Inside Energy July 2019

Inside Monthly news for EIC members July 2019

EIC guest editorial

Energy Exports Conference

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Sector analysis

LNG liquefaction growth – changing of the guard Read any of the recent reports published on energy trends and they point to the important role that gas will have to play in the energy transition to meet future energy needs and climate targets. Gas demand continues to increase and 2018 figures produced by the EIA show that demand for natural gas increased by 4.6%. Projections also show that significant growth in gas demand is expected between 2018 and 2024 driven most notably by China, the Middle East, the US, India and wider Asia Pacific market.

While piped gas and domestic production can meet some of these increases, the LNG industry will play a critical role in meeting global market demands. While the demand centres will remain the same the main producing countries producing LNG will change.

Australia has this year surpassed Qatar as the number one producer of LNG. However, what we will see between now and 2024 is the USA becoming the number one market for LNG liquefaction capacity. So far in 2019 we have seen two LNG liquefaction projects reach a final investment decision, Train 6 at Sabine Pass, and the greenfield development of Golden Pass. It is what is projected that is exciting and will offer significant opportunities for the supply chain.

Overall the US has a total of 36 projects that are at varying stages of the development process, if they all proceed this will lead to a staggering 314 mtpa of liquefied gas hitting the markets, representing almost 50% of the total capacity that is being proposed for development.

During 2019 and 2020 the projections are that we could see a further 14 LNG liquefaction plants reach FID. Of these 14 developments, 13 are greenfield projects. Gas Sales Agreements are in place for some of these projects, while others are seeing GSAs being agreed.

Neil G

olding

While some of the LNG will find its way into the Asia Pacific market, it will be competing with Australia, Papua New Guinea and Canada for future market share.

The trade war with China could also see some of the proposed developments being impacted, as finance was to be provided by Chinese players and the country had been considered a potentially significant market for the LNG. Only time will tell if this trade war will impact on the development of some of these future projects in the USA. However other options are available for the gas and Europe is looking to diversify its feedstock away from over reliance on Russia and will take a share of future LNG production.

Venture Global LNG has signed an agreement with BHGE that will see the company supply 60 mtpa of standardised modular liquefaction trains. The trains, which will each have a capacity of 1 mtpa, will be factory fabricated, rather than constructed onsite, and will be installed at Venture Global’s Calcasieu Pass and Plaquemines LNG projects.

This process will eventually lead to cost savings, a quicker time to first production and less downtime during the maintenance process.

A first of its kind development will also be seen offshore in the Gulf of Mexico. An offshore platform liquefied natural gas (PLNG) complex will be constructed as part of a Sino-US Integrated Solution. The PLNG combines fixed platform technology with LNG factory design. The project will comprise of five LNG storage platforms, six liquefaction platforms, one accommodation platform, one utilities platform, one gas arrival platform, one flare platform and one loading platform – all of which will be bridge linked, plus onshore facilities and pipelines. The series of facilities are set to be installed in the West Delta area, 16km offshore the US Gulf of Mexico and is designed to have an annual LNG production and storage capabilities of up to 4.2 mtpa. Whether this project will be impacted by the China-US trade war waits to be seen.

With the US currently the largest producer of oil globally and set to become the largest exporter of LNG liquefaction in the next four years we will see the US being the dominant market force in the energy industry in the coming decades.

Neil Golding Head of Oil & Gas and Business Development neil.golding@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...

I am very excited to be taking over the reins from Edward White who did a superb job in managing Inside Energy over the last three and a half years.

Lucy C

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One of the best things about Inside Energy is that it allows us to share our members’ news, views, products and services with all of our readers.

Without a doubt, the most popular sections of the magazine are those which come from EIC companies: member news, one-to-one interviews and spotlight on technology.

This month, Ewen MacLean, VP Strategic Planning & Marketing at Proserv and author of our first ever guest editorial, reflects on how evolution of technology has opened the possibility of diversification within the oil and gas industry.

As mentioned in last month’s issue, if you’d like to contribute a guest editorial, please email me with a brief overview of what you’d like to cover with your article. We’d like to hear about your experiences, advice and recommendations relating to diversification, export and scaling-up a business.

The biggest event the EIC has ever organised during its 76-year history finally kicked off on 18-19 June, following months of planning and hard work. More than US$150bn of global projects requiring UK products and services were discussed at the Energy Exports Conference in Aberdeen, by over 20 major operators including Aramco, Ørsted, BP and Shell. Read more about it in our news and events section on page 25.

In June, the EIC cyclists took to the road once again! Having covered the length of the UK during last year’s 75th anniversary Aberdeen to London cycle challenge, this month they cycled the breadth of the country, taking part in the 205 miles Kent to Somerset, Chase the Sun ride. Money raised from this year’s cycle challenge will once again go to Cancer Research UK. Read more about the team’s gruelling journey on page 24. Please visit our JustGiving page to make a donation to this very worthy charity: https://www.justgiving.com/ fundraising/energy-industries-council-chase-the-sun I look forward to working with EIC members on future editions of the magazine.

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

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Contents

Sector analysis 2 Inside this issue...

3 One-to-one 4 EICDataStream 5 New EIC members 6 Member news 8 Social media round up 11 Forthcoming events 12 EIC guest editorial 14 EIC training 16 Spotlight on technology 17 Overseas events 18 UK and Europe news 19 Middle East news 20 Asia Pacific news 21 North America news 22 South America news 23 EIC Chase the Sun 24 EEC review 25

@TheEICEnergy

EIC (Energy Industries Council)

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One-to-one

with Iain Eddie Chief Operating Officer, Actavo Trusted by the world’s leading companies to provide essential engineering solutions, Actavo operates in diverse and demanding markets offering a breadth of services, from energy to events, business support to building solutions, communications to construction. Its global workforce delivers network, in-home, industrial, hire and sales, building and event solutions in 100 locations.

Q

You were recently appointed COO of Actavo earlier this year. What are your expectations for the company over the next year?

I joined Actavo six months ago with over 30 years’ experience working in global engineering and construction organisations in the UK, Middle East, Africa, Australia and North America.

My clear expectation for Actavo in the year ahead is to look to establish the brand and to achieve both domestic and international growth. Customers who work with us clearly know who we are and what we do, but we need to create greater awareness of our very good work.

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There are several inherent strengths in the Actavo business, and my aim is to ensure we maximise those, while simultaneously looking to grow both our offering and the geographies we work in. There is always room for growth in the UK and Ireland and we have a strong presence in Kazakhstan where we can further develop our business. We are also developing our presence in the Caribbean where we are engaged in some tendering activity.

Q

Do you have a strategy for growth over the next 1- 3 years?

I see us broadening our services and looking to new channels for growth opportunities.

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We believe we can compete successfully for projects by entering strategic partnerships and collaborations to provide total solutions for SIPs, mechanical, electrical and other construction support works.

We also have a long-established business in painting and repairing pylons and providing protective coatings. We believe we can bring this business forward, again across multiple geographies including Ireland, Kazakhstan and further afield.

The commercial network we have, along with the huge demand in the market provides a strong opening for us, we have already commenced training relevant personnel to respond to that opportunity. While Actavo is a very resilient business, it is not immune to any potential fallout following Brexit. However, I am confident the work we do is of importance in the market and we will work through any challenges that might arise.

Q

Actavo has been awarded more than 15 gold safety awards? What is your secret?

Health and safety is central to every aspect of our work and we are very proud to be awarded the Royal Society for the Prevention of Accidents, Order of Distinction. This type of award reflects well on the business and it is important that our customers are aware of the work we put in this area.

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Get in touch Share Do youyour wishnews to beand profiled views... in this section?

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

We don’t pay lip-service to EHS, it is part of who we are and what we do from the canteen to the top of a scaffold structure.

Everyone has the right to go home safely and we actively promote and highlight safety.

We have regular ‘toolbox talks’ across our operations; and an initiative called Time to Act, where everyone has a personal message of reflection on a small card for their pocket, designed to remind them of personal safety.

Q

Tell us about the importance of the company’s community and CSR work?

Community engagement is very important for us and forms part of our core values. Wherever it is practical and possible, we get involved in our local communities. We have also established a company initiative called Link, whereby we look to engage with local schools and get the kids involved in deciding how we will use modest funding for the schools.

In Ireland, we have partnered with Business in the Community which links businesses to community initiatives along with the development of our environmental commitment.

We are currently in the throes of working towards gaining the Business Working Responsibly Mark, which is the only independently audited standard for sustainability and CSR in Ireland.

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DataStream

IRAQ

Global opportunities INDONESIA

USA

Common seawater supply project

Pertamina Bontang refinery

Rio Grande LNG export plant – Brownsville

Operator: Basra Oil Company Value: US$4bn Hyundai E&C has been awarded an EPC contract for package 1 worth US$2.3m to build the water treatment facility associated with the project. Work is expected to take 49 months to complete.

Operator: Overseas Oil and Gas Value: US$10bn Pertamina and OOG are in the process of picking a contractor to conduct FEED work for the refinery.

OOG will fund the US$180m study which is expected to be finished by the end of 2019.

Operator: NextDecade Value: US$9.5bn Bechtel has been awarded an EPC contract to construct the facility.

Technology for the facility is to be provided by Air Products, while Baker Hughes, GE, will provide the rotating equipment.

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

UNITED KINGDOM

Sellafield nuclear decommissioning Operator: Sellafield Ltd Value: US$7.9bn Decommissioning of the Sellafield nuclear site in Cumbria. Sellafield Ltd has awarded the 20-year Programme and Project Partners contracts to KBR, Wood, Morgan Sindall Infrastructure and Doosan Babcock Ltd. The contracts are expected to be worth up to US$6bn across the 20-year period.

INDIA

Dondaicha Solar Park Operator: Maharashtra State Power Generation Value: US$800m Construction of a 500MW solar power project in the Dhule district of Maharashtra. Talettutayi Solar (Solar Arise) secured 50MW in the latest 250MW auction. Tata Power and National Thermal Power were awarded 100MW each. They will be developed on a build, own, operate basis.

BOTSWANA

Lesedi coal bed methane power plant Operator: Government of Botswana Value: US$200m The government has selected Tlou Energy as its preferred bidder to develop up to 100MW of coalbed methane-fired power plants in coalrich Botswana. Tlou received written confirmation of the government’s decision end of May.

ASEAN EICAssetMap launched

Our latest version of EICAssetMap was launched at EIC Connect Energy Thailand in May. • Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam • 1,000+ energy facilities • All energy sectors • Site operator contact details • Fully interactive: search by location, sector and operator • Mobile friendly • Unlimited users per company For more information visit www.the-eic.com/EICAssetMap or for a demonstration contact membership@the-eic.com Get inuptouch Need a demonstration of EICDataStream?

Sign for the EICOnline newsletter Please contact membership@the-eic.com Visit www.the-eic.com/Forms/NewsletterSignup

@TheEICEnergy

EIC (Energy Industries Council)

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New EIC members NEW UK MEMBER

NEW UK PRIMARY MEMBER

NEW GLOBAL MEMBER

Dron & Dickson

EthosEnergy

Unit B Craigshaw Road Aberdeen AB12 3AR

Ethos House Craigshaw Business Park Craigshaw Road Aberdeen AB12 3QH

HEBETEC Engineering AG

The Nominated Representative is Mr Tom Irwin, Sales & Marketing Director

The Nominated Representative is Ms Jennifer Gibson, Communications & Marketing Manager

DAP Z ofis kagithane Istanbul Mrkz Şubesi Turkey The Nominated Representative is Mr Omer Faruk Yilmaz, Deputy General Manager

Telephone +44 (0)1224 367 200

Telephone +90 212 294 3038

Email tom.irwin@drondickson.co.uk

Email jennifer.gibson @ethosenergygroup.com

Email omerfaruk.yilmaz@hebetec.com

Web www.drondickson.com

Web www.ethosenergygroup.com

Web www.hebetec.com

Dron & Dickson is a recognised market leader in the supply and maintenance of hazardous area electrical equipment.

EthosEnergy is an independent service provider of rotating equipment services and solutions to the power, oil and gas, and industrial markets.

Hebetec offers comprehensive services in the lifting engineering area being supported by the long lasting experience of its employees.

EthosEnergy sets a new standard of service excellence with a broader portfolio, global reach, greater choice, flexibility, responsiveness, and wellengineered value-added solutions.

The field of activities range from the preparation of concepts over execution like lifting, lowering or sliding heavy loads down to leasing of hydraulic equipment which has largely been developed in-house.

Telephone +44 (0)1224 874 554

Its two distinct divisions, Engineering Services and Wholesale offer bespoke solutions incorporating the very latest industry standard and safety legislation.

Uniquely within the hazardous area market Dron & Dickson offers a one stop shop facilitating everything from wholesale supply to installation, maintenance and project management to exceed client’s expectations.

The company delivers comprehensive, solution-oriented products and services that will help generate benefits for you.

The business has depth and experience in asset management and long-term maintenance agreements, while offering transactional, factory-based parts and repair services across all industry sectors.

EthosEnergy will offer you the best possible services to make your operations safer, more efficient and increase reliability.

Get in touch Share your news and views...

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

Hebetec places particular importance in providing its equipment in as new condition to construction sites. The quality of the equipment is under permanent improvement. New components are being developed by our inhouse engineering and design department. Assignments often require specialised and tailormade solutions.

The lifting engineering market is subject to special outline conditions and is characterised by high mutual trust between client and service provider.

Based on vast experience gained during company history and on a sound corporate base, Hebetec is in the position to offer top quality world-wide competitive services.

Oil & Gas

Petrochemical

Power

Renewable Energy

international

T: (001) 832 787 0808

Ship Building

Building Services

USA

E: usa@DOTgroup.net

www.DOTgroup.net

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Member news ACE Winches lands Gulf of Mexico contracts

Ace Winches has secured contracts on two major projects in the Gulf of Mexico for Subsea 7.

The Aberdeenshire-based company will use its linear winch pull-in systems for the Shell Vinto project and the BP Mad Dog Phase 2 project.

The multi-million pound contracts will include all aspects of project management including engineering, manufacture, operating staff, installation and pull-in of equipment.

Ace will work closely with Subsea 7 to simplify and deliver an innovative, cost-effective riser installation solution from design through to delivery for both projects.

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For more information: www.ace-winches.com

Rental fleet expansion for Byrne Equipment Rental

GCC based Byrne Equipment Rental has launched its new Climate Control Division, as part of its ongoing expansion plan, and further enhances its one stop equipment rental offering.

In the months ahead, the division will be rolled out across its network of offices and depots across the UAE, KSA, Kuwait, Qatar, Oman and Bahrain to complement the growing equipment rental fleets.

The decision to add this product range was fuelled not just by the potential of the HVAC industry in the region, but even more so, the demand from existing Byrne clients.

According to the market research report published by P&S Intelligence, the UAE HVAC market alone is expected to reach US$1.4bn by 2024.

Pat Fallon, Byrne Group COO said, ‘We are constantly listening to the requirements of our clients and we are pleased to announce the launch of our climate control division which will complement the products we currently supply.’

The Byrne Climate Control Division will specialise in three main areas; spot cooling, comfort cooling and process cooling. It will contain a wide range of equipment including split and package air conditioning units, chillers, air-handlers, cooling towers and dehumidifiers.

For more information, please visit the company’s website.

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For more information: https://byrnerental.com

EnerMech’s new digitised service set to revolutionise oil and gas industry

Global services company EnerMech has recently launched a new digitised inspection service, Arup Inspection MInteg (AIMTM), to enhance and revolutionise the inspection process for the oil and gas industry.

The innovative inspection technology, created by Arup, the global engineering and consultancy firm, digitises the entire inspection workflow by leveraging automation, overhauling the current paper-based and outdated manual process and is the first of its kind.

By using AIM, oil and gas organisations can expect to see inspections completed in significantly less time, resulting in reduced risk and costs. Operators and asset owners will be able to access their interactive inspection data instantly, and make informed decisions about asset repairs, replacements or improvements.

EnerMech’s specialist inspection division MInteg and Arup have signed a three-year agreement to complete inspections with AIM.

EnerMech

Dr Bryan Horton, Offshore Digital Leader, Arup, said, ‘The partnership between Arup and EnerMech brings global expertise to digitise an old way of working, drive high value and lower risk outcomes for operators.’

The two organisations will collaborate throughout the inspection process to enhance assets based on the inspection findings via engineering expertise across the North Sea, Western Australia and Gulf of Mexico.

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For more information: www.enermech.com

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

Member news

JDR Cable Systems awards cable protection contract for WindFloat Atlantic JDR Cable Systems (JDR), owned by the TFKable Group, recently awarded Trelleborg’s offshore operation the contract to design, manufacture and deliver dynamic cable protection products for the Windfloat Atlantic project.

It has a total capacity of 25MW in a 100 metre depth area on the Portuguese coast of Viana do Castelo.

Set for installation this year, Trelleborg will provide Distributed Buoyancy Modules (DBM), bend stiffeners and Uraduct® for the project.

In floating production environments, subsea electrical power cables are used to interconnect floating structures on offshore wind farms and run between the substation and the shore. Trelleborg’s high performance DBMs and bend limitation products are designed to secure, guide and protect power cables from excessive movement and bending that cause fatigue damage.

Paul van Es, Renewables Project Manager at JDR, said, ‘We’re delighted to have won this project and to be working with the Trelleborg team. The harsh environment of the Atlantic is a perfect proving ground for floating offshore wind and our technology.’

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For more information: www.jdrcables.com

KCA Deutag awarded four-year drilling contract on North Sea platform

KCA Deutag’s offshore business unit has been awarded an extension to its existing contract with CNOOC Petroleum Europe Ltd for the Scott platform, which it operates in the UK North Sea. Sign up for the EICOnline newsletter

CNOOC’s Scott platform in the UK North Sea

The contract extension, which is for the provision of drilling operations and maintenance services, came into effect on 1 March 2019. It has an initial term of four years plus a two year extension option.

Rune Lorentzen, President of Offshore said, ‘The UK North Sea continues to be an important area of activity for us and we are committed to working with our partners to ensure that we make the most of the substantial reserves we still have in the UK basin.

‘We have been the drilling contractor on the Scott platform since 1992 and are delighted with the commitment to retain us once again.’

The UUV, called Solus-LR, is being designed to be able to travel up to 2,000 kilometres and stay submerged on multi-month missions, supported by an onboard fuel cell power pack.

Cellula Robotics has ordered a Micro-Ranger 2 Ultra-Short BaseLine system with optional marine robotics software feature pack, and an AvTrak 6 combined transponder and telemetry transceiver, for tracking the vehicle from the surface, receiving data packets from it and sending mission commands to it, which will be integrated into the UUV.

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For more information: www.kcadeutag.com

Long-endurance underwater drone to be fitted with full suite of Sonardyne technology

Subsea specialist Cellula Robotics has designed a new fuel cellpowered long-range unmanned underwater vehicle (UUV) supported by integrated navigation, positioning and communications technology from Sonardyne, for the Canadian defence department.

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Sea trials of the Solus-LR, which are expected to start in late 2019, running through to early 2020, will also be supported using Sonardyne’s Compatt 6 seabed transponders and the company’s BlueComm-200 underwater optical communication instruments.

The trials will be held in the Indian Arm fjord, near Vancouver, British Columbia, close to Cellula Robotics’ headquarters.

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For more information: www.sonardyne.com

@TheEICEnergy

EIC (Energy Industries Council)

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Member news

Sparrows

Sparrows Group secures UKCS contract renewals totalling £30m

Sparrows Group has reinforced its leading position in the North Sea following contract renewals worth an estimated £30m in revenue in the first quarter of 2019.

The renewed agreements with two long standing major operators in the UK Continental Shelf (UKCS) are for the provision of crane management services over one and five years.

Both contracts will see the company deliver a combination of preventive and corrective maintenance including condition monitoring; inspection, testing and certification; crane operators; rigging equipment management; mechanical handling and engineering support; and a deck operations safety coaching programme.

The scope of work covers a total of 73 cranes situated on a number of manned and normally unmanned installations across both the North and Southern North Seas.

Waves Group’s marine warranty surveyors recently oversaw the completion of Scotland’s largest offshore wind farm, Beatrice. The last of 84 Siemens Gamesa wind turbines were installed on 14 May.

Located 13km off the coast of Caithness, the Beatrice offshore wind farm is expected to power over 450,000 homes in Scotland. It is the fourth largest wind farm in the world and has the deepest water depths to have used fixed foundations for any wind farm to date.

‘We are the only contractor with the capability to maintain and operate the full spectrum of cranes installed in the UKCS – from first generation to the latest models. The ongoing success of our business is a testament to our skilled people who continue to deliver a high quality service.’

Sparrows has been active in the North Sea for more than 44 years and currently employs over 400 specialist offshore personnel in the UKCS.

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For more information: www.sparrowsgroup.com

Get in touch Share your news and views...

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

Weighing roughly 1000 tonnes each, the jacket foundations were installed in water depths of over 56 metres.

The offshore wind farm is a joint venture between SSE Renewables, holding 40% share, Copenhagen Partners, 35%, and Red Rock Power Limited, 25%. SSE will manage the operations and maintenance of the wind farm from their new base in Wick.

‘We are pleased to see the successful delivery and operation of the Beatrice wind farm which will contribute significantly to the government’s green initiative,’ said a spokesperson from Waves Group.

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For more information: www.waves-group.co.uk Waves Group

Stewart Mitchell, chief executive officer at Sparrows, commented, ‘Cranes are a vital component across the production and decommissioning phases of a field and as activity continues to increase it is imperative that critical equipment is correctly maintained to ensure integrity and safety at all stages of the lifecycle.

Waves Group delivers on Beatrice, Scotland’s largest offshore wind farm

New EIC members Social media Member round news up

Wood launches new power price forecasting service Wood has launched a new power price forecasting (PPF) service to provide customers with greater certainty around the potential financial returns from investing in renewable energy projects.

Significant reductions in renewable energy generation costs has seen many governments remove financial subsidies traditionally available for renewable projects and turn to competitive auctions to extract the lowest cost for electricity procurement.

Our PPF service enables customers to make more informed commercial decisions during capital intensive transactions. With unsubsidised project development activity increasingly common, and wind and solar levelised cost of energy at, or below merchant power prices, understanding the long-term trends in energy and merchant power markets has never been more important.

Bob MacDonald, CEO of Wood’s Specialist Technical Solutions business

The level of risk facing developers, investors and lenders in renewable projects has changed. They are now exposed to a more volatile merchant price rather than a fixed rate and need to apply much greater rigour over their future revenue assumptions, all of which requires detailed insight on electricity price forecasts.

Wood’s new PPF service will provide customers with clarity on real-time electricity costs, plus an ability to simulate future costs based on a range of different scenarios.

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For more information: www.woodplc.com

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Social media round up

World’s first heat exchanger flow optimising technology receives EU funding

A consortium led by fouling removal specialist, Tube We want to use every opportunity to connect with Tech International, has received our members, so please follow us SME on Twitter Horizon 2020 Instruments (@TheEICEnergy) and connect with us onOptimiser, LinkedIn funding to develop Flow whichCouncil) will deliver the first-ever – EIC (Energy Industries optimised flow technology within Below you’ll find a selection of some ofexchangers the exciting shell-and-tube heat EIC activities and useful industry information we’ve (STHEs).

shared through our social media channels.

Flow Optimiser is the world’s first method to combat the global issue of fouling at The EIC the source, @TheEICEnergy creating optimal @TheEICEnergy has signed an product fluid flow MoU with @WFO_global within at #EEC2019 STHEs. to promote the development of the offshore The Horizon 2020 sector globally. Find out more: bit.ly/31LzrDR SME Instrument is a public funding programme that funds marketcreating innovation The EIC in disruptive small @TheEICEnergy businesses that That’s a wrap! It’s been a successful #EEC2019 with 600+ attendees, 100 speakers have significant & 35 exhibitors! A huge thank you potential to everyone growth involved @brainnwave & #McMenon and global

ambitions. The SME Instrument is part of Horizon 2020 – the EU’s €80bn funding programme for EIC (Energy Industries Council) research and Head of PNR Amisha Patel explains innovation. the role #batterystorage has to play in making As part ofUK. the Read #renewable energy mainstream in the more in Business Reporter: programme’s https://bit.ly/2EY7S0q goal to radically reduce carbon emissions and achieve climate resilience by the second half of the century, Tube Tech’s Flow Optimiser solution has been granted funding in recognition of the benefits it can bring to the oil, gas, power and chemical sectors.

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For more information: www.tubetech.com

@TheEICEnergy

EIC (Energy Industries Council)

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July – August 2019

Forthcoming events 1 July Business Presentation

Mexican Round Table EIC London

1 July Corporate Entertainment

Summer Networking Evening Investec Bank Plc, London

2 July Business Presentation

EICDataStream Overview EIC Houston

3 July Members Showcase

Members’ Showcase

Revolucion de Cuba, Aberdeen

3 July Corporate Entertainment

Summer Networking Evening Revolucion de Cuba, Aberdeen

3 July Business Presentation

Opportunities with McDermott EIC Rio de Janeiro

5 July Regional Showcase

EIC Open Day – Northern Region Wood Plc, Darlington

10 July Management Course

EICDataStream/AssetMap training Online

16 July Regional Showcase

EIC Open Day – Southern Region EIC London

17 July Industry Overview

Fundamentals of Nuclear EIC London

Get in touch Share your news and views...

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

17 July Business Presentation

EICDataStream Overview EIC Kuala Lumpur

18 July Business Presentation

EICDataStream Overview EIC Houston

24 July Regional Showcase

EIC Open Day – North America EIC Houston

24 July Management Course

EICDataStream/AssetMap training Online

30 July Corporate Entertainment

Curry at The Club The Club, Abu Dhabi

1 August Technical Workshop

Introduction to Energy from Waste Grundon, Lakeside, Slough

1 August Business Presentation

EICDataStream Overview EIC Houston

7 August Management Course

EICDataStream/AssetMap training Online

13 August Business Presentation

EICDataStream Overview EIC Houston

14 August Business Presentation

EICDataStream Overview EIC Kuala Lumpur

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

Forthcoming events

August – September 2019

BO O NO KI W NG

15 August Industry Overview

Fundamentals of FPSOs EIC Rio de Janeiro

16 August Regional Showcase

EIC Open Day – Scotland

Emerson Solutions Centre, Aberdeen

21 August Corporate Entertainment

Home Alone Curry Evening Carters, Wafi, Dubai

21 August Management Course

EICDataStream/AssetMap training Online

22 August Industry Overview

Fundamentals of Subsea EIC London

22 August Management Course

Opportunities with Wood EIC Rio de Janeiro

22 August Business Presentation

EICDataStream Overview EIC Houston

28 August Business Presentation

EICDataStream Overview EIC Houston

29 August Management Course

Upstream Mexico EIC Houston

2 September Sector Showcase

Brazil Energy Future Summit Rio de Janeiro

BOOKING NOW

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@TheEICEnergy

EIC (Energy Industries Council)

13

14

EIC guest editorial

The right time to venture into new territories Ewen MacLean, VP strategic planning & marketing, Proserv,

suggests the evolution of technology has opened up possibilities for diversification.

It is hard, however, to set out a corporate strategy when a drop of US$85 (£67) can occur in barely 18 months.

Add to that the increasing importance of the energy transition and legislation around carbon emissions, and the opportunity to diversify into other markets, becomes more than just commercially attractive.

But choosing to diversify isn’t an opportunistic decision.

This is a long-term commitment to moving into another market which involves risk, just like geographic expansion.

Proserv

The day the Norwegian state energy company Statoil decided to drop the ‘oil’ from its name and rebrand as Equinor, was one where the changing shape of the energy industry was clear. Equinor has earned a reputation for being in the vanguard of embracing a low carbon future and taking some innovative progressive decisions.

But it is not alone as several members of the ‘big oil’ club have also earmarked billions of dollars a year for green energy investments. Shell, BP and Total have in recent years made commitments to the likes of electric vehicles, solar power and other renewable energy sources.

Diversification from oil and gas has fast become a core element of corporate strategy and it is not limited to the supermajors and the national oil companies.

Many oilfield service providers have also made the transition, and while sustainable energy is an obvious fit for many, some firms have also branched out into more general industrial sectors, LNG terminals and infrastructure builds, as well as refineries – moving across from upstream through midstream to downstream opportunities.

Breaking the cycle

It makes perfect sense. From an oilfield service provider’s perspective, a company’s wellbeing has always been guided by the cyclical nature of the oil price. When a barrel of Brent is firmly into three figures, a firm doesn’t need to look anywhere else.

Initially, it is a question of taking embryonic steps and so markets where there are close synergies with oil and gas, such as renewables or downstream opportunities, offer the reassurance of a soft landing, once a firm has finally decided to take the leap.

These days, making the transition from oil and gas into another sphere is driven by the rapid evolution of technology. Oil and gas are inundated with new disruptive technologies that could potentially impact other parts of the industry – or different industries altogether.

Redeploying a technology, and its different applications, into an alternative market, where its capabilities will clearly be valued and understood, naturally offers the best chance of gaining a subsequent commercial advantage.

At Proserv, for example, as a controls technology company, we are utilising this capability and our experience in offshore oil and gas and taking that into the offshore wind segment. This represents a logical segue into a strong area of opportunity.

Diversification as strategy

To maximise our growth potential means we need to look at diversification into other markets. We have several options for using our technology to digitalise, and increase efficiency, not only at the oilfield, but in other remote environments – wherever the performance of critical infrastructure would benefit from improved controls, we see diversification opportunities.

Advances in technology in recent years have opened numerous opportunities for oilfield service companies like us to venture into new territories – but oil and gas will remain our core, central activity.

you would to be profiled in this section contact Lucy Chakaodza, EIC Editor and Communications Manager...

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

16

EIC training

Are you doing your due diligence? amtri veritas is giving a one-day course on 25 September 2019 and 18 March 2020 for EIC members on complying with the Machinery Directive. You will learn about applicable directives, the key role of risk assessment and risk reduction, how to meet essential health and safety requirements, what goes into a technical file, which compliance procedure to follow and how to declare compliance and mark your product.

Photos amtri veritas

Imagine your worst nightmare: a worker is killed when a broken part is ejected from a machine at high speed through a guard that should have stopped it. A worker has suffered a life changing injury from being unable to stop the equipment they are working on.

This is a tragedy for the worker, their family and friends, their colleagues, their employer – if you think the list stops here, you would be wrong. The list reaches back further than you think.

The death is investigated and there are questions to be answered. Was it an unforeseeable accident? Did the worker’s actions contribute to their death? Was the guard open when it should have been closed? Did the guard fail? Did the emergency stop button fail? Was the employer at fault? Was the machine poorly designed?

Anyone who puts a product on the market – or, if it is not placed on the market, puts it into use – is required to ensure that product is safe. This means: • identifying the applicable product safety legislation • making an assessment of the risks and reducing them until they are safe • complying with essential health and safety requirements or harmonised standards • testing, verifying and recording • following the correct compliance procedures • declaring compliance and • CE marking the product • In the near future UKCA marking the product

Employers are responsible for the safety of their workers, but manufacturers and suppliers are responsible for the safety of the products they put on the market – including those that employers provide for their workers to use.

In our imaginary incident, the manufacturer of the machine has a technical file for the Supply of Machinery (Safety) Regulations. If the design or construction of the machine is thought to be a contributory cause for the death or injury, this file is called up and examined. If the manufacturer has done their job properly, they are exonerated.

Sometimes the accountability moves up the chain and knocks on your door…

The technical file is the strategic asset that demonstrates how the manufacturer has fulfilled their duty of care.

Do your due diligence; ensure that you are up-to-date with the requirements of the Machinery Directive.

Looking for a course not on our schedule? Our training team is happy to work with you and our training providers to design a course which fits your requirements, recognising that one course doesn’t fit every organisation.

To findyour out more visit www.the-eic.com/Training/Schedule or contact Terri Sylvester...

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17

Spotlight on technology Intervention Rentals

www.interventionrentals.com

WHITL/KRONOS Intervention Rentals was formed primarily to support the local North Sea oil service sector. The company initially specialised in the rental, repair, refurbishment, inspection, servicing and certification of flowline and flow measurement equipment.

Today, Intervention operates from bases in the UK, Qatar and Ghana. The company provides oilfield equipment rental and services for well intervention, well integrity, pipeline/processing and drilling sectors. Intervention’s industrial divisions provide fire protection, anticorrosive treatments, grit blasting and coating services.

Intervention’s commitment to technological advances in well integrity has seen the organisation develop the first built for purpose, well head integrity test logging package – WHITL.

Traditionally, the chart recorder, an instrument that has not changed for over a century, has been the preferred method of recording pressure tests. Charts created are time consuming, subjective, lack resolution and are hard to store or share. For this reason, Intervention Group developed the WHITL data logging system and KRONOS software.

The introduction of KRONOS software to the WHITL hazardous area data logger is the next step in the evolution of pressure testing. The system maximises the efficiency of the testing process by eliminating the reliance on ‘rule of thumb’ practices.

WHITL/KRONOS changes the method in which test and monitoring operations are undertaken with immediate pass/fail test results. Significant time savings can be made across all aspects of the test or monitoring operations, reducing cost to clients.

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

Visit Emailwww.the-eic.com/Forms/NewsletterSignup lucy.chakaodza@the-eic.com • Phone +44 (0)20 7091 8600

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EIC (Energy Industries Council)

18

Overseas events It’s all about Africa

Over the next five years we expect to see in excess of US$300 billion worth of CAPEX investment across the oil and gas sectors, with the main countries receiving this investment being Nigeria, Angola, Mozambique, Algeria and Egypt.

Camilla

Delegations will give companies the opportunity to meet with the major investors and contractors in the market and to get a better understanding of the huge opportunities that exist for the UK supply chain to supply goods and services.

Tew

Benefits of joining • 10-12 pre-arranged group meetings with key EPC contractors and operators • Understanding of country’s local content laws, current projects and more • Meetings with key decision makers (i.e. procurement/supply chain managers) • Evening reception at the British Embassy, where you can network with operators, EPC contractors, potential agents • Logistical assistance from EIC delegation manager and support/advice on markets from EIC sector analysts Overseas Delegation to Algeria, 28-31 October 2019 The oil and gas industry is dominated by Sonatrach who are proposing to make investments of approximately US$55 billion between 2017 and 2022. 29% of this investment is expected to be seen in the upstream sector, 30% in the downstream and 41% in midstream.

Meeting wish list includes: Algerian Methanol Company (Almet), Fertial Spa, Nigerian National Petroleum Corporation (NNPC), PTT Exploration and Production (PTTEP), Sonatrach, Air Products & Chemicals Inc, Bonatti, China Harbour Engineering Company, China Petroleum Engineering and Construction Company, Cosider Group, Emerson, ENGTP (Entreprise Nationale des Grands Travaux Pétroliers).

Africa Oil Week, 4-8 November 2019 DIT in partnership with EIC and SDI will be hosting the UK group at AOW. Details will be released soon. Please contact us in order to register your interest now.

Overseas Delegation to Nigeria, 25-28 November 2019 Nigeria is a major player in the oil and gas industry with total proven reserves of over 37 Bbbl of oil, and production rates of over 2 MMbbl/d. Add to this proven gas reserves of around 193Tcf, significant LNG liquefaction capacity, and a growing downstream sector, Nigeria represents a significant market of opportunity for the UK oil and gas supply chain.

Meeting wish list includes: NNPC, Shell Petroleum Development Company of Nigeria (SPDC), Brass LNG, Brass Fertilizer Company, Nigeria LNG, Office Cherifien des Phosphates (OCP), Indorama Eleme Petrochemicals Ltd, Total, Dangote, Eni, ExxonMobil, Chevron, Ladol, Daewoo E&C, NigerDock, Toyo Engineering Corporation.

Overseas Delegation to Angola, 2-4 December 2019 Angola is the second largest oil producer in Africa.

Since 2018 the market in Angola has changed and the outlook is positive once again for companies looking to do business in-country. Projects are again commercially viable and we have seen some significant cost savings made on offshore developments.

Meeting wish list includes: BP, Chevron, Eni, ExxonMobil, Sonangol, Total, Dynamic Industries, EDG Angola, McDermott, Petromar, Saipem, SBM Offshore, Subsea 7, TechnipFMC, Worley.

Overseas Delegation to Mozambique and Kenya 3-7 February 2020 Mozambique leads the way through the investments being led by Eni, ExxonMobil and Anadarko. Eni’s Coral developments are well underway and will see a floating LNG facility enter operations in 2022. Two major LNG developments linked to the significant gas finds off the coast of Mozambique will reach a final investment decision during 2019.

Led by Tullow, Kenya will see several billion dollars of capital expenditure in the near future. The South Lokichar development will be developed in phases and see a significant pipeline constructed to transport the waxy crude some 750km. After a number of delays a final investment decision is now expected to be reached at the end of 2019 on the developments.

Meeting wish list includes: Anadarko, ENH, Eni, ExxonMobil, Sasol, Shell, Tullow Oil, Aker Solutions, BHGE, McDermott, Saipem, TechnipFMC, Worley, Schlumberger, Wood.

For more information and to enquire about EIC delegations, please contact lucia.durante@the-eic.com Get in touch Share your news and views...

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

19 19

UK and Europe news Regional update June saw a whole host of events, new stakeholder relationships and recruitment for a business lead and events manager for our northern region.

Forthcoming events in July 2019

Jo Cam

pbell

Following on from our successful Floating Offshore Wind (FOW) event last year, Nicola and Caitlin Henderson, along with the EIC’s power, nuclear and renewables team, ran our annual FOW Showcase, on Tuesday 11 June.

This event saw over 100 attendees and 17 sponsors who heard from key industry speakers including Equinor, Aker Solutions, Offshore Wind Consultants, Kincardine Offshore Windfarm Project, SBM Offshore, Bourbon Subsea Services, VRVHOF, Ideol, Recharge, Catapult, Atkins, MHI Vestas Offshore Wind and Principle Power.

The successful event provided delegates with an unmissable opportunity to hear all the latest sector news, and to keep up to date with global supply chain opportunities and meet some of the leading players in this growing market.

We also held our EIC Golf Tournament, on Monday 17 June 2019, at the beautiful Meldrum House Hotel & Golf Course estate, Aberdeen. Teams of four played 18 holes and enjoyed a networking BBQ and awards ceremony.

This event was a fantastic day out and allowed an opportunity for players to network with delegates from across the UK and beyond, as they prepared for a busy two days at our Energy Exports Conference.

The UK events team is delighted to announce that we will be partnering with Investec Bank to run a programme of UK events, hosted at their beautiful facility in London.

Come and join us for our first Summer Networking Evening, in partnership with Investec Bank Plc. Enjoy the beautiful views of London from the rooftop bar at their office, while we have an evening of networking, refreshments and canapes. Following on from our London event the team will also run a summer networking evening in Aberdeen, on 3 July.

This is the perfect opportunity to entertain clients and make new connections in a relaxed atmosphere. To book your place, please visit our website.

We are pleased to announce an All-Africa Export Showcase, in September, which will explore opportunities in Africa. To register your interest, again please visit our website.

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

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Summer Networking Evening Monday 1 July 2019, Investec Bank Plc, London

Summer Networking Evening Wednesday 3 July 2019, Revolucion de Cuba, Aberdeen

EIC Northern Region Open Day Friday 5 July 2019, Wood Plc, Darlington

Regional news

Europe’s onshore wind continues to persevere

Development of onshore wind farms in Germany has recently struggled. Its latest onshore wind tender was significantly undersubscribed for the fourth time, awarding only 270MW out of a tendered 650MW. However, this stagnation is not seen in the rest of Europe.

In Finland, Valorem and Octopus Energy Investments have announced the development of the 71MW Saunamaa and Suolakangas wind farms, for which Vestas has been chosen to provide 17 turbines and K2 Management to provide technical advisory services.

The Zeewolde Windparke has signed a 320MW turbine repowering contract with Enercon, which will be the largest onshore wind farm in the Netherlands. Turkey is soon to announce the successful bidders from its tenders for four 250MW wind farms in Aydın, Muğla, Balıkesir and Çanakkale. In Ukraine, Nordex has secured a deal to supply 29 more turbines to the Syvash wind farm, and Vestas is to supply 21 turbines for the Finnish 90MW Kalax wind farm. Poland is also progressing with a loan from EBRD for its 220MW Potegowo wind farm.

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

@TheEICEnergy

EIC (Energy Industries Council)

20

Middle East news Regional update

It’s a sure sign of summer if the chair gets up when you do, however it remains business as usual across the region with a number of key events having taken place.

Regional news

Ryan M

cPhers

on

Our Business Opportunities Luncheon with KBR on 25 June proved to be a highly informative event with an organisation that is undertaking a significant amount of business in the region. Our team is more than happy to discuss the key points from the event with any of our members who were unable to attend.

The Energy Exports Conference (EEC) held in Aberdeen in June was also a tremendous success. I was personally delighted to welcome inward delegations from both ADNOC and Aramco, illustrating their ongoing commitment to engaging with the UK supply chain.

We are pleased to announce that our ever popular Curry Night will return to Dubai on 21 August, and for the first time in Abu Dhabi on 28 July. The latter will have a speaker from DMG who organise the Abu Dhabi International Exhibition & Conference (ADIPEC). They will be focusing on the four pillars that this years event is centered on and the 11 digitalisation themes. Details of both of these events can be found on the EIC website.

From a political perspective, the reported drone attacks on two Saudi oil pumping stations, following the sabotage of four ships off Fujairah, UAE, has caused some political instability in the region. This had a knock on effect with ExxonMobil pulling staff out of Iraq after US embassy instructions to move all non-essential American workers out of the country following safety concerns.

With the focus on ADIPEC after the summer, I also wanted to draw your attention to the 24th World Energy Congress which will take place in Abu Dhabi from 9-12 September 2019. This is the first time that the World Energy Council’s triannual event is taking place in the Middle East, presenting a unique opportunity for participants to better understand energy issues and solutions from a global perspective.

Finally, we are delighted to welcome Bilco as our first GCC (Gulf Cooperation Council) member in the region and look forward to working alongside them in the weeks and months ahead. This category of membership represents a new way to engage with the EIC in the region, where we hope to see many more companies benefit from this approach.

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

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Sempra and Saudi Aramco sign 20-year LNG deal

A 20-year agreement to buy liquefied natural gas (LNG) from a Texas export terminal being developed

by California-based Sempra Energy, has been signed by Saudi Aramco. The two companies confirmed the sale-and-purchase agreement for 5m tonnes per annum (MTPA) of LNG. The expectation is that Saudi Aramco will use the LNG for power generation in Saudi Arabia or resell it on the global market. Sempra is developing the Port Arthur LNG export terminal in Texas, one of approximately a dozen US export terminals being developed as oil and gas exploration companies look for new markets for their natural gas.

EDF-led consortium wins 800MW combined solar PV and CSP in Morocco

A consortium led by EDF will build the 800MW Noor Midelt I solar project in Morocco, comprising of both concentrated solar power (CSP) and photovoltaic (PV) technologies. EDF’s subsidiary EDF Renewables, Abu Dhabi Future Energy Company (Masdar) and Green of Africa won the bid for the design, construction, operation and maintenance of the project. The project will be built 20km north of Midelt in central Morocco.

Construction is expected to begin in the last quarter of 2019, with operations scheduled for 2022. Combining CSP and PV solar technologies will boost output at the solar project, allowing it to generate flexible, dispatchable and competitive electricity for the national grid.

Forthcoming events

Please go to page 12 to see upcoming events in your region

21 21

Asia Pacific news Regional update

We are looking forward to EIC Connect Energy South Korea, which will be held in Seoul in the prestigious Four Seasons Hotel on 8 Azman October 2019. After much Nasir deliberation and discussion with the Department of International Trade of South Korea, it was decided to plan for four separate panel sessions including a new session on nuclear decommissioning. The other three sessions will focus on oil and gas, power and renewables.

Targeted speaker companies include Samsung Heavy Industries, Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering, TechnipFMC, and Hyundai Engineering & Construction. We have received a significant number of enquiries with regards to this event even though we have yet to officially launch it on the EIC website. This shows the high level of interest in energy project opportunities in South Korea by our members in the region. Aveva, Lonestar, Koso Kent Introl, Vulcanic, and Sky Futures are some of the companies that have expressed interest in participating.

Following the month of Ramadhan was Eid-Fitr, which was celebrated in many countries in the Asia Pacific region. We met some of our members and industry colleagues at the Petronas open house, Sapura Energy open house, and MISC and MOGSC Raya events attended by industry players in Kuala Lumpur.

In August, we are planning a renewable event in collaboration with the Malaysian Oil & Gas Services Council (MOGSC), focusing on how to migrate into the renewable energy business from the oil and gas industry.

Speakers lined up for the event include Petronas New Energy, Equinor, Shell and several local renewables companies. The event will be officiated by HE Yeo Bee Yin, Minister of Energy, Malaysia, and will convene senior representatives from Petronas.

Other events in the pipeline include a training workshop on the requirements of the Malaysian Employment Act and how to avoid disputes which could result in hefty costs if not handled properly. We hope to work with an international law firm based in Kuala Lumpur who will share their expertise and experience with our members especially those who are new to running a business in Malaysia and the Asia Pacific region.

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

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Regional news

US$1.6bn for Yulin ethane cracker

PetroChina Lanzhou Petrochemical is planning to invest US$1.6bn to construct an 800,000 tonne/year ethane cracker at Yulin in Shaanxi province. The construction of the project is expected to begin later this year, with start-up scheduled in June 2021. The project will also include a 400,000 tonne/year high density polyethylene (HDPE)/linear lower density polyethylene (LLDPE) swing plant and a 400,000 tonne/year HDPE plant. The cracker will require approximately 1.05m tonnes/year of ethane, which will be supplied by PetroChina Changqing gas field via a pipeline. Lanzhou Petrochemical will be the operator for the plant.

TTC Group commits to Ben Tre offshore wind farm

The EPC procurement process is currently underway and is expected to be finalised with a contract award

by July 2019. The construction is scheduled to begin in Q3 2019. The phased development of the 310MW offshore wind farm project is located off Ben Tre Province, Vietnam. The first phase will see the construction of 30MW of wind power, with the second comprising 49MW and the last 231MW. The first development stage will see the deployment of up to 15 turbines. According to the developers, the permitting and signing of a power purchase agreement is yet to be completed. The project is looking at a tariff of US7.8c/kWh to approximately US9.8c/kWh, however, the first phase of the project will need to be completed by 2021 to participate in the tariff scheme. The second phase of 49MW is also scheduled to be commissioned in 2021, with the last phase to be completed by 2023.

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

@TheEICEnergy

EIC (Energy Industries Council)

22

North and Central America news Regional update

Planning is now full steam ahead for EIC Connect Oil and Gas USA. Don’t miss your chance to market your company’s products or services and ensure that you book your delegate Amand a Duho n place to be first on the list for one-to-one meetings. We look forward to seeing everyone on 26 September in Houston.

We are delighted to announce EUTEX and Pentagon as our bronze sponsors.

For the sixth straight year in a row, Mexico’s oil and gas reserves have fallen and are now at 6.9%.

Although most of the country’s proven reserves belong to the national oil company, PEMEX, new discoveries have been made by private producers since the 2013-2014 Energy Market Reform and opening of the market. Mexico has the potential to reach 2 million bpd of oil output by 2022, and therefore has the potential for business opportunities. With this being said, the EIC Houston office will host its first meeting of the Mexico Advisory Committee for EIC Connect this month. Watch your email, as we will announce the date of the second annual EIC Connect Mexico Energy Forum this month.

The EIC North and Central America office is situated in the heart of Houston’s energy corridor, at the centre of global energy project decision making. We currently have three office suites available, as well as virtual and hotdesk services. If you are interested in finding out more about EICLaunchPad or booking a hot desk or conference facilities at the EIC North and Central America office in Houston, please contact lisa.kandala@the-eic.com Amanda Duhon, Regional Director, North & Central America amanda.duhon@the-eic.com

Regional news

Occidental wins bidding war to acquire Anadarko

In the bidding war to acquire Anadarko Petroleum and its attractive portfolio of assets in the Permian Basin, Chevron Corporation withdrew from its competition with Occidental Petroleum (Oxy).

Chevron’s US$33bn acquisition of Anadarko was widely assumed to be a certainty, as their agreement announced in mid-April 2019 was only pending approval from Anadarko shareholders.

After Oxy made an offer of US$38bn, however, Chevron opted out of increasing its offer. Anadarko ultimately reached a definitive agreement to be acquired by Oxy; affording Chevron a US$1bn contract termination fee.

Massachusetts announces another 800MW wind energy tender The Massachusetts Department of Energy Resources, in collaboration with electric distribution companies, has initiated the state’s second 800MW offshore wind solicitation within one year. Bids are due in August 2019, with a selection expected in November 2019.

Forthcoming events

Please go to page 12 to see upcoming events in your region

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23 23

South America news Regional update

The second Brazil Energy Future Summit is approaching fast.

Sponsorship opportunities are now available for the event which will take place between 2-3 September.

Clariss e Roch a Last year, more than 160 delegates, contractors, operators, suppliers, sponsors and speakers from government and academic institutions attended.

We have a selection of sponsorship packages to suit a variety of budgets. Benefits include the opportunity to moderate panels, brand recognition among key players in the energy industry, exceptional networking with influential decision makers, lower rates for additional delegates from your company and more.

If you want to know more about sponsorship packages and opportunities for Brazil Energy Future Summit 2019, please contact Luanna Souza, Project Manager luanna.souza@the-eic.com

This month the EIC Rio office will host an event with McDermott on 3 July. The great American contractor is now looking more carefully to the South America region, particularly Brazil.

After McDermott’s presentation, Pietro Ferreira, Senior Regional Analyst for South America, will deliver a free presentation about the most recent projects across the region and explain more about EICDataStream features through a live demonstration. Attendees will gain extensive insight on over 8,500 global projects across the entire energy spectrum, and understand how this powerful tool can help your business development.

If you are not able to attend this specific date, please contact Pietro Ferreira to schedule a meeting or call to obtain customised training for you and your team. pietro.ferreira@the-eic.com If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com

Regional news

Major subsea gas pipelines on the horizon

Brazil will require three major subsea gas pipelines to carry gas from pre-salt areas to the shore, according to a study by the country’s Energy Research Office (EPE). The pipelines will demand an investment of US$2bn and are expected to boost the country’s presalt gas export capacity by 30-45MMcm/d.

Argentina offshore round attracts IOCs

The country’s first offshore exploration and production bidding round has awarded blocks to various IOCs. Equinor acquired four blocks, followed

by ExxonMobil (3), Total (3), Tullow Oil (3), Shell (2) and Eni (one block). YPF, the national oil company, obtained one block in partnership with Equinor.

RenovAr auction attracts 56 projects

Argentina’s third RenovAr energy auction has attracted 56 renewable projects with a combined capacity of 400MW and requiring an investment of US$520m. Designed for projects with a maximum capacity of 10MW, the latest RenovAr auction will provide bidders with the possibility to compete for 350MW of allocated capacity across the country.

Solar and wind projects make up the majority of bidders, followed by biomass, small hydro power facilities and biogas projects. The winners will be announced on 22 July.

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

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@TheEICEnergy

EIC (Energy Industries Council)

24

EIC Chase the Sun Saturday 22 June 2019

EIC smashes charity cycle challenge fundraising target for Cancer Research UK A four-man team of riders from the Energy Industries Council has completed a cycle challenge superseding the target of £2,500 raising more than £3,000 for Cancer Research UK. East coast to west coast, the 205-mile ride began from Minster, Isle of Sheppey in Kent to Burnham-on-Sea in Somerset in one day, starting at sunrise and finishing 39 minutes ahead of time before sunset.

More than 1000 cyclists took part in the challenge this year on Saturday 22 June, making it the largest to date in its 11-year history.

The ride attracts a broad range of cyclists from many countries and backgrounds, from trained athletes to determined novices, experienced long-distance adventure riders to urban cycle couriers with the goal of chasing the sun to view the sunset on the coastline.

EIC Head of Oil and Gas and Business Development, and one of the riders, Neil Golding said, ‘We are delighted to take part in the challenge once again this year. I’m really proud of the EIC team, covering 205 miles in one day is an amazing achievement. While we are all very sore and tired, all the aches and pains are worth it to support such a great charity such as Cancer Research UK.’ Claire Cullen, Regional Manager at Cancer Research UK commented, ‘What an achievement EIC! Chase the Sun is no easy challenge. To cycle 205 miles in a day and exceed your fundraising target is fantastic. Your cyclists and support crew truly have something to be proud of in raising vital funds for Cancer Research UK. We appreciate how much training and preparation go into the logistics to make this happen. We are only able to reach our vision of 3 in 4 people surviving cancer by 2034 because of amazing people like the team at the EIC raising money. Thank you.’

Donations to help meet this goal and support the charity can still be made via https://www.justgiving.com/ fundraising/energy-industries-council-chase-the-sun EIC staff who took part in the 205-mile charity cycle ride were Head of Oil & Gas and Business Development Neil Golding, OPEX Analyst Tom Bacon, Midlands Membership Manager Andrew Scutter and former EIC Energy Analyst Richard Vale.

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25

ENERGY EXPORTS CONFERENCE Access $150bn of global opportunities Aberdeen Exhibition & Conference Centre Aberdeen / 18-19 JUNE

2019

More than US$150bn of global projects requiring UK products and services were discussed in Aberdeen by over 20 major operators including Aramco, Ørsted, BP and Shell, at the Energy Exports Conference (EEC) on 18-19 June.

Over the two days, high-level discussions focused on the financial, practical and in-country support they provide to enable UK companies in the oil and gas, power and renewables sectors, to export or expand into new markets around the world.

The agenda was packed with high-level panel sessions and presentations featuring 100 speakers from companies such as BP, Subsea UK, ADNOC, Bechtel, Wood, Uganda National Oil Company and Petronas, Shell and Pertamina.

A plenary session featuring government ministers and CEOs from export agencies and specialists including the Department for International Trade, UK Parliament, Scottish Development International, UK Export Finance, and Oil and Gas Authority, opened the conference.

EIC CEO Stuart Broadley said, ‘Success at the event could contribute to one of the key planks of the UK oil and gas industry’s ‘vision’ for the next 15 years.’

Vision 2035 envisages a doubling of the UK supply chain’s share of the global export market.

The exhibition hall at EEC was a bustling hub of activity at the event. Companies had the opportunity to raise their profile, showcase new products and services to buyers, and position themselves as a leading voice in the global energy industry, to a crowd of more than 500 UK supply chain delegates, EPC contractors and leading global operators.

Aramco plans to invest US$500bn (£320bn) over the next 10 years in the global energy market and diversify away from oil, presenting an unparalleled opportunity for the UK supply chain to win significant work on global projects.

EIC CEO Stuart Broadley added, ‘This is the biggest event we have ever organised. By attending the EEC, energy service firms potentially did three months’ worth of business, having had access to project updates, market intelligence and networking, in just two days.’

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EIC (Energy Industries Council)

BO O N O KI W NG

EIC

NATIONAL DINNER 2019

3 OCTOBER

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

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

Accommodation is also available at the Club Quarters Hotel at 8 Northumberland Avenue.

THE MOST EXCLUSIVE EVENT IN THE UK ENERGY I N D U S T R Y ’ S S U P P LY CHAIN CALENDAR Join us at the most prestigious event in the UK energy industry’s supply chain calendar as we celebrate the achievements and successes achieved by YOU, our members.

Your guest speaker Dara Ó Briain will host the 2019 EIC Awards Ceremony. Dara is a celebrated stand-up comedian and host of well known TV shows including Mock the Week and Have I Got News For You. In addition to comedy, Dara has a love of all things science, co-hosting Stargazing with Professor Brian Cox.

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

Cost Table of twelve: £4,200+VAT Individual place: £365+VAT

Awards ceremony

Most of the major Tier 1 and Tier 2 EPC contractors, OEMs, operators and developers are represented within the audience, making this a unique opportunity to promote your brand. Please contact:

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

Jamie Lowes, EIC Sales Executive +44 (0)1429 874 453 jamie.lowes@the-eic.com

BOOK TODAY

T: +44 (0)1429 874 451 E: nationalevents@the-eic.com www.the-eic.com/nationaldinner

© EDF Energy 2017

Sponsorship opportunities

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

Energy2019

Connecting the supply chain to global opportunities 10 September • Manchester United, UK

BO

O NO KI W NG

Contact us ABERDEEN TEESSIDE LONDON HOUSTON

DUBAI KUALA LUMPUR RIO DE JANEIRO

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

EIC Northern Region

Office 314, Hub Two The Innovation Centre Queens Meadow Business Park Hartlepool TS25 5TG UK Tel +44 (0)1429 874 512 Email teesside@the-eic.com

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EIC (Energy Industries Council)