Inside Energy March 2017

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Monthly news for EIC members March 2017

Spotlight on Technology

EIC Monitor

Catch up with all the major contracting activity that took place in Q4 2016

We launch our new section by focusing on Magnetrol’s ECLIPSE 706 guided wave radar level transmitter

Sector Analysis

We look at the developments in Uganda’s oil and gas sector as it gears up for US$20bn of investment

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Sector analysis

Uganda ready for US$20bn oil investment Although Uganda does not currently produce any hydrocarbons, the East African country has the potential to be a net exporter within the next five years. The first commercial oil discovery in Uganda was made in the Albertine Graben area in 2006.

Since then, successful well appraisals have boosted Uganda’s proven crude oil reserves from zero in 2010 to 2.5bn barrels as of the end of 2015.

Chad B

arnes

By 2020, it is expected that US$20bn will be invested to develop Uganda’s oil and gas industry. The upstream portion includes the US$5.2bn Lake Albert Development, that will focus on three main areas. The first area to be developed will be the Kingfisher field, located in the south of Lake Albert. The field, with 196m barrels of oil reserves, will be developed in two phases, and is expected to see first oil in 2020 or 2021. Phase I will include the drilling of development wells, construction of facilities and flowlines as well as a central processing facility at Buhuka with a capacity of 20,000bbl/d. Oil will be exported via a new 80km pipeline to a terminal south of Hoima. During Phase II the capacity of the central processing facility will be doubled by adding another processing unit. Following the development of the Kingfisher field, the Kaiso Tonya and the Buliisa areas will be developed, bringing the combined production rate up to 230,000bbl/d from over 700 wells linked by extensive infield flowline infrastructure.

However, as reserves increased significantly in the Lake Albert area, progress in reaching first oil did not.

Contractual and tax disputes, differences between the Ugandan government and international investors, and disagreements over the export pipeline route have all contributed to a delayed production start date. 2016 saw many of the issues resolved, with the government granting production licences to CNOOC, Total and Tullow, the three major operators in the country. Following Total’s US$900m stake increase in the Lake Albert Development in January, the projects are likely to move ahead more rapidly.

The produced oil will then either be processed at a new refinery in Hoima for local and regional needs, or will be exported via the Hoima Export pipeline. The 1,443km 24-inch oil export pipeline will run from Hoima in Uganda to the Port of Tanga in Tanzania. Originally planned to run through Kenya, concerns regarding security and cost changed the route to head south through Tanzania.

The oil from the Lake Albert fields is very low in sulphur content but also has a high wax content, which means it solidifies if allowed to drop below 29 degrees Celsius.

Therefore, the Hoima Export pipeline will be the world’s longest heated crude oil pipeline, costing around US$4bn.

Route planning using LIDAR technology has been completed in the Uganda section, while the Tanzania section is expected to be ready by February 2017.

At present, landlocked Uganda has no oil and gas infrastructure and therefore is developing key projects in the upstream, midstream and downstream sectors.

The new 29sq km US$4bn refinery at Hoima will be built in two stages and will produce a range of products such as LPG, kerosene, petrol, diesel, jet fuel and heavy fuel oil. Phase I involves the construction of a 30,000bbl/d refinery, Phase II will expand capacity to 60,000bbl/d. A 205km refined fuel product pipeline will also be built from the refinery to the planned Buloba distribution and storage facility in Kampala, Uganda’s capital.

© 2017 TULLOW OIL PLC

All the above projects heavily rely on each other, and are in the early planning stages. To meet the 2020 first oil target, Uganda will need significant assistance from international service providers, which should provide plenty of opportunities for the UK supply chain.

Chad Barnes, Sector Analyst (Upstream) info@the-eic.com

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Inside this issue...

You’ll notice this month’s issue of Inside Energy is bigger than usual. That’s because in addition to our regular monthly features, we also bring you up to date with all the major contracting activity from Q4 2016 in our Monitor report on page 6 as well as launching a brand new section: spotlight on technology (page 22).

While the industry is still facing challenging conditions, there are some bright spots. In the power and nuclear sectors 49 contracts were awarded across 43 projects globally, compared to 31 in Q3.

Likewise, things have picked up in the upstream sector with a 3% increase in contracting activity on the previous quarter. Here the Middle East continues to lead the way, however, Europe has seen some significant front end engineering and design activity.

Our latest addition to your newsletter, spotlight on technology, opens by focusing on Magnetrol’s ECLIPSE 706 guided wave radar level transmitter, which uses a whole range of advanced components and processes to provide incredible measurement performance.

The spotlight on technology section is a great opportunity for our member companies to showcase some of the world-leading innovative products and services which they provide. If you’re an EIC member and you’ve created some game changing technology which provides real benefits to clients and the industry alike we’d love to hear from you. Please get in touch with me via my email below.

Now a firmly established feature of Inside Energy, this month’s one-toone interviewee is John Hartley, Managing Director at Extronics. Turn to page 4 to find out how their wireless technology is improving safety at sites around the world and how by expanding their operations they’ve managed to deal with the tough times.

For oil and gas industry suppliers looking to follow Extronics’ example and broaden their horizons, Uganda is a country certainly worth exploring. EIC Upstream Sector Analyst Chad Barnes provides an update on the exciting developments taking place in this East African country, opposite.

Following years of stalled activity, now that production licences have finally been granted, pipeline routes have been signed off and majors are starting to invest, Uganda is looking to bring its resources online quickly. With no oil and gas infrastructure in place, an anticipated investment of US$20bn and a 2020 target date for first oil, the next few years will provide massive opportunities for the UK supply chain.

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Contents Sector analysis

2

Inside this issue...

3

One-to-one 4 EICDataStream 5 EIC Monitor

6

New members

10

Member news

12

Social media round up 15 Forthcoming events

16

UK events

18

Overseas events

21

Spotlight on technology 22 EIC training

23

Middle East news

24

Asia Pacific news

25

North America news

26

South America news

27

Follow @TheEICEnergy

Join the EIC LinkedIn Group

4

One-to-one with John Hartley Managing Director, Extronics

Extronics is a leading global designer and manufacturer of intrinsically safe, explosion proof, and industrially rugged equipment. It serves customers that work in industrial environments and potentially explosive atmospheres, especially those in the oil and gas, chemical, pharmaceutical, petrochemical, and mining industries.

Q

You’ve recently launched your new iRFID500 handheld passive UHF RFID tag reader.

Can you tell us a little about it?

We created the iRFID500 in response to customer requests to help improve productivity, increase efficiency, and reduce costs. As a Bluetooth accessory that can work alongside smartphones and tablets or as a standalone device, it’s a versatile solution that streamlines our customers’ business processes – whether that’s tracking assets, monitoring maintenance tasks and planning, or demonstrating regulatory compliance.

Available either as certified for hazardous areas or rugged for industrial use, the iRFID500 is the latest development from our experienced R&D team, who are continually working on new projects that support our customers’ requirements.

A

Q

Wireless technology applications were once considered impractical and costly, however, their use is becoming more widespread.

What work has Extronics done to facilitate this?

Wireless connectivity is integral to safe and efficient operations for industrial companies.

Extronics has partnered with providers such as Cisco, Aruba, and Siemens to bring leading non-Ex wireless access points into hazardous areas.

A

We’ve also developed enabling technologies such as the iSOLATE range, which allows the deployment of non-certified antennas, as well as purpose built enclosure systems to withstand the harsh industrial environments.

We’re focused on delivering practical, cost-effective solutions that empower our customers to maximise their productivity and profitability in-line with Internet of Things and Industry 4.0 trends.

Q

Extronics is headquartered in the UK, but supplies customers globally. How do you ensure a high level of customer service?

We’ve built a network of likeminded sales partners across the world who bring their local experience to the table and make sure that each customer receives the right solution for their application. It’s important to us that our sales partners share our customer-centric ethos and our core values: integrity, customer care, teamwork, accountability, can-do attitude and innovation.

Of course, as well as our international sales partners, our team here in the UK is on hand to provide further support and we’re growing our technical support capabilities continually.

A

Q

Get in touch Share your news and views...

These are challenging times in the energy industry. What strategies are Extronics employing to thrive during this down cycle?

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

A

In difficult times such as these, operational efficiency is paramount: the efficiency and productivity of a plant goes straight on the bottom line.

We’re helping our customers to succeed by developing solutions to give them total mobility for their workforces, and digitising their previously trapped plant data.

As part of this strategy, we made the decision in October 2015 to take over the global distribution rights of AeroScout RTLS solutions for industrial customers, where we could add considerable value. Having been involved with AeroScout technology since 2005, we had a strong foundation to build on and we’ve gone from strength to strength since then.

Q

What plans does Extronics have in place for 2017?

A

I’m really excited about our future, both in 2017 and beyond. We’re restructuring our regional representatives to ensure even more support for our sales partners, and thus our customers.

We’re planning to stay at the forefront of technology for industrial applications in the process industries, using feedback from our customer base and sales partner network to make sure that everything we do brings practical benefits to our customers.

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Global opportunities THE US

South Texas Asset Repositioning (STAR) Programme Operator: Marathon Petroleum Value: US$2bn Marathon Petroleum Corp plans to merge its Galveston Bay and Texas City refineries from a process standpoint and build one hydrotreater between the two. The plant is scheduled to be completed in 2021 at a cost of US$1.5-2bn.

i

IRAQ

OMAN

Duqm Refinery Operator: Duqm Refinery Value: US$6bn The deadline for commercial bids to be submitted for the EPC contracts was 20 February 2017. Four companies were asked to submit bids to manage the construction phase of the refinery.

Majnoon Oil Field Development Operator: Shell Value: US$30bn Halliburton was awarded a US$201m contract to drill 30 wells and provide drilling services. Three rigs will drill the development wells and carry out work over the next two years.

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

SOUTH AFRICA

GERMANY

Duynefontein Nuclear Power Plant

Offshore Wind Farm Gode 3

Operator: Eskom Value: US$5bn Twenty-seven companies intend to provide a response to the request for information, including nuclear vendors SNPTC from China, France’s EDF, Rosatom from Russia and KEPCO from South Korea. Two requests for proposals are due to be released later in 2017.

Operator: DONG Energy Value: US$1.1bn The German Federal Maritime and Hydrographic Agency has granted planning permission for the German North Sea project, allowing multimegawatt class turbines to be installed. Following the permission, PNE WIND concluded the sale of the project to DONG Energy.

THAILAND

South Bangkok Combined Cycle Power Plant Operator: EGAT - Electricity Generating Authority of Thailand Value: US$550m Siemens, together with its consortium partner Marubeni Corporation, has received an order for the delivery of a turnkey contract.

Member notes area

• This is a great feature which allows you to store all of your notes on a project in one place as well as share them with other members of your company.

• On a project page simply click

‘Create Member Note’, add your note and click ‘Save’. Now all the members of your organisation will be able to see your notes on a project and you’ll be able to see any notes your colleagues make.

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EIC Monitor Oil and Gas Monitor Q4 2016 Upstream Upstream: number of major contract awards 60 50 40

Europe, and in particular Norway, dominated Subsea/ SURF activity. Four contracts were awarded to three subsea tie-back projects in Norway, including the US$1.2bn Dlavin project to Aker Solutions. Subsea 7 were awarded a US$225m contract at BP’s Atoll field offshore Egypt, as well as a US$150m contract for a subsea tieback at the Greater Western Flank project in Australia.

Midstream

30 20

Midstream: number of major contract awards 30

10 0

Subsea/SURF

Q4

2015

Q1 EPC

Q2 FEED

2016

Q3

Q4

25 20

Subsea/SURF 15

In Q4 2016 (October-December), a total of 36 major contracts (EPC, FEED and Subsea/SURF) were awarded across 27 upstream developments, a 3% increase from 35 awards in Q3 2016, and an 8% increase from 32 contract awards in Q4 2015. A total of 13 EPC, 14 FEED and 9 Subsea/SURF contracts were awarded.

EPC activity

Eight of the 13 EPC awards were in the Middle East.

Saudi Aramco awarded four contracts across two projects to Saipem and McDermott. The contracts were awarded as part of the long-term agreements made in 2015. Three contract awards in Oman, worth US$110m each, were for the Lekhwair and Qarn Alam projects in Block 6.

JGC was awarded a major US$1.4bn contract to boost the capacity of the Hassi R’Mel field in Algeria. The debottlenecking scope includes pipeline works and compression and injection facilities.

FEED activity

There was a significant increase in FEED awards from the previous quarter, particularly in Europe and the US. Hurricane Energy awarded three separate FEED studies for the major Lancaster field in the UKCS, while two contracts were awarded for field life extension projects at the Troll and Snorre fields in Norway. Likewise, three FEED contracts were awarded to Wood Group and SBM Offshore for the US$8bn Shenandoah field in deepwater Gulf of Mexico.

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10 5 0

Q4

2015

Q1 EPC

Q2 FEED

2016

Q3

Q4

Pre-FEED

A total of 17 major contracts (EPC, FEED and Pre-FEED) were awarded across 15 midstream developments, one less award than the 18 awards in Q3 2016, and a decrease of 37% from 27 contract awards in Q4 2015.

A total of 12 EPC contracts, 4 FEED and 1 Pre-FEED contracts were awarded.

EPC activity

With 12 contracts awarded, Q4 2016 has seen a 30% decrease in EPC contracting activity from the previous quarter. These EPC were awarded over several project types and locations. The Middle East saw the most activity in Q4 with a total of three contracts awarded.

The most notable EPC award of Q4 was the lucrative contract on the Turkish Stream projects. Allseas Group has been contracted to lay the first line of the 900km offshore gas pipeline in the Black Sea, with an option for laying the second line. Allseas will engage the world’s largest construction vessel, the Pioneering Spirit.

After no EPC awards in Q3 2016, Africa was one area which saw an increase in EPC activity in Q4. Hoegh was awarded the vessel construction EPC contract for the new build Ghana FSRU which is being developed by Quantum Power.

EIC Monitor

FEED activity

FEED activity has seen a significant increase in activity with four contract being awarded compared to only one in Q3. One of the most lucrative of these awards was for the Hoima Export pipeline. Gulf Interstate Engineering was successful in winning the work and will now carry out preliminary engineering for the 1,443km pipeline which will transport oil from Hoima, Uganda to the Port of Tanga in Tanzania. There was also a second award which was made to JGC America for FEED work on the Woodfiber LNG project in British Columbia. JGC America will carry out the engineering work to completion with KBR who was awarded the FEED in mid-2016.

Pre-FEED activity

One pre-FEED contract was awarded, an improvement on Q3 when no awards were made. The award was to KBR for early engineering work on the Probolinggo Regas terminal in Indonesia which is operated by Australasia LNG.

Downstream Downstream: number of major contract awards 50 40 30 20 10

Q4

2015

Q1

Q2 EPC

FEED

2016

Q3

Q4

PMC

A total of 31 major contracts (EPC, FEED and PMC) were awarded across 27 downstream developments, decreasing 20% from 39 awards in Q3 2016, and 29% from 44 contract awards in Q4 2015. A total of 25 EPC, 3 FEED and 3 PMC contracts were awarded.

EPC activity

Saudi Arabia and the US were the main key focal points for downstream activity in Q4 2016, accounting for 11 EPC contracts across eight developments. In Saudi Arabia, state-run operator Saudi Aramco awarded three EPC contracts, two of which were awarded to Tecnicas Reunidas. Tecnicas Reunidas 48-month EPC contracts, worth US$1.5bn, were for two packages to upgrade the Kingdom’s largest refinery to produce clean fuels. Also in Saudi Arabia, Sipchem appointed South Korean eTEC Engineering & Construction to upgrade its Methanol plant in Jubail.

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In Europe, five EPC contracts were awarded in Q4, as opposed to six in the previous quarter. CB&I was awarded a contract to provide engineering, procurement and construction management service for a delayed coker unit, following the successful completion of an extensive process planning study for the Pancevo oil refinery in Serbia. TechnipFMC secured two EPC contracts for upgrade projects in Russia and Azerbaijan.

In Malaysia, PETRONAS Chemicals awarded a US$328m contract to a consortium comprising of Tecnimont SpA and Huanqiu Contracting and Engineering, for a polyethylene production plant, as part of the RAPID development.

FEED activity

60

0

In the US, six contracts were awarded for EPC work on a series of expansion projects. ExxonMobil awarded four contracts for the Mont Belvieu and Beaumont Refinery Expansion projects. Mitsubishi Heavy Industries was awarded EPC contracts for both projects. Jacobs was selected to provide detailed design and construction management to support the Beaumont Refinery Expansion project. Another notable EPC award was to US-based Plant Process Equipment for a new ammonia plant in California.

FEED activity more than halved in Q4 2016 from the previous quarter. Amec Foster Wheeler dominated downstream FEED contracting activity, securing two of the three FEED contracts. Amec Foster Wheeler’s contracts included FEED and design to upgrade the 290,000bpd refinery on Jurong Island in Singapore and a US$5.38m, 18-month FEED contract with Sonatrach, for a new petrochemical plant in Arzew, Algeria. In China, Fluor Corp secured a FEED contract for a chemical manufacturing facility in Ningbo, Zhejiang.

PMC activity

US-based contractor Jacobs was appointed by MEGlobal for the engineering and project management of the US$1bn Oyster Creek Monoethylene Glycol Plant after Jacobs successfully delivered the facility’s front end engineering service. Another PMC award was made to Tecnicas Reunidas by Sonatrach for a new refinery in Skikda, Algeria. SOCAR-KBR JV was awarded a PMC contract to upgrade a petrochemical plant to meet international fuel standards as well as to increase the variety and quality of products of the Sumgayit facility in Azerbaijan.

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EIC Monitor

Power, Nuclear and Renewables Monitor Q4 2016 Global power and nuclear Global power and nuclear project contract awards Q4 2016

Forty-nine contracts were awarded across 43 projects globally compared with 31 contracts in the previous quarter. Of the 49 contracts awarded this quarter, 25 were for EPC contracts, 22 for OEM supply and 2 for PMC. Asia saw the highest level of activity with a total of 12 contracts being awarded, almost double compared with Q3. Conventional power accounted for most of this activity, with 10 contract awards across eight projects.

Sumitomo Corporation will construct a 1,400MW thermal facility as part of an upgrade of the Bang Pakong power plant near Bangkok, with General Electric supplying the turbines. Sumitomo is to begin construction in 2017, with completion targeted for the end of 2019.

Mitsubishi Hitachi Power Systems Ltd (MHPS) together with Mitsubishi Corporation (MC), received a full turnkey contract order in November for two main equipment trains for the 900MW Turakurgan thermal power plant in eastern Uzbekistan. MHPS will design, procure and manufacture the main equipment including the gas turbines and steam turbines, as well as major auxiliaries. It will also be responsible for marine transportation and commissioning.

MC will handle procurement for the remaining electrical components, and will be responsible for the project’s inland transportation, civil works and installation works at the site. Calik Enerji, a Turkey-based engineering and construction company in which MC is an investment partner, will supply the remaining components needed for plant construction and handle inland transportation as well as conduct civil engineering and installation works.

Construction is scheduled for completion in 2020.

Other major contract awards in Asia were for the PLTU Kendari-3 and Lombok combined-cycle power plants in Indonesia, the Navoi CHP extension in Uzbekistan, the Subic Redondo coal-fired power plant in the Philippines, Get in touch Share your news and views...

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the Bintulu combined cycle power plant phase 2 in Malaysia, and the Soma Port GTCC power plant in Japan.

MHPS secured a contract from Fukushima Gas Power to supply two trains for the 1.18GW GTCC power plant to be built at Soma Port.

In South America contracting activity picked up significantly during Q4 with 11 major awards compared to one in Q3. With power consumption growing at a rate of around 6% annually in Argentina, the country needs to invest extensively in new power plants. Siemens received orders from Argentina for a total of seven SGT-800 industrial gas turbines and two Industrial Trent 60 gas turbines. The turbines will provide a combined electrical capacity of approximately 500MW and help the electricity shortfall in Argentina. The SGT-800 turbines were ordered by the independent Argentine energy producer Albanesi SA, while the aeroderivative Industrial Trent 60 machines were ordered by the international energy group SoEnergy. Siemens will manufacture all seven SGT-800 turbines in its factory in Finspong, Sweden, and the two Industrial Trent 60 turbines in Mount Vernon, US and Montreal, Canada.

Major contract awards in Europe dropped by half in comparison to Q3, and were mainly upgrade and retrofit projects except for the Mainz combined heat and power (CHP) plant in Germany. Wärtsilä will supply a 100MW CHP plant to Kraftwerke Mainz-Wiesbaden AG in Germany. The Smart Power Generation power plant, consisting of 10 Wärtsilä 34SG engines running on natural gas, is scheduled to be fully operational by the end of 2018. Wärtsilä’s scope covers the EPC, as well as a 15-year service agreement.

In North America, the number of awards increased marginally compared to Q3. GE received two OEM supply contracts, one for the Van Alstyne Energy Center and another for the Peace River Gas-Fired Power project.

EPC and OEM supply contracts were also awarded for the Denton Energy Center, a 225MW gas-fired power plant in Texas.

Contract awards in the Indian subcontinent picked up considerably in Q4, with Doosan Power Systems receiving two EPC contracts for conventional power projects in India. MHPS received an order for a gas turbine at the Sirajganj thermal power plant project under way in Bangladesh. The turbine will be a core component of a dual fuel gas turbine combined-cycle power station with a contracted output of 413MW. Looking at Africa, the number of contracts awarded have again increased since Q3. GE received 2 OEM supply contracts for a liquefied petroleum gas power plant in Ghana and a coal-fired power plant in Tanzania. Wärtsilä was appointed as EPC contractor for the 57MW Smart Power Generation plant in Sierra Leone.

EIC Monitor

In the Middle East, contracting activity remained at similar levels to Q3. Most notably, Doosan Heavy Industries & Construction secured the main contract for the construction of the Fadhili Combined Cycle Power Plant project in Saudi Arabia in a deal worth US$896m.

Two other major contracts were awarded for combinedcycle power plants in Jordan and Iran.

In the nuclear sector, there were four major contract awards, consisting of two EPC awards and two OEM supply contracts. In Europe, Atomenergomash was awarded an OEM supply contract at the Akkuyu nuclear power plant in Turkey to supply the main turbine equipment

UK wind turbine contracts UK wind turbine supply contracts 25 20 15 10 5 0

Q4

2015

England

Q1 Northern Ireland

Q2

2016

Scotland

Q3

UK Offshore

Q4 Wales

Similar to Q3 2016, Q4 saw only three wind turbine supply contracts being awarded. Unlike last quarter this quarter only received onshore wind contracts. Although the number of contracts was the same, the total expected capacity has gone up from 150.15MW to 287.1MW and like the previous quarter the contracts were only awarded in Scotland and Northern Ireland. The three contracts were allocated to SSE Renewables’ Stronelairg project in Scotland and Energia Renewables’ Rathsherry and Cornavarrow projects in Northern Ireland.

for units 1-4, while a consortium of Airbus Safran Launchers, Nuvia, Cegelec CEM, Insituto Superior Tecnico, Millennium, AVT Europe and the UK Atomic Energy Authority won an EPC contract for the cask and plug remote handling system at the ITER Nuclear Fusion project.

The final two nuclear contracts were awarded in China.

China Nuclear Industry 22 Construction Company won an EPC contract for the nuclear islands of units 1 and 2 at the Xudabao nuclear power plant, and Dongfang Electric Corporation was awarded an OEM supply contract to supply the pressure vessel for the CGN demonstration floating nuclear power plant.

Stronelairg has been in development since the installation of the met mast in 2010, making this contract an important milestone for SSE Renewables. The project, which falls under the Renewables Obligation Certificate, won a three-year legal battle between the Highland Council and the opposing John Muir Trust in July 2016 and it is now entering the tendering phase for the balance of plant components. The turbines are expected to be supplied during the third quarter of 2017.

In December 2016, the Irish developer Energia Renewables awarded onshore wind turbine contracts to Enercon for the 21MW Rathsherry project in county Antrim and to General Electric (GE) for the 38.4MW Cornavarrow project in county Tyrone. In October 2016 contracts for the Rathsherry project including electrical balance of plant and civil works were awarded to Enersol and Adman respectively. The German company Enercon will provide seven E-82 3MW turbines during Q2 2017 with completion expected by the end of the year. For the Cornavarrow project, the GE contract to supply twelve 3.2MW turbines is the only contract awarded for this project to date. This project was originally developed by DW Consultancy and is expected to reach financial close in 2017 and be commissioned in mid-2018. It has also been reported that procurement of civils and electrical balance of plant contracts will be finalised soon.

The much anticipated Stronelairg project, with an expected capacity of 227.7MW, is the project with the largest contract awarded this quarter. Under the contract, Vestas will supply 66 3.45MW turbines as well as provide O&M services for 20 years upon commissioning. Out of the 66 turbines 53 will be V117 models with 135 metre tip heights and 13 will be V112 models with 125 metre heights.

The project will feature 59km of new and 21km of upgraded roads, a substation, control building, two welfare buildings, four met masts and borrow pits. It will also provide £15m of benefits to the local community over its 25-year lifetime with an additional £15m to the Highland Sustainable Development fund. The construction phase is expected to create more than 100 jobs.

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

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New EIC members NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

Cardno

ERM

ewi Recruitment Ltd

Suite 3 Oxford House Oxford Road Thame OX9 2AH

2nd Floor, Exchequer Court 33 St Mary Axe London EC3A 8AA

222 Bishopsgate London EC2M 4QD

The Nominated Representative is Mr Ronnie Mabry, VP Business Development

The Nominated Representative is Ms Sharon McNally, EA to Oil & Gas Lead, EMEA

The Nominated Representative is Mr Nic Yates, Client Director

Telephone +44 (0)1884 216 500

Telephone +44 (0)20 3206 5200

Telephone +44 (0)20 7877 8350

Email ronnie.mabry@cardno.com

Email sharon.mcnally@erm.com

Email n.yates@ewirecruitment.com

Web www.cardno.com

Web www.erm.com

Web www.ewi-group.com

Cardno PPI provides quality assurance services, third-party inspection services and data management solutions for oil and gas operators and vendors across the globe. Cardno’s well engineering division performs well design, enhanced recovery and other services for oil and gas wells worldwide.

Environmental Resources Management Ltd (ERM) is a global provider of environmental, health, safety, risk, social consulting services and sustainability related services.

As a market leader in international power recruitment, ewi connects clients with leading engineering and commercial experts, on some of the world’s most challenging projects.

The company has more than 160 offices in over 40 countries and territories employing more than 4,500 people who work on projects around the world. ERM is committed to providing a service that is consistent, professional and of the highest quality to create value for its clients.

With an understanding of the global marketplace, ewi specialist teams use their exclusive global expert network to track experts’ availability ensuring that the company always has profiles available. ewi sources the hard-to-find experts clients cannot find themselves.

ERM has worked with many Fortune Global 500 companies delivering innovative solutions for business and selected government clients helping them understand and manage the sustainability challenges that the world is increasingly facing.

Every one of ewi’s experienced teams is focused on a specific engineering discipline. They are immersed in your sector on a daily basis, ensuring that they have the technical and geographical understanding to provide the key experts you require for any project.

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New EIC members

NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

George Fischer

Petrogas; Mourik

Steel Plate & Sections

Paradise Way Coventry CV2 2ST

41 Earlsway Teesside Industrial Estate Thornaby Stockton-on-Tees TS17 9JU

Mill House Forge Lane Minworth Sutton Coldfield B76 1AH

The Nominated Representative is Mr Goffredo Maroni, Global Market Segment Manager

The Nominated Representative is Mr Chris Dubbers, Marketeer

The Nominated Representative is Mr Chris Whittam, Commercial Manager

Telephone +44 (0)2476 535 535

Telephone +44 (0)191 230 6600

Telephone +44 (0)121 313 4300

Email goffredo.maroni@georgfischer.com

Email chris.dubbers@petrogas.nl

Email chrisw@steelplate.co.uk

Web www.gfps.com

Web www.mourik.com

Web www.steelplate.co.uk

GF Piping Systems is a leading supplier of piping systems made of plastics and metal. The division focuses on system solutions, high-quality components for the safe transport of water, chemicals and gas as well as corresponding services. Its product range includes fittings, valves, pipes, automation and jointing technologies and covers all applications throughout the water cycle.

Petrogas Gas-systems BV operates worldwide. It’s UK business is Mourik UK Limited, the UK trading arm of the Jon Mourik Group of companies.

Steel Plate & Sections Ltd’s headquarters are situated in Birmingham, England where the company was started nearly 40 years ago. Today the company is not only the largest supplier of high yield, boiler and pressure vessel and other quality steels in the UK, it is also a multinational company supplying steel products throughout the world.

GF Piping Systems supports its customers in over 100 countries through its own sales companies and representative offices. The division is present in Europe, Asia and the Americas with more than 30 manufacturing sites and research and development centres, which also support energy-saving use of raw materials and resources.

The heart and brains of Petrogas is a team of committed process specialists. Using its extensive experience and driven by its passion for technology, the company designs and delivers tailor-made processing systems that provide maximum value for customers in the gas and energy industries.

The company considers its customers’ challenges as its own and it doesn’t step out until everything works as it should.

Services and support guarantee smooth and effective functioning during the entire lifetime of its systems.

By holding over 20,000 tonnes of stock at any one time at its facilities in the UK, continental Europe, Middle East and far east, Steel Plate & Sections Ltd can respond quickly to stock requirements, material shortfalls and total project supply anywhere in the world.

Clients value reliability and say that the company is great to work with. That’s because it treats the people it engages with as it would want to be treated.

To do what the company does, it must stay at the forefront of technology. Petrogas invests heavily in R&D, with the long-term focus on innovation squarely on renewable energy production.

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Member news Capula awarded major project by Drax Power

Capula, part of the Imtech Group, has been awarded a multi-million pound contract from Drax Power to replace the control systems on three of their 660MW biomass fired power generating units.

For this project, Capula will replace the obsolete APACS equipment with modern Schneider based control technologies as well as undertake the conversion and testing of the control system software. The new fully integrated control system architecture will be future-proofed and fully supportable, allowing Drax to continue operating efficiently and reliably throughout the life of the plant.

‘Capula is well placed to deliver this significant project as we have installed the majority of control systems at Drax and consistently ensure the prompt return to service of our client’s most valuable assets,’ said Mark Hardy, Capula’s managing director. ‘We are pleased to continue our long working relationship by contributing to Drax’s energy vision and supporting its commitment to deliver renewable forms of energy, a key focus area for the UK’s energy strategy.’

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For more information: www.capula.co.uk

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Drax Power Station in North Yorkshire is one of the UK’s largest producers of renewable energy and Europe’s single largest decarbonisation project. The project will see Capula replace the core process control systems responsible for the plant’s key functions including the combustion and temperature control functions, and the feedwater, turbine, generator and ancillary plant areas on units 1, 2 and 3.

Drax Power Station

CMP Products opens Moscow office

Cable gland and cable cleat manufacturer, CMP Products is cementing its presence in the Russian market, with the launch of a Moscow-based company.

Opened in early 2017, the Russian office will initially stock a range of hazardous area cable glands, such as the world-renowned Triton T3CDS, E1F-series and A2F-series.

It will also hold CMP’s full range of cable cleats.

A new website has been developed in Russian to support the expansion into the market, including an advanced product finder.

The expansion comes as part of CMP’s ongoing drive to identify market growth opportunities across the globe, which has most recently been seen in the opening of a new stock location in Alberta Canada earlier this year.

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For more information: www.cmp-products.com

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E2S Warning Signals to showcase its equipment at OMC 2017

On Stand A9, Hall 1 at the Offshore Mediterranean Conference (OMC), Ravenna, Italy 29-31 March 2017, E2S Warning Signals, a leading independent manufacturer of ATEX and IECEx approved audible and visual warning signals, will present the latest developments in its extensive range of explosion proof, hazardous location and intrinsically safe audible and visual warning devices for the onshore and offshore oil and gas industry.

Among the new products on show will be the DNV approved and MED compliant signals for fire and general signalling use in marine applications.

The E2S stand will be manned by Richard O’Leary, E2S Business Development Manager and Fabio D’Errico, E2S’s local agent in Italy.

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For more information: www.e2s.com

Gabbro names CEO

Integrated metals and manufactured component solutions provider Gabbro Precision Ltd has named Gareth Roberts as its new group CEO. Gareth brings over 35 years of oil and gas experience as well as extensive international management experience to his new role.

He spent ten years offshore with Schlumberger before working for FMC (including running their Oman manufacturing facility) and then Schoeller Bleckmann (as UK MD and then Head of Oilfield Services and Supply Division). He has also worked at Acteon and AF Global and run businesses in Brazil, Dubai, Italy, Siberia, Singapore and Vietnam.

Commenting on Gareth’s appointment Gabbro Chairman David Barrass said, ‘As we complete the repositioning of Gabbro, I believe Gareth’s experience will complement our existing senior team and strengthen our ability to take advantage of the evolving oil and gas environment.’

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For more information: www.gabbroprecision.com

Global Marine Systems awarded Atlantic cable maintenance contract extension

Global Marine Systems Ltd

Subsea cable specialist Global Marine Systems Limited’s Atlantic cable maintenance agreement (ACMA) has been renewed. The new contract began on 1 January 2017, and runs for five years, through to December 2021.

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ACMA is a non-profit co-operative subsea maintenance agreement consisting of 60+ members. ACMA members are companies responsible for the operations and maintenance of undersea communications and power cables in the Atlantic, North Sea and south-east Pacific Ocean.

Global Marine has delivered maintenance services across the Atlantic since the first cable was laid in the 19th century and has been a key supporter of the agreement since its inception in 1965.

Global Marine’s dedicated maintenance vessels, the Wave Sentinel and Pacific Guardian, will be servicing the ACMA from their respective bases in Portland, the UK and Curacao in the Netherlands Antilles. Both vessels are fitted with powerful remotely operated vehicles which offer flexible, effective solutions for monitoring, cutting and burying cable.

‘We appreciate the confidence placed in us by the Atlantic Cable Maintenance Agreement members and look forward to ensuring that their cables are effectively protected,’ said John Walters, Maintenance Director, Global Marine. ‘The resilience of communication networks throughout the Atlantic is critically important to companies and consumers alike, and Global Marine is proud to again be of service to maintain these vital connections.’

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For more information: www.globalmarinesystems.com

Subsea Inspection Service launched

by Lloyd’s Register Lloyd’s Register (LR), a leading provider of integrity, compliance and specialist risk consulting services, has unveiled its Subsea Inspection Service to support underwater inspections of subsea pipelines, assets and facilities belonging to energy companies operating offshore.

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Member news

Headed by LR’s Subsea Inspection Manager Andrew Inglis, and delivered by the company’s inhouse experts in subsea inspection, survey and asset integrity, services will be provided to operators and contractors in the offshore oil and gas, wind farm and submarine cable sectors. The new unit will provide project management, consultancy, personnel, quality control, data processing and data management for ROV, AUV and diver projects.

Lloyd’s Register has significant capability and experience within the subsea sector including management of a wide range of offshore projects and operations across the energy mix. By uniting this expertise and experience with our focus on safety, quality and cost-efficiency, we aim to be the preferred subsea inspection management supplier for our clients.

Andrew Inglis, Subsea Inspection Manager, Lloyd’s Register

Managed and co-ordinated in Aberdeen, the Subsea Inspection Service will be delivered to clients in all offshore energy regions through LR’s global network of office locations.

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For more information: www.lr.org

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Member news

Reflecting on the demands of the project, Tim Green, OMS Operator, said, ‘Much of the pipework to be inspected was in the horizontal position, but in many areas the tool had to handle inclines of up to 20 degrees. The tool performed excellently in the vertical position, proving the versatility of the technology. The client was very pleased with the operation of the tool and the reporting structure.’

OMS

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OMS carries out remote measurement at Aasta Hansteen SPAR project

Specialist technology company OMS has recently completed groundbreaking remote measurement and inspection of a number of 230 metre long pull tubes for Statoil’s deepwater Aasta Hansteen SPAR project, which at 1,300 metres below sea level is the first of its kind in the Norwegian Sea.

Proserv and SapuraKencana join forces in Asia Pacific

David Lamont, Chief Executive Officer at Proserv, said, ‘We’re partnering with a company that is well-respected throughout Asia Pacific that shares our values and commitment to service excellence.

‘Our specialist capabilities complement SapuraKencana Petroleum’s diverse range of services, allowing us to further enhance our offering to clients particularly in the subsea services sector, while continuing to grow our presence in Malaysia and throughout the Asia Pacific region.’

Proserv and SapuraKencana Petroleum Berhad’s wholly-owned subsidiary, SapuraKencana Technology Sdn Bhd (SK Technology) are joining forces to provide enhanced technology services to clients in the Asia Pacific region.

Vivek Arora, Senior Vice President of Business Acquisition of SapuraKencana Petroleum, said, ‘The partnership with Proserv allows SapuraKencana Petroleum Group to strengthen the diversity of its range of services to clients in particular in our operations and maintenance services business.

They will jointly provide a range of services across the drilling, production and decommissioning market sectors with a strong focus on subsea production and subsea maintenance services.

‘We can now provide clients with more technical expertise and resources to support a range of subsea projects, in particular facility optimisation, to extend lifespan of fields, services and support.

An 8LV crawler with visual and 3D laser modules was deployed to carry out ranged inspection of sixteen 230 metre long pull tubes and eight caissons to assess pipe ovality, HiLo misalignment and weld root penetration.

Defects or obstructions within the pull tubes were of great concern to Statoil as these features had the potential to lead to costly consequences once the platform was positioned at sea, where such issues could not be remedied.

This project was the first of its kind for OMS and presented distance and traction challenges for the 8LV crawler.

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Proserv

Detailed and accurate inspection and assessment was necessary in order to determine the internal bore of the pull tubes, which provide the mechanism to connect production risers, product export lines and pump caissons through the use of a pull head to the topside cellar deck.

For more information: www.omsmeasure.com

The partnership will leverage on mutual strengths: Proserv’s suite of advanced subsea production equipment and controls and SK Technology’s technical support, resources and assets – to better support and enhance client projects.

New EIC members Social media Member round news up

‘The partnership is a boost to clients to find smarter ways to navigate through the current changing oil and gas global environment with solutions to improve efficiency and asset obsolescence management.’

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For more information: www.proserv.com

Smith Flow Control and Netherlocks merge to form Sofis Two of the valve safety industry’s leading brands have joined forces under a new name. Smith Flow Control and Netherlocks have combined to form Sofis, a bigger, stronger, marketled company. Sofis’s customers will benefit from a more diversified organisation with a wider portfolio of valve safety and operation products.

The new company will also offer better application engineering and after-sales service, while a new regional sales structure will deliver improved local support.

Sofis’s dedicated business development managers and innovation teams will work closely with customers to design new solutions in each of its product groups: process safety, drive systems and valve monitoring. The new company will operate from 11 offices in nine countries.

Smith Flow Control was formed in the UK in 1985. The organisation was the first to introduce the coded card linear key concept to interlocking, and specialises in mechanical valve control equipment, as well as portable actuator and remote valve operators.

Social media round up We want to use every opportunity to connect with our members, so please follow us on Twitter (@TheEICEnergy) and connect with us on LinkedIn – Energy Industries Council (EIC).

Below you’ll find a selection of some of the exciting EIC activities and useful industry information we’ve shared through our social media channels.

The EIC @TheEICEnergy Bookings now open for the Overseas Delegation to Iran, 20-22 May 2017. Find out more bit.ly/2kteI5L @tradegovukMENA

The EIC @TheEICEnergy EIC Middle East Director, @terry_willis with John Casson, British Ambassador to Egypt, at the UK Pavilion #EGYPS201

Energy Industries Council (EIC) Read EIC Head of Oil & Gas Neil Golding’s article on contracting activity in Australia in February’s issue of Offshore Engineer: http://bit.ly/2laSjJX

Dutch firm Netherlocks has been a leading manufacturer of industrial valve safety systems, including valve interlocks, valve position indicators, partial stroke testing devices and portable valve actuators.

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For more information: www.sofisglobal.com

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March 2017

Forthcoming events 2 March Technical Workshop

Introduction to Compressors

Dresser-Rand, a Siemens Business, Frimley

7 March Management Course

Negotiation Skills EIC London

7 March Business Presentation

The Nuclear Market and its Potential Opportunities Nuclear AMRC, Rotherham

8 March Industry Overview

Fundamentals of Oil and Gas Nassima Royal Hotel, Dubai

9 March Business Presentation

Southern Region AGM EIC London

10 March Business Presentation

Route to Market, Partnering with Companies in Brazil EIC London

A member only event for those interested in accessing or extending their reach in the Brazilian energy market, providing key information with project updates.

15 March Technical Workshop

Introduction to Energy from Waste Lakeside EfW, Slough

15 March Business Presentation

Business Presentation with Morrison Utility Services EIC Teesside

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15 March Business Presentation

Opportunities in Vietnam Ho Chi Minh City, Vietnam

16 March Industry Overview

Fundamentals of Nuclear

National Skills Academy Nuclear, EIC London

16 March Management Course

EICDataStream Overview EIC Houston

17 March Export Showcase

Asia Pacific Outlook Singapore

21 March Business Presentation

UK Energy in Brazil, Operator Panel Rio de Janeiro

22 March Industry Overview

Introduction to FPSOs EIC Kuala Lumpur

22 March Management Course

EICDataStream Overview EIC Rio de Janeiro

23 March Industry Overview

Fundamentals of Subsea EIC Kuala Lumpur

27 March Overseas Delegation

Overseas Delegation to Uganda Kampala and Lake Albert

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

March 2017

Forthcoming events

28 March Technical Workshop

30 March Industry Overview

Introduction to Joint Integrity

Fundamentals of Natural Gas

HTL Training Services, Cramlington

28 March Export Showcase

Opportunities in the Norwegian Sector

April 2017

Aker Solutions, Aberdeen

4 April Regional Showcase

Opportunities in Trinidad & Tobago EIC Houston

7 April Corporate Entertainment

Topgolf

Topgolf, Houston

11 April Industry Overview

Fundamentals of Upstream EIC Houston

13 April Management Course

Effective Appointment and Management of Local Agents EIC London

EIC London

30 March Sector Showcase

Power, Nuclear and Renewables Showcase EIC London

21 April Business Presentation

Opportunities with MMHE EIC Kuala Lumpur

25 April HSE Training

The ATEX Directives SGS Baseefa, Buxton

25 April Sector Showcase

Opportunities in Iran H Hotel, Dubai

27 April Technical Workshop

Introduction to Centrifugal Pump Design and Manufacture SPP Pumps, Coleford

Contact fern.canning@the-eic.com Visit www.the-eic.com/Events/Exhibitions/OffshoreEurope

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UK events The nuclear market and its potential opportunities – an EIC and Nuclear AMRC event

The Nuclear AMRC’s research factory on the Advanced Manufacturing Park in South Yorkshire is based around a 5,000sq metres open-plan workshop, staffed by over 80 experienced manufacturing engineers and operators who work with companies to develop innovative techniques and optimised processes for large-scale high-precision manufacturing.

The workshop hosts over £30m worth of state-of-the-art production-scale manufacturing equipment, including a range of machining centres and welding cells which feature unique capabilities or are the largest or most powerful of their kind. All of the centre’s resources are available for collaborative R&D to help companies reduce cost, improve quality, reduce lead time and cycle time, or reduce risk in manufacturing, without having to lose any capacity in their own factories.

The Nuclear AMRC also provides a range of business support to help manufacturers enter the nuclear supply chain and compete worldwide. Services range from free advice and expertise on manufacturing, procurement, quality and industry issues; to tailored supply chain consultancy to build connections and share knowledge between suppliers and top-tier customers.

F4N programme The flagship Fit For Nuclear (F4N) programme is a unique diagnostic tool which lets companies measure their operations against the standards required to supply the nuclear industry. The Nuclear AMRC’s team of F4N industrial advisors and nuclear specialists can then support companies as they take steps to close any gaps.

F4N has been developed by the Nuclear AMRC with the support of its top tier partners, including reactor vendors, new build developers and the NDA. Launched in 2011 and continually developed to provide even more value to participating manufacturers, it has become a widelyrecognised benchmark for nuclear-ready suppliers.

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Over 100 companies have completed the programme and been granted F4N, ranging from contract manufacturers with no nuclear experience aiming to take a first step into the sector, to established suppliers wanting to benchmark their position and drive business excellence.

As well as the Nuclear AMRC’s core area of highprecision mechanical engineering, F4N also covers companies which can supply control and instrumentation, electricals, and other manufactured components for nuclear plant construction and operation, as well as the specialised requirements of decommissioning.

F4N is a journey of business improvement, typically taking 12-18 months from the first assessment to granting. It demands commitment and drive from the senior management team, but the Nuclear AMRC will support companies at every step.

The EIC – Nuclear AMRC forum and MoU signing To help EIC members understand the opportunities and challenges of the civil nuclear supply chain, the EIC and the Nuclear AMRC are holding a special event on Tuesday 7 March. The Nuclear Market and Its Potential Opportunities forum, held at the AMRC campus in Rotherham will include presentations from EIC and Nuclear AMRC CEOs Stuart Broadley and Mike Tynan; national and global market overviews from Martin Ride, Nuclear Specialist Nuclear AMRC and Oliver Barnes, Sector Analyst Nuclear EIC; supply chain specialists from the F4N team and the opportunity to tour the Nuclear AMRC’s research factory.

The EIC and the Nuclear AMRC will also sign a MoU to work together on supply chain development, enabling EIC members to take full advantage of the Nuclear AMRC’s R&D capabilities and support.

For more information and to book please visit www.the-eic.com or contact Emily Light, Co-ordinator (Southern Region) emily.light@the-eic.com

BO O NO KI W NG

Part of the High Value Manufacturing Catapult, a national alliance of seven leading manufacturing research centres, the Nuclear AMRC combines academic innovation with industry expertise to help UK manufacturers improve capabilities and performance along the supply chain. Its facilities and services are open to all.

Nuclear AMRC

About the Nuclear AMRC The Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC) is dedicated to helping UK manufacturers win work in the civil nuclear sector – in new build, operations and decommissioning.

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EIC ABERDEEN LOOKING FOR AFFORDABLE AND FLEXIBLE OFFICE SPACE? The EIC has prestigious offices in the West End of Aberdeen available exclusively to EIC members for lease/lease-share.

The EIC is delighted to offer three offices to lease to members. The tenant offices are fully equipped with all the amenities you will need.

Whether you are looking to downsize or wish to avoid the complexities of setting up a new office, the EIC can provide the perfect solution for members looking for a base in Aberdeen.

Benefits • Convenient city centre location within easy reach of Altens, Bridge of Don, Dyce and Westhill • Fully furnished, light and airy offices with use of additional conference and meeting space • Free fast wi-fi and reception services • Access to the regional team for support • Free parking for tenants and use of our conference room and kitchen facilities

Offers For a limited time only, the EIC is offering the first month free of charge when signing a 12 months lease (valid for contracts signed by 31 March 2017).

Only need the office for 2-3 days per week?

We can offer flexible lease-share options.

Contact the Aberdeen team to discuss your needs and availability further.

Tel +44 (0)1224 626 006 Email aberdeen@the-eic.com

72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 | Fax +44 (0)1224 637 393 | aberdeen@the-eic.com | www.the-eic.com Sign up for the EICOnline newsletter

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23 May • Dusit Thani, Abu Dhabi, UAE

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Overseas events Overseas delegations

The EIC overseas delegations are the perfect way to learn about a new market in a supportive environment or strengthen existing business relationships.

Essential information and advice is given on procurement and pre-qualification processes, legalities, taxation, security and cultural issues.

We organise approximately six to eight overseas delegations annually to key markets in the energy sector.

A dual language brochure giving full details of the delegates and their companies is produced and a full programme of pre-arranged meetings provides participating companies with a substantial return on investment.

EIC delegations provide a full itinerary of meetings and networking opportunities with senior decision makers and procurement managers within NOCs, IOCs and EPCs.

Snapshot: Iran delegation 11-13 December 2016

This was the second EIC overseas trade delegation to Iran in 2016. We took 11 delegates from 9 UK companies to Iran, who were all keen to find out more about the current oil and gas opportunities available from this recently re-opened market.

With proven reserves of 158bn barrels of crude oil and 1,201tn cubic feet of natural gas, Iran holds the world’s fourth-largest and second-largest reserves of crude oil and natural gas, respectively. Among the country’s most valuable assets is the South Pars offshore gas field, the world’s largest natural gas field which is shared between Iran and Qatar. Discovered in 1990, the field accounts for almost 40% of Iran’s natural gas reserves. Currently only around 50% of the field’s 24 development phases have been completed.

The three-day Tehran programme included an in-country briefing hosted by the British Embassy as well as meetings with a number of known high profile players active within the oil and gas sector. EPC contractors like Namvaran, Sazeh, Asfalt-Tous, Nargan, Tasdid, Posco and Petropars were visited as was the National Iranian Oil Company (NIOC) and its subsidiaries NIOC Exploration, Iran Offshore Oil Company (IOOC), Petroleum Engineering and Development Company (PEDEC), Iranian Offshore Engineering and Construction Company (IOEC) and NIOC Kala Naft. The delegation also visited the operator National Iranian Gas Company (NIGC), as well as senior officials from the Iranian Ministry of Petroleum.

In addition to this, a well attended networking reception was organised at the British Embassy, where delegates got the opportunity to meet figures from the banking, legal, and the energy and oil and gas operating and contracting sectors.

The EIC will be returning to Iran on 20-22 May 2017.

This delegation is now open for bookings.

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The Iran delegation in 2016

The delegation was well organised and exposed the company to a broad range of industry specific potential customers. The customers visited covered all aspects from private companies to official government bodies. The agenda is packed with activities, so come prepared with a presentation that can be modified to suit each customer’s needs.

Dean Patel, Vee Bee Filtration

Other delegations in 2017

Uganda 27-31 March 2017

Myanmar 22-24 May 2017

Kazakhstan September dates tbc

China September dates tbc

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22

Spotlight on technology Magnetrol International UK

www.magnetrol.com

Magnetrol International UK Ltd

MAGNETROL ECLIPSE 706 GUIDED WAVE RADAR (GWR) LEVEL TRANSMITTER

Magnetrol International is an industry leader in the supply of level and flow instrumentation, to the oil and gas, power, chemical and other market sectors. From mechanical level switches through to the latest advances in guided wave radar level technology, its products are known for accuracy and reliability.

Magnetrol’s ECLIPSE 706 GWR transmitter is a best-inclass level control solution that advances guided wave radar technology through improved performance for a wide range of level and interface control applications.

Enhanced signal performance The ECLIPSE 706’s innovative GWR circuitry achieves both a higher transmit pulse amplitude and improved receiver sensitivity, resulting in a best-in-class signal-tonoise ratio. This assures precise, dependable control, including for extremely low dielectric media, extended measuring ranges and punishing process conditions.

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Overfill capable probes

Magnetrol offers the only GWR transmitter on the market with a complete line of overfill capable probes. Unlike other GWR transmitters that use algorithms to infer level readings in top-of-the-probe dead zones, the ECLIPSE 706 measures true level to within specification all the way up to the process flange – important in any safety related application.

Advanced diagnostics

The ECLIPSE 706 takes the user interface experience to new levels of convenience and functionality. The LCD diagnostics convey real-time waveform and trend data with outstanding ease of use. Additionally, the ECLIPSE 706 can be preconfigured online prior to shipment, to ensure plug-and-play transmitter commissioning.

These advances provide key benefits to industry, providing safe, efficient and cost-effective level and interface control, virtually unaffected by fluctuating process conditions including dielectric, viscosity and specific gravity.

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Bolted joint integrity: assembly, equipment and technology

HTL

EIC training Bolted joints are one of the most common fastening methods used in the oil and gas and power generation industries. From power plants, pipelines and turbines to pumps and compressors they play a critical role in maintaining safe operation, assurance and integrity of a structure or device.

A correctly bolted joint, which maintains integrity during its service life, is considered best practice to ensure risks to operators, assets and the environment are minimised.

UK based EIC member HTL Group, has over two decades of experience in the controlled bolting industry, designing and manufacturing their own range of OEM equipment, while delivering mechanical joint integrity training globally. Their technical trainers harness a wealth of specialist knowledge and experience.

Bob Fogerty, Director of Training, HTL Training Services commented, ‘HTL is pleased to be collaborating with the EIC on the provision of this one day introductory course.

I am sure delegates will find it very informative and will go away with a good appreciation and understanding of the issues surrounding joint integrity.’

To share this experience and knowledge with EIC members, HTL Training Services will be delivering a joint integrity workshop on 28 March, at its dedicated training centre in Northumberland. Fully equipped with practical training equipment, the centre exceeds training and testing standards required by national awarding bodies.

To find out more please visit our training schedule at www.the-eic.com or contact the training team on training@the-eic.com

Based on guidelines from the ECITB and Step Change in Safety, this course will provide you with a good introduction to pipeline integrity and controlled bolting. Key topics covered will be: equipment and tools, commonly found gaskets and flange types, leak reduction in industry, protection coatings, torque and frictional losses, lubrication and of most valuable importance, best practice theory.

It will also provide an insight into the practical aspects and considerations of the bolted joint, regarding the application of torque and tension, including demonstrations of both topside and subsea applications.

You will first receive the theory elements of joint integrity in a classroom based environment, this session will then underpin a practical hands-on demonstration and factory tour later in the day.

The course is suitable for engineers, graduates, managers and anyone who requires an understanding of joint integrity techniques within mechanical, structural, pressure vessel or piping systems.

On completion, you will have an understanding of the importance of joint integrity and the appropriate best practice methods and techniques to maintain it during service life.

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You may also be interested in

An Introduction to Centrifugal Pump Design and Manufacture Thursday 27 April 2017 SPP Pumps, Coleford

Other upcoming training

The Effective Appointment and Management of Local Agents

Thursday 13 April 2017 EIC London

The ATEX Directives Hazardous Areas & Protection Techniques

Tuesday 25 April 2017 SGS Baseefa, Buxton

The Fundamentals of Oil and Gas Thursday 4 May 2017 EIC London

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Join the EIC LinkedIn Group

24

Middle East news Regional update

March is a key month for lots of companies. Perhaps, like the EIC, it’s the last month of the operating year while for others, it’s the end of the first quarter. Whichever camp Terry W illis you find yourselves in, it is without doubt, a time of reflection: how are we faring given the current market conditions? What can we do to sustain our performance moving forward?

For the Dubai office we’re very much focused on the future and making sure our offering meets our members’ needs.

Coming up in May is EIC Connect Oil & Gas UAE, an event which continues to go from strength to strength. Full details can be found on the EIC website. Thanks to our advisory panel, we have been able to raise the bar once more and a number of keynote, high level speakers will be presenting at the conference sessions. We’ll also be welcoming new EPCs, IOCs and NOCs who will all contribute to an event not to be missed. www.the-eic.com/EICConnect

Before that though, in April we’ll run a showcase event focusing on Iran. Once more the dichotomy between known and recognised business opportunities versus the continued challenge of identifying, facilitating and ultimately securing acceptable payment contributions remains to be untangled. Despite these challenges, opportunities for UK companies continue to emerge and it is our intention to ensure that the UK has its fair share by continually organising and delivering dedicated trade delegations. For this coming operating year, it is our intention to offer a minimum of three delegations spread across the next 12 months, with the first one to Iran planned for 20-22 May which is purposely well placed so that delegates can then hop straight to Abu Dhabi for EIC Connect Oil & Gas UAE on 23 May. Finally, it is with great pleasure that we welcome a new addition to the EIC family. Fabrice Abalain, our Middle East and North Africa Regional Analyst became the proud father of Albert on 19 January. We wish the family well.

Terry Willis, Director, Middle East, Africa & CIS terry.willis@the-eic.com Get in touch Share your news and views...

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Regional news

Sumitomo signs US$1.2bn deal with PDO

Petroleum Development Oman (PDO) has awarded Sumitomo Corporation Middle East (SCME) a fiveyear extension of its contract to supply it with oil country tubular goods (OCTGs). The contract, which is worth approximately US$1.2bn, includes piping supply chain management services for PDO drilling operations through Duqm. The deal also includes a new supply yard in the Duqm Special Economic Zone. Duqm is now to become the primary logistics hub for the Sultanate’s oil and gas sector.

SABIC to acquire Shell stake in SADAF Chemicals joint venture

SABIC will acquire Shell’s 50% share in the petrochemicals SADAF joint venture, located in Jubail. Worth US$820m, the deal is subject to regulatory approval and is expected to complete later in 2017. The initial joint venture agreement was due to expire in 2020. This acquisition will enable SABIC to further optimise operations at SADAF and integrate the facilities with SABIC’s other affiliates.

Siemens wins contract to supply compressors in Iran

Palayesh Parsian Sepehr Co (PPSC) has contracted Siemens AG to supply 12 of its STC-SV vertical split compressor trains for the Mohr and Assaluyeh plants, in Iran. The two onshore natural gas processing plants are scheduled to enter commercial operation

by Q4 2018. Ten trains will be delivered to the ethane recovery plant at Mohr, in the southern Fars Province. An additional two trains to be delivered to a fractionation plant in Assaluyeh, Bushehr Province.

Forthcoming events

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Asia Pacific news In its latest energy outlook report, BP notes that China and India will play significant roles in global energy demand over the next 20 Azman years, with almost half the Nasir predicted growth to come from these countries, reinforcing the view that China and India will be the main global as well as regional energy players over the next two decades. Also mentioned as being significant to global energy outlook was Indonesia.

China has recently announced an increase in its planned CAPEX spend for 2017 and India is seen to be matching China’s expansion plans. Indonesia is already taking concrete actions to improve its infrastructure and is eager to attract more foreign investors to help develop its oil and gas reserves. With the continuing growth of population and prosperity in these three countries, it is not too difficult to imagine the amount of opportunities that will be available in terms of energy projects.

In the medium and long-term, it is imperative that EIC member companies in the UK should make a move to establish or reinforce their presence in these countries. At the moment, China, India and Indonesia are already among the top five in terms of the number of energy projects in Asia Pacific according to EICDataStream, however, the data also shows these countries are not among the top performers in terms of member interest.

The lack of interest by member companies is perhaps related to the ‘ease of doing business’ factor. While these countries are aware of their poor rankings in this list, they are trying to improve things. In the meantime, make the most of your EIC membership and allow us to facilitate your entry into these markets. We have contacts all around the world and know what’s happening on the ground. We also provide a full range of practical activities to help you expand into new markets, for example we will be leading an overseas delegation to China in October where you’ll meet lots of high level decision makers at a range of companies as well as find out what in-country support there is for foreign companies wishing to enter this market. For full details of this and all of our other delegations please visit www.the-eic.com Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com Sign up for the EICOnline newsletter

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Regional news

CNOOC 2017 development plan

In 2017 CNOOC plans to drill 126 exploration wells and acquire approximately 13,000sq km of 3D seismic data. The company’s total CAPEX for 2017 is about US$10bn. Investment in exploration, development and production will account for around 18%, 66% and 15%, respectively.

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Regional update

Pertamina and PGN to develop gas pipeline networks

State-owned energy company PT Pertamina and gas distributor PT Perusahaan Gas Negara Tbk will develop gas distribution networks in 10 locations in 2017. Pertamina will develop gas pipeline networks in Pekanbaru, Penukai Abab Lematang Ilir Regency, Muara Enim Regency, Mojokerto Regency, Samarinda city (Kalimantan) and Bontang town. PGN is set to develop gas pipeline networks in Musi Banyuasin, Bandar Lampung, DKI Jakarta and Mojokerto city.

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26

North and Central America news Regional update Here in Houston we continue to see oil and gas operators and contractors take forward a culture of consolidation.

As the majors push forward a few projects, we see that capital expenditure lies within those smaller, Tier two projects.

Amand

a Duho

n

Another key regional issue is the geopolitical uncertainty under the new US administration and how this will affect trade and NAFTA relationships. Despite this opportunities are plentiful which is confirmed by EICDataStream, which is currently tracking over 800 active and future oil and gas – upstream, midstream and downstream – projects across the North and Central America region.

To highlight these opportunities, we are working with the Department of International Trade in Houston, to bring operators and contractors to the UK pavilion and meet our exhibiting companies at OTC. We will continue to highlight Houston’s role as the gateway to the Americas, by pushing forward events to educate our members on opportunities in the region such as regional showcase events on Trinidad & Tobago, and Mexico. We are also engaging industry by arranging business presentations to take place in the region over the next year.

However, the most important event for your diaries is EIC Connect Oil & Gas USA, which will take place in Houston on 3 October 2017. The conference sessions, contractor briefings, one-to-one appointments, exhibition and sponsorship opportunities will be highly valuable to members who are looking to enter and/or expand in North and Central America.

If you need assistance, or for information about our EICLaunchPad services (hot desks, conference facilities, virtual and serviced offices), and upcoming events and training, please contact natalia.bueno@the-eic.com Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com

Regional news

FERC loses quorum, project approvals to face delays

The US Federal Energy Regulatory Commission (FERC) lost its quorum following the resignation of Chairman Norman Bay on 3 February, leaving the five-member panel with only two commissioners.

FERC adopts a three-member quorum and no decision to approve or reject projects can be made while the three empty slots remain vacant. In addition to its regulatory powers, the commission is responsible for approving the development of LNG terminals, inter-state gas pipelines and natural gas storage facilities. Last-minute orders approving projects such as Atlantic Sunrise and Northern Access were issued right before Bay’s resignation.

US oil exports to Latin America surpass imports

The United States had a surplus in its trade of oil and refined products with Latin America last year, according to the Energy Information Administration (EIA). Exports to Latin American countries surpassed imports by 89,000bbl/d in October, and 184,000bbl/d in November – a situation not seen since records began in 1993. The surplus can be explained by the shale revolution taking place in the US as well as by the reduced oil output of countries such as Colombia, Ecuador, Mexico (which is also dealing with an insufficient refining capacity) and Venezuela.

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27

South America news Regional update

On 10 March the EIC will be hosting the Route to Market, Partnering with Companies in Brazil event in our London office. Working with the Department for International Clariss e Roch Trade and a range of a Brazilian companies, the event will help to facilitate entry into the Brazilian markets for those UK companies wishing to explore the lucrative marine and offshore construction and maintenance, subsea, EOR and decommissioning opportunities on offer in the country.

UK Energy in Brazil 2017 takes place in Rio on 21 March.

The EIC will be hosting the EIC operator panel where all the major operators present in Brazil, including Shell, Statoil and Total, will be taking part to discuss how members of the UK supply chain can work with them.

We’re also really pleased to say that the EIC’s CEO Stuart Broadley will be making his first visit to Rio this month.

On 22 March, we’ll be holding a networking reception in our office so he can meet our local members and find out what the EIC can do to support them even more.

UK Energy in Brazil 2016

If you need any assistance in the region or for more information about upcoming events, please don’t hesitate to contact me.

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

Regional news

No consensus on local content in Brazil

The Brazilian oil and gas sector is divided over local content requirements and how they should be applied in future E&P contracts. Controversy surrounding this issue has impacted the development of the Libra field, one of Petrobras’ flagship projects, after a tendering process for the charter of a 180,000bbl/d FPSO was suspended by a federal court in January following the announcement that local authorities could waive local content rules for the unit. A government programme, PEDEFOR, has been set up to review existing regulations and propose changes.

Venezuela’s PDVSA on the verge of default

The Venezuelan state-owned oil company PDVSA is likely to default this year, according to a report by credit rating agency Fitch. The company warns that PDVSA’s liquidity position is weak and that the company has significant debts maturing this year. If oil prices remain low, Fitch deems a default probable.

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