Inside Energy October 2017

Inside Monthly news for EIC members October 2017

One-to-one

Spotlight on technology

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Nord Stream 2 forges ahead despite tensions in the US and Europe

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Sector analysis

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Find out how TÜV Rheinland is using ultrasound to detect corrosion

Daniel McAteer talks about Global Energy Group’s new decommissioning offering

www.the-eic.com

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Sector analysis

Nord Stream 2 forges ahead despite US and EU tensions Gazprom’s €9.5bn flagship Nord Stream 2 pipeline project has been at the forefront of political tensions between the US and Russia, and divided opinion within the EU. While the US and some EU nations have criticised the project as reducing Ukraine’s importance as a transit route and undermining efforts to diversify supply, other countries, such as Germany, which is set to benefit from the pipeline, are promoting the project.

US sanctions Three major Russian pipelines: Nord Stream 2, Turk Stream (Black Sea pipeline) and Power of Siberia could all be impacted by US sanctions. The new US sanctions are being imposed as according to the US Senate, Russian exports ‘are being used to coerce its neighbours’ and Nord Stream 2 has a ‘detrimental impact on the EU’s energy security gas market development in Central and Eastern Europe, and energy reforms in Ukraine.’

This gives the US President the right, but not the obligation, to impose sanctions on those who make a one-time investment of upwards of US$1m in the construction of Russian export pipelines or provide equipment (including leasing), technology, finance or services for this purpose. The cap for such transactions is US$5m for a 12 month period and the US will continue opposing the construction of the pipelines.

The main parties who may be affected by these sanctions are the five partners involved in the Nord Stream 2 pipeline: ENGIE, OMV, Shell, Wintershall and Uniper, all of whom have signed financing agreements with Gazprom. Each of the five energy companies have agreed to provide funding and guarantees for up to 10% (€950m) of the total cost of the project.

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These sanctions could affect Europe which imports approximately a third of its gas through Russian pipelines.

In 2014, EU countries received approximately 91.86Bcm of gas from Russia, of which 23.56Bcm came through Ukraine. With the completion of the new Russian export pipelines, the CEO of Gazprom has stated that exports via Ukraine could fall to 10-15Bcm a year.

EU mandate The European Commission (EC) has requested a mandate from the Council of the European Union to allow it to negotiate with the Russian Federation on Nord Stream 2. The purpose of the mandate is to ensure that, if built, the pipeline will operate ‘in a transparent and non-discriminatory way with an appropriate degree of regulatory oversight, in line with key principles of international and EU energy law.’

The EC’s stance on Nord Stream 2 is that it does not contribute to the EU’s objectives of giving access to new supply sources, routes or suppliers. The main cause of concern is that the pipeline will endanger existing transport routes which run through Ukraine, such as the Urengoy-Pomary-Uzhgorod gas pipeline or the Soyuz pipeline. By avoiding Ukraine, the subsequent loss of transit fees would weaken its economy, decrease the country’s energy security and so undermine EU policy towards Kiev. As of 26 June, 13 of the 28 EU nations support the EU mandate for intervention in Nord Stream 2.

Gazprom’s stance Despite the US sanctions and EU mandate, Russia’s state-owned Gazprom is confident these will not stop the progress of its key projects. The sanctions while problematic are not substantial enough to cause a change in strategy and activities. Gazprom also believes its projects, particularly Nord Stream 2 and Turk Stream play a vital role in securing gas supplies for the rest of Europe which is experiencing a decline in domestic production. As of now, Gazprom is confident that Nord Stream 2 will be implemented before US sanctions can drastically impact the pipeline and the project continues to move forward.

Mohammed Javid Sector Analyst (Midstream) mohammed.javid@the-eic.com

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

Platts Guide to Nord Stream 1 and 2 Gas Pipeline Projects

The total capacity of two lines of Nord Stream 2 will be 55bn cubic metres (Bcm) of gas per year, delivered over 1,200km of pipeline stretching from Russia to Germany across the Baltic Sea. This will take the aggregated design capacity of Nord Stream and Nord Stream 2 to 110Bcm of gas per year, making it a key transit route for Russian gas into Europe. The pipeline, which is scheduled to be operational by 2019, will deliver gas from the Bovanenkovo natural gas field in north Russia’s Yamal Peninsula, which holds 4.9tn cubic metres of gas reserves.

Moham

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Inside this issue...

You might have noticed that the EIC logo on the front cover looks a bit different to normal. That’s because we’ve updated it to mark our 75th anniversary which takes place in 2018.

We’ll be carrying out lots of fun activities throughout the year to celebrate this milestone, starting with a members’ reception at the House of Lords in February.

Proceeds from our 75th anniversary events will go to two very worthy causes: Cancer Research UK, who I’m sure need no introduction, and The Ocean Cleanup, whose mission is to rid the world’s oceans of plastic.

It’s been an incredible journey for the EIC and its members, starting way back in 1943 when 13 companies met in London to form the Council of British Manufacturers of Petroleum Equipment, as we were known then.

Since then we’ve expanded to over 650-member companies who cover the full range of energy sectors from oil and gas, subsea, petrochemical and refining, to power generation, transmission and distribution, through to nuclear and renewables.

Over the years we’ve developed our offering from leading overseas delegations to hosting UK pavilions at energy events around the world, going on to organise our own acclaimed EIC Connect events as well as running in-house and onsite training courses.

2008 was a landmark year for the company when we launched EICDataStream, our bespoke CAPEX project tracking database which has become one of the leading business development tools for the energy industries.

We’ve never been a company to rest on our laurels though and in 2017 alone we’ve rolled out an incredible amount of new developments.

In addition to our well-established Insight Reports, we’ve also started producing Country Reports. So far we’ve covered Iran, Kazakhstan, Mozambique and South Africa, with many more to come. These are essential reading for anyone thinking about making the move to these emerging markets.

We’ve also extended our successful EIC Connect event format from the UK and UAE to the US and Indonesia with events taking place in Houston and Jakarta for the first time ever this year.

At this year’s Offshore Europe we launched EICAssetMap, the only O&M database to map all major UK energy facilities across all energy sectors.

This product will give those companies working in the OPEX sector, or thinking about entering it, a real edge in what is a very competitive market.

From the very beginning our mission has been to support our companies, large and small, to maximise business opportunities, at home and abroad. Looking ahead, we’ll continue to adapt to the changing markets, doing everything we can to ensure a bright future for all our members.

Edward White, Editor and Communications Manager edward.white@the-eic.com Sign up for the EICOnline newsletter

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Contents Sector analysis

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Inside this issue...

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One-to-one 4 EICAssetMap 5 New members

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Member news

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Social media round up 11 Overseas events

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Forthcoming events

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National Awards Dinner 16 EIC Survive and Thrive 19 Spotlight on technology 22 EIC training

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Asia Pacific news

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Middle East news

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North America news

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South America news 28 Follow @TheEICEnergy

Join the EIC LinkedIn Group

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One-to-one

with Daniel McAteer Development Officer, Global Energy Group On a typical day Global Energy Group (GEG) may be repairing drilling rigs, fabricating subsea manifolds, upgrading topside process modules, building a process plant, refurbishing a hydro station and building renewable energy devices.

Q

Can you tell our readers about the integration process that’s been going on at GEG?

Q

What advice would you give to the UK supply chain to get through these tough times?

Most of your readers will probably know Global Energy Group as Isleburn, CPS, Reel or Global Energy Services among many other business units. For the last two years we’ve been combining all these businesses under one umbrella.

Diversifying has been key to GEG – we were traditionally CAPEX focused. Now OPEX work is a very important part of the business. I’d say that one thing the UK supply chain needs to learn to do is collaborate, even with competitors.

This integration means we can now offer our clients a full lifecycle offering, from fabrication and offshore integrity right the way through to late life and decommissioning.

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Our integration provides a more cost-effective offering, which ultimately benefits the end client. Just as importantly though, we now offer a turnkey solution and just one interface for the customer; before they had to speak with managers from lots of different parts of the group, now they only need to speak to one project manager – a massive benefit.

We’ve really diversified the business, focusing particularly on building up our offshore capability – this year we’ve had 300+ personnel offshore at any given time and have been supporting 13 shutdowns across the North Sea. In the last two years we’ve secured repair order contracts with seven operators to support their assets in the UCKS.

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A case in point is our recent collaboration with fellow supply chain contractors on a vessel mock-up project onshore prior to completing the offshore scope.

GEG fabricated a vessel mockup which allowed us to carry out onshore trials of the internal refurbishment and prepare the safety case and emergency response procedure for the vessel entry works. This collaboration allowed us to minimise the potential risks for carrying out the scope offshore across a range of service companies.

Another example is our work with Veolia and Peterson to create a new decommissioning offering.

Veolia is one of the world’s biggest environmental waste companies. Peterson is supply, logistics and shipping and GEG provides the fabrication and offshore capability.

We realised that by coming together we have 75% of what it takes to decommission a platform.

We work under the strapline of UK EPRD – engineering, preparation, removal and disposal.

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Email Pleasenewsdesk@the-eic.com contact edward.white@the-eic.com • Phone +44 (0)20 7091 8600

We offer piece small decommission, reverse installation and reverse floatover and hybrid offerings. Being able to bundle all these things together and not being led by a heavy-lift contractor, who we sub-in, is a new market offering.

This collaboration has led to a completely new offering from GEG. It is safe to say that decommissioning is now a big part of our future plans.

Q

Can you tell us more about your future plans?

A

We’ll continue to focus on our offshore operational offering, while growing the decommissioning and renewables parts of our business.

We are already heavily involved in renewables, in particular offshore renewables, where we’ve been active for 10 years now. Recent projects include the MeyGen Atlantis tidal turbines and also the Statoil Hywind project where we fabricated and loaded out the suction anchors.

Our future work in decommissioning and renewables will be tied to the development of the Port of Nigg in northern Scotland, which we own.

Very soon, we’ll be conducting marshalling services for the Beatrice offshore wind farm which will see the component parts for 87 wind turbines coming into Nigg as small pieces, where we’ll erect them and load them onto the installation vessels.

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AssetMap CAPEX and OPEX: we’ve got it covered The EIC is rightly renowned for our CAPEX project database, EICDataStream.

We extended our offering into the OPEX sector, launching EICAssetMap at this year’s Offshore Europe to great acclaim.

EICAssetMap is the only O&M database to map all major UK energy assets across all energy sectors.

Key features

• Fully interactive: search for facilities by location, sector and operator • Make the right connections: find out who you need to do business with at each facility • Use it on the move: tablet friendly so your sales force can take it with them on the road • Unlimited company access: add as many colleagues as you like to your account • Stay up to date: EICAssetMap is updated daily by our expert analysts • Track the lifecycle of assets: from start-up through to decommissioning

If you work in the UK O&M sector, or are thinking about entering this lucrative market, get ahead of the competition with EICAssetMap Sign for the EICOnline newsletter Get inup touch Need a demonstration of EICAssetMap? Visit www.the-eic.com/Forms/NewsletterSignup Please contact membership@the-eic.com

Follow @TheEICEnergy

Join the EIC LinkedIn Group

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New EIC members NEW GLOBAL MEMBER

NEW UK MEMBER

NEW GLOBAL MEMBER

atg UV Technology

Energy Resourcing

Genesis House Richmond Hill Wigan Greater Manchester WN5 8AA

27 Great West Road Brentford Middlesex TW8 9BW

Fulkrum Technical Resources

The Nominated Representative is Mr Paul Hennessey, Oil, Gas & Energy Business Manager Telephone +44 (0)1942 216 161

The Nominated Representative is Mr Simon Gerrard, Business Development Executive Telephone +44 (0)20 8380 0640

8 The Barn, Oakley Hay Lodge Great Folds Road, Corby Northants, NN18 9AS The Nominated Representative is Mr Owen Gibbons, Commercial Director Telephone +44 (0)845 5198 535

Email paul.hennessey@atguv.com

Email simon.gerrard@ energyresourcing.com

Web www.atguv.com

Web www.energyresourcing.com

Web www.fulkrum.com

atg UV is an industry expert in the design and manufacture of ultraviolet (UV) disinfection/treatment systems. With 30 years’ experience, an impressive international client portfolio and thousands of successful case studies, atg UV is leading the way in UV system design for oil and gas sector applications, drinking water disinfection, industrial and process water treatment, offshore UV packages and swimming pool applications.

Energy Resourcing Group (ERG) is a leading supplier of specialist professional human capital and associated staffing services to the following industry sectors internationally: oil and gas; power and renewable energy; chemicals, petrochemicals and refining; mining and mineral processing; construction.

Fulkrum Technical Resources (FTR) provides specialist QA/ QC inspection and expediting personnel with supporting services to the global energy industry, supporting clients from initial feasibility and design through procurement and logistics to final construction and operation.

atg UV Technology is a prime manufacturer of both medium pressure, low pressure and low pressure amalgam disinfection systems. atg UV also offers special ultraviolet disinfection/ treatment systems offering clients an individually tailored service to solve the most complex of disinfection problems.

Energy Resourcing Group services include recruitment, contractor management, master vendor and sub vendor services, mobility services and 3D visualisation.

The company currently has offices in Singapore, Perth, Ulsan, Geoje, London, Manchester, Houston and Calgary.

With vast experience in the ultraviolet industry combined with constant product innovation and the development of award winning system designs, atg UV provides economic, versatile and durable solutions for many applications in a variety of industry sectors and operating environments, with flows ranging from a few litres per hour to over 5,000m3/hr in a single compact, high output UV system.

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Email owen.gibbons@fulkrum.com

FTR works in collaboration with its clients to provide them with a competitive edge in delivering successful projects. FTR affords its clients immediate access to a global resource, maximising their capabilities facilitating safe, timely and cost-effective projects.

With branch offices in the UK, USA, UAE and Malaysia, FTR’s global reach affords its clients around the clock coverage across all continents and time-zones.

New EIC members

NEW PRIMARY MEMBER

NEW UK MEMBER

Okazaki Manufacturing Company UK Ltd

Wood Group Industrial Services

Ashwood House 66 Cardiff Road, Taffs Well Rhondda Cynon Taff CF15 7AF

Kirkstone House St Omers Road, Gateshead Tyne and Wear NE11 9EZ

The Nominated Representative is Mr Chris Green, Chief Executive

The Nominated Representative is Mr Jason Smith, Proposals & Estimating Manager

Telephone +44 (0)29 2081 4333

Telephone +44 (0)191 493 2600

Email chris.green@okazaki-mfg.co.uk

Email jason.smith@woodgroup.com

Web www.okazaki-mfg.co.uk

Web www.woodgroup-isl.com

Okazaki designs and manufactures market leading temperature measurement related products and heating systems which are designed to be highly accurate and to operate in some of the harshest environments.

Wood Group Industrial Services is a market leading provider of industrial services including protective coatings, scaffolding, insulation, cleaning, fire sentries, rope access, steelwork repairs, electrical instrumentation installation, asbestos removal and civil engineering services.

Products include the VotexWell (helical strake design), Thermowell, Fan Type Skin Thermocouple, AeroHeat and MI Cables which help clients in numerous industries around the world such as petrochemical, aerospace, semi-conductor and vacuum to name a few.

Despite the large range of products, Okazaki is always happy to develop customised products and solutions that solve specific issues or market needs as it appreciates that one size does not fit all.

The company has over 40 years of experience of providing its wide range of services to the marine, oil and gas, infrastructure, chemical, power and construction sectors.

The business operates in the UK and internationally undertaking capital projects, maintenance, integrity and decommissioning contracts for a variety of bluechip clients.

Okazaki is fully committed to quality management, and the quality of its products and service is backed by numerous certifications and standards such as ISO 9001, ISO 14001 and JCSS 0079.

With manufacturing sites in Japan, USA and Taiwan and support offices around the globe, Okazaki’s worldwide footprint is coupled with local representatives who provide specialist instrumentation advice, guidance and technical support.

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Member news Bifold’s filter booster range increases flow by 500%

Oil and gas industry pump and valve supplier Bifold has announced that its patented unique volume and filter booster range in 316L stainless steel achieves up to 500% higher flow rates than market equivalents.

By removing all elements from the main flow line, including regulators and filters, the effective CV of the patented filter booster is multiplied, resulting in significantly reduced tubing sizes.

Where safety is critical, Bifold’s range of volume and filter boosters are SIL 3 third party certified to IEC 61508 Parts 1 & 2.

In applications where a fast response time on modulating service, in combination with a fast shutdown time is required, the VBP also eliminates the need for an additional poppet or quick exhaust valve to achieve the required closing speeds.

This results in reduced material and labour costs and simplifies positioned set up and control.

Please visit www.bifold.co.uk for further details. You can also contact Bifold on +44 (0)161 345 4777

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For more information: www.bifold.co.uk

HTL achieves ISO 9001 Quality Management and 14001 Environmental Management 2015 standards

HTL Group has been successfully certified to ISO 9001 Quality Management, ISO 14001 Environmental Management and OHSAS 18001 Health and Safety Management while also being transitioned to the latest 2015 standards for ISO 9001 and ISO 14001.

This allows HTL Group to maintain systems and procedures which provide safe, efficient and environmentally friendly operations, enabling the delivery of industry leading services to valued clients.

With an ever-growing innovative range of 100% British made controlled bolting and fluid power solutions, HTL constantly innovates to offer quality and safe solutions for every bolting application which exceeds industry demands.

Available across the globe, HTL’s OEM product range is designed by its in-house design team who harness years of industry expertise.

Jo O’Donnell, Group Systems and HR Manager for HTL Group commented, ‘We are extremely proud of our achievement and strive to continuously deliver industry leading customer service through quality, safe, efficient and environmentally friendly operations.’

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For more information: www.htlgroup.com

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Kongsberg Maritime to deliver world’s first autonomous offshore support vessel

Offshore technology solution provider Kongsberg Maritime has signed a memorandum of understanding (MoU) with Bourbon Corporation and Automated Ships Ltd to build the world’s first fully-automated and cost-efficient prototype vessel for offshore operations.

The Hrönn project will see the companies design and develop a light-duty, offshore utility ship to service the offshore energy industry.

The vessel will also be able to be used as a remotely operated underwater vehicle and autonomous underwater vehicle support ship and standby vessel, capable of providing firefighting support to an offshore platform working in co-operation with manned vessels.

Kongsberg will contribute its technology expertise and deliver all major marine equipment necessary for the design, construction and operation of Hrönn, including all systems for dynamic positioning and navigation, satellite and position reference, marine automation and communication.

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For more information: www.km.kongsberg.com

Member news

Mirage launches new line borer

Energy sector portable machine tool specialist Mirage Machines has launched a new line boring machine designed to improve on the reliability and performance of equivalents currently available.

The MLB610 has been developed primarily for the refurbishment of construction vehicles. It boasts the ability to produce workshop quality tolerances onsite when machining hinge pins, buckets and backhoe loaders. A wide range of options provide the potential for applications in other sectors, including the machining of gearboxes and stern tubes in the shipbuilding industry.

Customers can choose a standard machine capable of handling the most common line boring applications, or configure a model suited to their exact requirements.

The modular design offers many options, including electric, pneumatic and hydraulic drive options, a choice of boring bar lengths and several mounting options. The drive and feed units are also designed to accept boring bars made by other manufacturers.

Commenting on its latest product, Mirage Managing Director Richard Silk said, ‘With this new machine our aim is to address the durability and performance issues experienced by users of other line borers out there.

We refuse to accept that portable machining products have evolved as far as they can.’

There are five standard MLB machine packs to choose from, each incorporating an electric drive and covering a range of boring capacities ranging from 1½” up to 24” diameter. Each pack includes a 2 metre length boring bar, but with different arrangements of tooling hole spacing, bar diameters and set-up cones.

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For more information: www.miragemachines.com

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Mirage Machine’s MLB610 line boring machine

NEL to build £16m subsea centre of excellence

Independent flow measurement research and development specialist NEL has started to build its £16m centre of excellence (CoE) for subsea development in East Kilbride, Scotland.

Its new high pressure multiphase flow test facility will have the largest test range in the world, positioning Scotland as a world leader in multiphase flow measurement.

The testing range of the new facility includes single-phase, multiphase and dry gas, at operating pressures up to 150 bar – doubling current existing capabilities to replicate subsea production conditions.

NRL Group recruits new IT Director Technical service provider NRL Group has appointed Neil Campbell as the company’s new IT Director.

Taking up the role at NRL’s Wigan support office, Neil joins the business with a remit to drive technology forward.

Having previously worked for a number of recognised industry leaders including Mitie Property Management, he brings extensive system development expertise.

His role will lead NRL’s internal, customer focused and client facing systems, increasing efficiency and delivering added value to stakeholders.

The 1,600 square metre facility will allow a greater understanding of the impact of higher operating pressures on measurement equipment in extreme subsea environments.

Ben Humpage, CFO for NRL Group, said, ‘We are delighted to bring Neil on board to help further enhance our IT capabilities. As a business we’ve long understood the importance technology plays in our relationships with our clients, contractors and candidates, and Neil brings with him the same passion for customer service and the desire to ensure technology innovations are central to our internal and external delivery.’

Once completed the CoE will facilitate company-led industrial projects and product development, SME support, hands-on industry training, and academic research.

Commenting on his appointment Neil said, ‘The business has achieved huge success to date and I’m very much looking forward to delivering an improved technology offer.’

The centre is the only one worldwide to provide this range and combination of operating pressures, temperatures, flowrates and metrology all under one roof.

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For more information: www.tuvnel.com

Visit www.the-eic.com/Forms/NewsletterSignup

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For more information: www.nrl.co.uk

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Member news

© EDF Energy 2017

Ovivo awarded £27m Hinkley Point contract

Water treatment company Ovivo UK Limited has landed an eight-year contract worth over £27m with EDF Energy to provide the cooling water intake screening system for the new 3,200MW Hinkley Point C nuclear power station to be built in Somerset.

The company will supply a complete cooling water intake screening system, processing more than 191 cubic metres per second of water that will be used for cooling both the electricity generating steam-cycle and the nuclear reactor services.

The equipment will be primarily designed at Ovivo’s Colchester office and manufactured at various approved facilities within the UK. The scope of work includes design, fabrication, delivery and technical support during the erection and commissioning of 4 drumscreens, 4 frameless dual flow band screens, 20 trash rack screens, 20 raking screens, 12 online debris filters and all the auxiliary components.

Once installed, the drumscreens will be the largest screens of their type in the world, with a diameter of 27 metres by a width of 6.84 metres, approximately 30% larger than its closest rival.

We have a long association with the UK’s nuclear power industry and are proud to be given this opportunity to contribute to the building of the next generation of nuclear plants in the country.

Marc Barbeau, President and Chief Executive Officer, Ovivo

‘We are very happy to have been selected by EDF Energy as their sole supplier for the seawater filtration system,’ said Marc Barbeau, President and Chief Executive Officer at Ovivo.

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For more information: www.ovivowater.com

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Worldwide Experts in Water Treatment

PJ Valves accelerates Americas growth with new hire

PJ Valves, the specialist manufacturer and supplier of valves for the global energy industry, has appointed Kevin Schumacker as Business Development Manager in Houston.

Kevin brings 12 years of industry experience to PJV, having previously worked in various supply chain roles at Bechtel and Fluor. He has extensive sector knowledge, having worked on a variety of major projects around the world, such as the Nexus Gas Transmission pipeline, the Pascagoula Base oils plant and the AGDII gas project. With significant experience in building projects from the ground up, Schumacker understands the challenges from both a supplier and operator perspective.

Sales Director Spencer Linsell said, ‘Kevin’s knowledge and experience of how our customers procure valves will be of huge benefit to PJV, not just in Houston but for our business globally.

New EIC members Social media Member round news up

‘We are excited to have Kevin on the team and look forward to him driving our business forward.’

Schumacker will help boost PJV’s presence in America, by expanding the office with several new employees this year. He will draw on his wealth of industry connections to strengthen established relationships and develop new ones, widening PJV’s client base in the region.

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For more information: www.pjvalves.com

Proserv secures decommissioning contracts in Asia Pacific

Proserv has been awarded a series of contracts worth US$4m for its well severance, platform and FPSO decommissioning services in the Asia Pacific region.

The contracts have been awarded

by Premier Oil in Indonesia; Chevron, through Baker Hughes, in the Gulf of Thailand; BHP, through Fugro, in Western Australia and by PCPP Operating Company, through Sapura Technology Solutions Sdn Bhd in Malaysia.

As part of the project work-scopes, Proserv will provide abrasive cutting, cold cutting and dredging services using its portfolio of field-proven products and technologies. The awards build upon decommissioning successes for the company globally.

Mathieu Al Kharfan, Region President for Asia Pacific, said, ‘These recent wins are a sign of our growing reputation as a decommissioning services partner in the region, providing clients with the most reliable and efficient technology solutions, delivered at the lowest cost, with no compromise on best in class HSE performance.’

Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – Energy Industries Council (EIC).

Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.

The EIC @TheEICEnergy Our Global Offshore Wind EIC Insight Report is available now: bit.ly/2qjTSVq

The EIC @TheEICEnergy Our judging panels met this week to decide the winners of the #EICSurviveandThrive awards, find out who won at: #EICNationalAwardsDinner

Energy Industries Council (EIC) We launched our newest product, EICAssetMap, at Offshore Europe.

It’s the only O&M database which maps all major UK energy facilities across all sectors

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For more information: www.proserv.com

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EIC ABERDEEN LOOKING FOR AFFORDABLE AND FLEXIBLE OFFICE SPACE? The EIC has prestigious offices in the West End of Aberdeen available for lease/lease-share.

We are delighted to offer three offices to lease. The tenant offices are fully equipped with all the amenities you will need.

Whether you are looking to downsize or wish to avoid the complexities of setting up a new office, the EIC can provide the perfect solution if you are looking for a base in Aberdeen.

Benefits • Convenient city centre location within easy reach of Altens, Bridge of Don, Dyce and Westhill • Fully furnished, light and airy offices with use of additional conference and meeting space • Free fast wi-fi and reception services • Access to the regional team for support • Free parking for tenants and use of our conference room and kitchen facilities

Prices and Offers Prices start from £395 for 1 person office, £695 for 2 person office.

10% discount for EIC member companies.

For a limited time only, the EIC is offering the first month free of charge when signing a 12 month lease.

Only need the office for 2-3 days per week?

We can offer flexible lease-share options.

Contact the Aberdeen team to discuss your needs and availability further.

72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 | aberdeen@the-eic.com | www.the-eic.com

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Overseas events UK O&G innovation at ADIPEC 2017 The EIC will again be organising and managing the UK National Pavilion at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), one of the world’s most influential oil and gas events, on 13-16 November 2017.

ADIPEC takes place every year in Abu Dhabi, the heart of the oil and gas industry. Exhibiting at ADIPEC gives your company an incredible opportunity to access the key players in this exciting region.

The Middle East: a buoyant market The overwhelming success of ADIPEC, even during the current global down cycle, reflects the strength and resilience of the Middle East.

It’s one of the few regions worldwide still awarding contracts and where new developments are emerging.

According to the EIC’s project tracking database, EICDataStream, there are 270 projects proposed or under development in the six Gulf Cooperation Council countries, worth more than US$500bn collectively.

There is no better event than ADIPEC for those companies who want to establish themselves in the region or reinforce their position in this lucrative market.

ADIPEC: facilitating global business Since its launch in 1984, ADIPEC has provided an unrivalled opportunity for experts and professionals to come together to network with peers and win business. ADIPEC remains in the top three oil and gas events across the world and is the largest energy event in the MENA region.

The event is developing rapidly, with the 2016 edition breaking the event’s previous international participation record with over 95,000 visitors from 135 countries.

Attendees from leading companies such as BP, CEPSA, Dragon Oil, Shell, Total and Wintershall will provide the opportunity for companies to engage and network with global industry leaders.

The UK pavilion – Hall 8 Decades of experience in one of the world’s harshest and most demanding offshore environments, the North Sea, have honed the UK oil and gas industry’s expertise to meet the challenges of the global energy market.

Please take the time to visit as many of the UK exhibitors as possible and find out how they can add real value to your projects and programmes.

UK exhibitor lounge Situated at the heart of the UK pavilion, the lounge provides EIC exhibitors and their guests space to recharge, hold meetings and network. Sponsored by Shell.

The UK pavilion at ADIPEC 2016

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14

October 2017

Forthcoming events 3 October EIC Connect

EIC Connect Oil & Gas USA 2017 Norris Conference Centers, Houston

4 October Industry Overview

Fundamentals of LNG EIC London

5 October Management Course

EICDataStream Overview EIC Rio de Janeiro

10 October Technical Workshop

Introduction to Centrifugal Pumps SPP Pumps, Coleford

10 October Management Course

EICDataStream Overview EIC Asia Pacific

19 October Regional Showcase

ALE, Servelec and Booth Welsh and Northern AGM Bolton Whites Hotel

20 October Corporate Entertainment

8th Annual Sporting Clays Tournament American Shooting Centers, Houston

25 October Management Course

Understanding Local Content DNV GL, EIC Rio de Janeiro

26 October Management Course

Appointment and Management of Local Agents EIC London

31 October Management Course

12 October Corporate Entertainment

EIC National Awards Dinner 8 Northumberland Avenue, London

Contracts: Why They Matter and How to Use Them to Your Advantage Addleshaw Goddard LLP, London

17 October Business Presentation

31 October Corporate Entertainment

Korea and UK Power Generation

Cheese & Wine Networking Night

EIC London

19 October HSE Training

The Pressure Equipment Directive Lloyd’s Register, London

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Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Vintage Wine Bar, Dubai

31 October Management Course

EICDataStream Overview EIC Houston

For more information and to book visit www.the-eic.com

Forthcoming events

November 2017

BO NOOK W ING

1 November EIC Connect

EIC Oil & Gas 2017 City Plaza, Jakarta

8 November Industry Overview

Fundamentals of Nuclear EIC Teesside

8 November Export Showcase

Opportunities in Egypt Crown Plaza Aberdeen Airport

9 November Export Showcase

Opportunities in Egypt EIC London

13 November Overseas Exhibition

ADIPEC

Abu Dhabi National Exhibition Centre

14 November Management Course

SMEs: Business with Int’l Contractors EIC London

ONS Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

14 November Management Course

PNR Regional Market Update EIC Houston

14 November Management Course

EICDataStream Overview EIC Houston

16 November Management Course

Bidding to Win

Rothera Group, EIC London

20 November Overseas Delegation

Overseas Delegation to Uganda Uganda

21 November Technical Workshop

Introduction to Control Valves Severn Glocon Group, Brighouse

28-29 November EIC Connect

EIC Connect PNR 2017 ACC Liverpool

STAVANGER 20 NORWAY 18

27 – 30 AUGUST Contact raelene.rifkind@the-eic.com

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15

LA S RE TA T F M BL EW AI ES NI NG

EIC

NATIONAL DINNER 2017

12 OC TOBER

Your venue 8 Northumberland Avenue is one of central London’s hidden gems.

It was originally the residence for the Percy family in the 1600s and has been immaculately restored, boasting high ceilings, impressive chandeliers, and ornate detailing.

Accommodation for guests is also available at the Grand Hotel at 8 Northumberland Avenue.

T H E M O S T E XC LU S I V E EVENT IN THE UK ENERGY I N D U S T R Y ’ S S U P P LY CHAIN CALENDAR

Your guest speaker Jimmy Carr is Channel 4’s face of comedy and one of the most distinctive talents on TV. He fronts various topical panel shows and appears regularly on the comedy circuit.

Join us at the most prestigious event in the UK energy industry’s supply chain calendar as we celebrate the achievements and successes achieved by YOU, our members.

Take advantage of this exclusive platform to host and entertain your own VIP guests at an unforgettable evening.

Cost Table of ten: £3,500+VAT Individual place: £365+VAT

Awards ceremony

Sponsorship opportunities Most of the major Tier 1 and Tier 2 EPC contractors, OEMs, operators and developers are represented within the audience, making this a unique opportunity to promote your brand to potential customers, clients and peers allowing your company to stand out.

BOOK TODAY

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

The EIC Awards Ceremony will recognise individuals and companies which offer a product or service with a positive and significant effect on the UK energy supply chain.

Details of award categories and how to enter will be announced soon.

17

EIC NATIONAL

DINNER finalists

Well done to this year’s awards finalists The winners will be announced at the EIC National Awards Dinner taking place on 12 October at one of London’s most iconic venues, 8 Northumberland Avenue.

The evening will feature a three-course menu followed by after dinner entertainment from TV personality and comedian Jimmy Carr.

Collaboration Award

Aiken Group, Costain and Petrofac

Diversification Award

Aiken Group, ALE and ENGIE Fabricom

Export Award

Carpenter & Paterson, PJ Valves and S3 ID

Innovation Award

HR Wallingford, Reflex Marine and Servelec

Optimisation Award

Booth Welsh, Hayward Tyler and Weir Engineering Services

Technology Award

ABLE, IMI Precision Engineering and VEGA Controls

Sponsorship opportunities

To find out about the few remaining sponsorship opportunities available at one of the UK’s most prestigious energy supply chain events please visit: www.the-eic.com/Events/EICNationalAwardsDinner/Sponsor.aspx

Platinum sponsor

Dinner sponsor

Gold sponsor

Wine and beer sponsor Sign up for the EICOnline newsletter

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Silver sponsors

Collaboration Diversification Export Innovation Technology

Bronze sponsor Prize draw sponsor

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BO O NO KI W NG

Power, Nuclear & Renewables 2017 Global opportunities for the UK supply chain 28-29 November 2017

Conference

•

ACC Liverpool, UK

Supplier Presentations

28 November

In Association with

> Nuclear New Build: UK Projects Update

One 2 One Appointments

29 November

In Association with

> Future Energy Scenarios > Offshore Wind: Delivering sub £100/MwH & Connecting it Up

> Decommissioning & Clean Up: SLA’s > Live Discussion: Operators > Contractors > Supply Chain > Latest international opportunities in Power

> Decarbonisation, De-Centralisation, Digitisation: Breaking it down for the supply chain > Beyond wind: Tidal Energy I Solar PV I Energy from Waste

Speakers Include:

The Energy Industries Council (EIC) is the UK’s largest energy trade association for the supply chain www.the-eic.com EIC Connect is our flagship event for CAPEX and OPEX opportunities.

ATTEND

EXHIBIT OR SPONSOR

From just £299 +VAT

From just £2,000 +VAT

> Hear from the top energy companies

> A fraction of the cost of commercial exhibitions

> Find out what the industry need now and longer term

> Display simulators, working products

> Discover how you can register & pre-qualify as a supplier

> Introductions to key buyers at the event

> Book one-to-one appointments with buyers

> Pre-event Twitter and LinkedIn campaign

> Identify new opportunities and routes to market

> Circulation of promotional material

www.the-eic.com

nationalevents@the-eic.com

+44 (0) 1642 379 976

19

EIC Survive and Fluorocarbon High and low friction polymers that save millions when moving structures

Story type: #innovation #diversification Benefits: • New order worth £350,000 • Savings: clamps no longer required, lower insurance costs • Efficiency: 50% faster loading times • Productivity: earlier start-up of wind farms

How is Fluorocarbon thriving?

Responding to an enquiry from E.ON, the company developed a friction pad to be used in a cradle to more securely support monopiles for offshore wind turbines aboard transport vessels. This innovative solution allowed E.ON to save costs and increase efficiency, and opened a new market opportunity for Fluorocarbon.

The challenge

Fluorocarbon received a request from E.ON’s contractor, its first from the offshore wind sector, for a solution that minimised the risk of large monopiles of offshore wind turbines sliding off vessels during transportation. Not only was this a completely different challenge for the company, which specialises in the production of lowfriction polymer products, but it was also an opportunity to get involved in a new sector.

The solution Fluorocarbon already had a diversification strategy in place, so this enquiry didn’t pose any issues for the company. Indeed, most of the company’s business involves low-volume orders for products that are innovative and bespoke to the client’s needs.

Sign theversion EICOnline newsletter This isup an for edited of the case study.

Benefiting from its in-house polymer engineering and blending capability, Fluorocarbon was able to develop the right polymer to meet E.ON’s requirements. As part of a contract worth £350,000, the company supplied new materials for cradles that provide a high-friction surface for the monopiles carried by the transport vessels.

This solution generated operational and economic benefits for E.ON. The new cradle designs incorporating Fluorocarbon’s FL491 material led to faster loading times compared to the previous clamping method and, consequently, sped up the project by allowing an increased number of journeys from the port to the project site. In addition to lower vessel rental and insurance costs the simpler clamping was utilised leading to further cost savings.

The cradles also brought safety improvements, as they provide a more stable system that minimises slippage during transport. Ultimately, the efficiency gains provided by the polymer cradles allowed E.ON to start operations at the wind farm on schedule bringing in profits from electricity revenues.

Fluorocarbon is now marketing its FL491 material for cradles to OEMs, initially for offshore wind farms and is also targeting further diversification through collaborations in the subsea sector.

Download the full Survive and Thrive Insight Report at: Visit www.the-eic.com/Forms/NewsletterSignup www.the-eic.com/Publications/MarketIntelligenceReports

Key findings: For the industry: • Companies should keep their network of contacts active, as you never know when they might help diversification • An entrepreneurial approach is essential to be able to grasp new opportunities when they come • A positive mindset towards diversification and innovation positions a company better to listen, adapt and respond to new customers bringing new questions For the government: • Support SMEs with R&D funding • Maximise opportunities for UK supply from the large and lucrative UK offshore wind market Government support?

Fluorocarbon has not received any government support Fluorocarbon at a glance Key products and services: polymer products Main sector(s) served: oil and gas Headquarters: Hertford, UK Year established: 1962 Number of employees: 450 (100 in the UK) Revenue: £25-30m (2016)

Our long-term customer service and ability to react rapidly to customers’ requirements means we are often called upon to provide new and innovative solutions.

Tom Savage,Join the EIC LinkedIn Group Follow @TheEICEnergy Director and General Manager

20

EIC Survive and thrive

GPT End-user approved, fire-safe flange isolation systems for oil and gas applications

How is GPT thriving?

GPT decided to innovate to maintain its leading position in the market with an enhanced product and a trusted advisor approach to the world’s largest oil and gas operators.

The challenge

GPT, having lost a key product patent a few years ago, found itself competing with low-cost suppliers as well as companies which marketed imitation products. This put the company in a challenging position, especially considering the downturn of the oil and gas industry in recent years.

The solution

In a bid to maintain market leadership, GPT started developing innovations to its products to block low-cost entrants. One of these innovations was the introduction of Fire Safe isolating gaskets which in the event of a fire would not fail and allow media to leak from the flanges. This solution is marketed through live demonstrations (which guarantee the product’s wow factor) and partners well with their new trusted advisor approach to customers. GPT’s marketing strategy involved liaising with end-users (who can specify GPT products and make them the preferred option in tenders) as well as EPC contractors.

The company has established partnerships with two key distributors in Europe (Klinger in the UK and ERIKS in the Netherlands). These relationships have yielded positive sales of their fire safe options particularly in the North Sea and also Kazakhstan.

In addition to its trusted advisor approach, GPT now plans to look to end-user insurers to prove that the use of its Fire Safe innovation leads to a reduction in risk and increased safety, thus offering savings on insurance premiums for end-users.

The company continues to develop new innovations, ensuring that the relevant patents are protected.

About GPT

GPT is a division of EnPro Industries, USA and is the world’s leading manufacturer of critical pipeline sealing and electrical isolation products. The company serves the oil and gas, petrochemical, waste/ wastewater, construction and infrastructure industries.

With products approved and preferred by end-users such as ADMAOPCO, BP, Saudi Aramco and Shell.

GPT’s products protect assets from corrosion and people from harm.

GPT was formed in 2011 following the combination of two EnPro businesses: Pipeline Seal & Insulator (PSI) and Pikotek.

Get inan touch your news and views...

This is editedShare version of the case study.

Download the full Survive and Thrive Insight Report at: 8600 Email newsdesk@the-eic.com • Phone +44 (0)20 7091 www.the-eic.com/Publications/MarketIntelligenceReports

Story type: #innovation Benefits: • The new Fire Safe offering assists end users in keeping their facilities and employees safe in the event of a fire within hazardous locations Key findings: For the industry: • Securing trusted advisor status with end-users boosts product value and supplants low-end competition • Technology companies must retain a healthy pipeline of innovations and patents For the government: • Work harder to make sure all SMEs are aware of services that are freely available, and their benefits Government support?

GPT has not received any government support GPT at a glance Key products and services: flange isolation kits Main sector(s) served: oil and gas (upstream, midstream and downstream segments) Headquarters: St Neots, UK (GPT UK) Year established: 2011 Number of employees and revenue: UK: 20 employees (£5m) Denver: 100 employees (US$35m) Houston: 30 employees (US$15m)

With GPT’s increased focus on marketing, promoting and demonstrating its Fire Safe system, GPT achieved an increase in sales from 2015 to 2016 of 61%. As well as improving the safety of facilities the Fire Safe system has the potential to reduce end-users’ insurance premiums.

Robert Colton, Business Manager and Director, Europe, Middle East and Africa

EIC Survive and thrive

Hayward Tyler Optimisation and future proofing through its new Centre of Excellence

Story type: #optimisation #collaboration Benefits: • Plant efficiency: >30% increase • Increased order book due to collaboration with OEM partners: >£10m

How is Hayward Tyler thriving?

In August 2016 Hayward Tyler welcomed Prince William and Kate, the Duke and Duchess of Cambridge, to open its newly opened Centre of Excellence (CoE), focused on the design, manufacture, assembly and test of performance-critical motors and pumps. At the heart of its CoE are state-of-the-art business systems, tooling, simulation and testing capabilities, combined with a dynamic business culture built around Kaizen philosophies. The optimised plant efficiency (which has improved by over 30%) has further increased Hayward Tyler’s competitiveness and also resulted in Hayward Tyler winning the prestigious ‘Smart Factory of the Year’ in the UK’s Manufacturer MX Awards.

The challenge

Hayward Tyler sells and operates in the global energy market including power generation, oil and gas and nuclear. Looking at the long term positive trends driven by an ever increasing demand for energy from a growing global population, Hayward Tyler recognised that despite a decline in the oil price and its negative impact on the whole sector it was going to have to invest in its capability, technology and people in order to remain competitive over the longer term in its global markets.

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The solution Hayward Tyler chose to underpin its main centre for OEM in the UK by embarking on its biggest investment in over 50 years. Its new CoE, a state-ofthe-art facility focused on performancecritical induction and permanent magnet motors and associated pumps is also perfectly positioned for nuclear related work building on its existing nuclear pedigree and work in the demanding subsea sector.

The CoE is not just about the building, plant and machinery, but also about efficiency, standardisation and developing the company culture of continuous improvement. Hayward Tyler has developed an innovative business management system which allows the company’s commercial group to be intimately linked to its operations group, a truly seamless advanced marketing, sales and operational planning tool.

Hayward Tyler’s enhanced capabilities have enabled it to agree a global subsea production alliance with TechnipFMC and with Ebara, one of Japan’s leading global pump companies, to supply boiler circulating pumps to support Japan’s new coal fired power stations.

Hayward Tyler is now focused on forging new partnerships as a differentiating factor against competitors, and further optimising its processes.

Download the full Survive and Thrive Insight Report at: Visit www.the-eic.com/Forms/NewsletterSignup www.the-eic.com/Publications/MarketIntelligenceReports

Key findings: For the industry: • 100% commitment to partnerships can yield great results; avoid tentative partnerships that are more likely to fail and distract • It’s never too late to innovate in business systems • It’s never too late to set a new standard in operations – through CoEs • Government support does not guarantee fast orders Government support?

• Grants from the Scottish Development Agency for plant optimisation in East Kilbride • Funding from CNSIG for the Fit For Nuclear (F4N) programme • Support from the Regional Growth Fund for the Centre of Excellence Hayward Tyler at a glance Key products and services: specialist motors and pumps Main sector(s) served: power generation, oil and gas, chemical refinement and processing, nuclear Headquarters: Luton, UK Year established: 1815 Number of employees: 540 in the HT Group (200 in Luton) Revenue: £65m+

The Centre of Excellence is our catalyst to focus on future growth by transforming existing technologies, innovating new ones, developing new products and solutions, and generating new ideas.

Follow @TheEICEnergy Join theCEO EIC LinkedIn Group Ewan Lloyd-Baker,

21

22

Spotlight on technology TÜV Rheinland

www.tuv.com

MANUS-T AND MANUS-M

TÜV Rheinland is a global leader in independent inspection services, founded more than 140 years ago.

The group’s independent experts stand for quality and safety for people, technology and the environment in nearly all aspects of life.

TÜV Rheinland inspects technical equipment, products and services, oversees projects, helps to shape processes and information security for companies employing a global network of approved labs, testing and education centres.

Using ultrasound to detect corrosion

Corrosion is still the biggest cause of damage to industrial pipes, tanks and other containers today. It is therefore vitally important to regularly inspect metals for signs of corrosion damage. To that end Markus Trutschel and Daniel Regel, physicist and electrical engineer, respectively, at TÜV Rheinland, have developed a new technology based on the use of ultrasound. Two robust devices, ManUS-T and ManUS-M, use ultrasound to record quantitative data enabling a computer-based determination of the service life of containers or pipes.

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Email newsdesk@the-eic.com edward.white@the-eic.com • Phone • Phone +44+44 (0)20 (0)20 7091 7091 8600 8600

Data collection twice as fast

When the highly manoeuvrable ManUS-T crawls over the floor of the tank, for example, it not only saves on personnel costs but works twice as quickly and, in passing, also collects status data. The smaller ManUS-M is equipped with magnetic wheels which enables it to glide up and down all ferritic steels. With ManUS-M the costs for scaffolding are now a thing of the past. Ultrasonic tests can be performed at heights of up to 25 metres or 25 metres from the inspector’s position.

Weld inspection

In addition to corrosion testing, the inspection of welds is also possible with this device, which is equipped with a line laser enabling precise alignment along the welds.

Calculating future repair work

The development of these new devices enables TÜV Rheinland to offer information about the state of industrial components at a highly competitive price. In addition, thanks to localised records, the data can be compared easily during periodic inspections, and consequently the future development of potential damage can be more effectively calculated.

23

BO

EIC training

O NO KI W NG Contracts: why they matter and how to use them to your advantage Although contracts define all business relationships, their importance is often underestimated and misunderstood.

Huge sums of money can be lost by failing to follow the provisions of a contract. Understanding contracts better is a key part of managing risk and working profitably. This course will help you to do that.

About this course

Contracts: why they matter and how to use them to your advantage Tuesday 31 October 2017 Addleshaw Goddard LLP Milton Gate, 60 Chiswell Street, London EC1Y 4AG Understand what contracts are, their function, purpose and why they are important. Learn how to draft and structure valuable contracts while avoiding common pitfalls. Be aware of various contract types and how to use them to your advantage, maximise recovery while managing risk.

Suitable for Directors, managers, engineers, sales professionals, finance personnel and anyone who wants a better understanding of contracts and how to use them to their advantage.

Bidding to Win: how to beat the competition without cutting prices Thursday 16 November 2017 Rothera Group, EIC London This course focuses on key concepts from careful evaluation and incorporation of customer requirements to successful management of the entire bid process.

You will learn useful techniques to justify higher pricing and ensure your proposal beats your competitors.

Suitable for Directors, managers, engineers, sales professionals, finance personnel and anyone involved with tendering or managing bid teams.

Topics covered • Tender writing using a resource efficient structure • Planning and managing your tender • Incorporating and evaluating customer requirements (gain the competitive advantage) • Using planning tools, compliance matrices and

win themes • Managing the bid production process • Re-using material without compromising quality

© 2003-2017 Shutterstock, Inc

Topics covered • Contract types • Contract formation • Drafting a contract • Using best practice • Common mistakes and how to avoid them • Using the contract to manage risks and avoid disputes

Upcoming course

Our training courses are also available in-house.

Sign If youup would for the likeEICOnline to find out newsletter more about our training programme please contact Emily Light at Visit Emailwww.the-eic.com/Forms/NewsletterSignup training@the-eic.com • Phone +44 (0)20 7091 8611

Follow @TheEICEnergy

Join the EIC LinkedIn Group

24

Opportunities in Indonesia

EIC Oil & Gas 2017 1 November • City Plaza P9 • Jakarta • Indonesia

Hear project updates and meet with representatives from 15 major regional operators and contractors including BP, Pertamina, Saipem

Keynote speakers include HE Arcandra Tahar, Deputy Minister of Energy, Indonesian Ministry of Energy and Mineral Resources Dr Ego Syahrial, Director-General of Oil and Gas, Indonesian Ministry of Energy and Mineral Resources HE Moazzam Malik, UK Ambassador to Indonesia In partnership with

Supported by

Sponsorship and delegate enquiries

Email dhena.doraisamy@the-eic.com • Phone +603 2725 3600

£1 T £2 99 IC 99 (E K (n IC E on m T m em S em be be rs) rs )

To book your place or to find out about sponsorship opportunities visit www.the-eic.com/EICConnect/EICOilGasIndonesia.aspx

25 25

Asia Pacific news Regional update

Malaysia is seeing a slight increase in upstream oil and gas projects recently after a long hiatus of no projects being announced.

Azman The most notable project Nasir is the Petronas Bokor Phase 3 project which has been awarded to Malaysian Marine Heavy Engineering and Brooke Dockyard for the engineering, procurement and construction of a central processing platform, wellhead platforms and associated facilities. The US$235m project is due for completion in the middle of 2020 and first steel is scheduled to be cut by the third quarter of 2018.

Activity is also picking up in Vietnam, mainly due to the Block B gas field. The owner of the field, Petrovietnam subsidiary, Phu Quoc Operating Company, is planning to build a central processing platform and several wellhead platforms together with a 430km pipeline connecting the gas fields to Kien Gang province and Can Tho city.

Petrovietnam subsidiary, PV Gas, is developing the gas pipeline in collaboration with Japan’s Misui and Thailand’s PTTEP. Can Tho city is set to have a large gas distribution plant together with two power plants with combined capacity of 3,660MW. PV Gas plans to invest a total of US$4.5bn in 15 major projects from 2017-21.

The final preparations are underway for EIC Oil & Gas Indonesia to be held on 1 November 2017 in Jakarta.

We are co-hosting this major event with Indonesia’s oil and gas regulator, SKK MIGAS and the UK’s Department for International Trade. A total of 200 companies are expected to participate in this event which will be officiated by Indonesia’s Energy Minister HE Ignasius Jonan.

Twenty-five major players from the Indonesian oil and gas industry including operators and contractors such as BP Indonesia, Chevron, CNOOC, Pertamina, Saipem Indonesia, Shell Indonesia and Total are expected to give short presentations on their respective supply chain requirements.

Sponsorship opportunities are still available for member companies wishing to make the most of the branding opportunities offered by this unique event. For further details please visit www.the-eic.com/EICConnect/ EICOilGasIndonesia.aspx Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter

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B NOOO WK

Business Opportunities in Indonesia

1 November • City Plaza P9 • Jakarta • Indonesia

Regional news

Victoria first Australian state to enshrine renewable energy targets in law Australia’s Victoria state has set an ambitious renewable energy target of 40% by 2025 which will be enshrined in law. The government aims to build 650MW of new renewable energy projects.

Superblock to invest up to US$600m in renewables

Thailand’s Superblock PCL, one of South East Asia’s biggest renewable energy producers, plans to spend up to US$600m per year on expansion at home and abroad to tap rising demand for green energy. Part of the financing is already earmarked, to develop six wind power projects in Vietnam with a combined capacity of 700MW.

Indian Oil to invest over US$4bn on petrochemical expansion

With the growing demand for petrochemicals, particularly polymers and plastics, Indian Oil plans to invest over US$4bn in petrochemical projects. These include a revamp of existing capacities, new projects for production of mono ethylene glycol, purified terephthalic acid and petcoke gasification at Paradip, value addition in the C4 and C5 streams at Panipat and a polypropylene unit at Barauni.

EIC Newsbriefs membership@the-eic.com Keeping you up to date with energy news from around theJoin world Follow @TheEICEnergy the EIC LinkedIn Group

26

Middle East news Regional update The diplomatic schism between Qatar and its GCC neighbours Saudi Arabia, Bahrain and the UAE plus Egypt, continues to drag on.

Regional news

Terry W illis

From the outset, the Iranian government has voiced its full support for Qatar and very recently, full diplomatic relations were restored between the two countries.

One conciliatory move was made by Saudi Arabia when they reopened their land border to allow Qatari pilgrims to perform Haj. The Haj is a major pillar of the Muslim faith and this gesture did not go unnoticed by all the parties involved with the dispute. We will continue to report on this issue as it is affecting members if only because of the current travel restrictions that remain in place.

We have a couple of dates for your calendar. The first is 12 December which will see us offering a Christmas themed business lunch, where we will be hosted by Petrofac. More details to follow. The other is a date for EIC Connect UAE 2018 which will again be in Abu Dhabi, at the Dusit Thani Hotel on 17 April.

Coming to delegations, it has been disappointing that we were unable to confirm our planned visit to Iran. The same is true of our Gulf Tour – due to lack of uptake we’ve had to postpone it. There is, however, some good news. The visit to Uganda in November will definitely go ahead and there are places available. See the EIC website for more details.

Now the world’s premier oil and gas conference and exhibition, ADIPEC has become a ‘must do’ event for anybody wishing to engage with the global oil and gas community. Once again, the EIC is managing the UK pavilion which will showcase a group of over 50 companies. The action gets under way on 13 November.

Finally, if there are any member companies who are seriously considering setting up here in Dubai, then please be aware that we have an incubator serviced office available. Again, please contact us if you would like more information.

Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com

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Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Egypt and Russia sign nuclear agreement

Russia has signed a deal with Egypt to help finance the country’s first nuclear power plant at Dabaa, 130km north-west of Cairo on the Mediterranean coast. The deal was signed after Egypt’s President Abdel-Fattah Al-Sisi met with Russian President Vladimir Putin during an economic summit in China. In 2015, Russia agreed to build the four-reactor nuclear power plant with a capacity of 4.8GW. A Russian loan of US$25bn will be used to cover 85% of the costs.

The financing agreement came after two years of negotiations.

Masdar awards Oman wind farm construction contract

A consortium of GE and Spain’s TSK has won the construction contract to build a 50MW wind project in Oman for Abu Dhabi’s renewable energy company Masdar. The project, located in southern Oman, will consist of 13 wind turbines supplied by GE. Masdar signed an agreement with the Rural Areas Electricity Company of Oman to develop the project in 2014.

The wind farm will be the first large-scale wind project in the GCC.

Forthcoming events

Please go to page 14 to see upcoming events in your region

27

North and Central America news Regional update

This month, we launch the inaugural edition of EIC Connect Oil & Gas USA in Houston. On 3 October, key operators and contractors, including Bechtel, BP and Shell, will Amand a Duho n provide an overview of opportunities across the region and inform delegates how the energy supply chain must adapt to ensure they can survive and thrive in the new world energy context. We very much look forward to welcoming you all to the event.

With the second quarter of the year coming to a close, we would like to highlight the invaluable opportunities in the North and Central America region. To emphasise these opportunities, particularly in Mexico, we hosted a Regional Showcase: Doing Business in Mexico event on 9 August 2017. With more than 60 delegates and speakers in attendance, the regional showcase was launched to provide members and nonmembers current and future supply chain and project opportunities with operators and contractors, and offer guidance on how to do business across the energy space in Mexico. We would like to thank EIC member, Eaton, for its hospitality in hosting our group at their Experience Center in Houston.

The EIC North and Central America office is situated in the heart of Houston’s energy corridor, at the centre of global energy project decision making.

We currently have three office suites available, as well as virtual and hot desk services. If you are interested in finding out more about EICLaunchPad, or booking a hot desk and/or conference facilities at the EIC North and Central America office in Houston, please contact natalia.bueno@the-eic.com Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com

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Regional news

First regionwide US Gulf lease sale dominated by supermajors

Supermajors Chevron Corp and Royal Dutch Shell lead the US Bureau of Ocean Energy Management’s first regionwide US Gulf of Mexico lease sale, both in bidding activity and for the total dollar amount bid.

The auction attracted 27 who placed 99 bids totalling US$121m on 90 blocks. Chevron was the highest spender with its 15 bids totalling US$28m. Shell followed with 19 bids at US$25m. The single highest bid, US$12.1m, came from Total E&P USA Inc, with the second and third placed by ExxonMobil Corp at US$10.8 and US$5.7m respectively. Anadarko submitted 10 bids for a total of US$10.6m. Additional participants included: Apache Deepwater, BP Exploration & Production, LLOG Bluewater Holdings, LLOG Exploration Offshore and Statoil Gulf of Mexico.

Duke Energy aims for 500MW of wind capacity

Duke Energy has issued a request for proposals to bring 100-500MW of wind capacity to North and South Carolina. Power generated from new facilities in the Carolinas, or existing facilities outside of the states, is being solicited to help meet a renewable energy mandate unique to North Carolina. Offshore wind capacity is unlikely, given the late September 2017 deadline for proposals.

However, current prospects could include Apex Clean Energy’s planned 300MW Timbermill onshore wind farm and Avangrid’s Amazon onshore wind farm which may soon undergo expansion. Selected providers are expected to begin delivering power by the end of 2022.

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South America news Regional update

The major O&G event this year in South America, OTC Brazil, will take place alongside the Rio Pipeline Conference and Exhibition on 24-26 October in Rio de Janeiro. Promoted by Clariss e Roch IBP (the Brazilian Petroleum, a Gas and Biofuels Institute) Rio Pipeline’s theme is ‘Connecting the Future: Trends and Challenges’ while OTC will focus on ‘Transforming Today to Power: The Solutions of Tomorrow’ and include 180+ high-quality papers, 26 technical sessions, 14 panel sessions and three topical luncheons covering all aspects of offshore exploration and development.

A new law has been approved affecting how Petrobras carries out its procurement and will come into effect next year. Anticipating this change, the EIC Rio office ran a workshop in August to explain more about the new law and its expected impact on the organisation while also

giving an overview on Petrobras’ supply chain structure, which is undergoing major changes, and the company’s registration process. As the event was very successful, the EIC Rio team is planning to run it again during the tradeshows mentioned. Let us know if you want to attend.

Also in August we ran a business presentation with ENGIE Brazil, which took the very positive theme of ‘Let’s Win Business Together’. The key message from Euclides Backes, Chief Procurement Officer and Gabriel Mann, Chief Commercial Officer, was to approach them directly, saying how you can help ENGIE meet its objectives, rather than going through lengthy registration processes. It was a brilliant presentation, which I would like to thank them both for personally, and really well received by all present.

If you need any assistance or advice in the region or for more information about upcoming events, please contact Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com

EIC Business Presentation with ENGIE Brazil

Regional news

Brazilian government to sell controlling share in Eletrobras

The Brazilian government has announced plans to sell its majority stake in Eletrobras, Latin America’s largest power company. The company is highly indebted and the Brazilian authorities expect the sale, estimated at US$7bn, to improve the company’s management and competitiveness. It is understood that two Eletrobras companies, Itaipu Binacional and Eletronuclear, will remain under the government’s control.

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Pre-salt extraction cost at US$8/barrel

Petrobras has managed to reduce lifting costs in the presalt area by 10% over the past two years, achieving US$8 per barrel this year. Pre-salt is a high priority for Petrobras and 66% of the company’s E&P investment plan for 201721 is dedicated to the exploration and development of pre-salt fields. Key charter contracts for the Libra, Sépia and Búzios fields are being bid for this quarter.

Forthcoming Events

Please go to page 14 to see upcoming events in your region

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