EIC Monthly News August 2013

EIC Monthly News August 2013

Photo Ă˜yvind Hagen/Statoil

www.the-eic.com

The EIC Chief Executive

The Chief Executive

Contents

August 2013

The Chief Executive 2 Welcome to the August edition of the Monthly News. Along with all this Sector Analysis 3 glorious weather we are happy to confirm that energy project spend is on the up, as reflected in our quarterly report EIC Monitor. In Q2 2013 (1 April-30 EIC Monitor 4 June 2013) there has been growing investment activity across the global energy project landscape, with overall figures showing a 28% increase in EICDataStream 6 total estimated investment since the last quarter, a total of US$342 billion.

The renewables sector fared particularly well with a 44% increase in the Training Services 7 total potential investment value of new projects since Q1 2013. Renewables is New EIC Members 8 an important and growing area of the UK energy industry and the EIC will be taking the opportunity to address this, along with the thermal and nuclear power Member News 10 industries, at EIC Connect Energy in Manchester on 12-13 November 2013.

Speakers already confirmed are Centrica, Iberdrola, EDF Energy, Siemens, UK, Overseas & Training 14 Jacobs and AMEC, along with at least four major international operators, who will brief delegates on project opportunities across mainland Europe, Russia, Exhibitions/National Events 15 UAE, Saudi Arabia, Brazil, India and Japan. If you would like to exhibit or attend as a delegate, please visit: www.eicconnect.co.uk/energy/Exhibit.aspx for Overseas Exhibitions 16 more information.

Offshore Europe 2013 18 As part of EIC’s continuous improvement programme the EIC has entered the world of social media and is now on Twitter and LinkedIn. The two channels UK News 20 are aimed at providing our members with up-to-the minute updates and announcements, prompting discussion about all the latest energy developments, Asia Pacific News 22 and facilitating online business networking. Please follow @TheEICEnergy on Twitter and join the Energy Industries Council (EIC) LinkedIn Group to keep China News 23 abreast of all the latest from the EIC and multiply your business connections.

Additionally the new EICDataStream search page is also now live, with an North America News 24 intuitive and simple user interface that features the ability to search key phrases, South America News 25 auto-complete on text fields, and offers a pre-search project count. The search page now also provides enhanced selection of bidding and contract award activity Middle East News 26 and an option to save a search for future use. Turn to page 6 to find out more.

I am also delighted to announce that our independent judging panel has reached Designed and published by a decision on the member companies that have been shortlisted for the first EIC The EIC 89 Albert Embankment Award for Supply Chain Excellence. We received an exceptionally high level of London SE1 7TP entries and these have now been whittled down to seven member companies: Tel +44 (0)20 7091 8600 • Cape Industrial Services Fax +44 (0)20 7091 8601 • Elfab Email info@the-eic.com Web www.the-eic.com • Flexitallic • Greene Tweed & Co Follow @TheEICEnergy on Twitter • Hempel • Lloyd’s Register Join the EIC LinkedIn Group • Stork Technical Services The companies are all to be congratulated on reaching this stage and have submitted excellent engineered solutions, products and services that demonstrate superiority within the supply chain. The winner will be announced at this year’s EIC National Dinner at the world-famous Natural History Museum on 10 October. If you haven’t already booked your table, details are available in the Full Events Diary at: www.the-eic.com I would like to take the opportunity to personally thank all companies who entered the competition for their wellconsidered submissions. The standard of entries was particularly high, a telling indicator, I think, of the high-end expertise and innovative spirit of the UK supply chain.

And finally, we are making final preparations for Offshore Europe, the largest oil and gas event outside of North America, taking place at the Aberdeen Exhibition and Conference Centre on 3-6 September 2013. The EIC is once again the biggest single exhibitor, where 42 innovative UK companies will showcase products, services and technologies that are vital to meeting the challenges of decades of North Sea exploration and production ahead.

The EIC’s Head of Oil & Gas and EIC regional staff will be available on the EIC stand, along with members of the EIC’s membership team, to answer any questions. There will also be live demonstrations of the enhanced EICDataStream throughout the event.

I would also like to extend an invitation to all EIC members attending Offshore Europe to join us on the EIC stand for a special drinks reception on Wednesday 4 September at 4pm-5pm, to celebrate 70 years of serving the UK’s energy supply chain. Claire Miller, Chief Executive (Interim) www.the-eic.com

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August 2013

EIC Sector Analysis

Sector Analysis

Buoyant prospects for floating LNG The demand for liquefied natural gas (LNG) has increased exponentially over the last decade and is expected to account for around 35% of global natural gas demand by 2025. In the race to keep up with demand, many projects have been driven to the point of economic viability through various cost increases, most notably in Australia. Now LNG developers are looking to floating liquefaction technology as a means of optimising supply whilst minimising investment.

While a number of FLNG projects are planned around the world, Asia Pacific has emerged as the front-runner to host the first of these challenging projects. Indonesia, Malaysia and Papua New Guinea each have proposed projects at various stages of planning. However, Australia in particular can anticipate a number of FLNG projects.

Pressure to address the escalating costs of onshore plants has become a major issue in Australia, where of seven onshore LNG plants under construction, more than half have announced cost blowouts ranging from 15% to 40% above the original costs. Project cancellations are now a stark reality with plans to expand existing facilities put on hold.

Operators are now turning to FLNG technology as a more economical solution to continue LNG development in the country by tapping into clusters of smaller, more remote fields, which for a range of reasons, are not economically viable for onshore developments. Indeed analysts have speculated that FLNG projects could shave up to 25% off plant development costs, with savings coming primarily from the lack of subsea pipelines and correspondingly less labour. This can mean faster, cheaper, more flexible development and deployment strategies for resources that were previously uneconomic, or constrained by technical or other risks.

At least eight projects have been proposed offshore Australia totalling over 25 Mtpa of capacity, almost half of global FLNG developments. One facility is already under construction, Shell’s 3.6 Mtpa Prelude facility, soon to be the world’s largest floating structure. Meanwhile a further three projects are advancing in their development with PTTEP’s Cash Maple (2 Mtpa), Petrel’s Bonaparte (2.5 Mtpa) and the largest of all, ExxonMobil’s Scarborough (6 Mtpa), all undergoing pre-FEED. The list is set to continue growing with Woodside’s Browse LNG project understood to be considering FLNG technology after the onshore concept was judged uneconomic in April this year.

Like any new technology, FLNG is likely to be capital intensive to deliver and operate particularly in the initial project development stage. FLNG also faces local incountry challenges as governments see LNG projects as a means to develop their infrastructure and create jobs.

Already concerns are being raised by labour unions in Australia about plans to use FLNG platforms closer to shore instead of building a plant on land. www.the-eic.com

Shell’s Prelude facility

Can FLNG projects achieve the local content requirements that governments seek, especially as a key advantage of FLNG is that the vessels can be constructed in specialised shipyards, avoiding local costs of development and potentially speeding up the project?

Can the cost savings be achieved? Will there be cost overruns as developers start implementation?

But Australia is just half the story, other projects are underway throughout the world including two already under construction; Pacific Rubiales offshore Colombia (0.5 Mtpa) and Petronas Kanowit offshore Malaysia (1.2 Mtpa). North America is also advanced in its plans for FLNG, with Excelerate Energy, another major player in the FSRU market, completing the FEED on its Lavaca Bay project (2 Mtpa). Israel also plans to enter the FLNG market with its Tamar Floating LNG Production Platform (3 Mtpa).

So what’s next for FLNG? Many believe that floating liquefaction will follow in the footsteps of its counterpart, floating regasification, under which select contractors have developed a range of ‘off the shelf’ FSRU solutions catered to serve as an entry solution to the LNG market for smaller volumes of LNG imports.

However this strategy does not seem to have been adopted across the floating liquefaction industry just yet, with operators deciding to implement different development plans. Hoegh FLNG anticipates the market demand will lie with small to mid-size floating LNG vessels. Meanwhile Shell is working on a Prelude-like design for lean gas fields which is expected to have a capacity of 5.3-5.5 Mtpa.

Although still in its infancy, there is growing momentum behind floating liquefaction and the need for new technology to access and move remote deep water gas to market. FLNG is a ground-breaking technology and is here to stay. That said, its impact on overall LNG production will be limited and by 2025 could represent only 5-10% of total LNG production globally.

Alex Field, Sector Analyst, Midstream Tel +44 (0)20 7091 8629 Email alex.field@the-eic.com

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August 2013

EIC Monitor

EIC Monitor

Claire Miller, Chief Executive (Interim), commented: “Overall, figures this quarter indicate that the energy industry is thriving with a significant 28% rise in proposed project spend compared to the first quarter of 2013, albeit with a small decrease in project numbers.

Performance in the midstream and downstream sectors has been particularly impressive as the growing level of natural gas recovery worldwide is fuelling a rise in LNG, petrochemical and associated pipeline projects.”

The latest EIC Monitor report shows growing investment activity across the global energy project landscape in Q2 2013, with overall figures showing a significant rise in total estimated investment since the last quarter. The estimated investment value of new projects announced during the last quarter (Q2: April-June 2013) across the global energy supply chain has risen significantly to US$342 billion, a 28% increase compared to Q1 2013, and a 23% increase on Q2 2012, while the total number of projects is down just 7% on last quarter.

Summary of Q2 2013 new projects by number and value The graphs below show the total number and value of new projects across the global energy supply chain for Q2 2013 and the previous four quarters.

tracks nearly 10,000 projects proposed or under development in the global energy industry and provides a barometer, broken down into oil and gas (upstream, midstream, downstream), renewables, and the nuclear and conventional power sectors. Data is analysed by the number and value of new (both active and proposed) projects recorded by the EIC each quarter.

Key highlights of Q2 2013 report 1 April-30 June 2013 • Overall this quarter, there were 386 new projects announced across the global energy supply chain with an estimated total value of US$342 billion, compared to 417 in Q1 2013 totalling US$267.5 billion and 401 new projects in Q2 2012 worth US$277.8 billion.

• The upstream sector has seen an increase of 3% in the total potential investment value of new projects this quarter, rising to US$48.8 billion from US$47.4 billion last quarter, with a 6% decrease in the number of new project announcements since Q1 2013.

• In the midstream sector there has been a 60% increase in the total potential investment value of new projects in Q2 2013 to US$88.3 billion, rising from US$55 billion in Q1 2013 with a 5% decrease in the number of new projects.

• In the downstream sector, the number of new projects has increased by 76% since Q1 2013, and the total potential investment value has increased an impressive 206% from US$34 billion in Q1 2013 to US$104.3 billion in Q2 2013.

In nearly all cases newly proposed projects must first undergo various planning and consent approvals which may take several years. Also, early stage proposals do not necessarily have financing agreed and in place. Thus there will always be a proportion of projects that do not gain consent and/or finance.

• The renewables sector has seen a 44% increase in the total potential investment value of new projects, from US$43.1 billion in Q1 2013 to US$62.2 billion this quarter, with a 6% decrease in the number of new project announcements since Q1 2013.

• In the power sector, the number of new projects has decreased by 40% since Q1 2013, and the total potential investment value has decreased 56% from US$87.8 billion in Q1 2013 to US$38.5 billion in Q2 2013.

energizing your business www.the-eic.com

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August 2013

EIC Monitor

Analysis by Sector

Upstream There have been 63 new projects in the upstream sector totalling US$48.8 billion in Q2 2013. In comparison there were: • 67 new projects totalling US$47.4 billion in Q1 2013.

• 46 new projects totalling US$32.5 billion in Q2 2012.

Canada was a hotspot of activity this quarter, where five projects were announced with a combined estimated investment value of US$25 billion, accounting for more than 50% of the total potential investment value in this sector. Three of these projects are proposed oil sands expansion projects in Alberta, the largest of which is the US$13.8 billion Frontier oil sands mine (Phases 1 and 2) in the Athabasca oil sands region.

Midstream There have been 72 new projects in the midstream sector totalling US$88.3 billion in Q2 2013. In comparison there were: • 76 new projects totalling US$55 billion in Q1 2013.

• 65 new projects totalling US$32.3 billion in Q2 2012.

The USA and Canada remain hotspots of activity in the midstream sector, joined by Russia with the high value US$15 billion Sakhalin LNG project proposed by Exxon Mobil and Rosneft.

The largest project this quarter is the proposed US$35 billion Kitsault energy corridor and FLNG export terminal to be located in British Columbia, Canada.

Downstream There have been 67 new projects in the downstream sector totalling US$104.3 billion in Q2 2013. In comparison there were: • 38 new projects totalling US$34 billion in Q1 2013.

• 54 new projects totalling US$61.5 billion in Q2 2012.

The hotspots of activity this quarter are India, Russia and the USA, together accounting for just over 40% of the total potential investment value in this sector. In the USA, there were 24 projects worth a total potential investment of US$7.8 billion as the gas glut from the shale boom continues to spur the development of petrochemical plants.

Renewables There have been 116 new projects in the renewables sector totalling US$62.2 billion in Q2 2013. In comparison there were: • 123 new projects totalling US$43.1 billion in Q1 2013.

• 125 new projects totalling US$55.6 billion in Q2 2012.

The hotspots of activity this quarter are Canada, Germany and USA, where a total of 14 projects were announced with a combined total potential investment value of US$18.4 billion. The global hydropower sector fared particularly well this quarter with 15 projects proposed, worth a total potential investment value of US$38.5 billion. The largest is the US$10.2 billion Conawapa hydropower generating station in Manitoba, Canada.

Power There have been 68 new projects in the power sector totalling US$38.5 billion in Q2 2013. In comparison there were: • 113 new projects totalling US$87.9 billion in Q1 2013.

• 111 new projects totalling US$95.9 billion in Q2 2012.

Turkey, Brazil and USA were hotspots of activity this quarter, where a total of 17 projects were announced with a combined total potential investment value of US$14 billion. The largest development this quarter is the proposed US$3 billion San Onofre nuclear decommissioning project in California, USA. www.the-eic.com

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August 2013

EICDataStream

The new and enhanced EICDataStream search page goes live!

As part of our continuous improvement programme the new version of the EICDataStream search page is now fully active and includes the following: • Pre-search project count; • Enhanced selection of bidding and contract award activity; • Easier selection of multiple criteria/clients; • The ability to search the entire database for keywords; • Autocomplete on text fields; • Simpler selection of regions, countries and localities of projects; • The ability to reproduce the last search; • Preferences saved automatically based on the last search.

Check out the tutorials if you need any help!

The results summary and other functions are unaffected but any questions please email: membership@the-eic.com The EIC has also launched a useful glossary available at: www.the-eic.com/EICDataStream/EICDataStreamGlossary.aspx www.the-eic.com

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August 2013

EIC Training Services

Training Services Technical Workshop

Introduction to FPSOs 1 August 2013 Denmore Technologies Ltd, EIC London This course is suitable for those new to the industry or for non-technicals who would like an overview of FPSOs. The course will cover how the FPSO concept has developed in the past 30 years, what constitutes an FPSO in terms of the host facility for production of an oil field and the basic design of the FPSO vessel. Participants will also be made aware of the motion envelope of an FPSO and how this influences the design of the mooring system, as well as understanding how a subsea oil field is connected to an FPSO.

Industry Overview

Industry Overview

Industry Overview

New for September Management Course

Fundamentals of Oil and Gas 7 August 2013 EIC London The course takes the form of five modules to introduce the participants to the fundamentals of the oil and gas industry. The sessions follow the molecules through their journey from wellhead to a range of diverse applications.

This will include the search for oil and gas, its extraction, processing, transportation and refining. It will also examine where the oil and gas industry is going in terms of future developments. The course is suitable for graduates and other newcomers to the industry; people from technical, non-technical and commercial backgrounds who have limited experience and wish to improve their familiarity with some of the processes involved.

Fundamentals of Offshore Oil and Gas 6 August 2013 EIC London This course introduces the basics and terminology of offshore exploration and production development to new employees or non-technical staff employed in service companies or those who require an understanding of this important industry. This one-day course provides a comprehensive overview of offshore oil and gas development. The day will cover the formation of oil and gas, the history and current exploration and production methods, current solutions to deepwater, arctic, seismic and other environmental challenges, and the relationships between international oil companies and national oil companies.

Fundamentals of LNG 14 August 2013 EIC London This course is suitable for suppliers to the LNG industry and will provide a broad knowledge of the processes involved and the technical/commercial issues affecting the business. Managers with specific knowledge of parts of the LNG business who attend may gain a broader understanding of the overall LNG value chain. Finally, new entrants to the LNG business will find this course beneficial for an understanding of scope and size of the business and the activities involved. The course provides an understanding of the scope and size of the LNG industry, the value chain elements, the basic technologies involved, a commercial understanding of the value chain elements and the complexities involved in developing an LNG project. The supply/demand overview provides an understanding of how the industry has developed and the opportunities and constraints on future development of the LNG industry and the challenges it faces.

Presentation Skills 17 September 2013 EIC Aberdeen

Technical Workshop

Introduction to Trace Heating 18 September 2013 Thermon UK Ltd, EIC Billingham

Management Course The Effective Manager 23-24 September 2013 EIC London

The majority of EIC training courses are CPD certified. Please ask for more details.

If you would like further information on any of our courses or would like to arrange ‘in-house’ training at your offices, contact: ally.leboutillier@the-eic.com www.the-eic.com

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August 2013

New EIC Members

New EIC Members New Primary Member

New Primary Member

Diamond House, Diamond Business Park Thornes Moor Road Wakefield WF2 8PT Tel +44 (0)1924 378 222 Fax +44 (0)1924 366 250 Email andygunnell@deborahservices.co.uk Web www.deborahservices.co.uk The Nominated Representative is Mr Andy Gunnell, Business Development Manager Industrial Services.

Deborah Services Limited, a member of the Siteserv Group, is a leading provider of industrial services across the UK and Ireland. Their Industrial Services Division specialises in access solutions, scaffolding, rope, mechanical or non-conventional; insulation; blasting and coating; fire protection; asbestos management; cleaning and decommissioning in power generation, nuclear, petrochemicals, pharma-chem, industrial chemicals, manufacturing, food, offshore and marine. Over 45 years of experience and safe working has been recognised with nine consecutive RoSPA Gold Medals and the 2013 ECIA Major Contractor RISE (Recognising Initiative in Safety Excellence) Award. They are accredited to international standards ISO9001; ISO 14001 and OHSAS 18001.

Scotstown Moor Base Bridge of Don Aberdeen AB23 8NN Tel +44 (0)1224 822 822 Fax +44 (0)1224 822 299 Email lisa.simpson@icr-world.com Web www.icr-world.com The Nominated Representative is Ms Lisa Simpson, Marketing Co-ordinator. ICR Integrity, an international integrity and maintenance group of companies, brings a unique combination of skills and experience. Underpinned by their successful portfolio of services: engineered repair solutions – through their composite technology, Technowrap™, mechanical solutions, integrity monitoring solutions and chemical injection equipment. This enables ICR Integrity to offer cost benefits, and provide dedicated support and expertise in a broad range of integrity and maintenance associated services, on and offshore, new and old.

ICR Integrity

Deborah Services Ltd

New Global Member

IPU Group

Churchbridge Oldbury West Midlands B69 2AS Tel +44 (0)121 511 0400 Fax +44 (0)121 511 0430 Email david.caddick@ipu.co.uk Web www.ipu.co.uk The Nominated Representative is Mr David Caddick, Engine Starting Division Director. IPU Group supplies hydraulic and pneumatic starting systems to the oil and gas, power generation, marine and mining industries; capable of starting diesel and gas engines up to 200 litres.

Their starters can be ATEX approved for use in hazardous areas and comply with most classifications and approvals.

The IPU Fuel Conditioning range will keep diesel fuel clean, preventing critical back-up power failure and IPU’s Oil Conditioning systems (EOLS), will dramatically reduce engine running costs by extending drain intervals by up to four times. IPU’s live, accurate trend management software packages remotely monitor equipment.

New Global Member

DLA Piper UK LLP

3 Noble Street London EC2V 7EE Tel +44 (0)20 7796 6217 Fax +44 (0)20 7796 6666 Email simon.palmer@dlapiper.com Web www.dlapiper.com The Nominated Representative is Mr Simon Palmer, Partner. DLA Piper has extensive experience in advising in a wide range of energy related transactions, projects and disputes in the UK and internationally.

New Primary Member

Eldon Electric Ltd

Rother Way, Hellaby Industrial Estate Rotherham, South Yorkshire S66 8QN Tel +44 (0)1709 701 234 Fax +44 (0)1709 701 209 Email nick.cowley@eldon.com Web www.eldon.com The Nominated Representative is Mr Nick Cowley, Oil & Gas Business Manager. Eldon is a global manufacturer of comprehensive standard and customised enclosure solutions for the industrial and building markets. Founded in 1922, Eldon has satisfied customers with its quality, cost efficient enclosure solutions for power and distribution, machines, and automation and control applications. They work hard for their customers by listening and responding to their enclosure, accessory, technical assistance, project management and service requirements. www.the-eic.com

New Primary Member

Lionweld Kennedy Flooring Ltd

Marsh Road Middlesbrough North Yorkshire TS1 5JS Tel +44 (0)1642 233 291/245 151 Fax +44 (0)1642 224 710 Email richard.brine@lk-uk.com Web www.lk-uk.com The Nominated Representative is Mr Richard Brine, Business Development Manager. Lionweld Kennedy is the major supplier of Open Grid flooring or gratings for low maintenance pedestrian through to heavy wheeled loading 8

August 2013

New EIC Members requirements. Lionweld Kennedy also supplies stair treads, standard handrail through to welded heavy duty offshore barrier handrail, gates, ladders and other secondary metalwork access fabrications in carbon steel/GRP/stainless or aluminium. Often perceived as experts in their field, technically strong and primarily offering packaged project business as the secondary metalwork partner covering detail design, UK manufacture and fabrication, unique piece ID, full traceability, ITP/MRB/Doc packs supplying a quality service globally to often repeat key clients of more than 10 years.

The Nominated Representative is Mr Richard Scott, Divisional Director. United Insurance Brokers Ltd (UIB) is an independent, international insurance and reinsurance Lloyd’s broker with headquarters in London. The UIB team of 400 people embraces 20 nationalities, offers fluency in 16 languages and energy expertise via their business partners in over 70 countries. Independence means that they can offer strictly impartial advice and be unusually responsive to new opportunities. UIB’s reputation relies on providing innovative solutions, competitive terms and broad levels of coverage in all major business lines as a result of which UIB is actively growing in the world’s emerging markets.

New Global Member

Permasense Ltd

New Global Member

Century House, 100 Station Road Horsham RH13 5UZ Tel +44 (0)20 3002 3672 Email tom.fuggle@permasense.com Web www.permasense.com The Nominated Representative is Mr Tom Fuggle, Business Development Director.

Permasense supplies complete sensor-based solutions for remote continuous corrosion monitoring based on wall thickness measurement, providing asset and integrity managers with real time information of how their infrastructure is coping with the demands placed upon it. Combining market knowledge, technical expertise and innovative solutions Permasense’s tried and tested monitoring systems have been designed in partnership with oil refiners and upstream operators.

Vikoma International Ltd

Kingston Road, East Cowes Isle of Wight PO32 6JS Tel +44 (0)1983 200 560 Fax +44 (0)1983 200 561 Email gdownie@vikoma.com Web www.vikoma.com The Nominated Representative is Mr Guy Downie, Sales & Marketing Director. Vikoma is a world leader in the design and manufacture of oil and chemical pollution control systems. The Vikoma brand name has an unequalled reputation in the global oil spill industry for developing innovative, high quality, high performance and reliable products to deal with the full range of oil response scenarios.

Vikoma’s product portfolio includes a comprehensive range of oil spill containment booms manufactured from quality neoprene and polyurethane for deployment offshore, near shore and inland. Vikoma is committed to providing first class support services from maintenance to training; Vikoma also provides IMO and tailor-made courses to meet individual customer requirements.

New Global Member

Tipper Engineering Ltd

Saville House Middlemore Lane West Aldridge WS9 8BG Tel +44 (0)1922 457 799 Fax +44 (0)1922 742 697 Email graham@tipperengineering.co.uk Web www.tipperengineering.co.uk The Nominated Representative is Mr Graham Dent, General Manager. Established over 40 years, Tipper manufactures and stocks the full range of bolting products regularly utilised by the offshore, chemical, power and allied industries. With large stocks fully covered by ISO 9001 accreditation and a flexible approach to customer requirements, and the deadlines the industry regularly has to adhere to, Tipper is successful at servicing client’s requests. Their approach to client service is based on: quality; on time delivery performance; competitive pricing; comprehensive stock range; 24 hour call out service; full 3.1 certification, 3.2 certification also available (if requested at enquiry stage).

New Primary Member

Wey Technology Ltd

Suite 9.02, Exchange Tower 1 Harbour Exchange Square London E14 9GE Tel +44 (0)20 7531 0380 Fax +44 (0)20 7515 5897 Email clark.ballantyne@weytec.com Web www.weytec.com The Nominated Representative is Mr Clark Ballantyne, Managing Director. With a control room solution from Wey, operations/IT managers, operators and users enjoy maximum security and a complete overview. It has never been easier to control systems and display information.

With intuitive user interfaces, Wey systems provide the ideal basis for modern workplaces, facilitating faster reaction times and verifiably higher efficiency. Control rooms for transportation (air, rail, traffic), energy (power stations, public utilities), industry and emergency organisations (police, fire, ambulance) have been equipped with Wey solutions.

Wey systems can be 100% designed to the requirements of industry and readily adapted to achieve customers needs and preferences. They can connect to any hardware running any operating system and can be easily expanded to include additional information sources and workplaces.

New Global Member

United Insurance Brokers Ltd (UIB) 69 Mansell Street London E1 8AN Tel +44 (0)20 7488 0551 Fax +44 (0)20 7480 5182 Email richard.scott@uib.co.uk Web www.uibgroup.com www.the-eic.com

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August 2013

EIC Member News

ABB

Portable flowmeters need to be installed and removed without breaking the integrity of the pipe. As such, clamp on ultrasonic technology is perfectly suited, with externally mounted transducers propagating ultrasound through the pipe wall to achieve measurement of flow. While this nonwetted technology is particularly useful with aggressive or corrosive process liquids and gases, it has long been recognised that portable versions are equally advantageous where intermittent measurement is required.

To achieve portability brings with it the issue of power.

A portable ultrasonic flowmeter needs a power supply which is unlikely to just happen to be available adjacent to a new measurement point. An integral battery pack is therefore utilised, historically resulting in hazardous area use being controlled by a hot work permit. Advancement in battery technology, however, now allows portable flowmeters to be approved for use in hazardous areas.

Having supplied portable ultrasonic technology since 1985, the considerable real world experience gained told ABLE Instruments that there remain additional issues to overcome. Often the portable meter is used as a temporary measurement solution and left to collect data over time, continuously monitoring variations in flow during operation or upset conditions of the plant. Just having an integral power source suitable for hazardous areas therefore isn’t enough – longevity of the battery and the ability to lengthen this period of operation are equally important.

ABLE’s portable ATEX flowmeter battery pack provides up to 24 hour operation with the ability to swap the batteries within the hazardous area. The batteries themselves are intrinsically safe and interchangeable in minutes resulting in no requirement for the flowmeter to be removed from the hazardous area or directly connected to an external power supply for the batteries to be charged. For more information, please contact ABLE Instruments: Tel +44 (0)118 931 1188 Email info@able.co.uk

Member News ABB is hosting a series of short talks covering safety, reliability and efficiency issues affecting the oil and gas sector, on stand 3D 160 at this year’s Offshore Europe. Additionally, interactive demonstrations will sit alongside several new product launches.

Daily technical talks will target operations, technical engineers and management within oil and gas operating companies and EPCs. The talks will be delivered by ABB experts working within the oil and gas industry, including developers, engineers and project managers.

The experts will be available to answer questions, listen to suggestions and debate insights.

Talks include ways to ensure the effectiveness of trips and alarms; why functional safety is important, including key points in setting and achieving SIL; platform life extension, equipment reliability and programmes for aging assets; and the role of remote operations in helping reduce costs and improve operational efficiency.

Visitors can witness how today’s control room helps oil and gas companies achieve benefits through operator effectiveness, enterprise asset optimisation and collaborative production management. An interactive demonstration will explore the benefits of integrating motors, drives, instrumentation and electrical equipment to ABB’s System 800xA distributed control system (DCS).

Exciting new technologies such as video integration and the 3D collaboration board are also on display. Among the products being showcased are: • An all-compatible variable-speed drive, the ACS880; • Energy harvesting technology that enables remote temperature measurements without the need for a power supply to the transmitter; • Compact, maintenance-free CoriolisMaster meter; • Meter2di dual chamber orifice fitting with double isolation; • Integrated or stand-alone high integrity safety controller; • Extended Automation System 800xA’s Feature Pack 4 for reducing unplanned shutdowns, increased asset utilisation and energy efficiency; • D3 collaboration desk; • ServicePort – a remote enabled, service delivery platform that provides a custom, secure connection to ABB advanced services and experts; • Latest in intelligent switchgear and diagnostics.

For more information please visit: www.abb.com

The IMechE’s Most Promising Engineer award is an annual award to recognise exceptional engineers in the North East of England. Candidates must be graduate mechanical engineers in the early stages of their career and be working towards, or having recently attained, chartered status with the IMechE. They must also be able to clearly demonstrate rapid and quality career progression within their organisation.

Assystem UK nominated four engineers for this year’s award, who joined several other engineers from around the North East. The candidates were interviewed for 30 minutes each on their experience and their views of the engineering profession in the UK.

To submit articles to the Member News section, please send no more than 300 words, and a good quality photograph (minimum 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com.

Copy deadline is the first of the month for the following month – ie by 2 September for the October issue. www.the-eic.com

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August 2013

EIC Member News The winner this year, and recipient of the Arthur Coakley Memorial Trophy was Sebastian Dimmock, Team Leader and Chartered Senior Mechanical Engineer at Assystem UK. Sebastian joins colleague Gareth Bowie who won in 2011. Assystem UK has won two out of the last three awards. The judging panel (which comprised members from award sponsors The Wilton Group and its subsidiary PD&MS Energy) selected Sebastian based on his ‘achievements to date and enthusiasm for the future’. Sebastian received the award at the IMechE’s North East Region Annual Charity Dinner at Hardwick Hall, Sedgefield. For more information about Assystem UK please visit: www.assystem.com

You can use Bifold’s Valve Model Configurator to create the valve you require and download a bespoke configured datasheet with a single click. The 3D CAD model is then automatically emailed. The datasheet contains a tracking image which enables you to view the rendered image in real time, in augmented reality and to scale using the Bifold Model Viewer, available on the App Store for iPad and iPhone; and Google Play for android devices.

Effortless Selection Process: • Configure your product; • View interactive 3D model online; • Print bespoke data sheet or save to your system; • Receive 3D CAD model by email; • Contact sales department with your order.

Visit Bifold at Offshore Europe, 3-6 September 2013, stand number 3B60, where there will be an augmented reality wall featuring a window to the Bifold product range viewed live and interactively. You will be able to configure bespoke manifold systems and products, create and print bespoke data sheets and view configured systems and products to scale in augmented reality.

Available to take away from the show will be an exclusive pack of augmented reality tracking images to work alongside your app.

For more details go to: apps.bifold.co.uk

Belzona has been a global leader in the design and application of high temperature vessel linings for over 20 years. Numerous case studies from across the globe are a testament to their effectiveness and longevity even in highly corrosive environments.

In recent years, customers have expressed the need for a cost effective elevated temperature lining, which does not compromise on quality and is designed to the most stringent Belzona standards. In 2012 this system was formulated and on successfully completing trials, introduced to the oil and gas upstream and downstream markets.

To satisfy clients’ requirements the elevated temperature lining system offers long-term corrosion protection and is resistant to a broad range of chemicals commonly found in process vessels and storage tanks. Quick back to service time is facilitated by fast application and rapid cure time. Belzona is committed to complying with and improving the standards of health and safety, hence the new lining system is 100% solid.

Jevon Pugh, R&D Manager, Belzona, said: “The Belzona 5800 Series coatings combine the high levels of product quality and performance synonymous with Belzona, with the cost-effectiveness of a glass-flake solution. These coatings have been rigorously tested to oil and gas industry standards in order to ensure that they represent the best possible balance of cost, performance and longevity in service.” For more information visit: www.belzona.com

Booth Welsh has announced that it has recently added a new technical recruitment service to supplement its core engineering services. The division specialises in sourcing all engineering disciplines both on a permanent and temporary basis as well as offering specialist consultancy across a wide range of industries.

Martin Welsh, Managing Director, Booth Welsh, said: “I am delighted to welcome on board our new recruitment team. Our new consultants bring to the company a wealth of recruiting experience and expertise which I am pleased to be able to extend to our clients. This addition of this new service means that we now have an in house based solution to assist with any client’s project and technical resource challenges.”

Booth Welsh also continues its project successes across various industries including an oil and gas project for a new client in Aberdeen. The project scope is focused on the detailed design activities where the client has limited capability due to the consultancy nature of their business. All design packs have been managed from the Booth Welsh head office in Stevenston using shared web services to transmit drawing packs.

Gordon Semple, Design & Engineering Director, Booth Welsh, said: “The project is going very well to date and Booth Welsh’s expertise in delivering detailed design packages has been an excellent fit for our client’s requirements. Booth Welsh is looking forward to expanding upon this project and exploring similar ‘gaps’ of this nature for other clients in the oil and gas sector.”

For more information please visit: www.boothwelsh.co.uk

Bifold has developed sophisticated configurators to make valve selection effortless. With Bifold, you can use the unique online drag and drop Modular Manifold Configurator to design highly bespoke manifold systems effortlessly. The manifold can be designed from the circuit sequence down to the orientation of individual modules to your exact specification. Once designed an interactive 3D rendered model is immediately viewable online and an installation drawing, bill of materials and 3D CAD model are automatically emailed upon design verification from Bifold. www.the-eic.com

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August 2013

EIC Member News

Copyright 2013 iStockphoto LP

While other rig critical equipment such as cranes and BOP’s have for decades been subject to inspection and certification by inspectors qualified to regulatory body approved courses, drilling structures have, up to now, never had the benefit of inspectors armed with product specific inspection qualifications.

The achievement of this qualification for DSL has been a long term ambition of the company and Mike Smith, owner/Managing Director, said: “Derrick related incidents still represent a very large percentage of overall incidents on rigs today. The introduction of qualified and competent inspectors working under the umbrella of an API 4F licenced company provides the industry with both a qualified standard to adopt, as well as arming the industry with the ability to further eradicate the amount of incidents on both offshore derricks and land rigs.

“Operators and drilling contractors can now rely on this industry approved qualification and standard for the inspection of drilling structures where before there was none. We are proud to be able to use our experience, expertise and competency of drilling structures and channel it into qualifications such as this that enables DSL to make a positive contribution to industry safety and standardisation.” For more information please visit: www.derricksl.com

Hydrasun

Following the successes of 2012, Cofely Fabricom GDF SUEZ UK has been awarded a further contract within the Lynn & Inner Dowsing Wind Farm off the coast of Skegness. The project will be headed by the Fabricom Projects, Renewables & Maintenance unit, based in Lincolnshire and will involve a project management team and a range of multi-technical resources. This contract involves complex offshore working including logistical operations between offshore wind turbines.

Since entering the offshore renewables market, Cofely Fabricom GDF SUEZ UK has, in the last 18 months, had outstanding success and become a key provider to many wind energy companies. Through their high performing health and safety culture, they are helping to make a valued contribution to further improve shared learning across the industry to ensure high levels of continuous and predictable HSEQ performance. This has placed Cofely Fabricom GDF SUEZ UK in an excellent position to develop the market further.

Cofely Fabricom GDF SUEZ UK provides a range of services from supply and installation of technical support, maintenance and project management through to offshore operations and maintenance support works. Their aim is to become the partner of choice throughout the UK. Nigel Carlton, CEO, Cofely Fabricom GDF SUEZ UK, said: “Well done to the whole team involved in securing this important project for us. This contract clearly demonstrates not only the success of projects we have already undertaken but also that we have built a reputation for professionalism by demonstrating our skills and high standards of best safety practices in this growing market.” For more information please visit: www.fabricom-gdfsuez.co.uk

Hydrasun has been awarded a five-year contract for the continued supply of Flexible Hose Assembly (FHA) and Small Bore Tubing (SBT) integrity management services together with product supply, by Shell UK. The scope of work, covering all Shell UK assets offshore and onshore, includes the provision of hose management services, technical support, inspections and supply and installation of FHA’s. The contract has also been extended to include SBT inspection services and associated product supply.

Hydrasun will also deliver a series of Flexible Hose & Small Bore Tubing Awareness Training Courses to ensure personnel working on Shell assets are familiar with the on-board technology and best working practices.

Hydrasun’s team of specialist personnel will support the work through Shell’s main Aberdeen headquarters and Great Yarmouth offices. For more information visit: www.hydrasun.com

DSL, the API and IADC certified training provider, has achieved API accreditation of its Derrick Inspectors training course and associated exam, in accordance with API 4G & 4F. This is the first industry recognised training for Derrick inspectors in the industry to date, and represents a turning point for ensuring that drilling derricks, some of which are rated to 1000 tonne lifting capacity or more, can now be inspected and certified by qualified inspectors. www.the-eic.com

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August 2013

EIC Member News Offering proven durability, reliability and choice, the Legrand range of cable management solutions has been designed to cope with harsh conditions and offshore environments. The company offers a range of finishes to address the specific needs of different environments, including stainless steel, hot dipped galvanised and deep galvanising, with any galvanising requirements delivered by the company’s in-house facility.

Nigel Leaver, Marketing Manager, Legrand, said: “Planning an installation accurately at the earliest stages of a project is vital for EPC contractors as it helps them avoid inaccuracies that could cause logistical issues, knock on effects on the specification and delays that may incur late penalties. Legrand’s experience of working with customers in the oil and gas industry means that we understand those challenges and can respond with a broad choice of high quality cable management products, all of which can be accurately incorporated into a scheme at design stage thanks to 3D modelling software.” Please visit: www.legrand.co.uk

Jo Bird & Co has been awarded the Queen’s Award for Enterprise in International Trade 2013, in recognition of its impressive export performance. The prestigious accolade is given to businesses in recognition of outstanding achievement in international trade. Jo Bird received it after growing its exports from £733,000 in 2009 to £1.77 million in 2012.

The company specialises in providing durable protection for essential lifesaving and fire safety equipment, suitable for use in the world’s most extreme environments. Its product line-up includes Firebird madeto-measure cabinets, which are produced from durable GRP, and the Toughstore off-the-shelf range.

Jo Bird’s export growth is a result of a strategic review of its business, with a particular focus on its design and manufacturing processes. The company drew on feedback from major oil and gas companies and contractors about the increasingly extreme climates in which they operate. Using this information, it enhanced its products to ensure that they offer the very best protection from the elements.

Typical conditions in which Jo Bird’s products are used include cyclone winds of up to 200mph, arctic temperatures, and extreme heat. The robust cabinets are shipped to countries including Saudi Arabia, Brazil, Australia and Vietnam, as well as being used offshore.

Speaking after the announcement, Guy Atkins, Managing Director, Jo Bird, said: “We are proud of this award, which reflects a great deal of hard work from all the team here at Jo Bird & Co. Exports have grown by 141% during the last three years, and, thanks to our ongoing sales and marketing efforts and the quality of our products, Jo Bird is an internationally recognised brand.

The Queen’s Award for Enterprise will help us capitalise on our success, and continue to grow the business over the coming years.” For more information, please visit: www.jobird.co.uk

Valve engineer Severn Unival has opened a new £2.5m facility in Brighouse, Yorkshire following significant business growth. The 60,000 square foot purpose-built premises has been designed to foster greater efficiency and technical advancement. A dedicated Valve Innovation Centre located on the site will be home to the firm’s newly appointed research and development team.

Resources include a strategically planned, wellequipped factory with an integrated crane system.

Workstation layout was developed in consultation with shop floor workers in line with lean manufacturing principles. For the sales, management, technical and administrative teams, a three-storey office building has been carefully designed to make maximum use of natural light. The move has seen the co-location of butterfly valve specialist Severn-Leeds Valve and Severn Unival into a 104-strong team. Additional group businesses including Mars Valve, Utilities Valves and Severn Ball Valves will also have a presence at the facility.

R&D will be held at the heart of operations as Severn Unival focuses on generating intelligent aftermarket valve solutions for challenging industries. The new facilities will enable fast-track testing of new concepts and prototypes and the firm will continue to draw on its close links with Huddersfield University. In addition, a dedicated training suite enables industry collaboration to be taken to a new level. Clients can join engineers for bespoke training and ‘live engineering’ sessions where valve challenges will be unpicked and potential new solutions explored.

Colin Findlay, Managing Director, said the Severn Unival and Severn-Leeds Valve teams have been energised by the move, which will allow the businesses to explore new opportunities. Severn Unival and SevernLeeds Valve are part of the Severn Glocon Group, which employs 800 people worldwide and won a Queen’s Award for Enterprise in International Trade in 2011. For further information visit: www.severnglocon.co.uk

Cable management specialist, Legrand, will be demonstrating the ease of specification of its market leading systems at this year’s Offshore Europe Conference and Exhibition in Aberdeen, 3-6 September 2013, thanks to its investment in 3D modelling systems.

Legrand will be exhibiting at stand A65 at the oil and gas conference and exhibition, highlighting the ease and speed of installation of its range of cable management systems, which include Swifts cable ladder and cable tray, Cablofil steel wire cable tray and Salamandre distribution trunking. The company has worked closely with leading 3D modelling software developers, including Intergraph and AVEVA, to integrate its cable management systems into their programmes, enabling EPC contractors to build their cable management requirements into the specification effortlessly and accurately at the earliest stages of a project. www.the-eic.com

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August 2013

EIC UK, Overseas & Training

UK, Overseas & Training July 2013 31 Business Presentation: Schlumberger & Jurong Shipyard Lunch Rio de Janeiro August 2013 1 Technical Workshop: Introduction to FPSOs Denmore Technologies, EIC London 6 Industry Overview: Fundamentals of Upstream Oil & Gas Offshore EIC London 6 Technical Workshop: Critical Marine & Logistics Operations Centro de Treinamento, Rio de Janeiro 7 Industry Overview: Fundamentals of Oil & Gas EIC London 8 Technical Workshop: Critical Marine & Logistics Operations Centro de Treinamento, Rio de Janeiro 12 Corporate Entertainment: Myanmar Presentation and Lunch EIC Singapore 12 Technical Workshop: Dynamic Positioning Centro de Treinamento, Rio de Janeiro 14 Industry Overview: Fundamentals of LNG EmJay LNG, EIC London 15 Industry Overview: Fundamentals of Oil and Gas EIC Singapore 16 Corporate Entertainment: The Glorious 16th Clay Pigeon Shoot Seals Cove Shooting Ground, Aberdeen 21 Business Presentation: Opportunities with Wilson Sons Rio de Janeiro 23 Technical Workshop: Introduction to Downstream Rio de Janeiro 28 Corporate Entertainment: Fish and Chips Supper Wheeler’s, Dubai 29 Technical Workshop: Dynamic Positioning – DP with L-3 Rio de Janeiro September 2013 2 Industry Overview: Fundamentals of LNG and Gas Processing KBC, EIC Singapore 3 Management Course: Time Management Made to Measure Training, EIC London 9 Industry Overview: Fundamentals of Nuclear EIC London 10 Technical Workshop: Introduction to Nuclear New Build EIC London 11 Management Course: Tendering for Success Rothera Group, Kirkhill Industrial Estate 12 Management Course: Why do we need Contracts?

Costain, EIC London 16 Technical Workshop: Introduction to Shale Gas EIC London 17 Management Course: Presentation Skills Kirkhill Industrial Estate, Aberdeen 18 Technical Workshop: Introduction to Trace Heating Thermon, EIC Billingham 19 Business Presentation: Opportunities with Larsen & Toubro EIC London 23-24 Management Course: The Effective Manager Inspirit Training, EIC London 25 Technical Workshop: Introduction to Steam Turbine Technologies Dresser Rand, Peterborough 25 Industry Overview: Fundamentals of Oil and Gas International House, Dubai 26 Business Presentation: Opportunities with Chevron Hilton Treetops Hotel, Aberdeen October 2013 1 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton 2 Industry Overview: Fundamentals of Subsea Denmore Technologies, Aberdeen 3 Industry Overview: Fundamentals of Oil and Gas EIC Billingham 8 Management Course: Introduction to Social Media EIC Billingham 8 Management Course: Networking that Works British Council, EIC Singapore 8 Technical Workshop: Introduction to Steam Boilers Fulton Boilers, Bristol 10 Annual General Meeting and UK Shale Conference London 10 Corporate Entertainment: EIC National Dinner Natural History Museum, London 10 Management Course: Certificate in Project Management EIC London For further information on UK & Overseas Events and Training please contact: ukevents@the-eic.com www.the-eic.com

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August 2013

EIC Exhibitions & Delegations/EIC National Events

Exhibitions & Delegations 2013

Status

15-20 September Overseas Delegation to Colombia

Booking Now

7-11 October Overseas Delegation to Mexico

Booking Now

29-31 October OTC Brasil

Rio de Janeiro Booking Now

10-13 November ADIPEC

Abu Dhabi

Booking Now

13-15 November Oil & Gas Indonesia (OGI)

Jakarta

Sold Out

18-22 November Overseas Delegation to Australia

Booking Now

22-28 November Overseas Delegation to Saudi Arabia and Qatar

Booking Now

24-29 November Overseas Delegation to Venezuela

Booking Now

5-8 December Basra Oil & Gas Conference & Exhibition Basra

Booking Now

2014

2-7 February Overseas Delegation to Libya

Register your Interest

9-5 February Overseas Delegation to Mozambique and Tanzania

Register your Interest

16-21 February Overseas Delegation to India

Register your Interest

19-21 February Australasian Oil & Gas Exhibition (AOG) Perth

Booking Now

19-21 March CIPPE

Booking Now

Beijing

23-28 March Overseas Delegation to Malaysia

5-8 May Offshore Technology Conference (OTC)

Houston

Register your Interest Sold Out

For further information on Exhibitions & Delegations please contact: events@the-eic.com

National Events

2013

Status

Aberdeen

Sold Out

Manchester

Last Few Stands Remaining

3-6 September EIC Member Group @ Offshore Europe

12-13 November EIC Connect Energy

For further information on National Events please contact: nationalevents@the-eic.com

BOOKING NOW

www.the-eic.com

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August 2013

EIC Overseas Exhibitions

Overseas Exhibitions

Oil & Gas Asia 2013 (OGA) 5-7 June 2013 Kuala Lumpur, Malaysia The EIC had another hugely successful year at OGA 2013. Asia’s largest oil and gas show returned for the 14th year and became the most successful yet. 2013 attendance figures have been confirmed as 22,049 trade visitors from 72 countries. The EIC hosted 25 companies within the UK National Pavilion spanning 339sq m.

Day 1 saw the UK National Pavilion hosting both Lord Green, UK Minister of State for Trade and Investment, and Tan Sri Mohd Sidek Hassan, Chairman of Petronas.

Both enjoyed a walk around the UK Pavilion and were able to speak to some of the UK exhibitors. The UK Pavilion was honoured by both visits.

The EIC in partnership with UKTI was pleased to be able to sponsor the event guide map this year, which was handed out to all visitors, VIPs and Press. Not only was there prominent branding but also all companies within the UK Pavilion were highlighted on the map, which set us apart from all the other exhibitors. A great way to fly the UK flag! Once again, OGA proved itself to be the region’s number one oil and gas event, being the biggest and most comprehensive in the Asian region hosting exhibitors from the oil and gas industry worldwide.

Malaysia holds proven reserves of approximately 5.8 billion barrels of oil and 2.4 trillion cubic metres of gas.

Petronas recently embarked on a series of projects involving chemical enhanced oil recovery (CEOR) technologies in offshore Sabah and offshore Sarawak.

These investments are expected to extend the life of the fields beyond 2040 to raise the fields’ recovery factor from 36% to 50%.

With its new design, the UK Pavilion was buzzing with activity throughout the exhibition, with the UK lounge acting as central meeting point for exhibitors and their clients and EIC members throughout the show.

The exhibition provided members of the UK supply chain with excellent exposure to existing and new customers resulting in a host of new business leads, and some confirmed orders and even a sale onsite.

Camilla Tew, Overseas Events Manager Tel +44 (0)20 7091 8608 Email camilla.tew@the-eic.com

Exhibition Reports Brasil Offshore 2013 11-14 June 2013 Macaé, Brazil Brasil Offshore is considered one of the most relevant trade shows within the international offshore market, attracting visitors and exhibitors from 38 countries and covering all aspects of the Brazilian offshore industry.

The exhibition took place in Macaé, the hub of the local oil and gas industry, known as Brazil’s City of Oil. Macaé is home to Petrobras’ business unit for the Campos Basin, an area responsible for more than 80% of national oil production. Over 3,500 manufacturing, services, and support companies are based in the Macaé area.

Relevant players in the industry, such as Halliburton, Schlumberger, Transocean, Aker and Cameron also maintain operational bases in the city.

The UK National Pavilion at Brasil Offshore 2013 consisted of 20 exhibiting companies, with a total of 302sq m. The exhibitors ranged from companies totally new to market, to those in the process of acquiring Brazilian companies, setting up manufacturing facilities, and those with fully fledged operations and experience in the market.

The UK delegation benefited from UKTI support in the form of a number of networking events, managed by the EIC. Two Whisky Tasting events gave an invaluable networking opportunity for all exhibitors to entertain their clients and potential customers and partners, and drew great numbers to the pavilion. A business presentation, Opportunities with Shell, gave an overview of Shells’ operations in Brazil, as one of the largest foreign oil companies producing in Brazil. The EIC also ran a workshop on Understanding Local Content – regulations in Brazil are very fluid, and changing frequently. The workshop taught about the current regulations and gave an insight into the implications of the Brazilian local content laws for the oil and gas sector.

The EIC will be managing overseas delegations to Mexico and Colombia in 2013. For more information contact: Laura Tavernor, Overseas Events Manager Tel +44 (0)20 7091 8618 Email laura.tavernor@the-eic.com

www.the-eic.com

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August 2013

The EIC Conference Suite

The EIC Conference Suite A fully flexible events space available exclusively to EIC members and associated companies.

The EIC Conference Suite offers meeting rooms for up to 110 people within the EIC head office. Opened in 2010, the Suite offers a convenient and easily accessible riverside location with excellent views, just 2 minutes from the National Rail, London Underground and bus stations of Vauxhall in Central London.

Made up of five meeting rooms and an airy, spacious breakout area, the energy themed décor of the EIC Conference Suite offers the perfect solution for members looking for somewhere to hold a conference, meeting or reception.

The EIC Conference Suite is exclusively available to hire by EIC members and associated organisations and room hire starts from just £70, with special rates for members.

Meeting Rooms 5 meeting rooms.

Capacity

Minimum 3, maximum 110.

Location

Central London. 2 minutes’ walk from Vauxhall’s Underground, National Rail and bus stations.

Technology

Free Wi-Fi throughout and LCD screens in each large meeting room.

Refreshments

Fully flexible and cost effective catering options are available from our preferred caterers and sample menus are available upon request.

Adaptable spaces – Conference/Boardroom style • • • • •

Video conferencing Hot desks Free Wi-Fi Fully air-conditioned Wheelchair accessible

• • • • •

Room hire from just £70 State of the art facilities Flexible catering options Dedicated events co-ordinator Large breakout area

The EIC Conference Suite is available for hire during normal working hours. Please feel free to drop in to see the facilities or to use one of the hot desks.

Contact: conference@the-eic.com www.the-eic.com

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August May 2013 2012

Offshore Europe 2013

Offshore Europe 2013

The EIC would like to congratulate Vantrunk who will be celebrating its 50th anniversary of service to the global energy, oil and gas and industrial processing sectors at the show. To celebrate they are running an Xtreme Challenge designed to test your cable management knowledge. The winning prize involves travelling to Swedish Lapland!

Discover the EIC Members Group at Offshore Europe 2013

The EIC Guide to the Group will be available on the EIC website as a download in advance of the event and will be given out in brochure format at the show. To view the full list of Exhibitors in the EIC Group please visit: www.the-eic.com/events From the Group Lounge, EIC staff will be on hand to offer advice on the many ways that the organisation can help with business development activities. Representatives from all of the EIC regional overseas offices, membership, events, training and sector analysis teams will be on hand to answer questions plus there will be live demonstrations of EICDataStream.

The EIC would like to thank Legrand Electric Ltd, global specialists in electrical and digital building infrastructures, for sponsoring the 2013 Offshore Europe Drinks Reception.

Taking place on 3 September, this year’s reception will be held in the elegant surroundings of Aberdeen Art Gallery. Boasting a fantastic central location just off Union Street, Aberdeen Art Gallery is one of the city’s most popular tourist attractions.

SPE Offshore Europe is one of the leading global technical conferences and exhibitions for the upstream exploration and production industry. Reflective of the industry as a whole there is a large international exhibitor presence at the event with 1,497 participating companies from over 42 countries and 28 national and international pavilions.

© Aberdeen Art Gallery & Museums Collections

After a hugely successful show in 2011, the EIC is once again hosting the largest pavilion, showing off 42 member companies in Hall 3 of the AECC. Such is the reputation of the benefits of exhibiting as part of the EIC group, stands sold out within days of being launched to EIC members.

Visitors to the EIC pavilion, which includes a private lounge area and an innovative branded design to attract delegates, will be able to see at first hand some of the leading products and solutions the UK supply chain is offering to the offshore sector. These include: OMB Offshore, who will be launching their new range of low torque gate valves complimenting the already successful ball and swing check valve ranges, for use in both topsides and subsea environments.

The guest list will consist of individuals from the energy sector with representation from oil and gas companies, contractors, VIP’s and exhibiting companies within the EIC Group at Offshore Europe. Drinks and light snacks will be served while guests enjoy live musical entertainment from The Ritz Trio. We would like to wish all EIC members attending Offshore Europe a very successful show.

Rota Engineering who will be introducing the first certified Ex de IIC T6 Gb II 2G connector that may be disconnected with both sides energised without the need for a hot work permit.

For further information on the EIC Group at Offshore Europe 2013, please contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com

www.the-eic.com

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August 2013

www.the-eic.com

19

August 2013

EIC UK News

News from our UK offices

Business Presentation: Opportunities with 26 September 2013 Hilton Treetops Hotel, Aberdeen Chevron is one of the world’s largest integrated energy companies and is an important part of the UK’s energy market with interests in 10 offshore producing fields on the UK continental shelf and has interests in five nonoperated fields. Chevron continues to develop projects designed to sustain production and increase recovery at the Alba, Britannia and Captain fields. Development drilling is expected to continue on Alba beyond 2015 and at the Captain field through 2018. At Britannia, work on the long-term compression project is underway aimed at increasing field recovery and with a 70% interest and as the operator of the Alder high-temperature, high-pressure oil and gas discovery, Chevron is evaluating its potential as a subsea development.

Meanwhile, the US$7 billion Clair Ridge project in which Chevron holds a 19.4% non-operated interest is designed to have a capacity of 120,000 barrels of crude oil. The procurement and fabrication phase began in 2012 and production is scheduled to start in 2016.

Chevron also operates and holds a 40% interest in the Rosebank discovery where FEED work began in July 2012 and FID is expected in 2014. Maximum total daily production is expected to reach 64,000 barrels of liquids and 42 million cubic feet of natural gas.

With so many active projects in the UK alone, the EIC welcomes members to meet with Scott Benzie, Supply Chain Management (SCM), Chevron Upstream Europe and his colleagues from Rosebank, Drilling, Completions and Subsea, Base Business and Shared Services to find out about Chevron as an organisation, their current activities, future opportunities and details of how you can do business with them. Contact: leeann.stewart@the-eic.com

Forthcoming Events

Corporate Entertainment: The Glorious 16th Clay Pigeon Shoot 16 August 2013 Seals Cove Shooting Ground, Aberdeen Exclusive Sponsor: EIC members and their guests are invited to join us for a clay pigeon shoot at Seals Cove Shooting Ground. This afternoon includes two hours of shooting, a BBQ and soft drinks and is an ideal way to entertain clients and reward staff; it also provides a great opportunity to network with a difference. This is a great day out; clay pigeon shooting is an experience that is fun for all – no experience needed, and prizes will be awarded for Best Team and Best Individual. Previous EIC members’ guests have included: Apache North Sea, BG Group, CNR, ENSCO, Nexen, Shell, Wood Group and others.

Contact: leeann.stewart@the-eic.com Business Presentation: Opportunities with Sirius Minerals September 2013 (TBC) Aldwark Manor Hotel, near York Sirius Minerals Plc is a mining and exploration holding company specialising in the development and delivery of major potash related projects and is listed on the London Stock Exchange’s AIM market. Sirius Minerals is currently focused on the development of the world’s largest and highest-grade Polyhalite deposit in the UK, the York Potash Project. The speaker from Sirius Minerals will advise members about company activities and how the business proposes to work with regional supply chain companies. Further details to follow.

Contact: jennifer.hole@the-eic.com

EIC Shale Conference and AGM What is the UK Shale Potential?

10 October 2013 London Recent months has seen a number of significant and positive activities in the shale gas industry, including increased support from the UK Government with the announcement of a new licensing round in 2014 and the unveiling of a package of reforms designed to assist exploration. The government has also pledged to issue new guidelines to streamline the planning and permitting regime for shale gas developments and is undertaking a consultation on tax incentives to encourage exploration of shale gas areas. Although the UK’s shale industry is still relatively immature, it has the potential to contribute to the UK’s energy security and increase domestic investment and growth. The EIC is excited to announce its Shale Conference in October, focussing on the lessons the UK can learn from US developments and where the opportunities will lie for the UK supply chain.

An impressive line-up of speakers will be revealed shortly, so in the meantime we urge you to save the date.

The Conference will be followed by the EIC AGM, details of which will also be distributed soon. Contact: daisy.crisp@the-eic.com

Business Presentation: Opportunities with Larsen & Toubro 19 September 2013 EIC Conference Suite, London Larsen & Toubro Ltd is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India’s private sector. It is a fully integrated EPC provider for the complete hydrocarbon chain in the upstream as well as mid/downstream sectors. Being the third largest manufacturer in India and having thousands of multidisciplined engineers it is well placed to serve the needs of the industry. A recent focus on internationalisation has led to requirements for a global supply chain qualified to numerous international codes and standards; they are currently executing several EPC projects in the Middle East and typically buy over US$600 million/year of subcontracted items. Phil Emsley, Head of Business Development – Europe at Larsen & Toubro, will detail Larsen & Toubro’s current activities, procurement processes and current procurement requirements to EIC members. Contact: daisey.crisp@the-eic.com www.the-eic.com

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August 2013

EIC UK News Business Presentation: Opportunities in Canada 22 October 2013 London 23 October 2013 Manchester 24 October 2013 Aberdeen Canada is a global energy player, it ranks number three in crude oil reserves and is currently the 6th largest oil producer in the world. Additionally, Canada is the 3rd largest producer of natural gas with over 300 projects tracked on EICDataStream worth almost US$6 billion.

The International Energy Agency predicts global oil demand will continue to grow at least until 2035 and Canada is expected to be one of the growth leaders in the supply of global liquid fuel. With so many projects covering the oil and gas sector within Canada, this EIC Business Presentation is the perfect opportunity to hear about the projects taking place within the region and how you can be involved. We will be inviting speakers from the major offshore and onshore operators and will offer the opportunity to book one-2-one meetings with the speakers, the EIC, UKTI, and the Canadian High Commission. Contact: daisy.crisp@the-eic.com

Northern Region AGM October 2013 Date and venue tbc Would you like the opportunity to represent your company on the Northern Region Committee and help shape the future direction of the EIC within the region? If so, you can nominate yourself or a colleague for a place on our regional committee. The EIC Regional Committees meet four times a year at various locations across the relevant region, with representation from a wide range of disciplines. The committee meetings enable members to discuss market trends and industry news, feedback the views of the EIC members on the regional activities, suggesting topics and speakers for presentations and networking opportunities. Being part of the Committee provides an excellent platform to raise your personal and company profile and we urge you to contact us if you would like any further details. Contact: jennifer.hole@the-eic.com Prestigious member office space available NOW in the West End of Aberdeen The EIC Scottish office offers members a convenient meeting space for up to 30 people in a central, prominent location offering an ideal base from which to reach all parts of Aberdeen City and Shire. In addition to the meeting spaces, the office also has members’ offices available. There is currently one office available, comfortably accommodating two desks (or a desk and meeting table). Contact us for more information on costs.

Contact: leeann.stewart@the-eic.com

EIC Award for Supply Chain Excellence In its inaugural year, the Award attracted 16 high quality submissions and the judging panel busily deliberated over the entries before agreeing on the shortlisted entries which can be found at: www.the-eic.com/Award The winner will be announced at the EIC National Dinner and will be rewarded with a package of activities to help them promote their organisation and its capabilities to potential customers. Contact: daisy.crisp@the-eic.com

www.the-eic.com/nationaldinner www.the-eic.com

21

August 2013

EIC Asia Pacific News

Asia Pacific News

Regional Comment

Australia awards 13 blocks Thirteen offshore blocks were awarded as part of round one of the 2012 Offshore Petroleum Exploration Acreage Release, which will attract around US$173 million in new investment over the next three years. Further spending on the blocks could rise to more than US$529 million with proposed secondary work programmes. Twelve of the permits are located offshore Western Australia, while one block lies in the eastern Otway Basin between Victoria and Tasmania. Shell won three of the blocks while two went to Total. The other successful bidders were Inpex, CNOOC Ltd, Apache, Woodside, MEO Australia, IPM West, Pathfinder Energy and 3D Oil with one block each.

Office News

The EIC Asia Pacifc office is working with UK Trade & Investment (UKTI) Singapore to provide a series of Political & Economic Updates with the various posts around the region, such as India, Indonesia, Korea, Malaysia, Thailand and Vietnam via the Video Conference (VC). Look out also for the Business Presentation on Opportunities with PTSC (Mechanical & Construction) to be conducted via the VC.

Forthcoming Events

Corporate Entertainment: Economic and Political Presentation on Myanmar and Hari Raya Puasa Networking Lunch 12 August 2013 EIC Singapore To celebrate the conclusion of the month of Ramadan, we are having a networking lunch serving various local Malay delicacies. Prior to the lunch, UKTI will give an update on the current economic and political conditions and opportunities in Myanmar.

Taiwan raises solar target Taiwan’s Bureau of Energy has increased its solar installation target for 2013 from 130MW to 175MW, the second time in less than a year that the bureau has raised its 2013 goal, after lifting it from 100MW to 130MW last November. In late April, the Ministry of Economic Affairs (MOEA) announced plans to increase the domestic solar industry’s output value by US$580 million annually and install 3.1GW of PV by 2030. This includes a programme to install solar panels on one million rooftops and an industrial solar development plan.

Industry Overview

Fundamentals of Oil & Gas 15 August 2013 EIC Singapore This one-day training course will focus on the upstream sector and aims to give participants a basic understanding of the processes of exploration and production. In addition, the course will offer an appreciation of the importance and place of the upstream sector in the broader oil and gas industry.

With nearly 40 years of direct experience in international exploration and production in Asia, Bob Dook will share his knowledge and experience of upstream oil and gas.

Japan sets new nuclear power regulations Japan’s Nuclear Regulation Authority (NRA), which was set up in the wake of the Fukushima disaster in March 2011 has approved new legally-binding operating regulations for the country’s nuclear power stations. Nuclear operators in Japan will now have to take several measures such as building an emergency secondary control room, in case the main control room is inaccessible in a disaster, establishing procedures to cool the reactors, containment vessels and storage pools to minimise or prevent radioactive releases. New plants near the coast will have to have tsunami walls and measures to prevent inundation, and will not be allowed to be built on active faults.

EICDataStream Overview 23 August 2013 EIC Singapore For those who require user training on EICDataStream, the EIC is providing a session at the Singapore office. If you would prefer in-house training at your convenience, please feel free to contact us. With the VC facility in place, we are also happy to provide user support and training online to EIC members in the region via the VC or Skype.

BASF plans US$13 billion Asia Pacific expansion BASF has announced plans to massively increase its presence in Asia Pacific by the end of the decade, backed with US$13 billion of investment. It expects chemical production in the region to grow significantly at a rate of more than 6% yearly between now and 2020.

The company aims to create 9,000 new jobs of which around 2,700 will be in R&D. This is part of BASF’s plan to move 25% of its research efforts to the Asia Pacific region, shifting its focus away from Europe.

Industry Overview

Fundamentals of LNG and Gas Processing 2 September 2013 EIC Singapore This new one-day workshop in collaboration with KBC Advanced Technology will address the fundamental technical aspects of LNG and gas processing plants, different types of processes and technology for natural gas liquefaction and processing. An introduction to the background and characteristics of natural gas and LNG will also be covered.

If you need any help or advice in the region or for more information about upcoming events, please contact us: Tel +65 6238 7756 Email singapore@the-eic.com Loong Say Meng, Director, Asia Pacific Contact: loong.saymeng@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

22

August 2013

EIC China News

China News

Foster Wheeler to build CTG pilot plant in China Foster Wheeler has announced that it has signed a co-operation agreement with Clariant International AG and Wison Engineering Ltd to build a pilot plant to demonstrate Foster Wheeler’s VESTA substitute natural gas (SNG) technology. The pilot plant will be constructed in China and is planned to go on-stream during 2013.

Under the agreement, Wison Engineering will provide engineering and construction services, Foster Wheeler will license the technology, and Clariant will supply the proprietary developed catalyst. The plant will be operated

by Wison Engineering. The agreement also sets out a framework for long-term co-operation to deliver and build methanation plants in China based on VESTA technology.

Regional Comment

Liwan’s first gas production expected in November China National Offshore Oil Corporation (CNOOC) has scheduled first gas from its giant Liwan 3-1 gas field in the South China Sea to be sent to market from 30 November, company officials have said. Gas from the field is scheduled to arrive at the onshore terminal in Zhuhai City in September, allowing tests of the processing facilities to begin.

COSL set for subsea expansion China Oilfield Service Ltd (COSL) is looking to expand its subsea installation and maintenance capability to cater for sister company CNOOC Ltd’s increased offshore activities. COSL has set up a subsea section under its seismic department to spearhead the latest development.

COSL has appointed an advisor, subsea specialist Frank Lim, principal director of UK engineering contractor 2H Offshore. The section could later be developed into a new subsidiary. The company will add two platform supply vessels to its portfolio by the end of 2015. The two PSVs are being designed by Wartsila and are based on its VS 485 PSV MkIII design.

CNPC boosts overseas production China National Petroleum Corp, parent of China’s largest oil and gas producer PetroChina, has said that the company’s overseas oil and gas output reached 104 million metric tonnes of oil equivalent in 2012, including 52.42 million TOE of equity output. The stateowned oil firm started overseas production in 1993.

PetroChina produced 1.3 billion barrels of oil and gas equivalent output in 2012, up 4.5% year on year. The listed company’s overseas oil and natural gas production remained stable, with the oil and natural gas equivalent output reaching 136.9 million barrels, up 13.3% year on year, according to the company’s annual report.

Shell, Guanghui Energy sign LoI for LNG terminal Shell has agreed to team up with Guanghui Energy for the construction of an LNG intake terminal. The two companies have signed a Letter of Intent (LoI) on the building of LNG import and regasification facilities about 50km north of Shanghai, in Qidong, Jiangsu province. The LoI lays the foundation for co-operation on a project that may be worth several billion dollars. Guanghui Energy said in a statement earlier this month that it wanted to build a terminal capable of handling more than 5.5 million tonnes per year of LNG. The privately owned Chinese company has not said exactly how much it expects the scheme to cost. However, it has said that investment will go ahead pending approval from regulatory authorities.

Sinopec eyes North Sea assets The state-owned Chinese oil and gas giant Sinopec is eyeing more acquisitions in the North Sea. Yi Zhang, Chief Executive of Sinopec’s Addax subsidiary, said: “There are several targets at the evaluation stage. I believe that this year something will be done.” The executive did not give details of Addax’s acquisition targets, adding only that it was most likely to target another joint venture partnership similar to the one it has with Talisman. “We are looking at partnerships, not just pure acquisitions,” he said. Sinopec entered the North Sea last July with the purchase of a 49% stake in the UK business of Talisman for US$1.5 billion.

Lockheed Martin plans OTEC pilot project US-based Lockheed Martin has agreed to develop and build a 10MW ocean thermal energy conversion (OTEC) pilot power plant off the coast of southern China. “The offshore plant will be the largest OTEC project developed to date, supplying 100% of the power needed for a green resort being developed by Reignwood,” the company said in a statement. The Reignwood Group is based in Beijing. Lockheed Martin said the agreement: “Could lay the foundation for the development of several additional OTEC power plants, ranging in size from 10 to 100MW, for a potential multibillion-dollar value.”

SK Group takes stake in Sinopec plant Officials in China have approved South Korea’s SK Group’s 35% stake in a US$2.5 billion petrochemical plant built by state-owned Sinopec in central China. In a statement issued by China’s National Development and Reform Commission, the complex is now a 65-35 joint venture between the Chinese state refiner and SK. The plant, completed in 2012 and located in Wuhan, Hubei province, has a production capacity of 800,000 tonnes of ethylene per year. China reportedly plans to boost annual output by about 7.5 million tonnes by 2015.

ABB links with Jiangsu company ABB and Jiangsu Jingke Smart Electric Company have agreed to establish a joint venture. The joint venture will design, manufacture and service high-voltage instrument transformers from 72.5kV to 750kV in size.

For information and business support in China contact: Salina Zhang, Regional Manager, China Contact: salina.zhang@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

23

August 2013

EIC North & Central America News

North & Central America News Office News

BOEM to hold further lease sales The Bureau of Ocean Energy Management recently held its first-ever competitive lease sale for renewable energy on the US Outer Continental Shelf, offering 164,750 acres offshore Rhode Island and Massachusetts for commercial wind energy leasing. Nine companies were eligible to bid on the two lease areas, located more than nine miles offshore. The North Lease Area has the potential capacity of 2GW and the South Lease Area, 1.4GW. The BOEM has scheduled another offshore lease sale for the end of August, this one for oil and gas leases in the Western Gulf of Mexico. Lease Sale 233 offers more than 21 million acres of federal area offshore Texas, covering 3,953 blocks, in water depths ranging from 5 to 3,346 metres. BOEM estimates the sale could result in production of up to 200MMboe of oil and 938Bcf of gas.

Firstly, the EIC North & Central America office welcomes Derrick Services back to Houston. There are now 14 member companies housed in our offices and we are working with several other members who have shown interest in office space. Our executive suites offer EIC members that may be new to the region a quick, easy and cost-effective option for starting their business in the region. If you are interested in the executive suite services we offer, please contact us.

We will be hosting an EIC Overseas Delegation to Mexico, 7-11 October 2013. This delegation will be focused around Energy Day 2013 in Mexico City, so delegates will have the opportunity to attend organised group meetings with key local players, as well as incorporating briefing meetings presented by qualified speakers with in-market experience and the opportunity to meet with local companies in both Mexico City and Villahermosa. If you would like to attend or receive further information on the Mexico Delegation please contact Laura Tavernor: laura.tavernor@the-eic.com Our next Corporate Entertainment will be the Sporting Clays tournament in October. This will be our 4th annual tournament at American Shooting Center. We also have several sponsorship opportunities, if you are interested contact Richelyn Reed: richelyn.reed@the-eic.com We are actively identifying additional training and business presentations that members have expressed interest in. Please watch out for our event announcements or visit the website for updates. If you have any specific suggestions you’d like us to pursue, please let us know and we’ll do our best to accommodate you.

For additional information about the EIC Houston office, our upcoming events or should you require any assistance in the North and Central America market, please contact us.

Aimee Marsh, Executive Director, North and Central America Contact: aimee.marsh@the-eic.com

Permits for seismic surveys to continue In June, litigation about seismic surveys in the Gulf of Mexico reached a settlement. Environmental organisations filed a lawsuit with the DOI that the surveys harm marine life. The outcome is that the oil and gas industry must provide additional protection for marine mammals, cease conducting airgun seismic surveys in particularly sensitive areas, and develop and test an alternate to field guns. However, contrary to press reports that the industry would cease seismic surveys in the Gulf, permitting of these surveys in most regions of the Eastern Gulf will continue.

BP to increase drilling activity in Alaska BP has announced that it will spend more than US$1 billion to increase drilling activity in Alaska over the next five years. The investment will go towards upgrading existing facilities, increasing drilling, and adding two drilling rigs in the North Slope fields. BP and partners ConocoPhillips and ExxonMobil are considering investing US$3 billion in the Prudhoe Bay region in the next ten years, by building new drilling pads and more than 110 new wells.

Regional Comment

US action plan on climate change President Obama has announced the country’s first-ever strategy to deal with climate change. The administration’s plan includes further cutting of greenhouse gas emissions from existing and new power plants (in particular, coalpowered ones), promoting renewable energy, protecting coastlines and cities from sea-level rise and flooding, and continuing efforts for an international climate deal. The President boldly bypassed Congressional deadlock and issued an executive memo to the EPA. The Environmental Protection Agency will draft new rules to limit carbon pollution. This will be significant in the ongoing review of the controversial Keystone XL pipeline, which will bring crude oil from Canada down to the Gulf Coast, as approval will be granted only if it is determined that the project will not contribute to greenhouse gas pollution.

Mexico to attract foreign investment President Pena-Nieto still wants to reform state-run Pemex so that it could soon become open to private investment. For several years, oil production in the country has decreased significantly, and the new president would like to attract foreign investment in order to help boost it. Many nationalists do not wish to give out Mexican oil, and constitutional change is necessary before foreign operators can partake in oil and gas exploration and production. It is believed that, if allowed, the plan will allow foreign participation in deepwater and in shale gas formations. Pena-Nieto’s reform package is expected to be introduced to Mexico’s congress in September.

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

24

August 2013

EIC South America News

South America News Office News

Business Presentation: Opportunities with Wilson Sons 21 August 2013 Rio de Janeiro The Brazilian logistics operator has recently opened the Guarujá II shipyard which will double the manufacturing capacity of the group. The Group operates two of the main container terminals and supports maritime operations and offshore logistics.

Companies visiting Rio in August should not miss the Navalshore Marintec (Conference and Exhibition) happening in the SulAmerica Convention Center from 13-15 August. Although small, it is a niche event with opportunities for companies active in the maritime and naval sector.

The EIC Rio office has organised seven Industry Overviews, one Management Workshop and four Technical Workshops, totalling 257 delegates so far this year. On average, there were 21 attendees per event. Training started with Industry Overviews of Local Content and Procurement with Petrobras and developed into more technical workshops such as the Introduction to Control Valves and Gas Turbines. In 2013, the first management courses were launched successfully: the Complex Sales Management Workshop, followed by the Industry Overview: Oil & Gas Fundamentals, both delivered in Portuguese. We would like to further develop the EIC’s training programme in this region, either targeting niche areas where our members can act as speakers or sharing knowledge to help train the local employees of our members. If you’re interested in any of these options, please don’t hesitate to contact us.

In June, alongside Brasil Offshore and the well-attended whisky tasting, the EIC organised in Macaé an Industry Overview about Local Content, with 15 attendees, and a Business Presentation with Shell, with almost 60 attendees among EIC members and guests. We would like to thank Mr Fabio Caldas, External Affairs Director, Latin America for his presentation.

Two countries in South America are targets for EIC overseas delegations this year: Colombia in September and Venezuela in November. Allister Langlands, Chairman, Wood Group, described Colombia as “a good open competitive market” in response to being asked where he saw potential for Wood Group to grow in the next 5-8 years, concluding that the company will continue to grow its business there. Don’t miss the opportunity to meet with key contacts by joining an EIC Overseas Delegation.

Industry Overview

An Introduction to Downstream 23 August 2013 Rio de Janeiro

Technical Workshop

Dynamic Positioning – DP with L-3 29 August 2013 Rio de Janeiro

Regional Comment

EIA releases updated shale estimates According to estimates by the Energy Information Administration, Argentina, Mexico and Brazil lead the region in terms of shale potential, with technically recoverable reserves of 802 trillion cubic feet, 545Tcf and 245Tcf respectively. Argentina’s reserves are located in the Neuquén, San Jorge and Austral-Magallanes basins whereas Mexico’s are located in the Burgos Basin, which is an extension of the Eagle Ford formation. In Brazil, the assessed basins were Paraná, Solimões and Amazonas. Other countries in the region with shale potential include Venezuela (167Tcf), Colombia (55Tcf) and Bolivia (36Tcf).

Pre-salt round to offer one field Libra has been selected as the only field to be offered in Brazil’s pre-salt round scheduled for 22 October. The field is located in the Santos Basin approximately 195km off the coast of Rio de Janeiro and is estimated to hold recoverable reserves of 7.9 billion barrels. Libra has the potential to produce 1 million barrels per day, according to the National Petroleum Agency.

If you need support in taking the next step into the South American market, please feel free to contact us.

Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com

Conventional bidding round to offer 235 blocks The 12th bidding round for exploration blocks in Brazil, scheduled for 28-29 November, will offer 235 blocks with potential for natural gas in seven basins across Brazil, according to information provided by the National Petroleum Agency. The total number of blocks has to be approved by the government. The last bidding round, organised in May, awarded 142 blocks to 30 operators.

Forthcoming Events Technical Workshop

Critical Marine & Logistics Operations and Marine Warranty Survey with LOC 6 and 8 August 2013 Centro de Treinamento BQ, Rio de Janeiro

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

25

August 2013

EIC Middle East News

Middle East News

On the conference side of things, we were delighted to address the British Business Group in Dubai last month as well as being very pleased to have been invited to speak at MEED UAE Oil & Gas Projects next month. We are also looking forward to the Iraq Mega Projects Conference & Exhibition at the end of next month. One development since the last monthly news has been the postponement of The Big Oilfield BBQ due to circumstance beyond the control of the organisers.

Lastly, we have pleasure in acknowledging members’ representatives who we have had the pleasure of meeting in the last month. We met Petrofac’s Arun Jani in Sharjah and we caught up with John Tredger in Saudi Arabia on a recent market visit. Michael Robinson from Stapleton International passed by as did the CEO of Oil Consultants, Helen Smith along with their Middle East representative, Gareth Allen. Finally, it was good to see ex-colleague Mutaz Bakheit at the local Shell regional headquarters.

Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com

Office News

At the time of writing we can reflect on three developments across the region that serve to illustrate the degree of unpredictability that pervades across the Middle East.

The most positive was the sudden announcement that the Emir of Qatar intends to abdicate in favour of his second eldest son who was appointed Crown Prince in 2003. Sheikh Tamim bin Hamad bin Khalifa AlThani at 33 became the youngest head of state and immediately announced a new government that would mix a high degree of continuity along with a taste for positive change. A week earlier a new president was elected in Iran. By comparison with his predecessors, Hassan Rouhani is considered slightly less hardline and certainly his speeches following his victory contained positive overtures which one can hope will be delivered.

Meanwhile, as the death toll in Syria spilled over the 100,000 mark, there seems to be growing unrest in Egypt as well as continued incidents in Libya plus a degree of disaffection being shown in Turkey. Let us all hope that the current second half of the holy month, Ramadan, plus the ensuing Eid holiday, brings with it some respite for these unsettled countries.

Meanwhile closer to home, we were pleased to host Kentz International at our last Opportunities lunch in Abu Dhabi which followed on from its EIC debut at EIC Connect Oil, Gas & Power. They are certainly expanding their footprint across the region, especially in Iraq and Saudi Arabia. Our next event, on 28 August, is our Fish & Chips networking night which will be at Wheeler’s restaurant. Following on from this, we hope to announce further speakers who can keep our local membership informed of industry developments.

After three successful years, Aggreko has decided not to go ahead as prime sponsor for our 2014 Golf Tournament. From its meagre beginnings, the tournament has grown out of all recognition and part of that growth should be attributed to the considerable support that we have received from Aggreko in the past. However, this now leaves us with a huge hole to fill, so we would welcome any enquiries from member companies that might be interested in supporting and branding this great event scheduled for 20 February at the Els Club in Dubai.

On the training side, we are once again running the Fundamentals of Oil & Gas course which has proved to be very popular with us having a waiting list left over from the previous March. In addition, we are currently examining options to expand this particular programme of events and will naturally keep you informed.

Full details of our other planned events covering Overseas Delegations to Saudi Arabia, Qatar, Libya and Azerbaijan plus the up and coming ‘OTC of the Middle East’ ADIPEC in November and Basra Oil & Gas Show in December, can be found under the events calendar of our website where you can register your interest to participate.

Regional Comment

BP agrees retail price for Khazzan project BP has agreed a price for any gas produced from Oman’s Khazzan project as part of a commercial framework agreement with the government. BP has been negotiating for months over the price it will get for selling to the local market any gas produced from Khazzan where it is tight or hard to bring out gas. Khazzan is expected to start production in 2017 and reach full output of around 1 billion cubic feet per day a year later.

KRG approves Gulf Keystone’s Shaikan plan Gulf Keystone Petroleum expects to start production from the Shaikan oil field in the semi-autonomous region of Kurdistan at 40,000 barrels a day after the completion of a production facility in the field. The KRG’s ministry of natural resources has approved the field development plan. Production from Shaikan is expected to increase gradually to reach 150,000 barrels a day within three years and 250,000 barrels a day by 2018.

OMV wins right for UAE oil and gas exploration OMV has won rights to explore for oil and gas in Abu Dhabi. A regional subsidiary of OMV signed the deal with ADCO to pursue exploration of oil and natural gas in the eastern area of the emirate. OMV said it would work with National Oil on a seismic exploration campaign and exploratory drilling in the region.

Dana gas makes new discovery in Egypt Dana Gas has discovered more gas in Egypt’s Nile Delta, with 9.4 million cubic feet per day produced during initial tests. The Begonia-1 discovery well also produced 133 barrels of condensate, a light oil, in the test drilling in a sandstone reservoir of the Lower Abu Madi Formation.

Total evaluated resources for the Lower Abu Madi zone are between 7 and 15 billion cubic feet, along with around 100,000 barrels of condensate.

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

26

August 2013

Where can you meet the decision makers from the world’s leading energy projects?

EIC Connect: International Supply-Chain Event, Exhibition & Conference EIC Connect is a series of highly successful international supply-chain events designed to connect operators and contractors to UK suppliers.

Nuclear, Gas, coal & reNewable eNerGy Projects

Supply Chain Event & Conference 12th-13th November, Manchester Central, UK

Leading operators and EPC contractors present their forward work to suppliers from a series of theatres in the main exhibition hall.

Their sessions are supplemented by One-2-One meetings where delegates can put their products and services forward to decision makers. The adjoining exhibition allows UK companies to showcase their products and global capabilities to buyers from the world’s leading energy companies.

Supply Chain Event & Conference 25th – 26th November, Manchester Central, UK

Conference & Share Fair June 2015, Abu Dhabi, UAE

EIC Connect events also feature conference sessions designed to educate the supply chain on emerging market sectors allowing delegates to channel their business goals.

Widely recognised throughout the energy industry, the events typically attract up to 1000 SME business owners, sales engineers and project managers who all want to know how to work with major companies whilst being given the unique chance to meet with the decision makers and network on a level playing field.

What are the benefits of attending EIC Connect Events? as aN eXHIbItor/sPoNsor:

as a DeleGate:

• • • •

• Learn about high-value opportunities on global energy projects • Identify future markets and areas of growth • Book One 2 One meetings with buyers • Learn about new products and technologies in the industry • Access to decision makers • Fantastic networking opportunities

Promoted to the speakers in advance Guaranteed appointments with buyers Part of an exclusive showcase Invitations to exclusive ‘Ice Breaker’ Evening Reception • 2 x Delegate Places • Listed in the event programme & website • Outstanding value for money

The Energy Industries Council (the EIC) is the leading trade association for UK companies supplying27goods www.the-eic.com and services to the global energy industries.

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REGIstER INtEREst F o ExhIbItING R IN 2014 Now!

For more information, visit

August 2013 www.eic-connect.co.uk

If you would like more information or are interested in becoming an EIC member, please write, telephone, fax or email The EIC (Head Office and Southern Region) 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com The EIC (Northern Region) Belasis Business Centre, Belasis Hall Technology Park, Billingham TS23 4EA Tel +44 (0)1642 379 972 Fax +44 (0)1642 379 971 Email billingham@the-eic.com The EIC (Scotland) 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com The EIC (Middle East) PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com The EIC (Asia Pacific) 3 Temasek Avenue, Centennial Tower #16-02, Singapore 039190 Tel +65 6238 7756 Fax +65 6238 8179 Email singapore@the-eic.com The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com The EIC (South America) Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com The EIC (China) Tel +86 139 0125 6599 Email salina.zhang@the-eic.com Follow @TheEICEnergy on Twitter

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