It is one of the first major NORSOKspecification projects to have been given to this region – usually these projects are given to companies in Germany or Norway for example – so it is quite a prestigious project to be working on. It also means that we have had to fulfil quite a steep learning curve in terms of working to the NORSOK specifications, but ultimately is quite a feather in our cap in terms of moving forwards.”

When it comes to the future, the business is targeting further growth over the coming years. “Naturally we are looking at moving into new markets and regions,” said Shahvir. “For example, we have been co-operating on some projects with Saudi Aramco recently as we are

Seven Seas Services

European oil & gas

PROFILE

33

europeanoilandgas.co.uk

European oil & gas

34

success Developing

specific client, Amarinth’s solutions fall into a number of categories: process pumps, seal support systems, packages and modules, and spares and service. Its process pumps have a number of applications, such as oil and gas, chemical and industrial process, but for the former market the company offers its API 610 process pumps in OH2 Horizontal and VS4 Vertical series. Now in its eleventh edition, the API 610 standard, which is the specification for centrifugal pumps, is specifically designed and developed to provide technical standards for the pumps supplied in oil and gas related markets such as production, power plants and refinery operations.

Illustrating the innovative and high quality approach of Amarinth, its API 610 pumps have been designed to the latest standards using up to date software as a heavy duty, minimal wear, longlife pump that, due to its modular design, provides clients with a number of options to ensure it meets the most demanding operational requirements.

Amarinth, a leading manufacturer of

pumps for general industrial, chemical and petrochemical applications, was formed to utilise the skills, creativity and passion of people who have worked in the pump industry for many years. The business, which provides clients with made-to-order, customised solutions, can boast more than 300 years’ combined experience among its employees, making it the pump provider of choice for a broad range of industries.

The company was formed in 2002 following the closure of Girdlestone Pumps, itself a well-recognised and highly experienced pump manufacturer. Continuing the quality work and retaining the knowledge of its employees, Amarinth was able to develop quickly. In fact, after initially concentrating on building its reputation in the UK the company quickly and successfully expanded overseas, where it now exports more than 80 per cent of its products.

Today Amarinth offers a large range of pumps and associated solutions, all of which are engineered-to-order and tailored to meet the exact requirements of the individual client according to the highest international standards and cutting-edge technology. It does this through a dedication to customer-oriented service, placing the highest possible emphasis on customer satisfaction delivered through exceptional manufacturing capabilities and an unwavering focus on innovation.

While its products are custom made for a

This particular Amarinth product is widely used across the oil and gas industry by many of the leading companies. In 2008 for example, Amarinth delivered an API 610 pumping solution for a major FPSO project by Aker Floating Production. Aker had a number of specific requirements for this particular project, which due to its short lead-time and lack of final specifications for the pump, required a flexible and responsive supplier able to provide high quality pumping solutions at short notice.

Throughout the project the specifications of the pump changed rapidly yet Amarinth was able to apply its experience and knowledge to successfully navigate the process, meeting the short deadline and providing solutions that met specified performance and DNV witness tests.

More recently Amarinth was involved in a three-way consultation project to develop a small footprint pump and seal support system for the

PROFILE

Of course, these examples highlight just one area of Amarinth’s expertise, but the business is continually developing across its product range in order to maintain its leading position in the market

Amarinth Ltd amarinth.com

Services Pump manufacturer

europeanoilandgas.co.uk

yet Amarinth was able to successfully meet the technical specifications of HHI in just 28 weeks, again demonstrating its ability as a flexible, agile pump manufacturer capable of engineering the most difficult innovations.

Of course, these examples highlight just one area of Amarinth’s expertise, but the business is continually developing across its product range in order to maintain its leading position in the market. Every three to five years it looks at its future product developments, using its expertise and experience to understand what the changing market requirements will be and thus, how to develop the business moving forwards.

Such a dedicated focus on staying ahead of the field has always been a cornerstone of Amarinth’s strategy. Throughout its lifetime the company has relied on its skill and expertise to consistently deliver on its promises by exceeding its customer’s expectations. For a relatively young business this approach has paid handsomely, making its shared objective of being a leader in its field a reality.

European oil & gas

Quad 204 FPSO, which is to be located west of the Shetland Isles upon completion. For this project Amarinth was selected to supply pumps for the produced water treatment and reservoir pressure maintenance re-injection package to be used on the FPSO. However, a number of design challenges predominantly around the space available on board made achieving a final solution particularly challenging.

Using a collaborative approach to the project Amarinth carried out the design work with John Crane and BP engineers to develop an integrated pump and seal support system package that sat on a bespoke baseplate, effectively wrapping the seal support system through 90 degrees around the pumps whilst still maintaining its interoperability and meeting the footprint limitations imposed by BP. Success in this design meant Amarinth was suggested by BP to Hyundai Heavy Industries (HHI) for a second challenging project on the same FPSO. This particularly complex requirement had seen little interest from Amarinth’s competitors due to its difficult nature,

Amarinth

35

europeanoilandgas.co.uk

European oil & gas

36

integrity Loyalty and

Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) is focused on the provision of oil and gas engineering and construction works and marine conversion and repair services. These extensive services are offered from two yards – MMHE West Yard and MMHE East Yard, both of which are able to handle complex heavy engineering works for offshore and marine projects.

Over 40 years of experience it has successfully expanded organically, improving its capabilities and offering by entering strategic partnerships with leading companies such as Technip, Samsung Heavy Industries and ATB Riva.

The business was incorporated in Malaysia in 1989 as a private company, and today it

has built a credible reputation for its ability to deliver integrated and complex services, including deepwater oil and gas support services and projects for international clients.

In a further expansion of its capabilities it has more recently developed its expertise in LNG ship repair and dry-docking activities, thus making it a one-stop-shop for marine conversion operations.

During its recent history, MMHE’s yards have delivered a number of key milestones and major projects. For example, in late 2006 Malaysia’s first deepwater project was completed at the site when the FPSO Kikeh and the Kikeh dry tree unit truss SPAR were delivered by MMHE. Not only was this the first deepwater FPSO in

only yard in Malaysia that has constructed deepwater oil and gas structures, giving it a considerable advantage over its competitors.

For oil and gas clients the company offers the full range of construction services, from detailed engineering, design and procurement through to construction, installation, hook-up and commissioning (EPCIC).

Typical projects include construction of various offshore equipment such as deepwater facilities like SPAR and semi-submersible structures, integrated platforms, wellhead platforms, compression, dehydration and water injection modules, jackets, living quarters, turret and mooring buoys, and topsides. MMHE’s capabilities do not just extend to offshore construction, as the business regularly manufactures process skids and modules, steel tubular and piles, and process equipment.

Alongside construction services MMHE provides offshore conversion projects, and is the only of its kind in Malaysia to have completed FPSO and FSO conversion projects. In this field Malaysia, it was the first SPAR platform to be installed outside of the Gulf of Mexico. MMHE has also constructed the Gumusut Kakap semifloating production system, the largest of this type of facility in the world to have been fully built and integrated on land.

Today the business is globally recognised as a regional heavy engineering and deepwater support services provider for the oil and gas deepwater industry, as well as a major player in the LNG ship repair sector. The range of services provided by MMHE is vast, covering engineering and construction, marine conversion, repairs and associated services.

When it comes to offshore construction, MMHE’s yard in Pasir Gudang, Johor, is the

europeanoilandgas.co.uk

Malaysia Marine & Heavy Engineering (MMHE)

European oil & gas

PROFILE

37

PROFILE

Malaysia Marine & Heavy Engineering (MMHE)

European oil & gas

europeanoilandgas.co.uk

Today the business is globally recognised as a regional heavy engineering and deepwater support services provider for the oil and gas deepwater industry, as well as a major player in the LNG ship repair sector

38

the company represents a one-stop solution for the conversion of a broad range of vessels, such as VLCCs, Aframax tankers, and offshore oil rigs and LNG carriers, into floating structures like FPSOs and FSOs. In order to provide the high levels of service it is renowned for MMHE ensures that both yards are equipped with the latest technology. For example, in April 2012 the business implemented a comprehensive yard optimisation initiative to both expand yard size and capacity through the acquisition of new land and updating existing equipment.

The acquisition of additional land was made to enable the fabrication of offshore oil and gas related structures by being able to cater to the increased engineering, procurement, construction, installation, hook-up and commissioning work. This has increased overall capacity from 69,700MT to 129,700MT, making the business the largest fabricator in Malaysia.

It was during this optimisation programme that the yards were renamed MMHE West Yard and MMHE East Yard.

Alongside its work in the oil and gas industry MMHE provides its expertise to marine repair projects, carrying out work such as general vessel repairs as well as more focused repair and refurbishment programmes. While this work extends to a wide range of marine clients and operational areas, it is primarily aimed at energy-related vessels such as ULCCs, VLCCs, petroleum tankers, chemical tankers, oil rigs and gas carriers.

During their operational lifetime MMHE’s yards have developed a strong reputation for their services in the offshore and marine industries. The business has continued to provide clients with the highest levels of services based around its core values of loyalty, integrity, professionalism and cohesiveness.

The market continues to look favourable for the foreseeable future, with the company continuing to gain impressive contracts, such as the recently awarded TLP Malikai deepwater project for Shell Petroleum. With the major names in the oil and gas industry continuing to chose MMHE, it appears that the future looks to be successful for the business into the long-term.

Malaysia Marine & Heavy Engineering (MMHE) mhb.co.my

Services Marine and heavy engineering services

waves It has been an eventful

and successful 12 months for Barge Master BV since it was last in European Oil and Gas Magazine, as it has continued with the ongoing developments of its wave compensated platforms for the marine and offshore construction industry.

“There have been some major changes over the past year, the latest being the awarded contract from a large Dutch dredging contractor following its tender win for a major offshore installation contract. This followed the seatrials last year, which resulted in us passing the testing phase and gaining recognition in the industry for having a system that works,” says Martijn Koppert, inventor and director of Barge Master BV. “The system has been Lloyds certified and DNV approved, so we are seeing a lot of interest from major contractors who are using it in their tenders for projects in 2014, 2015, 2016 and so on.”

Launched on the 12th December 2012, the BM-001 system is Barge Master’s first operational motion compensating platform to provide safety and stability to crane and supply operations offshore. Suitable for all kinds of standard marine vessels and now available for commercial use, the BM-001 will allow cranes to operate in swells up to five times larger than current systems, thus significantly expanding the use of standard cranes and minimising operating expenses and manufacturing costs for offshore projects.

Pre-launch, various sea trials were performed in the North Sea alongside maritime contractor GeoSea, using both a crane configuration and the Barge Master as a supply platform. A Liebherr LR1250 crawler crane was placed on top of the Barge Master platform in one single lift before it was sea fastened and tested with

a counterweight. The pontoon with the Barge Master was then taken further offshore where a range of load-lifting tests was undertaken in a variety of sea-states and mooring setups. With the Barge Master switched ‘on’, the crane hook and load hung perfectly still.

“Things are going very smoothly so far, the Barge Master works very well, with 95 per cent motion compensation achieved, it has proven itself through testing in the North Sea as well as with MARIN,” explains Martijn. “It has a payload capacity of 700 mT, which means the customer can put a total load of 700 tonnes on it, whether this is a crane with a load in the hook or a supply load only, the Barge Master will compensate 95 per cent of the vessel motions and can handle significant wave heights of up to two metres at wave periods ranging from five to 18 seconds. It is a modular system and easily mobilised and demobilised due to it being fully containerised with only 12 40-foot containers.

Following the success of the BM-001 we have received a lot of interest and requests for custom made systems, due to the Barge Master scaleability and versatility. It can be placed on any vessel and deploy any crane.”

With a whole career in marine construction and marine services, Martijn used his engineering expertise to find a way to stabilise the whole crane on a floating barge or other vessels without the use of jack-up legs, thus vastly reducing the dangers and challenges related to crane loads swinging during a swell offshore. “A small movement of a few degrees can be extremely dangerous as it leads to a

pendulum effect – when the load on the crane starts to swing due to the moving of the barge.

This leads to the crane swinging in a wide arc, even swinging the load over the deck of the vessel, which can be highly dangerous for those on board. From this experience I had the innovative idea of stabilising the whole crane on the barge, and thus, the Barge Master was born,” explained Martijn in his last interview.

To develop the innovative system, the Netherlands based Barge Master worked with a

europeanoilandgas.co.uk

Ruling the

Barge Master

European oil & gas

PROFILE

39

qua

lity

man

agem

ent

The right DNA for manufacturing off-shore equipment

nu

fac

tur

ing

m

an

ag

em

en

t

ma

e

ct

pr

oj

Machinefabriek VanderPloeg offers all the benefits of co-

requirements. This also goes for the superior processing

makership for the best manufacturing of high-quality machines,

techniques used for this, such as certified welding, cnc-

equipment and constructions. We can take care of a major

machining, assembling and testing facilities.

part: from production-engineering to assembly and testing.

The earlier you discuss your ideas and requirements, the

VanderPloeg is qualified for welding a wide range of materials

more you will profit from our experience and strengths.

and processes, all under a quality assurance system according

Co-makership with VanderPloeg means partnership with a

NEN-EN-3834-2.

multifaceted company in the field of manufacturing machines, equipment and constructions under the highest quality www.vdploeg.nl

Plutoweg 13, 8938 AC Leeuwarden, The Netherlands • Tel. +31(0)58 253 99 99 • info@vdploeg.nl • www.vdploeg.nl

VANDERPLO9502-G105335 Barge MasterV2.indd 1

29-08-12 16:11

utilisation of a dynamic positioning or traditional anchor system. Using the Barge Master results in increased safety, increased workability, a higher vessel payload capacity and a flexible low cost solution to companies involved in lifting and supply operations offshore.

Having concluded tests and proven the advantages of its game-changing system, the future looks positive for Barge Master as it continues participating at conferences and exhibitions to gain further exposure and potential contracts. “We have expanded our office because we needed the extra space due to increased and expected upcoming demand,” says Martijn. “We are also in the process of making a second Barge Master, which is based on the same principle as the Barge Master C400. The Barge Master T40 is capable of compensating a small offshore knuckle/boom telescopic crane with a 20mT capacity; as a smaller example of the Barge Master it will compensate for smaller cranes, resulting in more deck space. Over the coming years our key focus is to develop new Barge Master systems, adaptations and bespoke systems for our customers.”

Barge Master BV barge-master.com

Products Wave compensation platforms

machinefabriek vanderploeg The steel construction of the BargeMaster was built by Machinefabriek VanderPloeg in Leeuwarden, the Netherlands For almost 60 years Machinefabriek VanderPloeg has been manufacturing machines and constructions, completely assembled and tested or in parts, for many renowned companies in a wide range of industries. At the beginning of this century VanderPloeg made the strategic decision to focus on co-makerships in the markets with high demands on quality, flexibility and reliability. This decision was a logical step in the further development of the company and it perfectly matched the profile, knowledge and skills of Machinefabriek VanderPloeg. Since then the company has achieved the required specialist knowledge and expertise in-house regarding materials, welding and machining, all of which complies with the stringent quality requirements. VanderPloeg also has highly efficient and flexible production capabilities at its spacious location at a waterway.

VanderPloeg’ s attitude of co-makership means a close and constructive co-operation with client and notified bodies in order to define and realise the best feasible solutions for the special parts and constructions. In this Machinefabriek VanderPloeg is able and pleased to take responsibility for the qualified weldings, machining, coating, assembly and the required tests; most of this is carried out at its own site in Leeuwarden or with sub-contractors in the region.

The company is convinced of the importance of co-makership. Consequently, the business has a long-lasting relationship based on mutual trust with many of its clients. VanderPloeg is a compact, flexible company with short lines of communication and it has the capacity, knowledge and facilities for complex orders. This Dutch company has the right DNA for a co-maker relationship, focused on quality and reliability at manufacturing special products.

VanderPloeg now works with many major companies in the offshore oil and gas industry, but also in other sectors like energy, defence, steel, chemical and the environment. VanderPloeg has the necessary specialist knowledge and certification for processing and welding the specific materials that are applied in these industries.

VanderPloeg: the right DNA to be your partner in manufacturing your tools and equipment.

europeanoilandgas.co.uk

range of leading companies as technology partners, such as MARIN Maritime Research Institute for numerical and scale model testing as well as motion behaviour; Bosch Rexroth for the drive and control system, and Temporary Works Design (TWD) for the structural design of the platform and foundations. “For the control system we worked closely with Bosch Rexroth, the number one drive and control company in the world, and we are very happy to work with this firm to develop these systems and they are happy to work with us. In 2010 Frans Van Seumeren, owner of shipping and heavy lifting firms RollDock and Roll-Lift invested in Barge Master and made it financially possible to develop and build the first Barge Master,” says Martijn.

To compensate sea-induced motions during offshore and near-shore installation work, Martijn took three of the six degrees of freedom (DoF), one translation (heave) and two rotations (roll and pitch) into consideration before developing three controlled hydraulic actuators. The other three DoFs are compensated through restraining two translations (surge and sway) and one rotation (yaw) of a barge or vessel with the

Barge Master

European oil & gas

PROFILE

41

Going through

europeanoilandgas.co.uk

innovation European oil & gas

It is roughly 12 months

42

Cronisteel AS Cronisteel AS are a leading stockholder and distributor of stainless and high alloyed steels in Norway. Our products consist of sheet, plate, bars in all forms, and tubes and fittings. Our specialty is 6Mo, Duplex and Super Duplex delivered acc. to NORSOK specification in hot rolled and forged execution. We also supply plasma and water jet cut details from plate.

since European Oil & Gas last featured Trelleborg Offshore & Construction in Norway, and during that time the business, which is the largest producer of innovative rubber products in Norway, has continued to grow.

“Over the last year or so we have seen several exciting product launches, as well as some new concepts being implemented within the business,” said Morten Kristensen, who heads up sales and marketing in Norway, elaborating on the company’s recent success. “For example, our product, Vikotherm, has gone through continuous developments resulting in the recent launch of a new generation known as Vikotherm II. This has been well received within the market.”

Vikotherm is a rubber-based composite that provides corrosion protection, thermal insulation and mechanical protection of jumpers, manifolds, risers, pipelines, flow lines, equipment and other subsea structures.

“We’ve noted that market trends are moving towards more demanding applications, where the water depths are increasing and process fluids are becoming hotter,” he continued. “As a result, the need for high performance, durable and reliable thermal materials has never been greater. In order to fulfil these requirements, the second generation of the Vikotherm system has been developed and subjected to years of tests and qualification programmes. We can now provide the market with a material that is capable

of operation down to 3000 metres and with a continuous service temperature up to 155 °C. “We have also been challenged by customers to meet an increasing number of demands for local application where equipment is too large to be shipped, or for other reasons, unsuitable for transportation to our sites. So we have also developed a version of Vikotherm for field application and curing. This is completed by mobile ‘factories’. This makes Vikotherm more portable and flexible in terms of meeting market demands. Our cost and time-effective approach is a key reason that our clients choose to work with us.”

Trelleborg Offshore & Construction maintains its leading position through this kind of approach – continuously looking to develop new products and innovations in response to the market needs. Alongside Vikotherm, the business provides a vast range of solutions that cover areas such as corrosion protection, flexible piping systems (Elastopipe), passive fire protection, and other engineered solutions.

“We have seen an increase in various market demands, particularly in thermal insulation, due to the growth in subsea operations in deeper waters,” highlighted Morten. “We are able to act as a total supplier in the thermal insulation field.

Our development strategy is very important for us as we continuously work on rubber innovations. In addition, Trelleborg has a strong focus on the environment and are members of

Trelleborg Offshore & Construction

subsea gas compression facility, and Trelleborg’s innovative Vikotherm II insulation material will be used on 600 metres of piping, forming part of the Asgard system which will be located on the Halten bank in the Norwegian Sea, about 200 kilometres from the centre of Norway.”

As Morten illustrated, the business is certainly busy at the moment, and with its innovation programme continuously developing new products, the future certainly looks positive for Trelleborg Offshore & Construction, Norway.

“During 2013 we will largely be focusing on controlled growth, as well as continuing to develop our strong customer focus through building mobile factories and developing and improving our technologies to make us an even stronger partner in the market. In the longer term - over the next three to five years – our goal is to become the preferred supplier in the industry by developing new products and services for existing and new markets, always delivering the best possible service to our clients,” Morten concluded.

We can now provide the market with a material that is capable of operation down to 3000 metres and with a continuous service temperature up to 155 °C

Trelleborg Offshore & Construction trelleborg.com/ offshore-norway

Services Innovative rubber products

europeanoilandgas.co.uk

the European Union’s REACH Programme that deals with registration, evaluation, authorisation and restriction of chemical substances.

“Work taking place at our dedicated R&D facilities covers the A-Z of our product portfolio,” he explained. “We can carry out a wide range of tests, such as scala tests, jet fires on our dedicated rig, material testing in our own laboratories and pressure tests in separate pressure vessels for thermal applications. Currently, we are working with the next generation of Firestop - our passive fire protection system. The completed fire tests have given us good results and the enhanced product is due for release next winter.”

Of course, such a dedication to innovation means that Trelleborg Offshore & Construction is the supplier of choice for many of the leading names in the industry. “We have won a big contract to provide Aker Solutions with high performance subsea insulation, for use on the Asgard Subsea Compression Project for Statoil,” Morten pointed out. “This will be the world’s first

European oil & gas

PROFILE

43

European oil & gas

europeanoilandgas.co.uk

Flying

44

Founded as a subsidiary of the family owned EagleBurgmann Germany GmbH in 1990, EagleBurgmann Norway AS (EBN) has enjoyed 23 years of organic, steady growth to become the leading player in the manufacture of seals and seal systems in Norway. Aware that no industrial production plant can operate without seals, EBN delivers products and services to a wide range of organisations within the oil and gas industry, as Kristian Malnes, managing director of EBN, states: “Our main market is definitely the oil and gas industry as we can offer a comprehensive range of sealing solution services to companies within it, such as oil pumping and cracking, process gas containment, gas compression, phase separation or synthesis of chemical substances, temperature expansion in flue gas systems and pipeline sealing. Our strengths lie in our fast service, flexibility and customer focus as well as our pool of certified offshore service technicians and the worldwide presence and support we receive from our parent company EagleBurgmann Germany. This has resulted in our busiest year ever, with several contracts from Statoil awarded to supply seals and accessories for the Valemon and Gudrun projects as well as working on Lundin’s Edvard Grieg project.”

As a leader in sealing technology, EBN delivers safe, reliable products for any application and finds the best solution for each unique request

through the innovative design of seals that are capable of withstanding a comprehensive range of media, various pressures and temperatures and different aggregate states. Its extensive portfolio includes both standard seals and oneoff, unique, application specific designs, such as mechanical seals, seal supply systems, gaskets, expansion joints, special products and total sealcare services. “We have total commitment to outstanding quality at EagleBurgmann,” says Kristian. “We at EBN have local manufacturing and in-house test facilities to ensure our mechanical seals meet the most demanding customer expectations.”

Over the course of a long partnership with the oil and gas industry, EagleBurgmann has developed a range of standard, high quality solutions to meet many of the diverse needs of the oil and gas industry. This includes mechanical seals for pumps, mechanical seals for agitators, mechanical seals for compressors, carbon floating ring seals, compression packings, gaskets and magnetic couplings.

Playing a key role in the reliability of an entire plant, EagleBurgmann’s portfolio of sealing technology protects systems and components from contamination, external influences and also prevents emissions. Furthermore, EBN’s aftersales and service department offers customers spare parts and the refurbishment of mechanical seals, assistance during installation

causing leaks or damage. “The RoTechBooster helps the operator to ensure maximum reliability of the seal gas supply to their compressor seals, resulting in maximum equipment uptime and plant availability,” says Kristian.

As investments in offshore Norway continue to show growth, the future looks positive for EBN, as it continues to offer sealing solutions to industries around the world, as Kristian concludes: “We are a family owned company which always has, and will continue to have, a long term focus, which will ensure sustainable growth and profitability. Our target is to increase our installed base and guarantee continued customer satisfaction. If this is achieved I am certain the numbers will develop positively.”

Seal faces with DiamondFaces are extremely hard and wear resistant, with excellent thermal conductivity and strong chemical resistance. This results in a longer service life, with extended maintenance intervals and huge reductions in life cycle costs EagleBurgmann Norway eagleburgmann.com

Services Leading sealing technology provider

European oil & gas

and commissioning, stocking of mechanical seals, the design of seal supply systems, technical support/trouble shooting, training courses and offshore certified service personnel.

Dedicated to innovation, the company introduced its cutting edge mechanical seal coating technology, DiamondFaces, in 2007.

Seal faces with DiamondFaces are extremely hard and wear resistant, with excellent thermal conductivity and strong chemical resistance. This results in a longer service life, with extended maintenance intervals and huge reductions in life cycle costs. “We are very proud of our technical developments and have successfully launched our new revolutionary oil barrier/ separation seal, the CobaSeal, to the market.

This product has been very well received and we are currently increasing our installed based worldwide for this product,” enthuses Kristian.

This co-axial gas lubricated seal eliminates all of the disadvantages of existing systems that are currently in the industry. With a similar design to a gas seal, the CobaSeal consists of a ductile rotating seat and a stationary spring-loaded seal face. Contrary to conventional mechanical seal

EagleBurgmann Norway

europeanoilandgas.co.uk

PROFILE

45

systems, the separation gas goes through the stationary seal face into the centre of the sliding face via the axial bores before it is separated into two leakage streams towards the inside and outside diameter of the sliding face. Certified by NACE, features include a ready-to-fit cartridge unit and aerostatic lift off, it is also gas lubricated and bi-directional.

Another innovative product within the company’s expansive portfolio is the RoTechBooster; described as ‘the unbeatable solution for reliable seal gas supply flow’, the RoTechBooster is simple to set up and easy to operate. With a centrifugal design it is highly reliable, virtually maintenance free and boasts an extended life that is three to four times greater than current boosters. Through compressing the filtered flushing gas and supplies it to the seal, which prevents dirt deposits collecting and

46 European oil & gas

europeanoilandgas.co.uk

PROFILE

VENKO Offshore

VENKO Group prides itself on Top NAM L13FE1 after full fabric maintenance Above Platform detail

Above Electricity mast

providing high quality coating work for projects in a wide range of shapes and sizes, and in all kinds of locations. Undaunted by a challenge, VENKO has carried out assignments on board offshore platforms, on high-tension pylons, power plants, substations, transmission masts, (railway) bridges, pipe spools, sluice gates, and many other areas.

It offers these services through three main divisions – Outdoor, Offshore, and Indoor, and its dedicated team of professionals can supervise a project from beginning to end by providing the right advice, the right materials and the right people.

This wide variety of services means VENKO Group has an equally diverse portfolio of assignments and clients. The Group therefore has long-term business relationships in the following sectors: energy; railway; chemical, oil and gas industry; commercial and industrial buildings; civil works; innovative maintenance; stationary blasting and coatings, among others.

Looking specifically at the offshore sector, this division specialises in carrying out fabric maintenance work on production platforms, drilling platforms and measuring platforms.

Andre Hofman, VENKO group managing director, and Tom Herok, the division’s business unit manager, highlighted the typical client that would undertake a contract with VENKO Offshore. Said Andre: “Our main customers are the oil and gas producing companies working

on the Dutch Continental Shelf and the UK Continental Shelf.” Andre illustrated how VENKO Offshore operates by describing the current work it is undertaking with Shell: “We have actually been awarded contracts from Shell for 35 locations,” he said. “Most recently on the NAM L13FE1 platform, we painted it from top to bottom, and this means every area was blasted and painted, the sheeting was re-done, plus the helideck netting and the helideck marking were replaced.

“We have completed four locations for Shell and are now working on the fifth in NL, all on schedule. The next locations are in the UK and further afield, so they cross borders, and we work on them 365 days a year.”

Andre added: “If we look at the whole VENKO Group, there are some other significant projects that are being worked on. We are specialists at working at height, so for example we work on pylons and we are moving into the maintenance of wind turbines. We also have experience in large and complex projects, with an example being the high-speed water locks here in Holland. VENKO used an innovative painting system and alternative access on this.

By doing so, we have reduced the overall project costs and duration for our client.

“We also carry out the submarine painting for the Dutch Navy, which requires specialist skills,” said Andre. “That is performed at the Royal Navy Base in Den Helder were VENKO has its own facility.”

European oil & gas

process Smoothing the

europeanoilandgas.co.uk

Right Detail on platform

47

PROFILE

VENKO Offshore

European oil & gas

europeanoilandgas.co.uk

Holland Mineraal BV

48

These blue-chip clients are drawn to use VENKO Offshore’s services because of its reputation for high quality and a flexible approach: “VENKO has been known for several years as being a company big enough to support oil and gas clients but flexible enough to react to the clients’ exact needs,” agreed Andre. “We can generally incorporate all the clients’ needs into our way of working so we are adaptable to their wishes. But we also challenge our clients to add value. Furthermore, we have a lot of experienced employees who have worked for us for a number of years and their commitment is also one of our major strengths. Combined with our stocks of equipment, our ability to react quickly to customers’ demands is superb.”

Andre continued with some more details about what makes his team stand out from the competition. “What we have at VENKO is a large group of qualified, highly accomplished painters. They bring with them extensive experience on metal work, and their skill enables us to offer a unique five year guarantee on offshore metal work. That is not commonly done in the industry.”

Tom added: “We also offer a unique contract in the offshore industry - the standard is an hourly based contract but we offer fixed prices.

This gives us a better relationship between VENKO and the client, which we see as another strength of VENKO Offshore.”

As Andre already noted, VENKO Offshore will start work in the UK market shortly, via a barge vessel that moves from platform to platform.

“This means that supply boats travel from the UK and personnel is mobilising from Norwich

to the barge, and we’d like to have an office on land to support the businesses’ requirements, so we have opened our office in Great Yarmouth,” he said.

“The main reason we are setting up a presence onshore in the UK is to support our activities on the Shell contract for 35 platforms,” he added.

“But of course we also want to expand our business in the UK and that is a step planned for 2014. In 2013 our focus is purely on the successful start of the barge campaign work in the UK waters.”

With expansion on the agenda and a raft of new contracts to complete, the next few years look busy for VENKO Offshore. But as Andre noted, the company has no intention of resting on its laurels: “We want to make more customers aware of our approach, so we can sell our philosophy on product maintenance activities. We feel that our unit-based contracts are the future, as this will change the execution focus for both VENKO and our client, which results in overall cost saving. In addition we include the five-year guarantee and an expectation of between ten and 15 years, and we want to raise awareness in the market of this.”

Andre concluded: “We like to add value to our clients’ projects, and our experience in the market is invaluable here. We started the company in 1975 and today in the Netherlands we are one of the key players in metal preservation. So, we are not only executing work for our customers but also we are setting the standards and developing innovation programmes. That is the added value for us to be not only a supplier, but a partner in the entire process.”

Holland Mineraal BV, founded in 1976, is a producer and supplier of abrasives and blasting machines. The company has become an international leader in the field of surface treatment and is ISO 9001-2008 certified since 1997.

We represent respected manufactures and continiously develop proven concepts. A selection from our extensive range of products in the offshore industry are: blastpots PED approved, vacuum recovery systems, blastrooms, portable dust collectors (ATEX), portable recycling systems, nevel-jetwetblastsystem, vacuum blasting machines and a complete programme of abrasives.

The in-house engineering department and team of experts, both with major experience in the field, will be pleased to provide you with objective and expert advice on complex projects.

Above Free fall life boat in the paint shop at Venko Below NAM L13FE1 before full fabric maintenance

VENKO Offshore BV venko.nl

Services Blasting/painting/ protecting metal and concrete

standard The global

Over the past ten years

Thermtech, a Norwegian technology and engineering company, has doubled in size, and in 2008 it was ranked as number one on Deloitte’s Fast 50 in Norway. This success has been established on the vision of setting the global standard for the treatment of drill cuttings, which contain oil from drilling fluids. The tool it developed to reach this goal is Thermomechanical Cuttings Cleaner (TCC) technology.

Patented and highly advanced, TCC is a friction based thermal separation technology that is able to recover the Base Oil from the Oil

Based Mud for re-use, and can be operated both onshore and offshore. The treatment with the TCC represents both the best environmental and commercial options since the TCC is able to

recover the high value Base Oil from the cuttings with the same qualities as the original Base Oil. The last time that Thermtech appeared in European Oil and Gas, sales and marketing director Rocco Valentinetti explained how the company operated: “Across the world there are numerous oil companies of all sizes that require the use of the TCC technology for the treatment of their waste. What Thermtech does is supply this technology, both as complete units to its customers and as manufacturing licenses to its license holders, the industry’s leading service providers, which in turn provide services to the exploration and production companies.”

Operationally, Thermtech is the technology owner of the TCC process, and focuses mainly on selling turnkey solutions to customers that are in, or want to enter into, the treatment business. Thermtech itself does not offer services, but rather, it assists the customers in getting their business up and running.

In addition to the equipment itself, Thermtech offers assistance with permit applications and plant design, education and training of customer’s operators and supervisors, installation and commissioning, operational start up assistance, remote and on site supervision of operations, spare parts and maintenance.

The actual manufacturing is outsourced to professional and experienced manufacturing companies, while Thermtech retains the project management and carries out the assembly, the installation and the commissioning of the TCC

europeanoilandgas.co.uk

Thermtech

European oil & gas

PROFILE

49

PROFILE

Thermtech Thrums Engineering Services

thermtech.no

Products TCC technology and engineering

europeanoilandgas.co.uk

Thermtech

European oil & gas

units. All the design work is performed in-house by professional engineers who use advanced software and knowledge tools.

The most important property of the TCC process is its ability to recover every material found within the waste itself, while retaining the same qualities possessed by the original components. This means that at the end of the treatment process, the oil can be re-used and the clean solids can be used in different applications, land filled or discharged to sea. With all the elements recovered and able to be reused with their chemical and physical characteristics still in place, the TCC process has completely eliminated the concept of waste.

The application of the TCC process results in major environmental benefits, these positive results are attracting more and more customers, as they look for ways to adhere to the stricter environmental regulations.

Indeed, the reputation of the TCC process is so strong that Thermtech sometimes finds that some oil companies operating in areas of lax regulation have still adopted its technology, not for any commercial advantage, but mainly to reinforce their ‘green’ reputation and thus emphasise their environmental credentials.

Furthermore, Thermtech’s customers appreciate that the TCC technology keeps the environment clean and, at the same time, creates commercial benefits. The beneficial environmental effect created by the recovery of the Base Oil from the waste also creates a positive income and cost savings. In particular in regions where the Base Oil is imported, such as in the Caspian, it results in an income that is equivalent to the cost of the recovery operation. This means that environmental and commercial interests go

hand in hand since the recovered Base Oil is re-used to replace the expensive virgin Base Oil, which can be even more costly due to transport costs.

Thermtech affirms that the TCC process challenges any other existing method or technology simply based on the business case itself. Even discharge to sea can be less economic in given situations, in particular if future liability is taken into account.

Going forward, Thermtech has plans for more expansion and growth. It is always investing in research and development into new and more advanced TCC options, such as mobile units or those designed to handle different types of waste. It is also interested in geographic expansion into new areas that are seeing exciting developments in the oil industry. By maintaining its focus on both the environmental and commercial benefits of TCC technology, Thermtech looks set for a successful future.

Thrums Engineering Services (TES) have been working alongside Thermtech for the last two years designing and building both Canadian and European units. Thermtech initially came to TES with a vision and outlining design of these units, but made it clear that TES could make modifications throughout the build to best suit the units use.

Thermtech representatives often visit the fabrication workshop to get an overview of progress on current builds. As a result of this relationship we successfully saw the fabrication and installation of the first Canadian unit. Thermtech and TES continue to work closely together and look forward to many future builds.

51

europeanoilandgas.co.uk

European oil & gas

52

protected Fully

When founder

and managing director of Gemini Corrosion Services Ian Guthrie was working offshore in 1982, he saw first-hand the impact of corrosion on scaffold fittings and learned the majority of these fittings were scrapped when returned from the offshore rigs. Seeing a gap in the market, Ian launched Gemini Corrosion Services in a small unit at Spurryhillock Industrial Estate, Stonehaven, 15 miles south of Aberdeen, where he began refurbishing scaffold equipment. This offered offshore companies the benefits of extended asset life expectancy and a fast response turnaround from a local supplier.

Recognising that further opportunities existed within its offshore client base, Gemini increased its range of services in 1985, investing in surface preparation equipment and establishing its corrosion services business. The enhanced business volumes resulting from this increase led to the company relocating to larger premises on the Spurryhillock estate, which became Gemini’s headquarters whilst it continued to develop and expand facilities with the construction of new coating and blast halls and ongoing improvements to its infrastructure.

Furthermore, the company implemented

training and development schemes as well as internal promotion to ensure the retention of an experienced and qualified team.

Gemini is today a world leader in protecting pipework, steel structures and subsea pipelines against corrosion in the oil and gas industry; it has recently expanded its Montrose base from seven acres to ten acres and acquired new heavy lifting equipment as part of an investment of ÂŁ1.5 million in the building of new facilities.

With on-site facilities including a blast bay, thermal spray hall, main spray hall and fully automated metal spray facility at its Montrose base, which the company expanded into in 2009, Gemini can offer complete standard or bespoke solutions to its long-standing and extensive client base. Over 30 years it has developed its flexible coating services for new equipment, whether land based or offshore, topside or subsea, as well as offering refurbishment and upgrade of old coating systems. Topside coating projects range from the structural components on oil rigs, including accommodation modules and helidecks, through to process and control equipment, such as pipe work (spools) and valves.

Typically based on the NORSOK M501

for TSA coated tubular equipment, such as risers, Gemini designed and constructed a fully automated cutting-edge thermal spray hall, the first of its kind in Europe, and began operations in January 2006. The automated coating is far superior to manual application techniques, as it allows numerous programme processes to be stored and ensures even coating thickness.

Consisting of an automatic pipe manipulator with two high throughput electric arc wire spray units, the facility is designed to ensure the highest quality TSA coatings and is capable of coating pipes from four inches to 48 inches diameter and 6.6 feet to 75 feet in length.

With more than 30 years in the business, the company recognises the pressure surrounding time constraints and the stringent demands for maintaining a high quality service on schedule. Having retained an ethos for the best quality services and facilities, as well as active investigations into innovative coating processes and applications, there is no sign of Gemini getting rusty any time soon.

Gemini Corrosion Services Ltd geminicorrosion.com

Services Surface preparation and protective coating applications

europeanoilandgas.co.uk

standard for both paint and thermal spray, the applied coatings’ types, controls application methods and quality are stringently regulated.

For subsea environments, one of the most severe tests for protective coatings, Gemini has established a long and successful history and is able to offer the highest standard quality in this demanding market where any mistakes result in huge expense. This has led to numerous approvals with major blue chip equipment manufacturers; equipment protected by Gemini applied coatings includes BOPs, valves, protection frames, pipelines and risers.

At its Montrose facility the company can take on the most challenging of tasks, with its purpose built main spray hall that covers more than 1000 square metres and comes equipped with two ten tonne overhead cranes for component handling assistance. The ISO 18000 accredited spray hall can produce various coatings from epoxy paint that conforms to NORSOK industry standards, to more specialised systems, such as anti-fouling paint.

Meanwhile, its multi-function thermal spray hall is where both specific surface preparation and thermal spray is undertaken. Believing the basic process of surface preparation is the foundation of its success, the company’s main blast bay is accessible from the main yard and opens in to the main spray hall. Most components are maneuvered in to the bay with fork lifts, while larger items are loaded on to bogies by cranes before being pushed in on the track systems, thus minimising handling operations.

The company assesses the surface profile and cleanliness in terms of the industry recognised Swedish Standards SA2.5 or SA3 and uses various media dependent on component material, client specifications and required results. For example, chilled iron grit, due to its ability to quickly strip various surface contaminants, is used for aggressive cleaning applications, while aluminium oxide is used on surfaces that can’t be contaminated by ferrous materials; glass bead blasting, meanwhile, produces a clean, bright finish, without dimensional change of parts. In addition to blasting, Gemini has a shot peening facility, which employs spherical shot blasted on to a surface to produce compressive surface stresses, which improve fatigue life.

Used for many years to protect steel work from corrosion, thermal spray coatings have proven an excellent way to protect offshore structures and equipment. To satisfy the demand

Gemini Corrosion Services

European oil & gas

PROFILE

53

way

Leading the

European oil & gas

europeanoilandgas.co.uk

In recent years

54

there has been an increased international interest in the Irish oil and gas market, which despite having limited resources compared to other northwest European countries, has a number of elements such as attractive fiscal terms, new technology and the installation of infrastructure, which have made it an attractive area to prospective operators. At the forefront of this growing market is Providence Resources, a business that is focused on the exploration and exploitation of the hydrocarbon potential around Ireland.

The growing interest in the sector, and the untested potential of the Irish market, has seen Providence Resources embark on an ambitious multi-basin, multi-year drilling programme to test and exploit that potential. European Oil and Gas Magazine recently spoke with Tony O’Reilly, chief executive at the business, to find out more about its operations.

“Since the early 1980’s, we have been focused on oil and gas exploration, and primarily in Ireland, which is why the business was originally set up,” he explained. “The fundamental change really happened in 2004 when we commissioned a strategic review of the company, looking at our operations in Ireland and establishing that this is the region that we really wanted to continue to focus on. At that time, we felt that Ireland was still very much an unproven region, with too few wells drilled and with only two successful commercial developments, despite its offshore acreage being substantially larger than the whole North Sea. “Ireland had essentially been under-drilled for some time, as far back as the 1970s and 1980s, with many wells encountering hydrocarbons but not being commercialised,”

he said. “There were a number of key reasons for this, predominantly based around lack of infrastructure, lack of frontier or deepwater technology that was needed and an economic environment that was considered less attractive than other regions. More recently however, those key variables have all been overcome; so we have the pipeline infrastructure in place across Ireland and connecting us to Europe, the advent of better drilling technology, as well as the use of 3D seismic technology that has opened up new opportunities, changes in the tax regime and a more robust commodity pricing environment.

All of these elements are extremely positive for the Irish market and are largely behind our advancing our drilling programme.”

Building on the renewed interest, Providence has focused on a large-scale exploration and appraisal programme, working on opening up as many basins as it can. “We describe ourselves as a front end E&P company, so we are not a development company as such, but rather we feel that we are very good at going out there and finding the basins, doing the initial exploration and appraisal and bringing in the right partners to achieve success. We currently have activities in eight basins offshore Ireland, making us the most diversified explorer in the region, and we have already brought in a number of first rate partners including ExxonMobil, ENI, Repsol and Petronas among others.”

In carrying out this work, Providence’s general business model has revolved around opening up as many of these basins as it can, often carrying out one pathfinder project or well in the basin with the hope of finding significant resources.

“Essentially, it has been all about opening up Ireland as a realistic oil and gas region,” Tony commented. “We always said that we would need one significant discovery and it would be a game changer for us and the Irish oil and gas industry, and that is precisely what happened in one of our basins that we drilled last year in the Celtic Sea, called Barryroe.”

Barryroe has proven to be a large, positive development for Providence Resources. Situated in circa 100 metres of water off the south coast of Ireland, the field was the subject of successful appraisal drilling in 2012. Previous operators had drilled five wells on the field and in 2011 Providence, having acquired a new 3D seismic survey on the field, successfully drilled a sixth well announcing results that far exceeded pre-drill expectations. After extensive post well analysis and field development planning,

drilled and taking the initiative, and that is what we are doing. The more activity you have, the greater the chance of success, and I think that whilst we may have been something of a ‘lone voice’ for the Irish sector in the past, now that you have the arrival of players like ExxonMobil, Cairn, Kosms, Woodside, Repsol, Petronas, etc – clearly, the international industry is watching developments, particularly our developments, very closely.

“I think that there is a very real sense that Ireland’s time is coming, and there is a ‘watch this space’ feeling around Barryroe and Dunquin.

The latter is an uber-large exploration prospect that we have brought ExxonMobil, Repsol and ENI in to and I think the coming weeks and months will be hugely interesting and could be massive for Irish oil and gas. With all that we have going on, we view the future with great confidence. We are validating the prospectivity of the Irish offshore and as an Irish company, I’m proud that Providence is leading the way in that respect,” he concludes.

Providence Resources providenceresources.com

Services Exploration and appraisal

europeanoilandgas.co.uk

analysis, Providence has launched a farm out campaign to bring in a partner to take the field to first oil - and it has received significant amounts of international interest owing to the size of Barryroe, its location and its relative attractiveness from a fiscal and operating perspective.

However, Barryroe is just one of the many developments that Providence Resources is currently undertaking, as Tony was keen to highlight: “We are involved in a $500 million programme of six basins with our partners – so in addition to Barryroe, we are presently drilling a massive exploration well off the west coast called Dunquin (drilling operations commenced in April 2013), and then through next year we have another four basins that we will be drilling off the west of Ireland and in St. Georges Channel.

“It is still early days, but it is a very exciting time for us and I am pleased that Providence is really taking a leading role in the Irish offshore.

I think the great thing is that we are drilling – it’s all very well talking about the potential of the market, but it is all about getting the wells

Providence Resources

European oil & gas

PROFILE

55

PROFILE

Camcon Oil

operations Below Ian Anderson, managing director at Camcon Oil

developing intelligent tools for deployment in the upstream oil and gas industry. The company’s first product, APOLLO, a Digital Intelligent Artificial Lift (DIAL) solution, is currently undergoing testing in Oman and is shortly to come to market.

This solution is designed to address the challenges of enhancea oil recovery (EOR) head-on. Taking into account the reduced cost of well interventions associated with sidemandrel gas lift units, the loss of production, wireline and slickline intervention incidents, and optimal usage of gas and associated compressor equipment, Camcon believes that its DIAL products can deliver a return on investment of at least 20 and have the potential to increase recovery from individual wells by up to 30 per cent.

Camcon Oil is in fact part of a federation of companies set up to support the development and commercialisation of the Binary Actuation Technology (BAT), which sits at the heart of the DIAL solutions. Since parent company Camcon Technology was formed in 2000, this BAT has already found applications in the automotive, life sciences, and process control industries, with Camcon Oil being incorporated in 2009 to specifically concentrate on product development for the oil and gas industry.

When asked to consider what it is that sets Camcon Oil apart in the market, managing director Ian Anderson reflects that it is the

company’s innovation and determination to break through in what is a traditionally risk adverse culture. “We have achieved this through a number of methods, starting with funding,” he outlines. “Camcon has worked hard to secure sufficient financial support from its shareholders to establish a long-term funding commitment, which is essential to enable us to put all product development, manufacturing, and support programmes in place.”

He continues: “By talking continually to the industry Camcon has been able to move from the proof of concept, design and prototype stages to field testing. We’ve already put in place an extensive distribution network in one of our main targets areas – the Middle East, through agreements with Al Mansoori Group, one of the region’s leading oilfield services companies.

We’ve also been working to gain the industry’s, and particular operator’s confidence in both the technology and its delivery. That is now manifesting itself through what we are confident will be successful field trials in Oman.”

Indeed, Camcon Oil believes APOLLO is set to revolutionise the gas lift sector as we know it as a product developed in direct response to operators’ needs to have access to variable operating valve combinations in their artificial lift operations. “Today’s gas lift solutions come with certain limitations, particularly in regard to the information they generate and the often crude forms of intervention they require,” explains Ian. “In artificial gas lift

European oil & gas

Camcon Oil is a world leader in

europeanoilandgas.co.uk

Intelligent

57

PROFILE

Camcon Oil

European oil & gas

europeanoilandgas.co.uk

Longer-term the company aspires to establish itself as an accomplished, leading supplier of next generation production utilising its unique patented technology

58

injection, operators still have little information on pressure and temperatures at the point of injection, as well as limited control and flexibility in being able to alter injection rates in real-time.

“Our solution – APOLLO – meets and overcomes these challenges. APOLLO is based around our BAT consisting of a low energy pulse control, which signals to switch an actuator between two stable positions to digitally operate the valve, eliminating the need for side pocket mandrels. In this way, operators can vary injection rates and depths in real-time without production interruption and well intervention, and generate pressure and information data throughout the injection process.

“As such, the solution not only gives operators greater downhole control over gas usage but also delivers increased recovery rates. Recent modelling analysis of APOLLO conducted by a third party showed increased incremental production using APOLLO of over 1000 bopd, and in one scenario up to 110 per cent more production. The result will be to shift the economic operating point for wells with the installation of APOLLO bringing nonviable fields back into production, maximising the lifetime of existing oilfields, and providing real-time production support by monitoring the well’s flow conditions and how it adapts to fluctuating parameters,” he adds.

APOLLO has now been deployed in an onshore well in Oman in partnership with Petroleum Development Oman (PDO), which counts Shell amongst its major shareholders.

This is being undertaken as part of a normal workover programme for a high productivity well where the new intelligent gas lift method will be used to improve the production performance. Oman’s focus on EOR techniques has made it an ideal testing ground for APOLLO, with the first well test results expected to be

published shortly.

Whilst Camcon Oil’s focus is channelled on what it is confident will be highly positive results, the company is also preparing for the widespread launch of the APOLLO system. However, despite the huge opportunities presented, the product not only has to contend with the challenge of other artificial lift alternatives, but also the culture of the industry itself.

“In some cases, smaller incremental progress better suits the larger companies rather than the radical changes that APOLLO represents,” agrees Ian. “This enables these companies to maximise revenues from existing product lines by simply squeezing better performance out of them for short-term gain rather than tackling the more long-term challenges that might displace established and profitable product lines. Gas lift offers considerable advantages over other processes though such as Electrical Submersible Pumps (ESP) and multiphase boosting. These include its effectiveness offshore and in a wide range of well conditions; its ability to handle high volume, temperature, and pressure wells as well as abrasive elements; and the gas lift injection valves, which allow deeper injection into the tubing.”

In order to make these known to the market Camcon Oil is focused on building a suite of reference cases for the APOLLO concept that will help it in its business development programme. Longer-term the company aspires to establish itself as an accomplished, leading supplier of next generation production utilising its unique patented technology. “With our continuous focus on research and development, we are also looking at bringing other innovative BAT-related products to market in the oil and gas sector over the coming years. In addition, we would like to see APOLLO become the digital gas lift solution of choice in the upstream oil and gas market today,” concludes Ian.

Camcon Oil camcon-oil.com

Products Downhole tools

PROFILE

Motherwell Bridge

It is around one year

since Motherwell Bridge Ltd last appeared in European Oil and Gas, at a time when the business was maintaining its focus on developing in its key markets. Since then the company, which is widely recognised as the world’s leading manufacturer and maintainer of storage tanks, heat exchangers and gasholders, has continued to grow, cementing its position at the forefront of the industry.

In fact, in early 2013 the company, which is based in Lanarkshire, Scotland, announced that it had seen operating profit rise five-fold over the previous two years, largely due to its pursuit of a string of high-profile overseas contracts. For example, the business secured multi-million dollar contracts in Liberia in West Africa, Iraq, Turkey, Brazil, Mexico and India, which effectively saw its order book increase by around 80 per cent.

These projects followed the business strategy set out by Motherwell, which revolved around concentrating on engineering, design and construction of its core products – storage tanks, gasholders and heat exchangers, particularly in West Africa and the developing regions of Brazil and India. This point was reiterated by Russell Ward, chief executive, when last speaking to European Oil and Gas: “As a global player Motherwell Bridge’s focus today, as it relates to its large storage tank business, is largely on the UK, Middle East and West African oil and gas markets,” he confirmed.

“Separately, its gasholder business is focused primarily on the global steel manufacturing

industry with a specific emphasis on the Indian, South American and Far East markets.

Meanwhile, Motherwell Bridge’s heat exchanger business targets the North Sea and shore based operations of its main oil and gas clients. In order to further this, the company is also in the process of offering a similar service to those based in the Middle East, where it is currently engaged in supplying units in Iraq.”

As illustrated, the company’s core services extend across three key areas of business, but the projects it has won cover all of these. For example, in April 2013 the company finished the construction of its first tank on a $22 million project to renovate and build 22 oil storage tanks in Liberia. This represents a significant project for the business, which commenced working on the site during 2012 and has been contracted to modernise the boat offloading, pipeline and jetties on site, carry out all civil engineering

European oil & gas

leader

europeanoilandgas.co.uk

Global

59

60 European oil & gas

europeanoilandgas.co.uk

Of course, Motherwell Bridge’s reputation is in little need of further endorsement, with the company firmly recognised for the highest standards of quality, health and safety. Indeed, during its history the business has received a number of prestigious awards in these fields including the British Safety Council National Safety Award (achieved annually since 2006), RoSPA President’s Award (achieved in 2004 on receiving ten consecutive Gold Awards), RoSPA Order of Distinction (achieved in 2009 on receiving 15 consecutive Gold Awards), Membership of the British Safety Council, Nominated for Employer of the Year Scotland 2013, and quality and environmental management systems accredited to according ISO standards.

Naturally, achieving this level of quality relies heavily on the skill and competence of Motherwell Bridge’s employees – an area in which the company continuously invests. In March 2013, for example, the business further strengthened its team with the addition of key employees. It expanded it storage tanks division by adding two design engineers, a junior welding engineer and a trainee CAD designer to the design and engineering team. Clayton Walker, Motherwell Bridge’s gasholder division recruited a trainee design engineer during the same period, and a third new project manager, Alan Taylor, was added to the heat exchanger team.

These additions will only strengthen an already industry-leading team, continuing to drive Motherwell Bridge to new heights. In terms of growth the business is continuing to look to international projects, as well as maintaining its position domestically. During 2013 the company is looking to carry out high profile networking by appearing at various industry exhibitions and conferences to secure new leads. With the strengths of its name preceding it, there is little doubt that Motherwell Bridge will find a wealth of new work to propel it forward in the future.

We see significant opportunities in locations like Liberia, as there is still a tremendous amount of work to be done in the country following decades of civil war and we’re not afraid of tackling challenges in what can still be a difficult environment europeanoilandgas.co.uk

works, demolish redundant plant facilities, construct new bunding, lay foundation and construct new tanks, lay pipelines and install new pumps and electrical systems, and develop new instrumentation and fire fighting systems.

“We have been exploring opportunities in West Africa for some time and this contract with LPRC demonstrates our ability to undertake complex operations in new markets, building on our existing projects in Nigeria,” said Russell, speaking about the project on the company’s website. “We see significant opportunities in locations like Liberia, as there is still a tremendous amount of work to be done in the country following decades of civil war and we’re not afraid of tackling challenges in what can still be a difficult environment. But we haven’t gone into this job with our eyes closed. We’ve taken a pragmatic approach and have teamed up with people who know the market and can find the people and skills we need locally to make it happen. This project demonstrates what the modern Motherwell Bridge has to offer – the senior project management and technical expertise necessary to undertake even the most complex of tank storage projects – anywhere in the world.”

Closer to home, tank storage is also a growing market in the UK for Motherwell Bridge as in May 2013 the company was awarded a contract to design, procure and install the replacement floor and double deck floating roof for a storage tank at Essar Oil (UK)’s Stanlow refinery, which was formerly owned by Royal Dutch Shell.

Essar is conducting an ongoing investment programme at Stanlow and Motherwell Bridge will be handling the replacement of the floor and double deck floating roof on one of the facility’s 100,000 m3 storage tanks. Together with the recent international developments this project represents Motherwell Bridge’s continued success in its domestic market and is a strong endorsement of its capabilities, particularly in floating roof projects.

Motherwell Bridge

European oil & gas

PROFILE

61

Motherwell Bridge Ltd mbgroup.com

Services Manufactures storage tanks, heat exchangers and gasholders

future European oil & gas

europeanoilandgas.co.uk

Powering the

62

and production portfolio, led by entry into Namibia and Morocco. The company’s portfolio also includes projects in East Timor, Uruguay, and Equatorial Guinea.

Galp Energia’s Exploration and Production activity was started in Angola in 1982, at the Safueiro field, and since then it has added other projects in Angola to its portfolio, in which block 14 stands out for being the one of the only blocks under production.

However, Mozambique has proven to be a particularly exciting location. In 2011, the start of drilling activities in ‘area 4’ of the Rovuma basin offshore Mozambique revealed several natural gas discoveries of significant scale, and which exceeded pre-drill expectations.

At the beginning of 2013, and after drilling a total of eight exploration and appraisal wells in the block, the estimate of natural gas initially in place (GIIP) is 75 trillion cubic feet (Tcf).

The exploration consortium estimates that the

With a background that often MCAV MCAV is a reference company in the mechanical construction and erection field and is dedicated to steel structures, pressure vessels, tanks, industrial piping and boilers. Certified ISO 9001, ISO 14001, OHSAS 18001 and Stamp ASME S and U, to follow high performance requirements, MCAV can approach a whole set of major projects in Portugal and Europe. For more than a decade, MCAV has been a solid supplier of Galp Energia, having also integrated the Portuguese Refineries Reconversion projects.

intersects the most striking aspects in the history of Portugal, one of Galp Energia’s most distinctive traits are its Portuguese roots. The origin of the Galp Energia Group dates back to the early development stages of the domestic oil and natural gas industry, and the merger, acquisition and integration of several companies in different times, which enabled Galp Energia to grow and expand its business into the impressive conglomeration it is today - an integrated multienergy operator, present in all stages of the oil, natural gas and electricity value chain.

The Galp Energia group consists of the company Galp Energia and its subsidiary companies, among them, Petróleos de Portugal - Petrogal S.A., GDP – Gás de Portugal, SGPS, S.A., Galp Power, SGPS, S.A., and Galp Energia, S.A. Its activities cover exploration and production, refining and marketing, and gas and power. It is active at every stage of the oil and natural gas value chain and has ever-growing interests in renewable energy sources and markets. Furthermore, Galp Energia’s activities are expanding strongly worldwide.

In fact, Galp Energia's Exploration and Production activity is spread across four continents. The company focuses on three core areas – Brazil, Mozambique and Angola – but there have been major efforts to diversify its exploration portfolio both geographically and geologically. Thus, during the year 2012, Galp Energia added 16 new projects to its exploration

resources in reservoirs exclusively located in ‘area 4’ alone amount to 27 Tcf, which is particularly relevant since they provide more flexibility to the consortium in developing the project.

Another illustration of the company’s ambition to be at the forefront of exploration is its activity in around 20 projects in Brazil, where it is in partnership with oil operator Petrobras. The Santos basin is Galp Energia's main project in Brazil, and the Lula and Cernambi fields (ex. Tupi and Iracema) have estimated recoverable volumes of 8.3 billion barrels of oil and natural gas.

In June 2013 Galp Energia announced that the FPSO Cidade de Paraty had begun operations, which marked the start of the commercial production of Lula NE, in the presalt Santos basin, according to plan.

Cidade de Paraty has the capacity to process up to 120,000 barrels of oil and five million m³ of natural gas daily. The FPSO is anchored at a

in the development plan. The Lula field started producing in 2010 with the FPSO Cidade de Angra dos Reis, four and a half years after its discovery in 2006.

In addition, Galp Energia also reported more activity in Brazil in late June 2013, when it announced the Araraúna well, which was spudded on February 11, located in the BM-POT-16 concession, has detected hydrocarbons in the drilling mud via mudlog oil shows, thus proving the presence of hydrocarbons. Although there has been no commercial discovery, the fact that this well proved the existence of a hydrocarbon system increases the potential of finding a new play in the Brazilian Equatorial margin.

As the company’s Brazilian portfolio starts to materialise, Galp Energia is looking forward to a new era in the upstream business, as well as a sound downstream business, solid financials and sustainable and responsible growth. As it heads into the future, further exciting discoveries look certain to be around the corner.

As the company’s Brazilian portfolio starts to materialise, Galp Energia is looking forward to a new era in the upstream business, as well as a sound downstream business, solid financials and sustainable and responsible growth

Galp Energia galpenergiea.com

Services Energy company

europeanoilandgas.co.uk

water depth of 2120 metres, approximately 300 km off the coast, and will be connected to eight production wells and six injection wells. The new FPSO was chartered by the consortium of BM-S-11 to consortium Queiroz Galvão O&G and SBM Offshore.

The first well has the potential to produce 25,000 barrels per day, but for the first month of operations production will be restricted to around 13,000 barrels of oil per day, and will be gradually increased as the processing and natural gas reinjection systems are commissioned. The peak of production, of 120,000 barrels of oil per day, is expected to be achieved 18 months after its start-up, that is, in the second half of 2014.

This is the second out of ten definitive development modules for the Lula field (including the Iracema area) that are envisaged

Galp Energia

European oil & gas

PROFILE

63

64 European oil & gas

europeanoilandgas.co.uk

PROFILE

Gasunie

legacy infrastructure company, with a network that ranks among the largest high-pressure gas pipeline grids in Europe – it consists of 15,500 kilometres of pipeline in the Netherlands and northern Germany.

Each year, Gasunie transports about 125 bcm of natural gas, offering transport services via its subsidiaries Gasunie Transport Services B.V. (GTS) in the Netherlands and Gasunie Deutschland GmbH in Germany. In fact, Gasunie was the first independent gas transport provider with a cross-border network in Europe.

In addition to gas transportation, Gasunie also offers gas storage facilities (Gasunie Zuidwending), the pipeline to England (BBL) and the LNG terminal Gate at Maasvlakte. In addition, it facilitates and stimulates the green gas market through its subsidiary Vertogas.

Due to the reliability and strategic location of its network in relation to growing international gas flows, the Gasunie network forms the heart of what is known as the northwest European ‘gas roundabout’.

This roundabout consists of infrastructure belonging to GTS and Gasunie Deutschland, which serves both home markets, as well as linking to different ‘junctions’. Each junction either brings gas to the roundabout, such as through the Nord Stream and BBL pipelines, stores it in order to meet fluctuations in demand, or stimulates the market for green gas. Together, the whole system ensures that gas can be easily transported between Russia and the UK, from Belgium to Denmark, and even Qatar to Rotterdam as LNG. It is Gasunie’s Participations and Business Development unit, which makes these junctions possible – many with the support of various business partners.

In 2012 there was a significant sign that the European gas roundabout is playing an increasingly important role in the European gas market - trade on the Dutch gas trading exchange TTF (Title Transfer Facility) grew by almost 20 per cent. This spectacular growth further strengthened the leading position of TTF on the European continent. The gas prices on TTF now serve as a benchmark for the rest of Europe.

Echoing these positive results was Gasunie’s own 2012 annual report, which highlighted solid results for the organisation in that year.

Net profit amounted to 359 million euros, and operational activities in the fields of safety and security of supply also achieved good results. Total costs fell by two per cent in the past financial year, partly due to a multi-year efficiency programme.

On the basis of current insights, Gasunie expects revenue and results after taxes from regular operational activities for 2013 to be at

European oil & gas

Gasunie is a European gas

europeanoilandgas.co.uk

A strong

65

European oil & gas

europeanoilandgas.co.uk

PROFILE

66

Gasunie

a similar level as 2012. A strong management focus on efficiency will continue to be required to compensate for diminishing revenue due to regulatory effects.

Paul van Gelder, CEO and chairman of the executive board at Gasunie commented at the time: “We are proud of what we have achieved.

Our results provide a great foundation for the successful implementation of our long-term strategy, and enable us to keep serving our customers, and thus also the public interest, in the best possible way.”

Over the past two years there has been a raft of exciting partnerships, agreements and developments at Gasunie, including the signing of a joint declaration in 2012 between Energinet. dk (Denmark), Fluxys Belgium and Gasunie, which is aiming at 100 per cent carbon-neutral gas transmission in their networks in 2050.

In 2013 GRTgaz of France and Swedegas of Sweden joined the initiative. Gasunie believes that gas infrastructure is key to proactively help develop the solutions required for the realisation of a low carbon scenario for Europe.

Another noteworthy highlight is Gasunie’s involvement with the newly established North Sea Power to Gas Platform. This has been formed to further develop the concept of Power-to-Gas (P2G): the conversion of renewable power into gas. P2G will play an increasingly important role in Europe’s future energy system, as it reduces temporal surpluses of renewable power by converting these surpluses into gases. As these gases can be used for different purposes such as transportation, domestic heating, as feedstock for the chemical industry, and power generation, the potential value of P2G is considerable.

Furthermore, in 2013 Gazprom and Gasunie inked a document that stipulates co-operation between the companies in exploring the possibilities for the Nord Stream gas pipeline expansion, as well as setting up other infrastructure projects to secure gas supply for northwest Europe and the UK. In March 2013, Gasunie and IntercontinentalExchange, a leading operator of global markets and clearing houses, announced the launch of ICE Endex, following receipt of competition clearance by the Office of Fair Trading (OFT) in the UK and the declaration of no-objection from the Dutch Ministry of Finance. “We regard our agreement with ICE as an important achievement, because it serves all stakeholders in this market. Gasunie and ICE share a commitment to further develop a liquid,

transparent and secure gas market for customers in Europe and around the world. This is a positive development for traders, suppliers and consumers in the gas market,” commented Paul.

Just a month later in April 2013, 19 major transmission system operators (TSOs) from seven European countries, including Gasunie, announced the launch of the new PRISMA European Capacity Platform at the FLAME conference. From that day, day-ahead capacity at various European interconnection

points was offered through the platform.

The announcement of the TSOs came less than a year after signing a Memorandum of Understanding at 2012’s Flame Conference.

The creation of the PRISMA joint capacity platform is a major step towards creating the EU internal gas market. It proves that when European network operators work closely together towards a joint goal and bundle their experience, the involved partners can succeed in implementing the future European market rules two years ahead of their time.

It is clear that during his tenure at the company as CEO, Paul van Gelder has led Gasunie through a remarkable transformation, and kept the business on track through turbulent times. The company is now strong both operationally and financially, and Paul has decided to look for a new challenge. He commented: “Gasunie is a unique company with very professional employees. It has been an honour to lead this company and contribute every day to safe and reliable energy supply in the Netherlands and Germany, one of the most important pillars in our society and economy.

I’m convinced that Gasunie will continue to make a significant contribution to an energy mix that is not only cleaner, but also affordable in the long term.”

Due to the reliability and strategic location of its network in relation to growing international gas flows, the Gasunie network forms the heart of what is known as the northwest European ‘gas roundabout’

ILF Consulting Engineers ILF Consulting Engineers is proud to serve Gasunie with fullscope engineering support in the course of the extension of its gas transport network in Northern Germany.

ILF provides basic/detail design, permit engineering, cost estimation as well as support for procurement, construction, commissioning and final documentation for the realisation of numerous compressor stations, as well as pressure reduction and metering stations.

All projects are progressing at cost and schedule and ILF is delighted about the excellent co-operation with its client, Gasunie.

Gasunie gasunie.nl

Services Gas infrastructure company

knowledge Sharing

At a time

when supplies of ‘easy’ oil are perhaps falling away, Xcite Energy Limited is marking itself out as an appraisal and development company focusing on offshore heavy oil. The company believes that this area presents a niche for significant growth and value addition. Through its subsidiary, Xcite

Energy Resources Limited (XER), these activities have so far been focused on the development of discovered resources in the UK North Sea, namely the Bentley field.

“We acquired this field through the Promote Licence Round in 2003,” explains Charles LucasClements, director of strategy and business development. “We’ve pursued a methodical and progressive appraisal programme over the years, enabling us to bring oil to surface in 2007, through to delivering 250 million barrels of 2P reserves in 2013 after a highly successful pre-production extended well test (“EWT”) which was completed in September 2012. We also have peripheral assets and were awarded three adjacent blocks in the 27th Licensing Round last year.”

Looking at this activity in more detail, XER has actually successfully conducted three drilling programmes with five penetrations of the field, including sidetracks and laterals, since the licence award. The total investment to date has been around $350 million, approximately $250 million of which went into the EWT. “Throughout the EWT we gathered a vast amount of information, which together with new 3D seismic, has enabled us to increase our in-place volumes, revise our development plan and materially increase our reserves. It has required a long year of hard work to deliver, but the EWT has met and exceeded our expectations not only in its results, but also the quality and extent of data that was collected,” enthuses Charles.

In preparation for the EWT, XER expanded its corporate office to bring in necessary skills

europeanoilandgas.co.uk

Xcite Energy Resources

European oil & gas

PROFILE

67

Uncomplicate complex wells

On a recent project in the North Sea, Baker Hughes delivered a total solution—including well design and drilling and completion operations—for a well with two 10,000-ft laterals in a complex heavy oil reservoir.

Baker Hughes solutions deliver optimal multilateral wellbores.

Maximize formation contact while optimizing overall well economics with Baker Hughes solutions designed to plan and construct complex multilateral wells.

Š 2013 Baker Hughes Incorporated. All Rights Reserved. 38783 06/2013

Proven well design, drilling and completions technologies, and operational expertise deliver flawless execution at the wellsite and, ultimately, the highest quality wellbore.

Call Baker Hughes today and get the most out of your next multilateral project.

Advancing Reservoir Performance

bakerhughes.com

including the appointment of a new operations director, operations manager, and engineering manager. “I think that key to our success has been finding highly experienced people that can really contribute to the team,” notes Charles.

“As well as operations, we have been building up our engineering and well completion skills sets, based on the importance of drilling and operations going forward.”

The results of the EWT have been critical to planning the ongoing development programme, which is split into two phases – Phase 1 and Phase 2, covering the northern and southern areas of the field respectively. The development programme extends over approximately two years with current anticipation of first oil in late 2015, with the phases now being of a similar size, with Phase 2 beginning some five years after the start of Phase 1 and then both running concurrently from that point onwards for the 35 years of field facilities design life. The EWT has also proven up many of the engineering solutions and techniques to be utilised in the development plan, such as the use of an FSO to dehydrate the fluid.

Xcite Energy Resources

Certainly the industry seems to be pricking up its ears with regards to the progress the company has made in transforming heavy oil resources into viable development propositions europeanoilandgas.co.uk

Alongside this work, XER has been running a programme to identify enhanced oil recovery techniques (EOR). After lab work based on samples taken from the reservoir and aquifer, the company has shortlisted polymer injection as the most suitable EOR technique. It is also building a pilot programme into the first stage of development in order to prove the concept, and lead the way for a full EOR implementation in Phase 2.

The year ahead again looks busy for the business as it works to capitalise on the last decade of work in this challenging niche. In a further step forward, XER recently started the farm-out process, which it sees as a key part of the future financing strategy for the development of the field. “We also hope to expand the RBL facility based on the increased scope of the first phase development. These will trigger the full development programme,” notes Charles.

Certainly the industry seems to be pricking up its ears with regards to the progress the company has made in transforming heavy oil resources into viable development propositions, and it comes at a time when heavy oil projects are being advanced in the North Sea. Picking up the thread Charles adds: “In the process of executing the programmes so far we have developed an extensive knowledge, not only of the Bentley field and the engineering solutions needed to successfully commercialise a reservoir of this type, but also how to manage a significant offshore, heavy oil project. One of the key things in this industry is the sharing of knowledge when moving into new areas, and we are keen to do this with others just as they are keen to speak with us.”

Indeed it seems the Bentley field is just the starting point. XER has also been collecting licences in neighbouring blocks, most recently in the aforementioned 27th Licensing Round.

‘It is our belief that these prospects may contain a lighter oil which could be used as a diluent in the future, so the aim is to appraise these with a view to a tie back into Bentley as we go forward,” comments Charles.

“This forms part of our strategic plan for the next few years which is centred on selecting a suitable development partner, completing financing, and getting the Bentley field producing. We also want to prove the EOR techniques through the pilot programme, and implement the second phase of development, whilst continuing to look for other suitable opportunities,” he concludes.

European oil & gas

PROFILE

69

Xcite Energy Resources Limited xcite-energy.com

Services Appraisal and development

europeanoilandgas.co.uk

European oil & gas

70

Success for The full name of AFI

- ‘Alaa for Industry’ - is a perfect representation of how the company regards its customers and operations.

“Alaa is an Arabic word which is connected with ‘success’ and it encompasses a lot in terms of how we serve a variety of industry sectors with a vast range of products,” explained Brian O’Sullivan, CEO. “Our objective is to provide high quality, in-depth engineering solutions to industrial companies in the GCC region, with a strong focus on customer service.”

Founded in 1984, AFI remains a privately owned Saudi company. “We have grown to have 1000 employees based in 18 branches across four countries - Saudi Arabia, Bahrain, Kuwait and Qatar. We are financially a very strong company and we have ambitious aims to grow further over the next few years,” added Brian.

Although the range of services offered by AFI is too vast to list here, its main activities include: 66 Fluid power - hydraulics, pneumatics w Design/manufacturing of hydraulic systems, power packs, cylinders, seals and hoses w Supply and after-sales of components 66 Power transmission products – bearings, belts, chain drives, electric motors, gearboxes, etc.

66 Capital equipment w Truck mounted equipment w Foundation equipment

w Weighing & lifting products 66 Manufacturing of w Vacuum jetting tankers/super suckers w Hydraulic cylinders, power packs w Rubber and gasket products

AFI provides these and many other products to over 2000 customers in the GCC region, including renowned blue-chip names such as Aramco, SABIC, Qatar Gas, KNPC, Arcelor Mittal and Halliburton. Brian credits the diversity of the product range as one of the company’s main strengths, but also highlights several others: “We also cover the full lifecycle

PROFILE

Our message to any company, whether they are in engineering, drilling or servicing, if they are looking for an engineering or maintenance solution or a fluid, then they should contact AFI AFI afi.com.sa

Services Engineering products and services for hydraulics, pneumatics, transportation, power transmission and industrial equipment

europeanoilandgas.co.uk

facility where we undertake the refurbishment and repairs of products for a local company, which is active in the oil and gas sector.

“Both of those factories will be taking up a lot of our time this year in terms of getting them finished, and we are also expanding our workshops in Qatar, as well as working on ASME certification for pressure vessel manufacture.

“It is our target to double our turnover in the next three years and so far this year we are well on the way to achieving that objective. I think we are well positioned for the challenges and the engineering opportunities that present themselves in the oil and gas sector in the GCC and I believe there is more potential in this market.

“Our message to any company, whether they are in engineering, drilling or servicing, if they are looking for an engineering or maintenance solution or a fluid, then they should contact AFI. We can give professional assistance, access to a network of technical expertise available throughout the GCC region, and offer an exemplary standard of quality.”

European oil & gas

of products, so we distribute products, have manufacturing solutions in-house and offer aftersales services,” he said.

“We represent some of the leading brands, so our strategy is to represent the number player in the global market. So for example we represent Parker Hydraulics, ASCO Pneumatics, SKF Bearings and are an agent for DuPont.

“Another strong aspect of our business is our focus on quality. We have been ISO compliant for over 15 years and we have a very strong quality team. When a customer visits us, whether they are a local company, a multinational corporation or an EPC contractor, they are always overwhelmed by our dedication to this area.”

He added: “In the oil and gas sector this is obviously very important. So our approach is all about getting it right first time. This works handin-hand with our technical expertise and can-do attitude – companies know they can come to AFI for solutions to their technical problems.”

When it comes to the oil and gas sector specifically, AFI is a leading provider of loading arm installations and service and overhaul work for loading arms. “We represent Emco Wheaton for these products and we have been winning a number of contracts with Saudi Aramco with KNPC in relation to loading arm overhaul, supply and installation. Last year we did over $5 million worth of loading arm projects,” noted Brian. “A recent addition to our product line up is Ingersoll Rand air and hydraulic winches, which are used on oil platforms and refineries.”

He continued: “I think what our oil and gas customers want is a total solution, they want us to deliver on time, to the highest quality standards with the correct documentation and with proper backup and after-sales service. They return to AFI because we can provide that level of service and that coverage across the region.”

Brian sees this combination of strengths as the foundation of future accomplishments. “We want to continue to be successful in winning contracts with large scale industrial customers and develop expertise in new areas,” he said.

“So for example in the last three months we have won some significant maintenance, repair and overhaul (MRO) contracts with international corporations.”

In 2013 AFI is also focusing on a major expansion project, as Brian highlighted: “We are building two new factories, to meet the increasing demand for local manufacturing. And in fact, one of these factories is going to be a

AFI

71

success

European oil & gas

europeanoilandgas.co.uk

Compressed

72

Gas Compressors Ltd (GCL)

is a dependable, independent compressor packaging company, which specialises in the design, manufacture and commissioning of large and medium sized, custom built/bespoke gas compressor, booster and blower packages for worldwide use.

The foundation stone of the company is its flexibility, as it is not tied to any particular sub-vendor, compressor manufacturer or compressor technology, but instead supplies the most suitable type of machine for every project. Indeed, its top quality, unique, packages are a source of pride to GCL and it is careful to provide the customer with their exact requirements, including delivering on time and continuity of care throughout each project.

Founded as a small one man operation just 13 years ago by current managing director Rupert Easter, GCL today employs a team of 40 staff, which includes design, manufacturing and engineering personnel, with years of experience and the ability to optimise machine selection, and thereby allow customers to gain maximum economic advantage.

“The concept behind my founding the company still remains today,” confirmed Rupert.

“We design and build custom compressor systems for various applications, and we source components from all over the world, from lots of different manufacturers so that we can come up with the best technical solution for any given application. We use lots of different compression technologies in our machines including blowers, rotary vane-, screw-, reciprocating- and

centrifugal-compressors. We can design units to operate from vacuum to hundreds of bars of pressure, and with flow rates from 10 m3/h up to 100,000 m3/h. Typically our maximum power is 7.5 MW / 10,000 hp although larger is possible in certain types.”

This list of technology perfectly illustrates GCL’s company ethos, flexibility of choice.

“There aren’t really any other companies identical to us, specialising in custom design and totally different concepts,” said Rupert.

“I will design something that hasn’t been built before whereas competitors have pretty standardised packages. We do some of that but are winning more business in the one-off type field. So we will source items such as compressors from large, well known companies like GE, as well as smaller mechanical components, such as motors, pumps and electrical instruments, but all the process and mechanical design is done in-house, and we build the vessels, pipes and structural steel, perform the testing and create all the electrical control panel and power control panels.”

This sort of design-led bespoke package requires working closely with clients, and this is an area where GCL excels. “Once we have got an order, we work in partnership with a customer to come up with a completed design that we are happy with from a process and mechanical perspective and they are happy with how it fits into their footprint and what they want it to do,” said Rupert. GCL also ensures clean and clear communications between all parties and a methodology of teamwork from end user to

especially seem to be too tied up with politics.”

When he founded the company, Rupert contracted out fabrication to other companies but it was always his vision to bring this in-house. Today GCL has its own factory where his staff manufacture all vessels, piping, structural steel, controls and electrical and software under one roof. Rupert foresees further expansion on the horizon: “I would like bigger facilities, as we have got a 15,000 sq ft factory at the moment and are essentially finding that too small so are considering some sort of move, but staying close to where we are now. Ideally, I would like to build a brand new factory from the ground up, around five or six times bigger than this, designed to our exact specifications.”

He concluded: “This is our short-term ambition as there is so much growth and impetus in the market that I would like to be able to embrace it when it’s available. The number of jobs we could secure is substantial and we are talking large sums of money overall, so really these are quite exciting times for us.”

We can design units to operate from vacuum to hundreds of bars of pressure, and with flow rates from 10 m3/h up to 100,000 m3/h.

Typically our maximum power is 7.5 MW / 10,000 hp although larger is possible in certain types Gas Compressors Ltd gascompressors.co.uk

Products Bespoke gas compressor systems

European oil & gas

supplier ensuring precise, efficient and timely build and delivery. The team is available to speak with customers 24 hours a day when necessary, and always tries to respond within 24 hours to any query. It also provides maintenance, spare parts, training and local support.

This high quality service is in demand in both the oil & gas and power sectors, with typical applications for GCL products including: fuel gas boosting for gas turbines and gas engines, gas recycle, wellhead, associated gas, sour gas, vapour recovery, gas storage, boil off gas and pipeline gas. Its also produces machines for industrial gases, such as nitrogen, oxygen, CO2 and SF6.

Customers from around the world utilise these systems and GCL has a client list that features names such as Rolls Royce, INA, IGSA, Perenco, Jacobs Engineering, Salamander Energy and BP. One of its most recent projects is with John Zink, a flare gas recovery company, which is part of a very large development in Turkey. “We are manufacturing eight twin stage rotary vane

Gas Compressors

europeanoilandgas.co.uk

PROFILE

73

compressors for flare gas recovery for that contract and overall that is a massive scheme to be part of, and will take a year for us to complete,” said Rupert. “Usually we estimate six months for our orders to go from design to delivery, which is very fast for our industry - but this one is more involved and will take more time.”

Turkey is an area where GCL is seeing a lot of business activity, as is Russia. “We are getting a lot of enquires from Turkey, and the country seems to be buzzing at the moment so we are keen to tap into that,” added Rupert. “Although to be fair the market is strong generally everywhere currently, there are a large quantity of projects going ahead around the world in which we could be involved. We would also like more work on the Indian subcontinent but that hasn’t quite come to fruition as tenders in India

PROFILE

Essar Oil

Essar Oil is a subsidiary of Essar Energy,

Below Iftikhar Nasir, CEO of E&P

the London-listed oil and gas and power company, which currently has 741,000 barrels per day of refining capacity, mainly at its large refineries at Vadinar, India and Stanlow, UK. Essar Oil also has a growing exploration and production business with large potential, including a global portfolio of 15 onshore and offshore oil and gas blocks spanning approximately 35,000 square kilometres. Essar Oil has a network of over 1400 fuel retail outlets across India, with a further 200 in various stages of commissioning, while on the power side, Essar Energy also has a generation portfolio currently totaling 3910MW of capacity, with a further 2890MW in various stages of construction.

Essar Oil’s business is very much focused on India, and although its exploration and production (E&P) activity includes blocks in Nigeria, Madagascar, Indonesia, and Vietnam, the current focus is on developing its assets within India. Overall, the E&P portfolio equates to 2.1 billion barrels of oil equivalent of reserves and resources. “The assets outside of India are in the conventional space, so classic oil and gas exploration, whilst in India there is a mix of unconventional and conventional prospects,” describes Ifty Nasir, CEO of E&P. “On the conventional side we have four blocks, one is in offshore Mumbai, one in the Cambay Basin, and a couple in Assam to the east of the country. When it comes to the unconventional hydrocarbons these are

predominantly in the form of coal-bed methane (CBM) located in the east,” he continues.

Although all of Essar Oil’s E&P businesses are considered important, at present more attention is being given over to India where the company is currently developing its first coal bed methane asset, the Raniganj block in West Bengal. “CBM has been around for a long time, but there are very few true economic developments in India,” elaborates Ifty. “Aside from our Raniganj block, the other producer in India is Great Eastern Energy Corporation Limited, with their block a little further to the west. Theirs is a more paced and steady production growth, typical for CBM projects. Raniganj has a far faster development phase that should have a production profile not dissimilar to a conventional oil and gas field.

“We are achieving this through a much higher rate of drilling and hydrofracturing than would normally be the case in CBM developments, having drilled over 100 wells in the last year and with plans to do a couple of hundred more in the coming one. This results in efficiencies that come with a critical mass of activity, and accelerated production, which improves the economics,” he continues.

The second project that Essar Oil is pursuing is the conventional oil block in the Cambay Basin. “As an oil prospect it’s probably not the most exciting, but below the oil horizon we believe there is serious shale gas potential, which we’ll also be looking to develop in due course,” highlights Ifty. “This is not part of the reserves

European oil & gas

potential

europeanoilandgas.co.uk

Exploring its

75

European oil & gas

europeanoilandgas.co.uk

PROFILE

76

Essar Oil

that are in the books, it’s something that is pretty new and that we believe has great potential.”

He continues with how Essar Oil will be looking to maintain a mix of both unconventional and conventional assets in its E&P portfolio long-term: “It’s important to have both sides because there’s the potential for cross-pollination of ideas, and optimisation. This is particularly true if we are looking at a future where the government allows what they call a simultaneous development. This is a policy that is in progress, and essentially enables an operator to not only exploit a certain set of horizons or resources, be that coal, oil or shale for example, but to develop all the hydrocarbons within that geographic location.”

That said Essar is also looking to become one of the leaders in the unconventional industry in India, and is already well thought of in that respect. This aspiration can be seen in the company’s formation of a new CBM and Unconventional Resource centre in West Bengal to support the unconventional sector. This includes exploring specialised types of drilling and hydrofracturing, as well as managing surface risks and minimising environmental impacts.

A number of other crucial developments have been taking place in India as of late. These include moves by the Indian Government to develop a policy on shale oil and gas, which has been in the works for sometime, and announcements that Ifty believes are of importance to the progression of the business: “The government has just declared the new gas price policy which has moved from $4.2 per million British thermal units (mmbtu) to $8.4 per mmbtu. It’s a policy, but a move which results in a far more competitive price both for the producer and consumer. Simply put, the price is derived through a combination of international gas prices in established markets, where gas to gas competition already exists, and landed LNG prices. This will be applicable from April 2014,

however if it were effected today, it would result in a gas price of circa $6.83/mmbtu based on assumed regression of the Rangarajan report recommendations upon which this gas policy was based. This policy should help encourage more players into exploring and producing gas in India, thereby reducing the average cost of gas in the country.

“This should incentivise investors to come into India and start exploring and developing the gas reserves in particular. India is very short on gas, with circa 60 per cent currently imported, which puts pressure on foreign exchange reserves, as well as making it vulnerable to market spot price which is presently over $16.

As such developing oil and gas in-country does a number of things. Firstly it presents a source of gas that is significantly cheaper than that which is imported. It will also help India to develop this sector through both domestic and foreign direct investment,” he notes.

Increasing amounts of gas also enables energy consumers in the country to switch over from other types of fuel such as diesel, which are more expensive and more environmentally damaging, making businesses more competitive.

Likewise with methane considered the cleanest of all the hydrocarbons, this shift will allow India to progressively move towards a lower emission environment.

Reflecting on the direction of Essar Oil’s E&P business in the coming years, Ifty describes how it closely reflects its current attention split: “The near-term focus is very much about exploiting and developing the assets we currently have in our portfolio, building a solid platform/ foundation on which to build new opportunities.

This includes being able to bring other partners into the assets we already hold through farmdowns and strategic partnerships in and outside of India. It also allows us to explore the potential for other geographies through joint venture, or farm-down partners that may come to work with us in India.”

Essar Oil will be looking to maintain a mix of both unconventional and conventional assets in its E&P portfolio long-term: “It’s important to have both sides because there’s the potential for cross-pollination of ideas, and optimisation

Essar Oil essar.com

Services Oil refining and retailing, and producer of oil and gas

european

from exploration to end user Schofield Publishing Ltd 10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU T: +44 (0) 1603 274130 F: +44 (0) 1603 274131 Editor Matt High mhigh@schofieldpublishing.co.uk Sales Manager Rob Wagner rwagner@schofieldpublishing.co.uk

europeanoilandgas.co.uk