Inside Energy November 2016

TI BO C O N KE K O T W S

Global opportunities for the UK supply chain

22-23 November • Manchester Central, UK

Inside Monthly news for EIC members November 2016

Panel discussions

300+ one-to-one appointments

Conference sessions 40+ exhibitors

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Sector analysis

Renewable opportunities continue to grow across the MENA region

Fabric

e Abala

in

Across the Gulf region five waste-to-energy plants should come online between 2017 and 2020. The UAE, which plans to divert waste from landfills by 75% by 2021, hosts three of them: in Abu Dhabi, Dubai and Sharjah. This year, Masdar and Bee’ah signed an agreement to co-develop waste-to-energy schemes in the UAE and the whole region.

With projects also taking place in Kuwait and Bahrein, total regional investment in this sector exceeds US$3.5bn.

MENA countries have already acknowledged the importance of renewable energy and have set ambitious renewable energy targets. Over the past five years, the total capacity of installed renewable energy has increased by 30% to reach 25GW in 2015 across the region.

EICDataStream is currently tracking 60 active and future renewable projects in the MENA countries.

Meanwhile, the historically conventional hydrocarbon sectors are also focusing on improving energy efficiency and minimising environmental impact, and are willing to embrace technology and innovation to do so. EOR+ technology, to store carbon dioxide permanently while enhancing oil and gas production, could transform oil fields into net emission saving places. As well recognising the importance of reducing emissions, many of the MENA countries affected by the recent oil price drop have realised that diversifying into the renewable sector will help to safeguard their economies during any future down cycles.

Last June, the Mohammed bin Rashid Al Maktoum Solar Park project attracted worldwide attention when Dubai Electricity and Water Authority (DEWA) announced a Masdar-led consortium had won the bid for the 800MW third phase of the photovoltaic (PV) plant with a levelised cost of electricity (LCOE) of US$2.99 per kilowatt hour. This record-breaking lowest LCOE emphasises the emergence of solar power in the global energy mix. A fourth phase is planned, with the aim of the facility to reach 5GW by 2030 and to become the largest single-site solar park in the world. In July, DEWA started evaluating proposals for studies on the potential implementation of geothermal, tidal wave and ocean current technologies for electricity generation. The UAE’s Dubai Emirate has ambitious plans in place for 25% of its power to come from clean energy sources by 2030, and to reach a remarkable 75% by 2050.

When it comes to concentrated solar power (CSP) technology and innovation, Morocco is leading the way globally. Earlier this year, the first phase of the Noor project came onstream in the desert city of Ouarzazate. A consortium led by Saudi Arabia’s ACWA Power is working on the second and third phases, which will increase the total capacity from 160MW to more than 500MW by 2019.

In August, Saudi Arabia’s King Abdullah City for Atomic & Renewable (KA-Care), responsible for the country’s atomic and renewable energy programme, received consultancy bids for a revised programme which includes solar PV and CSP, wind and waste-to-energy technologies, and targets 3.5GW of installed capacity by 2020. Looking even further ahead, its ambitious Saudi Vision 2030 aims for 9.5GW of installed renewable energy capacity in the Kingdom by 2030.

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At the Paris Climate Change Conference in December 2015, the first-ever universal, legally binding deal was adopted by 195 countries for a global action plan to tackle climate change, which is due to enter into force in 2020. China and the US agreed to ratify the deal together in September 2016, which makes it likely to be implemented at the next UN climate summit held from 7 to 18 November in Marrakesh.

It really is an exciting time in the Middle East and North Africa region, where innovation is driving costs down across all renewable sectors, making them more commercially viable than ever before. This is evident on EICDataStream where we are seeing renewables projects making up a larger proportion of active and future projects than ever before, with offshore wind and solar PV projects set to see the biggest growth in this region. With feed in tariffs and public competitive bidding starting to be adopted by many MENA countries, this sector is more open to foreign investment than ever before. To find out more about the projects taking place or in the pipeline across the region, and how you can get involved, please do get in touch.

Fabrice Abalain, Regional Analyst (MENA) fabrice.abalain@the-eic.com

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Inside this issue...

November is an important month in the year for both the EIC and our members as we gear up for EIC Connect Oil & Gas 2016.

Taking place from 22 to 23 November at Manchester Central, our flagship event is the only conference and exhibition designed to help the UK energy supply chain exploit business opportunities.

With speakers including Greg Hands, Minister of State for Trade and Investment, and high-level representatives from major players such as Amec Foster Wheeler, Petrobras, Saudi Aramco and Shell, the event promises to be just as dynamic as in previous years.

In fact, EIC Connect Oil & Gas receives a great deal of support from leading operators and contractors and gives delegates unparalleled access to them, through over 20 briefing sessions and more than 300 one-to-one appointments.

We’ve also tailored our conference sessions to the current market, considering both the challenges and opportunities of the low oil price environment. And with those opportunities come many reasons to be positive: we’ll be updating attendees on projects on the UKCS and around the world including in Eastern Europe, Russia, the Middle East, Asia Pacific and South America.

Contents Sector analysis

2

Inside this issue...

3

One-to-one 4

A key contributor to the success of EIC Connect Oil & Gas is our exhibition. UK suppliers are not only able to showcase their innovative products, services and skills, but they also make business contacts that can lead to partnerships and new contracts.

EICDataStream 5

If you’d like to hear from some of our exhibitors before the event and find out how they can add read value to global energy projects, check out our LinkedIn page – Energy Industries Council (EIC).

Please also follow us on LinkedIn and Twitter @TheEICEnergy to get the latest information on our Connect Oil & Gas programme and speakers.

We look forward to seeing many of you in Manchester.

To book your place as a delegate or find out about sponsorship opportunities please visit www.the-eic.com/eicconnect or call +44 (0)1642 379 975 Edward White Editor and Communications Manager edward.white@the-eic.com

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EIC training

6

New members

7

EIC Monitor

8

Forthcoming events

12

Member news

16

Social media round up 19 UK events

20

Middle East news

22

Asia Pacific news

23

North America news

24

South America news

25

Overseas events

26

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One-to-one

with Peter Ainge Business Development Manager, Transvac Systems Transvac is a world leading supplier of ejector solutions to the oil and gas industry. Ejectors offer a simple, cost effective and reliable solution for applications including flare gas recovery, mature field life extension, and produced water treatment.

Q

Can you tell us about your new range of liquid-driven ejectors, called liquid jet compressors (LJCs)?

Q

What products and services does Transvac offer to help its clients thrive during this low oil price climate?

A

Ejectors are essentially compressors with no moving parts. They perform a compression duty by using energy in a high pressure stream to ‘do work’ on a low pressure ‘suction’ stream, to boost its pressure.

A

Liquid Jet Compressors use liquid (commonly water) as the motive stream, which creates a powerful, efficient jet, to compress gas.

Transvac’s latest designs offer compressions ratios of over 150:1, which is huge.

Operators are taking more notice of what we have to offer, particularly the range of techniques we employ to lower well head pressure to boost well production, extend field life and de-bottleneck their gas compression processes.

Even multi-phase wells can be enhanced effectively.

Big greenfield projects are not happening, but the appetite to boost production on existing brownfield platforms and facilities is strong. However, footprint and weight constraints are common limiting factors and engineering time must be minimised to make these projects viable. Ejectors have a niche here as they are simple, compact, pipework installations.

Other technologies are simply non-starters in this regard.

Other compression devices, such as liquid ring, screw or centrifugal turbo compressors are often plagued with maintenance issues or mechanical failure, so clients come to us looking for a robust, reliable solution.

Our R&D team and test facility have made staggering progress in a short amount of time, already offering 40-50% improvements in operating efficiency. Although the ejector itself requires no power, the motive water needs to be pumped somewhere upstream of the LJC ejector, which requires power. The less water the LJC ejector demands, the better. We are now at a point where these power requirements are less than that of our competing technologies.

In many cases, no ‘new energy’ is required to drive an ejector so pay-back time can be just a few days. The economics are great. Our real challenge is to make end users aware of the opportunities available to them.

Q

What plans does Transvac have in place for the next 1218 months?

The progress we’ve made in the efficiency of our ejector designs has really changed the shape of our business.

A

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We must challenge the preconceptions that ejectors are inefficient and that they cannot compete with ‘traditional’ compression devices.

To address the current market situation we now offer ejectors under a rental scheme. The restrictions placed on buyers can affect the progression of a project, even if operations and process teams are in favour.

We hope this will help remove these commercial barriers.

We have continued to expand our global reach through the appointment of local partners in the US, UAE and Malaysia and will continue to grow our business in these new markets.

Q

What would it surprise other EIC members to learn about Transvac?

A

We have been around since 1973 and have supplied thousands of ejectors to a range of industries, including oil and gas, chemical, nuclear, power, food and pharma. That is usually a surprise, as ejectors are still often thought of as a new technology.

And we are offering a freebie!

The very latest ejector designs are now available at the click of a mouse with our suite of online screening and ejector sizing tools. It runs on our website and it’s a great way for clients to instantly see how our ejectors will perform for their specific applications.

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Global opportunities EQUATORIAL GUINEA

BRAZIL

Block R – Fortuna, Silenus and Tonel Gas Discoveries

Pecem LNG Regasification Terminal (KOGAS)

Operator: Ophir Energy Value: US$450m Ophir has announced that the upstream portion of Fortuna is now technically ready for an FID and that two consortia were currently bidding for the upstream EPCIC contract.

Ophir is now searching for partners to farm-in on the Fortuna project.

Operator: KOGAS Value: US$600m Kogas has signed an MoU with the Ceará state government for the development of an LNG import terminal in Pecém. It is understood that Kogas, which will conduct a feasibility study.

i

THAILAND

Rayong Butadiene Plant Operator: PTT Global Chemical (PTTGC) Value: US$200m PTTGC has signed a heads of agreement with Kuraray Co., Ltd. and Sumitomo Corporation for the development of the plant. The contract includes a detailed feasibility study and FEED work of the plant. The FID is expected by the end of 2017.

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

SWANSEA, WALES

EAST YORKSHIRE, ENGLAND

DAR ES SALAAM, TANZANIA

Tidal Lagoon Swansea Bay Project

Eggborough CCGT Power Plant

Dar es Salaam Gas Fired Power Plant

Operator: Tidal Lagoon Swansea Bay Limited Value: US$1,500m Tidal Lagoon Power has launched a £22m tender for the turbine manufacturing and pre-assembly plant. The pre-qualification period ended on 21 October 2016, with invitations to tender to be sent out on 7 November 2016.

Operator: Eggborough Power Limited (EPL) Value: US$1,500m Technical and environmental studies are underway to identify the most appropriate location for a proposed gas-fired CCGT power station on the site of its existing coal-fired power station and also a suitable route for a gas pipeline.

Operator: Egbin Power Value: US$630m Egbin Power has announced it will set up a 450MW gas fired power plant in Dar es Salaam.

The company is awaiting approval from the government and Tanzania Electric Supply Company (TANESCO).

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the filters of your choice before clicking ‘Search’, give your search a name in the ‘Search Title’ box. You’ll see the ‘Search’ button changes to ‘Save and Search’. Hit this to see your results as well as save the search

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EIC training Tackling the LNG industry

LNG developers will come up against some major challenges in the next few years. If you are new to the industry, or looking diversify your offering and get involved, you need to have a good understanding of the LNG business and consider these challenges before moving forward.

What are the challenges?

New LNG projects coming onstream in Australia and the US will create a surge in supplies putting pressure on short-term price levels. In addition, LNG buyers are likely to be reluctant to enter into the long-term supply agreements required to secure financing of new projects.

There is no shortage of potential LNG projects waiting to be developed, the main questions are what will it take to develop new projects in the current commercial environment? And which ones are likely to be successful?

Another major challenge is the fall in oil prices since the end of 2014. Long-term contracts for LNG have been based traditionally on oil prices. By contrast, the large volumes of LNG from US projects are based on Henry Hub gas prices. When these projects’ final investment decisions were originally sanctioned there was a large arbitrage value between US and Asian markets and this has been significantly reduced as oil prices have fallen.

How is this likely to affect the competitiveness of new projects coming onstream?

The industry also needs to consider how to make the most of new technologies, in particular, floating LNG opportunities to develop stranded offshore oil and gas fields which would otherwise be uneconomic. Two types of development are being pursued: large scale facilities capable of operating over a range of field qualities; and small bespoke facilities tailored to an individual field. The main question is how will the technical and commercial challenges of these exciting new developments be resolved?

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To help answer these questions and more the EIC will be running a one-day industry overview on Wednesday 18 January 2017.

The Fundamentals of LNG This course covers the basic technologies involved in the production of LNG, the commercial value chain elements, the complexities of developing an LNG project and the challenges faced by the industry today, as well as providing insight into how the industry is likely to develop over the next few years, including the scope, size and business activities involved.

Topics covered • Liquefaction process • Shipping elements • Regasification terminals • LNG globally • Markets and trade • Project development • Commercial issues faced You may also be interested in: The Fundamentals of Nuclear Thursday 23 February 2017 EIC London Focuses on the science of Nuclear, the effects of radiation, nuclear safety and its relevance to the supply chain through to the current UK market, future markets, new build projects, existing facilities and decommissioning. You will receive an overview of the nuclear power industry from a practical and commercial perspective.

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New EIC members NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

Dan-Loc Group

Global SCS

Kitson Road Leeds LS10 1NR

Unit 5B International Avenue ABZ Business Park Aberdeen AB21 0BH

London Marine Consultants

The Nominated Representative is Mr Tony Sitek, Director of Global Business Development

The Nominated Representative is Mr Arul Senthil, Senior Verification Engineer

The Nominated Representative is Mr Nick Palmer, Director

Telephone +44 (0)113 245 0726

Telephone +44 (0)1224 356 500

Telephone +44 (0)20 7621 0050

Email tsitek@danlocgroup.com

Email arul.senthil@global-scs.com

Email n.palmer@londonmarine.co.uk

Web www.spensall.com

Web www.global-scs.com

Web www.londonmarine.co.uk

Dan-Loc Spensall is a manufacturer of full turnkey precision machined components and assemblies and a stockist and distributor of standard fasteners and gaskets predominately for the global oil and gas, petrochemical and chemical industries. The company joined the Dan-Loc Group in 2015.

Global SCS is part of the highly successful Global Energy Group.

An award-winning worldwide energy consultancy organisation, it prides itself on delivering enhanced value, risk mitigation and offering innovative cost saving solutions to various markets including oil and gas, marine, renewables, pharmaceutical, engineering and nuclear.

London Marine Consultants (LMC) specialises in the engineering design and provision of mooring systems for FPSOs, FSRUs, FLNGs and FSOs. LMC’s capability includes external turrets, internal turrets, disconnectable turrets, spread mooring systems, CALM and deepwater offloading buoys, jetty/quayside and side-byside systems.

Cradle to grave support in concept, development, operations and decommissioning stages:

As a result of the extensive experience and expertise developed in the mooring industry, LMC can also offer its clients wide-ranging engineering consultancy services.

The Dan-Loc Group is a global leader in manufacturing and the distribution of standard and speciality fasteners, standard and speciality gaskets and precision machined components to the oil and gas, chemical, petrochemical, construction, pump, valve, power generation and transport industries.

With significant manufacturing capabilities and inventory in the US, UK, Singapore and Malaysia the company is ideally placed to serve all customers locally, regionally and globally.

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23 St Dunstan’s Hill London EC3R 8HN

Third party and vendor inspection; compliance services (independent verification/ certification and design review); QA/QC quality engineering (including well delivery); supplier technical audits; internal audits; finite element analysis (FEA) structures, subsea and topsides equipment; operations performance assurance; integrity management; decommissioning studies; major hazard identification and management.

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These include third party verification, life extension, risk assessments, front end engineering and design (FEED), equipment package management, offshore installation engineering, green water assessments, structural analysis, and riser/ umbilical global analysis.

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EIC Monitor Oil and Gas Monitor Q3 2016 Upstream Upstream: number of major contract awards

Midstream: number of major contract awards 40 35

60

30

50

25

40

20

30

15

20

10

10 0

Midstream

5

Q3

2015

Q4 EPC

Q1 FEED

Q2

2016

Q3

Subsea/SURF

0

Q3

2015

Q4 EPC

Q1 FEED

Q2

2016

Q3

Pre-FEED

In Q3 2016 (July - September), a total of 34 major contracts (EPC, FEED and Subsea/SURF) were awarded across 29 upstream developments, a 13% increase from 30 awards in Q2 2016, and a 35% decrease from 52 contract awards in Q3 2015. A total of 24 EPC, 2 FEED and 8 Subsea/SURF contracts were awarded.

A total of 15 major contracts (EPC, FEED and Pre-FEED) were awarded across 15 midstream developments, decreasing 22% from 17 awards in Q2 2016, and 60% from 37 contract awards in Q3 2015. A total of 14 EPC contracts, 1 FEED and 0 Pre-FEED contracts were awarded.

EPC activity

EPC activity

Venezuela’s four 2016 contracts to date were awarded in Q3 2016. The contracts were for phase 2 of the Carabobo Heavy Oil project and include platform construction and up to 480 wells. All three of the contracts awarded in Kazakhstan were for the Tengiz Third Generation project.

Major contracts were awarded at the Tangguh fields in Indonesia for two platforms and 30km of pipelines. In Thailand contracts were granted for a new-build leased FSO.

FEED activity

Only two FEED contracts were awarded in Q3 2016, compared to 10 in Q2 2016. Both contracts were awarded in Asia Pacific, and included the FEED awards for the Pegaga field in Malaysia and Blocks 05-1b & 05-1c in Vietnam. Both awards will be carried out by Aker Solutions.

Subsea/SURF

Australia topped the Subsea/SURF contract awards in Q3 2016 with two contracts at the Greater Enfield Area awarded to OneSubsea and Technip. The US, UK, Azerbaijan, Ghana and Libya saw no Subsea/SURF awards.

Nexan will deliver 100km of static umbilicals for BP’s West Nile Delta Development, and MFX do Brasil will supply 33km of umbilicals for the US$46bn Libra field in Brazil.

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With 14 contracts awarded, Q3 2016 has seen a 21% increase in EPC contract activity from the previous quarter. These were awarded across a range of project types and locations. This increase was concentrated in the Middle East where activity has increased from no contracts awarded in the previous quarter to 3 awards in Q3 2016.

The most notable EPC award of Q3 was the lucrative contract on the Tangguh Train 3 Expansion project in Indonesia. A consortia comprised of Chiyoda Corporation, PT Tripatra, Saipem SpA, and Suluh Ardhi Engineering was successful in winning the work from BP on the LNG plant.

Three EPC contracts were awarded to Europe in Q3 2016, as opposed to only one in the previous quarter. Two of these awards were on large scale intercontinental pipelines. The first award, made at the end of July, was to SapuraKencana Petroleum for installation of the 17km offshore section of the TANAP pipeline. The second award was made to China Petroleum Pipeline Bureau for work on the US$60bn Power of Siberia pipeline.

EIC Monitor

FEED activity

Major EPC activity was also seen in the US. Bechtel was awarded an EPC in July for the 40,000bbl/d expansion of the Beaumont Refinery, which is on track for completion by 2018. In August, KBR was awarded an EPCM contract

by Chemours for the construction of the Corpus Christi Petrochemical Complex. The project is scheduled to be completed in Q3 2018.

FEED activity has seen a significant decrease in activity with only one contract being awarded for work on SCT&E’s Monkey Island LNG Liquefaction project. The award was made to Technip which will carry out the early engineering from its Houston office. With a significant decrease in North American LNG activity due to tight markets the facility is one of only a few North America LNG projects which has seen activity in early stage developments in recent months.

Europe also saw some considerable EPC activity with three awards made. In July, Costain was awarded a contract for the construction of a hydrochloric acid dosing plant at the already operational Shetland Gas Plant in Scotland. The scope of work includes installation, tie-in, pre-commissioning and commissioning support at the plant.

Pre-FEED activity

No major Pre-FEED contracts were awarded in Q3 2016: a reflection of the sector as a whole in the current climate.

The current over supply in the markets, and in particular, the flood of LNG has left a number of project no longer commercially viable to put through to development.

FEED activity

FEED activity more than doubled in Q3 2016 on the previous quarter, with seven contracts being awarded.

Three of these contracts were awarded in Asia, the most significant of these was made by the Singapore Refining Company to Jacobs for the Jurong Refinery Expansion.

The scope of work includes services for the upgrade of the refinery’s naphtha splitter unit, naphtha hydrotreating unit and catalytic reformer unit.

Downstream Downstream: number of major contract awards 60 50

PMC activity

40 30

There were four PMC contracts awarded in Q3 2016.

One of these awards was made to Amec Foster Wheeler for the engineering and project management of the Cilacap Refinery Expansion and Upgrade and will take Amec Foster Wheeler nine months to complete. In India, Engineers India Ltd was awarded a PMC to implement the BS VI quality upgrading programme at six refinery expansions across India. This work is being undertaken to achieve the government’s target to implement BS VI fuel norms across India by April 2020.

20 10 0

Q3

2015

Q4

Q1 EPC

FEED

Q2

2016

Q3

PMC

A total of 31 major contracts (EPC, FEED and PMC) were awarded across 27 downstream developments, increasing 22% from 24 awards in Q2 2016, but decreasing 77% from 55 contract awards in Q3 2015. A total of 20 EPC contracts, 7 FEED contracts and 4 PMC contracts were awarded.

The majority of EPC activity took place in Asia, with five contracts being awarded in the region. One of the most significant of these awards was made in Malaysia on the Pengerang Refinery and Petrochemical Integrated Development (RAPID) project. Pengerang Gas Solution was awarded an EPC contract to build an industrial air gas facility that will produce gaseous oxygen and nitrogen to supply the needs of the RAPID project. Phase 1 of the project is expected to be completed at the beginning of 2019.

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EPC activity

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EIC Monitor

Power, Nuclear and Renewables Monitor Q3 2016 Global thermal and nuclear Global power and nuclear project contract awards Q3 2016 14 12

Europe

Asia

North America

Indian subcontinent

Middle East

Africa

South America

Four major contracts were awarded to thermal power plants in Europe in Q3 across five countries: four EPC contracts and a single OEM contract. Notably, an EPC contract was awarded to China National Electric Engineering CO Ltd to build the 240MW Loznica Gas-Fired Power Plant in western Serbia, on behalf of British company Scarborough Group International.

Two 120MW gas-fired units will be built at the site of a decommissioned coal plant with construction to start by the end of this year.

In July GE was contracted by Vattenfall to supply various equipment including a steam turbine, generator, boiler and air quality control systems for the refurbishment of the Hamburg-Wedel CHP Power Plant in Germany. The project aims to extend the operating life of the 260MW CHP plant with refurbishment work to be completed in 2018.

10 8 6 4 2 0

EPC

PMC

OEM Supply

Thirty-one contracts were awarded across 24 projects globally compared with the 37 contracts awarded in the previous quarter.

Of the 31 contracts awarded this quarter, 14 were EPC contracts, 14 were for OEM supply and 3 were PMCs. Europe saw the highest level of activity with 12 contracts being awarded, up fourfold from Q2.

Nuclear power accounted for the majority of this activity, with four major contracts awarded to the Hinkley Point C Nuclear Power Plant. Project owner EDF Energy was given the green light to proceed with the project after a new agreement was signed with the UK government in mid-September, this was followed by the signing of a number of contracts. Most notably GE Power signed a US$1.9bn OEM contract to supply two power islands and an EPC contract was awarded to Areva to build a NSSS nuclear island. A large number of smaller contracts and sub-contracts have also been awarded since the agreement was signed.

Owing to the project’s substantial size and cost it is likely to be the most significant project in this region in the near future.

A second new build nuclear plant in Europe, Hanhikivi 1, also saw major awards this quarter with GE Power and AEM Technology signing OEM supply contracts with operator Fennovoima. Nuclear decommissioning also saw two EPC contracts awarded in Europe. Amec Forster Wheeler will build a new effluent treatment plant for the Dounreay decommissioning project in Scotland and German firm Nukem will construct a radioactive waste repository at the Kozloduy Nuclear Power Plant decommissioning project in Bulgaria.

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A total of 6 contracts were awarded in Asia. Two in Indonesia and two in Philippines where the second phase of the Sarangani Coal Fired Power Plant has made significant progress. The project saw an EPC contract awarded to Japan Gasoline Company in July, followed by the signing of an OEM supply contract by Amec Foster Wheeler in September. GE had a particularly successful quarter in this region with two major awards, namely OEM supply deals for the Jeju Island Combined Cycle Power Plant in South Korea and the Myingyan Gas Fired Power Plant in Myanmar. For both projects GE will supply all the major electromechanical equipment. Also of note was the appointment of Black & Veatch as Owner’s Engineers on the 1,000MW PLTU Cirebon Coal Fired Power Plant 2 in Indonesia. Black & Veatch will oversee the scheduling, design and construction activity on behalf of the multinational consortium which owns the project.

Three major contracts were signed for power projects in the Indian subcontinent, two of which were for the Ghorasal Power Plant Repowering project in Bangladesh.

GE was again the most successful contractor in this region, signing two OEM supply contracts on this project, one in a joint venture with China National Machinery and Equipment Import and Export Corporation. This project aims to increase the capacity of Ghorasal from 840MW to 2,300MW by converting four of its six open-cycle units to combined-cycle and has an estimated project value of US$1.8bn. In India L&T-MHPS Boilers Pvt Ltd, a joint venture between Larsen & Toubro and Mitsubishi Hitachi Power Systems, was awarded a OEM supply deal on the Ghatampur Coal Power Plant.

The North American region saw five major contracts, three of which were in Canada. Of those three, two were for the Chinook Power Station being developed by SaskPower. Both awarded in September, SaskPower signed an EPC deal with Burns & McDonnell Engineering to construct the project and followed this by singing an OEM supply deal with Siemens for a single gas turbine and a heat recovery steam generator. Also in Canada a

EIC Monitor

In sub-Saharan Africa only one major contract was awarded, down from three in the previous quarter.

Developer Endeavor Energy awarded China Energy Engineering Group Co. an EPC contract for the 375MW Songon Combined Cycle Power Plant in Ivory Coast.

Another region which also saw a downturn in the number of contract awards was South America. Just a single OEM supply deal was signed, three less than in Q2.

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

Q3

2015

England

Q4 Northern Ireland

Q1 Scotland

Q2

2016

UK Offshore

Q3 Wales

The number of wind turbine supply contracts awarded within the UK in Q3 2016 were down substantially compared with Q2. Only three contracts were awarded compared with 20 in Q2. The most significant was MHI Vestas’s award for the European Offshore Wind Deployment Centre (EOWDC) in Aberdeen Bay, the only offshore wind turbine supply deal in the UK this quarter. The contract will see MHI Vestas supply eleven 8.4MW turbines to Vattenfall. The total capacity of offshore wind turbines awarded this quarter has decreased also with 92.4MW awarded compared with over 1,300MW in Q2.

A number of other notable contracts have been awarded on the EOWDC project in the past three months, most notably J Murphy & Sons won an EPC for the onshore and cabling works and Boskalis Westminster was awarded the offshore balance of plant contract. All of the Tier 1 contractors for this project have stated that they are keen to use local content as much as possible. Also of note this month was the governmental approval granted to RWE and Statkraft’s Triton Knoll offshore wind farm.

Now that it is fully approved tendering for the projects turbines may take place in the near future.

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The contract in question was Wartsila’s deal to supply turbines to the Pilar Thermal Power Plant in Argentina.

Looking at the Middle East the number of contract awarded is again down compared with Q2. Just two EPC contracts were awarded in Q3, both in August. Siemens will construct a 400kV substation at the Hassyan Clean Coal Power Plant in the UAE with the contract worth a reported US$53.6m. Much more significant was the signing of an EPC contract for the Alba Power Plant 5 in Bahrain. A joint venture between Gama Power and GE Power & Water will construct the 1,300MW gas-fired power plant with GE’s scope of work including the supply of three gas turbines, three steam turbines and three heat recovery steam generators.

The two other contracts awarded in Q3 were both for onshore wind farms. Senvion won a five turbine order from Whirlwind for the Achlachan Wind Farm in Scotland.

This project may be extended by an additional three turbines in the future. Nordex won a much larger order of 19 turbines for the 47.5MW Brockaghboy wind farm in Northern Ireland. Being developed by Italian company ERG Renew, it is expected that this project will be completed by March 2017 in order to meet the Renewables Obligation deadline.

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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major OEM supply contract was awarded on the Bruce Power Unit 6 Nuclear Refurbishment project. BWX Technologies was awarded a US$100m contract to design, manufacture and supply eight steam generators.

Refurbishment of Unit 6 will start in 2020 when the unit is scheduled to come offline.

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12

October 2016

Forthcoming events 25 October Management Course

Understanding Local Content DNV GL, EIC Rio de Janeiro

26 October Industry Overview

EIC Market Update: Global Renewables

27 October Business Presentation

Members Update Morning with SBM Offshore EIC London In addition to a market update from our business intelligence team we are delighted to have an audience with SBM Offshore. Hear its insights into the future of the offshore business. Contact emily.light@the-eic.com

EIC Kuala Lumpur

27 October Business Presentation

South America EICDataStream Training

November 2016

EIC Rio de Janeiro

3 November Industry Overview

Fundamentals of Oil and Gas EIC London

3 November Business Presentation

North and Central America EICDataStream Training EIC Houston

7 November Overseas Exhibition

ADIPEC

National Exhibition Centre, Abu Dhabi

9 November Technical Workshop

Introduction to Gas Turbines Dresser-Rand, Lincoln

9 November Technical Workshop

Introduction to Heat Transfer Systems EIC Rio de Janeiro

Get in touch Share your news and views...

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

10 November Industry Overview

Fundamentals of Upstream EIC Houston

15 November Industry Overview

Fundamentals of FPSOs EIC London

16 November Industry Overview

Fundamentals of Subsea EIC London

22 November EIC Connect

EIC Connect Oil & Gas 2016 Manchester Central

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23 November Management Course

Understanding Terms and Conditions in the Contract Four Points by Sheraton, Dubai

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

November 2016

Forthcoming events

26 November Industry Overview

Fundamentals of FPSOs EIC Rio de Janeiro

29 November HSE Training

The ATEX Directives SGS Baseefa, Buxton

29 November Overseas Exhibition

Offshore South East Asia (OSEA)

December 2016

Marina Bay Sands, Singapore

1 December Regional Showcase

UKCS Showcase Decommissioning Aberdeen venue tbc

This event will bring together operators and the supply chain to highlight decommissioning opportunities available and means to enhance efficiencies and cost savings. To register your interest contact julia.harte@the-eic.com

6 December Business Presentation

Opportunities on the Future Growth Project, Kazakhstan EIC London

Hear first-hand from Tengizchevroil about the key challenges and solutions required on this project, highlighting the goods, services and lead times they require in addition to advice on how to do business in Kazakhstan. To register your interest please contact emily.light@the-eic.com

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30 November Business Presentation

Northern Member Update EIC Teesside

Including project updates from the oil and gas, power, nuclear and renewables sectors with information taken from EICDataStream, a guest speaker and plenty of opportunities for members to network with each other. EIC staff will also provide demonstrations of EICDataStream.

Sponsored by Well Services Group, a leading provider of asset integrity solutions, this event is free to attend with bookings on a first come, first served basis.

To register your interest please contact jennifer.hole@the.eic.com

6 December Business Presentation

Opportunities with CH2M HILL Yas Island Rotana, Abu Dhabi

8 December Business Presentation

North and Central America EICDataStream Training EIC Houston

11 December Overseas Delegation

Overseas Delegation to Iran 15 December Business Presentation

Bidding to Win – How to Beat the Competition without Cutting Prices Rothera Group, EIC London

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Global opportunities for the UK supply chain 22-23 November, Manchester Central, UK

The international supply chain even 300+ ONE-TO-ONE APPOINTMENTS > Book appointments with buyers > Promote your products and services > Learn about new projects and markets

SUPPLIER BRIEFINGS > Hear about high-value global opportunities > Discover how to pre-qualify as a supplier > Find out where your product/solution is needed

40+ EXHIBITORS > Meet key suppliers showcasing UK capability > Discuss new technologies in the industry > Make new business contacts

2016 speakers include:

nt of the year KEYNOTE PRESENTATIONS > Rt Hon Greg Hands, Minister of State for Trade and Investment > Prof. Paul De Leeuw, Robert Gordon University

PANEL DISCUSSIONS > Prospects for the UKCS > Contractors’ views on standardisation > Opportunity to ask questions

NETWORKING DINNER > Pre-dinner reception > Keynote speech > Network with speakers and exhibitors

BOOK YOUR TICKETS NOW

> EIC members: £249+VAT > Non-EIC members: £299+VAT

> 2nd delegate: £199+VAT > Networking dinner: £50+VAT

www.the-eic.com/eicconnect | Telephone +44 (0) 1642 379 975

BO OK NO TICKE W TS

2-day place:

16

Member news AEG Power Solutions celebrates 50 years in the Netherlands

AEG Power Solutions, a global vendor of power supply systems and provider of industrial power supply and renewable energy solutions, is celebrating the company’s 50th anniversary in the Netherlands.

To celebrate half a century of business in Holland, the company is running an anniversary campaign through its social network.

AEG Power Solutions invites customers to visit their Facebook page and join in on the celebrations and show their part in the history of the group, by contributing pictures indicating where AEG PS’ products secure their power in real-life.

‘We have strived to serve our customers in the Netherlands for over 50 years. Our longevity here and indeed throughout the world is a testament to the commitment our people to meeting customers’ needs through dedication and innovation,’ says CEO Jeffrey Casper.

AEG Power Solutions’ competence in the application of AC and DC technologies has made it an expert in securing highly reliable power to all types of critical applications, ultimately protecting people, assets and data.

It operates and directly serves customers in 17 countries worldwide.

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For more information: www.aegps.com

Alderley wins Azerbaijan produced water treatment filtration contract

Alderley Process Technologies, a subsidiary of Alderley Plc, has been awarded a contract to design, engineer and fabricate a produced water filtration package for the Deepwater Gunashli, West Chirag (DWG) production platform, in the Azeri-Chirag-Gunashli field 120km offshore Azerbaijan.

The contract, granted by KBR Overseas Operations Ltd, will see the company supply four filtration vessels, which will be designed as a guard filter to protect the reservoir by filtering the solids particles within the produced water above 50 micron.

The vertical filter vessels will be 22% duplex stainless steel and will be equipped with quick opening closures and an internal filter cassette system. The package will be engineered and manufactured in the UK. Tony Mansfield, Managing Director, Alderley Process Technologies, said, ‘Alderley have provided eight produced water treatment packages ranging from hydrocyclones to guard filter packages since 2003 for the Azeri-Chirag-Gunashli field.

We are pleased that we have been able to offer another similar filtration package for the DWG platform.’

Alderley Process Technologies is part of the Alderley Group and provides the full range of services for engineering, supply and operation of produced water treatment solutions globally.

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For more information: www.alderley.com

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APAVE acquires LyftTM innovative pulsed eddy current system

APAVE UK, a global provider of inspection, rope access and non-destructive testing (NDT) services, has acquired a brand new, innovative pulsed eddy current (PEC) system called LyftTM.

LyftTM is a high-performance PEC system that has the capability to detect, measure and report corrosion under insulation and non-conductive layers (e.g. through insulations, engineered composite repairs, fireproof coatings and beneath scabs).

The six-figure acquisition was made after APAVE UK worked with the system’s manufacturers, Eddyfi, to accurately qualify and trial LyftTM using a range of previously inservice pipework.

Commenting on the purchase, Kevin McGrath, Managing Director of APAVE UK said, ‘We are proud to be early embracers of LyftTM. We now have a system that surpasses all previous PEC alternatives, which will be of real benefit to energy sector clients.’

APAVE UK, part of the wider APAVE Group, was formed in 2012 in Dyce, Aberdeen, and offers the full suite of conventional NDT services.

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For more information: www.apave.uk.com

Member news

Power management company Eaton participated in the 2016 International Law Enforcement Intellectual Property (IP) Crime Conference in London on 19-20 September which aims to combat the global trade in counterfeit electrical products.

Eaton partners with the British Electrotechnical and Allied Manufacturers Association (BEAMA) to promote awareness and collaboration when it comes to anti-counterfeiting activity. Eaton and BEAMA have worked together for more than a decade to combat counterfeiters.

The 10th annual International Law Enforcement Intellectual Property (IP) Crime Conference, co-hosted by INTERPOL and the City of London Police in partnership with Underwriters Laboratories, celebrated a decade of success in bringing together public and private sector organisations in a common forum for developing best practices in defeating transnational IP crime.

The IP Crime Conference attracts some of the world’s leading industry figures and law enforcement experts, facilitating collaboration between key players to discuss best practices, new ideas and to enhance the focus of combating counterfeiting.

‘Counterfeit electrical products such as wiring accessories, circuit-breakers and fuses are of particular concern because they are a safety hazard, which can cause fires and pose a risk to lives,’ said Simon Bircham, Brand Protection Manager, Eaton EMEA.

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For more information: www.eaton.com

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Elfab launches ribbed explosion venting panel

James Fisher signs exclusive co-operation agreement with Oil Management and Services GmbH

The robust construction of Elfab’s latest innovation, its ribbed explosion venting panel ensures that operational excellence is maintained when low to medium levels of vacuum are present.

Part of Elfab’s latest range of explosion protection solutions, its unique design can withstand vacuum or backpressure of up to 40% of the minimum burst pressure, making it suitable for many standard applications, such as silos and bucket elevators.

As a maintenance-free, non-torque sensitive explosion protection solution, the ribbed explosion vent is one of the most economic and efficient panels on the market. Its distinctive low profile, space-saving design, low installation and storage costs mean it is one of the most cost effective options available.

The ribbed explosion vent is available with the optional benefit of an integral burst detection system for instantaneous notification when panel has functioned. Elfab’s unique ATEX-approved burst detection system, Vent-Tel, was specifically designed for its range of explosion venting panels to further ensure onsite safety for its customers.

Elfab prides itself in offering the highest level of quality and is accredited to a number of leading industry standards. Its new range of explosion venting panels, including the ribbed design, are all ‘Protective System’ ExII GD approved, offering a dust-tight seal for fail-safe explosion protection and rapid venting.

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For more information: www.elfab.com

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James Fisher Offshore

Eaton takes part in Intellectual Property Crime Conference

James Fisher Marine Services (JFMS), a leading provider of integrated marine services to the offshore renewables industry and part of James Fisher and Sons Plc, has signed an exclusive co-operation agreement with Oil Management and Services GmbH (OMS), which specialises in oil change handling equipment and pumps and filtration components.

The combined expertise of JFMS and OMS will offer significant benefits to customers in the European offshore renewables industry, with the delivery of full oil lifecycle services, including gearbox and hydraulic oil change, enhancing the safety and performance of offshore wind turbines.

The agreement will provide a customer focused oil management service, delivering efficiency, reliability, low maintenance costs and reduced downtime for offshore wind turbines, supporting the European offshore renewables industry cost reduction initiative to reduce the cost of megawatt per hour for offshore wind.

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For more information: www.fisheroffshore.com

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Member news

Rotork introduces revolutionary wireless valve monitoring concept

Rotork RI Wireless is a revolutionary concept for wireless valve monitoring and diagnostics in the process industry. The field proven solution transmits real-time position indication to the control room and enables predictive maintenance for actuated valves, delivering capital and operating expenditure reduction, increased safety and increased productivity.

Designed for new and existing plants in the process industries and utilities, RI Wireless products are certified as Zone 1 Intrinsically Safe for use in hazardous areas. By introducing comprehensive plant monitoring, the system enhances operational efficiencies and eliminates unnecessary shutdowns.

Rotork products and services are helping companies in the oil & gas, water and waste water, power, marine, mining, food, pharmaceutical and chemical industries around the world to improve efficiency, assure safety and protect the environment.

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For more information: www.rotork.com

Stork wins 2-year North Sea Repsol contract

Asset integrity services company Stork has been awarded a twoyear fabric maintenance and asset support services contract by Repsol Sinopec Resources UK Limited for six of their North Sea assets.

Stork will deliver a range of integrated fabric maintenance services, access solutions and specialist services throughout the operator’s Saltire, Buchan, Fulmar, Auk, Montrose and Arbroath installations.

The company has provided integrated services across Repsol Sinopec Resources UK’s North Sea fields for more than eight years.

‘We look forward to continuing our long standing relationship with Repsol Sinopec Resources UK and are fully committed to continuity, quality, innovation and cost efficiency to ensure that we add further value throughout this contract,’ said Mike Duncan, Stork Vice President of Delivery (UK and Africa).

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For more information: www.storktechnicalservices.com

Stork Technical Services

18

Amec Foster Wheeler awarded biomass fired CFB boiler contract

Amec Foster Wheeler has been awarded a contract by Tecnicas Reunidas SA and Samsung C&T EC UK to design and supply a circulating fluidized-bed (CFB) steam generator for the Tees Renewable Energy Plant, in Teesside, UK for MGT Teesside Ltd. MGT Teesside Ltd has also awarded a long-term service agreement contract to Amec Foster Wheeler for boiler maintenance. Through this agreement, which has a minimum term of five years, the owner will get Amec Foster Wheeler’s operations and maintenance experience and latest technology knowhow.

Amec Foster Wheeler will design and supply the 299 MWe (gross) unit of the baseload CFB power plant including auxiliary equipment and onsite technical advisory services for construction and supervisory services for commissioning.

Once it reaches its full 299MW capacity in 2020, the boiler will be the world’s largest CFB boiler utilising only biomass as fuel.

Rotork Controls

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For more information: www.amec.com

New EIC members Social media Member round news up

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).

Yokogawa UK expands its field support services

Leading industrial automation and control company Yokogawa UK Ltd has expanded its calibration and field support services.

Partnering with global service providers Intertek and Proserv, Yokogawa now offers a comprehensive range of calibration services both onshore and offshore.

Yokogawa instrumentation and thirdparty manufacturers’ products are included in this service which covers pressure, temperature, flow, and liquid/gas analysers. UKAS accredited calibrations will be carried out at testing laboratories across the UK. As equipment becomes more complex and schedules more demanding, users need to maximise plant efficiency and return on assets. Maintaining the accuracy of instrumentation through timely and consistent calibration plays an essential role in achieving these objectives.

Yokogawa’s new partnerships provide its instrumentation division the ability to offer full lifecycle supply, service and support capabilities.

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For more information: www.yokogawa.com/uk

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.

Energy Industries Council (EIC) Greg Hands MP has been confirmed as the opening speaker for EIC Connect Oil & Gas on 22 November: bit.ly/2dZPtAh

The EIC @TheEICEnergy Missed out on our ‘Opportunities on the #Tahrir Project’ event today? @Bechtel will also be speaking at #EICConnect: bit.ly/2dZPtAh

The EIC @TheEICEnergy Congratulations to @Blazeman_News and @HWusers, joint winners of the EIC Award for Supply Chain Excellence #EICDinner

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UK events Blaze Manufacturing Solutions were the winners of the 2016 EIC Award for Supply Chain Break-through for their Flameshield 300TM fire protection deluge pipework system solution.

We spoke with husband and wife team Ann Johnson, Finance Director and Howard Johnson, Managing Director during the award ceremony held at the Natural History Museum in London on 13 October.

Q

Please tell us a little about yourself and your company.

We’ve also had business mentors working closely with us.

Ann: We are based in Laurencekirk just outside of Aberdeen. Our company is a family company: there are 30 employees and our two sons work for us. They are 26 and 23 and are both designers.

You can imagine at the moment the amount of endeavour that is going into securing enough business locally. Now the flip side of doing business on four different continents means that our sales costs are going up and our revenue has been travelling in the opposite direction. We’ve had some tough decisions to make this year, but that’s the oil and gas industry for you.

A

Blaze has been going for 10 years and one of our boys has been working with us right from the outset. It’s wonderful to have a family run company: we love it.

Q

What made you enter the award?

Howard: We went for this award because we wanted to concentrate on more national rather than local awards.

Although Blaze has been going for a decade, we received type approval for the product itself in 2012. So having got four years into this process, we wanted to extend it out of our backyard.

A

During 2016 in particular, we’ve been working with Scottish Enterprise as part of their Enterprise Growth Fund to internationalise the business. This has allowed us to go into markets in Australia, Norway, Houston and Azerbaijan. We’ve been working with the EIC in all those regions too, which has really paid dividends for our company.

Q

What has been involved in becoming more international?

Howard: Scottish Enterprise has supported us through strategic growth and resilience programmes and with 50% funding for us to hire an international manager.

A

We’ve also entered the renewables market and have been involved in mining in the Congo too. These are completely different areas for us so there has been a phenomenal amount of business development work to do, in response to the lower for the longer environment.

Q

You’ve worked in the industry for a number of years now.

What are you most proud of?

Ann: Nothing beats working with your boys for a mum, but actually we employ 28 of our best friends too – because they’re like our extended family.

So when one hurts, everyone hurts. What’s been really important in the downturn has been not laying people off but feeling the pain together.

A

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We have taken a hit as owners, but we felt that was better because we’re building a great foundation for when things do recover. Going into other markets but also working on research and development

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

and IP means we now have a patented product. I spend a lot of my time on the IP side and one of my sons works with an IP attorney.

Q

What keeps you going as a business through these tough economic times?

A

Ann: You can’t let your people down. We could walk away.

Most businesses owners could.

But what are our 28 employees going to do? There are no jobs in Aberdeen so you’ve got to stick in, and we believe that, in the future, we’re actually going to be far bigger than we ever were before.

Q

How do you feel about winning this award?

A

Ann: I’m utterly amazed.

Howard: I’m chuffed.

Ann: I genuinely thought we hadn’t won. The judging panel asked some really pertinent but hard questions, so I went away thinking ‘We’ve not got it’. We came tonight because it’s such a great event at the Natural History Museum.

I still can’t quite believe it.

And I’ve no idea how we’re going to get the award home as we’re going to St Lucia tomorrow on holiday!

In next month’s issue we’ll have an interview with John Baron from Honeywell Process Solutions who won the night’s other prize the EIC Supply Chain Excellence Award.

21

EIC ABERDEEN SERVICED OFFICES TO LET Is your company looking to lease a centrally-located, fully-equipped office in the heart of Aberdeen? If so, our West End premises could be the perfect solution.

Available exclusively to EIC members, these light and airy rental offices are: • Fully furnished • Equipped with free wi-fi • Supported by our regional team • Within easy reach of Altens, Bridge of Don, Dyce and Westhill

Tenants also have free parking and use of our conference room and kitchen facilities.

The floor space of each office ranges from 9sq m to 14sq m so can comfortably accommodate two people.

For more information, please contact us.

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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22

Middle East news Regional update

November is always dominated by ADIPEC and this year is no exception.

This event is now the EIC’s largest event in the world by floor space. Despite Terry W illis the challenging times the industry is facing, there’s no reason to believe that this year’s event won’t surpass the record breaking 2015 event. As well as the exhibition, the conference will attract CEOs from the world’s major international oil companies as well as regional national oil companies. We very much look forward to welcoming everybody to the UK pavilion where there will be regular training sessions on our global project database, EICDataStream. You can also get information on the very latest initiatives being planned by the EIC, for here in the Middle East as well as around the world.

We continue to encourage our regional members to take advantage of the bespoke training sessions that we offer for EICDataStream. The more members can understand and manipulate the data to suit their business requirements, then the more added value can be enjoyed be each member company, so please get in touch to arrange sessions either at our office or at your premises.

Looking to the future, we will again be visiting the Africa Oil Week event in Cape Town. This is a superb event that covers all the activities taking place across the whole of Africa and is therefore a one stop shop to get fully briefed on the significant developments underway in various parts of the continent.

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

Siemens wins EPC contract for compressor station Abu Dhabi Gas Industries (Gasco) has selected the german engineering group Siemens for an engineering, procurement and construction management contract to construct an additional gas compressor station in the sales gas network in Taweelah, Abu Dhabi. The compressor station will back-up gas supply for Dubai and the northern Emirates in case of an outage of the Dolphin gas pipeline that imports gas from Qatar.

© 2003-2016 Shutterstock, Inc

We have a couple of events to report on since the last month. We participated at the Water, Energy, Technology and Environment Exhibition (WETEX) last month in Dubai where there was a lot of interest from delegates in the UK group and the activities we’re involved in. We were also honoured to be invited to participate in the Energy Working Group (EWG) of the UAE-UK Business Council, which is a government to government initiative set up to expand bilateral trade. The full council meets twice a year to discuss and set policy to achieve its main objective of reaching US$25bn of annual trade by 2020.

Regional news

DEWA awards Mohammed bin Rashid al-Maktoum Solar Park advisory deal

DEWA has awarded the advisory services contract to a consortium of KMPG Lower Gulf Ltd, Mott MacDonald and Ashurst for its 200MW concentrated solar power project at Mohammed bin Rashid alMaktoum Solar Park (Phase IV). KPMG will focus on the financial side, Mott MacDonald will provide technical expertise and Ashurst legal advice. It has also been revealed that the independent power producer tender for the project is to be launched by DEWA in the first half of 2017.

Forthcoming events

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

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23

Asia Pacific news Regional update

Despite the current market conditions, we are still seeing large projects proceeding in the region.

Most national oil companies Azman are taking steps to Nasir optimise costs by deferring exploration projects and undertaking internal restructuring, however, projects that have been earmarked as essential to meet certain requirements are proceeding as planned.

Regional news

CNPC selling US$11bn in financial assets

China National Petroleum Corp (CNPC) plans to sell US$11bn worth of financial assets to a listed unit as part of its plan to restructure its non-core businesses, such as oilfield services, engineering and financial operations. The assets CNPC is selling to the listed unit include the state group’s holdings in CNPC Finance, Bank of Kunlun, Kunlun Financial Leasing, Bank of China International and others.

One of the most exciting recent regional developments was the news that BP has approved the final investment decision (FID) for the Tangguh LNG Train 3 project in Indonesia. Awards for the project’s key engineering, procurement and construction contracts are expected in the third quarter of 2016 with construction to begin thereafter. In other Indonesian news President Widodo’s plan to add 35,000MW of new generation capacity during his five-year term is proceeding in earnest, with work being carried out by PLN.

The FEED for the Sole Gas field project in Gippsland Basin, Australia is nearing completion and is being undertaken by IntecSea with an FID expected to be reached before the end of 2016. The field is being jointly developed by Santos and Cooper Energy with Santos acting as operator. Elsewhere in the country, the Caldita and Barossa fields within the Bonaparte Basin have issued tenders for the pre-FEED for the FPSO and subsea components. Bidders for this project include Fluor, KBR and WorleyParsons. FEED bids will follow in the first half of 2017. The FPSO work is being carried out in Houston, while the subsea scope will be undertaken in Perth. The EPC is expected to be in excess of US$1bn.

Azman Nasir, Head of Asia Pacific azman.nasir@the-eic.com

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Japan’s Marubeni Corporation has signed a deal with Iran’s Persian Gulf Petrochemical Industries Company (PGPIC) to provide funding of approximately US$360m for PGPIC’s petrochemical development in the country.

© 2003-2016 Shutterstock, Inc

There are various upstream project opportunities in Malaysia at the moment, most notably on the Ophir field, Bunga Orchid field, Bokor Phase 3, Baram Delta and SK310 field projects. PETRONAS and PetroVietnam recently agreed to extend the production contract of the Bunga Orchid field with Repsol to 2027. Focusing on the country’s downstream section, PETRONAS’ largest project in this sector, RAPID, is proceeding as per schedule and is currently at 39% overall completion.

EIC member company, Mammoet UK, is engaged by PETRONAS to transport and deliver steam cracking modules weighing 540 metric tonnes to the project site.

Japan to fund Iran’s petrochemical development

Thailand approves longterm LNG imports

The Thai government has approved PTT Plc’s purchase of 2m tonnes of liquefied natural gas a year for 15 to 20 years to secure the country’s natural gas supply. This includes a long term purchase plan, worth about US$3 billion, in which PTT will buy an additional 1m tonnes per annum each from Shell Eastern Trading (PTE) Ltd and BP Singapore PTE Ltd. The first batch is due to be delivered in mid-2017.

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

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24

North and Central America news Regional update

We were delighted to welcome Neil Golding, Head of Oil & Gas, EIC, to the Houston office last month (pictured below). Neil really made the most of his time in the US, meeting with members Amand a Duho n active in the region, hosting a Global Energy Outlook and EICDataStream training event, as well as working closely with the Houston team on regional market intelligence.

The Houston team has made it a priority to meet with members in the region with a particular focus on training and adding users to EICDataStream. This is such a great tool for business growth and we really want our members to get the most out of it. It is, however, just one of the products and services offered by the EIC. If you are located in the area or just passing through, be sure to meet with our analysts and ask them any questions which you might have on regional matters or find out about events such as business presentations, regional/sector showcases, and training taking place at our new, stateof-the-art office and conference facilities.

We’re really looking forward to EIC Connect Oil & Gas in Manchester on 22-23 November. Clarisse Rocha, Head of Americas, and Amanda Duhon, Regional Manager for North and Central America, will both be in the UK to attend this event and look forward to meeting with as many members as possible. Be sure to book your one-to-one with them.

They’ll be happy to answer any questions you about the business opportunities on offer in the Americas and how the EIC can help you take advantage of these.

Looking further ahead, on 8 December we’ll be hosting an EICDataStream overview training session. This is free for all EIC global members and is perfect for all those of you new to EICDataStream or who want a refresher. Our analysts will be on-hand to answer any questions you may have.

If you need assistance in the region, or for information about our EICLaunchPad services, and upcoming events and training, please contact: Amanda Duhon, Regional Manager, North & Central America amanda.duhon@the-eic.com

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Regional news

Major North American pipeline operators agree to merger Canadian pipeline operator Enbridge Inc. has agreed to acquire Houston based Spectra Energy Corp. in an all-stock deal valued at about US$28bn.The acquisition is a play by Canada’s largest transporter of crude oil to expand its natural gas shipping infrastructure.

Apache riding high in the Permian Basin

The company announced that it has discovered the equivalent of at least 2bn barrels of oil in what it is calling the ‘Alpine High’ field near the Davis Mountains in West Texas. Conservative estimates value the field at US$8bn while Apache estimates the 450,000 acre field, which it owns more than 300,000 acres of, could be worth up to $80bn. The company claims that early wells are capable of providing at least a 30% profit margin with today’s prices, however, analysts question this given the need for processing and shipping infrastructure.

Anadarko buys US$2bn of assets in Gulf of Mexico

US exploration and production company Anadarko Petroleum Corp has purchased 91 offshore drilling blocks from Freeport-McMoRan in a move that will double its regional output to about 155,00 barrels of oil equivalent a day and bring the company additional cash flow. Anadarko plans to use the new revenue to boost its 2016 budget by US$200m and fund increased onshore drilling activity in Texas and Colorado.

Freeport will use proceeds from the sale to reduce its debt and refocus on its copper production business.

Forthcoming Events

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

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South America news Regional update

If you want to know about how to do business in South America and the opportunities available but don´t have the time to fly there, November brings a great opportunity to meet EIC Clariss e Roch Head of Americas Clarisse a Rocha at EIC Connect Oil & Gas in Manchester, and find out more. Also confirmed as attending is the O&G Sector Manager for the Department for International Trade (DIT), Flavia Silva. We’re expecting lots of other representatives of Brazilian companies and institutions to be there too.

The market reacted well to the announcement of Petrobras’ 2017–21 business plan (for more details see the news section below) which still shows huge investment for the next five years. A great way to find out how your company can engage with Petrobras and establish itself in Brazil is by attending to the next trade delegation to Brazil on 21 March 2017, which we’re organising in partnership with the DIT. On the topic of Petrobras and how you can work with them, it’s worth noting that the it is the world’s largest

The Cidade de Caraguatatuba FPSO at the BrasFELS shipyard in Angra dos Reis, Rio de Janeiro state. Photo: Petrobras

FPSO operator with almost 40 vessels, with this number set to increase even more as Brazilian pre-salt production gains momentum in the coming years. With this in mind, those companies wanting to take the first steps into this lucrative sector should really think about signing up for our hugely popular Fundamentals of FPSOs workshop – the next one is taking place on 26 November.

If your company needs a presence in Brazil, but is not quite ready for its own in-country office, then you should talk to us about our virtual office services or our serviced office space or meeting rooms in the EIC’s Rio location.

For more details, please contact rio@the-eic.com Clarisse Rocha, Head of Americas clarisse.rocha@the-eic.com

Regional news

Petrobras announces 2017– 21 business plan

The Brazilian oil company unveiled in late September its long-awaited investment forecast for the period between 2017 and 2021. The plan calls for an expenditure of US$74.1bn (a 25% reduction compared to the previous forecast), with a focus on the development of pre-salt reserves and the recovery of Petrobras’ finances. The company plans to put into operation 19 production units over the next five years while also building the Comperj gas treatment plant and completing the first refining train at the Abreu e Lima refinery.

Brookfield buys pipeline network for US$5.2bn

A consortium led by Brookfield Asset Management has confirmed the acquisition of a 2,500km gas pipeline network from Petrobras in a deal worth US$5.2bn.

The pipelines are located in Brazil’s south-east region and play a key role transporting gas produced from

offshore fields to major distribution companies such as Comgás in São Paulo and CEG in Rio de Janeiro. The sale is part of Petrobras’ US$15.1bn divestment programme, which has also featured the sale of the Carcará pre-salt field and the company’s assets in Argentina and Chile.

Uruguay’s power sector requires US$1bn investment

The power generation, transmission and distribution (T&D) segments in Uruguay will require an investment of US$1bn over the next three years, according to the country’s state-owned power company UTE. It is understood that the bulk of this amount will be invested in T&D projects, while US$200m will be allocated to thermal power generation. The private sector is expected to cover 40% of the total investment.

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26

Overseas events Offshore Technology Conference (OTC) 2017 Taking place from 1 to 4 May 2017 in Houston, Texas, OTC 2017 will bring together over 100,000 industry leaders and buyers, all wanting to explore the latest technology, products and services on offer.

The largest oil and gas event worldwide, OTC is one of the most important networking events of the year for the industry, with energy professionals coming from 120 countries around the world, offering the chance to develop new business partnerships.

We also run a LaunchPad service, which includes serviced office facilities, virtual offices and hot desks, in our new state of the art Houston office, located in the heart of the Energy Corridor. This is low-cost, low-risk way to establish a presence in the North and Central America market.

Regional opportunities With the event’s location in Houston, visitors will be able to learn about the wealth of opportunities across North and Central America. Despite the low oil price slowing down investment, the Gulf of Mexico continues to remain active and of high interest to operators and suppliers.

EICDataStream is currently tracking 81 offshore deepwater projects in the Gulf of Mexico with a total estimated CAPEX of US$85bn. Many of these projects have launched tenders for platforms, topsides construction and EPCs among many others. Drilling and exploration in the gulf also continues as Anadarko pursues a tie-back to its K2 field.

In March 2017 the United States Bureau of Ocean Energy Management plans to offer approximately 47 million acres offshore Louisiana, Mississippi and Alabama for oil and gas exploration. Known as Lease Sale 247, it will include 8,878 blocks in depths ranging from 3,000 to 3,400 metres. With growth and activity on the horizon for suppliers and operators alike, OTC continues to offer supply chain companies an excellent chance to discover business opportunities and position themselves for future success.

Here to help One of the EIC’s main priorities is to help UK supply chain companies build bridges into new markets by providing practical assistance and expert local knowledge. EIC staff will be on-hand at the UK pavilion at OTC 2017 to make sure UK exhibitors meet the key regional players as well as potential local partners.

Get in touch Share your news and views...

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

The UK pavilion at OTC 2015

UK pavilions The EIC’s Overseas Events department manages the UK national pavilion at approximately 10 to 12 international energy exhibitions, including OTC, every year. These events provide an invaluable opportunity for companies to access markets and meet key contacts, under a UK umbrella. The EIC provides each exhibitor with a prime location at the show, an innovative UK branded stand, promotion through industry targeted publications and various networking opportunities.

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

Global opportunities for the UK supply chain 22-23 November, Manchester Central, UK

International supply chain event of the year 2-day programme includes: > > > > > >

Keynote presentations Panel discussions Supplier briefings Appointments with buyers Market updates Networking dinner

Global coverage: > > > > > >

UKCS and Onshore Asia Pacific Brazil Eastern Europe Russia Middle East

Line-up already includes: > > > > > > > > > > > > > > > > > > > > > >

Amec Foster Wheeler Apache Bechtel Dept. for International Trade FPAL Global Energy Services McDermott Wuchuan MEED Oil & Gas Authority Petrobras Premier Oil Robert Gordon University Saudi Aramco SBM Offshore SGS Baseefa Shell Siemens Sinopec SNC-Lavalin Tengizchevroil Wood Group PSN WorleyParsons

Opening address from the Rt Hon Greg Hands, Minister of State for Trade and Investment

20+ operators and contractors 300+ one-to-one appointments

40+ exhibitors

2014 delegate comments “The one-to-ones are brilliant and there is a really positive feeling at the event.”

“A good forum for meeting the right people.”

“Great exhibition with new products on the market.”

Book your 2-day place for just £299+VAT Second delegate places just £199+VAT | Networking Dinner option £50+VAT

www.the-eic.com/eicconnect | Telephone +44 (0) 1642 379 975

UK L AL IES O T AN N E OP COMP

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EIC North and Central America

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