Inside Energy April 2020

EIC Inside Monthly news for EIC members April 2020

Guest editorial

Sector analysis

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Interconnection opportunities within the energy transition

Colin Lightbody from Proserv says producers need to address inadequate metering strategies

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Sector analysis

Staying connected: interconnection

opportunities within the energy transition

Within the discussion of the energy transition and growth in renewable energy capacity, one topic that is easily missed is that of cross-border electricity supply or interconnectors. Advocates have long highlighted the many benefits and crucial role that sufficient transmission capacity in general and interconnectors specifically can play in supporting the integration of intermittent renewable sources, promoting security of supply and exploiting various energy sources across neighbouring countries.

Europe interconnector overview

Lara J

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Currently under construction are the 1GW HVDC Interconnexion France-Angleterre 2 (IFA2) project, the 1GW UK-France ElecLink interconnection as well as the 720km, 1.4GW HVDC interconnector North Sea Link between the UK and Norway. Final procurement activities are also underway for the Viking Link to Denmark that will have a 1.4GW capacity and overall length of 760km.

At the time of writing, construction works were due to begin in summer 2020. In 2018, interconnectors were responsible for up to 6% of the UK’s electricity supply.

In January 2020, the number had increased to 8.22%.

While the UK’s decision to leave the European Union has led to a certain degree of uncertainty in the development of interconnector projects, their essential role in supporting grid management has led to an acknowledgement in the UK’s ‘The Future Relationship with the EU’ statement as part of the government’s approach to Brexit negotiations.

The statement indicates that preparations have been made to ensure that electricity will continue to be traded across interconnectors with the European mainland from 1 January 2021 onwards and that a potential energy agreement between the UK and the EU could include further facilitation of cross-border electricity trade, technical collaboration and the promotion of renewable energy integration and decarbonisation in the North Sea.

The European Union is currently pursuing a 10% interconnection capacity target by 2020, with a proposed increase to 15% by 2030. The interconnection capacity herein refers every country having the necessary transmission infrastructure in place to enable at least 10% of electricity generation by domestic power plants to be transported across borders. While only 17 out of 28 countries are reported to have achieved this target or be on track, interconnection projects continue to feature prominently on the EU’s Projects of Common Interest (PCI) list that enables them to secure funding and regulatory support. A current project example under development is the EuroAsia Interconnector, an up to 1,500km 2GW transmission link connecting Israel, Cyprus and Greece. New EPCI contract packages for the implementation of the interconnector with an overall value of €1.7 billion were issued in January 2020.

In a 2018 UK National Grid overview of interconnection projects, the TSO highlighted the fact that up to £11 billion in benefits is estimated to be provided to consumers by the approximately 10GW interconnector project pipeline.

Over 5GW of transmission capacity is already operational, with the 1GW Nemo interconnector to Belgium the latest to be commissioned.

It is particularly future developments in the North Sea that promise to elevate the topic of interconnectors and transmission to a new level. With a continued expansion of offshore wind capacity in the region and accelerated efforts to decarbonise the existing oil and gas infrastructure, countries are increasingly pursuing the research and development of hybrid projects and sector coupling.

The North Seas Energy Cooperation (NSEC), comprising Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway and Sweden, is one such example with its focus on promoting crossborder offshore wind and grid hybrid projects. A further example is the North Sea Wind Power Hub (NSWPH), led by TenneT, Energinet, Gasunie and the Port of Rotterdam, with its concept of an offshore energy hub of offshore wind, interconnectors and substations as well as green hydrogen production via electrolysis.

Both examples offer an indication of the significant potential in technical and commercial collaboration on interconnections and ‘staying connected’.

Lara Juergens, Energy Analyst lara.juergens@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 EIC (Energy Industries Council)

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Inside this issue...

As we enter challenging times EIC will continue to support our members and their businesses during these uncertain times.

Due to the current outbreak of COVID-19, we Lucy C hakao dza are due to launch a series of EIC LIVE e-vents bringing our events calendar directly to the online world, allowing us to continue to share advice, project opportunities and market updates from around the world.

In our first webinar we invite you to join us to hear from the EIC’s market intelligence team who will give an overview of the current state of play in the global oil and gas market during COVID-19. Our energy analysts Diveena Danabalan and Tayo Idowu will give an update on the near and longer-term prospects for the upstream, midstream and downstream sectors. To book visit https://www.the-eic.com/EventDetail?dateid=2729 This month we introduce our new Gulf of Mexico EICAssetMap. EIC’s operations and maintenance (O&M) database currently maps all major facilities across all energy sectors in the UK, Norway, Brazil, ASEAN and GCC states.

This fully interactive map database is updated daily with information about existing facilities and the key contacts at these facilities so you can find out who to do business with and contact them. EICAssetMap is the only O&M database to map major energy assets across all sectors in key markets in the Gulf of Mexico.

In our sector analysis, EIC Energy Analyst, Lara Juergens, explores the energy transition and growth in renewable energy capacity. One topic that is easily missed is that of cross-border electricity supply or interconnectors, says Lara. She goes on to highlight the role advocates have played in highlighting the many benefits and crucial part sufficient transmission capacity and interconnectors specifically, occupy in supporting the integration of intermittent renewable sources.

In this months’ guest editorial, we hear from Colin Lightbody, technology manager at Proserv Controls, who states global operators need to measure and producers need to address inadequate metering strategies. He further argues the effective measurement of flared gas, produced water, fuel gas and real-time production levels, as just a few examples, are crucial for an operator to meet locally enforced emissions legislation.

Best wishes and please stay safe.

Lucy Chakaodza, Editor, Media and Communications Manager lucy.chakaodza@the-eic.com

Contents Sector analysis

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Inside this issue...

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EICDataStream 4 New EIC members Member news

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Social media round up 13 Forthcoming events

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Guest editorial

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Guest editorial

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UK and Europe news 19 Middle East news

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Asia Pacific news

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North America news

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South America news 23 Sign for the EICOnline newsletter Get inup touch Share your news and views...

Visit www.the-eic.com/Forms/NewsletterSignup Please contact lucy.chakaodza@the-eic.com

@TheEICEnergy

EIC (Energy Industries Council)

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DataStream MALAYSIA

Global opportunities SAUDI ARABIA

UK

Pengerang Energy Complex

Jafurah Pipeline Packages

Marigold Cluster Development

Operator: ChemOne Value: US$3.4bn ChemOne Group has recently announced the development of the project. Maire Tecnimont has been appointed as the EPCC contractor for the project. ChemOne announced that the project is receiving support from UKEF.

Operator: Saudi Aramco Value: US$1.5bn Saudi Aramco is looking to start the tendering process for two EPC pipeline packages to link Jafurah gas plant with existing infrastructure at South Ghawar. Each package is expected to be worth in excess of $750m.

Operator: Hibiscus Petroleum Value: US$300m Project financing is scheduled to be finalised by the end of Q2 2020.

FEED was expected to be awarded at the end of February, while the EPCIC contract for the SURF package is due for award in Q3 2020.

For more information on these and the 9,000 other current and future projects we are tracking please visit EICDataStream

i INDIA

IRELAND

MOZAMBIQUE

Maharashtra Solar Wind Hybrid

Offshore Wind Demonstration Project

Temane Transmission Project (Phase 1)

Operator: Rosepetal Solar Energy Private Limited Value: US$700m Construction of a 700MW solarwind hybrid project in the State of Maharashtra. Adani Electricity Mumbai Ltd has awarded the project to Rosepetal Solar Energy which includes a ‘green shoe option’ for an additional 350MW hybrid power project.

Operator: Statkraft Value: US$85m Development of a 500MW offshore wind farm, consisting of up to 40 turbines.

A licence application to conduct site investigations at the project zone has been submitted. Subject to approval, activities will commence in summer 2020 with the overall programme to be concluded in 2024.

Operator: Electricidade de Moçambique (EdM) Value: US$550m Transmission line from Temana to Vilanculos to Maputo. Tenders issued to design, supply and construct the 340km, 400kV line; the 176km, 400kV lines connecting Chibuto and Matalane substations; and the 43km, 400kV line between Matalane and Maputo.

SupplyMap The only database of UK supply chain companies across all energy sectors Need ayour demonstration of EICDataStream?

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

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AssetMap

EICAssetMap Gulf of Mexico Join us

Track all major OPEX assets and facilities in key global markets including the Gulf of Mexico EICAssetMap, the EIC’s operations and maintenance (O&M) database, now maps all major facilities across all energy sectors in the UK, Norway, Brazil, Gulf of Mexico and the ASEAN and GCC states.

This fully interactive map database is updated daily with information about existing facilities and the key contacts at these facilities so you can find out who to do business with and contact them.

EICAssetMap is the only O&M database to map major energy assets across all sectors in key markets in the Gulf of Mexico, both onshore and offshore.

key energy markets around the world in all energy sectors to find new O&M business opportunities Search for operational assets in

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New EIC members NEW GLOBAL MEMBER

Aquaterra Energy Ltd Innovation House Alkmaar Way Norwich NR6 6BF The Nominated Representative is Ms Louise Thompson, Head of Marketing Telephone +44 (0)1603 788 233

NEW GLOBAL AMERICAS MEMBER

Audubon Companies 10205 Westheimer Road Ste 100 Houston TX 77042 The Nominated Representative is Ms Sandra Ellerbe, Director of Audubon Inspection Solutions

NEW UK MEMBER

Gexcon UK Ltd 831 Birchwood Boulevard Birchwood Warrington WA3 7QZ The Nominated Representative is Mr Chris Coffey, Global FLACS Product & Strategic Business Development Manager

Telephone +1 281 669 0590

Telephone +44 (0)1925 202 430

Email louisethompson@ aquaterraenergy.com

Email sellerbe@auduboncompanies.com

Email chris.coffey@gexcon.com

Web www.aquaterraenergy.com

Web www.auduboncompanies.com

Web www.gexcon.com/uk

From seabed to surface, Aquaterra Energy is one of the first choices for offshore engineering-led products and services that safely deliver operation improvements, efficiency gains and low total cost of ownership across the entire project lifecycle.

Audubon Companies is a leading EPC, consulting, fabrication and technical services company supporting the energy, power and industrial markets. For over two decades it has built a reputation for helping companies tackle some of the most pressing challenges facing the energy and industrial sectors.

Gexcon is a world-leader in the field of safety and risk management, especially advanced dispersion, explosion and fire modelling.

Aquaterra Energy provides a complete range of offshore engineering services to support operators, service companies and rigs. Its products and services include offshore structures, riser systems, riser analysis and Well Start and Aquaterra Express service solutions. They are all designed to meet customers’ needs across the full lifecycle of each and every project.

Expert riser and conductor analysis services verify and optimise your system design and Aquaterra Energy works closely with customers on projects to interpret and implement findings effectively. It offers complete and comprehensive support for the crucial first days of drilling while its Well Start products offer vital support around interfaces, equipment and handling.

It combines and integrates seabed to surface products and services to bring cost savings and technical benefits.

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Leveraging its values, experience and capabilities, Audubon Companies has evolved into a global leader recognised for reliability, flexibility and its strong execution track-record. Together with five affiliates – Audubon Engineering Solutions, Audubon Field Solutions, Audubon Inspection Solutions, Opero Energy and Affinity – Audubon Companies delivers repeatable project success, safely, on-schedule and within budget.

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

Widely known for its detailed knowledge of explosion phenomena, Gexcon draws on more than 40 years of research, safety assessments, high profile incident investigations and physical testing to help manage risks from complex hazards.

Gexcon’s experienced engineers and recognised experts work alongside safety engineers, procurement, operations and health and safety teams to provide risk and safety management support for every stage of the asset life cycle, from design and installation to operations and decommissioning.

Gexcon also promotes, licences, develops and maintains a range of software products for the modelling of gas dispersion, fires, explosions and the management of associated risks.

New EIC members

NEW PRIMARY EUROPE MEMBER

Indra Srl

NEW UK MEMBER

NEW GLOBAL MEMBER

Nidec Industrial Solutions

Optilan (UK) Ltd

Stafford Park 4 Telford TF3 3BA

Stonebridge Trading Estate Sibree Road Coventry CV3 4FD

The Nominated Representative is Ms Sara Castiglioni, Area Sales Manager

The Nominated Representative is Mr Dave Taylor, Automation Solutions Manager

The Nominated Representative is Ms Georgia Clements, Business Support Administrator

Telephone +39 02 9729 8663

Telephone +44 (0)1952 213 729

Telephone +44 (0)1926 864 999

Email s.castiglioni@indra.it

Email dave.taylor@nidec-industrial.com

Email gclements@optilan.com

Web www.indra.it

Web www.nidec-industrial.com

Web www.optilan.com

Indra is at the forefront in designing and manufacturing new concept instrumentation valves: ball valves, SBB and DBB valves, monoflanges, manifolds, needle valves and interlocking manifold SIL 4 for HIPPS systems.

Nidec Industrial Solutions delivers comprehensive electrical and automation solutions that increase plant processing productivity and improve the reliability and efficiency of the entire system, from power generation, to medium and low voltage drives and motors to automation and control.

Optilan is a UK based organisation providing communications and security services with regional support offices in Russia, Azerbaijan, India, the Middle East and Turkey.

Via Novara 10/B-C Magenta Milano 20013

For more than 30 years, Indra has operated according to the most stringent safety and efficiency quality standards. The company is characterised by ‘Made in Italy’ and by the monitoring of all production steps, from engineering to construction.

Experience and flexibility allow Indra to develop customised solutions designed to customers’ specific needs.

Indra products are mainly used in the oil and gas, petrochemical, chemical, power and LNG sectors.

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In the renewable energy sector, Nidec’s solutions maximise stable power supply from renewable energy sources including solar, wind, hydro, biomass, and battery energy storage systems (BESS).

With important consolidated references Nidec is the supplier of choice for turn-key solutions and power conversion systems for renewable energy. Nidec is also the ideal partner for the design and installation of smart microgrids, whether on or off-grid, for rural electrification as well as large scale commercial and industrial applications.

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

Optilan can provide telecoms and transport services to meet your mission-critical requirements.

Optilan has delivered various projects in the transport sector assisting in providing underground and over ground solutions. Optilan put in place various measures to ensure that oil and gas transport lines operate with as little damage and environmental impact as possible while still being economic.

Optilan also has many years of experience in providing solutions to protect critical infrastructure across a wide range of industries worldwide, including oil and gas, utilities and rail.

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EIC (Energy Industries Council)

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New EIC members

NEW GLOBAL EUROPEAN MEMBER

NEW UK MEMBER

NEW GLOBAL MEMBER

Quanta

Torquemeters Ltd

16 Abercrombie Court Arnhall Business Park Westhill, Aberdeen AB32 6FE

West Haddon Road Ravensthorpe Northampton NN4 9XS

The Nominated Representative is Mr Stuart McIntosh, Regional Manager

The Nominated Representative is Mr Craig Holmes, Business Development Manager

The Nominated Representative is Mr Tom Pashley, Business Development Director

Telephone +44 (0)1224 539 506

Telephone +44 (0)1604 770 232

Telephone +43 3352 33524

Email stuart.mcintosh@ quanta-epc.co.uk

Email cholmes@torquemeters.com

Email tom.pashley@ungersteel.com

Web www.quanta-epc.co.uk

Web www.torquemeters.com

Web www.ungersteel.com

With a history spanning over 30 years, Quanta is known as a leading provider of engineering, procurement and construction services to the onshore, offshore and power industries and infrastructure. It provides end to end services to cover the full life cycle of client’s assets from concept to decommissioning. Quanta’s organisation is structured in a way which allows it to quickly respond to both smaller, quick-turnaround scopes and to effectively carry out large scale multi-disciplined projects.

Torquemeters is a global leader in the design and manufacture of high performance test and measurement systems for the turbo machinery market.

Unger Steel Group is an independent structural steelwork contractor headquartered in Oberwart, Austria. The group has facilities in Europe and the UAE that provide engineering, fabrication and erection services across global petrochemical and heavy industrial projects.

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Steinamangerer Str 163 7400 Oberwart Austria

Over 1,500 Torquetronic™ continuous duty torque measurement systems are installed on critical turbomachinery operating in the oil, gas, petrochemical and energy sectors, providing operators with accurate and direct measurement of power for the life cycle of the machine, reducing operating costs and optimising equipment availability.

Users with E-motor driven applications also benefit from real-time torsional vibration monitoring. Functional safe system compliance with SIL2 assessment versions are also available.

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

Strategically located in Sharjah the facility annually fabricates 50,000 tons of competitive pipe rack, equipment and plant structures for export. As a fully integrated steelwork contractor, Unger Steel also offers in-house engineering, painting, galvanizing and logistics to cater for the most demanding of export contracts. With 70 years of steelwork experience, adding value and safe working practices to the supply chain is paramount to Unger Steel’s success.

NEW DATE • NEW DATE • NEW DATE • NEW DATE

ENERGY EXPORTS CONFERENCE Access $500bn of global opportunities P&J Live at TECA Aberdeen / 20-21 OCTOBER

2020

With offices in Aberdeen and Newcastle upon Tyne, Quanta delivers high quality outcomes in a proactive and cost-effective way. It invests in building strong client relationships that meet new challenges with confidence, speed and agility. Quanta provides best value through performance measurement, continuous improvement, operational excellence and supply chain partnerships to reduce operational downtime. Each project is specifically tailored to the client’s requirements and Quanta ensures key milestones are met through its comprehensive project tool set. Quanta works collaboratively with its partners to maximise productivity and maintain cost efficiency.

Unger Steel

14-15 September 2020 - SEC GLASGOW

POSTPONED UNTIL 14-15 SEPTEMBER 2020

14-15 September, SEC GLASGOW

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Member news Egyptian operators hit the bullseye with Churchill’s products Churchill Drilling Tools has announced a successful entry to the Egyptian market after a major operator ran a record five Churchill products in its drill-string.

Egypt is just one of a number of new territories that Churchill has penetrated in the last few months following unprecedented operator demand for its stuck pipe solution, the HyPR HoleSaver™.

The success of the HyPR HoleSaver has helped unlock a number of new markets which we see as key to sustaining our rapid growth.

Stewart Macindoe, Sales Director, Churchill Drilling Tools

In 2019, five drilling teams from four major operators across the globe activated the HyPR™. All successfully cut their drill-strings in a matter of hours, a 100% success rate. They also avoided the use of traditional stuck pipe solutions such as explosives or chemicals, which require additional equipment, personnel and logistics. One UAE operator severed its drill-string in a record-breaking 60 minutes.

As a result, operators are increasingly adopting the HyPR as their primary contingency against stuck pipe.

The technology has already been described by clients as ‘revolutionary, ground-breaking’ and a ‘game changer for managing stuck pipe’.

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For more information: www.circsub.com

ENGIE Fabricom implements progressive initiative

One of the UK’s leading engineering and construction specialists – ENGIE Fabricom – has enrolled several of its team members with a skills, standards and qualifications body to stay ahead of the curve in attracting new and highly skilled talent to the business.

Based in Grimsby and with offices in Immingham, Lowestoft, Stokesley and Middlesbrough, the business has engaged with the Engineering Construction Industry Training Board (ECITB) with seven of its staff now enrolled on its Supervisory Management Training and Development (SMTD) programme.

The ECITB is an arms-length body of the UK government, reporting to the Department for Education.

Recognised as a national training provider and awarding federation it is responsible for the development of the UK’s engineering construction workforce.

The SMTD programme has been designed to enhance individual employees’ skills and knowledge of project management and engineering, as well as their competencies in supervision while also providing support in career progression and continued professional development.

The introduction of the initiative follows on and compliments ENGIE Fabricom’s newly implemented apprentice recruitment programme – with the business working in partnership with Middlesbrough College and North Lindsey College – to attract the very best local talent. And this has seen 12 apprentices join the company in the last 18 months.

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The company will be blending mentoring from senior team members for those completing the SMTD course, ensuring that all managers and leaders of the future are properly equipped to lead. Such an approach will enable invaluable knowledge and experience to be shared across the business.

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For more information: www.engie-fabricom.co.uk

HTL wins bronze award for employer recognition scheme

HTL Group is pleased to announce that it has recently been granted the Bronze Award from the Defence Employer Recognition Scheme (ERS) run by the Ministry of Defence.

In 2019 HTL Group welcomed inspirational military personnel from the Phoenix House Personnel Recovery Centre Catterick, North Yorkshire. Following successful visits in the previous two years, HTL opened its doors to provide an insight into civilian working life, explaining how many skills are transferable and greatly assist during the transition from military service to a career outside.

To be awarded the Bronze Award demonstrates HTL’s pledge to support the armed forces, including existing or prospective employees who are members of the community.

A signed Armed Forces Covenant cements HTL’s dedication to promoting being armed forcesfriendly and is open to employing reservists, armed forces veterans, cadet instructors and military spouses/partners.

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For more information: www.htlgroup.com

Member news

Indra – made in Italy

Set up in 1987, Indra is at the forefront of designing and manufacturing new concept instrumentation valves: ball valves, SBB and DBB valves, monoflanges, manifolds, needle valves and interlocking manifold SIL 4 for HIPPS systems, strictly produced to the most stringent quality standards of safety and efficiency.

A product traced in all its phases of production and the certain origin of the materials are fundamental characteristics in critical applications in various industrial sectors.

The experience of understanding application requirements, combined with high flexibility, allows Indra to develop customised solutions designed for customers’ specific needs. Products are machined from standard materials but also from exotic materials used for critical applications (duplex, super duplex, monel etc).

Indra products are intended for plants and machinery of the highest value and technological content.

Hence the need to guarantee the highest quality. For this reason the company has modern machinery for very precise mechanical processing, with testing phases of every single product during the various production steps.

Indra products are widely used in the oil and gas, chemical, petrochemical, offshore, power generation and LNG industries, used as components of plants and machineries with a high commercial and technological value.

Indra is ISO 9001, 14001 e 18001 certified with product certifications for fugitive emission, fire safe and ATEX. The company headquarters is in Magenta – west of Milan – in a 3,000 sq m owned building. Indra is currently setting up its world wide businessnetwork with several local distributors.

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For more information: www.indra.it

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MAN Fluid Monitor ensures the protection of engines during tests at the MAN Saint-Nazaire factory

MAN Energy Solutions launches MAN Fluid Monitor

The MAN Fluid Monitor for lube oil is a light and robust system developed by MAN Energy Solutions to meet the needs of the owners of industrial installations where lube oil quality is a critical setting. It enables owners to actively monitor – on an ongoing basis – the degradation and contamination of lube oil and protect their industrial assets. Already proven in the field, the fluid monitor immediately detects even the tiniest anomalies in the lube-oil systems of four stroke engines, turbomachinery and auxiliary equipment.

MAN Energy Solutions reports that the fluid monitor has recorded over 18,000 test hours on pilot industrial sites, complies with CE standards and has been certified by Bureau Veritas marine applications. It has also received its very first order for thirdparty equipment in the Pacific region.

Arnauld Filancia, Vice President at MAN Energy Solutions, said: ‘We know that lube oil is the life blood of an engine and that 70% of major damage reveals lubeoil contamination. We wanted to develop a global monitoring solution capable of conforming to the demands of all rotating machines – such as four stroke engines, and turbomachinery – and whatever the application, whether it be marine, power plants, or anything else.’

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Filancia added that the innovative system is currently subject to the filing for patent.

Used alongside laboratory analyses, MAN Fluid Monitor for lube oil alerts operators with alarms and stop recommendations as soon as it detects a degradation in lube-oil quality, thereby revealing minor wear of mechanical parts.

This new product is the result of targeted research on the operational security and is part of MAN Energy Solutions’ continuing effort to design easy-to-implement solutions that enhance installation performance and security.

Arnauld Filancia, Vice President, MAN Energy Solutions

Thanks to this swift detection of anomalies, especially important during such sensitive engine phases as restarts where 50% of damage occurs, this solution allows the operator to anticipate maintenance, protect major components, and identify part-wear before breakdown, in the process maximising machine availability.

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For more information: www.man-es.com

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Member news

Subsea controls deals boost Proserv in 2020

Leading controls technology provider Proserv Controls saw several substantial wins for its globally renowned subsea controls team through Q3 and Q4 2019.

Proserv Controls was established as one of two distinct global divisions of the Aberdeen headquartered Proserv Group during 2019, with the other being the Houston based flow control valve developer and manufacturer, Gilmore, a Proserv Company.

In the second half of the year, Proserv Controls’ subsea team snared a very significant deal with a leading US based independent to deliver a complete subsea production control system, featuring both topside and subsea controls, for a tieback in the Gulf of Mexico.

Working alongside the same US client, Proserv will also design, build and test subsea distribution units and a subsea controls module (SCM) for a further development well, also located in the GoM. For both projects, first oil is expected this year and Proserv Controls’ facility in Sommermeyer, Houston will undertake the majority of the work, with the SCMs being built at the team’s state-of-the-art facility in Great Yarmouth, UK. In the North Sea, on the United Kingdom Continental Shelf (UKCS), towards the end of 2019, Proserv earned a further valuable contract from another US based independent to provide the necessary subsea controls equipment, including SCMs, to enable six additional wells on an existing brownfield development.

A technician at one of Proserv’s UK facilities

Sonardyne acquires underwater imaging specialist 2G Robotics

Leading marine technology provider Sonardyne International Ltd has acquired underwater imaging and inspection specialist 2G Robotics Inc. 2G Robotics will join the Sonardyne group of companies, while remaining an independent business and brand, continuing to serve its customer base in unmanned and autonomous underwater vehicles (AUVs) and remotely operated vehicles (ROVs).

2G Robotics’ founder Jason Gillham will continue to lead the company as chief executive officer.

The acquisition of 2G Robotics is the latest step in Sonardyne’s long-term growth strategy and follows the acquisition of Danish survey software company EIVA last year.

John Ramsden, Sonardyne’s managing director, said: ‘2G Robotics has a dedicated research team and well developed product and service lines, with scope for growth. As an independent company, their offering is complementary to the growing range of products and services our wider group of companies provides to the marine sector.’

Jason Gillham added: ‘Sonardyne is a great fit for us, with their existing global reach. We look forward to growing with their support and working with our new partners.’

2G Robotics is based in Ontario, Canada. The company was founded in 2007, and will continue to operate from its current location. The terms of the acquisition, which was for the business and assets of 2G Robotics Inc, were not disclosed.

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For more information: www.sonardyne.com

Meanwhile, in the Norwegian North Sea, the firm earned an agreement in Q4 to supply multiple SCMs for an ongoing brownfield rejuvenation for a European operator, with the first SCM due for delivery in 2022.

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For more information: www.proserv.com

Underwater imaging and inspection specialist 2G Robotics has been acquired by Sonardyne International

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

New EIC members Member news Social media round up

STATS Group bolsters management team

STATS Group has strengthened its management team with the appointment of Garry North as Chief Operating Officer.

With more than 40 years’ experience in the engineering and oil and gas industries, Mr North has held senior operational management roles in Europe, North America and the Middle East.

STATS Group is a market leader in the supply of pressurised pipeline isolation, hot tapping and plugging services to the global oil, gas and petrochemical industries.

Headquartered in Aberdeenshire, UK, the company also has operations in Edmonton in Canada, Houston in the US, Abu Dhabi and Qatar in the Middle East and Kuala Lumpur in Malaysia.

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 – EIC (Energy Industries Council) 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

Stuart Broadley says: This new crisis will test us all, but I’ve learnt to believe in the agility and endurance of our world-class suppliers: bit.ly/2JegUb8

The EIC @TheEICEnergy

The latest EIC Insight Report Global Offshore Wind is out now! Learn about global expansion, opportunities and future expectations for the supply chain: http://bit.ly/3dnCeJd

In addition to energy sector experience, Mr North has held executive positions in the aerospace, defence, petrochemicals and manufacturing industries, where he achieved significant business improvement and increased profitability.

EIC (Energy Industries Council) In light of rapidly evolving global developments the #EEC2020 team has decided to reschedule the event to 20 & 21 October 2020, at P&J Live, Aberdeen

STATS Group recently agreed an exclusive partnership with Safari Oil & Gas, one of Saudi Arabia’s top 50 listed companies, and signed a landmark Memorandum of Understanding to work with Russian partners on Sakhalin-2, the country’s first offshore gas project.

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For more information: www.statsgroup.com

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April 2020

Forthcoming events and 2 April Live e-vents

Focus on Oil & Gas during COVID-19 Webinar

2 April Business Presentation

North America EICDataStream Online

2 April Business Presentation

South America EICDataStream Online

6 April Live e-vents

EIC Member Stories Webinar

7 April Management Course

EICDataStream/AssetMap training Online

8 April Live e-vents

Opportunities with Karoon Webinar

14 April Live e-vents

Making full use of EIC databases Webinar

14 April Live e-vents

Opportunities with Trident Energy Webinar

14 April Live e-vents

Renewables in Indonesia Webinar

15 April Business Presentation

South America EICDataStream EIC Rio de Janeiro

Get in touch Share your news and views...

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

LIVE e-vents The EIC’s new webinars

16 April Business Presentation

North America EICDataStream Online

21 April Overseas Exhibition

International Partnering Forum Virtual Conference Online

21 April Live e-vents

APAC Waste-to-Energy projects Webinar

21 April Management Course

EICDataStream/AssetMap training Online

22 April Live e-vents

Norway Market Update Webinar

27 April Live e-vents

Making full use of EIC databases Webinar

27 April Business Presentation

South America EICDataStream EIC Rio de Janeiro

28 April Live e-vents

Opprtunities in the APAC region Webinar

29 April Live e-vents

Investec SME Virtual Roadshow Webinar

30 April Business Presentation

North America EICDataStream EIC Houston

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

Forthcoming events

9-10 September 2020 • Jakarta

CONNECT May 2020

Energy Indonesia 1 May Live e-vents

12 May Live e-vents

Open Forum: O&M

Focus on Renewables with Siemens

Webinar

Webinar

5 May Live e-vents

12 May Business Presentation

Opportunities in Nuclear

South America EICDataStream

Webinar

EIC Rio de Janeiro

5 May Live e-vents

14 May Business Presentation

Tea Time Talk @4

North America EICDataStream

Webinar

Online

5 May Live e-vents

19 May Live e-vents

Making full use of EIC databases Webinar

6 May Management Course

Webinar

20 May Live e-vents

EICDataStream/AssetMap training Online

Focus on Global Offshore Wind

Tea Time Talk @4 Webinar

NEW DATE • NEW DATE • NEW DATE • NEW DATE

Access $500bn of global opportunities P&J Live at TECA Aberdeen / 20-21 OCTOBER

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2020

ENERGY EXPORTS CONFERENCE

EIC (Energy Industries Council)

15

16

EIC to play central role at the Upstream Digital Transformation Conference 2020 27-28 May, London Optimise your change management strategies to accelerate the essential digital transformation of your upstream oil and gas business

Super Major Eni will present on the effect establishing a dedicated change management team within their digital business unit in 2018 has had on driving their digital transformation.

Digital leaders from operators CEPSA, Wintershall Dea, Tullow Oil, Premier Oil and Pandion Energy will discuss their digital programmes, share lessons from their experiences and present their own change management approaches, as will VPs from service companies Baker Hughes, Schlumberger and Petrofac.

The conference has grown out of a successful programme with a day dedicated to digital transformation at Offshore Network’s OWI EU 19 conference last year and follows several months of research into the topic to make sure it delivers value for all parties involved.

A major priority in upstream oil and gas right now is digital transformation, with an estimated US$1 trillion in potential efficiency savings to be made.

However, change management issues have acted as a limiting factor to drive digital solutions so far.

Finding effective strategies to overcome these change management issues therefore holds the key to achieving the successful digital transformation of upstream oil and gas.

In response to this, Offshore Network has launched a new event in London on 27 and 28 May, focused specifically on finding effective change management strategies to enable successful digital transformation – the Upstream Digital Transformation Conference (UDT EU 2020).

Neil Golding, Head of Oil & Gas and Business Development at EIC, will be chairing a panel discussion on the role of digital transformation in reducing upstream’s carbon footprint.

Get in touch Share your news and views...

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

Reflecting that research, the conference programme has been centred on five key themes: culture change, structure change, improving data, digital skills and industry partnerships.

The event will be attended by more than 200 digital leaders from across upstream, with at least 60% of the audience being made up of operators and service providers. Over 30 expert speakers will deliver the programme and various digital solution providers will be showcasing the work they can do.

There’s the opportunity to engage in debates running parallel to the central agenda, such as how digital transformation relates to reducing upstream’s carbon footprint.

If you are interested in speaking, sponsoring or attending please speak to Charlie Brandon at Offshore Network on +44 (0)203 409 5720 or email cbrandon@offsnet.com To register for the event please visit www.the-eic.com/EventDetailNonEIC?dateid=2711

17

EIC guest editorial

Global operators need to measure up Colin Lightbody, Technology Manager, Measurement, Proserv Controls says producers need to address inadequate metering strategies

When the oil price slump of 2015-16 saw margins nosedive for operators, it ushered in a strategic seachange focused on heightening efficiencies, extending the life of assets and maximising returns. Some experts dubbed it as the ‘new normal’ and as prices gradually rallied over the next few years, such a consistent policy made sense as a means of enhancing profits and hedging against future volatility.

But while column inches, in the wake of the downturn, extolled the merits of joined-up operational excellence programmes, enabling producers to stay on top of potentially costly outages, in reality, huge gaps existed in the maintenance planning of some of the world’s biggest firms, particularly regarding vital metering equipment.

The effective measurement of flared gas, produced water, fuel gas and real-time production levels, as just a few examples, are crucial for an operator to meet locally enforced emissions legislation, to provide accurate data when conducting custody transfers of hydrocarbons from one party to another, and to deliver an efficient operation, following best practice. Significant errors could lead to fines, millions of dollars of lost revenue or, even worse, the overcharging of key clients.

I have carried out gap analysis on metering equipment for oil and gas companies right around the world, and I have seen how some of the industry’s most recognisable names have administered such insufficient measurement management policies that they have been exposed to potential losses of more than US$100 million per annum, simply due to deficient maintenance histories, a lack of documentation, and the poor installation or inaccurate calibration of vital kit.

With few exceptions, many of the larger operators seem to have a disconnect between their production and accurate measurement procedures. Often, their vast daily output obscures awareness of the financial pitfalls of unreliable metering systems.

In oil and gas, a customer pays for what is demonstrably measured, not for what is supposedly produced, so if an operator’s shaky flow meters suggest eight million barrels per day are produced, but in truth, the total is actually closer to nine, then the customer is receiving millions of dollars of free oil. In contrast, a globally respected supermajor could find itself short-changing valued clients if flow meters are over-estimating production levels.

The outlay needed to ensure measurement equipment is effectively monitored and checked is minuscule compared to the sums that could be lost when it is no longer accurate. If a car isn’t serviced regularly, then it is no surprise when tyre treads and brake pads wear down, jeopardising reliability and quality of performance.

There appears to be a clear culture problem around the significance of this critical function. Some operators engage inexperienced staff, perhaps not armed with the necessary skillset, to undertake important calibration work on integral flow meters and transmitters.

The irony is that the same firms will invest sizeable sums in the latest digitalisation advancements and technology to improve the sophistication of their monitoring systems, but if one key flow meter is wrongly calibrated on a major platform, so much of that expenditure could be then wasted, as revenue is needlessly lost through an inadequate measurement strategy.

Senior management at leading producers need to understand that metering is a core revenue-generating function. If they can recognise that the shutdown of a pipeline will hit their bottom line, then so could the readings generated by obsolete, poorly maintained metering equipment.

The push towards greater efficiencies and less wastage was an undoubtedly positive outcome emerging from a challenging industry downturn. Now, as the energy sector finds itself facing strengthening economic headwinds, due to recession fears triggered by a developing global pandemic, and fresh oil price plunges that have already seen margins collapse, there is no better time than the present for operators to bring their measurement technologies and strategies up to speed and tighten up a genuine area of weakness.

Get in touch To be profiled in this section please contact Lucy Chakaodza, EIC Editor, Media and Communications Manager...

Email lucy.chakaodza@the-eic.com

Continuing to invest in EIC members MARKET RESEARCH TEAM ...LOCATED IN EIC’SWORLDWIDE OFFICES

DATABASES

22

12

ANALYSTS

2014

2020

INSIGHT REPORTS

ANALYSTS

2014 1X CAPEX - EICDATASTREAM

2014

3

2020

14

2020 3X CAPEX, OPEX AND SUPPLY CHAIN EICDATASTREAM, EICASSETMAP AND EICSUPPLYMAP EICSupplyMap is our brand new, members only, database that tracks UK supply chain companies and their capabilities

NATIONAL AWARDS DINNER 2014

78 years 700 members 130 events per year 12 UK pavilions 10 overseas delegations 6 global offices

0 AWARDS

INSPIRING GROWTH CATEGORY AWARDS

COMPANY OF THE YEAR AWARD

EIC-RGU RISING STAR MBA AWARD

2

Including CCUS, downstream, energy from waste, LNG, Mexico, Norway, offshore wind, OPEX reviews, Saudi Arabia, Survive and thrive and upstream decommissioning

FLAGSHIP CONFERENCES

2EVENTS

categories of Primary or Global

2020

12EVENTS

...in the UK & UAE

MEMBERSHIP CATEGORIES 2014

SECTOR AND COUNTRY REPORTS PRODUCED

2014

2020

8 1 1

SECTOR REPORTS PRODUCED

Energy Exports Conference and EIC Connect run in Abu Dhabi, Antwerp, Brazil, Houston, Indonesia, Korea, Kuwait, London, Malaysia, Mexico, Saudi Arabia – each is the largest supply chain energy event connecting you with project opportunities and key contacts

2020

11

categories to match your business needs, including Global, 3x Primary, 6x Local, Renewable and Operator

www.the-eic.com

19 19

UK and Europe news Regional update As we move into Spring the UK events team has been working extensively across the UK and Europe to knit together key energy collaboration zones and showcase a number of hot event topics.

Jo Cam

pbell

Last month the team was delighted to be invited by the Danish Export Association to its members conference in Copenhagen. The day proved enormously successful with a wide range of speakers discussing global market opportunities, the exploration funnel and how to do business in Brazil. We look forward to engaging with other European partners as the year continues.

As global energy demand is estimated to increase by 50% by 2050, how we generate and use energy is increasingly driving the political and social agenda.

The EIC and Lloyd’s Register collaborated to launch a discussion on supply shifts, environmental concerns and concepts for a sustainable energy mix. This sold out event which saw over 150 delegates, tackled difficult questions such as how can the oil and gas industry adapt, and how can we shape the outlook for a sustainable energy mix?

As offshore wind progresses towards being a global industry, we invite you to join us at our pavilion in Hamburg for WindEnergy Hamburg 2020 in September.

This will be our fifth UK pavilion at the event, and we hope to make it our biggest yet!

If you are considering doing business in the Norwegian market, further details are available for Offshore Northern Seas (ONS), where EIC and SDI will have a number of companies exhibiting on their pavilions from 31 August to 3 September 2020 in Stavanger, Norway. If you are interested in finding out more about exhibiting at ONS on either the UK or Scotland pavilions please contact pamela.nicholson@the-eic.com We have also launched our Nuclear Showcase this month, which will be held on 5 May 2020 hosted at Engine Rooms, Birchwood Park, Warrington. The showcase will be a preview to the UK pavilion at World Nuclear Exhibition – the biggest global event dedicated to civil nuclear.

Book to attend and find out how your company could support the overall international nuclear new build and decommissioning plans which are worth a combined US$500bn globally.

Sign up for the EICOnline newsletter

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

Did you know there are three committees serving EIC members across Scotland, the north and the south of the UK? The committees represent the views of EIC members and play a key role in suggesting topical issues, regional activities and equip members with a better overview of the energy sector. Would you like to be part of your local committee? Get in touch with Caitlin Henderson caitlin.henderson@the-eic.com to register your interest.

Jo Campbell, Regional Director (UK & Europe) jo.campbell@the-eic.com

Regional news

Coal comes closer to its end in UK and Europe

Europe has made several declarations demonstrating the change in governmental mindsets towards coal.

Germany established its coal-phase out commitment by 2038 and is looking at ways to mitigate capacity gaps and use decommissioned sites. BayWa. re found that the country’s lignite open-cast ponds could host 56GW of floating PV capacity.

In Spain, coal will be phased out by 2030 and major progress is occurring, with only 3 of its 15 coal plants to be operational by 2022. Like Germany, Spain is preparing for the future of its coal sites. For instance, Endesa is planning to develop 1.585GW of solar PV, 139MW onshore wind and 160MW energy storage at the existing Teruel coal power plant. North Macedonia approved a national energy strategy, making it the first in the Western Balkans to consider a coal phase-out before 2030. The UK is also pushing away from coal generation, with the Government planning to bring its legally required 2025 phase-out deadline forward a year. Drax has also announced plans to end the use of coal at the UK’s biggest power plant by 2022, three years in advance.

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

@TheEICEnergy

EIC (Energy Industries Council)

20

Middle East news Regional update We remain in the midst of the COVID-19 outbreak which has had a significant impact on both travel and trade across the region. Hopefully this does not go on to have the impending impact that many commentators forecast.

Regional news

Ryan M

cPhers

on

In the interim business continues to develop; Saudi Aramco’s 5th annual iktva (In-Kingdom Total Value Add) forum is tasked with driving increased levels of localisation in its supply chain. Through this initiative for the first time, the majority of procurement is now from in-Kingdom (56%), suppliers have tripled their local purchases of goods and services, their employment of Saudis is up 50%, and female employment has increased by almost a third.

Suppliers are exporting 50% more from the Kingdom, because of iktva. Aramco signed 66 initial agreements and strategic and commercial collaborations valued at more than US$21 billion with international partner companies and entities from 11 countries in several industrial and business sectors across the Saudi Arabian energy sector. We aim to be at the forefront of developments and are committed to bringing our Connect model to the Kingdom in the second half of the year, dates to be announced shortly!

Building on the success of the recent EIC Connect event in Abu Dhabi, we remain in dialogue with ADNOC in order to follow up on a number of the technical challenges discussed during the event, this partnership approach will hopefully identify real business opportunities for our members through which we can facilitate some tangible success stories.

At the time of writing we are still planning to proceed with our first of three trade delegations planned in Africa; Nigeria is a major player in the oil and gas industry with total proven reserves of over 37 Bbbl of oil, and production rates of over 2 MMbbl/d. Add to this proven gas reserves of around 193 Tcf, significant LNG liquefaction capacity, and a growing downstream sector, Nigeria represents a significant market of opportunity for the UK oil and gas supply chain. Further trade delegations to Mozambique/Kenya and Angola are scheduled to take place later in the year.

Finally, I would also like to draw your attention to The Energy Exports Conference (EEC) in Aberdeen on 20-21 October 2020. We have already had the confirmation of a number of Middle East national oil companies (NOCs) to participate and fully expect this to be bigger and better than last years’ highly successful event.

Ryan McPherson, Regional Director, Middle East, Africa, Russia & CIS ryan.mcpherson@the-eic.com Get in touch Share your news and views...

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

Saudi Aramco announces regulatory approval of the Jafurah gas field

Saudi Aramco has announced its plans to invest in the unconventional Jafurah gas field. Jafurah is the largest unconventional non-associated gas field in the Kingdom with estimated gas reserves of 200 trillion cubic feet. Saudi Aramco stated that they are expecting production to commence early 2024 with 2.2 billion standard cubic feet per day of sales gas by 2036 and 425 million standard cubic feet per day of ethane production. An exact value of the investment is yet to be announced but some sources claim that the value would be in excess of US$100 billion for the full programme, with EICDataStream already tracking projects worth more than US$10 billion of combined CAPEX.

ADNOC awards US$1.65bn Dalma gas development project to Petrofac

ADNOC has awarded two EPC contracts worth US$1.65m for the Dalma gas development project.

They were awarded to Petrofac Emirates LLC and a JV between Petrofac and Sapura. The first package, valued at US$1.065bn, is for gas processing facilities at Arzanah Island. The work scope includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure. The second package, valued at US$591m, involves Petrofac leading a JV with SapuraKencana HL Sdn Bhd Abu Dhabi. The work scope includes three new wellhead platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.

Forthcoming events

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

21 21

Asia Pacific news Regional update

Despite the challenges and constraints arising from the pandemic COVID-19 situation, EIC Asia Pacific will proceed with EIC Azman Connect Energy Indonesia Nasir but on the new dates of 9-10 September 2020 in Jakarta. We have taken all the necessary precautionary measures and followed the guidelines issued by EIC UK, the British Embassy and the governmental guidelines from the UK, Malaysia and Indonesia. We are happy to note that the response from members and non-members in attending and sponsoring the event has not reduced and we look forwaed to another successful EIC Connect event in the Asia Pacific region.

We are excited that international operators such as BP, Eni, Inpex, Premier Oil and Neptune Energy will speak at the event on their latest projects in Indonesia.

In addition, the presence of major local Indonesian industry players such as Pertamina, SKK Migas, Tripatra Engineering, Rekayasa Industries, PT PLN, Adaro Power, Indonesian Power, METI and EKBTE will bring plenty of opportunities for the delegates to find out more about Indonesian energy projects and make essential contacts with the high level representatives from the companies.

EIC Connect Indonesia will be officiated by the Ministry of Energy of Indonesia and the British Ambassador to Indonesia.

On 4 March 2020 I was invited to speak on the topic of Opportunities for New Energy in Asia Pacific. The event was organised jointly by EIC, British Malaysia Chamber of Commerce (BMCC) and the Malaysia Oil & Gas Services Council (MOGSC). The event was attended by 100 delegates from the energy industries in Kuala Lumpur.

Other speakers at the event included the Ministry of Energy, Environment and Climate Change (MESTECC), the national power company (TNB) and the national oil company (PETRONAS).

Future events being planned by EIC Asia Pacific include a business presentation by Mott MacDonald on hydrogen, an engagement session with international EPCs Worley, Bechtel, Petrofac and McDermott followed by another business presentation by several regional marine players such as Keppel of Singapore, CUEL of Thailand, PTSC of Vietnam and Boustead of Malaysia.

Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter

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9-10 September 2020 • Jakarta

CONNECT Energy Indonesia Regional news

US$1.32bn Forest wind farm gets approval

The Forest wind farm in Queensland, Australia has received development approval from the state’s government and is currently being advanced as an exclusive transaction by its investment and partnership entity. The project, which includes installation of 226 turbines, is expected to create around 440 jobs during construction and a further 50 full time jobs once operational. It will have a 1,200MW capacity which would supply one in four Queensland homes. The project is valued at around US$1.32bn and construction works are expected to begin in Q4 2020.

Petronas signs 12 year TCP for two LNG vessels

Petronas LNG Ltd has signed a 12 year time charter party (TCP) with Kawasaki Kisen Kaisha Ltd (K Line) for two identical mid-sized newbuild LNG vessels of approximately 79,960 cubic metres each in capacity.

The TCP includes an extension option for an additional 12 years. This long-term TCP is in line with the signing of the shipbuilding agreements between K Line and Hudong-Zhonghua Shipbuilding (Group) Co Ltd where these vessels will be constructed in Shanghai, China.

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

@TheEICEnergy

EIC (Energy Industries Council)

22

North and Central America news Regional update

Our second EIC Connect Energy Mexico, hosted in Mexico City on 27 February 2020, received a great reception with 120 delegates, 24 speaking companies and 80 one-to-one meetings held Aman da Duh on in one day! We appreciate the support from all our delegates, with special thanks to our speakers, panellists, partners and sponsors for their invaluable contribution to the event’s success. A special aspect of EIC Connect Energy Mexico this year was the formal announcement of our MoU with the British Chamber of Mexico. We would be delighted to hear from you if this conference resulted in strengthening or creating new partnerships in the region for your company.

Looking ahead, we are in the midst of planning EIC Connect Energy USA 2020 and have hosted our first advisory board meeting. If you’re interested in participating in this event as a sponsor, speaker or delegate then we would love to hear from you.

A specific area of opportunity, albeit with challenges due to embargo, is Cuba. The Northern Province reservoirs are heterogeneous fractured carbonates, with low matrix permeability and structures are stacked fold faulted.

A common problem in this instance is the presence of reactive clays as part of the seal. To address, Cuba Petróleo Union (CUPET) takes forward production through extensively long horizontal wells. The national oil company (NOC) is therefore looking for specific services to address. For further information, please do contact me; or plan to visit with CUPET at EEC in October.

Unger Steel understand the importance of having a regional presence to grow its business and they are the latest EIC member to take advantage of our local launchpad services. If your company needs valuable assistance or is interested in our EICLaunchPad services (hot desks, conference facilities, virtual and serviced offices), upcoming events and training then contact houston@the-eic.comw

Participating in a presentation at EIC Connect Energy Mexico

Regional news

Shell confirms deepwater drilling plan in Mexico

Mexico’s National Hydrocarbons Commission (CNH) has issued approval for Shell to commence drilling on its second ultra-deepwater exploratory well on Block 21 in the Gulf of Mexico. Shell also announced that it will move forward with a massive deepwater drilling plan in the country, which includes 10-13 wells for a total CAPEX of US$800mUS$2.4bn. Four wells will be drilled in 2020 and a similar amount in 2021.

NJ releases offshore wind solicitation schedule

The state of New Jersey has announced plans to launch its next solicitation for 1.2GW of offshore wind

by September 2020; with an award announced by Q2 2021. The call for bids aligns with New Jersey’s commitment to reach 50% renewable energy by 2030 and 100% clean energy by 2050.

Amanda Duhon, Regional Director, North & Central America amanda.duhon@the-eic.com 29 September 2020 • Houston

CONNECT

Energy USA Get in touch Share your news and views...

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

Forthcoming events

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

23 23

South America news Regional update

The Petrobras 2020/2024 business plan will invest US$75.7bn, focusing on exploration and production (85% of the total) especially in the pre-salt layer.

Also of note is the eventual Clariss e Roch a long-term use of wind and solar energy. Is your company ready to participate in these opportunities?

On 11 February, the EIC South America team held a business presentation with PetroRio, pictured above, the biggest independent oil and gas company in Brazil.

Its main projects are in the Frade and Polvo fields.

The event was a huge success with over 70 people in attendance and was hosted by EIC member Kincaid Mendes Vianna Advogados. Mr Alisson Rigolon, Petrorio procurement manager, spoke about the Brazilian industry, perspectives on the future, current projects and opportunities for suppliers.

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

Regional news

Brazil’s production exceeds 4 MMboe/d

Oil and gas production in Brazil exceeded 4 million barrels of oil equivalent per day in January 2020, according to data released by the country’s National Petroleum Agency (ANP). Oil output averaged 3.16 million barrels per day during the month, while natural gas production hit 138.7 million cubic metres per day.

Pre-salt fields accounted for 66.3% of Brazil’s oil and gas output, with the massive Lula field in the Santos Basin responsible for producing 1.05 MMb/d.

SBM sees 15 FPSO awards in Brazil in 2020-22

The Brazilian oil and gas market could see 15 FPSO contract awards over the next three years, according to projections by SBM Offshore.

The company sees potential for 35 global contracts during this period, in regions such as West Africa, the North Sea and the Gulf of Mexico.

25 additional prospects on Stabroek

There are 25 additional prospects to be explored on the Stabroek block offshore Guyana, according to an estimate by the financial services company Credit Suisse. Based on the discoveries already announced on the block, the company sees potential for at least nine development phases – without considering additional exploration prospects.

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

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EIC (Energy Industries Council)

20 D NE -2 A W 1 O TE CT S O BE R

ENERGY EXPORTS CONFERENCE P&J Live at TECA Aberdeen / 20-21 OCTOBER

2020

Access $500bn of global opportunities

BO

EIC

O NO K I W NG

NATIONAL

DINNER 2020

22 OCTOBER

New venue Join us at the iconic De Vere Grand Connaught Rooms for a glamorous night of networking, entertainment, awards and great food in a truly palatial setting.

Just five minutes from Covent Garden and Holborn tube stations this venue offers excellent transport links and accommodation options for you and your guests.

THE UK’S PREMIER ENERGY INDUSTRY EVENT 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.

Your guest speaker The no-nonsense, legendary comedian that is Jimmy Carr is set to return to the EIC National Awards Dinner after first appearing on our stage in 2017.

He’s back to deliver an afterdinner speech that’s guaranteed to entertain and is not for the faint-hearted.

Take advantage of this unbeatable early bird offer to host and entertain your own VIP guests at an unforgettable evening.

Cost Table of ten: £1,990+VAT Individual place: £199+VAT

Awards ceremony

Corporate hospitality is a great way to help improve relationships within your network. Contact Charmaine Thompson, EIC Sales Executive, to find out how to exceed your client’s expectations and differentiate yourself from the competition.

The EIC awards ceremony will recognise 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 can be found on the website here:

+44 (0)7710 996 915 charmaine.thompson@the-eic.com

BOOK TODAY

T: +44 (0)1429 874 450 E: nationalevents@the-eic.com www.the-eic.com/nationaldinner

© EDF Energy 2017

Sponsorship opportunities

www.the-eic.com/Events/ EICNationalAwardsDinner/Awards

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EIC Head Office and Southern Region 89 Albert Embankment London SE1 7TP UK Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com

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Suite 925 11490 Westheimer Houston Texas 77077 USA 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

EIC (Energy Industries Council)