EIC Monthly News May 2016

EIC Monthly News

May 2016

Sector Analysis

With the lifting of most economic sanctions in early 2016, Iran has now returned to the global energy market

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EIC Monitor

In Q4 2015 FEED activity in the midstream sector increased by 33% compared to the previous quarter

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Training Services

Make sure your company is ready for the new Pressure Equipment Directive which will take effect from 18 July

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Member News • Events • Middle East News • Asia Pacific News • North America News • South America News

Iran returns to the global market © ThinkstockPhotos

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EIC Sector Analysis

Sector Analysis

Iran’s return to the global energy market The signing of the nuclear deal in July 2015 set the ball rolling to bring Iran back into the global energy market.

After several years of severe economic sanctions, things have now started to move in the right direction for the Islamic Republic of Iran.

Several European and Asian contractors have already been linked to oil and gas projects by expressing interest or signing preliminary contracts, however, the key to entering the market is finding a local partner. Foreign companies have to team up with domestic entities in order to land deals under the IPC.

Amid challenging global energy market conditions, international companies are eager to re-enter the country. Thorough preparation, a solid strategy, the right local partner as well as openness to transfer of technology and knowledge will be the essential components needed to be successful in Iran.

In July 2015, a nuclear agreement was signed between Iran and the P5+1 countries (USA, UK, France, China, Russia + Germany) in which the Persian country consented to scale back its nuclear programme in exchange for sanctions mitigation.

Following the green light being given by the International Atomic Energy Agency, sanctions were partially suspended in early 2016.

Since then, all eyes are on Iran, one of the most industrialised countries in the Middle East.

Apart from the IPC framework, Iran is expected to focus on oil and gas production from reservoirs shared with neighbouring countries Iraq, Saudi Arabia, Qatar and the UAE. While Iran was suffering from international sanctions, these countries have been able to produce hydrocarbons from shared fields such as the South Pars gas field (the Qatar portion is called the North Dome field) or the Foroozan oil field (the Marjan field in Saudi Arabia) unrestrictedly. As many fields have already been producing for several years, improved oil recovery and enhanced oil recovery technologies will play a crucial role.

At the time of going to print, many elements remain unclear. The banking system in Iran is in need of modernisation and as this is the basis for any transaction, this has to be rectified before any significant development can advance. With regard to currency, companies will have to show some flexibility, as US dollar transactions are expected to remain difficult.

With proven reserves of 158 billion barrels of crude oil and 1,201 trillion cubic feet of natural gas, Iran holds the world’s fourth-largest and second-largest reserves of crude oil and natural gas respectively, according to the Oil & Gas Journal. Considering these massive hydrocarbon reserves, as well as the fact that production costs are low and the formerly used Buy-Back Contracts are being replaced by more appealing Iran Petroleum Contracts (IPCs), it is no wonder that international oil companies are queuing up to get back into the country.

Under the new IPC model, more than 50 oil and gas projects and 18 exploration blocks will be offered to international investors. Projects vary from undeveloped offshore fields such as Golshan and Ferdowsi, to the third phase development of the producing Darkhovin onshore oil field that aims to raise production by 60,000 barrels per day. www.the-eic.com

Not only will the upstream sector offer vast opportunities for foreign companies, further phases of the Iran Gas Trunkline project, the Iran to Oman Gas Pipeline, or proposed oil export terminals will also attract foreign investors and companies specialising in these areas.

Iran’s refining sector will see several new facilities added over the next few years. Projects like the Jask Oil Refinery, the Siraf Refining Complex and the Persian Gulf Star Condensate Refinery will raise the country’s total refining capacity to 3 million barrels per day by 2021.

In addition to various greenfield projects, technology upgrades and optimisation of existing facilities will be of high priority in order to meet the quality requirements and demand of foreign as well as domestic markets.

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As to sanctions, several factors need to be considered. Although secondary sanctions have been suspended, US primary sanctions affecting all US personnel remain in place, which requires international businesses to proceed with caution.

And even if a company is not directly affected by sanctions, one should be aware of how dealing with Iran could potentially affect established business relationships with the US or other countries in the Middle East. Finally, although unlikely to happen, there is the potential risk of a ‘snapback’ of sanctions in the case of Iran infringing on any conditions of the nuclear agreement.

For the time being, suppliers should be patient and prepare themselves properly for a re-entrance into the Iranian oil and gas market. Promising opportunities will definitely arise, however, it may take some time before these opportunities can be converted to meaningful business and therefore a cautious approach needs to be followed for the time being.

Thomas Hoefling Email dubai@the-eic.com May 2016

The EIC Chief Executive

A word from the CEO I have always enjoyed writing the foreword for the EIC Monthly News, and this one is particularly significant as, sadly, it will be my last.

In 2008 the EIC took a massive leap forward when our project tracking went digital and EICDataStream was launched. We now provide extensive information on almost 9,000 active and future global energy projects.

After 20 happy years working for Like the UK energy sector as a the EIC I have decided to resign my whole, we have worked relentlessly position as CEO and move on to to ensure a pastures new. My high quality final day is Friday offering and I’m 27 May and this It has been an happy to say means that my absolute pleasure that I’m leaving last two official to have worked this important events as CEO will work in the very be OTC and EIC with such a broad capable hands of Connect Middle range of member and nonthe EIC’s senior East this month, so member companies over management team I really hope to see and governing many of you there. the years and I would like to thank you all for the board who will ensure the good Looking back, I can outstanding work you do work and growth truly say that it has and send you my very best continues. been a privilege regards and wish you all to have been every success for the future. The EIC will part of the UK continue to listen energy industries’ to member’s global growth and requests and feedback as well my various roles at the EIC have as providing information and allowed me to develop many close services on global opportunities. relationships with a range of member Demonstrating this, we will be companies and global players. hosting the UK pavilion at the very first Egypt Petroleum Show in Cairo The EIC has also grown in line next year. This will be a key event with the industry it serves since for the UK supply chain interested our foundation in 1943, with just 13 in opportunities within a market that member companies. From those is the largest non-OPEC producer small but ambitious beginnings, when of crude oil and the second largest the focus was solely oil and gas, producer of natural gas in Africa. we have developed to now support over 650 member companies who Finally, it has been an absolute are trading globally across the whole pleasure to have worked with such a energy spectrum. broad range of member and nonmember companies over the years When I first joined the EIC we had and I would like to thank you all for our HQ in London and had just the outstanding work you do and opened our first overseas office in send you my very best regards and Houston. This has now grown into an wish you all every success for the international network of EIC offices, future. from Aberdeen to Kuala Lumpur, ensuring that we can provide regional Claire Miller, Chief Executive market expertise along with practical advice and guidance. www.the-eic.com

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Contents Sector Analysis

2

The Chief Executive

3

EIC Monitor

4

New Members

8

Member News

10

Events Diary

14

Overseas Events

16

UK Events

17

National Events

18

Training Services

20

Middle East News

22

Asia Pacific News

24

North America News

26

South America News

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May 2016

EIC Monitor

EIC Monitor

The impact of the oil price drop has resulted in Malaysia being the only country to have more than one contract award in Q4 2015. Notably, the UK has decreased from four awards in Q3 2015 to zero in Q4 2015.

FEED activity In Q4 2015, there was only one FEED contract awarded.

FEED activity was significantly less than previous quarters in 2015, and reflects the low appetite from operators to start new developments. The FEED contract was awarded to Wood Group Kenny from Woodside Petroleum for the Browse development. Wood Group will progress the configuration design of the flexible risers and umbilicals.

However, Woodside and its partners have subsequently decided not to progress on the FLNG project due to the setbacks in the current economic market.

Oil and Gas Monitor quarter 4 2015

The number of major contract awards across the global oil and gas industry has continued to decline during Q4 (October to December 2015), dropping to 92 contract awards, a 30% decrease compared to 132 in Q3 2015, and a 50% decrease from 181 contract awards in Q4 2014.

This is the largest decrease in contracting activity that the oil and gas industry has seen over the past year. On a more positive note, one sector that has shown promising signs is midstream, where there has been a 33% increase in FEED activity when compared to the previous quarter.

Subsea/SURF In Q4 2015, Angola and the UK accounted for three Subsea/SURF contracts each across five upstream developments. Eni awarded two contracts at the Angolan Block 15/6: Eastern Hub area to two contractors. Technip will project manage and manufacture 15km of dynamic and static steel tube umbilicals, while Saipem will engineer and install five flexible risers, 20km of rigid flowlines, umbilical sections, rigid spools, well jumpers and 14 pipeline end terminations. Both contracts are expected to be complete by the end of 2016. The other Angolan contract, awarded to FMC Technologies, is for the Block-21 Cameia discovery for subsea equipment. Sonangol took over this project from Colbalt Energy in March.

Upstream contracting activity in Q4 2015

In Q4 2015, 32 major contracts for engineering, procurement and construction (EPC), front end engineering design (FEED) and subsea, umbilicals, risers and flowlines (SURF), were awarded across 27 upstream developments. This is a decrease of 36% from 50 awards in Q3 2015, and 60% from 81 contract awards in Q4 2014. A total of 16 EPC contracts, 1 FEED contract and 15 Subsea/SURF contracts were awarded in Q4 2015.

In the UK, Subsea 7 was awarded two contracts for decommissioning services at Centrica’s Rose gas field as well as at the Stamford field in the Southern North Sea. Bibby Offshore was awarded a multi-million pound contract from BP to replace subsea infrastructure at the Eastern Trough Area Project (ETAP) Life Extension project. The contract will involve installing new subsea control system infrastructure to safeguard power and communication links to ETAP’s Machar, Madoes and Mirren fields. Bibby Offshore will provide dive support and construction support vessels from its international fleet to deliver services including umbilical installation, trenching, structure installation and commissioning through to final survey of the completed work.

EPC activity Norway and Malaysia have been hotspots of activity in Q4 2015, together accounting for six contracts across four different upstream developments. In Norway, a total of four EPC contracts have been awarded, three of which have been awarded at Statoil’s major Johan Sverdrup development to three separate contractors.

The contracts include a land-based converter station to Aibel, the processing platform jacket to Kvaerner, and the living quarter platform jacket to Dragados Offshore. Aibel was also awarded an EPC contract from Centrica for the Butch field, the first contract as part of a new long term strategic partner alliance between the two companies.

The Gulf of Mexico remained a strong Subsea/SURF market with two contract awards at Shell’s Stones field and Deep Gulf Energy’s Odd Job field. Technip was awarded additional subsea infrastructure, including two subsea production tie-backs to the FPSO at Stones field.

In Africa, two contracts were awarded in Egypt, both to Subsea 7. Pharaonic Petroleum Company awarded a US$50-US$150 million contract for the installation, engineering, procurement and fabrication of rigid spools, and installation of pipeline, umbilical and subsea structures.

Burullus Gas Company awarded a contract for platform extension and tie-in of gas from BP’s nearby Taurus and Libra fields to the West Delta Deep Marine field.

In Malaysia, state-owned oil company Petronas awarded Malaysia Marine and Heavy Engineering an EPC contract for the wellhead platform (WHP) on the Kumang Cluster Development Phase Two project. Likewise, Ophir Production awarded Muhibbah Engineering a contract for a WHP at the Ophir field. www.the-eic.com

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May 2016

EIC Monitor

Midstream contracting activity in Q4 2015

KBR has been awarded a FEED contract on the project.

In Russia, plans to expand the Sakhalin LNG plant have also moved forward. The Russian based consortium for Sakhalin 2 awarded design development for the 5 mtpa third LNG train to Shell’s Global Solutions unit and Russia’s Giprogazcenter design institute.

In Q4 2015, a total of 23 major contracts (EPC, FEED and PreFEED) were awarded across 19 midstream developments, decreasing 38% from 37 awards in Q3 2015, and 53% from 49 contract awards in Q4 2014. A total of 15 EPC contracts, 6 FEED and 2 Pre-FEED contracts were awarded.

In Australia, Woodside Petroleum has awarded three FEED contracts on the Browse FLNG project. Wood Group won two of these FEED contracts, one for flexible risers and umbilicals, and one for flow assurance and process integration studies. SBM Offshore was awarded the third FEED contract, for the FLNG Turret. However, Woodside has recently announced its intension to shelve the Browse FLNG and thus any further developments on the project will be subject to revived interest from the operator.

Pre-FEED activity Stantec secured the two Pre-FEED contracts which were awarded in Q4 2015, both of which were in Canada. The first of these was for work on the Vaughan Natural Gas Pipeline, awarded by TransCanada Corp. The second contract was awarded by Union Gas Ltd for work on the Union Gas Panhandle Reinforcement project.

EPC activity With only 15 contracts awarded, Q4 2015 has seen a nearly 50% decrease in EPC contracting activity from the previous quarter. The decrease is largely concentrated in the US where there has been a decrease from 11 contracts in Q2 2015, to only 3 contracts in Q4 2015.

This sudden drop off in the number of awards is due to a rapid decrease in LNG export developments.

Downstream contracting activity in Q4 2015

In Q4 2015, a total of 38 major contracts (EPC, FEED and PMC) were awarded across 32 downstream developments. This is the same as the 38 awards in Q3 2015, but an increase of 32% from 26 contract awards in Q4 2014. A total of 30 EPC contracts, 5 FEED contracts and 3 PMC contracts were awarded.

The Middle East as a region saw the largest number of EPC contracts awarded, overtaking North America.

Petrofac secured two of the five contracts awarded in the region. For one of these contracts Petrofac was selected

by Oman Gas Company to supply 85km of pipeline to the Salalah Gas Pipeline project in Oman.

Despite the drop, the US contracts that were awarded in Q4 2015 were for high value LNG export facilities. For example, Magnolia LNG, a subsidiary of Liquefied Natural Gas Limited, has appointed a KBR-SK Engineering & Construction joint venture to carry out EPC work on the Magnolia LNG Export Terminal. The contract is worth US$4.35 billion and includes engineering, procurement and construction of four LNG production trains, and two 160,000 m3 full containment LNG storage tanks.

There were also a number of contracts awarded on pipeline projects in Q4 2015. The Trans Adriatic Pipeline awarded two EPC contracts: Renco was selected to supply the pipeline receiving terminal, and an EnercoMax Streicher GmbH joint venture was selected to supply 8km of the onshore pipeline. Elsewhere, RT Global Resources was awarded a contract to supply 1,100km of pipeline for the North South Gas Pipeline in Pakistan.

EPC activity The majority of EPC contract activity was in Malaysia and the US in Q4 2015, with 11 contracts being awarded in these countries collectively. Petronas awarded four EPC contracts in late November and early December for the Pengerang Refinery and Petrochemical Integrated Development in Malaysia. The first package was awarded in November to a joint venture between Technimont SpA and China HuanQiu Contracting & Engineering Corporation for two polypropylene units. Muhibbah Engineering was then awarded an EPC at the beginning of December for temporary facilities, specifically an executive village and management office. This contract is expected to be completed by November 2016.

FEED activity Despite slowing activity from previous quarters, LNG export facilities still dominated the FEED activity for Q4 2015. In spite of the advanced developments of the Magnolia LNG, the consortium G2 LNG is still pushing forward with its proposed LNG terminal in Louisiana. www.the-eic.com

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May 2016

EIC Monitor

Power, Nuclear and Renewables Monitor quarter 4 2015

The second major EPC package was awarded to a consortium of Samsung Engineering Co Ltd, Samsung C&T Corp and Samsung Engineering (Malaysia) Sdn Bhd to supply a linear low density polyethylene entity and an ethylene oxide/ethylene glycol (EO/EG) unit.

Levels of contracting activity across the thermal and nuclear power generation sectors dipped slightly in Q4 (October to December 2015), with overall figures showing the number of major contracts made since the previous quarter down by 10%. On the renewables front, UK wind projects have seen a substantial increase in contracting activity.

The last major EPC package awarded in December went to Mudajaya Group Bhd, and this was for the procurement and construction of warehouses and workshops. Completion of all the major EPC contracts on this project are scheduled to be complete by mid2019, with completion on the project expected before the end of 2019.

Global thermal and nuclear major contract awards in Q4 2015

In Q4 2015, 61 major contracts were awarded across 50 thermal and nuclear (new build and decommissioning) projects, showing a decrease of 10% when compared to the 68 major contracts awarded in the previous quarter (Q3 July to September 2015). A total of 26 engineering, procurement and construction (EPC) contracts, 34 original equipment manufacturer (OEM) supply contracts and 1 project management consultancy contract were awarded.

In the US, Lotte Chemical Corporation awarded three EPC contracts: two contracts for the Lake Charles monoethylene glycol plant and another for the Lake Charles ethane cracker. CB&I was awarded an EPC contract by Lotte Chemical Corporation for both of these projects. The other EPC contract for the monoethylene glycol plant was awarded to Samsung Engineering. Both these projects have an expected completion date of late 2018/early 2019.

Thermal Fifty-four of the contracts awarded in Q4 2015 were in the thermal sector, 40% of which were awarded to projects in North America (22). The Middle East saw eight contracts awarded, Europe six, Asia seven, and five each in the Indian subcontinent and African regions respectively.

Oman also saw some major EPC progress, with Oman Oil Refineries and Petroleum Industries Company awarding the first two EPC packages for the Liwa Plastics project. The first EPC package, awarded to a joint venture between CB&I and CTCI Corporation in November, covers the construction of the steam cracker and associated utilities. The second EPC package, awarded to Tecnimont SpA in December, covers the construction of the polyethylene and polypropylene units with off-site works and utilities.

The project itself is expected to begin operations before the end of 2019.

FEED activity Two major FEED contracts were awarded in Q4 2015.

In China, CB&I was awarded the FEED contract for the propane and butane dehydrogenation unit at the Changxing Island (Dalian) Refinery and Petrochemical Complex. The work will include licence and engineering design of the plant. Once operational in 2018, this unit will be the single largest of its kind in the world.

A total of eight OEM supply contracts were awarded to GE Power in the North America region. The US continues to dominate contracting activity in global thermal developments for another quarter accounting for 15 contract awards across 13 projects. A recent report issued by the US Energy Information Administration attributes the increase in natural gas-fired power plants to these having a competitive edge over coal-fired plants because of the way they are operated. The report also links the increased utilisation of natural gas-fired power plants to the low price of natural gas in recent years, which correlates with the increase in contracting activity in this area.

In the US, Technip was awarded the FEED contract to provide the process design package for the Belmont County Ethane Cracker in Ohio. The plant will use shale from the Marcellus and Bakken regions as feedstock when it becomes operational in 2021.

PMC activity Very little project management contract (PMC) activity occurred in Q4 2015. However, WorleyParsons was awarded a PMC in December for the Sitra refinery upgrade in Bahrain. As part of the deal, WorleyParsons will assist the operator to manage, monitor and appraise the activities of the FEED contractor, EPC contractors and other contractors engaged to execute the work. www.the-eic.com

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Taking a closer look at the awards, October saw project developer Advanced Power awarding two EPC contracts to Bechtel for the Cricket Valley Energy Center and South Field Energy Facility. Bechtel was also awarded an EPC contract by Panda Energy for the Hummel GasFired Power Plant project in the same month. Three OEM supply contracts were awarded for Entergy’s 980MW St Charles Power Plant located in Montz, Louisiana.

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May 2016

EIC Monitor The Middle East continues to be a hotspot of activity with several thermal developments and clean coal projects in place. The Saudi Electric Company continues to invest in projects in Saudi Arabia and awarded two EPC contracts in Q4 2015: one for the Duba 1 Integrated Solar and Gas Power Plant project and one for the Riyadh PP13 power plant. In the United Arab Emirates developer ACWA Power awarded an EPC contract and an OEM supply contract for their Hassyan clean coal power plant.

UK wind turbine contracts

Activity in Europe is predominantly upgrade work to ageing capacity. In the UK, Centrica’s King’s Lynn power plant project and the South Humber Bank Power Station saw contracts awarded in Q4 2015.

This optimism is tempered, however, by a growing concern for the longer-term state of the industry as a number of onshore projects have been and continue to be cancelled after the government announced last year that it would effectively halt support for the onshore wind sector. The Renewables Obligation was closed to UK onshore wind farms on 1 April 2016. However, If projects are in an advanced stage of development they are eligible to proceed under a grace period which will run to 31 March 2017.

The Indian subcontinent continues to see steady investment. While India dominated activity in Q3 2015, in Q4 fewer contracts were awarded in the region overall comparatively, three of which were awarded to thermal projects in Pakistan.

Nuclear Turning the focus to nuclear developments, seven major contracts were awarded in Q4 2015. China National Nuclear Corporation won two EPC contracts for Nucleoelectrica Argentina SA’s Atucha 3 and Atucha 4 nuclear power plant projects. These projects will be built next to the existing Atucha I and II plants in Buenos Aires province. The contract for Atucha 3 follows the signing, back in summer 2014, of a commercial framework contract for its construction. Under the agreement, over 70% of the components to be used in the plant will be supplied by Argentinian companies. Atucha 4 is set to be Argentina’s fifth nuclear reactor, and will use a Chinese Hualong One reactor design. However, it is understood that the Argentinian government has placed both Atucha 3 and 4 on hold due to budgetary constraints.

Turbine manufacturer Siemens secured nine UK wind turbine supply contracts in Q4 2015. Two of the contracts were awarded to offshore wind farms. The first, Galloper, is a Round 2.5 project being developed by Galloper Wind Farm Limited, which is a joint equity partnership comprising of RWE Innogy, Macquarie Capital Group, Green Investment Bank and Siemens Financial Services.

The second is the Beatrice project being developed in the Outer Moray Firth on the north-western point of the Smith Bank, 13.5km from the Caithness coastline. The remaining offshore wind contract was awarded to MHI Vestas for Dong Energy’s Walney Round 2.5 extension.

Siemens also received seven contracts for onshore wind projects located in Scotland. Scotland is taking the lead in the deployment of onshore wind and surpassed England in 2015. This is reflected in the contracting activity, with over half of the wind turbine contract awards in the last quarter of the year going to projects located in Scotland. Furthermore, of the 37 contracts awarded to onshore wind projects in the UK in 2015, 19 were awarded to projects located in Scotland, compared to 14 in England and 4 in Wales.

Contractor Power Machines obtained three OEM Supply awards in Q4 2015. One in Russia for Rosenergoatom’s Kursk Nuclear Power Plant II, one in India for the expansion of Nuclear Power Corporation of India Ltd’s Kudankulam project and one in Iran for the second phase of the Atomic Energy Organisation of Iran’s Bushehr Nuclear Power Plant, to be built by Russian nuclear developer Rosatom.

German turbine supplier Senvion continues to do well in the UK market securing six wind turbine contracts for onshore wind projects: one in Wales, two in Scotland and three in England. The company ended the year by winning a contract for the supply of 28 turbines to RWE’s 57.4MW Brecha Forest West Wind Farm project in Wales.

The modernisation and expansion of the Leningrad Nuclear Power Plant in Russia also saw an OEM supply contract awarded to Titan-2.

UK wind turbine contracts in Q4 2015

Nordex was awarded four contracts in the UK in Q4 including one for its exclusively designed 2.6MW turbine for use at the Frodsham High Wind site. The company has stated that this up-rated turbine will not enter bulk production. The turbine is a variation on the N90 2.5MW model. Vestas was awarded two contracts in Q4, both for projects in Scotland: Bhlaraidh (Balmacaan) and Andershaw onshore wind farms. Vensys obtained the final onshore contract for the extension of onshore wind farm Maesgwyn in Wales.

Twenty-three wind turbine supply contracts were awarded for 3 offshore wind projects and 20 onshore wind projects: a 78% increase when compared to the five wind turbine contracts awarded in the previous quarter (Q3 2015).

This figure has almost doubled from Q4 2014 when 11 contracts were awarded. The upward trend is expected to continue as a number of onshore and offshore projects are due to move forward in 2016.

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May 2016

New Members

New EIC Members New Primary Member

New Primary Member

Low Moor Steel Works New Works Road, Low Moor Bradford BD12 0QN Tel +44 (0)1274 607 070 Email phil.knowles@dentsteel.co.uk Web www.dentsteel.co.uk The Nominated Representative is Mr Phil Knowles, Market Development Manager. Dent Steel Services is a leading UK independent large area plate stockholder and service centre. The company specialises in the supply of plates, profiles and in-house processing to all major sectors including oil and gas, renewables, power generation, naval, marine and construction.

Unit L2, Badentoy Avenue Badentoy Park Portlethen Aberdeen AB12 4YB Tel +44 (0)1224 785 785 Email keith@fletchershipping.com Web www.fletchershipping.com The Nominated Representative is Mr Keith Fletcher, Managing Director. Fletcher Shipping is a British vessel owner operating five vessels with British and European crew in both the oil and gas and renewables sectors.

Dent Steel Services

Fletcher Shipping

Operating in a highly regulated area, the professional and highly trained crew self-manage their vessels, with a strong focus on safety and meeting customer requirements.

Dent Steel Services’ in-house capabilities include shotblasting and painting, plasma/oxy-propane profiling for cut and bevelled plates and for complex shapes, as well as drilling, grinding, saw-cutting and etching services.

Dedicated teams build strong partnerships in exacting industries through the delivery of consistently high quality and flexible service, from extensive stock and/or via tailor-made multi-product solutions from Dent Steel Services’ wide supplier base.

Fletcher Shipping’s vessels are used to working in the harsh North Sea environment and have large decks, with maximum draft of 4.6m enabling them to operate in shallow waters. The company is able to offer the following services: debris seabed survey including UXO, subsea intervention and removal of seabed debris/boulders/ UXO’s, ship-to-ship bunkering and logistic support to other in-field vessels.

New Global Member

Express Engineering (Oil and Gas) Ltd

Kingsway, Team Valley Gateshead Tyne and Wear NE11 0EG Tel +44 (0)191 487 2021 Email william.barclay@express-engineering.co.uk Web www.express-engineering.co.uk The Nominated Representative is Mr William Barclay, Sales Director. Express Engineering is a leading contract manufacturing business specialising in precision machining, weld cladding and complete assembled and tested high integrity, service critical products for the oil and gas, power generation, nuclear, aerospace and defence market sectors.

New Primary Member

Industrial Water UK

530-534 Durham Road Low Fell Gateshead NE9 6HU Tel +44 (0)191 491 4274 Email jonathan.mann@purite.com Web www.degremont-industry.co.uk The Nominated Representative is Mr Jonathan Mann, Sales Manager. SUEZ Treatment Solutions UK is a world leader in designing and implementing sustainable resource strategies. It provides water and wastewater solutions, water purification and conditioning to the management of overall water/effluent systems including mobile water treatment.

With its headquarters in Gateshead, UK it has three business units in the UK and one in Brazil. Key competencies include: over 100 CNC machines, up to 2m diameter x 6m long; large multi-tasking machining; CMM inspection; hot wire TIG weld cladding rigs; semi-automatic butt welding; inhouse NDE (dye penetrant, magnetic particle, ultrasonic); mechanical assembly; hydraulic pressure and gas testing; cellular and lean manufacturing techniques.

The company offers a unique combination of technologies, services and chemistry to optimise your water cycle that can reduce costs and water consumption while ensuring optimum, safe and reliable operations that minimise your environmental impact.

All of this is supported by experienced engineers, controlled processes and full project management and supply chain integration. The business is accredited to ISO9001, aerospace AS9100 and welding BS3834 along with Express Engineering’s caring approach to health and safety and the environment which has gained ISO18001 and ISO14001 approvals respectively. www.the-eic.com

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Offerings range from upfront technical consultancy, turnkey engineering and project management to UKAS accredited laboratory services and operations and maintenance support; to innovative chemistry and leading process water treatment equipment.

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May 2016

New Members

Upgrade to Global Member

New Global Member

Units 1&2, 362a Spring Road Sholing Southampton Hampshire SO19 2PB Tel +44 (0)2380 686 620 Fax +44 (0)2380 685 673 Email andrew.chandler@rm-electrical.com Web www.rm-electrical.com The Nominated Representative is Mr Andrew Chandler, Group Sales Director. R&M Electrical Group Ltd is a specialist electrical distributor servicing the oil, gas, pharmaceutical, petrochemical, marine, industrial and commercial sectors.

Rotech House Whitemyres Avenue Aberdeen AB16 6HQ Tel +44 (0)1224 698 698 Email stephen.cochrane@rotech.co.uk Web www.rotech.co.uk The Nominated Representative is Mr Stephen Cochrane, Director – Subsea. Rotech Subsea is a global leader in controlled flow excavation (CFE) technology, delivering commissioning, IRM and decommissioning solutions worldwide to the oil and gas and energy sectors, using the latest range of patented RS CFE equipment.

R&M Electrical Group Ltd

Rotech Subsea Ltd

R&M holds over £5 million of stock at five stocking facilities throughout the UK and two overseas in Azerbaijan and Kazakhstan. R&M also forms part of a global alliance with other independently owned electrical distributors allowing the company to offer local project and material support along with IEC and UL approved equipment to projects worldwide.

Utilising Rotech Subsea’s in-house design and manufacturing capability and applying knowledge and experience from a track record of over 350 successful projects, the new RS tools have been designed to provide enhanced jet profile, improved performance, higher velocities, greater control and precision, improved stability and higher cutting capabilities for cable, pipeline and seabed rectification work scopes in response to an increasing demand within the industry for a more controlled method of non-contact excavation.

The company stocks many of Europe’s leading manufacturers and has stand-alone cable, project, export and fixings divisions. It also has an in-house assembly division licensed to populate and drill flameproof junction boxes and control stations from stock. R&M holds ISO9001, FPAL and UVDB approvals.

New Global Member

Uniper Technologies

Ratcliffe on Soar Nottingham NG11 0EE Tel +44 (0)2476 192 000 Email john.p.curtis@uniper.energy Web www.uniper.energy The Nominated Representative is Mr John Curtis, Global Account Manager. Uniper Technologies has the capability and experience to deliver superior value to asset owners and project developers.

New Primary Member

Righton Ltd

Righton House Elliott Way, Nexus Point Holford Birmingham B6 7AP Tel +44 (0)121 356 1141 Email david.wycherley@righton.co.uk Web www.righton.co.uk The Nominated Representative is Mr David Wycherley, Regional Director. Righton Ltd is a leading UK supplier of high integrity metals and plastics for use in harsh environments and safety critical applications.

The company creates and develops sustainable supply chain partnerships based on quality, integrity and reliability, offering customers security and confidence in the supply of products.

Customer references for Uniper and other major international energy companies have given the company comprehensive knowledge and capabilities to add value to customer’s business worldwide. Uniper Technologies does not represent equipment manufacturers. This independence enables the company to choose the services, technologies and components that are right for customers.

Serving the oil and gas, petrochemical, power generation, naval, defence and aerospace industries, a national network of service centres supplies an extensive range of products in bar, sheet, plate, forgings, pipe and fittings including: aluminium, stainless steels, nickel alloys, duplex and super duplex, high integrity copper alloys, brass and bronze, and engineering plastics.

Uniper Technologies optimises energy facilities all over the world during pre-investment, implementation, asset optimisation, operation, maintenance and finally decommissioning. Uniper Technologies has a team of experts in CCGT, coal, biomass, wind, solar and hydro technologies who can support customers in any stage of an assets life.

www.the-eic.com

@TheEICEnergy

9

May 2016

Atmos wins software contract Atmos International Ltd, provider of pipeline technology to the oil, gas, water and associated industries, has announced that Transportadora Brasilera Gasoducto Bolivia-Brasil SA (TBG) has awarded Atmos the contract to replace the online pipeline simulation software on the Bolivia-Brazil gas pipeline.

TBG is a pioneer in large volume natural gas transmission in Brazil. The 2,593km long BoliviaBrazil gas pipeline runs from Corumbá, in Mato Grosso do Sul, to Canoas, in Rio Grande do Sul. The pipeline ensures the gas supply to distribution companies, thermoelectric power plants, and refineries crossing 136 municipalities in five Brazilian states.

Housed in a 316 stainless steel enclosure, this new instrument may be safely installed in an Ex e, Ex p, Ex n or Ex t panel enclosure without invalidating the enclosure’s certification allowing easy integration with plant control equipment.

The combination of the Atmos SIM simulation tools and the highly trained experts at TBG will assure the safe and optimised operation of this vital pipeline into the future.

For more information please visit: www.atmosi.com

CETCO was acknowledged for the development of a system that helps cut the cost and environmental risk in decommissioning projects.

BEKA

Atmos SIM software is a modern and versatile simulation software.

It will provide the TBG pipeline operators with accurate and upto-date information on the pipeline operating conditions, assisting in the safe and cost effective operation of this important pipeline.

Atmos will supply TBG with Atmos SIM Offline and Atmos SIM Online, which uses real time pipeline modelling to help the operators understand exactly what is happening at any point along the pipeline. The software supports operation planning with look-ahead analysis and forecasting tools. The new software assures accurate gas composition tracking and pig tracking to accurately track cleaning tools along the line. The software also provides the survival time calculations to help TGB assure that demand will be fulfilled.

Another year, another accolade CETCO Energy Services won the Environmental Innovation Award in the Society of Petroleum Engineer’s recent Offshore Achievement Awards. In 2015, the produced water treatment specialists won the Environmentalist Award at the same ceremony.

New BEKA Set Point Station A new BEKA ATEX & IECEx certified intrinsically safe rugged panel mounting Set Point Station (set point generator), enables the current flowing in a 4/20mA loop to be manually adjusted from within a hazardous area.

The instrument is loop powered and displays the process variable represented by the 4/20mA signal in engineering units on an 11mm high display. Frequently used values may be entered as pre-sets. A display backlight, which may be loop or separately powered is available as a factory fitted option.

For general purpose applications, the complementary BA647ESS is a noncertified version, the stainless steel enclosure and impact-resistant armoured glass window make it ideal for installation in severe environments.

For further information including datasheets and certificates please phone the BEKA sales office on: +44 (0)1462 438 301 or visit: www.beka.co.uk

The system utilises a number of CETCO’s patented technologies including Hi-Flow® and CrudeSorb®.

Handling large volumes of fluid offshore can be an expensive and environmentally hazardous task.

CETCO treats pipeline returns offshore at flow rates of 20,000 bpd and above. The produced water component of these returns is treated to rigorous environmental regulations which allows it to be discharged safely into the marine environment. The development has helped oil and gas operators reduce their decommissioning liabilities and costs considerably.

Produced water – the fluid that is brought up during oil and gas production – contributes an increasingly significant percentage of waste, associated with the oil industry. Discharge of the produced water back into the sea can potentially lead to aquatic pollution.

During the decommissioning stage of a field, significant amounts of produced water remains within plant and other subsea infrastructure which needs to be removed before decommissioning is complete.

Paul McAlister, European Managing Director, CETCO, said: “CETCO provides and operates under service, rental and capital contracts offering a wide range of equipment developed to ensure our technology is accessible to oil and gas operating companies.”

For more information visit: www.cetcoenergyservices.com www.the-eic.com

MEMBER NEWS DTL India opens new plant Damper Technology Ltd’s (DTL) Indian subsidiary company, DTL India, has opened its purpose built fabrication and assembly plant in Coimbatore, southern India. The build project has been ongoing for 18 months and has been overseen

by UK based Mr Phillip ChesterNash, Operations Development Manager. The manufacturing plant is now at the point of operation, and all further Indian contracts will be produced in the new premises.

E2S Warning Signals at OTC 2016 On Booth 2641 at OTC, E2S Warning Signals is launching three new explosion proof and intrinsically safe warning devices for use in hazardous locations.

A pooja ceremony took place in October 2015 to bless the factory after which the machinery was started up and work began to take place in the new facility. The pooja ceremony was attended

by UK staff. Photographs of the ceremony can be seen on our website.

Designed to create the most effective warning signals available for use in Class I/II Division 1, Zone 1 and Zone 20 environments, the UL/cULs approved alarm horns and combined units are available with traditional directional flare horns or omnidirectional radial horns that generate a uniform 360° sound dispersion.

The new D1x range of alarm horns, PA loudspeakers and integrated alarm horn/Xenon strobe warning units employ the latest electronic technology and acoustic engineering in robust, marine grade, LM6 aluminium enclosures.

Suresh Menon, Managing Director, DTL India, said: “We are registering with large power producers and oil and gas industry EPC contractors, OEMs and consultants; these will expose us to more clients and put us on the map for more domestic market opportunities. The factory also now fulfils one of the primary goals and that is to enable us to make larger dampers, especially for the Indian domestic markets.”

For more information please visit: www.dampertechnology.com

Also on the booth are the new GNEx GRP Xenon strobe beacons, which add visual signalling to the explosion proof and corrosion resistant GNEx family. Suitable for all Zone 1, 2, 21 & 22 hazardous location applications the GNEx beacons have extended temperature range with IECEx and ATEX approvals.

Complementing the family is the GNExJ2 Ex d junction box, which, having multiple cable entries and terminal configurations is suitable for a large variety of applications.

Darren Mann, International Sales Manager and Marcel Minns, Technical Sales Manager from the Houston facility, will be on the booth to demonstrate the new products.

For more information please visit: www.e2s.com

E2S Warning Signals

The factory will support applications for government and industrial registrations which will allow DTL India to participate in bids and advocate them as a preferred or approved manufacturer for domestic and international opportunities.

OTC also sees a preview of the new premium STEx stainless steel enclosure explosion proof warning signal range, which offers outstanding corrosion resistance in harsh environments combined with outstanding performance.

@TheEICEnergy

11

Comprehensive trials show that the new welfare unit is capable of big savings. Over a 24-hour period based on a fuel cost of 58p per litre, a standard 240v generator powered cabin used £31.32 worth of fuel compared to Garic’s Series Eco Plus which only used £3.60 – which equates to around 15p per hour.

Ellis Patents

Ellis cleats installed Emperor and Vulcan+ cable cleats designed and manufactured by Ellis have been put to work in the largest single UK construction project since the London Olympics – the Shetland Gas Plant, pictured above.

Forty-two million man hours went into the development of the plant, which went into operation in February 2016. Developed by Total to extract gas from the Laggan and Tormore reserves that lie 140km from land and 3,000m below the seabed, the plant is capable of delivering 8% of the UK’s gas needs and is expected to handle 500 million standard cubic feet of gas every single day.

The specification, secured by Ellis distributor, ETS Cable Components, saw the Ellis cleats installed in the onshore processing plant, where they are being used to secure substation and switchgear cabling.

Richard Shaw, Managing Director, Ellis, said: “The Laggan and Tormore reserves were discovered over 30 years ago, but it wasn’t until now that there was the technical know-how to extract the gas from sea conditions that are as bad as they come anywhere in the world.

“It really is an astonishing feat of engineering, and to have our cleats specified for use, no matter how small a part they play, shows just how highly regarded they are.”

Manufactured in 316L stainless steel, Ellis’ Emperor and Vulcan+ cleats are designed to provide ultimate corrosion protection, even in the harshest of environments, while also ensuring cables remain secure and operational following a short-circuit incident. They are both quick and easy to install, and feature integral LSF zero halogen polymeric liners and base pads that protect and cushion cables during short circuit conditions.

For additional information on Ellis and its Emperor cable cleats visit: www.ellispatents.co.uk

Garic steals the lead Garic is revolutionising the welfare market with the UK’s first completely solar powered cabin.

The Combi-Cabin Eco Series Plus patented technology slashes emissions and running costs by completely omitting the use of a generator. Power is drawn from eight solar panels housed on the unit’s roof.

The 24’x9’ Combi-Cabin contains a bathroom with a single shower cubicle, toilet, urinal, wash basin and hand dryer in addition to a canteen for eight with sink, microwave, 12vDC fridge, instant hot water, radiator and table and bench seating. It also has a drying room and an office complete with radiator and USB/12v power sockets.

The new unit, pictured right, is also pushing environmental boundaries – reducing CO2 emissions by up to 88% – and is fully compliant with all the very latest CDM 2015 regulations. Perfect for CO2 controlled sites and renewable projects, the Eco Plus joins a fleet of patented welfare firsts, including the Solar Loo, Solar Shower and the hybrid Armadillo Eco Mobile Welfare Unit, all of which are powered by solar and clever engineering.

Garic will be showcasing the CombiCabin Eco Series Plus benefits at All-Energy on 4-5 May 2016. Visit: www.garic.co.uk

Met Office launches SafeVoyage The Met Office has launched SafeVoyage, a new product that provides reliable weather information for offshore vessels travelling in open water, to help minimise exposure to severe weather, improve safety and keep project costs to a minimum.

SafeVoyage offers a detailed weather forecast for the entirety of a ship’s route, anywhere on the globe, aiding planning of moving equipment and personnel. It is presented in an easy-to-interpret graphical format and includes wind and sea conditions along the route and tabulated data every three hours for significant wave height, swell details, wind and weather.

Forecast start times can be generated to inform decisions concerning the best route and departure time. Thresholds can be set and winds specified at 10m, 50m or 100m as optional. www.the-eic.com

MEMBER NEWS

Garic

Sparrows supplies industry first Sparrows Group has partnered with leading engineering and manufacturing firm INNOVO to provide the offshore industry with the first fully electric-drive flexible cable and pipe lay system for rental.

The Met Office’s meteorologists quality control every aspect of the SafeVoyage forecast, as well as including bespoke commentary, giving users complete confidence.

SafeVoyage provides reliable information to support decisions that could impact safety and efficiency.

The product is a compelling offering for the oil and gas, offshore and renewables industries. It’s a flexible solution and can be tailored to fit individual requirements.

Patrick Sachon, Met Office For those interested in finding out more about the Met Office’s SafeVoyage product please visit: www.metoffice.gov.uk

Rotech deploys sub surface project Rotech Subsea has successfully completed a major cable deburial and reburial project for Hughes Sub Surface Engineering. The new cutting-edge RS controlled flow excavation (CFE) technology deployed by Rotech Subsea during the operation is set to revolutionise the sector by being faster, more cost effective and safer than older generations of mass flow excavation (MFE) equipment.

The advantages of Rotech’s RS design and TRS system – which boasts more power and enhanced features compared with older generations of MFE equipment – were evidenced on this project.

TRS1 equipment was safely deployed (at a depth of 1.5m in 5m water depth LAT) to perform the successful de-burial of the cable, recovery and jointing repairs before post trenching the cable ends and joints. These were lowered in excess of 2.8m depth in only two passes, due to the dual capabilities of the TRS1, providing a safer, faster and more cost effective solution than could have been achieved with older-generation equipment.

Director of Rotech Subsea, Stephen Cochrane, said: “The successful completion of this project has ably demonstrated that our new technology offers enhanced jet profile, improved performance, higher velocities, greater control and precision, improved stability and higher cutting capabilities than existing technology.

“The knowledge acquired by our team from over 21 years’ experience in the subsea excavation sector means that we can confidently promote the benefits of our new RS CFE technology and take pride in being a world leader in the design, manufacture and operation of CFE equipment.”

For more information please contact subseainfo@rotech.co.uk or visit: www.rotech.co.uk

The collaboration between the firms will see them deliver full back-deck equipment packages for sale and rental to suit both the oil and gas and offshore wind markets globally.

As part of the agreement INNOVO’s electric drive 700 Te multi-reel drive system will be rented alongside Sparrows Group’s wide range of electric drive tensioners as a fully packaged and managed lay system.

Stewart Mitchell, Chief Executive Officer, Sparrows Group, said: “Combining an electric tensioner with an electric reel drive means we can offer the market a uniquely sophisticated system that delivers greater control and therefore better precision and accuracy than traditional hydraulic drive appliances.

Both pieces of equipment are fitted with the same control systems, allowing easy system synchronisation which also improves the control of lay operations.

“We have seen a rise in demand for packaged rental solutions as companies try to maximise efficiencies and reduce CAPEX costs. The agreement with INNOVO will see us offer engineering services for the mobilisation, installation and commissioning of any lay system as well as new build design and supply.”

For more information visit: www.sparrowsgroup.com @TheEICEnergy

13

Events Diary

UK, Overseas & Training May 2016

10 Sector Showcase Shale Gas 11 Regional Showcase UKCS 19 Technical Workshop Introduction to Centrifugal Pump Design 19 Industry Overview Fundamentals of Upstream 24 Corporate Entertainment Networking Curry Night 26 Business Presentation EIC DataStream Overview 30 Management Course Liquidated Damages

Leeds United Football Club Robert Gordon University, Aberdeen SPP Pumps, Coleford EIC Rio de Janeiro Mint Leaf Restaurant, Dubai EIC Houston Four Points by Sheraton, Dubai

June 2016 2 Corporate Entertainment Northern Region Golf Day 2016 2 Business Presentation Opportunities with MMHE 3 Corporate Entertainment North & Central America Golf Tournament 7 Regional Showcase UKCS 8 Industry Overview Fundamentals of Oil & Gas 14 Industry Overview Fundamentals of FPSOs 15 Management Course Bidding to Win 16 HSE Training Pressure Equipment Directive 16 Sector Showcase Nuclear 17 Corporate Entertainment Scottish Regional Golf Day

Rockliffe Hall Hotel, Darlington EIC Kuala Lumpur Pearland Golf Club, Texas Aker Solutions, Aberdeen EIC London EIC Rio de Janeiro Rothera Group, EIC London Lloyd’s Register, EIC London North West venue tbc Newmachar Golf Club, Aberdeenshire

July 2016 5 Industry Overview 6 Industry Overview 14 Industry Overview 27 Management Course 30 Industry Overview

Fundamentals of Subsea Fundamentals of FPSOs Fundamentals of Nuclear Understanding Terms and Conditions Fundamentals of Subsea

EIC London EIC London National Skills Academy, EIC London Four Points by Sheraton, Dubai EIC Rio de Janeiro

Understanding Project Management Fundamentals of Oil & Gas Fundamentals of Oil & Gas EIC DataStream Overview The ATEX Directives

EIC London EIC London Four Points by Sheraton, Dubai EIC Houston SGS Baseefa, Buxton

August 2016 9 Management Course 16 Industry Overview 16 Industry Overview 18 Business Presentation 25 HSE Training September 2016 10 Industry Overview Fundamentals of FPSOs EIC Rio de Janeiro 30 Corporate Entertainment 7th Annual Sporting Clays Tournament American Shooting Centers, Houston October 2016 4 Technical Workshop Introduction to Control Valves Severn Glocon, Brighouse 13 HSE Training The Pressure Equipment Directive Lloyd’s Register, EIC London 13 Industry Overview Fundamentals of LNG EIC Houston

For further information on UK and overseas events and training, please contact: info@the-eic.com www.the-eic.com

@TheEICEnergy

14

May 2016

Events Diary

Exhibitions & Delegations 2016

Status

23-27 May Overseas Delegation to Thailand and Malaysia Fully Booked 29 May- Overseas Delegation to Iran Fully Booked

1 June 28-30 June World Nuclear Exhibition (WNE), Paris Booking Now 11-15 July Overseas Delegation to Argentina Booking Now 18-22 July Overseas Delegation to Russia Booking Now

29 August- Offshore Northern Seas (ONS), Norway Fully Booked

1 September

5-9 September Overseas Delegation to Japan Register your Interest 27-30 September WindEnergy, Hamburg Booking Now

3-7 October Overseas Delegation to Myanmar Register your Interest

3-7 October Overseas Delegation to Uganda and Tanzania Register your Interest 19-21 October Offshore Korea, Busan Booking Now

31 October- Overseas Delegation to Mozambique and Africa Oil Week Register your Interest

4 November 7-10 November ADIPEC, Abu Dhabi Booking Now

29 November- Offshore South East Asia (OSEA), Singapore Booking Now

2 December

For further information on exhibitions and delegations, please contact: events@the-eic.com @EICOverseas

National Events

2016

17 May EIC Connect Middle East Abu Dhabi

13 October EIC National Dinner London 22-23 November EIC Connect Oil & Gas Manchester

Status Booking Now Booking Now Register your Interest

2017

5-8 September 21-22 November

SPE Offshore Europe 2017 Aberdeen EIC Connect Energy Manchester

Booking Now Register your Interest

For further information on national events, please contact: nationalevents@the-eic.com

EXHIBITION / CONFERENCE / EVENT

19 (Wed) - 21 (Fri) Oct. BEXCO, BUSAN, KOREA

Join the UK National Pavilion at Offshore Korea 2016 contact www.the-eic.com

@TheEICEnergy

15

raelene.rifkind@the-eic.com

May 2016

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions EIC Overseas Exhibitions and Delegations WindEnergy Hamburg 2016 27-30 September 2016 Hamburg #EICWE16 The EIC and RenewableUK are working together with UKTI to organise and manage a UK standshare at WindEnergy, Hamburg 2016.

Offshore South East Asia (OSEA) 2016 29 November-2 December 2016 Singapore #EICOSEA16 The EIC will once again be managing the UK National Pavilion at Offshore South East Asia (OSEA) from 29 November-2 December 2016.

WindEnergy Hamburg will provide a comprehensive overview of the current status and future prospects in the sector – along the entire value chain of the international wind industry, onshore and offshore. Contact Raelene Rifkind for further details: raelene.rifkind@the-eic.com

OSEA 2014, Asia’s largest oil and gas exhibition and its biggest edition ever, ended on a high note with positive feedback from both exhibitors and visitors. The four day event, which spanned across three levels, attracted more than 28,600 oil and gas trade professionals. Contact: mark.gamble@the-eic.com

Offshore Korea 2016 19-21 October 2016 Busan, South Korea #EICOK16 The EIC will be organising and managing the UK National Pavilion at Offshore Korea from 19-21 October 2016.

Egypt Petroleum Show (EGYPS) 2017 14-16 February 2017 Cairo, Egypt #EICEGYPS17 The EIC in partnership with UKTI is proud to be organising and managing the UK National Pavilion at Egypt Petroleum Show (EGYPS) 2017.

Taking place at BEXCO, Busan, Offshore Korea expects to exceed the 2014 numbers which saw 21,396 visitors from 51 countries with 2,000+ major Korean shipyard visitors. Offshore Korea 2016 is specially sponsored by the world’s top three Korean shipyards, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries. Please contact: raelene.rifkind@the-eic.com

Egypt is the largest non OPEC producer of crude oil and the second largest producer of natural gas in Africa and serves as a major global transportation hub for crude from the Arab Gulf to Europe, Asia and the US. Egypt is the largest oil and natural gas consumer in Africa. In recent years there have been more than 86 discoveries with much more anticipated in the future.

Please register your interest: mark.gamble@the-eic.com

www.the-eic.com

@TheEICEnergy

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May 2016

EIC UK Events

UK Events

Corporate Entertainment Northern Region Golf Day 2016 Thursday 2 June 2016 Rockliffe Hall Hotel, Darlington Rockliffe Hall boasts one of Europe’s best golf courses.

Mark James, Carl Mason, Steen Tinning and Barry Lane are just some of the names that have played the championship course, which has become the home of the European Senior Tour. The day will include a breakfast buffet, 18 holes, with teams playing the Stableford competition and added individual player contests around the course. All this will be followed by a delicious twocourse presentation dinner and the winning team being awarded the Flexitallic Challenge Bowl Cup.

Forthcoming Events

Sector Showcase: Shale Gas Tuesday 10 May 2016 Leeds United Football Clb Shale gas has the potential to provide the UK with greater energy security, growth and jobs. Indeed the technique of hydraulic fracturing has been used widely over the last 60 years to extract gas from shale rock, with an estimated drilling of around 2.5 million wells worldwide.

Such techniques have for some years been used in the UK but mainly in offshore locations. However, the government is now backing a big push to extract gas and oil from shale rock onshore to increase UK production of gas and oil.

Take a look at our sponsorship packages There are three levels of sponsorship available for the Northern Region Golf Day (Gold/Silver/Bronze). By taking sponsorship at the event your company will have an opportunity to highlight your products and services that can benefit the contractors and operators in the area.

The speakers at this event will be those who are significant in this market. The panel will provide an overview of the shale industry, highlighting the potential activity in the UK, along with details about the proposed sites for drilling.

There will be significant opportunities for the supply chain not just in the initial fracturing but also in areas such as drilling and the processing of the gas afterwards once it is extracted. To book your place please contact: jennifer.hole@the-eic.com

All sponsorship packages offer high level brand exposure and an array of benefits, some of which can be tailored to suit your goals and aims. If you would like to raise your company profile and sponsor a prize, or to book on this event, please contact: jennifer.hole@the-eic.com Sector Showcase: UKCS Driving Innovation and Operational Efficiency Tuesday 7 June 2016 Aker Solutions, Aberdeen International Business Park This event will see operator and contractor panellists set the scene on how the industry has been adapting to the current market climate across the UKCS, discuss the prosperity of the basin in the long-term and what they see as priority change in the future.

Sector Showcase: UKCS Diversification and Transferable Solutions Wednesday 11 May 2016 Robert Gordon University, Aberdeen The current industry environment requires companies to consider new areas of opportunity through diversification and transferable solutions. As leading industry operators diversify their working practices and strategies, the supply chain also needs to deliver innovative solutions and new technologies in order to capture new market prospects.

What are the tangible opportunities from diversification?

And are the energy industries beginning to reap the rewards from such transferable solutions?

EIC member case studies will be presented on the day, detailing their innovations and the lessons they learned while implementing them, providing long-term learning and experience for others. There will be also be opportunity for you to meet with other EIC member companies who can offer innovative solutions during one-2-one sessions.

To book your place contact: julia.harte@the-eic.com

At this event, Statoil will outline how the core expertise acquired as a leading operator of offshore oil and gas fields has played a very important part in the development of the Hywind renewable concept. The Hywind project combines known technologies in a completely new setting and opens up the possibility for capturing wind energy in deepwater environments. This concept provides vast opportunities throughout the energy sector.

Sector Showcase: Nuclear Thursday 16 June 2016 North West venue tbc This showcase will provide an update on activity across the nuclear industry from decommissioning to the extension of life of existing plant and also new build developments. The event will feature a panel of speakers including representation from contractors involved in the nuclear sector. The material covered will highlight their plans, show estimated time scales and likely spend and provide insight for the supply chain about the potential opportunities and how they should engage. Please register your interest: jennifer.hole@the-eic.com

We invite you to learn from a panel of industry experts including operators who will talk about their existing supply chain and how they have utilised this in various energy sectors, contractors who are diversifying their industry sectors and from businesses which have been successful in creating opportunities and diversifying from one sector to another and back again. To book your place contact: julia.harte@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

@TheEICEnergy

17

May 2016

EIC National Events

EIC Award for Supply Chain Excellence 2016

Amec Foster Wheeler and DAI won in 2014 for their Track and Trace product. Lloyd’s Register won the first award in 2013 for its BOP Risk Model.

The winner of this prestigious accolade, announced at the EIC National Dinner, will have the unique opportunity to showcase themselves, their capabilities and their expertise within the highly competitive energy sector and also benefit from a superb winner’s package, which includes:

Open for entries

• A bespoke marketing package.

• Access to EIC generated press releases and additional PR activities.

• A double page spread in Energy Focus.

• Two free passes to the EIC National Dinner plus much more.

Do you have a new product, service, process or engineering solution that has demonstrated excellence within the energy supply chain?

For more information and to download a submission form please visit: www.the-eic.com/award

The EIC is calling for entries for the 2016 Award for Supply Chain Excellence in order to publicly recognise the achievements and quality of our members.

Short-listed entrants will be required to attend an interview, in person, at the EIC London office in September.

Deadline for entries is 12:00 on 1 June 2016.

The winner will be decided by our judges voting panel, consisting of experts from across the energy sector.

The panel will pay particular attention to how each entry has maximised customer satisfaction, increased operating efficiencies, overcome challenges, minimised lost man hours, increased safety or has entered new markets/sectors.

Previous winners of the award include SPX, right, who won in 2015 for their turbine water lubricated reactor cooling water pump. The pumping solution, approved by the US Nuclear Regulatory Commission, ensures that emergency reactor cooling is sustained during complete station blackouts and can function in extreme conditions.

The evening will begin with a canape and drinks reception in the Darwin Centre offering an opportunity for predinner networking. Following the reception, guests will be welcomed into the Central Hall. A three-course meal will follow accompanied by free-flowing wine, beer and soft drinks. The dinner is open to EIC members and their guests.

Bookings for the EIC National Dinner are well underway with just 10 tables remaining and all sponsorship packages now sold.

The event will take place on Thursday 13 October against the spectacular backdrop of the museum’s Central Hall.

The EIC is pleased to announce that LV Shipping, who offer first class logistic solutions through a global network, will be returning as the Platinum Sponsor of the dinner.

Costs Individual place Table of 10 Table of 12

Supporting sponsors include: Drinks reception Vantrunk Limited Invitations and programme R&M Electrical Wine CMP Products Prize draw Roxtec Ltd

To book your table at the EIC National Dinner or to enquire about the Award please contact: Charmaine Thompson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.thompson@the-eic.com

www.the-eic.com

@TheEICEnergy

18

£225 +VAT £2,200 +VAT £2,600 +VAT

May 2016

17 May • St Regis Saadiyat Island, Abu Dhabi • UAE

Last chance to book your delegate place With delegate places priced from £199 per person can you afford to miss the Middle East’s energy industry event of the year?

The afternoon conference session will look at hydrocarbon projects and explore the current market place for oil and gas, and identify where the opportunities are both geographically and by project. Representatives from ADNOC, Kentz/SNCLavalin, BP and Shell have been invited to present at what is expected to be a lively and thoughtprovoking session.

Taking place on 17 May in the spectacular surroundings of the 5* St Regis Saadiyat Island Resort, EIC Connect Middle East provides a unique platform for companies looking to expand their global business base.

Fluor, Kentz/SNC-Lavalin, McDermott and Petrofac will all be unveiling their forthcoming plans and project opportunities in the contractor briefings.

The event will focus on the potentially lucrative opportunities that require the technology and solutions offered by the UK supply chain.

The show once again has the full support of ADNOC and their OPCOs, with representatives confirmed from ADCO, ADGAS, ADNOC, ADMA-OPCO, Al Hosn Gas, GASCO and ZADCO all of which will be available for one-2-one appointments with delegates throughout the day.

The event will begin with a VIP evening reception on 16 May for sponsors and exhibitors to network with the event speakers and VIPs. The director general of ADNOC, or a nominated deputy, will address the audience alongside our VIP sponsor for the evening (tbc).

At the time of writing only five stands remain within the exhibition. Stands are priced at just £1,800 for 9 sq m and include 2 x delegate places. Please visit the EIC Connect website to view the latest floor plan and stand availability.

Following its established one day format, contractor briefings will run alongside an exhibition and conference designed to inform delegates about future markets, upcoming projects and procurement strategies.

Finally, delegate places are competitively priced at just £199 (AED1,110) for EIC members and £249 (AED1,390) for non-members. The EIC has negotiated a competitive rate at the 5* St Regis Saadiyat Island Hotel and with direct flights offered by Etihad from a number of UK airports, attending the event could be more cost effective than you think.

The 2016 conference will feature an opening plenary session where HMA Philip Parham, British Ambassador to Abu Dhabi, will address the audience and set the scene for the day.

The morning conference session will focus on the emerging opportunities in the region and highlight projects that will dominate the energy landscape in years to come. ENEC will speak about the Barakah project and the opportunities for UK companies to get involved. Speakers from Endress+Hauser and IRENA (International Renewable Energy Agency), including renowned conference speaker Frank Wouters, formerly of MASDAR, will support the session.

www.the-eic.com

@TheEICEnergy

To book your place please visit: www.the-eic.com/eicconnect/middleeast For more information on the exhibition and sponsorship opportunities remaining please contact: Charmaine Thompson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.thompson@the-eic.com

19

May 2016

EIC Training

EIC Training

The course is designed for two groups: for those new to the PED it covers the requirements of the directive and the reasons for them, while for those familiar with the previous version, (97/23/EC) it will explain the changes in the new version and the relevant timescales for the updated legislation entering into force across Europe.

The Pressure Equipment Directive is changing: can you afford to miss out?

This training course will provide you with a clear view of the PED and the changes to it enabling you to make the necessary decisions in order to gain and maintain certification and compliance for your business.

The Pressure Equipment Directive (PED) is an important piece of European legislation which regulates the safety of pressure equipment throughout Europe. The directive applies to equipment and components whose maximum allowable pressure is greater than 0.5 bar and includes pipes, pressure accessories, safety accessories and vessels for both liquid and gas.

The next course will run on 16 June 2016, delivered by Peter Roberts, Technical Specialist, Lloyd’s Register.

Peter is an experienced pressure vessel inspector and auditor, whose experience encompasses CE marked equipment against current pressure vessel, piping and valve design codes. Experienced in material manufacture, welding, non-destructive testing and pressure testing, including formal audits to assess compliance, Peter has performed PED assessments of large global assemblies and delivered PED training within Lloyd’s Register and for external clients for the past eight years.

© ThinkstockPhotos

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HSE Training

The ATEX Directives Thursday 25 August 2016 SGS Baseefa, Buxton This course will provide a comprehensive overview of the ATEX Directives from the basics of explosions, the origins of ATEX and workings of protection concepts to the legal framework of the directives, their application to your workplace or products and how to comply with them.

Now, for the first time in 17 years, the current directive (PED 97/23/EC) is changing to ensure that it aligns with the New Legislative Framework. In addition to gaining a new number – 2014/68/EU – there are several other important changes that will have implications for manufacturers, importers and distributors of pressure equipment.

Upcoming courses

Industry Overview

The Fundamentals of Oil & Gas Wednesday 8 June 2016 EIC London

The changes in the PED range from how fluids are classified and what is required of manufacturers and notified bodies, to the procedures for conformity assessment. Some key changes for consideration are:

Management Course

• Some conformity assessment modules have been renamed and the requirements for manufacturers and notified bodies restructured.

Bidding to Win – How to Beat the Competition without Cutting Prices Wednesday 15 June 2016 EIC London

• All recitals, articles and annexes have been restructured to align with the ‘reference provisions’ of the New Legislative Framework. As a result there will be 37 new recitals, 31 new articles and 1 fewer annex.

Industry Overview The Fundamentals of Subsea Tuesday 5 July 2016 EIC London

• Article 9 – Fluid Classification changes, was implemented on 1 June 2015.

Industry Overview

Fundamentals of FPSOs Wednesday 6 July 2016 EIC London

The new Pressure Equipment Directive will take effect from 18 July 2016, will you be ready?

The EIC has collaborated with Lloyd’s Register to offer update and refresher training courses which will provide you with a comprehensive appreciation of the PED (2014/68/EU). www.the-eic.com

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Industry Overview

Fundamentals of Nuclear Thursday 14 July 2016 EIC London 20

May 2016

TRUSTED TRAINING DELIVERED BY ENERGY EXPERTS Expand your knowledge, skills and CPD EIC training courses are run by professionals with years of experience working in the industry. So whether you’re new to energy or keen to build on what you know, we’ll have the right course for you.

May 2016 sees the launch of our new training brochure. For detailed information on our global programme, host companies and in-house options be sure to request your copy.

NEW FOR 2016/2017 • Fundamentals of Natural Gas Processing • Introduction to the Pressure Equipment Directive • Fundamentals of Nuclear • SMEs: How to do Business with International Contractors

PLAN AHEAD TO REDUCE YOUR TRAINING COSTS • Early Bird Bookings – Book up to 6 weeks before the course and save 10% • Group and Multiple booking discounts also available, contact us to find out more

CONTACT US

For one-2-one advice, tailored courses at your workplace or simply to find out more: Tel +44 (0)20 7091 8600 Email training@the-eic.com www.the-eic.com www.the-eic.com

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EIC Middle East News

Middle East News Office News

This month sees our signature event, EIC Connect taking place on 17 May at the St Regis Hotel, Sadiyat Island, Abu Dhabi. Besides the expanded one-2-one zone, this year’s event will also benefit from the Middle East Landing Zone which will provide valuable information from a number of sources for companies contemplating setting up a presence here. This, combined with a strong speaker line up plus a wide range of exhibitors and the full support of the Abu Dhabi National Oil Company and its operating companies, means it is an event not to be missed and we very much look forward to extending a warm welcome to all attendees.

Regional Comment

ADWEA signs land transfer for F2 IWPP An agreement to transfer the land next to the existing F2 independent water and power project (IWPP) in Fujairah to Abu Dhabi Water & Electricity Authority (ADWEA) has been completed, paving the way for the next utility project at the site.

Our showcase event in March, pictured, focusing on opportunities in Iran, was well received, with over 80 delegates hearing from four different speakers on how best to approach any market entry into this country full of exciting opportunities. A high degree of due diligence was recommended. Possible hurdles that might arise were highlighted and fully discussed. The conclusion was that while there can be no doubt that despite the current high level of optimism around Iran, one needs to be fully aware of all the possible pitfalls, the most important being the financial side of things, pertinent indeed as UK banks have not yet fully embraced the removal of sanctions.

According to sources in the UAE’s utilities sector, ADWEA has ownership of the land next to the IWPP to develop a further utility project, which will be known as F3 (Fujairah 3). A decision has yet to be made on the type of plant that will be developed. The possibilities include an independent water project, an independent power project, a cogeneration plant, or an independent water and power project.

Following on from the Iran Showcase, bookings for our delegation to visit Tehran later this month were opened and not surprisingly, it was soon fully booked with 16 companies joining us for the trip where we expect to meet all the major players across the full industry spectrum.

As you can appreciate, there is a lot of logistical work required to deliver this event but we are nevertheless confident of a successful outcome. Other planned delegations for later in the year include Russia.

The decision for the type of plant to be developed for the F3 site could be influenced by a decision on expanding the desalination capacity of the existing F2 facility.

The F2 IWPP, which has a power generation capacity of 2,000MW and a desalination component of 130 million imperial gallons a day, was commissioned in 2011. The US$2.8 billion facility took three years to build. ADWEA selected a consortium led by the UK’s International Power (now UK/French Engie) and Japan’s Marubeni Corporation to build the scheme in 2007.

It was a pleasure for us to be invited to meet with senior officials from Saudi Aramco last month. The world’s largest hydrocarbon producer was interested to learn more about who we are and what we do, with a view to potentially becoming an associate member of the EIC, so please watch this space for any developments.

Contract award expected soon for Das Island gas plant Abu Dhabi Gas Liquefaction Company (ADGAS) continues to assess commercial proposals for the final package of the Integrated Gas Development Expansion project (IGD-E) some four months after bids were submitted.

We are pleased to see that the training courses that we offer are still attracting interest. The very successful Understanding Terms and Conditions of the Contract course which we previously ran as a one day course was extended to two days recently with seven delegates taking advantage of the more detailed content, all of whom were extremely satisfied with the positive outcome.

Following the success of our pilot course in January, we are pleased to offer once more the Liquidated Damages course which is scheduled for 30 May. Terry Willis, Director, Middle East, Africa & CIS Contact: terry.willis@the-eic.com

Package 4 of the scheme covers the construction of a gas treatment plant and associated facilities on Das Island in the gulf off the coast of Abu Dhabi.

The contractors bidding for the work include Petrofac (UK), Saipem (Italy), Tecnicas Reunidas (Spain) and Tecnimont (Italy). Their commercial bids were submitted on 6 December 2015 with the contract expected to be awarded in the first quarter of 2016. Budget constraints could be behind the delay.

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

@TheEICEnergy

22

May 2016

2016 1 3 T H O C T O B E R 2 0 1 6 • N AT U R A L H I S T O R Y M U S E U M • L O N D O N

The EIC National Dinner continues to be the premier energy sector networking event of the year and we invite you to join us once again at the Natural History Museum for another sparkling evening in stunning surroundings.

This year the evening will start at 19:00 with a drinks

Following the extended networking reception guests

and canapé networking reception held for the very

will be invited to take their seats for a splendid

first time in the Darwin Centre atrium with its private

three-course meal accompanied by free-flowing

entrance and 8-storey high cocoon. The Darwin

wine, beer and soft drinks in the world famous

Centre protects and houses the museum’s most

Hintze Hall. The climax of the evening will be the

valuable specimen collections, yet is a part of the

public recognition of the winner of the 2016 Award

museum very rarely visited.

for Supply Chain Excellence.

The EIC is pleased to announce that LV Shipping, which offers first class logistic solutions through a global network, will be returning as the Platinum Sponsor of the dinner. Speaking about the event Chris Lewin, Managing Director, said: “We are delighted once again to be sponsoring and supporting this year’s EIC National Dinner 2016. This will be the fourth occasion that we have done so.

“We believe the EIC represents a vital part of the UK economy with its members representing a variety of important sectors in which we provide tailored transport, shipping and logistic services.

“This prestigious event, attended by key industry decision makers, coupled with the world class venue, is in keeping with the name of LV Shipping Ltd and our wish to ever be associated and synonymous with quality.”

Also returning for 2016 as sponsors are Vantrunk Limited which will once again be sponsoring the drinks reception, R&M Electrical which are sponsoring the invitations and programme and Roxtec Limited which sponsors the prize draw. The EIC is also pleased to welcome CMP Products as a first time sponsor of the National Dinner who are sponsoring the Wine at the event.

COST

Table of 12

£2,600 +VAT

Table of 10

£2,200 +VAT

Individual Place

£225 +VAT

OPEN TO EIC MEMBERS AND GUESTS

E:

P L AT I N U M SPONSOR

TO BOOK T: +44 (0) 1642 379 975 nationalevents@the-eic.com www.the-eic.com/nationaldinner

ADDITIONAL SPONSORS

CMP

EIC Asia Pacific News

Asia Pacific News

Indian government plans to unlock gas resources In an attempt to boost gas production by almost US$40 billion the Indian government has set out plans to simplify licencing rules and offer price incentives to recover gas from complex onshore fields. Under new laws, companies would have more freedom to set gas prices from new discoveries and fields still under development.

The reform is expected to raise gas production by at least 35mcm/d for 15 years.

Our first Regional Showcase was held in Singapore on 17 March 2016, at the British High Commission, with 70 delegates attending. We organised the event in partnership with UKTI Singapore and Scottish Development International. The theme for the showcase was ‘The Outlook for Oil and Gas in Asia Pacific for 2016’ with four speakers presenting: Rajiv Biswas, chief economist at IHS International; Andrew Williams, regional director for NES Global; Willy Putra from UKTI Indonesia and Ali Sherwani from UK Export Finance. The key messages from the speakers were that there are still abundant opportunities in the oil and gas sector in the region and that companies should look at the long-term rather than the immediate shortterm. Given the good turnout and encouraging delegate feedback, we are considering holding similar events in the near future, perhaps focusing on specific countries in the region such as Vietnam, Myanmar and Thailand.

In March we attended OTC Asia which took place from 22 to 25 March in Kuala Lumpur. The number of EIC member companies which attended the event was encouraging. The ones we spoke to all reported making excellent contacts with key regional players.

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Office News

US$3bn refinery approved in Myanmar The government has approved the construction of a long-planned US$3 billion refinery to be undertaken by the Chinese firm, Guangdong Zhenrong Energy Co. The refinery, which will have a peak capacity of 100,000 barrels per day, will be constructed in the southeast coastal city of Dawei.

In April, PETRONAS announced that it is laying off about 1,000 employees and has conducted a major reorganisation of the company. One positive result that we see from the reorganisation is that the various procurement departments and functions of PETRONAS are now centralised under one roof called Group Procurement and headed by PETRONAS’ Vice President Rashid Yusof. Another important point to note is that PETRONAS is planning to shave US$13 billion off its CAPEX and OPEX for the next four years and therefore will be actively seeking the latest technologies to maximise efficiency in operations. UK companies which provide state-of-the-art products/solutions will have a great chance to support PETRONAS as it targets lower costs and improved efficiencies.

Azman Nasir, Head of Asia Pacific Contact: azman.nasir@the-eic.com

Myanmar plans to drill more offshore gas wells Myanmar plans to increase drilling activities on its offshore wells at the Zawtika gas field in the Mottama offshore blocks. It is understood that there will be four platforms built, with production anticipated to start next year.

PetroVietnam set to develop natural gas plant State-owned PetroVietnam is planning to build a natural gas processing plant worth US$3.8 billion in the Nui Thanh district, Quang Nam Province, south central Vietnam.

Australia to fund A$1 billion of clean energy Australian Prime Minister Malcolm Turnbull has declared that the country will establish a A$1 billion Clean Energy Innovation Fund. The fund will receive the investment over 10 years, and will target large-scale solar projects, offshore energy, biofuels and smart grids. At last year’s COP21 climate conference the country pledged to cut emissions by 26-28% of 2005 levels by 2030.

Forthcoming Event

Business Presentation Opportunities with MMHE Thursday 2 June 2016 EIC Kuala Lumpur

Pertamina to build solar power plants in Indonesia State energy company Pertamina has announced that it plans to build 1,000MW of solar plants in the next five years. The first project planned is a 50MW solar power plant in the Special Economic Zone in West Nusa Tenggara. Total investment costs for the 1,000MW solar energy programme is estimated to be US$2 billion.

Regional Comment

Malaysia plans petrochemical masterplan PETRONAS, working with the Malaysian government, will develop a petrochemical masterplan to enhance the country’s petrochemical industry. PETRONAS will undertake the technical, commercial and economic feasibility study.

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

@TheEICEnergy

24

May 2016

EIC North and Central America News

North and Central America News Office News

Corporate Entertainment EIC 7th Annual Sporting Clays Tournament & BBQ Friday 30 September 2016 American Shooting Centers, Houston We are pleased to host our 7th annual sporting clays tournament which will include a 10 team format shooting 75 targets per person and ending with cold drinks and Texas barbecue. Awards to be given for first, second and third places. Sponsorship opportunities are available.

We are delighted to announce that EIC global member Permasense Limited, a leader in the field of continuous integrity monitoring for the oil and gas production and processing industries, is expanding its presence in Houston. Although we are sorry to see Permasense Limited depart as an EIC Houston LaunchPad tenant, we wish Permasense well in realising its expansion goals.

Industry Overview

For those of you attending OTC, please join us at the UK pavilion on Monday 2 May 2016 at 16:00 to celebrate the launch of the new Houston office over drinks. The EIC Houston team will be in attendance to answer questions about the new office and EIC LaunchPad facilities in Houston. If you are extending your stay in Houston after OTC, contact our Office & Events Associate Manager at natalia.bueno@the-eic.com, to reserve your hot desk or conference facilities in Houston.

Fundamentals of LNG Thursday 13 October 2016 EIC Houston This industry overview will provide an understanding of the scope and size of the LNG industry, the value chain elements, the basic technologies involved, a commercial understanding of the value chain elements and the complexities involved in developing an LNG project.

In March, the North and Central America office delivered its 2016 Market Update: Regional Energy Outlook event.

With 40 delegates and speakers in attendance, our high tea event provided members with key information about how best to do business in a challenging market. The EIC provided members with regional project updates for 2016 and 2017, and gave a brief overview of regional market opportunities. Attendees also heard from BBVA Research, a multinational bank research arm, which provided a 2016 economic outlook for the US and Mexico, with a focus on energy.

Regional Comment

Wind accounts for majority of generation capacity in US Wind comprised 41% of total capacity additions in 2015 and is expected to continue to account for a large share of the growth in 2016. Texas added the most wind capacity in 2015, accounting for 42% of total wind additions, followed by Oklahoma, Kansas, Iowa and North Dakota.

Natural gas fired plants accounted for 30% of US capacity additions in 2015, with most increases coming in the form of combined cycle power plants.

Energy Markets Access, a consultancy combining qualitative in-depth interviews with extensive secondary research of the external factors influencing buyer decisions, shared its perspective on how companies should move forward in the current market. The event was a great success, with feedback from members highly positive.

Solar market expects to see record-breaking growth The US solar market is expected to grow a recordbreaking 119% this year. Over 16GW of solar capacity is expected to be installed during 2016, more than doubling the record 7.3GW installed in 2015. Colorado, Massachusetts and Minnesota are expected to install more than 100MW of community solar this year.

If you need assistance in the region, or for information about our LaunchPad services, and upcoming events and training, please contact: Amanda Duhon Regional Director (North & Central America) Contact: amanda.duhon@the-eic.com

Schlumberger completes merger with Cameron The total cost to Schlumberger for acquiring Cameron International was US$15 billion. The transaction, which included cash and stock, was announced last year as the companies sought to achieve technological, as well as efficiency gains in an effort to combat the oil price downturn.

Forthcoming Events

Corporate Entertainment EIC North and Central America Golf Tournament Friday 3 June 2016 Pearland Golf Club, Texas The EIC North and Central America office invites you to our golf tournament to be held at the Pearland Golf Club.

Teams of four will play 18 holes. Breakfast and lunch will be served, and the event will conclude with an award ceremony. Sponsorship opportunities are available.

Government to offer available acreage in western gulf The US government will offer about 23.5 million acres offshore Texas for oil and gas exploration and development in a lease sale that will include all available unleased areas in the western Gulf of Mexico Planning Area. The lease sale is scheduled for August and will be the 11th offshore sale under the Obama administration’s Outer Continental Shelf Oil and Gas Leasing Programme for 2012-17.

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

@TheEICEnergy

26

May 2016

EIC South America News

South America News

Forthcoming Events Industry Overviews

Office News

Fundamentals of Upstream Thursday 19 May 2016 EIC Rio de Janeiro

May sees the premier oil and gas event, OTC, take place in Houston. As Houston is considered the main hub for doing energy business in Latin America, this event is a great opportunity to meet potential buyers and partners.

Various South American companies will be in town as well as myself, so if you are taking part in OTC, please do let us know – it will be a pleasure to talk with you about opportunities in the region.

Fundamentals of FPSOs Tuesday 14 June 2016 EIC Rio de Janeiro Fundamentals of Subsea Saturday 30 July 2016 EIC Rio de Janeiro

In Argentina, the recent election of President Macri and an anticipated upturn as a result of work being carried out to balance the country’s finances, means there are high expectations for business development in the country, which will also enhance the energy sector. To ensure our members are at the forefront of the potential opportunities Argentina offers, the EIC is organising a trade delegation to the country scheduled for July, which among other areas will focus on opportunities in shale gas.

Regional Comment

Petrobras to release business plan in June The Brazilian state-run oil company is expected to release its investment forecast for 2016-20 in June. Originally expected in March, the announcement of the business plan has been postponed as the company is reportedly still working on its strategy plan for 2040, which is also set to be released in June.

Industry experts estimate that Petrobras will invest approximately US$89 billion by 2020, an amount which, if confirmed, will be a major reduction compared to the US$130.3 billion detailed in the 2015-19 business plan (revised to US$98.4 billion last January).

Argentine lawmakers approve payment to hedge funds The Argentine Senate has approved a plan which allows the government to settle a long-standing dispute with international hedge funds over defaulted bonds.

Approved by a 54-16 vote, the plan clears the way for the government to issue up to US$12.5 billion in bonds to pay creditors of debt defaulted during the major economic crisis that affected Argentina in 2001.

On 10 March the EIC welcomed Parnaíba Gás Natural (PGN), the second largest gas operator in Brazil behind Petrobras, for a business presentation at the EIC Rio office.

With only seven years of experience, this independent operator is focused on filling a gap in the regional market by only producing natural gas that feeds into ENEVA’s 1.4GW Parnaíba thermoelectric complex. PGN currently owns three producing gas fields and is looking to explore five others. The two main challenges faced by PGN are mainly related to low gas pressure in mature fields where new technologies are needed to help enhance gas recovery. The company is also looking at alternatives to pipelines, which would make the smaller fields economically feasible to produce natural gas. Currently, this is not a reality because of the high costs involved in constructing pipelines.

One of the main objectives of the Macri administration, the settlement will allow Argentina to restore its access to international capital markets, which is expected to boost investment in the country’s economy, particularly in the energy sector.

Venezuela introduces four-day working week President Nicolás Maduro has introduced a four-day working week in Venezuela in a bid to save electricity amid a severe energy crisis gripping the country. The measure, which will be valid until the second week of June, will turn Friday into a holiday for workers in all sectors.

We would like to thank Damian Popolo, Institutional Relations Manager, PGN, for a great presentation, which was well received by all in attendance. If any of our members would like to learn more about PGN’s work, please contact us and we can put you in touch with key contacts in the procurement and engineering departments.

Clarisse Rocha, Head of Americas Contact: clarisse.rocha@the-eic.com

Venezuela relies heavily on electricity generated by the 10.3GW Guri hydro power plant, which in recent weeks has been barely able to operate its turbines due to low reservoir levels. Critics of the Maduro administration argue, however, that the lack of investment in new power generation capacity is to blame for Venezuela’s electricity shortages.

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

@TheEICEnergy

27

May 2016

If you would like more information or are interested in becoming an EIC member, please contact: 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 EIC Northern Region Unit 1, Business Village, Chapell Lane (South), Wynyard Park, Stockton-on-Tees TS22 5FG Tel +44 (0)1642 379 973 Email teesside@the-eic.com 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 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 EIC Asia Pacific Lot 17-01, Level 17, Menara HLA, No 3 Jalan Kia Peng, 50450 Kuala Lumpur, Malaysia Tel +603 2725 3600 Email kualalumpur@the-eic.com 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 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

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