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Sector analysis Brexit: what are the potential implications for the UK oil and gas industry?

August 2016

Read our interview with Garry Dryburgh, President, Middle East and Africa, Amec Foster Wheeler

Monitor Find out about the global contracting activity which took place in Q2 2016

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Sector analysis

Brexit: what are the potential implications for the UK oil and gas industry? The UK’s EU referendum took place on 23 June with an overall majority voting for the UK to leave the EU. The wider market impact was instant: share prices plummeted across Europe, the pound’s value weakened considerably against the dollar and the price of Brent dropped 5%. At an already challenging time for companies working in the oil and gas industry, will Brexit have an impact on the UK industry? While I cannot give a definitive answer to this, I will consider some of the possible impacts on the future of oil and gas in the UK.

No impact on regulation. Business as usual in the UK?

An exit from the EU will not impact the day to day running of the UK Continental Shelf (UKCS). The UK has responsibility for its upstream petroleum licensing and regulation, including the decommissioning of offshore installations and pipelines, as well as the enforcement of environmental legislation. The tax regime that applies to the profits derived from oil and gas production on the UKCS is also under the control of the UK government. For those EU directives that the UK has adopted in the oil and gas sector a decision would have to be made whether to continue to apply EU law or whether to develop new domestic policies. Should the UK develop its own regulatory framework, there is the potential that oil and gas companies could find themselves subject to two different regulatory regimes. As EU law relating to oil and gas has in the main been embraced by the industry, it is considered unlikely that the UK will move away from the existing regulatory regime.

Cost of field developments may increase and projects could be delayed

A large part of any oil and gas company’s spend is related to the employment of people. At this stage it is unclear what policies will be put in place regarding freedom of movement. What needs to be considered is that the operator and contractor community is multinational and the free movement of people is an essential part of the UK and global industry. Without free movement companies could face an increase in bureaucracy and associated costs when it comes to recruitment, at a time when the industry needs to reduce operating costs.

Neil G

olding

What about the opportunities to export?

As for the global markets, the UK would have to sign several new bilateral trade agreements, as many of our current trade deals are as part of the EU bloc. Some commentators consider this a fantastic opportunity for the UK supply chain in the long-term, having stated in the past that we have not been competing on a level playing field with the Italians, French and others in a number of markets. The question therefore is can the UK and its companies be more competitive outside of the EU and its legislation?

Local content regulation to be set up in the UK?

Away from a single market and the legislation that restricts favouring domestic companies, the UK could, if it wanted, look to officially mandate a local content rule. In offshore wind the industry is unofficially targeting 50% UK content on new developments. Could we now see local content legislation drawn-up? I consider this to be highly unlikely due in part to the cost implications. In theory it would lead to a less competitive market place which in turn could increase costs.

A second Scottish independence referendum?

The majority of the Scottish electorate voted to remain in the EU. Leaving could see the emergence of a second referendum. During the first Scottish independence referendum North Sea oil was discussed widely and how the basin and the resources would be divided up. In the event of a second referendum this will no doubt be discussed again. Should this happen it could potentially lead to companies delaying or at worse cancelling projects. Oil companies are experienced in working within difficult environments and have a history of working in countries with a far more hostile and volatile political environment than a United Kingdom outside the EU. Despite the potential implications of Brexit, the UK oil and gas industry has more significant concerns. The low price of oil and gas, its ageing existing infrastructure, high operating costs and declining hydrocarbon reserves will remain the primary challenges for the UK oil and gas industry. Neil Golding, Head of Oil and Gas neil.golding@the-eic.com

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Inside this issue... The UK’s decision to leave the EU has created global headlines and much speculation as to what will happen next. This month’s sector analysis page (opposite) considers some of the potential implications for the UK oil and gas industry. Our latest Monitor report on page 6, which reviews major contracting activity from April to June 2016 (quarter two), shows that while activity levels are still relatively low there were some key developments. For example, 20 UK wind turbine supply contracts were awarded in quarter two compared to 13 in the previous quarter. In terms of downstream EPC awards, it was also encouraging to see Europe feature so strongly. For this month’s one-to-one section we interviewed Amec Foster Wheeler’s Garry Dryburgh (page 4). Having become president for Middle East and Africa in Abu Dhabi just over a year ago, it seemed an opportune time to catch up with him and to hear his advice on how to expand into the Middle East market. We also took a behind-thescenes look at how the Amec Foster Wheeler merger was managed. The EIC’s rollout of new Inside Energy sections continues in this issue with our social media round up on page 15. We want to use every opportunity to engage with members and associates and to share useful information, so please follow us on Twitter (@TheEICEnergy). Our LinkedIn account – Energy Industries Council (EIC) – has some very useful industry updates and insights. Recent posts include an article on Argentina’s massive shale gas reserves and reformed energy sector, and another on how to get projects moving during this testing period of low oil prices.

Contents Sector analysis

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Inside this issue...

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It’s been a real pleasure to receive such positive feedback from members on our refreshed monthly newsletter and so many offers to contribute content. We’ve received lots of good ideas for additional sections too, one of which is a Spotlight on Technology feature.

One-to-one 4 New members

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With this in mind, I’d like to invite all member companies who have recently produced innovative products or technology to contact me so we can share your stories with other readers.

Member news

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Please send me a photo of the product and a brief description (no more than 300 words) explaining what it does, why it was developed and how it benefits your clients and/or the industry. I look forward to receiving your contributions and any other ideas you may have for your newsletter. Edward White Editor and Communications Manager edward.white@the-eic.com

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EIC Monitor

6

Social media round up 15 Forthcoming events

16

EIC training

19

Middle East news

20

Asia Pacific news

21

North America news

22

South America news

23

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One-to-one

with Garry Dryburgh President, Middle East and Africa, Amec Foster Wheeler Amec Foster Wheeler is one of the world’s leading engineering, project management and consultancy companies. We caught up with Garry in Abu Dhabi to discuss the Amec Foster Wheeler merge, the Middle East market and his company’s plans for the future. Q

turn a good profit, so our direction had to follow the money. We also committed to one culture throughout the new organisation. Through surveys, interviews and workshops we developed new values, behaviours and their launch and embedding plans.

Prior to moving to Abu Dhabi last year you led the Amec team that integrated Foster Wheeler into the company. What were the main challenges of this reorganisation and how did you go about achieving this integration so smoothly?

A

The main challenge was how to successfully combine two large, proud organisations, with 40,000 people in 50+ countries and histories spanning over a century.

We achieved this by treating it as you would any large, complex and strategically imperative multi-stakeholder programme. We began by truly understanding our current location and abilities, then carefully determining and agreeing the destination before setting and persistently navigating the optimum course of travel.

We did several key things to effectively plan and manage our bold adventure – I’ll elaborate a little using my three ‘R’s:

Ruthless prioritisation We began by probing and listening hard, on culture, capabilities and ways of working. We agreed clear expectations on the deal rationale, developing straightforward integration principles which ensured we focused on critical issues. We’re in business to add real value and from these efforts

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Right people It is people who win, deliver and support successful projects. It requires working interdependently on key priorities with energy, effort and enthusiasm. We resolved any potential ‘power’ issues by getting the right senior team working together early as our Integration Steering Committee, each member actively sponsoring work streams. We handpicked the Integration Management team, the Regional Champions and the many work stream leaders. Rhythm A rewarding challenge in any enterprise is getting it into rhythm. This requires a passionate vision for the future which wins hearts and minds and the determination to design and then really drive the selected business model into life. Our drumbeat included: planning and engaging early, effective governance, sponsorship from top down, momentum in integration and base businesses, making the hard but critical decisions, and investing to create a repeatable integration model.

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

Q

You came to Abu Dhabi in August 2015, after a year here what are your reflections on the region and what advice would you give companies thinking about tapping into this market?

A

My reflections are heavily influenced by considerable travel and direct engagement with our customers, our people and other key stakeholders. In the past few months I’ve had the privilege of spending time in Saudi Arabia, Iraq, Kuwait, Oman, Jordan and also across parts of Africa including South Africa, Zambia, Zimbabwe, Rwanda and Namibia. As a result of these travels I have reached the following conclusions:

Firstly, it’s all about people as it is people that win, support and deliver great solutions

Secondly, in travel as in life, it’s the connections that count. Connections are stories waiting to be told. Stories that make sense on where we’ve been, where we’re going and what matters most.

Thirdly, the world needs business leaders who are passionate about more than just business.

Put those three together, as we do in Amec Foster Wheeler, and there’s opportunity to make a difference in any market, whether that’s in the Middle East, Africa or any other continent.


One-to-one

My advice to anyone thinking about tapping into the Middle East market is quite simple. Begin by understanding what you’re offering, and thinking about how you’ll build local capability in a way that differentiates you and is sustainable. The various markets in the region are dynamic, one static model most certainly will not do. Think about which passionate people are right to work and live here. How are you going to connect them, and with who? I would recommend that you begin by connecting with the EIC Middle East office. I was very fortunate that the EIC’s Terry Willis was first to meet me, and with open arms, upon my arrival. My next visits were to UKTI and the UK Embassy in Abu Dhabi – all of which took place in my first week.

Q

Since you became President for Middle East and Africa, Amec Foster Wheeler has opened a number of new offices including in Ghana and Oman. Where do you see future growth for the company? And what are the prerequisites to successfully entering new markets?

Organically, I see most growth as being on the back of doing great work for our current customers. Our most recent wins in Iraq, Kuwait, Saudi Arabia and Mozambique are fabulous examples of that. But it’s also about making compelling offers to new customers too. To be successful you have to make good connections with both. The balance varies depending upon opportunity and location. For example, I made over 30 customer connections during my travels in May and most of

A

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those were new connections. It’s only through really engaging that you can get a feel for alignment of values, cultural fit, ability to make a value-add offer and then add these to your assessment of political and security risk, ROI, etc. Where’s there’s risk there’s opportunity and for opportunity to knock you’ve got to build a door. Q

Amec Foster Wheeler has been a great supporter of the EIC, sponsoring the networking area at the EIC Connect Middle East event earlier this year and our networking reception at last year’s ADIPEC. Why do you think events like EIC Connect Middle East or ADIPEC are so important?

For me, these are where you can get best bang for the buck. You can make so many new connections in such a short space of time in a really transparent way. At Amec Foster Wheeler we’re all about doing the right thing, delivering on promises and developing full potential. Events like these help us exhibit to multiple stakeholders that our meaningful life comes from using these strengths in the service of others.

A

My advice to anyone thinking about tapping into the Middle East market is quite simple. Begin by understanding what you’re offering, and thinking about how you’ll build local capability in a way that differentiates you and is sustainable

Any EIC members who wish to be profiled in this section please contact Edward White, EIC Editor and Communication Manager at: edward.white@the-eic.com

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EIC Monitor Oil and Gas Monitor Q2 2016 Upstream Upstream: number of major contract awards 60 50 40 30 20 10 0

Q2

Q3

Q4

2015

EPC

FEED

Q1

2016

Q2

Subsea/SURF

In Q2 2016 (April – June) a total of 25 major contracts (EPC, FEED and Subsea/SURF) were awarded across 23 upstream developments, falling 37% from 44 awards in Q1 2016 (January – March), and decreasing 55% from 56 contract awards in Q2 2015. A total of 8 EPC contracts, 7 FEED contracts and 10 Subsea/SURF contracts were awarded.

EPC activity

Malaysia and Norway were only awarded one EPC contract apiece, a significant decrease in activity from Q1 2016 when they were awarded eight contracts between them. Oman, however, was awarded two EPC contracts in Q2 2016 in comparison to zero in Q1 2016. Both of the contracts were for compressor facilities on two different projects operated by Petroleum Development Oman. L&T Hydrocarbon Engineering was awarded both of the contracts for work on the Kauther Depletion Compression project and Saih Nihayda Depletion Compression project.

FEED activity

Seven contracts awarded in Q2 2016 which was a decrease of 30% from the 10 contracts awarded in Q1 2016. As with the previous quarter it was Norway which led the contracting activity with a total of four contracts. Statoil awarded all four of the Norwegian FEED contracts, with the most significant being awarded to Aker Solution for work on the Utgard tieback. The contract also has the option for Aker to provide EPCI.

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Subsea/SURF

Norway also topped the Subsea/SURF contract awards in Q2 2016. Statoil was the operator which awarded the two Norwegian contracts. The first was to GE Oil & Gas for the lucrative Johan Sverdrup development, where GE will supply the Christmas trees for the project. The second was for the Oseberg development where Technip won a contract to supply 9km of umbilicals. The US also had a successful quarter when compared to Q1 2016. There were two contracts awarded, the first was awarded to Proserv by Hess for the supply of subsea equipment on the Conger offshore expansion. Kiewit Offshore Services won the second contract to rebuild tendons on the Big Foot Deepwater field.

Midstream Midstream: number of major contract awards 40 35 30 25 20 15 10 5 0

Q2

Q3

2015

EPC

Q4 FEED

Q1

2016

Q2

Pre-FEED

In Q2 2016, a total of 14 major contracts (EPC, FEED and Pre-FEED) were awarded across 12 midstream developments, decreasing 39% from 23 awards in Q1 2016, and 62% from 37 contract awards in Q2 2015. A total of 11 EPC contracts, 3 FEED and 0 Pre-FEED contracts were awarded.

EPC activity

With 11 contracts awarded, Q2 2016 has seen a 42% decrease in EPC contract activity from the previous quarter. This decrease is largely concentrated in Canada where there has been a decrease from three contracts in Q1 2016 to zero contracts in Q2 2016. This sudden drop in awards is due to a significant decrease in LNG export developments.


EIC Monitor

The TAP consortia awarded two EPC contracts on the pipeline. The first was to Saipem to supply 105km of offshore pipeline across the Adriatic Sea between the Albanian and southern Italian coast. The second contract was to supply 110km of offshore pipeline which was awarded to Salzgitter AG.

A total of 20 major contracts (EPC, FEED and PMC) were awarded across 18 downstream developments, decreasing 41% from 34 awards in Q1 2016, and decreasing 43% from 35 contract awards in Q2 2015. A total of 17 EPC contracts, 2 FEED contracts and 1 PMC contract were awarded.

Only one EPC contract was awarded in Europe in Q2 2016, as opposed to two in the previous quarter. However, the award was a high value contract given to Transportadora de Gas Natural de la Huastecahas by the Comision Federal de Electricidad, on the Tula Villa de Reyes pipeline. The contract was worth around US$400m and the pipeline is now under construction with a completion date scheduled for the end of 2017.

EPC activity

FEED activity

FEED activity has significantly decreased in activity in Q2 2016 with only three contracts having been awarded. While contracting activity within LNG has decreased, two of the three contracts were still for FSRU projects. The first was a contract awarded to Moffatt & Nichol International which has been selected as the Owner’s Engineer on the Talcahuano import terminal operated by Inversiones GNL Talcahuano. The second of these contracts was awarded to BMT Asia Pacific for work on the Songon Gas-to-Power project on the Ivory Coast. In the currently oversupplied market it is FSRU and gasto-power projects like these that are more likely to go through to development, as opposed to the large LNG export projects.

Pre-FEED activity

No major Pre-FEED contracts were awarded in Q1 2016. This is indicative of the sector as a whole in the current climate. The oversupply in the markets, and in particular, the recent flood of LNG has left a number of project no longer commercially viable to proceed to development.

Downstream

Another major EPC contract awarded in Saudi Arabia was granted by Iran Entekhab Investment Development Group. PIELDS Engineering Ltd was awarded an EPCF (engineering, procurement, construction and finance) contract for the construction of a 175,000tpa pentane plant in Asalouyeh, Iran. The project is very important as it will supply feedstock for five expanded polystyrene plants in the country. Europe also saw some considerable EPC activity in the last quarter with three awards made. NIPIGas was awarded the EPC contract on the Moscow Oil Refinery Modernisation project for the commissioning of the refinery’s Euro+ combined refining unit. The other two awards were both made in Azerbaijan - CNPC being awarded the EPC for the Garadagh OGPC project and Air Liquide was awarded the EPC for the Heydar Aliyev Baku Oil Refinery Modernisation project.

FEED activity

Only two FEED contracts were awarded in Q2 2016. The more significant of these was made by Sonangol to Engineers India Limited (EIL) for a FEED revalidation on the Lobito refinery. As part of the deal, EIL will also provide licensor selection services and a basic design and engineering package review. The refinery is expected to be operational in 2018.

Downstream: number of major contract awards 60 50 40

PMC activity

30 20 10 0

The majority of EPC activity in Q2 2016 has been in the Middle East, with 7 of the 17 contracts being awarded in Saudi Arabia (four awards), Iran (two awards) and the United Arab Emirates (one award). A significant award from this quarter was the EPC contract awarded on the Hormoz oil refinery. Daewoo E&C signed a MoU with Iranian Bahman Geno Co to build the refinery with Hyundai E&C at the start of May. A letter of intent was issued to the two contractors back in April regarding the project, which is expected to be operational in 2020.

Q2

Q3

Q4

2015

EPC

FEED

Q1

2016

PMC

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Q2

There was one PMC contract awarded in Q2 2016. In Sweden, Chevron Lummus Global was awarded the PMC contract for the Lysekil refinery upgrade. Under the agreement, CB&I will develop a detailed cost estimate and execution plan for the engineering, procurement and construction phase of the project, with an expected completion date of 2017.

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EIC Monitor

Power, Nuclear and Renewables Monitor Q2 2016 Global thermal and nuclear Global thermal and nuclear power contracts

In Q2 2016, 37 major contracts were awarded across 32 thermal and nuclear projects globally compared to the 40 major contracts that were awarded across 37 projects in the previous quarter. Of the 36 contracts awarded in Q2, 17 were engineering procurement and construction (EPC) contracts, 19 were for the supply of original manufacturer equipment (OEM) and 1 was a project management contract (PMC). Most of this activity occurred in the North America region where 11 of the contracts were awarded, however, this is lower than what we have seen in previous quarters. The US took nine of the contract awards signalling the stable growth in investment in thermal generation there. Mexico saw an EPC contract awarded to its Topolobampo II NGCC power plant and in Canada progress was made on the refurbishment of the Darlington A nuclear plant. A total of four contracts were awarded in South America notably three of these were to the expansion of the Warnes, Entres Rios and Sur thermal power plants located in Bolivia and owed by Empresa Nacional de Electricidad. All three OEM supply contracts went to Siemens. The other contract went to the Tucuman thermal power plant project in Argentina. In Asia six contracts were awarded. Three of these were in Indonesia where the PLTU 3 Banten Lontar coal-fired power plant expansion continues to make progress (two contracts) and the PLTG Cengkareng gas-fired plant was awarded a contract. The remaining contracts were awarded at China’s Tianwan nuclear power plant phase 2 and 3 project (unit 3-6), Taiwan’s Taichung thermal power plant refurbishment (units 1-4) and Vietnam’s Vinh Tan thermo power complex (Vinh Tan 4). Meanwhile, in the Indian Subcontinent five contracts were awarded. This is a drop in activity when compared to the previous quarter when eight contracts were awarded in the region. Get in touch Share your news and views...

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Looking to the Middle East there is steady growth in conventional and thermal generation projects as five contracts were awarded there, compared to four in the previous quarter. The contracts that were awarded went to projects located in Israel (two), Saudi Arabia (two) and Oman (one). Siemens received an order to construct two industrial combined cycle natural gas-fired power plants with a total capacity of 140MW in Israel. The project is Siemens’ first of its kind from a Middle Eastern country and will involve construction of the Alon Tavor and Ramat Gabriel natural gas-fired power plants. Siemens will manage their turnkey construction and deliver a SST-300 industrial steam turbine, a SGT-800 industrial gas turbine, and the SPPA-T3000 control system for each project. With an electrical capacity of 70MW each, the two industrial plants are expected to be commissioned in mid-2018. Siemens’ turbines will be manufactured in Brno, the Czech Republic, and Finspong, Sweden. Nearly 40% of the total power generation capacity in Israel is produced using Siemens technology. In Africa three contracts were awarded. Of these, two went to Finnish contractor Wärtsilä for a projects in Mauritius and Senegal respectively. Economic growth and a developing tourism industry have resulted in an increase in energy consumption in Mauritius. In Africa, Wärtsilä’s total installed base is 6,500MW spread over 46 countries, confirming the company as a well-established player in the market. In the UK and Europe, the nuclear industry dominated activity in Q2. In the UK, the Horizon nuclear new build project announced its delivery team. A joint venture (JV) named Menter Newydd, comprised of Bechtel, JGC Corporation and Hitachi, was confirmed as the project’s main EPC contractor for the £10bn Wylfa Newydd nuclear power plant in Anglesey, Wales. The JV will now begin to develop relationships with sub-contractors, with the partnership managed via a joint programme management office in Gloucester. At the ITER nuclear fusion plant in Cadarache, France, a PMC contract was awarded to the MOMENTUM JV. Led by Amec Foster Wheeler in partnership with Assystem and KEPCO, the JV will act as construction managementas-agent contractor for the project. The 10-year contract is estimated to be worth €174m, with a three-year extension option. In Russia, contractor Atommash obtained an EPC contract for the Kursk 2 nuclear power plant project. The company will supply the reactor vessel for unit 1, which will see a VVER-1200 reactor constructed. Replacement units are being built for units which are being retired at the original Kursk nuclear power plant. Four units are to be constructed at Kursk 2, each with a capacity of 1,200MW. Commissioning of the first two units will be synchronised with the shutdown of operating power units.


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UK wind turbine contracts

The second quarter of the year saw 20 wind turbine supply contracts awarded to projects in the UK. Three of the contracts were for offshore wind projects, with the remaining 17 awarded to onshore wind projects. Of note within the offshore wind contracts is the Beatrice project which will consist of 84 Siemens 7MW turbines. SSE holds a 40% stake in the project, while Copenhagen Infrastructure Partners and China’s SDIC Power hold a 35% and 25% stake respectively. The project achieved financial close in May 2016. UK wind turbine supply contracts 25 20

The third contract of the quarter went to MHI Vestas Offshore Wind for the supply of five 8.3MW turbines to EDF Energy Renewables’ 41.5MW Blyth offshore wind demonstration project, situated approximately 6km off the coast of Blyth. Turbine installation is set to take place in 2017. Moving onto onshore wind projects, the second quarter was particularly successful for turbine supplier Senvion which was awarded eight wind turbine supply contracts in the UK. Four of the contracts were awarded for projects located in England, while four contracts were for projects located in Scotland. Senvion will also supply turbines to the Tormywheel project in West Lothian. After winning the contract in May 2016, Senvion will deliver 15 MM92 2.05MW turbines in November 2016. Nordex were awarded three contracts in the UK, two of which are for projects in Northern Ireland. Vestas, GE and Enercon GmbH were each awarded two contracts respectively.

15 10 5 0

Q2 England

Q3

2015

Northern Ireland

Q4 Scotland

Q1

2016

UK Offshore

Q2

Wales

Siemens were also confirmed as the wind turbine supplier for the East Anglia 1 project. The project developer is ScottishPower Renewables, a subsidiary of Iberdrola SA. The 714MW offshore wind farm will be the largest project in terms of capacity for which Siemens has supplied turbines. The turbines will be installed on jacket foundations and the blades will be produced at Siemens’ Green Port Hull facility. Great Yarmouth has been selected as the preassembly base. Siemens will also be responsible for servicing the project for an initial period of five years. Sign up for the EICOnline newsletter

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Data is sourced from the world leading EICDataStream online project tracking database, which tracks projects proposed or under development in the global energy industry. For more information please visit: www.the-eic.com/EICDataStream EIC Monitor is published on a quarterly basis.

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New EIC members NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

Aquasign

Functional Safety Consultancy Ltd

Global Edge Consultants UK Ltd

Passfield Business Centre Lynchborough Road Passfield, Liphook Hampshire GU30 7SB

105 Maling Exchange Hoults Yard Walker Road Newcastle upon Tyne NE6 2HL

The Nominated Representative is Ms Michelle Page, Sales and Marketing Co-ordinator.

The Nominated Representative is Mr Martin Snow, Business Development Director.

The Nominated Representative is Mr Alan Waugh, Business Manager.

Telephone +44 (0)1224 897 060

Telephone +44 (0)1428 400 200

Telephone +44 (0)191 300 6273

Email michelle.page@aquasign.com

Email martin.snow@ functionalsafetyconsultancy.com

Email alan.waugh@ theglobaledgeconsultants.com

Web www. functionalsafetyconsultancy.com

Web www. theglobaledgeconsultants.com

Functional Safety Consultancy Ltd is an engineering consultancy company built on experience and expertise in the field of functional safety. The company’s consultants are able to support clients in all the functional safety aspects of the processes, systems and equipment for the oil and gas, petrochemical, chemical, utilities (including green technologies), military and manufacturing industries.

Global Edge Consultants is a full service firm specialising in the recruitment and mobilisation of technical and project personnel for industries such as oil and gas, petrochemical, chemical, engineering, power, nuclear, manufacturing and government.

4 Points Commercial Centre Craigshaw Road Tullos Aberdeen AB12 3AP

Web www.aquasign.com Aquasign specialises in the manufacture of all types of oilfield signage, designed to enhance safety and reduce operational costs throughout project lifespans. Core business Aquasign® is a unique anti-fouling marking system, providing highly-visible identification, positional and orientation markings for all types of subsea assets. Aquasign® is a silicone based marker system that mimics fish skin, using a controlled nontoxic oil release system and hydrophobic surface to prevent bio-fouling at the lowest level. Aquasign’s unique technology is the only anti-fouling system guaranteed for a minimum of 30 years and has been extensively third party qualified for subsea use. The company also boasts an exclusive in-house manufacturing facility used to produce all equipment marking solutions. Capabilities include CNC milling, waterjet cutting, rotary engrave, chemical etch and screen printing which are used to produce a wide variety of signage such as aquaplates, certification nameplates, safety signs and labels. Get in touch Share your news and views...

Compliance to the international standards such as IEC 61508 and IEC 61511 are imperative to meeting the functional safety requirements for many process applications and have formed part of the quality management systems of many companies. Provision of functional safety services in line with the phases and activities detailed in the safety life-cycle is an area in which the consultants are able to demonstrate extensive experience and expertise.

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The company focuses on providing clients with highly qualified, screened candidates for both domestic and international positions in a timely manner. Straightforward, honest, confidential searches protect candidates and provide direct hire, consulting or contract personnel to clients. Many years of experience and knowledge of people in each industry allows the company to match candidates with suitable positions. The company aims to be the agency of choice for clients and candidates alike. The relationships it builds are based on top quality recruitment and excellent service. Staff of highly experienced professionals make Global Edge Consultants one of the fastest-growing recruitment firms worldwide.


New EIC members

NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

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GMA Garnet Group

JLT Specialty Ltd

Proserv

PO Box 9 Middlewich Cheshire CW10 9FD

The St Botolph Building 138 Houndsditch London EC3A 7AW

Proserv House Prospect Road Westhill Aberdeenshire AB32 6FJ

The Nominated Representative is Mr John Halewood, Business Development Manager.

The Nominated Representative is Mr Terry Garrett, Operations Officer.

The Nominated Representative is Mr Kaoutar El Mcherqui, Marketing Lead – Middle East & Africa.

Telephone +44 (0)1606 836 233

Telephone +44 (0)20 7528 4000

Telephone +44 (0)1224 737 000

Email jhalewood@garnetsales.com

Email terry_garrett@jltgroup.com

Email kaoutar.mcherqui@proserv.com

Web www.garnetsales.com

Web www.jltgroup.com

Web www.proserv.com

GMA Garnet Group (GMA) has been leading the garnet abrasive market globally for more than 30 years. GMA not only mines, processes and distributes garnet for the surface preparation and waterjet cutting industries, but also leads the way in garnet recycling and disposal.

JLT Specialty Limited provides corporate insurance broking, risk management and claims consulting services in sectors where the company can make the greatest difference.

Proserv is an international energy services company specialising in the provision of life-of-field solutions, operating on 25 sites in 11 countries with 50 years experience in the energy industry.

JLT Specialty has a dedicated energy team of over 80 offering a wealth of expertise and a proven track record in dealing with complex power and energyrelated projects. Using its insight, intelligence and imagination the team provides expert advice and robust – often unique – solutions.

Proserv is focused on providing cost efficient solutions and services through an expert response, to increase production and reliability across the entire oilfield. Proserv is continually striving to develop ingeniously simple and fit-for-purpose technology solutions.

GMA operates a dedicated and professional global distribution network that is well established to provide professional services, solutions and technical support in the industry for over 30 years. GMA Garnet™ natural abrasives are processed to highest quality standards in respect of mineral purity and meet the stringent requirements of ISO 11126-10:2000 for chloride and free silica content.

The energy team offers both retail and wholesale energy resources, providing global insurance advice and placement services directly to clients and broker partners.

Over the years, the trusted quality and proven performance of GMA Garnet™ has garnered industry confidence as the preferred abrasive in various industries including oil and gas, aerospace manufacturing, defence, shipbuilding and maintenance and steel fabrication.

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Member news ABLE Instruments signs distribution deal with MSA ABLE Instruments & Controls Ltd has signed a distributor agreement with MSA – The Safety Company, which allows it to now offer an unrivalled range of gas and flame detectors. The strategic alignment of ABLE’s application expertise with MSA’s high quality products for both portable and fixed detection will ensure its customers are offered the right solution to their safety requirements. Commenting on the agreement, Richard Smith, MSA’s Regional Manager Northern and Eastern Europe said, ‘MSA has been protecting lives for over 100 years now. Combining that with ABLE’s ability to provide a resolution, whatever the problem, we should see a great deal of success come from this relationship. We consider ourselves fortunate to be able to join forces with ABLE Instruments.’

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For more information: www.able.co.uk

Alco Valves Group invests in new production and technology centre

High performance valve manufacturer Alco Valves Group is investing in a new state-of-the-art 68,000 square feet production and technology centre in Brighouse, West Yorkshire. Alco’s Managing Director Sam Crossley explained: ‘This new facility brings all the manufacturing together in a single location allowing for efficient workflow and the elimination of duplicated tasks.’ Redevelopment of the new premises has already begun and once complete the new centre will bring new and exciting job opportunities to the local area.

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For more information: www.alco-valves.com

Atmos International tackling pipeline product theft in Latin America

Functional Safety Consultancy Ltd (FSCL) has signed a partnership agreement covering the Middle East region with ATME Group, a leading consulting company and solutions provider for process engineering, refining supply chain, and energy optimisation. Commenting on the agreement ATME Group CEO Edmond Chammas said, ‘ATME has a strong engineering group based in the Middle East, which combined with the specialist knowledge and experience in all aspects of functional safety that FSCL has, creates a strong and cost effective offering to all the potential customers in the region.’

Atmos International’s Latin American Theft Net division, based in the Atmos Costa Rica office in San Jose, will bring welcome relief to pipeline operators in Latin America under attack from hightech thieves using modern technology to steal large quantities of valuable material from hazardous product pipelines.

Peter Hall, Managing Director of FSCL said, ‘It’s important to be able to offer our consultancy services from a local perspective and ATME’s engineering background and offices located in most Middle East countries makes it an ideal partner for FSCL.’

Using its innovative data analysis service Theft Net, Atmos uses specialist engineers to interpret data collected from pipelines to accurately pin-point illegal tapping points. These specialist theft detection engineers achieve far higher sensitivity than standard online theft detection systems.

FSCL provides functional safety consultancy services in accordance with international standards IEC 61508 and IEC 61511, and is experienced in working with end users, engineering procurement and construction companies and system integrators.

By using a combination of hardware, software, and skilled engineering analysis this unique service has already been deployed on virtually every refined product pipeline network in the UK, and is now expanding into Latin America.

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The new production and technology centre will create job opportunities

Functional Safety Consultancy Ltd signs partnership agreement with ATME Group

For more information: www.atmosi.com

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For more information: www.functionalsafetyconsultancy.com


Member news

Mussa Mahomed, Nylacast Group CEO said, ‘We are delighted to be ranked in The Sunday Times HSBC International Track 200. We currently export over 70% of our UK engineered and manufactured solutions to over 43 countries and are aiming to increase our exports even more.’

The Ben Rinnes jack-up drilling unit

KCA Deutag sells Ben Rinnes jack-up drilling unit Global drilling and engineering contractor KCA Deutag has sold its jack-up drilling unit, the Ben Rinnes, to an integrated energy and services company for an undisclosed sum. Built in Clydebank, Scotland in 1973 and acquired by KCA Deutag in 2005, the Ben Rinnes was under contract offshore Angola until February of this year. Norrie McKay, KCA Deutag CEO said, ‘While the sale of the Ben Rinnes is an important milestone for KCA Deutag as it is our last asset in our mobile offshore drilling fleet, we continue to maintain the competence and experience required to support offshore drilling unit operations. This expertise is currently supporting the construction and start-up of two Category J jack-up rigs which will commence operations on the Norwegian Continental Shelf next year.’

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For more information: www.kcadeutag.com

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Nylacast ranked as one of Britain’s fastest growing international sales stars

The seventh annual Sunday Times HSBC International Track 200 league table placed Nylacast, a leading manufacturer of engineering plastics, at 150 in its list of midmarket private companies with the fastest-growing international sales. Other companies in the Track 200 league table included travel search engine Skyscanner and high street coffee chain Pret A Manger. Employing 410 members of staff worldwide, Nylacast’s international sales hit £26.7m in 2015. Operating within key industries, the engineering firm works closely with manufacturers to develop performance and efficiency enhancing solutions for household names including CAT, JCB, BP, Shell and GSK to name a few. Nylacast also provides award winning steering components for vehicle manufacturers, helping to steer over 60 million vehicles worldwide.

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The Sunday Times HSBC International Track 200 is compiled by Oxford based research company Fast Track, and is sponsored by HSBC. Amanda Murphey, UK Head of Corporate Banking at HSBC, said, ‘The Sunday Times HSBC International Track 200 is a great reflection of the value of building connections overseas. The world is getting smaller and for ambitious businesses, the opportunities to source goods and services and to grow organically via international trade, digitally or on the ground, are easier than ever.’

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For more information: www.nylacast.com

Rotork ELB combines pipeline pressure monitoring with intelligent valve control

The Rotork ELB is a robust, selfcontained instrument that combines pipeline pressure monitoring with intelligent valve control. The ELB can also collect detailed operational data for optimising performance and enhancing pipeline safety. The ELB continuously monitors upstream and downstream pipeline pressure dynamics to provide early detection of pipeline breaks and initiate automatic valve actuator movement to an emergency position, based on user-defined parameters.

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14

Member news

Tekmar products successful at Underwater Centre trial

The Electronic Line Break (on the left) attached to a Rotork gas-over-oil pipeline actuator

Valve actuator control – selectable as fail close, fail open or stay put – is based on rate-of-drop (RoD) and rate-of-rise (RoR) as well as high and low pressure limits. A remote process shut down (PSD) input with the option to override all functions is also available to drive the valve to the fail position. The ELB also provides an array of programmable alarm and alert indications and has an extensive range of features that can be configured to meet end users’ specific requirements.

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For more information: www.rotork.com

Sonardyne SensorView reduces nonproductive rig time at Ichthys gas field

SensorView software supplied by subsea technology company Sonardyne, which enables acoustic data to be streamed in real time from subsea structures as they are installed, has helped to reduce non-production time for independent oil and gas producer, INPEX, and its survey contractor, Neptune Geomatics, during construction of the Ichthys gas field, offshore Western Australia.

The SensorView software allowed data gathered by an acoustic transponder mounted on tubing head spools (THS), to be transmitted at high speed to rig personnel monitoring the installation operations. The parameters measured by the transponder’s on-board sensors included heading, depth, sound velocity and inclination, and meant that delays previously incurred while aligning each THS to drilling templates, could be substantially reduced. Located 220km offshore, Ichthys represents the largest discovery of hydrocarbon liquids in Australia in over 40 years. It covers an area of around 800 square kilometres in water averaging depths of around 250 metres and is estimated to contain more than 12 trillion cubic feet of gas and 500 million barrels of condensate. Pat Fournier, Operations Manager for Neptune’s Geomatics service line said, ‘During Neptune’s recent Ichthys drilling and completions campaign, SensorView delivered us THS heading update rates of approximately one every three seconds. This was sufficient for our surveyors to fully understand the dynamic motion of the structures and thereby reduce the time needed to land them in the correct location.’

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For more information: www.sonardyne.com

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Tekmar Energy, which supplies cable protection systems (CPS) to the offshore windfarm industry, has successfully carried out a full-scale demonstration of its products at the Underwater Centre – a purpose-built subsea training and trials facility on the shore of Loch Linnhe in Scotland. The objective of the demonstration was to prove the ability to rapidly and reliably remove a CPS without the need for divers. This is key safety issue as offshore windfarm projects are being installed in increasingly deeper waters where diving becomes more dangerous and costly. With numerous offshore wind industry leaders in attendance – including DONG Energy, VBMS, Jan de Nul and CWIND – Tekmar and the Underwater Centre carried out the installation and removal of a CPS from mock-up offshore foundations. Cable protection systems are designed to be maintenance free for the full service life of the windfarm. However, for decommissioning purposes and in order to reduce risk within the industry it is important that any equipment that is installed subsea has a proven and robust method of removal. The demonstrations were carried out over a two day period. On the first day the removal operation was performed on a mock-up j-tubeless monopile foundation. The second day was reserved to carry out the same operation on a mockup j-tube. Both demonstrations were considered successful with operations being completed considerably quicker than expected.

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For more information: www.tekmar.co.uk


New EIC members Social media Member round news up

WSG PNS enters the valve repair market

WSG PNS has constructed a state of the art new 35,000 square feet facility at its UK head office in Normanton, Wakefield to accommodate valve repairs and refurbishments as part of the nitrogen and joint integrity services company’s expansion into this market. The facility houses a 15 tonne overhead crane, hydrostatic test cell, fully submerged gas testing facility, CNC ball grinding machines, and Haas CNC milling and turning with the capacity to repair/refurbish and manufacture valves, including up to a 46” diameter ball.

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 Attendees hear from Senegal Energy Minister Thierno Alassane Sall and @CairnEnergy Senegal Manager Miles Warner

The EIC @TheEICEnergy We’re hosting the UK pavilion at @Exhibition_WNE this week, come and visit us and our exhibitors in hall 2b #nuclear

Energy Industries Council (EIC) EIC Regional Analyst Pietro Ferreira provides an overview of FPSOs, including their history, design and uses in the oil and gas industry: http://eic.energy/1RI3D4S Managing Director Gareth Turner explained how this fits in with one of WSG PNS’ core strategies, ‘As we were already removing, reinstalling and testing valves as part of our plant outages, offering valve services was the next logical step for us, giving our customers a fully integrated solution.’

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For more information: www.wellservices-group.com

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August 2016

Forthcoming events 9 August Management Course

Understanding Project Management EIC London

16 August Industry Overview

Fundamentals of Oil & Gas EIC London

16 August Industry Overview

Fundamentals of Oil & Gas EIC Dubai

17 August Technical Workshop

Introduction to Compressors Dresser-Rand, Frimley

17 August Business Presentation

Opportunities with EnQuest Petroleum EIC Kuala Lumpur

18 August Business Presentation

EICDataStream Overview EIC Houston

23 August Business Presentation

EICDataStream Overview Regus @ Samsung Hub, Singapore

25 August Management Course

Contract Disputes EIC Kuala lumpur

25 August Sector Showcase

Working Alliances – Collaboration in Action Aberdeen venue tbc

Collaboration has been a consistent industry theme since the publication of Sir Ian Wood’s UKCS Maximising Economic Recovery Review. The second series of our UKCS showcases will now focus on the changing landscape of the oil and gas supply chain by outlining how operators and the supply chain are beginning to collaborate and what is needed for successful collaboration and how far we have come on the path to working collaboratively. This breakfast briefing will bring together a panel of operators, supply chain companies and relevant professional bodies from across the UKCS and gas sector to discuss the opportunities in this area. The companies will outline their recent effective collaborations in the UKCS, providing the key lessons learnt and top tips for effective collaboration. To register interest in this event please contact: julia.harte@the-eic.com

29 August Overseas Exhibition

Offshore Northern Seas (ONS) Stavanger

30 August Management Course

Accelerating Revenue Growth EIC Houston

25 August HSE Training

The ATEX Directives SGS Baseefa, Buxton

For more information and to book visit www.the-eic.com Get in touch Share your news and views...

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September 2016

Forthcoming events

6 September

Corporate Entertainment

Cheese and Wine Networking Night

Vintage Wine Bar, Wafi, Dubai

7 September Management Course

Effective Appointment and Management of Local Agents EIC London

13 September Technical Workshop

Introduction to Electric Motors ATB Group, Norwich

21 September HSE Training

The Machinery Directive and CE Marking Amtri Veritas, EIC London

22 September Sector Showcase

8 September Export Showcase

Opportunities in Egypt Aberdeen venue tbc

Egypt’s extractive industries including oil, gas and mining, are an important part of its economy with a history dating back to the 20th century. However under investment has caused production declines and left Egypt a net energy importer. Egypt’s hydrocarbon resources are significant and under-developed, with gas requiring an estimated investment of US$21.1bn and exploration and petrochemicals jointly requiring investment of US$34.4bn. Attracting investment in the sector is a priority with a target of US$70bn to be invested by 2022. Join the EIC and UKTI for the Egypt Showcase for an overview of the region’s energy sectors, details of where the main opportunities lie and the support available to companies looking to do business across Egypt. Contact: julia.harte@the-eic.com

10 September Industry Overview

Fundamentals of FPSOs EIC Rio de Janeiro

Renewables

Humberside venue tbc Although the oil price has recovered somewhat, the fall has very much highlighted to the industry that in numerous cases, diversification is key to ensuring survival. Many are now including the renewable industry as a key element of their portfolio, but for others it still remains uncharted territory. This event has been developed to showcase some of the key sectors within renewables including offshore wind, energy from waste and biomass. The panel of speakers will be drawn from both the operator and contractor communities. Along with the provision of a case study which will offer some hints and tips on how to succeed in the sector, there will also be a session detailing a number of emerging export markets for renewables, specificlly solar. It will be of interest to companies that are already doing business in the sector along with those looking at it as a new opportunity. To register your interest contact: jennifer.hole@the-eic.com

22 September Industry Overview

Fundamentals of Natural Gas EIC Rio de Janeiro

Booking Now lauren.zoryk@the-eic.com Sign up for the EICOnline newsletter

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19

EIC training Steam and condensate systems – do you know the basics?

Steam is often the first choice of heating medium for product manufacturers and the best medium for sterilising, humidification and power applications. Despite this, many plant engineers have not undertaken specific steam system training and without an understanding of these fundamentals, it’s unlikely their steam system is running at its optimum. Steam systems have changed considerably over the last decade, with modern systems now much more energy efficient, they are virtually sealed, more automated, easier to maintain and require less maintenance. First-hand experience of working with such systems is of course a good foundation of knowledge, but the learning should not stop there. It is equally important that plant engineers also have a thorough, up-to-date understanding of the purpose and safe operational requirements of steam and condensate systems, as well as the factors affecting their performance and plant output. Therefore, when it comes to gaining an appreciation of steam and condensate systems, a practical hands on learning experience delivered by a steam specialist is essential. The EIC has collaborated with Spirax Sarco to provide delegates with an introduction to the safe operating requirements of a steam and condensate system.

An Introduction to Steam and Condensate Systems Topics covered: • The basic theory of steam fundamentals • Best practice for steam distribution • Identification of major components, function and purpose • Recognition and trace of essential fluid flow paths • Operating, selecting, installing and checking steam traps • Operating, selecting, installing pressure reducing valves • Condensate recovery By the end of the course, delegates will: • Understand the fundamentals of steam and its uses • Understand why condensate is formed • Understand condensate recovery and its benefits • Appreciate the value of condensate • Know the components of steam and condensate systems • Understand the importance of correct pipe sizing • Identify best practice in steam installation The next course will run on Friday 23 September 2016, delivered by Matthew Dunn and James Spicer, Technical Sales Engineers at Spirax Sarco UK. Sign up for the EICOnline newsletter

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Training with Spirax Sarco

Matthew Dunn originally joined Spirax Sarco South Africa as an Area Sales Engineer in 1979. Having relocated to the UK in 2005 he now works within the technical support team and is a regular part time trainer. James Spicer joined Spirax Sarco after completing his HNC in Mechanical Engineering and currently works as a Technical Sales Engineer. James is a regular part time trainer sharing his technical knowledge to deliver introduction and maintenance courses.

About Spirax Sarco

Spirax Sarco provides the products, services, expertise and training resources required to make the best investments in building and maintaining a steam or industrial fluid plant, from supplying an individual steam trap, to a complete new plant and everything in between. They can help their customers meet their business objectives, whether ensuring health and safety, reducing energy costs, boosting productivity, minimising maintenance, or delivering environmentally-friendly performance.

You may also be interested in: An Introduction to Control Valves Tuesday 4 October 2016 Severn Glocon This course, in Brighouse, examines the design, construction, selection and application of control and choke valves, severe service considerations and the consequences of poor specification and selection. A workshop tour will provide you with a practical insight into manufacture, assembly, instrumentation and testing. Contact: training@the-eic.com Follow @TheEICEnergy

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20

Middle East news Regional update

It is a great pleasure to announce the appointment of Fabrice Abalain as our new Regional Analyst. A native French speaker, Fabrice has hit the ground running and Terry W illis is already proving to be a valuable asset to the Dubai office. Should you have any queries relating to EICDataStream or would like to schedule some training sessions, then please do not hesitate to contact him. His direct line is +9714 602 6003, his mobile number is +97150 115 2698. You can email him: fabrice.abalain@the-eic.com This is the time of year when business activities are at their quietest. Souring temperatures coupled with the end of Ramadan and the Eid holidays, mean a lot of people take the opportunity to visit more temperate climates which naturally reduces the level of engagement that we have with our local membership. However, we continue with the delivery of our training programme and have a couple of new topics to offer which once confirmed we will announce in next month’s news. In the meantime, we are pleased to offer our traditional and very popular ‘Home Alone’ themed cheese and wine evening that is scheduled for Tuesday 6 September. Looking ahead, we are pleased to welcome new members CH2M HILL to the office on Tuesday 27 September. They will provide an update on their current activities as well as how members can work with them on current and future projects. In October we will be attending the Iranian Petroleum Congress at the beginning of the month and will follow this up with an updated Iran Showcase which we want to deliver in Dubai if possible so watch this space. November is always taken up with ADIPEC and once again, we will be looking for support with our reception which takes place on Sunday 6 September. Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com

Regional news

UAE Dewa selects Masdarled consortium to develop 800MW solar park in Dubai

A consortium led by Masdar and including Spanish companies Gransolar Group and Fotowatio Renewables Ventures has been selected to build the 800MW third phase of the Mohammed bin Rashid Al Maktoum Solar Park. The project will be constructed on an independent power producer model. The scheme will be developed in three phases. The 200MW Phase A will be commissioned by April 2018, the 300MW Phase B will be commissioned by April 2019 and the 300MW Phase C will be commissioned by April 2020. The Masdar-led consortium bid a world record low tariff of electricity for solar power of US$2.99 cents per kilowatt hour.

Qatar and Total create new company to develop the Al-Shaheen oil field

France’s Total announced on 27 June that it had signed an agreement to create a new company with Qatar Petroleum that will develop and operate the Al-Shaheen field, one of the world’s largest oil fields, located in Qatar. The new North Oil Company will be 70% owned by Qatar Petroleum with Total owning the remaining 30%. As part of the joint venture, the state-owned oil and gas corporation licensed the rights for the production, sale and export of the Al-Shaheen offshore oil field’s crude for 25 years starting July 2017. The Al-Shaheen field is Qatar’s largest oil field and produces around 40% of Qatar’s crude oil at around 300,000 barrels per day. Total said it plans to invest more than US$2bn in developing the field between 2017 and 2022.

Forthcoming events

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Please go to page 16 to see upcoming events in your region


21

Asia Pacific news Regional update

Currently, the top two countries in terms of value and number of projects in the Asia Pacific region are China and India. Despite Azman its reported lower growth Nasir rate in the overall economy for 2016-17, China still leads the energy sector compared to other countries in the region due to its continuously increasing energy demand. China is expanding out of its borders and is present in all the world’s continents. China’s international collaborations, funding of international projects and acquisition of foreign international companies keep making the headlines. China is also making remarkable progress in the renewables sector, and has huge solar, wind, tidal and waste-to-energy projects. Given the importance of this market we are in the process of organising a delegation to China in early 2017. India is another bright star in the region and, according to the IEA’s latest report, is projected to record higher energy demand than even China by 2035. It is one of very few countries in the world which continues to spend on the upstream exploration and drilling of oilfield wells despite the current low oil price. In fact, India is taking advantage of the much lower rates for drilling rigs and associated facilities by inviting all the relevant players to submit bids to its US$5bn development plan for the KG Basin. In June 2016, the country announced that it has allocated a budget of US$27bn for its oil and gas industry in its bid to increase domestic production. We encourage our members to consider China and India as one of their targets for business expansion for this year onwards. We are here to assist with preliminary introductions to the relevant industry contacts and can provide business advice on starting up in these two countries. Both China and India are keen to partner with experienced UK players in certain fields, particularly in the high value and high technology areas. UK companies have valid concerns about intellectual property rights issues, however, we believe that there are proven ways to address this when doing business in these countries. Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com

Regional news

Australia’s 28 blocks shortlisted

The Australian government has unveiled details about the offshore exploration blocks that are proposed for inclusion in the country’s delayed 2016 licensing round. The 28 blocks shortlisted are located offshore Western Australia in the proven Carnarvon, Browse and Bonaparte basins.

Pakistan US$2bn LNG pipeline contract agreed

The Karachi to Lahore pipeline project, known as the North-South pipeline, to transport imported LNG has been approved. Under the agreement, Russia has agreed to provide financing worth US$2bn for the project. In return, Pakistan will award Russia’s RT Global Resources the pipeline project.

South Korea and Russia to co-operate on nuclear reactor research

Russia’s Research Institute of Atomic Reactors and the Korea Atomic Energy Research Institute have signed a MoU on scientific and technical co-operation. The agreement covers research and development in nuclear fuel, non-fuel components and structural materials for advanced reactors; operation and maintenance of fast nuclear reactors, and nuclear fuel cycle technologies. South Korea plans to develop a prototype Generation IV sodium-cooled fast research reactor. The 150MW Korean research reactor is expected to start operations in 2028.

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

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22

North and Central America news Regional update On 30 June we welcomed Mr Thomas P Orr, Director – Business Development for Consolidated Contractors Company (CCC) to the North and Central America office.

Regional news

Amand

a Du

hon CCC is a leading diversified company carrying out construction, engineering, procurement, development and investment activities internationally.

Wood Group Mustang and Mexico’s Grupo Diavaz form joint venture Wood Group Mustang and Grupo Diavaz, a Mexican oil and gas operator and services company, have created a joint venture: Mustang Diavaz. It will provide EPC services to onshore and offshore facilities in Mexico’s oil and gas industry and provide pipelines for its upstream and midstream markets. As the country privatises its oil and gas industry, Wood Group hopes to strengthen its investments in Mexico by pairing with Grupo Diavaz, the country’s second largest energy company.

Mexico to launch new oil and gas auctions The CCC Group presentation

Mr Orr’s presentation gave an insight into CCC Group’s corporate structure, as well as detailing current and future projects, and procurement opportunities. His presentation also offered members key information about CCC Group’s business ventures worldwide especially in the energy space. We are grateful to Mr Orr for spending his valuable and limited time with the EIC and our members. We were delighted that Aggreko, Talos Energy and UK Trade & Investment accepted our invitation to speak at the Regional Showcase: Opportunities in Mexico event on 26 July. This event was really well received and provided members and non-members with an update on current and future supply chain and project opportunities with Mexican operators and contractors, and guidance on how to do business across the energy sectors in Mexico. Visiting Houston and need a desk or meeting room? Book your hot desk and/or conference facilities at the EIC North and Central America office in Houston, by contacting our Office and Events Associate Manager:

The first auction of Round Two was launched at the end of July and comprised 15 shallow water blocks. This will be followed by a second auction for 14 onshore blocks located in the Burgos Basin in northern Mexico and in the southeast of the country. Deepwater fields are scheduled for the fourth auction of Round One which will be held on 5 December. 24 firms, including Pemex, have signed up for the deepwater auction.

GE and Technip to co-operate on LNG digital solutions

The two companies have signed a memorandum of understanding to evaluate the application of digital solutions for the engineering, construction, commissioning, start-up and operation of LNG facilities. The joint project will use GE’s Predix cloud-based operating system. The two companies aim to improve productivity and cost-efficiencies by pairing GE’s equipment solutions with Technip’s EPC experience in LNG projects.

natalia.bueno@the-eic.com

Forthcoming Events

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Please go to page 16 to see upcoming events in your region


23

South America news Regional update

In August, after much anticipation and excitement, the Olympic and Paralympic Games finally come to Rio. The city will be full of athletes and tourists and it is estimated Clariss e Roch that more than 2.3m people a will pass through our wonderful city between 5 August and 18 September.

Located in the Parque Lage, the beautiful and historical botanical garden near the Olympic Park, is well worth a visit. For more information visit: www.britishhouserio.com

During the games, the British athletes will be housed at British House – the official residence for Team GB during the Games. British House will also showcase UK innovation and expertise in areas such as business, culture, education and tourism.

Regional news

San Alberto production dwindling

Gas production at the San Alberto field in Bolivia is decreasing and could stop in 2022, according to research carried out by local newspaper Pagina Siete. Once Bolivia’s most important gas field, San Alberto was responsible for 31% of the country’s gas production in 2006. Today, the field produces approximately 6MMcm/d, which is equivalent to 13% of the national gas output. Two other gas fields – Sábalo and Margarita-Huacaya – provide the bulk of Bolivia’s gas production, which today stands at approximately 36MMcm/d. Dwindling production and the lack of new gas reserves are a risk to Bolivia’s gas export agreements with Argentina and Brazil, which also import gas through LNG regasification terminals.

Harvest Natural Resources leaves Venezuela

The US-based oil and gas company has announced its departure from Venezuela following an agreement with CT Energy for the sale of its local assets in a deal worth US$80 million. Harvest’s departure is yet further evidence of Venezuela’s economic crisis, which has worsened with the steep fall in oil prices. Halliburton recently announced in May that it was scaling back operations in the country.

Marintec South America 2015

If you are planning to come to Rio during this period, you may want to consider extending your stay and taking the opportunity to visit Marintec South America. This trade show for the shipbuilding, maintenance and operations sectors will take place between 19-21 September and registration is free. Seventy-five leading companies have already confirmed their attendance. Among them are Wärtsila, Roxtec, Sotreq (Caterpillar), and ABB. For more information about this event please visit: www.marintecsa.com.br/en 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

Uruguay and Argentina in gas export deal

Uruguayan authorities have confirmed that excess gas imported by the future GNL del Plata LNG regasification terminal will be sold to Argentina. The terminal will have a capacity of 10 MMcm/d and it is understood that only 3MMcm/d m will be absorbed by the Uruguayan market. The two countries’ gas networks are connected by the Cruz del Sur pipeline.

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Contact us ABERDEEN TEESSIDE LONDON HOUSTON

DUBAI KUALA LUMPUR RIO DE JANEIRO

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

EIC Northern Region

Unit 1, Business Village Chapell Lane (South) Wynyard Park Teesside TS22 5FG Tel +44 (0)1642 379 973 Email teesside@the-eic.com

EIC Scotland

72 Carden Place Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com

www.the-eic.com

EIC Middle East

PO Box 54455 Office No 5WA 228 West Wing Building 5A Dubai Airport Free Zone Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com

EIC Asia Pacific

Lot 17-01 Level 17 Menara HLA No 3 Jalan Kia Peng 50450 Kuala Lumpur Malaysia Tel +603 2725 3600 Email kualalumpur@the-eic.com

@TheEICEnergy

EIC North and Central America

Suite 925 11490 Westheimer Houston Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com

EIC South America Ed. Manhattan Tower 26th Floor Avenida Rio Branco 89 20040-004 Rio de Janeiro - RJ Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com

Energy Industries Council (EIC)


Inside Energy August 2016