Inside Energy February 2017

Inside Photos Š 2003-2017 Shutterstock, Inc

Monthly news for EIC members February 2017 Find out how to export your

EICDataStream Sector Analysis

We assess the future of the biofuels market and the opportunities available for the supply chain

search results to an Excel spreadsheet

Overseas Events

Join the EIC team at the UK pavilion at Oil and Gas Asia 2017 in Malaysia

www.the-eic.com

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Sector analysis

Is there a future for biofuels in the global energy market?

Biofuels have played an increasingly important role in the global energy market in the past few years, progressing significantly in terms of fuel quality and performance since 2000. The production and consumption of biofuels peaked in 2010, and has fluctuated ever since. The high costs of production and competition from cheaper fossil fuels resulted in a decline in the demand for biofuel.

However, the biofuel market is expected to grow due to global environmental concerns and the need for new energy sources.

Biofuels such as ethanol and biodiesel are mainly used in the transportation sector, usually blended with fossil fuels or used on their own. According to BP’s Statistical Review 2016, global biofuels production grew by just 0.9% in 2015.

Brazil and the US accounted for the net increase, with production capacities of 27bn litres and 56bn litres, respectively, accounting for more than 85% of the total ethanol production in 2015, while large declines were observed in Indonesia and Argentina.

Global production of ethanol grew from 49.7bn litres in 2007 to over 88.2bn litres in 2010 (see graph) at an average annual growth rate of 21.4%. From 2010 to 2012 production decreased by 6.4%. Global ethanol production increased by 9.6% to over 97bn litres in 2015 compared to 2013 levels.

Hart Energy forecasted the ethanol production levels for the years 2010, 2015 and 2020 in their Global Biofuel Outlook released in 2010. It predicted that the Western Hemisphere is going to dominate the market, which aligns with the actual production. However, the actual ethanol production capacity was slightly lower than the 2015 forecast.

The profitability of biofuel is strongly influenced by its feedstock, in addition to high initial investments and installation costs. Another challenge is to ensure that biofuel production is sustainable. The EU has introduced strict biofuel requirements to shift from crop-based towards waste-based biofuels to meet the sustainability criteria. Finally, multinational oil companies have recently become supporters of biodiesel research, development and commercialisation.

Dina A

bieva

In 2015, Total started transforming its La Mede refinery in France into Europe’s biggest biorefinery to meet growing demand for biofuels. Total and Suez have recently signed a 10-year contract, where Suez will supply 20,000 metric tonnes of used cooking oil annually to the biorefinery to be processed into high-quality biodiesel.

The Danish government recently enforced a mandatory requirement to blend 0.9% biofuels, effective from 2020.

This places Denmark ahead of other countries such as Italy, which requires an advanced biofuel blending mandate of 0.6% by 2018. Italy’s Crescentino biorefinery currently produces 75m litres of ethanol annually and the government has announced plans to open three more plants to meet the biofuel demand.

Agricultural Outlook 2016 reported that global biodiesel production and consumption is expected to increase by 14% from 2016 to 2020 to meet current biofuel policies and to reduce greenhouse gas emissions.

This amounts to an increase in production of biodiesel to 37.9bn litres in 2020 from 33.2bn litres in 2016 and an increase in consumption to 38.1bn litres in 2020 from 33.5bn litres in 2016.

The EU is committed to reducing the use of fossil fuels and has set a target of 10% renewable fuel sources to be used in transportation by 2020; this includes the use of first generation biofuels. However, the latest proposal for a revised Renewable Energy Directive aims to gradually phase out crop-based biofuels, replacing them with advanced biofuels, produced from various types of biomass. The proposal’s objective is to increase the use of advanced biofuels from 1.5% in 2021 to 6.8% by 2030.

The opportunities for the supply chain in the biofuel market will continue to grow. These include providing advanced, innovative and cost-effective technologies, designing and constructing process equipment and supplying the feedstock.

Factors such as environmental concerns, the requirement of higher mandated biofuel blending in addition to uncertainties in fossil fuel prices may contribute to biofuels playing an increasingly significant role in the future global energy market.

Dina Abieva, Sector Analyst (Downstream) dina.abieva@the-eic.com

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

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Inside this issue...

This month’s issue of Inside Energy opens with an analysis of biofuels and their place in the global energy industry. With political and economic drivers to reduce carbon emissions in place since the historic COP21 climate change agreement this market looks set to flourish. The EIC’s Downstream Analyst Dina Abieva reviews the developments in this sector and opportunities for the UK supply chain to get involved (opposite).

As always, our EICDataStream section (page 4) gives you an update on a selection of exciting projects from around the globe. We also like to use this page to give our members some tips on how to make the most of this fantastic tool. This month we talk you through how to export your search findings to an excel spreadsheet. We’ve also developed a handy feature so the project names in your spreadsheet are hyperlinked to EICDataStream – it’s a real time saver.

Given the positive feedback that all of our EIC Connect events have received, we’ve decided to extend the format of this event into some other parts of the world. We’re thrilled that the first ever EIC Connect Oil & Gas USA is set to take place in Houston in October. Our EIC Connect events are all about helping supply chain companies, of all sizes, to meet with major operators and contractors and find out how they can work with them. As Houston is the energy capital of the world this should prove to be a really productive day. For more details check out our North and Central America news on page 18.

Another area where we’ll be particularly active over the next year is South East Asia. With energy demand set to increase by 80% over the next 20 years (source: the IEA) and regional governments committed to developing their energy sectors, this region is full of possibilities for UK companies.

Our Asia Pacific office is busy right now organising their own EIC Connect event scheduled for November (page 17). Before that we’ll be hosting the UK pavilion at Oil and Gas Asia 2017 (11-13 July), in Malaysia – one of the fastest growing energy markets in this rapidly developing region. To find out more about Oil and Gas Asia 2017 and why Malaysia should form part of your company’s expansion plans please turn to page 15.

For full details on all of our upcoming events please visit: www.the-eic.com Edward White, Editor and Communications Manager edward.white@the-eic.com

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Contents Sector analysis

2

Inside this issue...

3

EICDataStream 4 EIC training

5

New members

6

Member news

9

Social media round up 11 Forthcoming events

12

Overseas events

15

Middle East news

16

Asia Pacific news

17

North America news

18

South America news

19

Follow @TheEICEnergy

Join the EIC LinkedIn Group

4

Global opportunities INDIA

Vizag Refinery Expansion Operator: Hindustan Petroleum Corp Ltd Value: US$3.2bn Engineers India Ltd (EIL) has been awarded contracts worth US$365.8m for execution of the project, with a total project schedule of 43 months for mechanical completion. EIL will execute the project under two separate contracts.

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EQUATORIAL GUINEA

Fortuna FLNG

Operator: Ophir Energy Value: US$1.5bn Ophir announced that the project is still on course for an FID in the first half of 2017. Ophir 2016 expenditure was around US$170m and planned spending for 2017 is approximately US$150-200m.

UGANDA

Lake Albert Development Block 1 and 2 Operator: Total Value: US$2.2bn Total is to acquire part of Tullow’s stake in the project for US$900m, leaving Total with a 54.9% stake and Tullow with 11.76%. The agreement will allow the development to move ahead and increases the likelihood of an FID around the end of 2017.

For more information on these and the 7,500 other current and future projects we are tracking please visit EICDataStream

THE NETHERLANDS

Offshore Wind Farm Borssele V Operator: Netherlands Enterprise Agency Value: US$100m A consultation has opened on the draft regulations for the tender of the project. The rules of the tender will be published in Q3 2017, with the tender to open shortly after.

SWEDEN

Oskarshamn Nuclear Power Plant Decommissioning Operator: E.ON Value: US$1bn GE Hitachi Nuclear Energy has won a three-year contract to support dismantling of the two reactors. It will segment the pressure vessel internals of units 1 and 2 for final disposal.

Project hyperlink in Excel table

• EICDataStream allows you to export your search finding into an Excel table quickly and easily. Once you have run your search, simply click on the ‘Actions’ drop down in the top right hand corner and then click ‘Export Summary’. The search results

will be downloaded into an Excel spreadsheet: this is a real

time saver as you can save all your search results, meaning

you don’t have to re-run the same search in the future and also allows you to format and manipulate the data as you like.

• We’ve also added a special feature where the projects

exported to Excel are hyperlinked to EICDataStream, even

when you save, close and reopen the spreadsheet. Just click

on the project name and it will take you directly to the project’s page on EICDataStream.

Get in touch Share Need training your news on and EICDataStream? views...

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

PAKISTAN

Matiari – Lahore Transmission Line Operator: National Transmission & Despatch Company (NTDC) Value: US$1.5bn China has signed an agreement with Pakistan to invest US$1.5bn in the project. Work will begin in January 2017 and is expected to take 20 months to complete.

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EIC training Negotiation in business

In April 2011 Apple filed a lawsuit accusing Samsung of copying the ‘look and feel’ of the iPhone when creating their Galaxy line of products, this was followed up by accusations from both sides, suing, counter-suing and various posturing until early May 2012. Then, both companies began to show some willingness to compromise, for instance by cutting the number of patents under dispute by 50%, although still continuing to posture over other areas of disagreement.

Eventually, in late May 2012, Apple CEO Tim Cook and Samsung CEO Gee-Sung Choi sat down for mediated talks in an attempt to reach a settlement. But after two days the discussions ended in deadlock with both sides refusing to backdown or alter their positions. The suit later went to trial twice, with Apple ultimately winning more than $409 million.

A sobering example of negotiation in business.

Win-win or win-lose?

The above is a perfect example of a win-lose negation style; a style which enters a negotiation expecting that there will always be a winner and a loser. On the face of it, Apple won Samsung lost, but when you consider that Samsung is one of Apple’s biggest suppliers, really both sides lost out.

Not every negotiation must follow this win-lose pattern. By employing negotiation principles that reflect the importance of a mutually beneficial long-term relationship and strategies that maintain flexibility and work to achieve collaborative agreements, the outcome could have been very different.

There’s no escape from negotiations You too are a negotiator. Whether you negotiate with your partner about where to go for dinner, with your child about when the lights go out or as part of a group of oil companies planning a joint exploration venture, the basic principles remain the same. Negotiation is a basic means of getting what you want from others. A process of bargaining in which two or more parties with differing aims or intentions reach an agreement which accommodates both requirements.

Why invest in improving negotiation skills?

More and more occasions require negotiation. People demand involvement in decisions that affect them and fewer are willing to accept decisions dictated by someone else.

Humans differ and they often use negotiation skills to handle these differences, but although negotiation takes place every day, it is not easy to do well. Commonly used strategies often leave people feeling dissatisfied, worn out or alienated. But by harnessing good, positive negotiation skills you can benefit on both a business and personal level.

Positive negotiation can improve business relations, avoid conflict and help provide a better understanding of others aims and motivations. This in turn will allow you to be more efficient, build self-esteem and foster trust and respect.

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To help you improve your skills the EIC will be hosting a one day Negotiation Skills training course on Tuesday 7 March.

Delivered by Alan Evans, you will learn what it takes to be a great negotiator, from suitable preparation, planning and priorities to identifying your own style and effectively using signals and bargaining techniques.

You will practice new techniques while receiving constructive feedback.

You may also be interested in:

Bidding to Win – How to Beat the Competition without Cutting Prices Thursday 15 June 2017 EIC London

SMEs – How to do Business with International Contractors

Tuesday 4 July 2017 EIC London

Contact: training@the-eic.com

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Join the EIC LinkedIn Group

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New EIC members NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

APT Transtelex

Bowman Power Group

Galperti UK Ltd

Unit 6, The Mews 6 Putney Common London SW15 1HL

Ocean Quay Belvidere Road Southampton SO14 5QY

Standard House Weyside Park Godalming GU7 1XE

The Nominated Representative is Mr Darren Pigott, Sales Director

The Nominated Representative is Mr Simon Ashby, Global Sales Manager

The Nominated Representative is Mr David Watson, Director

Telephone +44 (0)20 8246 4050

Telephone +44 (0)23 8023 6700

Telephone +44 (0)1295 760 880

Email darren@aptlimited.co.uk

Email sashby@bowmanpower.co.uk

Email david.watson@galpertiuk.com

Web www.aptlimited.co.uk

Web www.bowmanpower.com

Web www.galperti.com

APT provides technical translation services to the energy sector, working with companies such as EDF Energy (Hinkley Point C), ENI Engineering E&P, WorleyParsons, Bechtel, Petrofac and Mott MacDonald.

Bowman Power Group was founded in 2004 to improve the energy efficiency of reciprocating engines.

Galperti UK Ltd is part of the Galperti Group of companies which includes Officini Nicolas Galperti & Figlio SpA, Galperti Engineering & Flow Control SpA, Galperti Tech SpA and Galperti Forged Products, all based in Colico, Italy.

APT translates documentation such as I, O & M data, training and eLearning materials as well as AutoCAD and Microstation drawings for contract specific work such as Kashagan, Tengiz and Karachaganak.

APT puts together teams of translators to accommodate volume project work when required, and the company also translates bids and tenders, websites and product brochure information. APT is an ISO 9001 organisation, and is a registered member of Achilles FPAL.

Get in touch Share your news and views...

Electric Turbo Compounding (ETC) energy recovery technology delivers a step change in efficiency and can cut fuel consumption and CO2 emissions by 4-7%, or generate up to 10% extra power.

The ETC system is used by engine and genset manufacturers, power rental companies, and independent power producers to enhance competitive advantage and provide greater value to their customers, through improved genset energy efficiency.

The company’s ETC technology helps deliver power to some of the most remote and operationally challenging locations in the world.

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

The company has its own in house forging plants (two) and heat treatment plant and the product range includes: flanges; special forged products – pipe, bulkheads, wye pieces, tees, etc; ball valves – double block and bleed, subsea and topsides; hub connectors; roller bearings.

All of the manufacturing plants have full in-house capability from design and engineering through machining to testing for all of the above forged products and have sales and support offices around the world.

New EIC members

NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

NEW GLOBAL MEMBER

Ingersoll Rand

International Pipeline Structural Solutions Ltd

Ziztel Ltd

Harrow House Bessemer Road Basingstoke RG21 3NB

Cirrus Building 6 International Avenue Dyce AB21 0BH

96 Rolleston Drive Arnold Nottingham NG5 7JP

The Nominated Representative is Mr Trevor Grabau, Product Manager

The Nominated Representative is Mr Erik Bjorkelund, Sales/Business Development

The Nominated Representative is Mr John Spain, Business Development Director

Telephone +44 (0)8457 165 162

Telephone +44 (0)1358 280 498

Telephone +44 (0)115 920 2888

Email trevor.grabau@irco.com

Email erik.bjorkelund@ipssltd.com

Email jspain@ziztel.com

Web www.ingersollrandproducts.com

Web www.ipssltd.com

Web www.ziztel.com

Ingersoll Rand Plc, a public limited company incorporated in Ireland in 2009, is a diversified, global company that provides products, services and solutions to enhance the quality and comfort of air in homes and buildings, transport and protect food and perishables, and increase industrial productivity and efficiency.

International Pipeline & Structural Solutions Ltd is fast becoming a market leading supplier of pipes, fittings and flange packages as well as the adjoining packages of gaskets, studbolts and structural steel commodities. Currently the company is servicing clients worldwide in the oil and gas markets as well as the nuclear and mining sectors.

Ziztel is a UK based company specialising in the design and manufacture of innovative CCTV, public address and general alarm (PAGA), main broadcast (MBS) and intercom/talkback systems for the global oil and gas, petrochemical, marine, defence and power generation industries.

Business segments consist of climate and industrial, both with strong brands and leading positions within their respective markets. The company generates revenue and cash primarily through the design, manufacture, sale and service of a diverse portfolio of industrial and commercial products that include well-recognised, premium brand names such as Ingersoll-Rand®, Trane®, Thermo King®, American Standard®, ARO®, and Club Car®.

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IPSS is fully committed to supplying quality products and all of its supply chain is covered

by ISO 9001:2008 standards which are regularly monitored on quality and performance based on this accreditation. IPSS can also back this supply chain up with the highest level of in-house technical expertise meaning clients always have the confidence that the company can deliver what it promises.

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

The company delivers high quality standard and bespoke solutions for use in both large and small projects throughout the world to major end users, contractors and systems integrators.

Ziztel’s products aim to be smaller, lighter and more efficient than its competitors, leading the field in reliability, functionality and technology within an extremely competitive price package.

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9

Member news Aquasign launches new underwater identification system guidance documents Topside and subsea signage solution specialist Aquasign has introduced new guidance documents to help customers during the development of BOMs and drawings to ensure a fit for purpose underwater identification system is specified and meets the requirements for subsea use.

Subsea Markers Pre-Qualification outlines the minimum standard testing requirements to guarantee the identification system can withstand typical transportation, storage, deployment and long-term subsea environmental conditions.

Specifying Aquasign® provides a technical overview of its unique and guaranteed Aquasign® system including anti-fouling properties, fixing solutions, design, preservation as well as recommended wording that can be used in project documents.

Both of these new guidance documents can be viewed at Aquasign’s Download Area within the Client Portal section of its website. Simply sign-in or complete the short registration form.

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For more information: www.aquasign.com

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DTL: providing custom engineered solutions for over 50 years Damper Technology Ltd (DTL) is an industrial damper manufacturer with over 50 years’ experience providing custom damper solutions.

DTL not only supplies standard products like butterfly dampers and multilouvres. Although these key products are essential parts of the product portfolio, DTL engineered solutions are increasingly in demand.

Their innovative designs come in many configurations.

One of the principal products that DTL is renowned for are stack dampers with the market being very familiar with DTL large size in-stack louvres. No matter the size of the stack, these dampers are used for energy conservation, reduced thermal cycling and faster system start time. However, for some applications stack cap dampers should be considered as an advantageous alternative.

Stack cap dampers provide all year weather protection and are very practical on smaller diameter exhausts.

Stack cap dampers are often counterweighted, either to provide pressure relief at precise set points or to assist with fail mode as required.

DTL can design a damper specifically for your application. From its head office and manufacturing plant in the UK, subsidiaries in India, North America and Denmark, and through a network of agents and licensed manufacturers, DTL offers a wide range of quality damper products and custom packages for industries worldwide.

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For more information: www.dampertechnology.com

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Green’s new identity to support bold expansion aims Greens Power has rebranded as Green’s. This includes a new logo with a more modern look and feel while retaining a link to the company’s heritage and origins. Based in Wakefield, West Yorkshire, with an extensive network of international agents, Green’s was established in 1821 and specialises in the design, specification and supply of economisers and waste heat recovery systems to the power generation (including biomass, waste to energy and conventional fuels), industrial, petrochemical and marine markets.

The company has ambitious growth plans which are being supported by the significant investment it has received from Rcapital. This has enabled substantial capital investment in new manufacturing equipment for its 4,800m sq factory as well as the introduction of new apprenticeship and graduate engineer recruitment and training schemes.

Green’s has also recently achieved American Society of Mechanical Engineers (ASME) certification, alongside its existing ISO, EN and PED accreditations.

ASME certification is for the design, fabrication, assembly, and inspection of boiler and pressure vessel components.

It is recognised by customers around the world as the key method of assessing the quality of suppliers’ processes and product manufacturing.

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For more information: www.greenspower.co.uk

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Member news

Iqarus to open Aberdeen training centre for offshore medics

Healthcare and medical solutions company Iqarus has launched a new training centre for offshore medics, emergency response teams and people who work in remote and challenging environments.

The site, in Dyce, Aberdeen, includes more than 4,000sq ft of state-ofthe-art clinical training rooms, classrooms and instructor offices.

The new site will host bespoke medical and hostile environment training programmes, delivered by Iqarus’ team of eight full time trainers, for remote and offshore medics, first responders, media, international travellers and executives.

Over £1m has been invested to design, build and construct the centre, which will also host offshore medic training, making the Aberdeen-based site one of the most advanced training facilities anywhere in Europe.

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For more information: www.iqarus.com

NOV Gateshead achieves Fit for Nuclear accreditation

Raytec moves to new HQ

NOV’s Gateshead engineering and manufacturing facility has been granted Fit for Nuclear (F4N) accreditation. Developed by Nuclear AMRC, F4N lets companies measure their operations against the standards required to supply the nuclear industry.

The site comprises 62 CNC lathes and a 15 CNC machining centre, which has a range of 400mm to 2m, and can cater for loads of up to 6.5 tonnes.

It has a fabrication and assembly area with the capacity to lift 25 tonnes, 11 welding bays with weld overlay capability, an in-house specialist paint shop and 14 pressure testing bays equipped to deal with tests of up to 30,000psi.

As well as its recently acquired F4N badge, the site is also accredited to ISO 9001, cyber essentials, and API Q1 standards.

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For more information: www.nov.com

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

The move to the new 30,000sq ft premises in Ashington, Northumberland is to support Raytec’s plans for continued growth in 2017 and beyond – providing nearly three times the amount of space for expansion.

We have always been proud that all of our illuminators are designed and manufactured in the UK. We’re thrilled to be moving to our new premises and staying in the local area – just 100 metres down the road in fact. Crucially, the new facility will allow us to tackle more challenging projects and provide quicker lead times for our customers David Lambert, Managing Director (Joint), Raytec

Raytec luminaires are well known for delivering the ultimate in quality and reliability – built on a long history of successful innovation. The move to larger premises will allow Raytec to increase its production capability and continue to build its team of lighting experts even further.

© 2017 National Oilwell Varco

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Leading hazardous area lighting manufacturer Raytec has moved to a bigger and better facility.

Raytec’s hazardous area LED lighting division has seen exponential growth in the last few years. The new move will support Raytec’s plans to extend this product portfolio even further.

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For more information: www.raytecled.com

New EIC members Social media Member round news up

Servelec completes North Sea platform fire and gas system migration

Copyright © 2017 Statoil ASA

Servelec Controls has successfully completed the live upgrade from a Wormald 2003B fire and gas detection and control system to the SCAME Sistemi S81-HS range of equipment at a North Sea platform, its third successful offshore upgrade from Wormald to SCAME equipment with several further projects planned.

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 The EIC is managing the UK pavilion at @OTCHouston 1-4 May. With a few stands remaining, book today http://bit.ly/2j4wDvL

The main drivers for the upgrade were to install a more cost effective and reliable system that would minimise downtime on the normally unmanned installation. Servelec’s innovative approach reduced the previous offshore engineering time by more than 40 man-days and resulted in a successful live transfer with zero platform downtime.

Following successful commissioning of the new system, Project Manager Kevin Hilton said, ‘We work closely with our customer on a daily basis to offset the challenges that naturally come with operating and maintaining a high number of ageing brownfield assets. In this instance the SCAME Sistemi S81-HS was a perfect fit for replacing the Wormald fire and gas equipment, offering great scalability, flexibility and cost efficiency.’

The EIC @TheEICEnergy New Year breakfast @TheEICEnergy’s Asia Pacific Office. #Indonesia & #Vietnam the next key markets to explore

Energy Industries Council (EIC) On 16 January, the EIC held a round table event with the RH Greg Hands, 12 leaders from EIC companies and DIT representatives

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For more information: www.servelec-controls.com

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February 2017

Forthcoming events 2 February Business Presentation

EIC Round Table with UK Ambassador for Indonesia EIC London

4 February Industry Overview

Fundamentals of FPSOs EIC Rio de Janeiro

9 February HSE Training

Pressure Equipment Directive Lloyd’s Register, EIC London

10 February Corporate Entertainment

Topgolf

Topgolf, Houston

14 February Overseas Exhibition

Egypt Petroleum Show (EGYPS) CICEC, Cairo

16 February Corporate Entertainment

EIC Middle East Golf Tournament 2017

March 2017

The Els Club, Dubai

2 March Technical Workshop

16 February Management Course

EICDataStream Overview EIC Rio de Janeiro

20 February Overseas Delegation

Overseas Delegation to Kuwait Kuwait City

21 February HSE Training

The ATEX Directives SGS Baseefa, Buxton

21 February Management Course

EICDataStream Overview EIC Houston

23 February Business Presentation

Scottish Member Update Aberdeen venue tbc

This is the next in the series of highly successful member update events which take place at regular intervals across the UK. This event will focus on private equity investments and include a UK and Norway project update from the EIC Upstream Sector Analyst, Chad Barnes.

The member update event will be followed by the regional Annual General Meeting.

8 March Industry Overview

Introduction to Compressors

Fundamentals of Oil and Gas

7 March Management Course

15 March Technical Workshop

Dresser-Rand, a Siemens Business, Frimley

Negotiation Skills EIC London

in touch Share news views...

GetGet in touch Share youryour news andand views...

Email newsdesk@the-eic.com • Phone (0)20 Email newsdesk@the-eic.com • Phone +44 +44 (0)20 70917091 86008600

Nassima Royal Hotel, Dubai

Introduction to Energy from Waste Lakeside EfW, Slough

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

March 2017

Forthcoming events

15 March Business Presentation

Opportunities in Vietnam Vietnam venue tbc

16 March Industry Overview

Fundamentals of Nuclear

National Skills Academy Nuclear, EIC London

16 March Management Course

EICDataStream Overview EIC Houston

23 March Management Course

EICDataStream Overview EIC Rio de Janeiro

27 March Overseas Delegation

Overseas Delegation to Uganda

April 2017

Kampala and Lake Albert

11 April Industry Overview

Fundamentals of Upstream EIC Houston

13 April Management Course

Effective Appointment and Management of Local Agents EIC London

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

28 March Technical Workshop

Introduction to Joint Integrity HTL Training Services, Cramlington

28 March Export Showcase

Opportunities in the Norwegian Sector Aberdeen venue tbc

This showcase will highlight the current and future upstream opportunities in the Norwegian sector and provide tips on how to do business in the market with one-to-one meetings with speakers.

30 March Industry Overview

Fundamentals of Natural Gas EIC London

30 March Sector Showcase

Power, Nuclear and Renewables Showcase EIC London

25 April Sector Showcase

Opportunities in Iran H Hotel, Dubai

27 April Technical Workshop

Introduction to Centrifugal Pump Design and Manufacture SPP Pumps, Coleford

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13

23 May • Dusit Thani, Abu Dhabi, UAE

15

Overseas events Oil & Gas Asia (OGA) 2017

11-13 July, Kuala Lumpur

Taking place on 11-13 July in Malaysia, OGA 2017 is expected to attract over 22,000 delegates from around the world, many of whom will be representing Malaysia’s major operators and contractors.

With the country focused on enhanced oil recovery from its maturing fields, these procurement specialists will no doubt make a beeline for the EIC hosted UK pavilion, aware that the skills and products developed at complex brownfield sites in the North Sea can also be used to maximise recovery and enhance efficiencies at their own fields.

Likewise, Malaysia, with proven resources of approximately 4bn barrels of oil and 83tn cubic feet of natural gas and a government committed to increasing its oil, gas and energy sector by 5% annually, is a very attractive market for the UK supply chain. OGA is designed to let you explore the wealth of opportunities offered by such resources.

Being part of the EIC’s UK pavilion not only puts you at the heart of the exhibition and allows you to benefit from the international renown which the UK oil and gas industry enjoys, it also means you can make the most of the EIC staff at the event. Based at our Kuala Lumpur office, they know all the regional players and will do all they can to facilitate meetings with these, as well as help you to find a local partner. Essential for those companies looking to expand into the Malaysian market, OGA is the ideal event to meet your in-country partner company.

Expansion is a key strategy during the current downturn in the oil and gas industry, and more and more UK companies are thriving as a result of broadening their horizons.

South East Asia is one of the world’s fastest growing regions, with the International Energy Agency estimating that over the next 20 years its energy demand will surge by 80%. The region is also expected to receive record levels of offshore investment over the next five years, where local capacity will need to be supported by foreign expertise. For those companies wishing to establish themselves in the region, Malaysia is the perfect place to start.

OGA is the only event where you can find out about the opportunities offered by the rapidly growing Malaysian market, learn about the regional operators’ procurement and project requirements, as well meet with potential local partners. For more information please visit www.the-eic.com

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Oil & Gas Asia 2015

UK pavilions The EIC’s Overseas Events department manages the UK national pavilion at approximately 10 to 12 international energy exhibitions every year.

These events provide an invaluable opportunity for companies to access markets and make vital contacts with key players, under a UK umbrella. The EIC provides each exhibitor with a prime location at the show, an innovative UK branded stand, promotion through industry targeted publications and various networking opportunities.

For more information on upcoming events and the benefits of exhibiting with the EIC please contact mark.gamble@the-eic.com

Upcoming events with EIC hosted pavilions

Offshore Technology Conference (OTC) 1-4 May 2017 Houston

Offshore Europe 2017

5-8 September 2017 Aberdeen

ADIPEC 13-16 November 2017 Abu Dhabi

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16

Middle East news Regional update

Last month we launched the updated section of the EIC website dedicated to the Dubai office. Then, after attending the UAE Energy Forum followed by the Iran Terry W illis Petroleum Conference, we find ourselves this month in Egypt and Kuwait as well as hosting our very popular golf tournament.

We are proud to be able to feature a UK pavilion at the Egypt Petroleum Show, a brand new oil and gas show for the region. We are already aware from our delegation last year, that Egypt offers a magnitude of opportunities for UK companies. Our golf tournament on 16 February remains a popular date in the calendar and we are sure that there will once again be a great competitive atmosphere in the chase for the coveted trophy.

Immediately after the golf tournament, we will be in Kuwait leading our delegation. We are grateful to the Kuwait British Business Centre for arranging such an excellent programme of meetings. The delegates will have the opportunity to meet all the key people within the Kuwait oil and gas sector, the importance of which cannot be overstated given that the Kuwait market has much to offer in both the upstream sector with the Kuwait Oil Company as well as downstream where Kuwait National Petroleum Corporation is building a brand new state-of-the-art refinery.

Our delegation to Uganda is scheduled for the end of next month. East Africa, led by the developments in Mozambique, is a new source of potential business for EIC member companies and it is our intention to ensure that every opportunity is offered for companies to engage with these frontier markets.

Closer to home, preparations are now in full swing for EIC Connect Oil and Gas UAE on 16 May. Full details of the programme, sponsorship opportunities and attendance can be found on the EIC website.

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

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Regional news

Petrofac wins US$600m contract for Salalah LPG

Petrofac has been awarded by Salalah LPG, a wholly owned subsidiary of Oman Oil Facilities Development Company LLC (OOFDC), a contract worth US$600m to undertake the engineering, procurement and construction for the LPG extraction plant project located at Salalah freezone, southern Oman. The scope of work is a 36-month lump sum contract for the construction of the liquefied petroleum gas (LPG) unit and associated facilities, including tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah.

Jacobs, WorleyParsons and Wood Group bag 5-year GES+ contract extensions Jacobs, WorleyParsons and Wood Group have all renewed their 5-year general engineering services plus (GES+) contracts with Saudi Aramco for an additional 5-year period with the potential for up to three additional one-year increments. Scope of the GES+ contracts include the provision of project management, and preliminary and detailed design engineering services across a variety of onshore, green and brownfield projects in the oil and gas and infrastructure sectors.

Forthcoming events

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Event sponsored by EIC Middle East

17

Asia Pacific news On 10 January we held a breakfast session to celebrate the start of the new year with members in the region and also to provide a platform Azman for members to network Nasir with each other. A total of 33 member companies attended the event together with invited guests from the Malaysian Oil & Gas Services Council and the British Malaysia Chamber of Commerce. During the session I gave a presentation on the outlook of the oil and gas market in the region with a special focus on Vietnam and Indonesia.

For the rest of the first quarter 2017, EIC Asia Pacific is planning to hold at least four more events which are a business presentation in Bangkok, Thailand in February, a business presentation by Aker Solutions in Kuala Lumpur also in February, another business presentation in Ho Chi Minh City, Vietnam in March, and lastly the Fundamentals of FPSOs and Subsea training courses led by our ever popular trainer, Dr John Preedy, in March.

From April, our efforts will be geared towards our new supply chain event which is planned for November 2017 in Jakarta, Indonesia. The event, organised jointly with the Indonesian oil and gas regulator, SKK MIGAS, will involve most of the production sharing companies in Indonesia. The EIC and SKK MIGAS are currently in discussion on the actual format but it has been generally agreed that the event will emulate the hugely successful EIC Connect events. SKK MIGAS is very keen to work with the EIC as they are of the opinion that EIC members have the technology and expertise they require in their quest to expand their oil and gas production and meet the ever-increasing energy demands in the country.

Prior to the event in November 2017, EIC Asia Pacific will organise two related events in May and August in two different cities, Kuala Lumpur and Singapore, to attract member participation in the main event in November.

2017 will be another challenging year for all industry players as the oil price continues to hover around US$50 to US$60 per barrel. We shall continue to assist our members to identify opportunities in the region despite the challenging market conditions by organising suitable specialised events in different cities. EIC Asia Pacific will continue to work closely with our regional partners such as the Department of International Trade (DIT) and the British Chambers in various cities around the region.

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

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Regional news

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Regional update

India and Vietnam sign nuclear pact

India and Vietnam have signed a civil nuclear cooperation agreement that will further strengthen the comprehensive strategic partnership between the two countries. The co-operation, which is focused on research on nuclear reactors, will get underway once India obtains membership of the Nuclear Suppliers Group.

South Korea’s SK Innovation to invest up to US$2.5bn

SK Innovation, which owns South Korea’s top refiner SK Energy, is planning to invest up to US$2.5bn in chemicals, oil exploration and battery businesses to boost its global growth. Under the plan, the company aims to continue its investment in mergers and acquisitions in chemicals and the oil exploration sectors as well as the expansion of its battery plants.

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18

North and Central America news Regional update

Mexico closed out 2016 by holding its first auction for deepwater oil blocks in the Gulf of Mexico. The country awarded eight out of its ten auctioned blocks, capitalising on its economic Amand a Duho n reforms and rebounding oil prices. BP, Chevron, ExxonMobil, Statoil and Total all won block tenders, while Chinese state oil company CNOOC was the sole company to win two blocks. At the beginning of 2017 EICDataStream is tracking 149 active and future projects in Mexico, with nine of those projects currently listed in the tendering and bidding stage.

We are now hosting monthly, free EICDataStream training sessions at our Houston office, the next one will be on 16 March. We also have state-of-the-art video conferencing capabilities and can host bespoke training via video across the region. For more information please contact natalia.bueno@the-eic.com Interested in Trinidad and Tobago? I recently visited the region to attend the Trinidad and Tobago Energy Conference and Tradeshow on 23-25 January. I was among 1,400 global delegates including senior decision makers from C-level, supply chain, finance and operations of the major upstream, midstream and downstream operator companies in Trinidad and Tobago. The EIC and the British High Commission in Trinidad and Tobago will work to deliver a regional showcase event in the coming months to share market intelligence and provide guidance on doing business in Trinidad and Tobago. For further information, please contact amanda.duhon@the-eic.com We look forward to hosting our golf event at TopGolf Houston-Katy on 10 February 2017. This event will be a great afternoon spent enjoying a timeless sport while meeting valuable contacts within the energy industry.

We would like to thank LoneStar Fasteners for their sponsorship and continued support of the Houston events and training programme.

Houston is at the centre of the global energy industry, and a local presence is important. If you need assistance in the region, or information about our EICLaunchPad services (hot desks, conference facilities, virtual and serviced offices), and upcoming events and training, please contact natalia.bueno@the-eic.com Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com Get in touch Share your news and views...

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Regional news

United States exports record amount of oil products

During the last week of December US refiners exported almost 4m barrels a day of gasoline, distillates, and heating oil, and propane. Refiners in Texas and Louisiana processed the most crude in 24 years to meet rising Latin American demand as competitors in Mexico and Venezuela struggle to operate at capacity due to maintenance issues.

Range Resources hits pay in Trinidad

The London-listed company finished its five-well campaign after completing drilling operations at its GY 681 well on the Beach Marcelle field. The well was planned to be drilled to 1,372 metres, but drilling costs were reduced after Range hit its main target early at 1,340 metres. Shares in the company increased 12.2% in London after Range reported encouraging log evaluations on the well.

Forthcoming Events

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19

South America news Regional update

While February is Carnival time in Brazil, it’s also a good time to start planning for UK Energy in Brazil 2017, which will take place at the Windsor Atlantica Hotel, Rio de Janeiro on 21 Clariss e Roch March. This unique event a aims to showcase the capability that the British supply chain can deliver to the energy industry in terms of expertise and innovation related to equipment, services and technology. Companies interested are welcome to join a trade mission to Brazil focusing on the construction and maintenance of marine and offshore assets, that is being supported by the EIC. In the 5th edition of this event the EIC, alongside the Department for International Trade (DIT), will host an afternoon panel with operators who will share their experiences and expectations of the Brazilian oil and gas industry focusing on pre-salt activities, new exploratory boundaries, bidding rounds, the impact of the local content policy, new technologies and opportunities for suppliers. For further information or if you wish to attend, please contact the Rio office.

Ahead of UK Energy in Brazil 2017, we will be hosting our Fundamentals of FPSOs, which explains the main features and applications of an FPSO platform. Visit our website for full course details and to book your place.

Enaval Procurement Manager Eduardo Pires presenting

At the end of 2016 we received a brilliant presentation from Enaval who shared their project opportunities with delegates. Petrobras’ Mexilhão PMXL platform expansion was the main topic under discussion. The project, engineered by Radix Engenharia e Software, has lots of opportunities related to the accommodation modules for P-19 and the maintenance of the Cabiúnas terminal. To find out more, please login to EICDataStream.

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

Regional news

Petrobras sells US$13.6bn in assets in 2015-16

Petrobras has sold US$13.6bn worth of assets over the last two years following an ambitious divestment programme announced in 2015. Notable transactions include the sale of a 2,727km gas pipeline network in south-eastern Brazil to Brookfield Asset Management for US$5.19bn and the sale of the Carcará field in the pre-salt province to Statoil for US$2.5bn.

Brazil seeking foreign partnerships for Angra 3

Last December the Brazilian nuclear power plant operator Eletronuclear signed a MoU with the China National Nuclear Corporation (CNNC) for a possible partnership in the construction of the 1.4GW Angra 3 nuclear power plant, which was suspended in 2015.

Eletronuclear has also approached EDF, Kepco and Rosatom, which have scheduled visits to the project site in the state of Rio de Janeiro.

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Chile to add 1.5GW of renewable capacity in 2017

The country’s power generation matrix will feature 1.5GW of new capacity this year from wind, solar, biomass, small hydros and other non-conventional renewable sources, according to Acciona Energia Chile.

These projects have been successful in recent electricity auctions, competing with traditional sources such as conventional hydro and gas-fired thermal power plants.

Chile, one of the fastest-growing PNR markets in South America, had 4,150MW of non-conventional renewable capacity at the end of 2016.

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