Inside Energy January 2020

EIC Inside Monthly news for EIC members January 2020

Sector analysis

One-to-one

South America’s energy market: the year ahead

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Spotlight on technology

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Meet the new CEO of Alderley

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Sector analysis South America’s energy market: the year ahead South America is not usually among the world’s trending topics, but in 2019 the region drew a fair deal of attention.

Major political shifts to the left and right, sweeping street protests, a coup d’état and the devastating Amazon fires made the headlines last year. Things were no different for the regional energy sector: Argentina became an LNG exporter, Brazil established itself as the world’s leading floating production storage offloading (FPSO) market, Chile made the bold decision to close its coal-fired power plants while Guyana’s string of oil discoveries made it the darling of the oil and gas sector. What’s in store for South America’s energy market in 2020?

All roads lead to pre-salt

The development of Brazil’s massive pre-salt oil reserves has been a priority for the country over the last decade and this is set to continue. Petrobras’ latest business plan allocates 85% of its US$75.7bn investment forecast for 2020-2024 to exploration and production work, with a strong focus on the development of pre-salt fields. The company plans to install 13 new FPSOs over the four-year period, of which nine units are associated with pre-salt areas. Bids for the supply of the Itapu and Mero-3 FPSOs are due this February and March, respectively, while tenders for the sixth Búzios FPSO and the first FPSO for the Sergipe-Alagoas basin are expected later in the year.

Equinor and Shell, meanwhile, are also expected to award contracts for FPSOs to be installed at the Carcará and Gato do Mato pre-salt fields, respectively.

Vaca Muerta is alive

Argentina’s dead cow is pretty much alive and, like Brazil’s pre-salt, the Vaca Muerta shale play has become the main target for the national oil company YPF and IOCs operating in the country. Shale gas resources now account for more than a third of Argentina’s gas supply and growing production has allowed the country to export LNG – employing Exmar’s Tango FLNG vessel – for the first time. YPF has bold plans to install a US$5bn LNG liquefaction terminal in Bahía Blanca, having awarded a pre-FEED contract to McDermott in 2019. Local reports have indicated that construction could begin in 2020 or 2021, with start-up five years later.

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No more coal

In June 2019, Chilean President Sebastian Piñera announced a plan to close all coal-fired power plants in the country by 2040 as part of its goal to become carbon-neutral by 2050. Chile’s 28 coal plants, operated

by AES Gener, Colbún, Engie and Enel, currently provide about 40% of the country’s electricity. The four players, which have agreed on a gradual decommissioning plan with the government, are set to replace this capacity with a variety of projects in the hydro, solar and wind segments. Colbún is already negotiating with contractors for the construction of its 607MW Horizonte wind farm in Antofagasta, which will be one of Latin America’s largest wind farms on completion.

An oil bounty

Guyana became the world’s newest oil producer following the start-up of the 120,000b/d Liza Destiny FPSO in December 2019. Deployed at ExxonMobil’s Liza field, the FPSO is the first of at least five units that will be installed on the prolific Stabroek block, which is estimated to contain more than 6 billion barrels of recoverable oil reserves. ExxonMobil, which announced the 15th discovery on the block last December, is expected to make a final investment decision (FID) on the Payara development during the first quarter of 2020, with SBM Offshore in line to be awarded an EPC contract for a 220,000b/d FPSO.

Looking ahead

A lot more is going on in the region, across all energy sectors: Argentina is building massive hydro power plants, Brazil may finally resume work on its third nuclear power plant this year, Colombia now has a diverse portfolio of wind and solar projects after its first ever renewables auction in 2019, while Suriname has just announced a major oil discovery. It is also noteworthy that many South American countries are firmly committed to the energy transition process, creating opportunities not just in renewables but also in gas-related projects. As 2020 begins, the supply chain is set to take advantage of a wealth of opportunities in South America’s energy market.

Pietro Ferreira Senior Regional Analyst (South America) pietro.ferreira@the-eic.com

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

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Inside this issue...

As we enter 2020 EIC would like to wish you all a happy new year and a productive year ahead.

Lucy C

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akaod za In this first edition of Inside Energy for 2020 we hear from Colin Elcoate, the newly appointed CEO of Alderley. He outlines his organisation’s plans to diversify into new markets, how the company has managed to remain strong despite the recent downturn and reflects on the company’s many achievements, as it celebrates 30 years in the business.

EIC Senior Regional Analyst, Pietro Ferreira, looks at what’s in store for South America’s energy market. He notes that many South American countries are firmly committed to the energy transition process, creating opportunities not just in renewables but also in gas-related projects. As 2020 begins, the supply chain is set to take advantage of a wealth of opportunities in the region’s energy market.

This month’s ‘Spotlight on technology’ features Maritime Development Limited’s 150Te pipelay tensioner, the largest road-transportable system of its kind.

Turn to page 26 to read the final instalment of our Survive & thrive Volume III insight report case studies, which charts the course 25 EIC member companies have taken to grow against a backdrop of cautious oil and gas market recovery.

We kick off the new year with the Mexico Energy Forum where attendees will meet project operators and contractors looking to fill supply chain gaps in the country’s oil and gas sector. Read more on page 14.

Within the UK we recently held a successful fully sold-out business presentation in conjunction with Peel L&P Environmental. Attendees heard from a panel of experts who explored some of the innovative clean growth projects taking place across the north west.

This included HyNet, one of the country’s leading hydrogen and carbon capture utilisation and storage projects – in addition to Peel Environmental’s Protos site, where the UK’s first plastics waste to hydrogen facility is proposed.

On 17 January EIC is excited to organise a joint digital day hosted by Petrofac.

Attendees will hear from organisations on how digital technologies and solutions have been deployed to their workforce, while reshaping and adding value – from worker safety, productivity, efficiency, customer and environmental benefit. Exhibiting companies on the day include Taap and Pepperl+Fuchs. Limited spaces still available!

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

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Sector analysis

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Inside this issue...

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One-to-one 4 EICDataStream 5 New EIC members Member news

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Social media round up 13 Spotlight on technology 15 Forthcoming events

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Overseas events

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UK and Europe news 21

18 February 2020 • Abu Dhabi

Oil, Gas & Beyond

Contents

Middle East news

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Asia Pacific news

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North America news

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South America news 25 EIC Survive & thrive III 26

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One-to-one

with Colin Elcoate CEO, Alderley

In this month’s interview we talk to Colin Elcoate, newly appointed CEO of Alderley, provider of skid-mounted integrated solutions, who recently celebrated 30 years in the business.

Q

Tell us a little a bit about Alderley?

Q

Alderley is a leading provider of skid-mounted integrated solutions and services for the global energy industry.

As a newly appointed CEO, what priorities do you see ahead for the organisation?

A

I am proud and excited to have joined Alderley as CEO. Alderley has an exceptional multi-skilled team of engineers, project managers and service technicians focused on delivering best-for-application and best-for-business solutions for our customers.

We are very well placed to support our customers in meeting the challenges of the evolving energy industry. For example; by providing metering systems capable of operating at LNG’s cryogenic temperatures; delivering innovative and compact process solutions for floating production storage and offloading (FPSOs); and developing enhanced conditionbased monitoring technologies incorporating remote diagnostics.

We will continually invest in new technologies to stay at the forefront of delivering integrated solutions for our customers.

A

Repeatedly partnering with some of the biggest names in the industry, our solutions – including metering, produced water treatment, chemical injection systems and control systems – have been installed in onshore, offshore and floating applications around the world.

Q

What achievements can the company be proud of since its formation 30 years ago?

Some of our key achievements include providing the system for the first measurement of North Sea oil, delivery of the first fiscal ultrasonic metering system for the North Sea and supplying the first ultrasonic cryogenic LNG metering system.

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We have also established further facilities in the UK, as well as in the United Arab Emirates and Kingdom of Saudi Arabia to best support our customers. However, the most significant achievement is remaining an independent, family owned, British-based engineering company.

As a family business, our reputation is paramount – one founded on our strong engineering roots, uncompromised quality, and technical and service excellence.

Throughout the next year, we will continue to focus on best supporting our customers throughout the life of their assets.

Our expert service technicians can inspect, repair, maintain and upgrade systems from across our entire portfolio, including cyber security solutions. With both proactive maintenance and rapid response services available from our local bases, we are a single-source solutions provider for our customers.

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Q

Alderley recently won awards for export and trade. How has the company remained strong throughout the downturn?

A

Last year, Alderley was awarded a UK Board of Trade Award (BOFTA) by the Department for International Trade in recognition of our contributions to trade and investment throughout 2018. This is testament to our quality, customer service and commitment to best supporting our customers, regardless of where they are in the world. This has enabled us to remain strong even throughout the recent industry downturn.

Q

Alderley has a strong presence in the Middle East.

Are there any plans for the organisation to diversify into further markets?

A

We have supplied over 750 systems into more than 50 countries, including to energy majors across the Middle East region such as ADNOC, Saudi Aramco, KOC, BP and Shell.

With a strong installed base and a market shift towards enhancing operational efficiency, we are seeing increasing demand for our inspection, maintenance and upgrade services.

We have seen significant growth for our services from operators in need of a local, single-source solutions provider capable of working across different process areas and instruments, regardless of the original equipment supplier.

We will continue to invest in our facilities to best support our customers throughout the life of their operations.

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DataStream RUSSIA

Global opportunities NIGERIA

AZERBAIJAN

Yamal Gas Chemical Complex

NLNG: Train 7 – Bonny Island

Operator: Gazprom Value: US$15bn Gazprom has announced plans to construct a new gas chemical complex with an estimated 3mtpa of polyethylene and polypropylene.

SABIC and SOCAR are among possible participants for the project.

Operator: Nigeria LNG Value: US$4.5bn The final investment decision for the plant was signed by the operating partners on 27 December. First LNG is expected to be produced by 2023.

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ACG Deep Gas Project Operator: BP Value: US$6bn BP is in discussions with SOCAR over a new project to develop the gas reservoir beneath the Azeri-Chirag-Gunashli fields.

The resource estimates are between 8.8Tcf and 17.7Tcf.

For more information on these and the 8,500 other current and future projects we are tracking please visit EICDataStream

KENYA

RUSSIA

SCOTLAND

Olkaria PPP Geothermal Power Plant

BREST-300 Nuclear Power Plant

Energy from Waste Inverurie

Operator: Kenya Electricity Generation (KenGen) Value: US$200m A project to develop a 140MW geothermal power plant at Olkaria in Nakuru County in Kenya. A Request for Qualifications has been launched, where successful companies will develop, finance, build and operate the plant.

Operator: Rosatom Value: US$805m Construction of a BREST-300 leadcooled fast reactor at the Siberian Chemical Complex. Primary heat production will be 700MWt, yielding an electrical power of 300MWe. Titan-2 has secured a US$413 million general contract to construct the reactor.

Operation is scheduled for 2026.

Operator: Agile Energy Recovery Ltd Value: US$257m Development of a 20MWe energy from waste plant in the Kirkwood Commercial Park, Port Elphinstone.

The facility will process 200,000 tonnes per year of pre-treated residual and non-hazardous waste. A proposal of application notice has been submitted to Aberdeenshire Council.

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

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New EIC members NEW EUROPEAN GLOBAL MEMBER

Arkema 420 Rue d’Estienne d’Orves Colombes, 92700 France The Nominated Representative is Mr Assaad Ghoussoub, Global Technical Sales Manager O&G

NEW GLOBAL MEMBER

NEW UK MEMBER

Crowcon Detection Instruments Ltd

Dale Power Solutions

172 Brook Drive Milton Park Abingdon Oxfordshire OX14 4SD The Nominated Representative is Ms Louise Early, Marketing Director

Salter Road Eastfield Industrial Estate Scarborough North Yorkshire YO11 3DU The Nominated Representative is Mr Paul Winship, Sales Manager

Telephone +33 (0)1 786 623 00

Telephone +44 (0)1235 557 700

Telephone +44 (0)1723 583 511

Email assaad.ghoussoub@arkema.com

Email louise.early@crowcon.com

Email paul.winship @dalepowersolutions.com

Web www.arkema.com

Web www.crowcon.com

Web www.dalepowersolutions.com

A designer of materials and innovative solutions, Arkema shapes materials and creates new uses that accelerate customer performance in lightweight and design materials, biosourced materials, new energies, water management, solutions for electronics, and performance and home insulation.

Crowcon’s vision is to grow a safer, cleaner, healthier future for everyone, every day as a globally respected company providing best in class gas safety solutions.

Established in 1935, Dale Power Solutions has become a national leader in bringing technology and engineering together to create innovative solutions, protecting critical power supplies for customers through its standby power systems.

A global manufacturer in specialty chemicals and advanced materials, with three business segments – high performance materials, industrial specialties, and coating solutions – and globally recognised brands, the group reports annual sales of 8.8 billion euros. Buoyed by the collective energy of its 20,000 employees, Arkema operates in close to 55 countries.

Since 1970, the company has been developing and manufacturing high quality products with a reputation for reliability and technical innovation.

As experts in gas detection, Crowcon combines its knowledge of mechanical, electronic and software design and understanding of the core physics and chemistry of gas detection with emerging technologies to develop process insights and protect customers. In this way driving towards its objectives, Crowcon improves customer operational efficiency and creates healthier and safer workplaces.

18 February 2020 • Abu Dhabi

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With an annual turnover in excess of £30m, it is through Dale Power Solutions’ commitment to excellence, combined with its mission to deliver outstanding client service that has earned the company its reputation as one of the UK’s most trusted providers of standby power solutions.

Dale Power Solutions provides a comprehensive and bespoke design capability service to its customers, taking initial concepts through state-of-the-art design, project management, manufacturing, installation and commissioning processes, followed by complete maintenance and servicing on a worldwide basis to more than 10,000 generators, AC and DC battery chargers and UPS systems.

Dale Power Solutions has developed into a globallyrecognised business and has built up an unrivalled track record of delivering mission critical standby power systems and solutions.

New EIC members

NEW PRIMARY MEMBER

NEW ASEAN MEMBER

De Nora Water Technologies UK Services

Emerging EPC Sdn Bhd

Arley Drive Birch Coppice Business Park Dordon Warwickshire B78 1SA The Nominated Representative is Mr Andrew Scarrott, Sales Director – Energy

No 27 Jalan Meranti Puchong D’25 Meranti Puchong 47120 Sepang Selangor Darul Ehsan, Malaysia The Nominated Representative is Mr Kamarul Johan, Executive Director

NEW PRIMARY AMERICAS MEMBER

Hawk Technical Services, LLC 14822 N. Eldridge Pkwy, Suite B Tomball, TX 77377 United States The Nominated Representative is Mr Pat McQuillan, CEO

Telephone +44 (0)1827 266 000

Telephone +603 8051 5391

Telephone +1 832 843 7608

Email andrew.scarrott@denora.com

Email kamarul.johan@eepcsb.com

Email pat@hawkpros.com

Web www.denora.com

Web www.emerging-epc.com

Web www.hawkpros.com

De Nora Water Technologies manufactures electrochlorination systems: SANILEC®, SEACLOR® and CECHLO® systems that use seawater, through the process of electrolysis to produce ‘onsite’ generation of sodium hypochlorite for biofouling control on offshore platforms in power plants, cooling towers, liquefied natural gas (LNG) terminals and desalination facilities, as well as coastal installations using seawater for cooling or other process needs all over the world.

Emerging EPC Sdn Bhd is a system integrator and service provider, specialising in air and gas compressor, process filtration and separation solutions, zone 2 gas and diesel engine generators/compressors, API 674 and API 675 pumps, nitrogen generator packages and modules.

The company’s decades-long extensive knowledge and field experience help provide cutting edge solutions for clients to address their business and operational objectives.

With offices in Anchorage, Alaska and Houston, Texas, Hawk specialises in the provision of staffing and inspection services.

On the staffing side, using nontraditional recruitment strategies Hawk provides highly qualified technical resources to the oil, gas, and energy sectors.

OMNIPURE™ Series 64 G2 sewage treatment system for disinfection of sewage, Capital Controls® chlorine dioxide, ozone generators and UAT™ reverse osmosis.

Built on a foundation of integrity, competency and HSE-compliant, Emerging EPC enjoys steady growth and recognition. Its solutions have been effectively applied across numerous industries including oil and gas, petrochemicals, power generation and more.

Inspection services are designed to ensure that equipment, products, and material are in conformity with client PO requirements, specifications, and industry standards. Working both domestically and internationally, Hawk deploys inspectors to supplier manufacturing facilities, pipe and coatings mills, and to field-based construction sites to represent clients and to ensure public safety and product integrity.

27 February 2020 • Mexico City

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New EIC members

NEW PRIMARY AMERICAS MEMBER

NEW PRIMARY MEMBER

NEW UK MEMBER

Kintec Recruitment Ltd

Majlis Energy

4 Exchange Quay Salford Greater Manchester M5 3EE

1st Floor 100 Pall Mall London SW1Y 5NQ

The Nominated Representative is Ms Vicki Coleman, Operations & Training Manager

The Nominated Representative is Mr Francis Akpata, CEO

Telephone +44 (0)161 875 1350

Telephone +44 (0)20 7321 3741

Email vicki@kintecglobal.com

Email francis@majlisenergy.com

Email lucette.leite@oerlikon.com

Web www.kintecglobal.com

Web www.majlisenergy.com

Web www.oerlikon.com/metco/

Established in 2001 with the purpose of supplying both contract and permanent technical engineering personnel, Kintec operates on a global scale within the oil and gas, chemical, life sciences, power, rail and infrastructure industries.

A financial and project development firm, with focus on energy infrastructures, Majlis Energy supports its clients with a wide range of services from the early stages of a project to operation.

Oerlikon Metco enhances surfaces that bring benefits to customers through a uniquely broad range of surface technologies, equipment, materials, services, specialised machining services and components.

The client can benefit from Majlis having a unique interface from the feasibility study, tailoring the business, operations and financial needs to its own profile. The Majlis team accompanies the project from the beginning, sitting on managerial positions sharing the complete experience with the final client who becomes a real partner.

The surface technologies such as thermal spray and laser cladding improve performance and increase efficiency and reliability. Oerlikon Metco serves industries such as aviation, power generation, automotive, oil and gas, industrial and other specialised markets and operates a dynamically growing network of more than 50 sites in EMEA, the Americas and Asia Pacific.

Over the years, the company has succeeded in developing lasting relationships, with both clients and candidates, and delivered expertise and up to the minute industry knowledge with efficiency and professionalism.

With business expansion and the creation of further offices in the UK, networks in the Middle East, Africa and the US as well as movement further into Europe, Kintec’s market position has gained major strength over its 18 years in business and it has reinforced this further with sector diversification.

Majlis’ focus is in these areas: • Technical consulting • Business advisory • Financial solutions

26 March 2020 • Jakarta

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Oerlikon Metco 1101 Prospect Avenue Westbury NY 11590 The Nominated Representative is Ms Lucette Leite, Business Development Director LATAM Telephone +1 516 334 1300

Oerlikon Metco, together with Oerlikon Balzers, belong to the surface solutions segment of the Switzerland-based Oerlikon Group.

New EIC members

NEW GLOBAL MEMBER

NEW BRAZIL MEMBER

NEW GLOBAL MEMBER

Oxford Flow Ltd

Petrolane

TGE Gas Engineering

Osney Mead Oxford OX2 0ES

Avenida Almirante Julio de sa Bierrenbach 200 Rio de Janeiro 22775-028 Brazil

Suite 2a Manchester International Office Centre Styal Road Manchester M22 5WB

The Nominated Representative is Mr Jose Carlos, Marketing Director

The Nominated Representative is Mr Robert Brannock, Managing Director UK

Telephone +55 21 3590 3225

Telephone +44 (0)161 204 0482

Email josecarlos@petrolane.com.br

Email robert.brannock@tge-gas.com

Web www.oxford-flow.com

Web www.petrolane.com.br

Web www.tge-gas.com

Oxford Flow designs and manufactures innovative pressure control equipment using technology developed at Oxford University.

Petrolane is a 100% Brazilian company founded in 1991 whose main objective is to introduce to the customer new technologies and equipment solutions from wellknown companies in the oil and gas market from the USA, Italy, England, Norway and Austria.

TGE Gas Engineering GmbH (TGE) is one of the world’s leading contractors for projects involving the storage and handling of liquefied gases in the energy and petrochemical/chemical industries.

The Nominated Representative is Mr Dominic Hinchey, Business Development Director Telephone +44 (0)1865 595 248 Email dominic.hinchey @oxford-flow.com

Elegantly engineered to be more precise, reliable and compact than competing technology, Oxford Flow’s pressure regulators can significantly reduce costs for energy, water and the process industries.

By applying innovation to real-world gas and fluid flow problems, Oxford Flow is able to save you money without sacrificing performance.

Oxford Flow works with leading companies to understand their problems. Innovation that delivers easily quantifiable benefits including efficiency, reliability and performance is its main purpose.

Petrolane not only imports equipment to Brazil, but also has the technological capacity to operate and maintain it throughout the country, whether onshore or offshore, on platforms or at its plant in Macaé – Rio de Janeiro State (4000 sq m) fully prepared to provide services and recover products from companies it represents.

Petrolane’s scope of technological solutions for the oil and gas market includes valve recovery in general, manufacturing of orifice plates and parts requested by customers, as well as engineering projects.

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TGE’s target is to provide to customers the added value coming from its experience and know-how in delivering millions of m³ of liquefied gas storage and handling facilities. TGE is active worldwide with main operating units in Europe and Asia.

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An agile and adaptable team, Oxford Flow is able to harness knowledge from one industry and apply it successfully to many sectors. This forwardthinking approach to technology transfer ensures the company is always at the cutting-edge, providing innovative solutions for all environments.

TGE has 40 years of experience in this field, providing the full range of services from concept/feasibility studies to lump sum turn-key project execution.

EIC (Energy Industries Council)

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Member news ABB Tmax XT circuit breakers break new ground

ABB, a pioneering technology leader, has extended its range of moulded case circuit breakers (MCCBs) for the UK with the new SACE Tmax XT that offers higher performances, protection, metering and connectivity features up to 1600A. These new products have been designed with the aim to provide tangible values throughout the entire customers’ journey, from selection and installation to daily use and diagnostics. Superior breaking capacity behaviour and the finest protection that have always characterised ABB’s MCCBs are now combined with the most precise metering and connectivity functionalities, to provide to designers, installers and end-users exclusive solutions for their daily needs.

SACE Tmax XT breakers set new standards for extreme breaking capacity for heavy-duty applications.

The devices are designed to work far beyond the normal constraints, maximising the capacity of installations, regardless of the operating voltage and environmental conditions.

SACE Tmax XT sets new standards for plant and energy management.

The XT family’s built-in connectivity links smartphones, tablets and PCs to data analysis tools on the ABB AbilityTM cloud platform in real time. The extreme precision of the data measured means users have access to accurate information anywhere and anytime, making it easier to monitor resources and identify savings opportunities.

Using the embedded smart power controller can help reduce energy consumption by up to 20%.

The same logics, features and uniquely intuitive interface are common to all frames, and are also shared with Emax 2 air circuit breakers, making ABB the first company able to provide customers the same logic across the whole circuit breakers portfolio, thus producing significant time savings and enhancing installation quality.

Moreover, ABB has streamlined and extended the capability of installation and setting the products: the process is now more userfriendly than ever, and the time needed is reduced by 30% thanks to Bluetooth and Ekip connectivity for mobile devices.

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For more information: www.abb.co.uk

The Drone Pilot state-of-the-art training facility in Austin, Texas

Airswift to offer drone technology to increase safety, efficiency and security

Swift Technical, the services division of Airswift, the global workforce solutions provider for the energy, process and infrastructure sectors, has announced a partnership with Drone Pilot. Austin-based Drone Pilot provides both outsourced and insourced unmanned air, ground, and maritime robotics services to the oil and gas industry.

ABB

By partnering with Drone Pilot, Swift Technical can now support clients with unmanned inspection and detection services, and generally support processes where it is unsafe or inefficient to send humans. In oil and gas, this could range from pipeline or flare stack inspection to detecting size and toxicity in cases of a spill to reduce manual handling and increase safety. For its part, Drone Pilot gains exposure to Airswift’s global energy client base, helping to fulfil its growth ambitions.

Through the partnership, the companies aim to bring safety, efficiency and security to the energy process and infrastructure sectors, focusing on three core pillars of inspection, detection and training.

Drone Pilot differs from other drone operating companies in that it can support companies with either outsourced or insourced drone initiatives by providing bespoke 100 hour training programmes.

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Member news

This 18 month contract will follow on from previous work LOC Group has undertaken on Hornsea One, located adjacent to Hornsea Two. This agreement will see LOC London and LOC Singapore execute all MWS work on the project substations. This is the first time Ørsted has required substations to be transported from the Far East to Europe. LOC Group has considerable expertise in this specific area.

Within the oil and gas sector, for example, drone inspection services will include corrosion and leakage in confined and hazardous spaces, reducing costs by up to 60%, while improving safety and minimising risk.

The technology can detect issues such as spill sizes and locations and is able to asses asset management in critical and harsh environments, which can drastically minimise human error and liability.

Drone Pilot training courses are built to encapsulate the key principles of flight and challenges in the energy industry with bespoke scenarios.

This is delivered from its state-ofthe-art Austin facility, which is able to mimic real life scenarios in both an indoor and outdoor setting. The course includes 100 hours of drone pilot training including advanced skills trainings and night missions.

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For more information: www.airswift.com

The award follows on from the works we carried out on Hornsea One. This agreement reaffirms LOC Group’s position as the engineering and consulting firm of choice for giant scale offshore wind farm projects.

Peter Croll, Technical Director of Renewables, LOC Group

When operational in 2022, Hornsea Two will have capacity to generate clean electricity for 1.3 million homes per year and will surpass Hornsea One in energy generation. It is also expected to make an important contribution towards the UK’s goal for renewable electricity generation and to achieve the UK’s energy security and carbon reduction objectives.

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For more information: https://loc-group.com/

NRL Group celebrates double award win

Recruitment experts NRL Group has reaffirmed its position as leaders in the engineering contractor market with a double award win at The Contracting Awards 2019.

The awards recognise the top service providers to the contracting community.

NRL’s recruitment business was named the Best Contractor Recruitment Agency in the Engineering category, after impressing judges with high quality labour solutions and a strong reputation within the market for delivering fully compliant services in sectors such as nuclear, power generation and oil and gas.

Best Outsourced Contractor Organisation was also awarded to Linx – an innovative NRL Group business that drives efficiencies in the contingent labour workforce through supply chain engagement and data insight.

Discussing the award wins NRL Group’s Chief Operating Officer David Redmayne said, ‘We’ve supported engineering contractors for over 35 years, so it’s great to be recognised as a leader in the contracting marketplace.’

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For more information: www.nrl.co.uk

LOC Group, the premier international marine and engineering consulting firm, has announced that it has signed an agreement with Ørsted, the global leader in offshore wind, to carry out Marine Warranty Surveyor (MWS) services for its Hornsea Two offshore wind farm, located approximately 89km off the UK’s Yorkshire coast.

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Ørsted A/S

LOC awarded contract for work on Hornsea Two

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Member news

Siemens supplies HL-class power island to South Korea

Siemens will set up a high-efficiency HL-class power island for a new combined cycle power plant (CCPP) in South Korea. This will be the first two state-of-the-art HL-class gas turbines that Siemens will supply to a customer in Asia. The new plant, which will be built in Yeoju, in South Korea’s Gyeonggi Province, will run on regasified liquefied natural gas (LNG) and offer a generating capacity of more than 1GW. With a maximum efficiency rating of more than 63% the gas turbine will allow the power station to get the most out of the valuable LNG for electricity generation, enabling especially economical and environmentally friendly operation.

The customer is South Korean EPC SK Engineering & Construction Co Ltd, which is constructing the entire plant for the independent power producer Yeoju Energy Services.

Yeoju is designed as a multi-shaft CCPP, in which two gas turbines and one steam turbine will each drive their own generator. Siemens’ power island concludes two SGT6-9000HL gas turbines, one SST6-5000 steam turbine, three SGen6-2000P generators, two heat recovery steam generators, and the SPPA-T3000 distributed control system. The plant has a capacity of 1,004MW. Power stations that will use the new Siemens HL-class gas turbine are currently under construction in North Carolina and Mississippi in the US, and in Lincolnshire in the UK. The Siemens HL-class is based on the proven design of the SGT-8000H series of gas turbines, and benefits from the extensive experience gained with this type, which has now accumulated more than one million service hours around the world.

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For more information: www.siemens.co.uk

Siemens SGT6-9000HL gas turbine

Sparrows doubles UAE operations after securing £55m in contracts

Sparrows Group has doubled the size of its operations in the United Arab Emirates (UAE) after securing contracts worth in excess of £55 million. The awards have resulted in over 150 new positions being created in the region.

The five-year fully integrated mechanical lifting equipment management project will see Sparrows deliver operation and maintenance of existing pedestal cranes and overhead cranes, static lifting equipment, lifeboat davits, loose lifting equipment and mechanical handling equipment.

The first of two major contracts for drilling equipment services in the region will see the company deliver full overhaul and recertification of nine catwalk units and eight mast cranes. The second project is for the inspection, repair and recertification of a top drive and pipe handler.

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For more information: www.sparrowsgroup.com

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STATS Group partners with Saudi Arabia’s Safari Oil & Gas

STATS Group has signed an exclusive partnership with Safari Oil & Gas (SOG) in the Kingdom of Saudi Arabia (KSA).

Safari Oil & Gas has strong links to the Kingdom’s main hydrocarbon producers and the partnership will promote STATS’ patented range of pipeline isolation and intervention technologies.

The agreement follows on from a successful isolation workscope conducted on behalf of Saudi Aramco and which utilised STATS’ hot tap installed double block and bleed BISEP tools.

To support the partnership and drive expansion of STATS’ footprint in KSA, Business Development Manager Hafiz Abdul Kareem has relocated to the Kingdom from the UAE to serve the market exclusively.

New EIC members Social media round up Member news

Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – EIC (Energy Industries Council) Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.

STATS will supply equipment, services and personnel from its base in Abu Dhabi with a longer term strategy of opening a permanent base in KSA. The partnership combines a wealth of experience in pipeline intervention, engineered corrosion solutions and other pipeline related expertise. Both companies place a strong emphasis on exceeding client requirements for delivering workscopes in a safe and reliable manner, and are highly responsive to changing market demands.

SOG is a diversified supplier of products and services to the oil and gas, water, and petrochemical industries in the KSA. Set up in 2007, SOG is a member of the Safari Group which employs more than 13,000 staff and is one of the KSA’s top 50 listed companies.

The EIC @TheEICEnergy

Calling all Scottish companies looking for export opportunities – join the EIC Scotland Pavilion at @OTCevents 2020.

Discounts for exhibitors! http://bit.ly/34D4OAF

The EIC @TheEICEnergy

The EIC National Awards Dinner 2020 now open for bookings, with Jimmy Carr confirmed as our special guest speaker at an exciting new venue! http://bit.ly/2Px9sMt

EIC (Energy Industries Council) The latest EIC Insight Report is out now, providing a global outlook for #LNG liquefaction and regasification. Report here: bit.ly/2s8Flly

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For more information: www.statsgroup.com

EP STATS Group BIS

(welded clamp)

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15

Spotlight on technology Maritime Developments Ltd

https://maritimedevelopments.com

150TE TENSIONER – MDL TTS-4/375 SERIES TENSIONER Maritime Developments provides tailored consultancy, equipment and personnel packages for the global energy sectors. Applying proven market leadership, deep industry insight and 20-year track record, working closely with clients to deliver maximum efficiencies at minimal risk. The portfolio includes complete vertical and horizontal SURF-lay spreads or individual systems, for rent or tailor-built for purchase; engineering, project management and marine services support.

MDL’s 150Te pipelay tensioner is the biggest system in the company’s tensioner portfolio, and the largest roadtransportable system of its kind. The 150Te system joined the company’s unique 4-track tensioner range in 2018, shortly after the delivery of a 110Te unit. Both systems offer unrivalled portability and track length options on the SURF rental market.

Despite the increase in size and pulling capabilities, both systems retain the key features of the company’s patented MDL TTS-4 design, including the Failsafe Grip System, self-centring alignment, Profinet architecture and road-transportability.

The Failsafe Grip System is a unique MDL feature which ensures that the unit always maintains grip on the product, even in the event of critical failure or power loss.

The 110Te and 150Te units can replace the need for a dual-tensioner solution to perform an installation above 50Te line pull and 4.1m track contact length – even for products requiring low squeeze.

This is particularly relevant for delicate product handling or for deepwater operations, as demonstrated in recent MDL offshore projects in Nigeria, the Mediterranean and the Gulf of Mexico.

Use of a single unit not only decreases the footprint of the equipment on board and the associated engineering costs, but also reduces the safety hazards associated with running two systems in tandem and can offer a manpower reduction on board the installation.

Any EIC members who wish to be profiled in this section please contact Lucy Chakaodza, EIC Editor, Media and Communications Manager lucy.chakaodza@the-eic.com Get in touch

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

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January – February 2020

Forthcoming events 15 January Management Course

EICDataStream/AssetMap training Online

17 January Business Presentation

Digital Day with Petrofac Aberdeen

21 January Sector Showcase

Energy from Waste

Manchester Chamber of Commerce

22 January Corporate Entertainment

New Year Networking Evening Revolution London

22 January Business Presentation

Opportunities in Guyana & Trinidad Webinar

23 January Business Presentation

North America EICDataStream Online

27 January Business Presentation

Members Update with Ducab Ducab, Mina Jebel Ali, Dubai

27 January Overseas Delegation

Nigeria Lagos

28 January Sector Showcase

Scaling Up UK Energy Storage EIC London

28 January Sector Showcase

Onshore Wind EIC Houston

Get in touch Share your news and views...

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

28 January Industry Overview

Local Content Training EIC Rio de Janeiro

29 January Management Course

EICDataStream/AssetMap training Online

30 January Regional Showcase

EIC Open Day EIC Houston

30 January Business Presentation

South America EICDataStream EIC Rio de Janeiro

6 February Sector Showcase

Scaling Up UK Energy Storage Marcliffe Hotel, Aberdeen

6 February Business Presentation

North America EICDataStream Online

11 February Overseas Exhibition

Egypt Petroleum Show (EGYPS) New Cairo Exhibition Centre

11 February Business Presentation

Opportunities with PetroRio EIC Rio de Janeiro

12 February Management Course

EICDataStream/AssetMap training Online

13 February Industry Overview

Fundamentals of FPSOs EIC Rio de Janeiro

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

Forthcoming events

18 February 2020 • Abu Dhabi

CONNECT February – March 2020

Oil, Gas & Beyond 18 February EIC Connect

26 February Overseas Exhibition

EIC Connect Oil, Gas & Beyond

Wind Energy Expo & Conference

Abu Dhabi

Tokyo

18 February Business Presentation

27 February EIC Connect

North America EICDataStream

EIC Connect Mexico Energy Forum

EIC Houston

Mexico City

20 February Corporate Entertainment

3 March Regional Showcase

Middle East Golf Tournament

EIC Open Day

The Els Club, Dubai

EIC Houston

25 February Business Presentation

3 March Overseas Exhibition

South America EICDataStream

Wind Energy Asia

EIC Rio de Janeiro

Kaohsiung Exhibition Centre, Taiwan

25 February Management Course

5 March Business Presentation

EICDataStream/AssetMap training Online

North America EICDataStream Online

27 February 2020 • Mexico City

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Where will you go next?

The EIC manages the UK national pavilion at most of the major international energy exhibitions as well as organising and managing overseas delegations each year.

These activities provide an invaluable opportunity for companies to access markets and make vital contacts with the key players in the energy sectors.

Insight & Intelligence

Help to identify upcoming regional projects, potential partners and customers with facilitated key introductions by EIC and DIT

60+

60,000

visitors to OTC in 2019

“Great stage for meeting distributors, customers and end users.

A fantastic way to help build our brand.”

HTL Group

Officially appointed contractors and freight partners to service all UK Pavilion exhibitors

Don’t go it alone Ideal for first time exporters in the comfort of the UK Group

42,000

visitors to Rio Oil & Gas in 2018

visite N Ex

Exceptional networking

“The EIC provided plenty of opportunities for networking both on the UK Pavilion and their own side events.

“From initial enquiry to show days, The EIC team have been very friendly and accomodating.

Side events organised with the Dept for International Trade, plus regular presentations within the UK Pavilion Lounge which draw visitors to the group

Being under the UK banner has meant we have met a lot of top calibre customers and end users” Hughes Safety Showers

The whole EIC Pavilion is presented to a very high standard and projects a professional image of the UK.” Abacus Lighting

1,124

exhibitors at Offshore Northern Seas (ONS)

+ countries

ed World Nuclear xhibition

£1,500

TAP Funding TBC at Wind Energy Hamburg

66,576

24,498

visitors to EGYPS 2019

visitors to Japan Wind Energy 2018

2,200+

exhibitors at ADIPEC 2019

16

international pavilions at OSEA 2018

“The EIC is a critical partner of ours helping us be in front of our customers around the world.”

Stanley Oil and Gas

Enquiries: +44 (0) 207 091 8600 overseasevents@the-eic.com • www.the-eic.com

20

Overseas events Happy new year from the EIC Overseas Events team

We are now gearing up for what will be a very busy year for our team.

In just a few weeks we will start our first event of the year in Cairo with EGYPS, as you can see from our below 2020 events it doesn’t stop there!

We still have places available for all of our 2020 events, so please get in touch with us to ensure you don’t miss out!

Camilla

Tew

What’s coming up?

2020 EGYPS

Booking Now

11 – 13 February

Cairo, Egypt

UK Pavilion

Mexico Showcase

Booking Now

23 – 27 February

Mexico City

Trade Delegation

Wind Energy Expo & Conference Japan

Booking Now

26 – 28 February

Tokyo, Japan

UK Pavilion

Asia Pacific Wind Energy Expo

Booking Now

3 – 5 March

Taiwan

Exhibition

Nigeria

Booking Now

9 – 14 March

Lagos

Trade Delegation

Oman Petroleum & Energy Show (OPES)

Booking Now

9 –11 March

Muscat, Oman

Exhibition

IPF (Business Network for Offshore Wind)

Register Interest

20 – 23 April

Rhode Island, US

UK Group in partnership with Renewable UK, NOF Energy & SDI

Vietnam Renewables

Booking Now

27 April – 1 May

Hanoi

Trade Delegation

Offshore Technology Conference (OTC)

Booking Now

4 – 7 May

Houston, US

UK & Scotland Pavilions

Brazil Showcase

Register Interest

1 – 5 June

Brazil

Showcase Trade Delegation UK Pavilion

Trinidad & Tobago and Guyana

Booking Now

8 – 12 June

Port of Spain & Georgetown

World Nuclear Exhibition

Booking Now

23 – 25 June

Paris, France

Offshore Northern Seas

Booking Now

31 August – 1 September

Stavanger, Norway

UK Pavilion

Angola

Register Interest

September

Luanda

Trade Delegation UK Pavilion

Rio Oil & Gas

Booking Now

21 – 24 September

Rio de Janeiro

WindEnergy Hamburg

Booking Now

22 – 25 September

Hamburg, Germany

UK Pavilion

Senegal & Mauritania

Register Interest

October

Nouakchott, Dakar

Trade Delegation

Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC)

Booking Now

9 – 12 November

Abu Dhabi, UAE

UK Pavilion

Offshore South East Asia (OSEA)

Booking Now

24 – 26 November

Singapore

UK Pavilion

To find out more please get in touch with the overseas events team. We are happy to have a chat and discuss which show would work best for you: overseasevents@the-eic.com

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

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UK and Europe news Regional update Let me take this opportunity to wish all our members a very happy and prosperous new year! As we look ahead, 2020 will be an exciting and busy year for the EIC UK events team.

Forthcoming events

Jo Cam

pbell

We kick off with our sold out business presentation with Peel Environmental, on Thursday 9 January, hosted at the University of Chester. As the north west bids to become the UK’s first low carbon industrial cluster by 2030, this event looks at the range of projects currently underway to decarbonise the region.

EIC is delighted to confirm our jointly organised event in partnership with Petrofac, at their facility in Aberdeen on Friday 17 January. This full day event will hear from organisations on how digital technologies and solutions have been deployed to their workforce, while reshaping and adding value. Bookings are still open, please visit the website to secure your place.

Following on from the success of last years Energy from Waste showcase (EfW), EIC has launched this event again in Manchester on 21 January. This event will hear from key industry speakers and provide delegates with a fantastic opportunity to gain sector insight. EfW is evolving into its own dynamic market and is expected to provide a hub of supply chain activities to explore. If you want to gain an insight into these activities, visit the website to book your place at this year’s showcase.

For those of you who are looking to start the new year by making new business connections, we hope you can join us for an evening of networking, on Wednesday 22 January, hosted at the Vault room, Revolution London. This event will bring together organisations and their guests from across the industry, giving you the opportunity to socialise with your peers, suppliers and make new connections, all within an informal and relaxed setting. Bookings are still open, please visit the website to secure your place.

With continued decrease in prices and growing advancement of technologies, energy storage is set to be a key sector in the global energy industry. EIC’s Energy Storage showcase invites some of the leading developers in the sector to provide attendees with an overview of their current plans and opportunities. Attendees will have a chance to learn about some of the key technologies under development today as well as gaining an outlook on global developments and significant markets to keep an eye on.

Jo Campbell, Head of UK & Europe jo.campbell@the-eic.com Sign up for the EICOnline newsletter

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

Digital Day with Petrofac Friday 17 January 2020, Aberdeen

Energy from Waste Showcase Tuesday 21 January 2020, Manchester

New Year Networking Wednesday 22 January 2020, London

Scaling Up Energy Storage in the UK Tuesday 28 January 2020, London

Scaling Up Energy Storage in the UK Thursday 6 February 2020, Aberdeen

Regional news

Signs of continued solar growth into 2020 in Europe

Spain continues to dominate the sector, with Iberdrola committing to three large-scale solar developments totalling 400MW in Cedillo, Extremadura. Following the success of BayWa r.e. installing 25MW of floating PV plants in the Netherlands, the company announced its plans to develop over 100MW more floating developments throughout Europe in 2020. Vattenfall also set itself a goal to build its first floating PV plant in Gendringen, Netherlands of 1.2MW and Portugal opened a tender for EPC contractors to develop the €50 million project of 10 floating PV plants by the Alqueva Dam, totalling 50MW. Ellomay Capital has signed a framework agreement for the construction of at least 250MW solar PV in Italy in the next three years.

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

@TheEICEnergy

EIC (Energy Industries Council)

22

Middle East news Regional update With much optimism in the markets we hope that 2020 is the year where several projects start to take shape and we see an upturn in the industry on the back of a few years of stability.

Regional news

Ryan M

cPhers

on

We start the year with several high-profile events which should hopefully bring a great amount of benefit and insight to our members. Our first members update event of the year is to be hosted by EIC member Ducab on 27 January 2020, at their newly opened headquarters in Dubai which will also coincide with a tour of the premises as part of their celebrations of 40 years in the region, which is a tremendous feat which I am sure you will all join me in passing on our congratulations.

Our UAE Connect event is scheduled to take place at The Intercontinental Hotel, Abu Dhabi on 18 February 2020, where we are aiming to have a far wider ADNOC presence based on the feedback received at last year’s event. We will still retain the elements such as the contractor briefings and one-to-one meetings that have made this such a success in the past and look forward to welcoming as many of you to this flagship event where more details can be found on our website. The same week will see our annual EIC Golf Tournament celebrate its 10th anniversary on 20 February 2020, sponsorship opportunities are available and I hope to see a wide array of EIC member companies participating in what has now become a regular fixture in the calendar. These two events represent an ideal opportunity for those travelling from outside the region to make best use of your days in country with an array of networking opportunities.

At the time of writing we are also hoping to announce a KSA Connect event towards the end of February 2020.

This has been high on my agenda since coming into the role and based on several conversations is of great interest to the wider membership, please watch this space or feel free to contact me directly for further details.

New members continue to join us from the region where we recently welcomed Oxford Flow, HSBC and Prezioso Lijjebygg. This represents a record number of new members in the region within a calendar year which we look forward to engaging further throughout the year.

We look forward to the year ahead with a great deal of excitement and optimism ensuring that we are working hard on your behalf in order to maximise the opportunities available across the region.

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

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

ADNOC’s Murban crude to be listed on futures exchange

Abu Dhabi’s Supreme Petroleum Council (SPC) has approved a decision to list ADNOC’s flagship Murban crude on a futures exchange and updated the country’s oil and gas reserves following new discoveries. The new pricing mechanism for the onshore crude grade is a strategic and historic decision which aims to provide markets with confidence and solidify Abu Dhabi’s position as an essential energy provider to the world, particularly the fast-growing markets in Asia. The SPC also announced additional hydrocarbon reserves of 7 billion stock tank barrels of oil and 58 trillion cubic feet of conventional gas and 160 Tcf of unconventional gas.

These finds have pushed the UAE from seventh to sixth position globally in terms of hydrocarbon reserves.

ADNOC launches rig fleet expansion plans

ADNOC Drilling has announced plans to expand its rig fleet to support the company’s upstream growth plans. This month ADNOC acquired four technologically advanced land rigs with a total value of AED350m (£73.6m) which will join its fleet in the first quarter of 2020. ADNOC Drilling also plans to acquire additional land, offshore and island rigs by 2025. Another ADNOC subsidiary, ADNOC LNG, has completed LNG supply agreements with BP and Total. The move marks a significant step towards its strategy to expand its footprint into new regions and markets. ADNOC said it has shifted from supplying 90% of its LNG to a single utility customer in Japan to supplying 90% of its LNG to a range of clients and receiving terminals in more than eight countries across southern and southeast Asia.

Forthcoming events

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

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Asia Pacific news Regional update

As in previous years, EIC APAC organised the New Year Breakfast Briefing 2020 in our offices in Menara HLA, Azman Kuala Lumpur. Our Nasir key guest speaker this time was Ms Mashitah M Jais, Head of Cost Engineering, PETRONAS who spoke about how it carries out the cost optimisation processes in the upstream, downstream and gas and energy businesses. The other invited speaker was Peter Godfrey, Managing Director of The Energy Institute who spoke on cost optimisation for upstream. EIC’s Regional Analyst, Awang Muawaluddin also spoke on the market outlook for the energy sector in 2020 based on findings from EIC DataStream. This event was over-subscribed with a total of 90 guests attending including companies such as Sapura Energy, SBM Offshore, Wood, Fluor, Petrofac, TechnipFMC, Subsea 7 and MMHE. In February 2020, EIC APAC will organise an event with the theme of ‘New Energy’. This event is organised in collaboration with the Malaysian Oil & Gas Services Council (MOGSC). We are expecting the Head of PETRONAS’ newly created New Energy Division, Dr Jay Mariappan, to give a key presentation on the forward plans for the company in new and renewable energy.

Other speakers expected to be present include a senior representative of Malaysia’s Ministry of Energy, The Energy Institute, Equinor and Muhibbah Engineering.

Also in February, EIC APAC will be participating in the Future Energy Asia (FEA) Conference and Exhibition in Bangkok, Thailand where EIC will have a booth. For this event EIC is collaborating with DMG Events. In the same month, EIC APAC will be attending Japan Wind Expo in Tokyo and Taiwan Wind Energy Exhibitions in Kaohsiung, Taiwan.

Finally, in March EIC APAC is organising our second EIC Connect in Jakarta, Indonesia following the first event in December 2017.

Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com 26 March 2020 • Jakarta

CONNECT Energy Indonesia Sign up for the EICOnline newsletter

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Regional news

PETRONAS acquires stake in Repsol for Andaman III

PETRONAS through its unit PETRONAS Andaman III Indonesia has acquired 49% participation interest (PI) of Repsol in the Andaman III block. Andaman III is located off the coast of Aceh and operated by Repsol with participation interest of 51%. Talisman had won the block in 2009 before Repsol acquired them in 2015. Repsol intends to drill the first wells in Andaman III block in Q4 2020. The target is longer than the previous schedule due to the delay of drill tools shipment in October 2020.

ONGC takes back PannaMukta field from Shell

The Shell, Reliance and ONGC joint venture will transfer the Panna-Mukta fields offshore India back to ONGC after 25 years of operating. The PMT JV partners include Oil & Natural Gas Corp (ONGC) 40%, Reliance Industries Limited (RIL) 30% and BG Exploration & Production India Ltd (BGEPIL) 30%.

The Tapti fields had ceased production in 2016 and the Tapti process platform facilities were handed over to ONGC in 2016.

China maintains tariffs on imports from the US

China retains tariffs on imports of US crude oil and LNG. Even if Beijing does get away with its 5% tariff on US oil imports and its 25% tariff on US LNG imports, Chinese importers will have little incentive to buy. Sinopec projects that Chinese LNG imports will rise by 13% to 92 Bcm (8.9 Bcf/d) in 2020 and that China’s refineries will process an additional 400,000 b/d of crude in 2020.

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

@TheEICEnergy

EIC (Energy Industries Council)

24

North and Central America news Regional update Happy new year.

We wish everyone the best for good health, success and prosperity in 2020.

Following on from our business presentation with Amand a Duho McDermott in November, n and recent engagement with operators and contractors at industry events, the EIC Houston team is seeing a trend emerging where the EPC community is looking more into partnerships and collaboration, than just procurement with the supply chain. It is becoming more crucial than ever to engage the EPC community earlier, and solution selling is key.

In December we finalised our 2019 events programme by providing our members with an update on the upstream, midstream and downstream oil and gas sector in Mexico. Delivered in partnership with the Department for International Trade (DIT) Mexico, this event provided a focus for business opportunities available ahead of our EIC Connect Mexico Energy Forum on 27 February 2020.

If you have an interest in speaking, sponsoring or attending EIC Connect Mexico Energy Forum 2020 or EIC Connect Oil & Gas USA 2020, then we would love to hear from you!

This month, we have invited industry players, including BP Wind Energy to discuss the USA onshore wind sector, providing insight into forthcoming opportunities in this growing sector with a particular focus on repowering. We also look forward to welcoming EIC member Bechtel at our Open Day on 30 January.

Amanda Duhon, Regional Director, North & Central America amanda.duhon@the-eic.com

Forthcoming events

EICDataStream Overview Fortnightly, EIC Houston

SAVE THE DATE Onshore Wind Sector Showcase Tuesday 28 January 2020, EIC Houston

SAVE THE DATE EIC North & Central America Open Day Thursday 30 January 2020, EIC Houston with Bechtel

SAVE THE DATE EIC Connect Mexico Energy Forum Thursday 27 February 2020, Reforma, Mexico City Get in touch Share your news and views...

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

Speakers from McDermott with Amanda Duhon and Monique Aceves

Regional news

New Jersey nearly doubles renewable energy goal

The state of New Jersey has boosted its renewable energy goal to 7.5GW by 2035; an increase of 3.5GW. The ambitious target will significantly advance the state towards its goal of 100% renewable energy by 2050 and accelerate its offshore wind industry and supply chain. For comparison, east coast states have contracted approximately 8.2GW of offshore wind projects, combined.

Puerto Rico announces grid modernisation plan

Puerto Rico has announced its US$20bn GridMod Plan to strengthen and modernise its power grid; which was devastated by Hurricane Maria in September 2017. The plan includes short-term, midterm and long-term capital investment strategies. It also provides guidance for the transformation and decentralisation of its power grid by increasing the use of renewable energy, thermal generation and storage.

Forthcoming events

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

25 25

South America news Regional update

2020 begins with high expectations in the Brazilian energy market. If you’re planning a trip to the region, there are two excellent opportunities.

The EIC will be leading the Offshore Construction and Clariss e Roch a Maintenance trade delegation to Rio as part of the UK&BR: Partners in Energy conference on 2 June 2020, organised by the UK government, and there are stands available at the UK pavilion at Rio Oil & Gas 2020 in September.

Event report

The EIC office in Rio has a vacant serviced room available for rent. Please contact me for more information.

Forthcoming events

Industry Overview: Local Content Training Tuesday 28 January 2020, EIC Rio de Janeiro

Industry Overview: Fundamentals of FPSOs Thursday 13 February 2020, EIC Rio de Janeiro

Regional news

Latest bidding rounds reinforce Petrobras’ pre-salt role but fail to attract IOCs

Two key bidding rounds involving areas in Brazil’s coveted pre-salt province have boosted Petrobras’ E&P portfolio but failed to attract competition from oil majors.

The 6 November auction offering the right to produce surplus oil volumes present at the Búzios field (volumes exceeding the 3.058 billion boe agreed by Petrobras and the Brazilian government in 2010) attracted a sole bid from Petrobras, in partnership with the China National Oil & Gas Exploration & Production Development Company (CNODC) and the China National Offshore Oil Corporation (CNOOC). Petrobras won the auction with a 90% interest in the surplus volumes, with each Chinese oil company holding a 5% stake.

Exciting times for Brazilian operator Enauta and its suppliers. To develop the Atlanta field, they announced during our last business presentation in 2019 the launch of three huge bids for a FPSO as well as drilling packages worth US$800m. Mr Vinicius Passos discussed how suppliers can register with them and Mr Felipe Barbuto explained about their partnerships in several fields including Sergipe Alagoas, Oliva and Manati.

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

The 6th bidding round for production sharing agreements on 7 November was similarly disappointing.

It awarded only one of the five blocks on offer, with Petrobras once again dominating the auction. The company submitted a bid for the Aram block, with CNODC as a minority partner (20%).

Government officials attribute the lack of interest by IOCs to the production-sharing model used for pre-salt areas introduced by the Lula administration in 2010. Economy Minister Paulo Guedes has pledged to review current regulations in order to make the pre-salt E&P segment more attractive to oil majors worldwide.

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

Sign up for the EICOnline newsletter

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@TheEICEnergy

EIC (Energy Industries Council)

62 26

EIC Survive & Success stories

Volume III

Samuel Knight International

Successful scale-up combined with trusted partnerships with clients How is Samuel Knight International thriving?

Founded in 2014, the company went through a rapid scale-up process, building an international client base in the energy and rail sectors, while offering key managed services across manpower, immigration, payroll and compliance, among others. Samuel Knight International (SKI) has focused on building deep and wide partnerships with energy and rail customers throughout a project’s entire lifecycle, from directors to technicians.

The challenge The recruitment business is a challenging one. As industry sectors become increasingly demanding and governed by tight budgets with peaks and troughs, identifying skilled talent is no longer a recruiter’s only concern. Companies can often be cautious about permanent contracts, especially in times of downturn and market uncertainties. This creates an opportunity for recruitment companies, like Samuel Knight to go beyond their conventional offering and stand out from the competition.

The solution Benefiting from years of experience in the energy sector, Steven Rawlingson decided to establish SKI in 2014.

Supplying permanent and temporary recruitment solutions to the energy

(mainly in power generation and transmission and distribution projects) and rail sectors, the company determined it would operate vertically rather than horizontally. Instead of having a varied client portfolio with a focus on the recruitment of toplevel employees, the company would focus on a narrow range of clients and support their manpower needs from directors to technicians. SKI’s strategy was to build partnerships with key clients, forging trusted, long-term relationships and improving brand recognition.

SKI knew that market conditions required solutions beyond simple

SKI’s vertical market strategy means our clients benefit from a team who works specifically in their market – a reason why, since our inception, we have enjoyed phenomenal global success.

Dan Kerr, Associate Director for Energy

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recruitment services. The company decided to improve its service portfolio by offering a full project solution which included not just manpower, but also payroll, immigration, registration and a wealth of other services. In addition, SKI began offering clients a short-term credit line for their project-specific contractor requirements to aid their cash flow. SKI would hire and provide contractors, which are paid for by the client in arrears.

This strategy was not without its challenges though. SKI was a new entrant to the market and, as such, faced competition from wellestablished corporations in the recruitment segment. The company’s fast track to growth also demanded lots of capital, a key concern for any company in the process of scalingup. In addition, skill shortages and operations in hostile environments in international markets contributed to the challenge.

SKI’s strategy led to its biggest business opportunity in the energy

Success stories EIC Survive & thrive III

sector. In 2016, the company secured a contract with NEM Energy, a heat recovery steam generator (HRSG) specialist rebranded as Siemens Heat Transfer Technology in 2018. The OEM contractor had been awarded an order to provide HRSGs for three 4.8GW power plants in Egypt and was seeking specialists for the project.

SKI engaged with NEM Energy in the early stages of the project with a view to fully understand its requirements and soon signed a non-disclosure agreement with the company. SKI, which had identified all specialists eight months in advance of the start-up date, eventually supplied 30 contractors to Siemens on a monthly basis for 28 months. At its peak, this contract earned SKI approximately £150,000 per month, its biggest contract in the energy sector so far.

the company’s strategy has been successful. After growing by 400% during the first two years since the implementation of the strategy, the company’s revenues are rising steadily. SKI’s net fee income currently sits at £12,000 per head, which is almost the double of £7-8k industry standard. The company has secured a significant new investment from an equity partner to fund further growth and is about to open a new chapter in its successful scale-up journey.

About Samuel Knight International

renewables, power generation, transmission and distribution, nuclear and oil and gas segments. The company’s contractor services offering includes mobilisation of contractors, payroll, immigration, registration, taxation as well as contractor care and localisation. In addition, SKI also provides bespoke skills testing, competency-based interviewing as well as industry and market trend insights.

SKI has offices in Newcastle, London and Bristol, and in 2019 the company will open a subsidiary in Houston, its first overseas office.

SKI’s fast scale-up is proof that

SKI is a global recruitment and project manpower specialist, providing skills and project solutions to the energy and rail sectors on a permanent, contract and project basis. In the energy sector, SKI covers the

Story type

Key findings

Scaling-up lessons

#service/solutions

For industry

Benefits

• Have a clear and defined strategy, but maintain flexibility • Maintain diverse revenue streams • Foster a team-work environment • Keep an open dialogue with employees • Engage early with project developers and identify key decision-makers

• Make sure the scale-up process is based on concrete foundations, with all functions established

• Successful business scale-up • £12–15m in revenues from a single contract • Net fee income at £12,000 per head, almost double the industry standard • Strong network of clients and candidates

For government: • It is difficult for a business to know if there is government support available when scaling-up

Government support?

The company has not received any type of government support.

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Samuel Knight International at a glance: Key products and services: provider of specialist technical and engineering manpower Main industries served: • Power – 49% • Rail – 30% • Renewables – 14% • Oil and gas – 7% Headquarters: Newcastle, UK Year established: 2014 Number of employees: 52 Revenue: £16m Revenue from exports: 80%

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Transcar Proudly small enough to care and big enough to deliver How is Transcar thriving?

For over 42 years, Transcar has honed its business model and culture to embrace volatile global energy markets, providing fast and resilient project logistics management. This approach has allowed clients to benefit from on-time, on-budget, high-quality and low-risk projects.

The challenge Volatility is a major concern for any industry, especially energy. Projects are very sensitive to issues such as the downturn in oil prices, wars and trade conflicts, which often lead suppliers to be reactive to events instead of adopting a more energetic proactive approach.

In 2012, following the conclusion of high-value, multi-million-dollar logistics project in Qatar, a contract vacuum soon followed and Transcar saw its associated revenues decrease. This resulted in a classic and occasionally used switch away from standard revenue streams, back onto its own company cash pool to maintain liquidity.

The company knew that merely reacting

to opportunities would not change this scenario. Proactivity and responding quickly to challenges were needed to ensure continued success.

The solution Operating for over 40 years, Transcar is no novice when it comes to dealing with market changes. In fact, it assumes that there will always be market uncertainty and has developed the ability to adapt and react through all challenges and downturns.

Being a privately-owned company with no third-party investors also has its benefits: Transcar has always

Professional and highly agile, project logistics management specialists are becoming a highvalue commodity in an ever-changing global environment that is driving the need for smaller businesses with a well-honed ability to proactively change and add value to high-profile, multibillion-dollar contracts. These companies are now few and far between across a global stage, wherein Transcar currently shines so brightly.

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adopted a prudent approach which includes keeping its core size and cost structure to a minimum, even when winning many projects.

This involves scaling-up when a project is awarded and scalingdown following its conclusion.

Company size certainly helps too: being smaller and more agile when compared to multinational rivals, Transcar implements its changes almost instantly – to the benefit of its customers.

Regional reputation and a likeminded approach earned Transcar an opportunity with a global procurement company contracting on a major gasto-liquids project in Qatar.

This company had its own freight forwarder at the time, although the forwarder had limited experience in the Qatari market in respect of this type of specialised operation.

A company with vast experience in Qatar, Transcar was approached to come up with a solution. Initially, to improve the KPI related issues that were generated as a result of the incumbent’s lack of experience on the client specific processes and procedures. Transcar was able to review any rejected material stored

Success stories EIC Survive & thrive III

in the other forwarders warehouse, re-checking and re-counting all the components - including the goods’ quality, damage and description – as well as re-doing all the associated paperwork. This resulted in all legacy issues being resolved within three months.

the company has gone on to tender and win contracts with other major Qatari companies in the petroleum, gas and solar sector – with Transcar as its local partner.

About Transcar

Confidence in Transcar’s capability and performance has also assisted this client’s success in additional ways:

Transcar Projects is one of Europe’s leading privately-owned project logistics company. The company provides specialist services for land, air and sea operations for a range of sectors, including oil and gas, power, renewables and process industries, among others. Operating since 1977, Transcar’s headquarters are located in the UK and the company has additional sites in the Arabian Gulf and Australasia.

Story type

For government:

Transcar’s prompt and ongoing competence in dealing with the work resulted in it being awarded 100% of the freight arrangements associated with the procurement contract, representing a significant revenue boost.

#innovation, #optimisation, #service/solutions

Benefits • Substantive, multi-million-dollar contract with a global procurement company • Transcar’s expertise allowed this partner to keep high-value contract and obtain new contracts for which Transcar is its exclusive partner

Key findings For industry • Companies should remain agile, informed and proactive • Finding niche business opportunities is the way forward • With international business, think internationally. You will not succeed if you are unwilling to learn and understand international culture values

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With a 42-year track record spanning all corners of the world, Transcar’s global network of own and trusted, compliance-tested partners provides crafted solutions to ensure the collection, transport, secure handling and delivery of goods - from the smallest critical component to a project’s largest specialist piece.

Culture change lessons

• SMEs are as important as major players when it comes to feedback on energy policy • Engage with industry at all levels is necessary to ensure outcomes are understood and supported • UK funding in international and UK projects should preference UK suppliers as much as possible • Exporting should be made as simple as possible

Government support?

The company has not received any type of government support.

• Culture change should be a standard component in all staff training and ongoing development • Understanding cultural differences is key to global business success • Technology plays a key role in culture change • Staff must be made aware of the need and benefits of culture change at an early stage

Transcar at a glance: Key products and services: project logistics management, including freight forwarding

Scaling-up lessons

Main industries served:

• Scaling-up or down should be a standard part of a company’s project planning process • Controlling cost overruns and sourcing the right people are major challenges when scaling-up • Efficiency is the keyword for any scaling-up process

• Oil and gas – 50% • Power and renewables – 25% • Process and petrochemicals – 20% • Civils – 5%

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Headquarters: Sidcup, UK Year established: 1977 Number of employees: 40 (28 in the UK) Revenue: ~£15m annual Revenue from exports: 90%

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Success stories EIC Survive & thrive III

Wood (Nuclear) Customer focus as a tool to win business opportunities How is Wood thriving?

The company has become a market leader in its segment with contracts that genuinely align objectives and behaviours with clients around the world. Taking care of customers over the long-term is ingrained in Wood’s Nuclear team’s ethos, resulting in significant business growth.

The challenge The electricity market is a challenging one. Pressure on wholesale energy prices and other market issues have sometimes led industry players to delay or even cancel capital investment projects (e.g. Horizon’s Wylfa Newydd and NuGeneration’s Moorside nuclear new builds in the UK). Delays and cancellations have effectively reduced the total UK market size for Wood’s reactor support and new build services and increased competition among the supply chain for remaining opportunities available.

The solution Wood has coped with these challenges for a number of years.

However, thanks to increased customer focus and closer alignment to their clients’ strategic and operational challenges, the company has become more successful at winning business in tough markets.

Source: Sellafield Ltd Customer focus is at the heart of Wood’s business strategy. This involves working collaboratively with customers to focus on outcomerelated incentives where feasible, and with other members of the supply chain in nuclear and beyond to unlock wider value for clients. In addition, Wood’s approach also includes bringing in new capabilities from other parts of the group to help support customers.

programmable digital control technologies for Sellafield in the UK. The contract covers all stages of system design, manufacture and assembly of equipment, obsolescence management and maintenance support to project work and decommissioning carried out by Sellafield. The contract was secured thanks to collaboration between the automation technology and nuclear parts of the business.

This strategy led to double-digit growth in nuclear turnover during the course of 2018. In December, the company was awarded a 10year, US$66m contract to supply

Wood’s deep technical knowledge and reputation earned the company a major contract in 2019. In May, the company secured a 20-year, US$1bn contract to provide engineering design services to Sellafield as part of the company’s new Programme and Project Partnership.

Wood will provide the front-end design and engineering capability and services required to deliver a portfolio of major projects and site-wide project delivery improvements.

Wood’s success is built on world-class expertise combined with a commitment to working fully in partnership with customers and with fellow suppliers, whether these be within Wood or from other companies.

Clive White, President (Nuclear)

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Wood’s strategy is about deep understanding of its customers and continuing to build enduring relationships with them – through

Success stories EIC Survive & thrive III

thick and thin. The quality of Wood’s solutions is intrinsically related to the company’s grasp of customers’ challenges and needs – and everything else is built on this.

The company sets out to fully understand its customers’ business objectives so that it can find new and better ways to deliver their requirements, bringing an innovative approach which can have a transformational effect on their business operations.

Wood spends a lot of time listening to its customers and wider stakeholders, understanding not just their immediate needs but their long-term plans and vision. To become a true, long-term partner for its customers, Wood

Story type #collaboration, #diversification, #innovation, #optimisation, #service/solutions

Benefits • US$1bn contract award with Sellafield • Double-digit revenue growth in 2018

Key findings For industry • Focus on understanding and delivering value to customers, aligning your teams to their goals • Be prepared to challenge your own thinking, particularly when it comes to collaborating with potential competitors for the good of your customers • Costs need to be reduced in order to keep nuclear energy competitive

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invests in building strong relationships throughout the breadth and depth of their organisations.

The hallmarks of the Wood approach are taking care to achieve high standards of work and safety, demonstrating a commitment to collaboration and having the courage to do things differently.

About Wood (Nuclear) Wood is one of the world’s main providers of engineering, project and technical services. The company’s nuclear segment designs, delivers, maintains and decommissions strategic and complex assets for customers across the globe. The company has built a solid track record in the nuclear

segment by operating in five continents and over 15 countries, with an experience spanning 60 years.

Technology-independent with comprehensive experience in all major reactor types, Wood’s capabilities are applied in all project lifecycles, including design and operations, new build programmes (including Gen IV, small modular reactors and fusion), waste management and decommissioning and defence; all underpinned by expert knowledge in delivering safety, assurance, engineering, technology, innovation and R&D.

• Use support from the DIT to understand international markets at a macro level • Target specific opportunities based on the ability to offer something different and unique

Wood (Nuclear) at a glance:

For government:

Main industries served:

• Industry needs a balanced and integrated approach when it comes to energy policy, financing and the supply chain • DIT does a good job promoting the capabilities of the UK nuclear sector in overseas markets

• Civil nuclear – 84% • Defence – 16%

Government support?

Wood’s nuclear division has good governmental relations on strategic and practical issues.

Key products and services: engineering, project and technical services

Headquarters: Knutsford, UK Year established: 1982 (John Wood Group) Number of employees: 2,200 (Nuclear); 60,000 (group) Revenue: US$300m (Nuclear); US$11bn (group) Revenue from exports: 11%

Culture change lessons • Employees need to understand reasons for change • Companies must be open with staff when it comes to business performance and industry challenges

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Wood (Pipeline) Data as a deliverable for subsea pipelines How is Wood thriving?

Wood has developed a unique information management solution combining the Pipeline Open Data Standard (PODS) and geographical information system (GIS) technology.

This digital twin allows standardised data integration across the entire supply chain of major subsea projects delivering seamless project handover while allowing significant time and cost savings.

The challenge Data management is a key challenge, especially in large CAPEX projects. There is a massive output of engineering, construction and inspection data which is captured in documents when the project reaches handover stage, meaning that key data can be buried in thousands of pages of information. It is very time-consuming – if not impossible – to check certain datasets held in documents during the project stage and subsequently find them in the operational phase. This is driving a transition from managing documents to directly managing the important data they contain.

The issue with the volume of data is made even more challenging by culture and behaviours. They are the hardest things to change, especially when there are costs involved. A significant share of the supply chain is conservative

or unpractised in managing data rather than managing documents, so the challenge at hand was to break with tradition and prove to the widerindustry that the way forward is a truly data-centric approach, using innovative digital solutions.

The solution Wood’s opportunity to tackle this challenge for a big energy player came with BP in 2012. The supermajor awarded Wood a contract to oversee the pipeline data management for one of the major projects in Azerbaijan.

The contract scope comprised subsea pipelines and flowlines connecting wells spread over a number of clusters. Wood’s scope involved the capture and validation of over five million pieces of information collected from ten engineering contractors as

This project is a great example of how Wood applies data integration expertise and leverages the latest digital technology to ensure efficient delivery and benefit through the CAPEX phase and throughout the operational life of the asset.

Matt Kirk, SVP Subsea and Export Systems

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well as 35 suppliers responsible for the manufacture, coating, fabrication and installation of the field’s complete subsea infrastructure.

BP required the use of the PODS database for the contract. A reporting tool for pipeline projects, PODS acts as a central repository for data generated by all the supply chain involved, including design engineers, manufacturers, coating yards, fabricators and installation contractors.

Looking to achieve greater efficiency, this was the first time BP asked a company to collect, validate and handover such a big volume of data.

Wood was well-prepared to meet BP’s requirements. They had already delivered projects requiring this solution, and the company had previously developed its own enhanced implementation of the PODS database – called Wood-PODS. The company had also created a web portal called Nexus-GIS for accessing data as well as 70 templates for project data collection. Given the project scope, Wood created additional templates for the project, reaching a total number of 320.

However, given the resource and timeframe challenge set by the client,

Success stories EIC Survive & thrive III

it was not possible to manually validate and load such a large volume of data. Wood then developed a novel data management system which, based on configured rules, could validate the data prior to loading it into the Wood-PODS database and displaying it in Nexus-GIS. The latter used GIS technology to show the actual location of each piece of equipment, providing the ability to drill down and access their complete set of data, creating a digital twin of subsea infrastructure for clients.

Wood knew, however, that WoodPODS, Nexus-GIS and the data management system would not be enough for successful delivery to BP. Supplier engagement was an early hurdle, as they were traditionally used to providing just the standard set of documents, without digital inputs.

Wood introduced new processes and procedures to support these innovative systems, while educating

not only suppliers, but also the project team and contractors.

The uniqueness of Wood’s PODS implementation and Nexus-GIS solution, combined with the company’s holistic approach to its implementation were key to success. Benefitting from a standardised data format, handover of data – comprising almost 2 million documents and 5 million pieces of validated asset data – was successfully completed under the 90 day target.

The company’s innovative use of digital tools enabled their information management scope to be delivered with 50% less manhours and reduced handover complexity with standardised data management integrated across the project’s extensive supply chain.

built environment. The company operates in more than 60 countries, employing around 60,000 people, with revenues of around US$11bn. It provides performance-driven solutions throughout the asset lifecycle, from concept to decommissioning across a broad range of industrial markets, including the upstream, midstream and downstream oil and gas; power and process; environment and infrastructure; clean energy; mining; nuclear and general industrial sectors.

Wood is a leading player in the delivery of project, engineering and technical services in energy, industry and the

Founded in 1982 as John Wood Group, the company has acquired various players over the years. One of its was notable transactions took place in October 2017, when the company completed the acquisition of Amec Foster Wheeler.

Story type

For government:

Wood at a glance:

#digital, #innovation, #optimisation, #technology

• Incentivise digitalisation and development of open data standards

Benefits

Government support?

• Standard format of a project’s supply chain data, allowing cost and time savings

Wood has benefitted from various government support initiatives, including grants, R&D tax credits, DIT trade delegations and apprenticeship levy.

Key findings

About Wood

For industry

Culture change lessons

• Assemble teams of people who share the same vision and are willing to work as needed to deliver • End-clients need to embrace innovation through engagement.

Without their commitment, it is hard to deliver results • Develop and support digital standards to enable better data sharing

• A gradual steering process for staff, suppliers and clients is needed to ensure that innovative, groundbreaking solutions are implemented efficiently

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Key products and services: operations solutions, capital projects, environment and infrastructure solutions, clean energy solutions, mining and minerals solutions, digital and technology, automation and control, consulting, subsea and export systems Main industries served: • Oil and gas: 47% (upstream: 29%, downstream and chemicals: 18%) • Power and industrial: 32% • Environment and infrastructure: 13% • Minerals and processing: 4% • Automation: 4% Headquarters: Aberdeen, UK Year established: 1982 Number of employees: 60,000 (13,500 in the UK) Revenue: US$11bn (US$1.3bn in the UK) Revenue from exports: 87%

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Yokogawa TechInvent Game-changing solution to chemical injection control How is Yokogawa TechInvent thriving?

Applying his deep knowledge of chemical injection controls to solve a major industry problem, inventor and TechInvent founder Alf Egil Stensen developed and launched FluidCom. An innovative and revolutionary chemical injection valve and metering controller for the oil and gas industry, FluidCom dramatically enhances process efficiency, increases safety and reduces OPEX costs.

The challenge Back in 2006, the Norwegian oil and gas engineer Alf Egil Stensen pondered over the question of why chemical injection had been slow to follow technological development. Although this discipline played a key role in process optimisation by preventing or reducing the risk of issues that might negatively impact output flow, traditionally the area was treated as not too important.

Alf had worked and focused on the chemical injection niche for many years, and he knew its conventional technology intimately – including its shortfalls. He looked around at other industries for solutions but could not find anything. This provided a big opportunity to innovate.

The solution Starting from scratch in his garage, Alf invented a chemical injection valve and metering controller. Named FluidCom, the solution is a fully automated, simple and reliable device

The FluidCom™ is a fully automatic chemical injection controller for production chemicals.

Its unique patented technology is considered a worldwide game changer, enabling significant CAPEX and OPEX savings.

Alf Egil Stensen, CEO

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equipped with ab integrated autonomous valve control and continuous flow metering, as well as a self-cleaning functionality. A solution that weighs one quarter and occupies one third of a conventional chemical injection control solution, FluidCom allows flow control through a controlled heater that causes thermal expansion in tubes for fluid flow. This thermal expansion is used to choke and control the fluid flow through a unique flow control arrangement. In addition, there are less mechanical moving parts, with much reduced wiring.

FluidCom allows significant savings.

Contrary to conventional chemical injection solutions, which require constant maintenance as they get exposed and filled with chemicals, FluidCom does not require technicians to go in person for maintenance, dramatically increasing safety. In addition, the product also saves costs associated with the eventual shutdown of chemicals injection, which can impact processes and lead

Success stories EIC Survive & thrive III

to significant production losses. On top of that, FluidCom also eliminates the need for adjustment in injection points (which can be as high as 120 on large platforms), reducing the number of maintenance visits. All things considered, maintenance and adjustment costs can be reduced significantly.

As a new technology, FluidCom had to be proven and trialled before it succeeded in the oil and gas market: Alf had the commercial background and confidence to make this happen.

He founded TechInvent in 2008 and obtained a patent in 2009. The same year, Alf approached Equinor (then Statoil), which showed a lot of interest in the innovative solution. TechInvent entered the operator’s LOOP technology funding programme, while also obtaining funding from Innovation Norway.

savings, comparing how much time was saved in the adjustment of chemical injection, maintenance as well as the amount of chemicals which could be saved. The study determined that the solution had a very attractive payback time, offering significantly lower OPEX costs. After an eight-month qualification period, FluidCom successfully obtained its TRL-7 qualification, Equinor’s highest technology-readiness level.

Equinor was enthusiastic about the solution. The company made an internal case study on FluidCom’s

In 2015, following its certifications, Statoil Technology Invest and Aarbakke Innovation acquired 35% of TechInvent.

FluidCom was launched a year later, with two international oil majors as first customers. In 2017, TechInvent was fully acquired by the Yokogawa Electric Corporation, a major Japanese electrical engineering and software player. Yokogawa TechinIvent is on the verge of a massive scale-up: FluidCom is being specified for use in Equinor’s future platforms and the company has already sold more than 150 units since the product’s launch.

Story type

Key findings

#innovation, #technology

For industry

Benefits

• Do not underestimate timing and cost when working on a new technology • Be open minded to let other partners come into the project

• Savings of £3.5m–£5m p.a. per production platform • Safety and efficiency improvements

About Yokogawa TechInvent Yokogawa TechInvent is the supplier of the FluidCom chemical injection valve and metering controller. Founded in Norway in 2008 by inventor, entrepreneur and CEO Alf Egil Stensen, the Stavanger-based company has been supplying its FluidCom chemical injection technology to major oil companies since 2016. Originally branded TechInvent, in 2017 the company was acquired by Yokogawa Electric Corporation and in August 2018 the company officially changed its name to Yokogawa TechInvent.

The Yokogawa group is based in Japan and is a leading provider of industrial automation and test and measurement solutions. The company has a global network, with 113 companies across 60 countries.

Yokogawa TechInvent at a glance: Key products and services: supplier of FluidCom, a chemical injection solution Main industries served:

For government: • Oil and gas – 100% • Funding for innovative technological development is essential • The Oil & Gas Technology Centre is a great initiative

Government support?

The company has received financial support from Innovation Norway, in addition to R&D tax credits.

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Headquarters: Stavanger, Norway (TechInvent); Tokyo, Japan (group) Year established: 2008 (TechInvent); 1919 (group) Number of employees: 22 (TechInvent); 20,000 (group) Revenue: £1.3m (TechInvent); US$4bn (group) Revenue from exports: 15%

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SupplyMap

The only d

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Receive more prominence than non-members

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EIC North and Central America

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

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

EIC (Energy Industries Council)