EIC Monthly News August 2012

EIC Monthly News August 2012

Copyright 2012 iStockphoto LP

www.the-eic.com

The EIC Chief Executive

The Chief Executive Welcome to the August issue of the EIC Monthly News. The main oil and gas event taking place this month is the Offshore Northern Seas (ONS) conference in Stavanger from 28 to 31 August. Over 50,000 people are expected to attend ONS this year – an event which has now been running for almost 40 years. The EIC will be associated with the event in two main ways.

Firstly, as we have done in the past, we are proud to be managing the UK Pavilion in Hall J and showcasing the latest in UK innovation. 36 companies taking up 465 square metres of space will be exhibiting in the pavilion representing a wide variety of expertise from oilfield services to pipeline construction, instrumentation specialists, power providers, and other key elements of offshore operations, such as heat energy and Enhanced Oil Recovery (EOR).

It’s clear that the North Sea, despite having been in production for more than 40 years, still remains a centre for both potential future growth and technology innovation and we expect many of these UK companies to be leading the way. A recent 2012 report from research analysts Bernstein Research, for example, argued that some of the mature portfolios of the North Sea are actually undervalued by investors. Looking at some of the innovative technologies from UK companies on display at ONS and the potential to increase oil and gas recovery, we can understand why they come to this conclusion.

The EIC will also be using ONS this year to launch the third country report from EIC Consult, the market research and consultancy arm of the EIC – this time on Norway, Europe’s largest oil and gas producer. The report follows other country reports on the US and Iraqi energy sectors that have both garnered significant interest. Please see page 6.

Despite the technological and economic challenges facing the Norwegian energy sector, the EIC Consult report forecasts a healthy and consistent investment climate over the next five to ten years. Total active investments in the Norwegian oil and gas industry in 2012 are estimated to be around £19.87 billion, rising to £20.69 billion in 2013. These figures indicate a strong market characterised by investor confidence and, by the end of the year, EIC Consult predicts that planned investments in the Norwegian oil and gas sector will be up £6.75 billion compared to the total for 2011.

Recent finds, such as the Avaldsnes and Aldous Major prospects, also demonstrate that there may yet be substantial oil and gas reserves to be discovered in the North Sea, especially with new deepwater drilling technology opening up previously inaccessible areas. The EIC Consult report on Norway will be available for purchase from late August.

Moving globally and our latest EIC Monitor for the second quarter of 2012 indicates that with 401 new projects announced across the global energy supply chain with an estimated total value of US$295 billion, the international energy sector continues to offer substantial business opportunities for our members worldwide. See pages 4 and 5.

Finally, speaking of global business opportunities, particularly in the oil and gas sector, I should mention that delegate booking is now open for EIC Connect Oil & Gas 2012 taking place in Manchester between 27 and 28 November this year. We already have an outstanding list of presenting companies, including Aker Solutions, AMEC, Bechtel, BG Group, BP, Centrica, ConocoPhillips, Larsen & Toubro, Petrobras, Petrofac, SBM Offshore, Shell, Sonatrach and Talisman, and are confident that it will be the best EIC Connect event yet. If you would like to book your place as a delegate, please visit the website for further details. I wish you continuing success throughout the rest of 2012.

Ian Stokes www.the-eic.com

2

Contents

August 2012

The Chief Executive

2

ECITB & Saskatchewan

3

EIC Monitor

4

EIC Consult

6

New Members

8

Members News

10

UK & Overseas Events

14

Exhibitions/National Events 15 Exhibitions & Delegations 16 National Events

17

UK News

18

Middle East Spotlight

20

Middle East News

21

Asia Pacific News

22

China News

23

North America News

24

South America News

25

Training Services

26

Designed and published by The EIC 89 Albert Embankment London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com Web www.the-eic.com

August 2012

ECITB SME Apprenticeship Campaign

The Engineering Construction Industry Training Board (ECITB) has committed half a million pounds of levy funds to recruit more apprentices into the industry. The ECITB offer is to provide extra financial support of £1,500 per apprentice recruited on to an ECITB apprenticeship for SME’s who have not taken an apprentice in the last three years.

The National Apprenticeship Service (NAS) has launched a scheme to offer grants of £1,500 to up to 40,000 small and medium sized enterprises (SMEs) prepared to take on their first apprentice. The scheme, Apprenticeship Grants for Employers (AGE), has been backed by the Government. This complements similar initiatives in Wales (Young Recruits Programme – up to £2,600) and previous work in Scotland where the devolved nations have committed to incentivising employers to take on apprentices.

The industry recognises the need to train now for future project investment, so to further encourage more SMEs to take on apprentices the ECITB has committed up to half a million pounds in additional funding.

SMEs taking on an apprentice on an ECITB Apprenticeship Framework could receive an extra £3000 in grant support.

The support is not limited to organisations who pay the statutory levy that funds ECITB activity. To qualify for additional apprenticeship financial support you need to: • Be an SME (less than 250 employees).

• Not have taken an apprentice since 2009.

• Take an apprentice on an ECITB framework, see below.

• Recruit the apprentice for a September 2012 start.

ECITB Frameworks cover the following disciplines: Pipefitting; Moving Loads; Mechanical Fitting; Instrument and Control Maintenance; Plating; Mechanical Maintenance; Welding; Electrical Maintenance; Steel Erecting; Design and Draughting; Electrical Installation; Project Control – Planning, Cost Engineering & Estimating; Mechanical Installation; NonDestructive Testing. To find out more information contact: Andy Brown, Regional Operations Manager Andy.Brown@ecitb.org.uk +44 (0)7973 416 149 Martin Eatough, Head of Apprenticeships Martin.Eatough@ecitb.org.uk +44 (0)7795 236 454 More information can be found at: www.ecitb.org.uk Investment attraction for Saskatchewan is a pitch with a one-two punch. With conventional oil in place estimated at 45.6 billion barrels and access to the Bakken Formation – one of the hottest oil plays on the North American continent and one of its largest remaining conventional oil pools – the province also has a sound policy regime above ground to complement these natural assets. The Fraser Institute has ranked it as the sixth-best mining investment jurisdiction in the world and the best province in Canada for oil and gas investment on the strength of its stable and competitive royalty rates. In 2011 it was upgraded to AAA status by Standard & Poor’s, the first time in the province’s history it had achieved this top financial rating, by virtue of its strong liquidity, rebounding economy and low debt burden.

Saskatchewan is predicted by numerous forecasters to have one of the fastest-growing economies in Canada in 2012. Total investment in the province for this year is expected to exceed $20 billion, with $50 billion identified in mining projects over the next 20 years.

“Commitments of this nature show the highest level of confidence in the future of our province,” said Hon. Tim McMillan, Saskatchewan’s Minister Responsible for Energy and Resources. “There is a real advantage to doing business here – the Saskatchewan Advantage – and more and more global investors are not only realising it, they are choosing this province because of it”.

Jamie Shanks, Communications Officer Enterprise Saskatchewan

Saskatchewan: Canada’s Energy Powerhouse Regina, the capital city of the western Canadian province of Saskatchewan, hovers like an island in a grassy sea of prairie extending to every horizon.

It’s a vast, fertile region supporting an agricultural industry that supplies a third of the world’s durum wheat and leads the world in exports of such commodities as lentils, flaxseed and mustard.

In the ground beneath those crops, however, other commodities are the concern of a growing proportion of the world’s energy interests – something officials from Saskatchewan will be talking about in Aberdeen at the World Heavy Oil Congress in September 2012.

Saskatchewan is the second largest oil producer in Canada and its third largest producer of natural gas. With about 3% of Canada’s population, Saskatchewan accounts for one-third of the nation’s primary energy production and is one of the only places in the world that produces crude oil, natural gas, coal, uranium, biofuels, geothermal, wind and hydro power in a single jurisdiction. Saskatchewan is literally Canada’s energy powerhouse, and is at the forward edge of petroleum research, particularly regarding enhanced oil recovery (EOR) and horizontal well drilling. The Petroleum Technology Research Centre is at the forefront of EOR and Carbon Capture and Storage (CCS) research, managing the world’s largest CCS project in southeast Saskatchewan. The province also possesses some of the largest high-grade uranium deposits on the planet, accounting for nothing less than all of Canada’s uranium exports.

www.the-eic.com

The EIC will be hosting a Business Presentation: Opportunities in Saskatchewan on 14 September in Aberdeen and 17 September in London. For more information contact: sarah.slater@the-eic.com

3

August 2012

EIC Monitor

EIC Monitor The latest EIC Monitor, the quarterly report from the EIC tracking new projects across the global energy industry, shows an overall reduction in the number of projects announced during Q2 2012. The number of new projects announced during the last quarter (Q2 April – June 2012) across the global energy industry is down 15% compared to Q1 2012, while the total potential investment value of US$295 billion is down 7.5% on last quarter, and down 6.2% on Q2 2011.

Dr Phil Goddard, EIC Director of Consultancy, says: “This quarter we have seen a mixed-bag of results, with the upstream, downstream and power sectors all showing signs of growth in potential investment value while the potential value of new projects reported in the renewables sector is down by 25% on last quarter and 33% on the same quarter the previous year. However, overall, the picture shows that the industry as a whole is holding steady”.

tracks over 9400 active and proposed projects in the global energy industry and provides an industry 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, active and proposed projects recorded by the EIC each quarter.

Summary of Q2 2012 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 2012 and the previous four quarters.

Key highlights of Q2 2012 report 1 April – 30 June 2012 • Overall this quarter, there were 401 new projects announced across the global energy supply chain with an estimated total value of US$295 billion, compared to 471 in Q1 2012 totalling US$318 billion and 555 new projects in Q2 2011 worth US$314 billion.

• The upstream sector has seen an increase of 55% in the potential investment value of new projects, up from US$33 billion in Q1 2012 to US$50 billion in Q2 2012 with a fall of 34% in new project numbers.

• The midstream sector has seen a 56% decrease in the potential investment value of new projects with a 17% decrease in the number of new project announcements since Q1 2012, down from US$89 billion to US$39 billion this quarter. This decrease is partly due to the significant number of LNG projects proposed for development in the USA in the previous quarter.

• In the downstream sector, the number of new quarterly projects has dropped by 7% since Q1 2012 with a 47% increase in the total potential investment value from US$43 billion in Q1 2012 to US$63 billion in Q2 2011.

• In the renewables sector the number of new projects is down 22% in Q2 2012, with the potential investment value also falling 25% from US$76 billion in Q1 2012 to US$57 billion in Q2 2012.

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.

• In the power sector, the number of new projects (110) has increased by 8% this quarter with the potential total investment value of new projects rising 10% to US$85 billion in Q2 2012.

energizing your business

www.the-eic.com

4

August 2012

EIC Monitor

Analysis by Sector Upstream • There have been 46 new projects in the upstream sector totalling US$50.5 billion in Q2 2012. In comparison there were: • 70 new projects totalling US$32.5 billion in Q1 2012.

• 64 new projects totalling US$40.8 billion in Q2 2011.

• The Ukraine and Russia together account for two-thirds of the total potential investment value in this sector between them. The largest project announced is the proposed Skif shale gas project in the Ukraine which could see investment of up to US$12 billion.

Midstream • There have been 66 new projects in the midstream sector totalling US$39.1 billion in Q2 2012. In comparison there were: • 80 new projects totalling US$89.3 billion in Q1 2012.

• 61 new projects totalling US$45.4 billion in Q2 2011.

• Key hotspots of activity this quarter can be found in the USA and Canada, representing 63% of the total potential investment value between them. The most significant projects are the proposed US$5.7 billion TransCanada east coast pipeline in Canada, the proposed US$5 billion Mississippi LNG liquefaction plant in the USA and the proposed US$4 billion Coastal GasLink pipeline in Canada.

Downstream • There have been 54 new projects in the downstream sector totalling US$62.5 billion in Q2 2012. In comparison there were: • 58 new projects totalling US$42.5 billion in Q1 2012.

• 70 new projects totalling US$53.4 billion in Q2 2011.

• Venezuela and Russia represent 40% of the total potential investment value of projects announced this quarter, with 9 projects worth US$25 billion. The largest projects are the proposed US$9.7 billion Petrobicentenario refinery in Venezuela and the US$5 billion Moscow oil refinery in Russia.

Renewables • There have been 125 new projects in the renewables sector totalling US$57.2 billion in Q2 2012. In comparison there were: • 161 new projects totalling US$76.1 billion in Q1 2012.

• 216 new projects totalling US$85.7 billion in Q2 2011.

• Whilst there is a wide spread of projects around the globe, with 42 countries announcing renewables projects, France and Pakistan stand out as the clear leaders this quarter. France announced US$10 billion of offshore wind farm projects, and Pakistan’s figures were dominated by the US$5 billion Dasu hydroelectric power plant.

Power • There have been 110 new projects in the power sector totalling US$85.4 billion in Q2 2012. In comparison there were: • 102 new projects totalling US$78.0 billion in Q1 2012.

• 144 new projects totalling US$89.0 billion in Q2 2011.

• The most significant volume of announcements came from the USA and India, this quarter, with 9 projects in the USA with a combined potential investment value of US$23 billion and 10 projects in India with a value of US$11 billion. The largest project is the US$18 billion Turkey Point nuclear plant expansion (units 6 and 7) in the USA. www.the-eic.com

5

August 2012

EIC Consult Whether you already have an established presence in a particular country or are considering opportunities in new markets, our Energy Overview Reports will equip you with the insight required to achieve success in often complex and diverse global business environments.

To date in 2012 we have completed Energy Overview Reports on the USA and Iraq, which are available for purchase on our website at www.eic-consult.com Our upcoming reports will include Norway (August), UK (November) and India (February).

Our sector specific reports are designed to help assess market potential and the requirement for capital goods and services. Our next series of focused sector reports will be launched later this year and cover a wide range of energy industries. We also offer client commercial services on an individual tailored basis. These can be quite varied ranging from in-house presentations to strategic market overviews and competitor analyses.

A responsive and reliable intelligence delivery partner with the right knowledge and tools is critical for success.

At EIC Consult we are keen to hear which aspects of the energy sector really matter to you. We have a new Energy Blog at www.eic-consult.com that allows you to make comments, provoke discussion and interact with like-minded colleagues in an energy-centric arena. Further details of our services and products are also available on our website. Take a look at how we might assist you in your energy sector ambitions by visiting: www.eic-consult.com The USA and Iraq Energy Overview Reports are available now, order your copy today. Follow us on: @eicconsult

Launched in late 2011, EIC Consult is the EIC’s new consultancy and market analysis arm. With almost 70 years of experience in the energy sector and a global intelligence platform that delivers reliable and accurate business information, the EIC is the bedrock of industry knowledge. EIC Consult was originally derived from the increasing requests made to our Business Intelligence department over the years that were beyond the scope of our EICDataStream product. EIC Consult aims to raise the EIC’s expertise to another level and provide our clients with a critical and dynamic analysis of international energy and infrastructure markets.

We now have a range of products designed to ensure that our clients can develop long term business strategies, enhance their decision making capability and capitalise on prospective opportunities.

Our Energy Overview Reports focus on particular countries, providing a comprehensive insight into energy matters that incorporate the most recent developments in policy, security, finance, taxation and trade. The reports attend to the challenge of operating abroad and integrate practical advice including a cultural overview, social history and appropriate business methodology, with detailed information on major infrastructure projects and growth expectations across all the major energy sectors including upstream, midstream, downstream, power and renewables.

www.the-eic.com

6

August 2012

EIC Consult

www.the-eic.com

77

August 2012

New EIC Members The Nominated Representative is Mr Steve Crawshaw, Sales Director. Canalta Flow Measurement Ltd boasts a vast differential pressure product portfolio to answer any application required. They project manage, manufacture, assemble, test and warehouse several differential pressure product lines ‘in-house’, from well to consumer, onshore and offshore. Canalta Flow Measurement Ltd has Technical Sales Offices in Argentina and the UK, supported by a global distribution network. Canalta is your partner for differential pressure requirements.

New EIC Members New Primary Member

Allseas Global Logistics International Logistics Centre Fosse Way, Newark Nottinghamshire NG24 4SP Tel +44 (0)330 555 8888 Fax +44 (0)1636 605 321 Email richard.dale@allseasglobal.com Web www.allseasglobal.com The Nominated Representative is Mr Richard Dale, Sales Manager. Allseas Global Logistics is a leading, award winning logistics and forwarding services provider, offering complete bespoke services to the energy industry specialising in project, heavy lift and out of gauge movements on a worldwide basis. Headquartered in Newark, Allseas has offices in Brighouse, port offices in Tilbury and Felixstowe with overseas branches in Dubai, Rio de Janeiro, Antwerp and Singapore. A direct airfreight division and state of the art export packing facilities are based at its 60,000sq ft Midlands Logistics Centre. Allseas specialises in providing efficient straightforward solutions to any size shipment using any mode of transport to any destination. Being named as winners of both BIFA and IFW Project Forwarders Awards in less than 12 months is a clear indication of the confidence shippers show in Allseas and its staff.

New Global Member

Cullum Detuners Ltd Adams Close Heanor Gate Industrial Park Heanor, Derbyshire DE75 7SW Tel +44 (0)1773 717 341 Fax +44 (0)1773 760 601 Email mark.george@cullum.co.uk Web www.cullum.co.uk The Nominated Representative is Mr Mark George, Sales and Business Development Director. Cullum Detuners Limited is a world leading engineering company with a proven track record in providing advanced engineered solutions to the aerospace, energy, marine and nuclear sectors. Cullum Energy offers an extensive range of noise control and filtration products for onshore and offshore gas turbine installations. Their global client base spans across gas turbine OEM’s, EPC contractors and operators. Cullum supports first time equipment supply and life-extension and retrofit projects for in-service equipment in all locations. Cullum Nuclear supplies high integrity lifting equipment, cranes and handling devices to the nuclear industry. From conceptual design to installation make Cullum your first choice.

New Global Member

Aquaterra Energy Ltd 2 Alkmaar Way Norwich International Business Park Norwich NR6 6BF Tel +44 (0)1603 788 233 Fax +44 (0)1603 785 150 Email andymcdowell@aquaterraenergy.com Web www.aquaterraenergy.com The Nominated Representative is Mr Andy McDowell, Sales Director. Aquaterra Energy provides world-class products and services for the international offshore oil and gas industry, covering the full scope of a drilling programme from engineering analysis to equipment installation, to support its customers with the development of new offshore oil and gas fields. The company designs and supplies drilling riser systems and specialist offshore structures, and provides equipment rental and consultancy services. Aquaterra Energy has extensive experience in the North Sea, South East Asia and West Africa and a growing professional reputation and local presence across Europe and the USA.

New Global Member

Hobbs Valve

Unit L, Trecenydd Business Park Caerphilly, South Wales CF83 2RZ Tel +44 (0)2920 861 099 Fax +44 (0)2920 861 073 Email kevinsullivan@hobbsvalve.com Web www.hobbsvalve.com The Nominated Representative is Mr Kevin Sullivan, Sales & Contracts Manager. Hobbs Valve is an industry leader in the design and manufacture of triple offset butterfly valves. UK based Hobbs Valve is at the forefront of innovation, producing high performance triple offset butterfly valves for the global industries of oil and gas, chemical, petrochemical, nuclear, marine and power. Their innovative, patented range of TVT metal seated valves was designed and developed in house using advanced precision engineering techniques and independently tested by accredited third parties. This ground breaking design produces optimum performance, with the TVT range of triple offset butterfly valves able to provide maximum resistance during high intensity applications. The company is ethically committed to achieving excellence in standards of design, customer care, professionalism, quality and safety through

New Global Member

Canalta Flow Measurement Ltd Unit 3, Park Farm Business Centre Fornham St Genevieve Bury St Edmunds Suffolk IP28 6TS Tel +44 (0)7824 504 866 Email scrawshaw@canaltaflow.com Web www.canaltaflow.com www.the-eic.com

8

August 2012

New EIC Members Singapore offices, and their international network of selected firms. This enables Nabarro to work on major UK and international projects across Europe, the Middle East and North Africa, Asia Pacific and the United States.

the continual development of their products and services. Implementation of internationally recognised accreditations such as Quality Standard ISO 9001:2000 (2008) and PED 97/23/EC ensures that they are continually striving towards promoting safe working practices and environmental sustainability in line with OHSAS 18001 and ISO 14001.

New Global Member

NSSLGlobal Ltd 6 Wells Place Gatton Park Business Centre Redhill RH1 3DR Tel +44 (0)1737 648 800 Fax +44 (0)1737 648 888 Email peter.crafter@nsslglobal.com Web www.nsslglobal.com The Nominated Representative is Mr Peter Crafter, Sales Director. Established in 1969, NSSLGlobal is an independent service provider for satellite communications solutions. With a wide range of services and extensive experience of systems integration, network management and application development, their focus is on providing communication and IT solutions to the maritime, government, energy, media, finance and corporate sectors. NSSLGlobal is based in the UK and has a network of engineers and service agents worldwide to provide in-country support to its global customer base. Most importantly, NSSLGlobal prides itself as being at the forefront of technology with service offerings for customers that want to stay ahead of the technology wave. NSSLGlobal launched its broadband DVB-RCS2 Land Earth Stations in Florida and California in the USA as well as in Nittedal, Norway and Cyprus to support an ever-increasing installed base of hundreds of customers in both the maritime and land markets globally. NSSLGlobal Ltd is an Inmarsat Distribution Partner for BGAN, FleetBroadband and GSPS and is also a Master Distributor and Certified Partner for Thrane & Thrane satellite and radio equipment as well as a Thuraya Service Provider and a Reseller of Beam Communications equipment.

New Global Member

Hydratron Ltd Stuart Road, Broardheath Cheshire WA14 5GJ Tel +44 (0)161 928 6221 Fax +44 (0)161 927 7085 Email fin@hydratron.co.uk Web www.hydratron.co.uk The Nominated Representative is Mr Findlay Beveridge, Managing Director. Hydratron Ltd is part of the Pressure Technologies Plc group of companies based in the UK. Founded in 1981 they have long since been a leading manufacturer of high pressure liquid and gas pumps, systems and accessories, supplying technology to the oil and gas and power generation markets and industries worldwide. With a reputation for very personalised service along with their enthusiasm for developing new ideas with customers, they have evolved from a successful family owned UK business into a truly global provider, serving all regions with their range of testing and process related products and systems. Hydratron specialises in the design and manufacture of high pressure air driven fluid pumping equipment including: air driven liquid pumps, 65,000 PSI (4422 Bar); air driven gas booster pumps, nitrogen, air, helium, etc up to 26,700 PSI (1816 Bar); hand operated hydraulic pumps, stainless steel up to 25,000 PSI (1,700 Bar); hydrostatic and gas test systems, for testing valves, hoses, pressure vessels, pipelines, components and systems; hydraulic control panels, operating valves actuators etc; flushing rigs, bespoke air driven and electric system designs suitable for systems to Nas 6; high pressure valves, fittings, tubing and manifolds, hydraulic or gas applications up to 60,000 PSI (4081 Bar).

New Global Member

Willis Ltd

New Global Member

The Willis Building 51 Lime Street London EC3M 7DQ Tel +44 (0)20 3124 6000 Fax +44 (0)20 3124 6266 Email david.bagnall@willis.com Web www.willis.com The Nominated Representative is Mr David Bagnall, Sales & Marketing Director. Willis Energy is a global business unit, specialising in providing insurance solutions to an international portfolio of clients in the upstream, midstream and downstream sectors. Willis is a global leader in the field of Energy Risk Management, handling premiums in excess of US$1bn per annum. Willis Energy works with a wide diversity of clients, including national oil companies, major oil groups, large independent oil and gas companies, small and medium sized enterprises, companies involved in the construction of oil and gas facilities and drilling and service contractors.

Nabarro LLP Lacon house 84 Theobalds Road London WC1X 8RW Tel +44 (0)20 7524 6000 Fax +44 (0)20 7524 6524 Email me.jones@nabarro.com Web www.nabarro.com The Nominated Representative is Mr Matthew Jones, Partner. Nabarro is a leading commercial law firm renowned for its positive, practical approach and delivering clear, business-focused advice. The firm offers a broad range of legal services to major clients in the UK and internationally. Their infrastructure group brings together a broad range of specialists who work closely with clients to help conceive and execute projects, creating value in that process. Their work is increasingly international, with resources available from their UK and www.the-eic.com

9

August 2012

EIC Members News

Members News

BARTEC

Weld overlay cladding and fabrication specialist Arc Energy Resources has achieved an impressive list of industry certifications following a recent successful audit by Lloyd’s Register for OHSAS 18001:2007 certification of a new occupational health and safety management system developed and implemented by the company.

Managing Director Alan Robinson said that in a challenging business environment the company has continued to invest in equipment and people, allowing the company to develop: “During the recession we’ve planned for the future making a substantial investment in a new FARO measuring arm and spending £500,000 on two new rotating head welding machines, extending the size and scope of corrosion resistant weld overlay contracts we can handle”.

The company is able to clad bores up to four metres diameter and areas of restricted access within bores as small as 20mm diameter. Typical weld overlay materials in common use include Inconel 625, Inconel 825, Monel, Hastalloy and stainless steels amongst others. Arc Energy also offers in-house test weld, heat treatment, PMI and NDT facilities.

Alan Robinson said achieving OHSAS 18001 required a cultural change within the business and a significant commitment from all personnel in terms of attitudes and values. In return he believes it will raise working efficiencies, performance and morale by creating a safer environment in which to work, with the added benefit of broadening future business opportunities within the oil and gas, nuclear and renewable energy industries.

The accreditation follows a placement in the top six of UK companies in the Manufacturing, Logistics and Transport category of the inaugural St John Ambulance First Aid in the Workplace Awards in November 2011. For further information, please contact Vince Wheeler: Tel +44 (0)1453 823 523 Email sales@arcenergy.co.uk

PEGASUS ensures protection in extreme operating areas: GPS receivers and special software make PEGASUS an efficient online tracking system, facilitating new options for personal security, hazardous materials, transporters and other logistical tasks. PEGASUS data can be stored and evaluated on an in-house server, or a dedicated BARTEC server. The man down function reacts to the absence of movement and triggers an alarm after a defined period of time. The device is located using GPS. The alarm including the GPS position data can be forwarded as a text message, link to the position or via GPRS to a server. For lone workers, this function is particularly valuable. A freely programmable emergency call button provides added safety in case of an emergency.

Workplace safety is the keyword where simultaneous working and phoning are concerned. With a suitable Bluetooth headset, talking on the phone becomes possible even while doing activities that require two hands. PEGASUS also features a hands-free function and vibrator alert.

The keyboard is generously dimensioned and offers enough space for steady operation, even with gloves. To prevent operating errors, all keys give tactile feedback in the form of a click. The straightforward and clearly structured menu design makes operation simple for the user. The mobile phone is available in several versions to offer the optimum device for all applications and operational areas. With a Quad Band GSM module (850/900/1800/1900 MHz), the device is ideally equipped for utilisation on all continents. Visit: www.bartec.co.uk

PEGASUS, the new mobile phone and online tracking system developed by BARTEC, is especially designed for industrial applications. With its rugged design and high protection class IP 65, it is ideally suited for use at operating temperatures of -20˚C to 60˚C in the chemical and pharmaceutical industries as well as in the oil and gas sectors. Certified according to ATEX, IECEX, UL and INMETRO, this innovative further development is especially suitable for potentially explosive atmospheres in the IIC Gas Group.

CompactGTL, the pioneer of modular gas to liquid solutions, has announced that Kawasaki Heavy Industries (KHI) has taken a minority shareholding (2.2%) in the company. In addition to investing in CompactGTL, KHI has become a strategic supply chain partner to execute the reactor modularisation for its modular gas to liquids commercial scale plants.

To submit articles to the Members News section, please send no more than 300 words, and a good quality photograph (preferably 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 3 September for the October issue.

www.the-eic.com

10

August 2012

EIC Members News Phil Kelshaw, Managing Director, Flexitallic Ltd said: “We are very excited about the launch of Change™, the new generation of sealing technology. It’s a fitting way to mark one hundred years of innovation and kick-start our second century at the forefront of industry technology”.

Russ Currie, Applications Engineering Manager, Flexitallic Ltd said: “We developed a unique sealing construction and new welding process to engineer Change™, which was created in direct response to customers’ long-term problems with gaskets in poor performing heat exchangers. Change™ has outperformed all alternative gaskets including our own!

Efficiencies in production methods have also enabled this new technology to be a cost-effective solution for customers”. Initial end-user response has been extremely positive. Every client consulted expressed a commitment to specifying Change™, which will be available later this year. For more information please visit: www.flexitalliceu.co.uk

The announcement of the KHI investment follows a similar agreement with Sumitomo Corporation in 2010 when it took a minority shareholding in CompactGTL. Sumitomo Precision Products manufactures and supplies the proprietary SMR and FT brazed reactor blocks for CompactGTL, which will then be modularised by KHI. An additional benefit of the agreement with KHI allows for the construction of the reactors and the subsequent modularisation to be executed in close proximity as KHI’s facilities, in Harima, are only a short distance from the Sumitomo Precision Products plant in Amagasaki. The shipping of the complete reactors will then take place from Kawasaki’s quayside facilities at Harima, to clients around the world.

The announcement of the KHI deal completes the CompactGTL supply chain and follows on from the recent announcement that Johnson Matthey is the strategic partner for the development, manufacture and supply of catalysts for its modular gas to liquids commercial scale plants.

Nicholas Gay, Chief Executive, CompactGTL said: “The announcement of KHI as our reactor modules partner completes our world-class supply chain. In addition, the external investments in CompactGTL reflects the high level of confidence in our modular gas to liquids solution to handle the problem of associated gas and its potential to unlock the value of oil fields previously considered to be uneconomic”. For more information please visit: www.compactgtl.com

Ambienta SGR has acquired a 35% stake in FoundOcean.

Jim Bell, FoundOcean Managing Director explained: “We are delighted that Ambienta has chosen to invest in FoundOcean as it makes the transition from a 40 person company to 100 and beyond. The investment will enable FoundOcean to continue with its forecasted growth strategy of expanding its high profile presence in the offshore renewables sector by building additional grout mixing equipment, and employing more engineers and operational personnel”.

FoundOcean has completed foundation grouting for four offshore renewables contracts since 2010 including Ormonde and Thornton Bank offshore wind farms, and has been awarded a further three offshore wind farms comprising a total of 248 structures, starting in 2012. It is the dedication and professionalism of FoundOcean’s growing team of offshore personnel that keeps their long term clients returning and new clients wanting to work with them.

The synergy between the two companies was paramount to the deal. Ambienta brings a wealth of experience from corporate management to engineering, as well as access to a wide range of financial and industrial markets including cement manufacturing. FoundOcean boasts a large proportion of technical and professionally qualified employees as well as sophisticated corporate governance and management systems.

Three of Ambienta’s management team will take positions on FoundOcean’s Board to support the entry in the offshore renewables sector and the development of international operations: Rolando Polli, Founding Partner; Giancarlo Beraudo, Associate; and Rudolf Ohnesorge, Investment Partner. They join FoundOcean’s Chairman, Keith Miller; Jim Bell, Managing Director; Martin Hardy, Commercial Director; Neil Smith, Finance Director; Francis Bartlett, Corporate Affairs Director and Malcolm Head, Legal Director. For more information please visit: www.foundocean.com

Flexitallic

To mark Flexitallic’s Centennial year – the 100th anniversary of the invention of the spiral wound gasket, the company, with UK headquarters in Cleckheaton, is launching a new innovation in metal-wound gaskets – Change™, set to transform the global sealing industry.

Another industry first for Flexitallic, the Change™ gasket delivers a more dynamic seal, with superior compression and recovery than any other gasket on the market. Initially developed for heat exchangers, Change™ can be supplied with Thermiculite®, PTFE, graphite filler and a wide variety of other metals, making it suitable for an extensive range of applications.

Phil Kelshaw, Managing Director, Flexitallic Ltd

www.the-eic.com

11

August 2012

EIC Members News Another advantage offered by Intertec’s cabinets is the ability to incorporate easy-access panels to simplify maintenance and inspection, because of the rigid structure provided by the composite construction materials. Rapid access is less easy to achieve with other protection methods such as blankets or intumescent coatings.

As there is no specific international standard for this application area, process plant designers tend to employ the rapid temperature rise fire curves of ANSI/ UL 1709, a standard used to protect structural steel in buildings. Hydrocarbon processing plants are one of the key application areas, as fires here can reach 1093˚C within five minutes.

The third-party testing was carried out by MPA Dresden.

After 90 minutes, the body temperature of an example electrical actuator mounted inside was still less than 55˚C – considerably below the 60˚C target. The cabinet also retained its structural integrity, suggesting it could survive even longer. A video of the test is at: www.intertec.info

Hydrobolt Group is a manufacturer of bespoke fasteners, flanges and fittings supplying primarily the energy markets. The company’s niche is fast turnaround, lower volume, specialist products.

Significant growth in turnover and results have been achieved for 2011/12 leading to the company’s most successful year. The growth was a result of expanding the company’s product range and specialisms, venturing in to new geographical markets, and a strategic acquisition.

Like for like sales were up 23% and actual sales 29%.

The operating result increased by 41% and a further 27 people were added to the employee head count.

The company has been focusing on overseas markets, and in particular, energy projects in less developed countries. Export now accounts for over 70% of the company’s turnover and business from outside the EU represents 40% of all exports. The rapidly growing subsea market is also making significant contributions to additional turnover, as subsea specifications tighten, products become more specialised, and more emphasis is put on quality and integrity of product.

In April 2011, Hydrobolt Group acquired BCSF (Birmingham Coldform & Special Fasteners Ltd) a specialist cold forming company. Shortly after, Pipeline, a division manufacturing special flanges and fittings and offering pipeline package solutions was established. The new products complement the historical ones and help the company offer a ‘one stop shop’ to its customers.

Business levels for the current financial year remain high and the first quarter budget has been exceeded.

Managing Director Jamie Simpson said: “The company continues to look for growth and diversification to further strengthen our position. The markets in which we operate are vast and there are many opportunities for expansion”.

For more information please visit: www.hydroboltgroup.com

Compliant to NAMUR standard installation lengths the OPTIMASS 6400 from KROHNE is available in sizes DN 08 to DN 250 providing accurate measurement, even in cryogenic and high temperature applications ranging from -200 to +400˚C/-328 to 752˚F. Furthermore, the OPTIMASS 6400 will operate in high pressure environments up to 200 bar (2900psi).

The OPTIMASS 6400 is the world’s first Coriolis mass flowmeter to feature advanced Entrained Gas Management (EGM). In the past, gas entrainments in liquid media presented a huge challenge for mass flowmeters because the relative movement between gas and fluid dampens the amplitude of the measuring tube. This dampening leads to inconsistent sensor amplitudes, which interfere with the electronics’ capability to determine the actual resonant frequency. While other mass flowmeters simply ‘freeze’ their last stable reading to cover this ‘loss of measurement’, the OPTIMASS 6400 with EGM is able to follow and correct for the varying amplitudes. This is achieved for entrained gas up to 100% of volume and continues to present an actual measured reading, together with an indication or configurable alarm for the user. This indication can be very helpful to improve processes by identifying transient gas entrainments.

The unique feature of EGM and custody transfer approvals for both liquids (OIML R-117-1/MI005) and gases (OIML - R137/MI002), make the OPTIMASS 6400 suitable for process industries and specialist applications such as LNG, CNG or supercritical gases in terminal or storage/bunkering, along with custody transfer applications. The OPTIMASS 6400 is available in stainless steel 316L, Hastelloy® C22 and Duplex UNS31803. In addition to the high technical specification, the OPTIMASS 6400 has the flexibility to achieve seven measuring functions: mass flow rate, mass counter, density, temperature, volume flow rate, volume counter and concentration of fluids including alcohol concentration.

A novel new range of cabinets to protect critical process equipment in hazardous areas against very high temperature fires has been launched by the field equipment protection specialist Intertec. The cabinets ensure that equipment such as emergency shutdown valves remain operational by keeping them below 60˚C for periods of up to 90 minutes in the event of a hydrocarbonbased fire, to allow time for controlled shutdown.

Passive fire protection cabinets for process plant applications are usually only required to provide 30 minutes of protection. Intertec’s new cabinet provides at least three times this duration. This provides a very broad margin of safety to ensure that plant operators are able to continue remotely controlling critical valves to ensure that the process cannot feed the flames with flammable materials, or that vessels do not burst from over-pressurisation. It additionally provides as much control time as possible to support personnel evacuation and fire fighting responses. www.the-eic.com

12

August 2012

EIC Members News Set up and operation of the OPTIMASS 6400 is simple and convenient thanks to a user-friendly interface, multi-lingual high contrast rotating display and 4 integrated optical/push buttons. The tried and tested HART®, FOUNDATION fieldbus™ and PROFIBUS® interfaces are used for communication. Configuration uses PACTware™, including the necessary DTM free of charge. Approved according to ATEX, IECEx, GOST and cFMus, the New MFC 400 mass flow signal converter is perfectly suited to all measuring tasks at the highest level of technology offering excellent zero stability and advanced density measurement. For more information please visit: www.krohne.com

Leading North West recruitment specialist Scantec says demand for workers to work in the nuclear industry is still growing. The company is using its in-depth knowledge and experience of a variety of technical and engineering industries to help plug a serious skills gap in the nuclear sector. The Birkenhead based firm has supplied specialist resources to the nuclear industry for 20 years. It is now working with personnel from other sectors such as water and pharmaceutical whose skills are proving lucrative in the resurgent nuclear sector.

Adam Spelman, Director of Scantec Personnel Ltd said: “Nuclear knowledge is preferred but it is not essential. We currently have vacancies for people in various disciplines that include project controls, engineering, health and safety, construction and environmental waste management.

We supply workers for three main areas that do not exclusively need specialist nuclear knowledge – new-build, decommissioning and site maintenance. In fact, scientists form only a small percentage of the nuclear workforce”.

Industry analysts are predicting an unprecedented demand for people with the right skills to support newbuild programmes and the decommissioning of the current generation of nuclear power stations. The UK government says it will push ahead with its plans to build eight new nuclear reactors over the next 14 years. For more information please visit: www.scantec.co.uk

Sandvik Materials Technology UK achieved improved Verify scores following a recent audit from the FPAL Assessment Services Team. FPAL (First Point Assessment) is widely recognised as the supplier management system for the oil and gas industry which supports buyer to supplier relationships in the industry through provision of accurate and accessible supply chain information online. The system is used by major operators and large service companies across Europe to source suppliers online. Sandvik Materials Technology had recently participated in an in-depth FPAL audit, known as Verify; which evaluates a supplier’s capabilities in the areas of Health, Safety, Environment, Competency and Training.

In the extensively detailed assessment, which was carried out onsite, Sandvik Materials Technology recorded overall impressive scores of 8.9 for Health & Safety, 8.9 for Environment and 8.7 for Competence & Training. Despite excellent scores as a benchmark from the previous Verify audit, these scores identified significant progress and demonstrate the company’s commitment to continuous improvement by means of best practice.

Sandvik is always looking to improve its systems for operations within the oil and gas industry, as UK Market Manager Haydn Eagle pointed out: “We believe it is imperative as a supplier to maintain all the relevant accreditation and FPAL Verify ensures our customers and partners know the standards we work to and exceed, when working with us. Last time we were extremely pleased with our overall assessment figures, but are clearly delighted that we have improved on those high scores this time round. It is testament to the hard work and dedication of our team and the high standards that we continue to set ourselves”.

The Health & Safety and Environmental practices are aligned with the oil and gas industry’s OGP and NORSOK standards and the results of the supplier assessments are shared with those FPAL purchasers who participate in the Verify scheme. Developed by the industry for the industry, the scheme has over 3000 supplier records that are utilised by 90 purchasers as the Pan European vendor selection system for oil and gas. For further details contact Sandvik direct: Tel +44 (0)121 504 5111 www.the-eic.com

The world’s largest LNG producing company, Qatargas, has awarded pipeline engineering company STATS Group a multi-million pound 10 year contract to provide remote pipeline isolation equipment. STATS will design, manufacture, test and supply a new range of high integrity Remote Tecno Plugs™ for 32”, 34” and 38” pipelines which will become part of Qatargas’ Emergency Pipeline Repair System (EPRS) for production facilities in the Arabian Gulf’s North Field, where gas and condensate is transferred by pipelines to Ras Laffan City for export.

STATS Group Chief Executive Officer, Pete Duguid, said the Qatargas award would establish his company’s reputation as a global leader in EPRS development and implementation: “To be awarded a contract of this magnitude underlines the confidence Qatargas has in STATS and our unique technologies and our ability to respond to all its pipeline integrity and repair issues. This award puts us in a very strong position to take advantage of the emerging EPRS sector in the Middle East and gives us a platform to establish our credentials as a leader in this type of work on a global scale”.

Mr Duguid added: “Qatar is investing billions of dollars in developing a world class gas supply infrastructure and the operators are focussed on providing the highest standards of integrity across their assets. We are pleased to be able to support Qatargas in establishing a benchmark for other global EPRS projects”. Please visit: www.statsgroup.com 13

August 2012

EIC UK & Overseas Events

UK & Overseas Events August 2012 7 Technical Workshop: Introduction to Pipe Supports 14 Management Course: Tendering for Success 15 Industry Overview: Fundamentals of Oil and Gas 16 Corporate Entertainment: Clay Pigeon Shoot 17 Management Course: Tendering for Success 21 Industry Outlook: Fundamentals of Midstream Processing 24 Corporate Entertainment: EIC Scotland Golf Day

Carpenter & Paterson, Welshpool Rothera Group, EIC London EIC London Seals Cove, Aberdeen Rothera Group, Aberdeen EIC Houston Downfield Golf Club, Dundee

September 2012 6 Business Presentation: Opportunities with Dana Petroleum Hilton Treetops Hotel, Aberdeen 6 Technical Workshop: Introduction to Bolted Joint Integrity Hydratight, Walsall 11 Technical Workshop: Introduction to Steam Turbine Technologies Dresser Rand, Peterborough 12 Business Presentation: Opportunities with AMEC Crowne Plaza, Abu Dhabi 13 Business Presentation: Opportunities with Doosan Power Systems Glasgow/Aberdeen tbc 13 Industry Overview: Fundamentals of Subsea Cranfield University, Milton Keynes 14 Business Presentation: Opportunities in Saskatchewan, Canada Aberdeen 17 Business Presentation: Opportunities in Saskatchewan, Canada EIC London 18 Industry Overview: Fundamentals of Liquefied Natural Gas eMJAY LNG, EIC Aberdeen 18 Industry Outlook: Fundamentals of Offshore Technologies EIC Houston 19 Corporate Entertainment: Rio Samba & Gas 2012 Rio de Janeiro 20 Corporate Entertainment: Mid-Autumn Festival Networking Tea EIC Singapore 20 Industry Overview: Fundamentals of Refining and Petrochemicals WorleyParsons, EIC London 25 Technical Workshop: Introduction to Gearbox Technology Voith Turbo, EIC London 26 Sector-Based Forum: Upstream The Underwater Centre, Fort William 27 Business Presentation: Opportunities with Fabricom & GSA Middlesbrough Football Club 27 HSE Training: Working Safety 3.2 (IOSH Accredited) EIC London October 2012 3 Technical Workshop: Introduction to Offshore & Subsea Valves BEL Valves, Newcastle 4 HSE Training: Introduction to the Pressure Equipment Directive Nuvia Ltd, Warrington

8-9 Management Course: The Experienced Manager Inspirit Training, EIC London 11 Management Course: Negotiation Skills Atherton Training, EIC London 16 Management Course: Time Management Resolution Training, EIC London 18 Business Presentation: Opportunities with Aquamarine Power Edinburgh 18 Technical Workshop: Introduction to Nuclear New Build EIC London 19 Technical Workshop: Introduction to Shale Gas IBC Global Academy, EIC London 24 Management Course: Why do we need Contracts?

EIC London 25 Corporate Entertainment: EIC National Dinner 2012 Royal Courts of Justice, London 25 HSE Training: Introduction to IGEM/TD/13 EIC London November 2012 1 Technical Workshop: Introduction to Subsea Systems ESD Simulation Training, EIC London 2 Technical Workshop: Introduction to FPSOs ESD Simulation Training, EIC London E.ON UK, Nottingham 6 Industry Overview: Fundamentals of Power

For further information on UK & Overseas Events and Training please contact: ukevents@the-eic.com

www.the-eic.com

14

August 2012

EIC Exhibitions & Delegations/EIC National Events

Exhibitions & Delegations 2012

Status

28 - 31 August Offshore Northern Seas (ONS) Stavanger Sold Out 17 - 20 September Rio Oil & Gas Rio de Janeiro Sold Out 14 - 19 October Overseas Delegation to Peru Booking Now 11 - 14 November ADIPEC Abu Dhabi Sold Out 18 - 23 November Overseas Delegation to Malaysia Booking Now 27 - 30 November Offshore South East Asia (OSEA) Singapore Booking Now 9 - 14 December Overseas Delegation to USA Power Register your Interest

2013

19 - 24 January Overseas Delegation to Libya Register your Interest

2 - 7 February Overseas Delegation to Kurdistan Register your Interest 17 - 22 February Overseas Delegation to Ghana Register your Interest 20 - 22 February Australasian Oil & Gas (AOG) Perth Booking Now 11 - 13 March Middle East Oil & Gas Show (MEOS) Bahrain Booking Now 19 - 21 March CIPPE Beijing Booking Now

6 - 9 May Offshore Technology Conference (OTC) Houston Sold Out

5 - 7 June Oil & Gas Asia (OGA) Kuala Lumpur Register your Interest 11 - 14 June Brasil Offshore Macae Register your Interest tbc Overseas Delegation to Egypt Register your Interest tbc Overseas Delegation to Russia Register your Interest For further information on Exhibitions & Missions please contact: events@the-eic.com

National Events

2012

27 - 28 November EIC Connect Oil & Gas Manchester

Status Book your delegate place online

2013 22 - 23 May EIC Member Pavilion at All-Energy 2013

4 June EIC Connect Oil, Gas & Power

3 - 6 September EIC Member Group @ Offshore Europe 12 - 13 November EIC Connect Energy

Aberdeen Abu Dhabi Aberdeen Manchester

Register your Interest to Exhibit Register your Interest Sold Out Register your Interest

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

Offshore South East Asia (OSEA) 27 – 30 November 2012 Marina Bay Sands, Singapore

Meet buyers from across Asia, book your space in the UK Pavilion today!

BOOK NOW: Tel +44 (0)20 7091 8600 Email events@the-eic.com www.the-eic.com

15

August 2012

EIC Overseas Exhibitions & Delegations

Overseas Exhibitions Overseas Delegations EIC Trade Delegation to Brazil 24 – 29 June 2012 Rio de Janeiro

UK Pavilion at Global Petroleum Show (GPS) 12 – 14 June 2012 Calgary

The EIC’s most recent trade delegation to Brazil focused on the highly lucrative FPSO developments in Brazil, visiting the main EPC contractors for hulls and modules as well as the main operators behind the multi-billion dollar investments.

The delegation, all seeking new business opportunities in the oil and gas sector, included representatives from AEG Power Solutions Ltd, Aggreko, Boustead International Heaters Ltd, Brush Electrical Machines Ltd, Craig Group, Koso Kent Introl, MML (McGeogh Marine Ltd), Rollstud Ltd, Steadfast Group, WMT Ltd and Wozair.

The group started with a Country Briefing and the delegation then met with IESA, an EPC contractor with an ever growing oil and gas division. The delegation networking reception was kindly sponsored by Aggreko and Grupo Planus, with HM Consul General in Rio de Janeiro Paula Walsh in attendance alongside 80 senior level guests. Felipe Pestana, Grupo Planus Soluções Empresariais said of their sponsorship of the networking reception: “We were absolutely thrilled with our experience as sponsors. The event was superbly organised, with very interesting companies participating and informative speeches in the briefing session”.

With Petrobras launching its business plan for 20122016 on the first day of the trade delegation, it was certainly an occasion to visit various departments of the national oil company. A visit to Statoil, the second largest operator in Brazil, showed of their long term commitment to the market, with the Peregrino field being Statoil’s largest international offshore operatorship to date. The group also visited UTC Engenharia and GE Oil and Gas as well as the impressive ship yard of Estaleiro Aliança in Niteroi.

There are many examples of enduring partnerships between the UK and Brazil. The opportunities in Brazil within the oil and gas sectors are vast. With commitment to the market there is no doubt that UK companies, with the notable integrity and quality of British products and services, can contribute towards the efficiency and costeffectiveness of Brazil’s oil and gas operations.

The EIC is managing the UK National Pavilion at Rio Oil & Gas 2012. For information on sponsorship opportunities please contact: laura.tavernor@the-eic.com

GPS has become one of the largest energy exhibitions since its inauguration in 1968, holding over 2000 service and supply exhibiting companies and attracting 63,000 visitors in June 2012. The UK National Pavilion housed CMP Products, Dynamic-Ceramic Ltd, EXHEAT Ltd, Howden Process Compressors, KBC Process Technology Ltd, Oilandgasjobsearch.com and Rota Engineering Ltd. The group benefited from a UK Trade & Investment reception hosted by Mr Alex Budden, Britain’s Consul General in Vancouver and Mr Gordan Campbell, Canada’s High Commissioner to the UK. Held at the Calgary Petroleum Club the reception attracted many guests looking forward to the exhibition and conference ahead. Along with a number of other networking events throughout the week, including a daily rodeo at Stampede Park, the UK companies were kept busy during their time in Calgary.

Alberta is best known for oil sands production, which is currently a booming sector, however there are challenges in getting access to these remaining reserves. Often they exist in remote locations, which can mean harsh environments for workers, technically complex and expensive methods of production, and environmental challenges. Canada also has approximately six billion barrels of oil located outside of the oil sands. These can be found primarily in Alberta, Saskatchewan and offshore Newfoundland and Labrador. There are also abundant amounts of natural gas, particularly in British Columbia, Alberta and offshore Nova Scotia. The easier-to-produce sources of natural gas are in decline, so there is also work starting in areas that were once considered too difficult to produce. These include natural gas from coal, tight gas, offshore gas and shale gas and increasing exploration and development in Northern Canada.

“The event was very well organised and executed as we have come to expect from the EIC, leaving us to focus on promoting our business in this very important market,” said Dave Parker, Sales Manager, CMP Products.

To register interest in exhibiting in the UK Pavilion at GPS 2014 please contact Laura Tavernor, Overseas Events Manager: laura.tavernor@the-eic.com www.the-eic.com

16

August 2012

National Events Event Programme Overview

Two of the EIC’s primary objectives are to educate our 600+ member companies as to how they can internationalise their business and understand the landscape in emerging sectors to prepare for entering these markets.

Many of the world’s leading oil and gas companies will be converging on Manchester this November for what is expected to be the biggest event of the year for the UK’s oil and gas supply chain – EIC Connect Oil & Gas 2012. The event, now in its 10th year will play host to Aker Solutions, AMEC, Bechtel, BG Group, BP, ConocoPhillips, Centrica, Petrobras, Petrofac, Shell and SBM Offshore who have all confirmed that they will be presenting details of their latest global oil and gas projects and supply chain and buying strategies at the event.

EIC Connect is our flagship event which allows all UK companies to take advantage of these initiatives. The EIC brings all levels of the supply chain together with the world’s leading companies to understand more about global energy projects; showcase new technologies and provide a forum to address the most pressing issues.

Hans Wagner, Proposals & Technical Manager at SBM Offshore said: “With contracts awarded to UK companies representing a quarter of SBM’s total spend each year, we are keen to provide a corporate update to the supply chain at EIC Connect this year – an event that has proved to be an excellent industry networking event in the past.

We look forward to sharing new developments and some of our technological and commercial challenges”.

We invite the operators and contractors to outline global opportunities in the supply chain event, meet with suppliers in the exhibition and carry out One 2 One appointments. We also invite key companies to cover complimenting topics for the owners of SME’s attending the conference.

Exhibitors Such is the high expectancy of quality speaker companies at EIC Connect, the exhibition space sold out within weeks of launching. Event sponsors include leading safety equipment specialists, Draeger Safety UK Ltd. “We believe that EIC Connect Oil & Gas is the perfect platform to showcase the Draeger business to the oil and gas sector,” commented Sophie Read of Draeger Safety UK. “We are delighted to be sponsoring an event with such a strong reputation and look forward to engaging with and developing long-term contacts”.

Identifying speakers Our members represent a broad cross section of the UK supply chain and as they utilise EICDataStream we can gauge the large scale global projects of most interest and topics to address to shape the programme for EIC Connect.

EIC members pay just £295.00+VAT to access the full two day programme on UK EIC Connect events which include: • Presentations from 20 major operators and contractors.

• One 2 One appointments with purchasers.

• Adjoining conference sessions covering industry topics.

• 70 exhibitors showcasing new products and services.

• Hot working lunch and refreshments.

• Presentation copy and delegate pack.

• Networking with around 1000 industry peers.

“We are tremendously excited about EIC Connect Oil and Gas this year,” said Sarah Lansdell, Manager of National Events at the EIC. “We have an outstanding speaker lineup and an exhibitor list that showcases the very best of the UK oil and gas supply chain. With the added value of a conference running alongside, we are confident that this will be the best EIC Connect event yet with over 1000 delegates expected, delivering high quality networking and significant revenue-generating opportunities across the supply chain”.

Why you should attend • Meet and access the people that matter – find new partners and develop future projects.

• Network in a truly global forum with senior decision makers on major energy projects.

• Participate in spirited industry debate with senior industry experts in the conference.

• Keep up to date with what the key players are doing and how this impacts your business.

• Align your corporate strategy in a global context and find new partners in new regions.

• Optimise your travel budget and meet over 1000 industry peers all under one roof. www.the-eic.com

Book your delegate place online

Visit the website to view who else is exhibiting and sponsoring EIC Connect Oil & Gas 2012 and to book your place online: www.eiconnect.co.uk

energizing your business

17

August 2012

EIC UK News

News from our UK offices

Business Presentation: Opportunities with Dana Petroleum Plc 6 September 2012 Hilton Treetops Hotel, Aberdeen Dana’s ambition is to be a leading oil and gas company in Europe, the Middle East and Africa. They are developing partnerships based on mutual advantage with their communities, suppliers and partners. The diversity of their operations means that they can’t possibly do everything themselves, so the strength, quality and integrity of their supply chain is critical to their success. The speakers are Paul Griffin, Managing Director at Dana Petroleum E&P Ltd and Graeme Urquhart, Group Procurement and Supply Chain Manager. Contact: les.brodie@the-eic.com

Forthcoming Events Corporate Entertainment: The Glorious 16th – Clay Pigeon Shoot 16 August 2012 Seals Cove Shooting Ground, Aberdeen Sponsorship opportunities still available

Business Presentation: Opportunities with Doosan Power Systems 13 September 2012 Location tbc Further details will be released shortly or check the website for more information. Contact: les.brodie@the-eic.com

EIC members and their guests are invited to join us for a clay pigeon shoot at Seals Cove Shooting Ground.

This afternoon out is an ideal way to entertain clients and reward staff and provides a great opportunity to network with a difference. The shooting experience lasts around 2 hours and includes instruction, gun fitting, 25 bird shoot, clays and cartridges with qualified CPSA instructors plus a BBQ will follow which will allow further networking opportunities. Please contact: les.brodie@the-eic.com

Business Presentation: Opportunities in Saskatchewan, Canada 14 September 2012, Aberdeen 17 September 2012, London Where would you find a single jurisdiction offering a wealth of natural crude oil, natural gas, uranium, potash and coal that also offers innovative technology research and development that is attracting the world’s attention? Rick Musleh, Energy Sector Manager with the Government of Saskatchewan’s Ministry of the Economy, will be in Aberdeen on Friday 14 September following the World Heavy Oil Congress and in London on Monday 17 September to talk about the western Canadian province, its natural resources, the opportunities that exist in its vibrant and growing economy and, most importantly, how to do business there. Contact: sarah.slater@the-eic.com

Corporate Entertainment: The EIC (Scotland) Annual Golf Day NEW DATE 24 August 2012 Downfield Golf Club, Dundee This event is open to EIC members and their guests

Downfield Golf Club

Due to the waterlogged course in June this event has been re-scheduled. It was fully booked but 2 additional tee times (2 x 2 teams of 4) have been secured. Downfield is recognised as one of the finest inland course in the United Kingdom.

It has played host to many events over its long history.

Programme: Stableford – Teams of four (ideally).

09.00am onwards – Bacon (or egg) rolls and tea/coffee (available just prior to beginning your round).

A high tea will be available as and when you finish your round with prize giving thereafter! This event is sponsored

by Air Partner Plc. Contact: les.brodie@the-eic.com

Business Presentation: Opportunities with Fabricom GDF SUEZ and GSA 27 September 2012 Middlesbrough Football Club GSA is a process led multidisciplinary engineering consultancy providing engineering design and project management services to the energy, chemical and process industries across the UK. Acquired by Fabricom GDF SUEZ in December 2010, GSA has now established an engineering office in Stokesley. This office has been opened to service key accounts in Teesside and build an engineering capability in the region supported from the Humberside base as and when necessary.

This event will begin with an introduction from Fabricom GDF SUEZ and will also include a presentation from Mike Smith, Managing Director of GSA which will give attendees an opportunity to hear of the group’s activities and how the business proposes to work with other regional supply chain companies. For more information please contact: jennifer.hole@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

18

August 2012

EIC UK News Business Presentation: Opportunities with Aquamarine Power 18 October 2012 Edinburgh Aquamarine Power is a wave energy company, with head offices in Edinburgh and further operations in Ireland. The company is currently developing its flagship technology, an innovative hydro-electric wave energy converter, known as Oyster®. Aquamarine Power’s goal is to develop commercial Oyster® wave farms around the world. Aquamarine Power recently won a major European Commission environment award. The company is currently commissioning its Oyster 800 device at the European Marine Energy Centre in Orkney.

Craig Denham, Project Engineer, is an outstanding speaker who has presented extremely successfully to EIC members in the past. Craig will talk about business opportunities currently available with Aquamarine Power including: background information on Aquamarine Power; current work and future opportunities; how to do business with Aquamarine Power, including how potential suppliers can pre-qualify and register as an approved vendor; key contact information including who the key project and procurement decision makers are. This will be a popular event. Please mark the date in your diaries now as places will be limited. Contact: les.brodie@the-eic.com

Corporate Entertainment: EIC National Dinner 25 October 2012 Royal Courts of Justice, London The 2012 EIC National Dinner is fast selling out, and with only a few remaining tables, we urge you to book your places ASAP to avoid disappointment. Set to be the biggest dinner to date, there will be over 500 guests in attendance – made up of representatives from the sectors’ major operators, developers, contractors and supply chain.

This is a unique event that brings together hundreds of people directly supplying or purchasing goods for energy projects worldwide. The EIC National Dinner is the perfect occasion to entertain clients, potential business partners or valued staff and to network with prospective customers and generate new business contacts. Last few remaining tables. Book your table today to avoid disappointment.

Visit: www.the-eic.com/NationalDinner For more information on any of these events please contact: Charlotte Hust, Manager, Southern Region Contact: charlotte.hust@the-eic.com Helen Doona, Manager, Northern Region Contact: helen.doona@the-eic.com Lesley-Anne Brodie, Manager, Scotland Contact: les.brodie@the-eic.com

Retirement of former CEO Mike Major A little wind and rain was not going to stop the UK staff and Board members from setting sail on the river Thames to celebrate the retirement of former CEO Mike Major on Friday 8 June.

Mike’s love of boats is well known and his wife Val and other family members joined forces with us to arrange a lunchtime trip on the Thames, all the while keeping it a secret from the Guest of Honour.

Staff and Board members boarded the Golden Salamander at Millbank Pier and set off down river to pick up Mike, Val and new CEO Ian Stokes from Westminster Pier. A stunned Mike was escorted up to the top deck to be greeted with cheers and a round of applause from the 55 guests.

After sailing past the Houses of Parliament, the London Eye, Shakespeare’s Globe, Tower Bridge and other London landmarks, guests were called to the lower deck for lunch and the speeches.

The Chairman of the Board Mike Rolls gave a wonderful speech, thanking Mike for all the hard work he has put in over the last four years. Mike took the opportunity to reflect on his time as CEO and to speculate on spending his gift vouchers on photo equipment for his new hobby to help keep him occupied during his retirement. All in all and despite the weather’s best efforts, it was a great day and a fantastic send off for Mike.

Sarah Slater Events & Communications Co-ordinator

www.the-eic.com

19

August 2012

Middle East Spotlight

Middle East Spotlight

So what are the routes available for UK companies who seek a degree of participation in this vibrant part of the world? Besides close engagement with experienced personnel available both within the EIC and UKTI, there are two forthcoming exhibitions that can be used as an ideal platform to meet key personnel and major regional players. The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) has grown expeditiously to become the major regional oil and gas event. Previously a bi-annual event, the increased popularity has driven the organisers to announce recently that it will now become an annual affair. The UK Pavilion organised and managed by the EIC has been sold out for the last six months and with a substantial waiting list, we can be confident that ADIPEC will continue to be the main attraction for the foreseeable future. ADIPEC will take place from 11 – 14 November 2012 at the Abu Dhabi National Exhibition Centre.

A smaller more focussed event is The Middle East Oil Show (MEOS) that takes place every two years in Bahrain. The conference theme is more highly technical which in turn attracts influential engineering heads that can be engaged with to promote technology. Also, being located in Bahrain, it has the attraction to Saudi, Kuwaiti and to a lesser degree Qatari delegates who take the opportunity to drive to the venue thus releasing them from the constraints of air travel, that we all know can be somewhat challenging, especially when things do not run exactly to schedule. Once again, the EIC continues to manage and organise a UK Pavilion. MEOS will take place from 11 – 13 March 2013 in the Bahrain International Exhibition & Convention Centre.

Any participant who has experienced the UK Pavilion exhibition package whether it be in the Middle East or elsewhere in the world, has the added comfort of knowing that all the hassles of logistics, furniture, stand design and other general administrative challenges are taken away from them with the result that all that is required is to independently arrange travel and accommodation, then just turn up to dress the booth before the show itself is open to the public. Added to this is, on most occasions, a dedicated reception arranged via the local embassy who will invite key personnel to network in a relaxed environment outside the confines of the exhibition venue.

For full details of these great business opportunities, please do not hesitate to contact the Overseas Events team: Tel +44 (0)20 7091 8600 Email events@the-eic.com

BOOK NOW

MEOS 2013 11 – 13 March 2013 Bahrain +44 (0)20 7091 8600 events@the-eic.com

Any analyst who keeps an eye on future global energy demand will be aware that there is only one region of the world that has the reserves and capacity to satisfy that increasing thirst – the Middle East. Taking figures from BP’s 2011 Statistical Review, just the six countries of the GCC (comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates) together hold more than half of the world’s total recoverable oil reserves plus 40% of the total gas reserves. When one includes the other countries outside this group but located within the Middle East region, then the figures move up to above 60% and 45% respectively.

Reserves of oil and gas are but one element of a complicated equation that explains why the region will continue to be a magnet for trade, especially for UK companies. To satisfy this growing demand, a high degree of investment in new production and development of known hydrocarbon deposits is required. This can be easily funded by the oil price that continues to hover around the $100 per barrel price, with no immediate signs of waning, the revenues from which are being utilised by astute regional governments by continually ploughing them back into developing new infrastructure and facilities.

The third ace in the pack is the confidence that is shown for UK products, services and technologies. Besides the fact that the UK offers what can be identified as one of the world’s most well developed higher education infrastructure (a vast majority of local engineers and management are proud to have gained their degrees from UK universities) the experience that has been gained from the numerous North Sea developments that some might argue are now approaching maturity, all bodes well for UK companies to target these relatively young countries that are naturally keen on developing their own indigenous human capital.

One final observation is to examine data that can be gleaned from our own projects database, EICDataStream.

Choosing two simple search criteria: Projects with a value of over $1bn and The Middle East Region. The results come up with a total of 278 projects and of those 278, more than 200 have been updated over the last four weeks. This in itself is a clear demonstration, if one were needed at all, as to how active the region has become.

www.the-eic.com

20

August 2012

EIC Middle East News

Middle East News

Before finishing off with our visitors, there are three dates for next year that need to be entered in your diaries. The first is 21 February when we will be holding the 3rd EIC Middle East Golf Tournament. Using the successful event model that was implemented this year, we are delighted to offer the same again but at a new venue, The Els Club in Dubai. 8 March has been chosen for the next Oil Baron’s Ball which once again will be held at Meydan, the racing world’s World Cup venue. Held four months later than the traditional November timing, the organisers are celebrating the 10th anniversary of this popular industry event. Finally, 4 June should be reserved for the next edition of EIC Connect. Building on the success of last year’s event, 2013 will be staged at the prestigious St Regis Hotel on Sadiyat Island, Abu Dhabi and will follow a similar structure to the Manchester oil and gas event scheduled for late November this year.

Moving to our visitors, it was a pleasure to meet up with Graham Fergusson from Inbal Valves who was making his first visit to the region whilst a frequent visitor, Tony Conroy from Ellis Patents took advantage of our hot desk facilities. Pantea Peters and Claire Bonfante from Control Risks passed by to introduce their colleague, Henry Smith who holds a particular interest in Libya.

Outside the office, we caught up with Lee Baker from Cooper, Michael Mair from Wood Group PSN, Yaseen Jaffar from Proclad plus Rashmi and colleagues from Aggreko where we delivered a ‘Lunch & Learn’ on the benefits of EIC membership.

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

Office News The month of August is traditionally the hottest time of the year with temperatures approaching the 50 degree mark making this particular period extremely challenging, especially for our local colleagues who are also enduring the month of Ramadan. For those of you who might not be aware of Ramadan, it is the 9th month on the Islamic calendar when Muslims are asked to fast during daylight hours, avoiding any food or drink and other social practices like smoking. The period lasts for up to 30 days after which there is a holiday celebration. Considered as being the ‘Holy Month’, it is a time of reflection and dedication. Office hours are generally reduced so for any UK based people contemplating a business visit, it is worth establishing working hours at the establishments you are targeting to go to during your trip. Talking of business visits, it is worth repeating the new visa rules being implemented by Saudi Arabia, that were mentioned in last month’s news.

Traditionally, a lot of UK business travellers have considered the Bahrain/Saudi Causeway as being an easy entrance option to the Kingdom, especially bearing in mind that the majority of the energy related establishments are located in the Eastern Province. It has come to our intention through our own experiences that this entry point is now closed to people entering the Kingdom for the first time on a newly issued visa.

Saudi visit visa’s issued by their Western Embassies and Consulates have apparently always been endorsed ‘By Air’. This remark is in Arabic and the majority of travellers will be unaware of this fact but from about 8/10 weeks ago, this aspect has started to be rigidly enforced by the border authorities so much so, that new arrivals entering for the first time on a newly issued visa are being refused entry at the Causeway and being sent back to Bahrain, so please ensure that your travelling colleagues are aware that they should consider making sure that they enter the Kingdom by air. After the initial entry, exit and in the case of multiple visas, re-entry can be facilitated at the Causeway. Like everything else in this part of the world, there is always the chance of this being rescinded, and if we hear anything different, then we will advise accordingly.

For a traditional pre-Ramadan networking evening, we chose an unusual venue at the newly opened Hard Rock Café which seemed to go down well with both members and non-members alike. Our private Chuck Berry Suite proved to be especially popular for the evening.

The seasonal slowing down of activities has allowed us to look at the possibility of offering a small selection of the most popular training courses that our London based colleagues deliver. Arrangements are advanced for both the Fundamentals of the Oil & Gas Industry and How to Write Winning Bids and as soon as everything is finalised, we will announce full details but in the meantime, please let the office know if these would be of interest to you.

Regional Comment US sanctions may stop UAE Iran condensate imports Dubai’s national oil company may have to stop importing condensate from Iran unless Washington grants it an exemption or temporary exception from the recent tightening of US sanctions. US State Department officials said that financial transactions that facilitate the import of Iranian condensate are liable to a new round of measures effective 28 June that aim to cut Iran’s oil revenues and force Tehran to drop its disputed nuclear programme. The fresh sanctions target condensate, produced in association with gas, which is Tehran’s second-biggest source of export revenue after crude and refined products, which were targeted in earlier sanctions.

Libya to raise oil and gas production capacity Libya’s Oil and Gas Minister, Abdurahman Benyezza has stated that Libya intends to invest $10 billion on raising oil and gas production capacity from existing fields and $20 billion on new exploration over the next ten years. Libya will also offer new production-sharing agreements to international oil companies on improved terms to existing contracts, but this won’t happen this year. This will be in part due to the elections which are rapidly approaching.

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

21

August 2012

EIC Asia Pacific News

Asia Pacific News

Japan MHI receives order for new-generation LNG carrier Mitsubishi Heavy Industries (MHI) has signed an agreement with Mitsui OSK Lines to build a ‘Sayaendo’ series new-generation LNG carrier. The ship offers significantly improved fuel consumption and maintainability through various features including enhanced ship structure efficiency. The ship will be used mainly for transportation of LNG for the Kansai Electric Power Co Inc. The LNG carrier measures 288.0m in length overall (LOA), 48.94m in width, and 11.55m in draft. The 138,000 gross tonnage (75,000 deadweight tonnage) ship is capable of carrying up to 153,000m3 of LNG (cargo tank total volume 155,000m3) using four Moss-type tanks.

Event Report

Industry Outlook: Understanding the Refining and Petrochemicals Processes 6 July 2012 EIC Singapore To cater for the high demand, we organised another session on Understanding the Refining and Petrochemicals Processes in which the processes and mechanism of oil refineries in relation to Singapore were discussed. 15 new and non-technical personnel attended.

Forthcoming Event Corporate Entertainment: Mid-Autumn Festival Networking Tea 20 September 2012 EIC Singapore The Mid-Autumn Festival, also known as the Moon Festival or Mooncake Festival is a popular, traditional lunar harvest festival celebrated annually on the 15th day of the eighth Chinese lunar month, when the moon is at its fullest. We are organising a mooncake-tasting networking session. Join us at this celebration and embrace the festive culture.

Philippines Otto receives extension to explore offshore The Philippines Department of Energy has granted Otto Energy a nine month extension to the third exploration sub-phase of Service Contract 69 in offshore Visayan Basin. The extension will give the project partners more time to evaluate three potential targets on the block, Lampos, Lampos South and Managau East, and select the most attractive prospect for drilling. Otto will use the extension period to start planning for an exploration well. Otto holds 70% in SC69, while Australia’s Frontier Gasfields and the Philippines-based Trans-Asia Oil & Energy Development hold 15% and 6% respectively.

For more information about upcoming events, or if you need any help or advice in the region, please contact the EIC Singapore office: Tel +65 6225 9431 Email singapore@the-eic.com Loong Say Meng, Director, Asia Pacific Contact: loong.saymeng@the-eic.com

Thailand Strategic oil plan to take reserves to 90 day supply The Thai government is moving ahead with plans to increase the strategic oil reserve to 90 days of daily consumption, with a working panel already set up to work on regulations and to designate an organisation to manage the reserve. The Department of Energy Business has been in discussions with oil traders and refineries to prepare facilities and study relevant costs. Thailand has reserves equivalent to 44 days of consumption held by private companies. About 80% of Thailand’s crude oil comes from the Middle East. Under the proposal, in the first stage oil refineries will be asked to increase legal oil stock to 6%, the equivalent of 22 days of consumption, up from 5% or 18 days.

Regional Comment Australia ConocoPhillips announces sanction of second train ConocoPhillips has announced the sanction of the development of a second 4.5 million tonnes per annum (MTPA) production train for its Australia Pacific LNG coal seam gas (CSG) to liquefied natural gas (LNG) project in Queensland, Australia. LNG exports from the second train are scheduled to commence in early 2016 under binding sales agreements with Sinopec Corp and Kansai Electric Power Company.

Vietnam Vietnam needs $10bn to upgrade grid Vietnam has sought capital to upgrade its power transmission grid because the system risks being overloaded as demand for power consumption continues to increase. An estimated $760 million is needed each year to invest in power transmission projects. According to the National Power Transmission Corporation, the sector needs around US$10 billion to develop the power transmission grid by 2020. Meanwhile, the demand for power consumption is expected to increase at a rate of more than 14% per year during the period 2011 – 15.

Japan Japan approves feed-in tariff for renewable energy Japan has approved new feed-in tariff (FIT) rates that will boost its use of renewable energy such as solar and wind.

The incentive will see Japanese utilities buy electricity from developers of renewable energy at fixed rates lasting up to 20 years. Costs will be passed on to consumers who pay higher electricity bills. Japan estimates its renewable energy capacity will increase to 22,000MW by the end of March 2013 from 19,500MW today. About 2000MW of this capacity will come from solar energy. The FIT legislation also seeks to cut Japan’s greenhouse gas emissions to 25% of its 1990 level by 2020.

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 2012

EIC China News

China News

CNOOC and Husky to speed up Liwan development CNOOC Ltd and its partner Husky Energy have said that they will speed up development of the Liwan offshore gas project near Hong Kong to begin production in the second half of 2013. The decision to accelerate development of the Liwan 3-1 field was announced after CNOOC Chairman Wang Yilin met billionaire Li Ka-Shing on the fringes of CNOOC’s annual meeting in Hong Kong on 25 May (Li is the majority owner of Canada-based Husky Energy, with a stake of almost 70%). CNOOC Ltd, the listed arm of CNOOC, holds a 51% share in Liwan 3-1 and Husky owns the rest. The Liwan 3-1 project alone could produce 4.2mcm per day according to energy sources.

Office News The Business Presentation Opportunities with WorleyParsons on 29 June went very well at the EIC Beijing office. Richard Ma, Director of Corporate Business Development Worley Parsons China delivered an excellent presentation to 15 attendees from EIC members and CNOOC, PetroChina, Total, UK Trade & Investment and KPMG. An overview was given of WorleyParsons’ oil and gas projects and opportunities that may arise in the future. The networking event was followed by a buffet dinner which gave members an opportunity to network with international energy operators/contractors and NOCs.

Alstom secures GT13E2 long term service contract Alstom Thermal Power has been awarded a contract by Harbin Turbine Company Limited to supply a GT13E2 gas turbine and associated generator for a combined cycle plant owned by Shenzhen Nantian Electric Power Co Ltd (formerly known as Meishi Power), located in Shenzhen, China. The plant is scheduled to enter commercial operation by 2013. This new contract is in addition to an existing GT13E2 gas turbine generator, which has been operating successfully since 1995 at the same site. Alstom also signed an exclusive Long-Term Service Agreement (LTSA) with Shenzhen Nantian Electric Power Co Ltd which covers three maintenance cycles for each GT and includes the supply of six major inspection parts for both the new and existing gas turbines. Alstom will optimise the existing gas turbine with state-of-the-art technology of the GT13E2 which will help customers reduce the cost of ownership and improve product reliability and efficiency.

We are delighted to welcome our new global member Cullum Detuners’ China General Manager Mr Johnson.

EIC global members enjoy free use of our excellent office facilities and access to our unrivalled local knowledge and contacts. For more information, please contact: Salina Zhang, Regional Manager, China Contact: salina.zhang@the-eic.com

Shell set for FEED tender for shale gas in Sichuan Shell is preparing to launch a front-end engineering and design tender for the pilot development of China’s first shale gas field, in the south western province of Sichuan, China. The pilot project is intended to pave the way for the Fushun-Yongchuan field’s full commercial development to start in two years. However, it is required by Chinese regulation that foreign FEED contractors wanting to participate in the tender should partner with a Chinese engineering house. Sources say the tender is expected to draw interest from WorleyParsons of Australia, Fluor from the US and AMEC in the UK, as well as from a number of smaller players such as Profundo Technologies. A source added that WorleyParsons is likely to form a consortium with China Petroleum Engineering Southwest Company (CPE Southwest), which is CNPC’s in-house gas FEED contractor, in order to participate in the race. The field’s engineering, procurement and construction tender for the pilot scheme will be launched next year.

Regional Comment PetroChina hikes CBM production target by 50% PetroChina has hiked its coal-bed methane (CBM) production target by 50% and now aims to be producing 6 billion cubic metres per year by the end of 2015 as shale gas ambitions are scaled back in the shorter term. This year, the company will probably produce 3bcm of CBM. According to the National Development and Reform Commission’s (NDRC) five-year plan, China should be producing 30bcm per year of CBM by the end of 2015.

Fluor finishes China polysilicon plant for LDK Solar Fluor Corp has completed construction for LDK Solar’s polysilicon plant in Xinyu City, China, one of the largest production facilities in the world. Fluor said it continues to provide debottlenecking services at the plant and is implementing new technologies to increase production.

Fluor provided engineering, procurement and construction management services for the plant, which produces solar-grade silicon for the photovoltaic industry.

Air Products to supply gases for China LCD facility Air Products has signed a long-term contract with Xiamen Tianma Microelectronics to supply bulk gases, including ultra-high-purity nitrogen and oxygen, hydrogen, argon, and helium, at a new facility in Xiang’an Industrial Park in Fujian Province.

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 2012

EIC North and Central America News

North and Central America News Office News Summer travel has already brought many visitors to the Houston office. Our recent Open House created a lot of interest for members intending to open an office in Houston and we will be welcoming new members soon to our suite. We welcomed back Lisa Defalco to our staff in July as the full time Business Information Manager. Lisa worked in the EIC office previously and left us to return to teaching. During that time she continued working part time for us. We are happy to have her back in the office.

Welcome back Lisa!

Training seems to be the focus of many of the requests we get so the Houston office is working on expanding its training activities. This month we are pleased to offer several lunch and learn opportunities as well as the next training presented by EKT Interactive: An Introduction to Midstream Processing, Gas Pipelines and LNG Outlook. Our events calendar is growing as we work towards providing new and relevant information for our members. We also have some fun networking opportunities coming up as well.

For more information about the EIC Houston office, or should you require any help in the North and Central America market, please visit our website or contact: The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Email houston@the-eic.com

Details released for oil and gas leasing programme The Bureau of Ocean Energy Management has released details about the proposed final offshore oil and gas leasing programme for 2012-2017, which would open most of known offshore oil and gas resources for development over the next five years. The potential lease sales include 12 in the Gulf of Mexico and three offshore Alaska. The Interior Department recently held the first GoM lease sale since the Deepwater Horizon disaster more than two years ago. The lease sale generated over $1.7 billion in high bids, with Statoil, BP and Shell placing the highest bids of the 56 participating companies. In Alaska, the leasing strategy is more cautious due to the Arctic’s particular environmental and cultural needs: the Cook Inlet Planning Area and the Chukchi Sea are scheduled for 2016, and the Beaufort Sea in 2017. The Atlantic and Pacific coasts are not included in the lease programme, but BOEM is updating resource evaluation in the Atlantic to support future leasing decisions. The American Petroleum Institute expressed disappointment in many aspects of the Interior’s five-year plan, and is pushing Congress and the Obama administration to open areas in the Eastern Gulf of Mexico, the Pacific, and in the Atlantic offshore Virginia and North Carolina.

Regional Comment

Shell to drill exploratory wells in Alaska In the Alaskan Arctic, it looks promising that Shell will be granted permits to begin drilling exploratory wells as early as this month. It has been two decades since drilling took place in the area. Shell is going to invest billions of dollars in the area’s exploration, believing there could be 25 million barrels in the region. Even though they haven’t drilled exploratory wells yet, the company is already thinking ahead, of how to get the oil to market. That would require permanent drilling platforms, an extensive pipeline system, and what could be the nation’s largest-ever environmental impact statement. It is a very long-term and expensive gamble.

Shell currently has two drilling rigs ready to enter the Arctic Ocean, to drill three wells in the Chukchi and two in the Beaufort this summer.

North and Central America merger news Merger news in North and Central America includes Progress Energy with Duke Energy (making it the largest electric utility in the country), NGL Energy Partners with High Sierra Energy, and Petronas with Canada’s Progress Energy Resources.

GoM to escape hurricane damage this year The 2012 hurricane season kicked off in the Atlantic with four early storms, the biggest Gulf of Mexico threat being Tropical Storm Debby in June. Many offshore operations in the Gulf temporarily closed down in preparation, shutting nearly a quarter of US Gulf oil and natural gas output. In the end Florida bore the brunt of the storm and it weakened, without damage to any offshore facilities. Although forecasts are never precise, the probability of hurricane landfall in the US is anticipated to be below average this season.

Mexico to overhaul state-run oil industry Mexico recently elected a new President, Enrique Pena Nieto. On the top of his agenda is to overhaul the staterun oil industry, in the style of Brazil’s Petrobras. This will prove to be a challenge, as a two-thirds majority is needed in Congress for there to be a constitutional change to open up the industry to private investment, and his own party did not win enough seats. Pena Nieto will take office on 1 December.

Anadarko and ExxonMobil collaborate on Phobos In the Gulf of Mexico, Anadarko is in negotiations to bring ExxonMobil on board the deepwater Phobos project. Exxon may cover the costs for the project’s first exploration well, taking 20% of Anadarko’s half of the project, but Anadarko will remain the operator. Plains Exploration & Production owns the remaining 50% interest in Phobos. Plains anticipates a resource possible of 306 million barrels of oil equivalent from Phobos.

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 2012

EIC South America News

South America News Office News

Regional Comment Petrobras launches 2012 – 2016 business plan The company has recently released its much-awaited $236.5 billion investment plan for 2012-16, updating the previous $224.7 billion forecast for 2011-15. The new plan allocates $141.8 billion to E&P activities; $65.5 billion to refining, transport and marketing; $13.8 billion to gas and energy and $5 billion to petrochemicals, among other areas. The operator, which was selected by PFC Energy as the world’s fifth largest oil company in 2011, expects to produce 3.3 million barrels of oil equivalent per day in 2016 and 5.7 million boe per day in 2020 (its current production stands at 2.5 million boepd). A total of $67.7 billion will be invested in E&P activities in presalt fields, with $8 billion going to exploration and $59.7 billion to production development. The latter includes the construction of a number of production units in Brazil, such as the 8 replica FPSOs that will deployed in the BM-S-9 and -11 blocks.

Delegates from the EIC Overseas Delegation to Brazil met with contractors and operators during the week. A highlight was the reception, sponsored by Grupo Planus and Aggreko (whom we would like to thank) that gathered 80 people from the industry in Rio. The ‘Meet the Buyers’ initiative saw delegates have 15 minutes of exclusive talks with senior people from 5 major contractors or shipyards in the region (Odebrecht, Engevix, Andrade Gutierrez, Promon and Technip). “Certainly the meetings were very fruitful. I believe that business opportunities will emerge in the coming months,” said Mr Marcelo Carreira from Technip. If you need support in understanding what it takes to do business in this region, please contact the Rio team.

YPF keen on attracting investors to develop shale gas After being nationalised earlier this year by the Kirchner administration, YPF is keen on attracting foreign investors to help the company develop unconventional shale plays and ramp up gas production in a country that has resorted to a number of LNG imports to shore up supplies.

Chevron, ConocoPhillips and Exxon have shown interest in the country and, more recently, Gazprom has been cited as a possible partner. Argentina is estimated to hold 774 trillion cubic feet in recoverable shale gas resources, the third largest in the world after China and the US. The Vaca Muerta shale play in the Neuquén basin has strategic importance as it concentrates a substantial portion of unconventional resources in the country. The area has become a top priority for YPF officials and is expected to require an investment of $35 billion over the next five years.

Forthcoming Events Final arrangements are in place for the most important oil and gas event in South America, Rio Oil & Gas, taking place from 17 – 20 September. The EIC is again organising the UK Pavilion and many initiatives will be taking place alongside the exhibition to create business opportunities for our members. If you are doing business in South America this is the time and place to be in Rio and we would love to meet with any members coming to share our experience and understanding of how we can work together. Don’t miss the Whiskey tasting in the UK Pavilion on 18 September and Rio Samba & Gas on 19 September. Of our regional events, we would like to thank both Mr Alexandre Maia from Petrobras and Mr Yoshikai Toshiwo from UTC for their enlightening presentation to 47 attendees in Rio in June.

‘Energy in Rio’ in London on 8 August is organised by Rio Negócios, the city’s investment promotion agency.

Targeted at companies wishing to settle in Brazil, the event will have presentations by Petrobras, Odebrecht (a major contractor operating in integrated services, offshore drilling and production platforms operation), GE and Siemens. The event is free of charge but places are limited. Email Pamela Martin: pmartin@rio-negocios.com Visit: http://rioconferences-energy.eventbrite.com/ Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com

Power sector in Ecuador to require $8 billion According to a recent investment forecast prepared by the Ecuadorian power sector regulator Conelec, the country will require investments of up to $8.36 billion between 2012 and 2021. Most of it will be invested in new generation capacity ($4.67 billion), followed by distribution ($2.85 billion) and transmission ($840 million). Financing is expected to come from public funds and other sources such as foreign governments and banks. Hydro power plants will make up the bulk of new generation projects (the most important active project being the 1.5GW Coca Codo Sinclair HPP), followed by thermal power plants, wind farms and one geothermal plant. Ecuador currently has 5.1GW in installed capacity and its power generation matrix is dominated by thermal (mainly diesel-fired) and hydro power plants (the 1.1GW Paute HPP is responsible for 60% of hydro capacity).

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 2012

EIC Training Services

Training Services Technical Workshop

Carpenter & Paterson Ltd

An Introduction to Pipe Supports 7 August 2012 Carpenter & Paterson, Welshpool Carpenter & Paterson Ltd is a specialist in the design and manufacture of pipe suspension equipment and fabricated steelwork. Their comprehensive service includes the supply of a wide range of standard pipe support components. Facilities exist for the design and supply of special pipe support fabrications and equipment in a wide range of materials and surface finishes to suit the customer’s specific requirements. ‘An Introduction to Pipe Supports’ is designed for individuals who require an understanding of both why and how pipe supports are used. They will learn about the varied range of supports available and their different uses and applications including how to select the correct support for their needs. A demonstration will be given of the Witch Hanger design software and also the interface with PDMS Multi Disciplined Support package.

Management Course

Industry Overview

Tendering for Success – How to Write Winning Bids 14 August 2012 Rothera Group Limited, EIC London This one day course is particularly suitable for Sales Directors, Bid Managers, Estimating Managers, Marketing Managers, Financial Controllers, Managing Directors and anyone involved in writing tenders or managing bid teams. ‘Tendering for Success’ will provide attendees with an understanding of the bid management process and a structure which can be used to produce high-impact, customer facing tenders. Attendees will also learn how to approach a biddable opportunity, using an efficient structure for tender writing, planning and management of the tender submission and incorporating different customer requirements. The course will also cover the use of planning tools, compliance matrices and win themes, the use of evaluation criteria to gain competitive advantage and how to get meaningful feedback. This course is also taking place on 17 August in Aberdeen.

The Fundamentals of Oil & Gas 15 August 2012 EIC London ‘The Fundamentals of Oil & Gas’ one day 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. The course takes the form of a number of modules to introduce the participants to the fundamentals within the oil and gas industry. The modules are Geology, Hydrocarbons, Reservoirs; Exploration & Production; Oil & Gas Processing; Transportation & Refining; Health, Safety & Environment and The Future for Oil & Gas. 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 touch on where the oil and gas industry is going in terms of future developments and other elements in the energy mix.

In-house Training – a personal approach When an organisation has a number of employees who need to learn new skills, in-house training is often the most economical solution. In-house training involves bringing an instructor to a location of choice to deliver a customised training programme. The group may consist of employees who work together in teams, or who work in various company locations across the country, or across the globe. In-house training is flexible – training may take place as a single session or multiple sessions delivered over the course of several months to a year. Training programmes are typically delivered in one and two-day formats, depending on the number of employees, their work schedule, and the training topic. One of the main benefits of in-house training for employers is the ability to control when the training takes place, scheduling it so that it minimises the impact on their business. The opportunity to train staff in groups can provide another advantage by reducing costs. Instructors who deliver in-house training are able to modify standard training material to include additional topics and meet particular business needs. If you are interested in arranging an in-house training course or would like to know more please contact: ally.leboutillier@the-eic.com

www.the-eic.com

26

August 2012

www.the-eic.com

27

August 2012

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) No 8 Eu Tong Sen Street, #15-96 The Central, Singapore 059818 Tel +65 6225 9431 Fax +65 6225 9495 Email singapore@the-eic.com The EIC (China) Room 2503, Tower B, R&F Twins Tower, No 55, Dong San Huan Zhonglu, Chaoyang District, Beijing, China 100022 Tel +86 10 5876 5705 Email beijing@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

www.the-eic.com

energizing your business