Inside Energy November 2019

Inside Monthly news for EIC members November 2019

EIC National Awards Dinner

Sector analysis

PIH wins company of the year 2019 round up

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David Currie, Group CEO, Proserv

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CCUS – is it time?

www.the-eic.com

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Sector analysis CCUS – is it time?

The carbon capture sector has been on a fragmented journey since the first commercial carbon capture and storage (CCS) project began operations in 1996 at the Sleipner gas field in Norway. More than two decades later, only 20 large-scale carbon capture projects are operating globally, with developments suppressed by economic constraints, poor carbon dioxide (CO2) capture rates and unfavourable government policy.

In recent years, Carbon Capture, Utilisation and Storage (CCUS) has emerged as a more viable concept and deployable option, by capturing waste CO2 and using it as a commercial product in industrial processes or permanently storing the gas deep underground. The addition of utilisation transforms the view of CO2 from a waste product into a raw material.

In the UK, against the backdrop of the failed CCS competition in 2015, the government has set out its approach to CCUS with the release of its Clean Growth Strategy which details plans for the UK to become a global technology leader in the sector and to ensure the deployment of CCUS at scale during the 2030s, subject to cost reduction. It also set out its deployment pathway action plan in November 2018 and has provided funding through the Carbon Capture and Utilisation Demonstration and Call for CCUS Innovation programmes which aim to facilitate demonstration projects and promote innovation in the industry.

With this clear policy framework and financial backing, there is now a significant pipeline of projects moving forward into the conceptual design and front-end engineering design (FEED) phases. Pale Blue Dot Energy is currently undertaking FEED work on its Acorn project at the St Fergus gas terminal in north east Scotland, which will re-utilise existing infrastructure with the hope of reducing the major barrier to CCUS deployment in the UK – the high capital costs involved in getting CCUS started. The design work is scheduled to take 18 months to complete with a final investment decision expected in 2021.

Two projects at Drax power station in Yorkshire have also secured funding from the UK government. The first is the Fuel Cell Biogenic Carbon Capture Demonstration project which aims to explore the feasibility of using molten carbonate fuel cells as a technology for capturing CO2 emitted from one of the plants biomass generating units, utilising technology from US-based FuelCell Energy.

Oliver

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The second project, already currently in trial operational at the site, is utilising bioenergy and carbon capture and storage (BECCS) technology. C-Capture hopes to discover how the technology it has developed can be scaled up to enable the Drax plant to become the world’s first negative emissions power station in the 2020s. Earlier this year, Drax announced the plant had become the first in the world to capture CO2 from the combustion of 100% biomass feedstock. Over the next two years the company hopes to extend the existing facility with the aim of moving towards commercial scale deployment.

Other significant projects are also moving forward such as Oil and Gas Climate Initiative’s Teesside Clean Gas Project which brings together major international oil operators – BP, ENI, Equinor, Occidental Petroleum, Shell and Total – to develop the UK’s first full-chain CCUS project involving the construction of a new 3GW gas-fired power plant. Elsewhere, Tata Chemicals Europe is to build the UK’s first industrial scale carbon capture and utilisation plant at its Winnington power plant in Northwich. The project, expected to be operational in 2021, will capture CO2 from the flue gases of its 96MW gas-fired combined heat and power plant, which it will then purify and liquefy and utilise for use in sodium bicarbonate manufacturing.

The recent UK policy developments and financial backing are providing a stable foundation for all these projects to move forward. The deployment of CCUS is seen as essential to combat climate change and remain below the 1.5°C temperature rise level committed to by countries under the 2015 Paris Climate Agreement.

Countries around the world are similarly supporting CCUS development including Canada, the Netherlands, Norway and the USA, and view the technology as fundamental to achieve substantial carbon reduction across their respective economies.

The next decade will be crucial for the industry with an extensive pipeline of projects preparing to move forward into construction and operation. If the economic barriers that have previously proved to be insurmountable can be overcome and government and industry can collaborate to mitigate development risks, CCUS may finally become an integral part of global carbon reduction ambitions and the wider energy transition.

Oliver Barnes Senior Energy Analyst oliver.barnes@the-eic.com

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

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Inside this issue...

In this issue, EIC senior analyst Oliver Barnes explores carbon capture, utilisation and storage Lucy C hakao dza (CCUS) as a more viable concept and deployable option to CCS as the UK government releases its clean growth strategy which details plans for Britain to become a global technology leader in the sector. Read more opposite.

We talk to controls technology company Proserv’s top executive, David Currie, about the reason behind the firm’s recent restructuring, developing new subsea controls technology and solutions, in addition to future growth plans.

Read more on page 16.

For a round-up of all the winners of our annual National Awards Dinner recently held at 8 Northumberland Avenue turn to pages 4 and 5.

Last month we also hosted three webinars and regional panel events in London, Manchester and Aberdeen, to support businesses to prepare for the implications of Brexit on the changes in the law, regulations and logistics.

We also held a Cross-Sector Decommissioning showcase highlighting new business opportunities in the oil, gas, nuclear and wind sectors.

Following on from the success of last year’s hydrogen showcase, we have partnered with Mott MacDonald to convene key players to explore hydrogen’s potential to transform the UK energy market, and discussion on the innovation required to make the vision a reality, as well as details on how your company can get involved. If you are interested, please contact: caitlin.henderson@the-eic.com

Contents Sector analysis

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Inside this issue...

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National Awards Dinner 4 New EIC members Member news

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Looking ahead, all eyes are on ADIPEC 2019.

Social media round up 13

Once again, we are excited to be back at ADIPEC this year at the beginning of November, where for the first time EIC will have five pavilions including the Welsh, Scotland, expanded and new for 2019, a digitalisation pavilion.

Why not drop by and meet the team?

One-to-one Sonardyne 15

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

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One-to-one Proserv

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Forthcoming events

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Overseas events

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UK and Europe news 21

18 February 2020 • Abu Dhabi

Oil, Gas & Beyond

EICDataStream 14

Middle East news

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Asia Pacific news

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North America news

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South America news 25 EIC Survive & thrive III 26 @TheEICEnergy

EIC (Energy Industries Council)

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EIC CEO Stuart Broadley takes to the stage

Burnley based Pipeline Induction Heat (PIH) scooped two prizes: the EIC Company of the Year Award and Diversification Award From left to right: David Henderson (px), David Bell (PIH), David Britch (PIH)

Hughes Safety Showers scooped the Innovation Award Left to right: Chris Slingsby (Amodil), Kiran Damji (Hughes Safety)

The Export Award was collected by global firm Proserv Left to right: Irina Krylova (SPE), John Bright (Proserv)

EIC, in partnership with the Robert Gordon University, presented the EIC/RGU Rising Star MBA Award to Brian Geddes (centre) of infrastructure solutions business px, with Ian Broadbent from RGU and Stuart Broadley

Balmoral Offshore Engineering landed the Service and Solutions and Collaboration Awards. Left: Geoff Holmes (px). Right: Aneel Gill (Balmoral)

EIC National Awards Dinner

EIC NATIONAL

DINNER 2019 TV personality and comedian Dara Ó Briain provided the night’s entertainment and handed out the awards

3 OCTOBER

Pipeline Induction Heat (PIH) wins EIC Company of the Year Award Burnley based Pipeline Induction Heat (PIH), part of CRCEvans Pipeline International, a leading pipeline construction services provider, has won the prestigious Energy Industries Council (EIC) Company of the Year Award, in addition to the Diversification Award at the EIC 2019 National Awards Dinner.

Integrated engineering services company Booth Welsh won the Digital Award and also landed the Optimisation Award Left: Stuart Young (ABB). Centre: Martin Welsh (Booth Welsh)

PIH successfully implemented a plan to grow exports and diversify its client base and service offering. The company has retained its number one market position, in a reduced market size, while protecting its core workforce.

Seven other awards based on a range of eight strategies featured in the third edition of EIC’s Survive & Thrive insight report, which studied what businesses have employed to grow, against a backdrop of a cautious oil and gas market recovery and focus on decarbonisation, and Brexit uncertainty, were also handed out during the black-tie event attended by just under 300 guests.

The gala evening, one of the industry’s premier award ceremonies, included after dinner entertainment from TV personality and comedian Dara Ó Briain.

The Innovation Award was taken home by Hughes Safety Showers who landed the prize for their innovative cooling technology for emergency safety showers.

The Technology Award was collected by Yokowaga TechInvent Left: Dave Pickles (Capula). Right: Alf Engil Stensen (Yokogawa)

Many thanks to our sponsors

The Digital Award, a category launched at last year’s event, was awarded to integrated engineering services company Booth Welsh who has boosted market differentiation by offering digital ready products. The company also landed the Optimisation Award.

Proserv’s successful strategy of boosting growth through service localisation in the Middle East, saw the global firm scoop the Export Award.

Balmoral Offshore Engineering landed the Service and Solutions and Collaboration Awards. The judging panel was impressed by its collaboration and early engagement strategy.

The Technology Award was collected by Stavanger based company Yokowaga TechInvent, who invented a gamechanging solution to chemical injection control.

In addition to the company prizes, EIC, in partnership with the Robert Gordon University, presented the EIC/RGU Rising Star MBA Award to Brian Geddes of px.

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New EIC members NEW AMERICAS GLOBAL MEMBER

CSE W-Industries

NEW UK MEMBER

Doosan Babcock

11500 Charles Road Jersey Village Houston TX 77041

Doosan House Crawley Business Quarter Manor Royal, Crawley West Sussex RH10 9AD

The Nominated Representative is Mr John Campbell, Executive Vice President Sales and Strategy

The Nominated Representative is Mr Tony Hood, Business Development Manager

NEW RENEWABLE ENERGY MEMBER

Epeus Management Ltd Ibex House Baker Street Weybridge KT13 8AH The Nominated Representative is Ms Claudette Gaius, Market Analyst

Telephone +1 713 466 9463

Telephone +44 (0)141 886 4141

Email john_cambell@w-industries.com

Email tony.hood@doosan.com

Email cgaius@epeusconsulting.com

Web www.w-industries.com

Web www.doosanbabcock.com

Web http://epeusconsulting.com

W-Industries is an engineering and services company providing automation solutions, I&E services and packaged systems for the energy and industrial process control markets. The company has headquarters in Houston, Texas with additional manufacturing, engineering and fabrication facilities in Maurice LA.

Doosan Babcock Limited is a leading provider of technology, products and services for the energy and process sectors including power generation (thermal and nuclear), oil, gas, petrochemical, chemicals and pharmaceutical. A wide range of life cycle aftermarket support to production assets is offered, including maintenance, repair, overhaul (MRO) and construction together with upgrade/major retrofit and new build projects, specialist technical support and manufacture of replacement components.

Epeus Group is an independent project risk management firm in the energy industry. It has a wealth of expertise in field development, drilling rig and specialist vessel projects. Overall, Epeus Group has delivered over 220 projects worldwide.

W-Industries has experience and expertise delivering both individual and fully integrated packages across the project lifecycle. Experienced teams provide solutions from FEED to commissioning and start up, as well as continued maintenance services to customer projects globally.

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The company is a wholly owned subsidiary of Doosan Heavy Industries Corporation based in South Korea, and therefore has a global reach to service customers’ new build, upgrade, modernisation, retrofit and MRO requirements worldwide. Doosan Babcock has access to a wide range of OEM knowledge via inhouse and associate companies including pulverised fuel boilers (coal and biomass), circulating fluidised bed boilers, energy from waste technology and air pollution control systems (Doosan Lentjes) and steam turbines from Doosan Skoda Power.

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

Telephone +44 (0)1932 824 590

Epeus Group protects the interests of its clients by assisting them to feel more certain in their contractual and legal issues, investments and capital projects along all the phases (from project definition to final operational readiness). Clients include E&P companies, service companies, investors and banks, and shipyards.

Epeus Group also works with law firms and in-house legal counsels of energy clients, helping them in their disputes by providing advisory during the pre-dispute phases and experts witness (individual or a full diverse team) support until final resolution.

New EIC members

NEW PRIMARY MEMBER

NEW BRAZIL MEMBER

iO Associates

Kincaid Mendes Vianna Advogados

63 St Mary Axe London EC3A 8AA The Nominated Representative is Mr Jamie Wightman, Manager Telephone +44 (0)1173 328 080 Email j.wightman@ioassociates.co.uk Web https:// precisionresourcegroup.co.uk iO Associates is a specialist staff solutions provider to the global energy sector. From conventional sources to the exciting world of renewables, it supplies contract and permanent personnel across the full lifecycle of power generation and transmission and distribution projects.

Managing all engineering disciplines from initial design, construction, installation and commissioning, through to O&M and decommissioning. iO Associates prides itself on delivering the highest quality and most innovative talent in the market.

Avenida Rio Branco, 1-14° andar Centro, Rio de Janeiro Brazil 20.090-003 The Nominated Representative is Ms Camila Mendes Vianna Cardoso, Partner Telephone +55 21 2276 6200

NEW OVERSEAS GLOBAL ASIA PACIFIC MEMBER

Malaysia Marine and Heavy Engineering Level 31, Menara Dayabumi Jalan Sultan Hishamuddin Kuala Lumpur, Malaysia 50050 The Nominated Representative is Mr Faizal Harun, Manager, Business Registration & Strategic Marketing Telephone +603 227 53850

Email camila@kincaid.com.br

Email faizal.harun@mmhe.com.my

Web www.kincaid.com.br

Web www.mhb.com.my

Established in 1932 in Rio de Janeiro, Kincaid Mendes Vianna Advogados is one of the most traditional and long standing law firms in Brazil with core values based on integrity, transparency, ethics, and respect.

Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) is a globally trusted marine and heavy engineering solutions provider for a wide range of offshore and onshore facilities and vessels.

Throughout its 87 years, the firm consolidated its experience in civil, commercial, corporate and tax law and, notoriously, in maritime law, insurance, and reinsurance and international law, with an emphasis on litigation and arbitration.

27 February 2020 • Mexico City

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New EIC members

NEW OVERSEAS GLOBAL ASIA PACIFIC MEMBER

Metal Technology Co Ltd

NEW PRIMARY MEMBER

Molyslip

Harmony Tower 27F 1-32-2 Honcho, Nakano-Ku Tokyo 164-8721 Japan

4 Hungsman Drive Northbank Industrial Park Irlam Manchester M44 5EG

The Nominated Representative is Mr Robert Joseph, Deputy Department Sales Manager Sales Division

The Nominated Representative is Ms Lauren Wolstencroft, Head of Marketing & Commercial Administration

Telephone +81 3 5365 3050

Telephone +44 (0)161 804 4700

Email rjoseph@kinzoku.co.jp

Email lauren.wolstencroft@ bishopdalegroup.com

Web www.kinzoku.co.jp

Web www.molyslip.co.uk

Metal Technology Co Ltd (MTC) was founded in 1960 and has developed into a global expert in providing metal solutions to its customers. It provides integrated manufacturing solutions and services of metal parts through HIP treatment, vacuum heat treatment, diffusion bonding, machining, brazing, welding and additive manufacturing to meet the rapidly changing needs of various industries including the aerospace, oil and gas, nuclear and industrial gas turbine industries. With eight plants located in Japan and its subsidiary plant in Suzhou, China, MTC is a provider for customers worldwide.

Molyslip is a UK-based manufacturer of specialist lubricants. For over 80 years, Molyslip has developed and supplied superior performance products to industry leaders around the globe. Its products are backed by science, technology and quality, which is why for more than 50 years, COPASLIP has been an industry standard.

ENERGY EXPORTS CONFERENCE TECA at P&J Live Aberdeen / 17-18 JUNE

2020

Access $500bn of global opportunities

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

NEW PRIMARY ASIA PACIFIC MEMBER

Perisind Samudra Sdn Bhd Unit 18-03, Level 18, Menara Zurich No 15, Jalan Dato’ Abdullah Tahir 80300 Johor Bahru, Johor, Malaysia The Nominated Representative is Mr Abdul Hakim, Head of Strategic Planning & Communications Telephone +607 338 2004 Email hakim@perisindsamudra.my Web http://perisindsamudra.my PSSB is a master developer of approximately 800 acres of land it beneficially owns near PETRONAS’ Pengerang Integrated Complex (PIC) in Pengerang, Johor. It is a dynamic and progressive joint venture Bumiputera company which is linked to the Johor state government via PIJ Holdings Sdn Bhd. PSSB’s business strategy is to pursue innovative and valuemaximising commercial and industrial real estate opportunities that would complement and support the economic development and growth of the Pengerang locality.

PSSB is also looking into green and renewable energy opportunities in support of the local government’s (PBT Pengerang) efforts to become a smart and sustainable green and low carbon city.

PSSB’s approach is to engage and collaborate with various state and private entities. Notably BYD of China, PETRONAS Refinery and Petrochemical Corporation Sdn Bhd, PETRONAS New Energy Division, Serba Dinamik Holdings Berhad, Wasreno Development Sdn Bhd, Weststar Construction Sdn Bhd, Perintis Majumas Sdn Bhd, Fitrah Nyata Sdn Bhd, TNS Pengerang Sdn Bhd and Gadang Engineering (M) Sdn Bhd.

New EIC members

NEW BRAZIL MEMBER

Polar Components Av Nossa Senhora da Glória 1395 - Cavaleiros Macaé, RJ 27920-360 Brazil The Nominated Representative is Mr Emerson Rodrigues Esteves da Silva, Director Telephone +55 22 2105 7777 Email emerson@polarb2b.com

NEW GCC MIDDLE EAST MEMBER

NEW GLOBAL MEMBER

Sea Gulf Industrial Supplies LLC 19th Floor, Al Ghaith Tower Hamdan Bin Mohammed St Abu Dhabi UAE The Nominated Representative is Mr Stephen Cooper, Director Telephone +971 2 641 8229

Vikoma International Ltd Kingston Road East Coews Isle of Wight PO32 6JS The Nominated Representative is Mr Paul Rayner, Sales Director Telephone +44 (0)1983 200 560

Email stephen@seagulf.ae

Email prayner@vikoma.com

Web www.polarb2b.com

Web www.seagulf.ae

Web www.vikoma.com

Polar Components’ mission is to reduce downtime for lack of spares, providing electrical, electronic and automation components, mainly those of difficult acquisition.

Sea Gulf was founded in 1983 and is a market leading industrial supply and distribution company based in Abu Dhabi, UAE.

Founded by BP in 1967, Vikoma is a world leader in the design and manufacture of wastewater and marine oil control solutions.

Sea Gulf specialises in the procurement, supply and distribution of industrial equipment and materials used primarily in the oil and gas, power, and nuclear industries in the Middle East.

Vikoma offers a range of equipment for containment and recovery of oils, specifically for industrial applications such as refineries, petrochemical, power generation and waste oil pits.

Since 1992, Polar Components helps keeping customers operations safe, stable and environmentally friendly.

Its distribution arm works with high end, quality manufacturers that are exclusive to Sea Gulf in the region to provide their products to oil and gas, power and nuclear projects.

Sea Gulf works with some of the largest companies globally to provide quality superior addedvalue products and is committed to focus on products and markets where it can achieve and sustain leadership positions.

Vikoma offers equipment fully certified for use in hazardous areas and has a dedicated engineering team to design systems to meet customers’ requirements. Vikoma’s solutions have been deployed worldwide.

It also designs and manufactures an extensive range of oil spill recovery equipment.

Over the past 35 years Sea Gulf has developed and maintained a market dominant position in the region as a direct result of its supply and service quality.

Sea Gulf has earned its reputation for consistently delivering results that add value. It strives to be a trusted partner for every client and is globally recognised for its professionalism, reliability, efficiency and quality.

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Member news Operator confidence in Churchill’s HyPR HoleSaver™ soars

After a major operator recovered from stuck pipe by severing its drill string in just one hour, operators are increasingly adopting the HyPR HoleSaver as their primary contingency against stuck pipe, reports Churchill Drilling Tools, a global oilfield service company specialising in drilling innovation.

After a series of successful HyPR severances this year, the one-hour cut was achieved after a major operator became stuck around 13,000ft due to heavy losses.

After jarring attempts failed and having previously spent two days mobilising explosives to manage an earlier stuck pipe incident, the operator opted to deploy the HyPR HoleSaver, placed in the string for just such an event.

The HyPR put the operator back in control of the campaign very quickly.

Requiring no additional topside equipment or personnel, the HyPR cut the string in just an hour, widely thought to be the industry’s quickest ever stuck pipe severance.

Global E&C wins life-of-field contract with Apache North Sea subsidiaries

Global E&C forms part of Global Energy Group, based in Inverness, and this award is the largest in the group’s history.

Operating across the Beryl and Forties fields, Apache’s North Sea business has demonstrated its commitment to the basin with what is understood to be the largest life of field contract award in the history of the oil and gas sector in the UK. Global E&C was formed specifically to support UK operators in delivering brownfield modification services.

Global E&C supports several operators in the UK and has a presence across over 20 offshore installations. The long-term partnerships formed over the years with its customers has positioned the business well for the future, which includes a focused recruitment campaign for an additional 60 offshore and onshore personnel to support Global E&C’s growth.

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For more information: www.gegroup.com

Described by one client as a ‘game changer for managing stuck pipe’, operator confidence and demand for the HyPR HoleSaver has risen rapidly.

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For more information: www.circsub.com

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iNPIPE PRODUCTS™ celebrates 35 years in business Richmond based pipeline pigging experts – iNPIPE PRODUCTS™ – celebrates its 35th year in business this year with a strong order book and exciting plans for high tech innovations to bolster its extensive range of pipeline pigging products and bespoke solutions.

The North Yorkshire firm, which was founded in 1984 by pipeline industry figurehead Ken Hemingway, has grown at an exponential rate from a 20,000 sq ft site in Colburn to its current state of the art facilities spreading across a six acre site with a 60,000 sq ft production and testing facility in Brompton on Swale.

Exporting over 84% of all orders to major clients across six continents worldwide, including the likes of Aramco, Centrica, Shell, Esso, ConocoPhillips and Subsea 7, the company is an acknowledged world leader in pipeline pigging, maintenance and testing products and developing bespoke solutions.

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For more information: www.inpipeproducts.com

Member news

Tough outdoor enclosures simplify advanced remote I/O plant control architectures At ADIPEC, 11-14 November, Intertec will launch a range of tough field enclosures for housing remote I/O and other control and instrumentation electronics, featuring compact passive cooling to dramatically reduce costs of ownership. The new enclosures help EPCs and processing plant engineers to eliminate the need for large and costly plant buildings such as satellite instrument houses or remote instrument enclosures – which often need to be air conditioned and blast and fire-resistant.

Fabricated from GRP (glassfibre reinforced polyester) materials, the enclosures provide rugged dust and water-proof environments to protect remote control equipment located deep inside processing areas.

Developed at the request of clients, the enclosure concept simplifies the roll-out of more versatile distributed control architectures containing field equipment such as softwareconfigured I/O, IIoT networking and PLCs. The advance can allow field control equipment enclosures to be assembled and sealed in the factory – an efficient and cost effective process – avoiding the need for opening and exposure to dangerous local conditions at the site during installation and operation.

As many advanced remote I/O applications will, by their nature, be compact and small, Intertec has designed new passive cooling systems for smaller-sized cabinets and enclosures. Intertec is exhibiting the new enclosures at ADIPEC on the booth of its distributor, Al Masaood – one of the largest engineering and commercial companies in the UAE and Middle East.

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For more information: www.intertec.info

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MHKW Nord in Chemnitz

Oil and gas asset performance and risk management still rely on a single data source

MAN Energy Solutions to build two combined heat and power plants in Chemnitz

The report, ‘Oil & Gas: Achieving operational excellence in uncertain times’ reveals the technologies US oil and gas companies currently use to manage and maintain their assets, and the methods they plan to adopt in the future.

As part of the service and maintenance contract that has also been signed, MAN Energy Solutions will initially assume responsibility for servicing the gas engines for a total of 40,000 operating hours. The service package also includes the remote monitoring solution PrimeServ Assist, which allows for the processing of quasi-real-time data.

Despite the age of big data, 71% of organizations still rely on a single data source to analyse asset performance and risk management – instead of drawing information from multiple sources for a more comprehensive view, reveals a report released by Lloyd’s Register.

According to data collected by Lloyd’s Register from its customer base, Asset Performance Management systems such as AllAssets are proven to reduce failure risk by 80% and achieve operational cost savings of up to 50%. Their impact could be transformational if companies can embrace advanced digital systems to provide a robust and adaptable option for the future of their assets.

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For more information: www.lr.org

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MAN Energy Solutions has been commissioned to build two enginepowered CHP plants in Chemnitz by eins energie in sachsen. The two plants, MHKW Nord and Altchemnitz, will be operated with seven and five MAN gas engines of type 20V35/44G TS respectively, each with an electrical output of 12.6MW.

The MHKW Nord plant is being constructed on the site of the previous lignite-powered Nord I power plant, which was demolished in 2004. The second CHP plant will supplement the heating boiler system at the Altchemnitz heating plant, which is also powered by natural gas and was upgraded in July.

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For more information: https://uk.man-es.com

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Member news

Safety is golden as px wins awards

px has achieved four more Gold Awards from the Royal Society for the Prevention of Accidents (RoSPA) for its performance in 2019 – as well as an Order of Distinction and two Gold Medals.

Sites honoured at a special awards ceremony in Glasgow, included the Teesside gas processing plant, which was commended with an Order of Distinction after securing a Gold Award for the 23rd year in a row. Fellside CHP station, adjacent to Sellafield in Cumbria, received its eighth consecutive Gold Award, also securing its fourth Gold Medal – awarded to sites with between five and nine years of continued success.

I’d like to thank all employees and contractors for continuing to abide by our safe working practices and for ensuring they keep themselves, their colleagues and the areas in which they work, safe.

Paul McCann, Executive Director of Safety Health and Environment (SHE) and Risk Management, px

There was also a Gold Medal for px Group, for five years of exceptional safety performance at sites including: Saltend chemicals park, near Hull, East Yorkshire; the gas fired Stallingborough CHP plant, near Immingham, North Lincolnshire; the Port Talbot biomass power plant in South Wales; Beckton Energy Combined Heat and intelligent Power (CHiP) plant, in East London and the company’s headquarters and offices in Stockton-on-Tees.

BP’s Clair Ridge platform photo © BP

BP deck operations contract a first for Sparrows Group Sparrows Group has announced the award of its first contract to deliver deck operations services in the UK Continental Shelf (UKCS) from supermajor BP.

The contract builds on the Aberdeen company’s existing long-term relationship with the E&P organisation to become a single point of contact for all lifting and handling operations across its Andrew, Clair Ridge, ETAP and Glen Lyon platforms in the region.

Under an existing agreement, which was renewed in 2015, Sparrows has been providing crane maintenance and operations services to BP in the North Sea for over 45 years.

Finally, a third Gold Award in three years for the St Fergus gas processing terminal, north of Aberdeen, capped another year of gold award wins across the board for px.

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For more information: www.pxlimited.com

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This new scope of work will see Sparrows’ deck crew fulfil multiple roles including load handler and banksman/slinger to support lifting operations and carry out bulk handling and management of all cargo on the assets. In addition, the crew will undertake helideck and emergency response functions as necessary.

Stewart Mitchell, CEO, Sparrows said: ‘We have successfully delivered deck operations for over 15 years’ on FPSOs and platforms in African waters. This award demonstrates the strong relationship we have with BP globally and our previous experience will be key in executing these first contracts in the UKCS.’

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For more information: www.sparrowsgroup.com

New EIC members Member news Social media round up

WEG unveils new M Mining series of slip-ring motors

WEG, a leading global manufacturer of motors and drive technology, has presented the new M (Mining) series of slip ring motors for use in the mining and cement industries.

Available in frame sizes IEC 355 to IEC 1000, the new M Mining slip ring motors cover the power range from 250kW to 10MW at 50Hz or 60Hz line frequency. These three-phase induction motors between 4 and 14 poles are designed for voltages up to 13.8kV. The robust M Mining series is intended for dusty environments in the iron ore or cement sectors.

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

The EIC @TheEICEnergy

Congratulations to EIC/RGU Rising Star MBA Award winner, #PX’s Brian Geddes, who wins a @RobertGordonUni scholarship on their MBA course worth £17,000!

The EIC @TheEICEnergy

The motor series is available in two versions: either with a brush lifting device, or with brushes in constant contact. The lifting mechanism of the brush lifting device has been redesigned to make it even easier to maintain. An integrated control system is also available as an option for the brush lifting device.

The system offers alternative advantages. For example, the cooling system of the brush compartment is independent of the motor cooling system, further boosting the efficiency. The extended lifetime of the brushes is one of the main advantages, but user access to the brush compartment is also significantly easier with this version. The brush compartment achieves an IP rating of up to IP66.

With access to 975 CAPEX projects, EIC #UK Membership is perfect for energy supply chain companies focused solely on opportunities in the UK energy sector: bit.ly/2mw16bN

EIC (Energy Industries Council) Unlocking innovation through internal collaboration led to success at Booth Welsh.

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i

For more information: www.weg.net/uk

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EIC (Energy Industries Council)

13

14

DataStream BRAZIL

Marlim Field Redevelopment Operator: Petrobras Value: US$1.5bn Modec has been awarded a letter of intent by Petrobras for the supply, charter and 25-year operation of the Marlim-1 FPSO. Sofec, a Modec subsidiary, will design and supply the vessel’s spread mooring system.

i

Global opportunities ANGOLA

Soyo Refinery Operator: MIREMPET Value: US$1bn MIREMPET launched a tender on 24 October to select an investor to build, own and operate the 100,000b/d refinery. The deadline for proposals to be submitted is 18 December, with the winner due to be announced on 4 March.

MOZAMBIQUE

Rovuma LNG Liquefaction Plant Operator: Mozambique Rovuma Venture Value: US$12bn ExxonMobil has awarded a JV of JGC, Fluor and TechnipFMC the EPC contract. A decision has been made to invest more than US$500 million in early stage construction.

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

FRANCE

INDIA

NIGERIA

Landivisiau CHP Power Plant

Seli Hydro Power Project

North Core Interconnector Transmission Line

Operator: Compagnie Electrique de Bretagne (CEB) Value: US$500m Construction of a 446MW combined cycle natural gas-fired power plant in Landivisau. Siemens has been awarded a €450 million contract to construct the plant and will operate and maintain the facility on behalf of CEB for twenty years.

Operator: NTPC Ltd Value: US$800m Development of a 400MW hydropower plant located in the Chenab Basin of Lahaul and Spiti district in Himachal Pradesh. NTPC Ltd has signed a memorandum with the government of Himachal Pradesh to build the plant alongside the operator’s planned Myar 120MW hydro power plant.

Operator: West African Power Pool Value: US$678m A transmission line to connect the grids of Benin, Burkina Faso, Nigeria, Niger and Togo. The project will construct an 875km long, 330kV line from Birnin Kebbi (Nigeria) to Ouagadougou (Burkina Faso). Four prequalification bids have been opened to invitations for four various EPC contracts.

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15

One-to-one

with Barry Cairns Vice President for Europe, Africa & South America, Sonardyne Barry Cairns, Sonardyne’s Vice President for Europe, Africa & South America, has been with Sonardyne for more than 20 years, following service in the Royal Air Force. During his time at Sonardyne, he’s gained an MBA and now leads the company’s business across Europe, Africa and South America.

Sonardyne is a specialist underwater technology and engineering company, headquartered in the UK and with offices and service centres around the world, including Houston, Singapore and Brazil.

Q

Tell us about Sonardyne’s activities/set up in Brazil?

We first set up an office in the country in 1999. Since then we’ve grown, building out our local offering to include offshore and onshore support including repairs and training. This led to investing in a purpose built facility, opened in 2012, at Rio das Ostras, which has offices, repair workshop, dedicated training room and purpose built water tank test facilities.

A

Q

You are celebrating 20 years in Brazil, what’s the significance of this?

For us it’s a great milestone. We set up a base here for the long term. When the downturn came and many others left, we decided to stay. We found other ways of continuing to maintain our support in-country, including having in-country stock that we could rent. Doing that meant we could continue to support our clients so that operators and subsea service companies continued to have access to our equipment.

A

What’s more, because we’ve now been here for 20 years, and provide customer training, technical support and maintenance in-country, as well as rentals, customers know they can rely on us. They know we have what they need, that we have our latest advanced technologies and that we can service it here and train their staff on it locally.

Q

What do Sonardyne specialise in, what products/ equipment do you offer?

Broadly, we provide underwater navigation, positioning, imaging and communications technologies. We help contractors to survey and position equipment, we provide oceanographic instrumentation so scientists and exploration companies can learn more about the oceans, we help subsea vehicles know where they are and let them talk to other subsea and surface vehicles and even underwater sensors, and a lot more besides. Basically, if you need to do anything underwater, we can help you!

A

Q

What has been a highlight in the last year?

A

The whole year! It’s been our best financial year yet in terms of orders. Within the last 12 months, we’ve also supplied 10 Brazil-based vessels with acoustic positioning, navigation and tracking technologies, from hybrid navigation solutions to high-precision Ultra-Short BaseLine (USBL) acoustic positioning systems, across oil and gas and ocean research.

We’re also excited to be working with Shell Brasil and Brazilian research institute Senai-Cimatec to develop innovative autonomous technology to make monitoring

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challenging deep water presalt oil fields more efficient and its technology is set to help advance subsea robotics systems in the region.

Q

Tell us a little bit more about Sonardyne’s subsea robotics tech?

A

We support subsea robotics in a number of ways, from navigation – using our SPRINT-Nav hybrid navigation instrument on subsea vehicles, so they know where they are – to tracking and communication between single vehicles and swarms of vehicles.

SPRINT-Nav has been hugely popular this year. It’s a highperformance hybrid navigation instrument which makes ROV operations more accurate but also easier because it combines, in a single instrument, the functionality of what would normally be separate instruments – Sonardyne’s SPRINT inertial navigation system (INS), Syrinx Doppler velocity log (DVL) and a high accuracy depth sensor.

It’s easy to integrate and it’s also got a few neat tricks, like beam-level aiding – so it’s still calculating even if one of the DVL beams doesn’t achieve bottom lock. It also has dual algorithms that feed off the DVL and INS, so it’s always working out where it is with the best data it’s got every second.

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EIC (Energy Industries Council)

16

One-to-one with David Currie Group CEO, Proserv

Controls technology company Proserv’s top executive, with more than 30 years’ experience in the energy industry, talks about the reason behind the Aberdeen headquartered firm’s recent restructuring, and details its future growth plans.

Q

What was the rationale behind the recent Proserv restructuring into two divisions?

As we put together our strategic plan over the past 12 months, looking five years ahead, the restructuring into two distinct divisions suggested itself. So, we have formed a controls technology division, Proserv Controls, led by Davis Larssen, and a valve technology division, Gilmore, a Proserv Company, led by David Nemetz. Meanwhile, those parts of the previous business that no longer fitted into our future framework have been found new homes, so they can continue to thrive.

A

But the key focus for us is to drive Proserv forwards as a technology company. So, what we announced at the start of October is effectively the implementation of the first part of that multi-year plan to create two strong, technology driven entities, geared up for growth, filled with talent and with close customer relationships.

Q

What are your plans for developing new technology and solutions moving forwards?

Within our wide-ranging strategic plan are multiple sections assessing factors including market predictions through to core internal considerations such as

A

supply chain development as we look to grow, but one of the fundamental building blocks is, without doubt, our technology roadmaps for both new divisions.

These clearly lay out how the technological development is going to lead in both Proserv Controls and Gilmore. The plans for year one, pushing firmly into 2020, are very clear and they gradually become more generic as the years progress. To give one example, part of the challenge for our valve controls division Gilmore, is to take its strong market position for high integrity components and build on that to grow the business. As part of this strategy, the board recently approved a sevenfigure investment in a new cycle testing facility, which will be state-of-the-art, and will not only support the roll-out of our new Gen 2 valves but will aid future R&D too.

For Proserv Controls, the model of our subsea controls technology and its cutting edge capability is already very strong in the market – so we continue to drive the themes of controls coexistence, reliability and our reputation for our equipment never becoming obsolete.

Our R&D team in Trondheim, supported by their colleagues in Great Yarmouth, has done a huge job in pushing continuous improvement in that technology.

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Building on our topsides strength and global installed base, we are looking at the advancement of our asset enhancement global intelligence solution (AEGIS) in the service arena and exploring what other parts of the market we can apply that customerfacing support to in the coming months.

Q

In the past 12 months, you’ve clearly been busy re-shaping your firm – could more acquisitions or additions occur?

A

Even as we have worked on restructuring our business into two divisions, we have never stopped hiring new talent with an eye fixed on our future development. But we already possess a tremendous talent for technology and growth and so an organic evolution would be our first port of call; however, that will not preclude us from acquiring the right capability or growth engines to our company if that is the way to go. Our board has been very supportive of this.

Looking forwards into 2020 and beyond, I believe we will have grown via the delivery of our own technology and through the partnering and acquisition of other technologies to enhance that offering. But anything we do in this space will be around the principle that we are a controls technology company.

Proserv

17

Q

In which parts of the business do you anticipate the greatest growth in the next few years?

A

In the controls technology area, the consistent core growth mechanisms in both subsea and topside controls will certainly continue. Our controls technologies enhance our customers’ capability to succeed, they provide reliability of performance and enable correct decisions and planning to be made.

In addition, the amalgam of the technologies within our sampling business and our measurement team could potentially enable us to provide enhanced offerings to the market. Our sampling team is growing internationally and is now beginning to replicate from our Houston facility what it does here in Aberdeen. There is also increased interest in our subsea sampling capability and a major operator has taken this up recently.

Also, looking ahead, our controls technology offers us a viable platform to consider its application within the renewables market. There is no doubt renewables is an area we are currently looking at closely and we are building a route forwards.

Each part of the business, within our two new divisions, has the capability to grow – and that is exactly how it should be, as that is precisely why we have set up our company in the way we have – to maximise the opportunities for growth.

Q

One of your divisions is headquartered in Aberdeen, the other in Houston, so which markets are your key priorities?

A

We are a global company serving the markets our customers operate in and will support them in their future activities, wherever that may take us.

There is no question the US is a hugely important market – in Houston we have Gilmore’s facility and HQ, we have a subsea controls base at Sommermeyer,

At Gilmore, I am hugely excited by the opportunities the team there is focused on and developing.

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Our Gen 2 valves, which we are now rolling out, incorporate great technology and design, building on the decades of performance and reliability Gilmore is globally renowned for. This generation of valves is designed to meet the industry’s challenges of today and the future. I am equally excited that Gilmore is starting to look, not only at enhanced application of its technologies within the energy sector, but also at other industry applications where reliability and high integrity valve applications are required.

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which also provides topsides systems, and the on-going developments in US land activities necessitate we take our expertise into that space.

Equally the North Sea is a major area of operation, both from the UK and Norway, while Aberdeen is of course our base – we also have an IWOCS facility here and our sampling site. In Trondheim and Great Yarmouth, we have two outstanding controls centres of excellence serving the world: their technology and solutions support customers in key global markets including the Gulf of Mexico, Africa and the Far East, as well as here in the North Sea.

Our service and technology support footprint is equally critical. Again, globally focused, it can also deliver custom designed capabilities for clients in locations as diverse as Stavanger, the Middle East, Chennai and Nigeria.

Our priority is to be close to our customers – it’s something they value and something we’re good at. If we have customers out in the field needing support, it’s our business to be there alongside them.

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

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EIC (Energy Industries Council)

18

November – December 2019

Forthcoming events 4 November Sector Showcase

Internationalisation in Oil and Gas EIC Rio de Janeiro

5 November Business Presentation

EICDataStream Overview

British Consulate General, São Paulo

6 November Industry Overview

Fundamentals of Subsea EIC London

7 November Sector Showcase

Hydrogen with Mott MacDonald Park Inn Radisson, Manchester

7 November Business Presentation

EICDataStream Overview EIC Houston

11 November Overseas Exhibition

ADIPEC

ADNEC, Abu Dhabi, UAE

12 November Business Presentation

Opportunities with Enauta EIC Rio de Janeiro

12 November Business Presentation

EICDataStream Overview EIC Kuala Lumpur

13 November Corporate Entertainment

EIC at the Houston Rockets Toyota Center, Houston

13 November Industry Overview

Fundamentals of FPSOs EIC Rio de Janeiro

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13 November Management Course

EICDataStream/AssetMap training Online

19 November Industry Overview

Fundamentals of LNG EIC London

20 November HSE Training

The ATEX Directives SGS Baseefa, Buxton

21 November Business Presentation

Opportunities with McDermott EIC Houston

21 November Business Presentation

EICDataStream Overview EIC Houston

26 November Industry Overview

Oil & Gas Regulatory Framework EIC Rio de Janeiro

27 November Management Course

EICDataStream/AssetMap training Online

29 November Regional Showcase

EIC Open Day Nylacast, Leicester

3 December Regional Showcase

EIC Open Day EIC London

3 December Technical Workshop

Electrical Condition Monitoring EIC Rio de Janeiro

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

Forthcoming events

18 February 2020 • Abu Dhabi

CONNECT December 2019 – January 2020

Oil, Gas & Beyond 4 December Sector Showcase

11 December Business Presentation

Energy from Waste

EICDataStream Overview

North West England

EIC Kuala Lumpur

5 December Business Presentation

17 December Business Presentation

North America EICDataStream

North America EICDataStream

Online

Online

9 December Overseas Delegation

9 January Business Presentation

Angola

Business Opportunities with PEEL

Luanda

Thornton Science Park, University of Chester

10 December Management Course

16 January Business Presentation

EICDataStream/AssetMap training Online

11 December Regional Showcase

EIC Open Day Wood, Darlington

Digitally Enabled Workforce Petrofac, Aberdeen

27 January Overseas Delegation

Nigeria Lagos

27 February 2020 • Mexico City

CONNECT Mexico Energy Forum Sign up for the EICOnline newsletter

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EIC (Energy Industries Council)

19

20

Overseas events Join the UK National Pavilion

If you are looking to take the first step into the world of overseas exhibitions or even if you are an ‘old hand’, joining the EIC UK Pavilion might be your best route.

Why exhibit as part of the UK Pavilion?

Exhibiting as part of a country pavilion provides additional support to individual companies looking to take part in the larger exhibition. Joining the UK group offers stronger networking opportunities with a VIP networking reception, ‘meet the buyer’ sessions and buyer pavilion tours.

Camilla

Tew

With a dedicated project manager to assist prior to the show and onsite, an appointed expert freight partner and stand designer, our experienced organisation will allow you to focus on winning new business.

The extended pavilion will offer its own coffee/refreshment area, plus you have the use of the exclusive group lounge in the main pavilion where you can bring clients or network with other exhibitors. We also provide promotion of the group through various publications/press releases and entry for each exhibitor in the Guide to UK brochure. The EIC team onsite will also help facilitate meetings and introductions.

Camilla Tew, Head of Overseas Events camilla.tew@the-eic.com What’s coming up?

2019 Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC)

Booking Now

11 – 14 November

Abu Dhabi, UAE

UK Pavilion

Wind Europe Offshore

Booking Now

26 – 28 November

Copenhagen, Denmark

UK Pavilion (RenewableUK)

EGYPS

Booking Now

11 – 13 February

Cairo, Egypt

UK Pavilion

Wind Energy Expo & Conference Japan

Booking Now

26 – 28 February

Tokyo, Japan

UK Pavilion

Asia Pacific Wind Energy Expo

Register Interest

3 – 5 March

Taiwan

Exhibition

Australia Oil and Gas

Booking Now

11 – 13 March

Perth, Australia

UK Pavilion

IPF (Business Network for Offshore Wind)

Register Interest

20 – 23 April

Rhode Island, US

UK Group

Offshore Technology Conference (OTC)

Booking Now

4 – 7 May

Houston, US

UK Pavilion

World Nuclear Exhibition

Register Interest

23 – 25 June

Paris, France

UK Pavilion

Offshore Northern Seas

Register Interest

31 August – 1 September

Stavanger, Norway

UK Pavilion

Rio Oil and Gas

Register Interest

21 – 24 September

Rio de Janeiro, Brazil

UK Pavilion

2020

WindEnergy Hamburg

Register Interest

22 – 25 September

Hamburg, Germany

UK Pavilion

Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC)

Register Interest

9 – 12 November

Abu Dhabi, UAE

UK Pavilion

Offshore South East Asia (OSEA)

Register Interest

24 – 26 November

Singapore

UK Pavilion

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

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21 21

UK and Europe news Regional update

The UK events team have had a very busy start to the 3rd quarter with the launch of our LNG Showcase in London.

The showcase heard from key players Shell, KBR, Jo Cam pbell DNV GL, McDermott and Babcock. EIC’s Energy Analyst, Tayo Idowu, discussed the future of the LNG market and focused on major projects under development, while Mike Deeks, Agent General for Western Australia (WA), presented on the opportunities in WA as the largest exporter of LNG, and how the UK supply chain can access this market. The showcase was also kindly sponsored by SICK, MSA, Pepperl+Fuchs and Babcock.

We also hosted three webinars and regional panel sessions across the UK, aimed at supporting the supply chain to be aware of the changes that will come about as a result of Brexit, and to be as prepared as possible for changes in regulation, law and logistics.

In the UK alone, the offshore oil and gas decommissioning sector will be worth £15bn over the next decade. The UK’s nuclear legacy at Sellafield offers a vast programme of work extending to 2120.

The offshore wind industry is beginning to look at other markets for synergies to shape future strategies. Kerrie Madden managed our Cross-Sector Decommissioning Showcase on 29 October in Sheffield. The event had a great speaker line up and highlighted specific new business opportunities in the oil and gas, nuclear and wind sectors.

Following the success of last year’s hydrogen showcase, the EIC has partnered with Mott MacDonald to bring together the key players within the industry. This event will be held on 7 November in Manchester and will discuss how hydrogen is set to transform the UK’s energy market, understand the innovation required to make the vision a reality, while presenting on the numerous opportunities. If you think hydrogen may hold opportunities for your company and want to learn more, book now to attend www.the-eic.com/EventDetail?dateid=2550 With all our events we have the perfect platform and opportunity for you to put your company front and centre.

To find out more about sponsorship and exhibiting, please contact caitlin.henderson@the-eic.com Jo Campbell, Head of UK & Europe jo.campbell@the-eic.com Sign up for the EICOnline newsletter

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Forthcoming events

Hydrogen Showcase Thursday 7 November 2019, Manchester

Energy from Waste Showcase Wednesday 4 December 2019, Liverpool

Digitally Enabled Workforce with Petrofac Thursday 16 January 2020, Aberdeen

Regional news

UK and EU receive helping hands for offshore wind

With offshore wind’s annual installations expected to grow from 4.3GW to 19.1GW by 2028, the sector has recently seen boosts to its future development in the UK and Europe. As well as the Contract for Difference awarding support for 5.5GW of UK projects, the Crown Estate launched its Round 4 wind leasing competition for the rights to develop at least 7GW off England and Wales. Seven German wind industry associations called for more capacity to be added to Germany’s allocated offshore capacities, to help reach their 65% renewable energy target by 2030. Following months of discussions, the government provided consent to increase its capacity targets from 15GW to 20GW by 2030. In France, renegotiated subsidy prices were approved by the EU Commission for the French Round 1 and 2 farms. This included the 496MW Saint-Brieuc project receiving €155/MWh, 480MW Saint-Nazaire project with €143.6/MWh and 450MW Courseulles with €138.7/MWh.

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

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EIC (Energy Industries Council)

22

Middle East news Regional update

Following on from last years successful venture to Africa Oil Week (4-8 November) we are once again planning to attend what is described as the key meeting place for Ryan M cPhers on Africa’s most senior E&P stakeholders. Please let me know if you’ll be in town where I’d be happy to chat over a coffee.

ADIPEC continues to dominate the month with our largest attendance on record covering over five pavilions, representing over 100 UK companies, which is a tremendous achievement illustrating the strength of the UK supply chain. Any EIC members who are not exhibiting on the stand are welcome to drop by and we wish you all have a great show.

On an extremely proud note the EIC continues to break records with the largest UK trade delegation to Kuwait taking over 50 UK supply chain companies as part of our inaugural Connect Energy Kuwait event in September.

Delegates heard from Kuwait Oil Company (KOC) as well as major EPC contractors active in the country including Wood, Petrofac and Mott MacDonald, during project briefing sessions and met with procurement specialists and buyers during private one to one appointments.

Kuwait Oil Company presented to delegates its strong pipeline of energy project opportunities to the value of US$500bn over the next five years as it aims to boost its crude oil production capacity.

Of significant international news, Saudi Arabia’s production dropped by almost half after attacks targeted an oil stabilisation facility in Abqaiq in Saudi Arabia as well as the Khurais oilfield, located 200 kilometres south-west. The incident took 5.7 million barrels per day of Saudi output offline, the equivalent of 5% of global supply. The outage was the biggest supply shock to the global oil markets, according to the International Energy Agency, superseding similar volumes during the 1979 Iranian revolution and the 1991 invasion of Kuwait. Oil prices initially jumped by 20%, its biggest percentage rise in almost 30 years, before surrendering gains.

On a final note we have successfully delivered our overseas trade delegation to Mauritania and Senegal; representing a new, emerging oil and gas market within offshore West Africa. This will shortly be followed up with a further delegation to Angola from 9-12 December 2019, further details can be found on our website www.the-eic.com/Events/OverseasDelegations/Angola Ryan McPherson, Regional Director, Middle East, Africa, Russia & CIS ryan.mcpherson@the-eic.com Get in touch Share your news and views...

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Regional news

Iraq signs agreement with Mass Group and GE for 1.5GW IPP

The Iraqi government, Mass Energy Group Holding (MGH) and GE Power have announced that they would add as much as 1.5 gigawatts (GW) of generation capacity to the Besmaya power plant near Baghdad. Besmaya, already Iraq’s largest power station, will receive four 9F gas turbines from GE Power to bring its capacity to 4.5GW, enough electricity to supply up to 4.5 million Iraqi households.

MGH will supply electricity from the new extension of the plant to the Iraqi Ministry of Electricity under a 20 year power purchase agreement (PPA). Besmaya Phase 3 is the largest power plant by output to be added to Iraq’s national grid since 2014. MGH and GE earlier brought up to 4GW of power online in the Kurdistan region of Iraq through the Erbil, Duhok and Sulaymaniyah power plants.

Carbon Holdings to build a new ammonia plant in Egypt Maire Tecnimont SpA subsidiary Tecnimont SpA has signed with Egypt Hydrocarbon Corporation, a subsidiary of Carbon Holdings, a preliminary EPC contract related to the implementation of a new ammonia plant in Ain Sokhna, Egypt, near Suez.

The plant will have a capacity of 1,320MTPD and will use KBR technology. The new facility will be built adjacent to the existing ammonium nitrate facility.

Tecnimont’s scope of work concerns execution of engineering, supply of all equipment and materials and construction and erection works. The project, worth an estimated US$500m, is expected to be completed in 36 months from financial closing.

Forthcoming events

Please go to page 18 to see upcoming events in your region

23 23

Asia Pacific news Regional update

In October we held our second EIC Connect event this year, this time in Seoul, South Korea. In partnership with the Department for Azman International Trade in Seoul, Nasir a total of 25 speakers were invited from the nuclear decommissioning, renewables, power and oil and gas sectors. Speaking companies included organisations such as the Korea Energy Agency (KEA), Korea Power Company (KEPCO), Korea Shipbuilding Association (KOSHIPA) and Korea Nuclear Power Association (KNPA). Other speakers were from large oil and gas and marine EPCs such as Samsung Heavy Industries (SHI), Daewoo Shipbuilding & Marine (DSME), Hyundai E&C, Daelim E&C and Doosan Heavy Industries. 150 attendees from our members in the region and the local energy players from South Korea were in attendance. The event was officiated by the British Ambassador to South Korea. For the first time in our series of country-focused Connects, we had a specific session on nuclear decommissioning with four speakers from the Korean nuclear industry. It was also the first EIC Connect event in Asia Pacific where two-thirds of the speakers were from the power and renewables sectors.

Also in October, we organised a business presentation with three speakers. They were Neil Golding, EIC Head of Oil & Gas, Juzer Norman from IEV and Siti Syafika from Petronas. Topics presented were mainly on global offshore decommissioning opportunities within the Asia Pacific region. We were happy to receive 60 delegates for this event, including member companies from Singapore and Aberdeen.

For November we are planning two events, namely Brunei Opportunities and an event to be co-organised with the Malaysian Oil & Gas Services Council (MOGSC) entitled Opportunities in New Energy. Among speakers targeted for this event include Petronas New Energy Division, Equinor of Norway and regional renewables companies. We are also planning a business presentation with another PETRONAS speaker, this time from Group Technical Solutions, who will speak on costs evaluation and engineering solutions in the upstream business. Petronas’ Group Technical Solutions is the department in charge of innovative engineering and technical solutions for exploration and production activities. EIC members with products and services that fit the bill are encouraged to attend this event in order to meet the relevant people from Petronas.

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

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Regional news

Oceaneering wins subsea umbilical control system for the Krishna Godavari block

Oceaneering has been awarded a contract from Baker Hughes GE (BHGE) to supply subsea umbilical control systems for Oil & Natural Gas Corp (ONGC) KG-DWN 98/2deepwater development in the Bay of Bengal off India. The work scope includes the subsea umbilical control systems to allow production of gas from fields U and R, and oil from fields A, P and M. The contract award includes design and manufacture of 44 electro-hydraulic control umbilicals, totalling around 118km in length, delivered on a combination of reels and carousels. Manufacture of the umbilicals is scheduled to take place at Oceaneering’s facility in Rosyth, Scotland and is expected to commence in Q3 2019 and be completed in Q1 2021.

Balikpapan refinery awarded contract for onshore and offshore pipelines A consortium of China Petroleum Pipeline Engineering and Hutama Karya has been awarded a contract worth US$262 million from Pertamina to build onshore and offshore pipelines for its Balikpapan refinery upgrade. Under the deal, the contractors will build a 13.8km pipeline, 52 inches in diameter off East Kalimantan and a 6.5km onshore pipeline. The contract also involves building a single point mooring with a capacity of 350,000dwt and two storage tanks each with a capacity of 1MMbbl.

Pertamina is still working to secure a partner for the Balikpapan refinery expansion, hinting that a South Korean company could be the front-runner.

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

@TheEICEnergy

EIC (Energy Industries Council)

24

North and Central America news Regional update

We have had a busy couple of months from highlighting how to do business in Mexico, hosting EIC Connect Oil & Gas USA, promoting the UK supply chain to US offshore wind developers, to welcoming Amand a Duho n BP’s project quality team from the BP Mad Dog Phase 2 project in October; the fall season will continue to bring forward valuable opportunities for EIC members in the region.

If you are looking to expand in the North and Central America region, then you may want to take advantage of the EIC’s LaunchPad services and/or EICConsult.

For further information, please contact me.

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

Forthcoming events

EICDataStream Overview Fortnightly, EIC Houston

EIC Corporate Entertainment: Houston Rockets Wednesday 13 November 2019, Houston

EIC Business Presentation with McDermott Thursday 21 November 2019, EIC Houston

SAVE THE DATE Offshore Wind Sector Showcase Tuesday 28 January 2020, EIC Houston Get in touch Share your news and views...

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Enbridge, NextDecade enter MoU for Texas LNG

NextDecade Corporation and Enbridge Inc have entered a Memorandum of Understanding (MoU) to jointly develop the Rio Bravo pipeline – as well as other natural gas pipelines in south Texas – to supply NextDecade’s Rio Grande LNG project in Brownsville. The US$500m project includes two parallel 42in, 225km feed gas pipelines with a total capacity to transport up to 4.5Bcf/d from the Agua Dulce area to Rio Grande LNG. © 2019 GENERAL ELECTRIC

This month we look forward to hosting our corporate entertainment event of the year at the Houston Rockets.

We initiated this event last year to celebrate the EIC’s 75th anniversary with over 70 delegates and look forward to the same fun and networking opportunities this year.

Don’t miss your chance to high-five the teams! Later this month, we welcome McDermott to the EIC Houston office for a business presentation. Speakers from McDermott will cover the entirety of the North and Central America region, as well as be available to discuss activity in South America. Seats are limited for this members-only closeddoor event. And as we approach the business planning period of the fiscal year, be sure to include some of our upcoming events in the diary such as the Onshore Wind sector showcase and EIC Connect Mexico Energy Forum which will kick off the 2020 calendar year.

Regional news

GE lands milestone Haliade-X deal

GE Renewable Energy has been named the preferred bidder for a contract to supply its 12MW Haliade-X turbines for Ørsted’s planned 120MW Skipjack and 1.1GW Ocean Wind projects offshore Maryland and New Jersey, respectively. The award marks GE’s first contract award for the model. The deal is subject to receipt of all necessary project approvals and a final signed contract.

Forthcoming events

Please go to page 18 to see upcoming events in your region

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South America news Regional update

On 19 September the EIC Rio office hosted the Business Presentation: Opportunities with Worley & Enaval.

A 50:50 joint venture, combining Worley’s global engineering and brownfield Clariss e Roch a capabilities with Enaval’s fabrication services and facilities, will provide world-class brownfield engineering, procurement and construction (EPC) and maintenance, modifications and operations (MMO) services from concept to closeout to the Brazilian oil and gas industry.

Mr Adriano Rodrigues, Business Development Director from Enaval and Mr Mário Uchoa, Operating Manager from Worley, explained they are not merging into a new single company, but joining up to focus on Brazilian offshore projects. They are the point of contact to schedule a meeting, present solutions and register as a supplier to their vendor list. Get in touch with us if you would like more details. The Rio team thanks the speakers for excellent presentations.

Regional news

ExxonMobil becomes leading player in Sergipe-Alagoas basin

The IOC has become the operator with the highest number of offshore concessions in the SergipeAlagoas basin, located in north-eastern Brazil.

The company now operates nine blocks in the area, overtaking Petrobras which operates seven blocks in the same basin. ExxonMobil ascended to the position of leading player in the area following the acquisition of three blocks at the first ‘permanent offer’ bidding round that took place on 10 September. Under this initiative, the Brazilian National Petroleum Agency (ANP) offers blocks which failed to attract bids is past rounds or were relinquished by their former operators.

Forthcoming events

EIC South America is preparing exciting initiatives for November. For the first time in partnership with The Brazilian Machinery Builder’s Association (ABIMAQ), we will run an event on how Brazilian suppliers can succeed in exporting and internationalising their brands. The British Government and The Brazilian Trade and Investment Promotion Agency (Apex Brasil) will explain more about what tools are needed to reach markets abroad. The event will take place in ABIMAQ’s headquarters, in São Paulo, on 4 November.

Another great initiative regarding new opportunities is the Business Presentation: Opportunities with Enauta. The company is a key independent player in the Brazilian oil and gas industry and has a vast portfolio of E&P assets, acting as operator or in partnership with other companies.

The only private company operating in the pre-salt area will deliver a presentation at the Rio office on 12 November.

Finally, the schedule also includes the workshop: Fundamentals of FPSOs, on 13 November. The workshop provides attendees with a general understanding of floating, production, storage and offloading (FPSO’s) considering main implementation, project and building aspects.

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

Petrobras sells four additional refineries

The Brazilian oil major has released teaser documents for investors interested in acquiring a second batch of refineries across the country. Units for sale include REGAP in Minas Gerais, REMAN in Amazonas, the Lubnor lubricants plant in Ceará and the SIX oil shale processing plant in Paraná, in addition to the infrastructure associated with these facilities (eg storage terminals). The sale is the latest step by Petrobras to advance its divestment programme, which aims to optimise the company’s portfolio by focusing on core E&P projects.

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EIC Survive & Success stories

Volume III

EnerMech

Successful diversification and improved service approach minimised the downturn impact How is EnerMech thriving?

EnerMech tackled the O&G downturn head on by diversifying into the liquefied natural gas (LNG), refining, infrastructure and nuclear sectors, which included developing its smart System Integrity Management (SIM) technology and adapting the company’s service approach to offer long-term, customer-centric contract models that share risk and align objectives.

The challenge Like many businesses EnerMech was impacted by the recent downturn in the oil and gas industry. Its UK business bore the brunt of the deflated market, leading to a realignment and downsizing, with staff numbers unfortunately reduced. EnerMech is a company which is fast-moving, resilient and has a reputation for innovation, all qualities which it relied upon to overcome the pressing challenges of the downturn and to come out the other end in good shape.

The solution Although the company had a focus

on key markets and core service provisions, in 2015 EnerMech decided to look at diversification. The aim was to strengthen the business with a wider portfolio of services and revenue streams, leveraging its vast experience of the oil and gas sector and introducing its integrated offering to new industry sectors.

After obtaining an understanding of markets and undertaking competitor analysis, the company was able to identify opportunities and gaps. This exercise led to the acquisition of the Australia and US-based EPS Group in early 2017, allowing the company

The strength of EnerMech is in the diversity of our market sectors, the depth of our knowledge and our focus on service delivery. The contracting strategies were adopting with our clients ensure that we deliver positive outcomes for both parties by adopting innovative outcome based KPI’s.

Stuart Smith, Integrated Maintenance & Integrity Director

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to tap into valuable opportunities in the LNG and infrastructure segments.

With existing relationships in the defence sector, securing a contract award from defence technology company BAE Systems strengthened EnerMech’s perspective of the potential scale of opportunities arising from diversification.

EnerMech also prioritised alignment with its clients’ strategies and goals. The aim was to deliver products and services that fully met clients’ needs. EnerMech’s approach involved the application of different contracting models, as well as the use of enhanced technologies to improve the service offering.

Also in 2017, EnerMech secured a £2m contract with a major European operator to assure quality control on the hook-up of a bridge-link between two platforms in the North Sea. Using its SIM technology, a bespoke software package developed inhouse, the company was able to track joint integrity in real-time through commissioning and start-up, providing the client the assurance of each flange’s status.

Success stories EIC Survive & thrive III

EnerMech’s approach was fully aligned to the operator’s goals. The company gave a leak-free guarantee for the joints, a commitment linked to project KPIs. EnerMech took a wider view of the scope of work, looked at whole system integrity and took ownership of the complete joint system in order to ensure leak integrity until leak tests were finished. The company’s excellent performance earned it additional opportunities with the operator.

Working alongside the operator’s employees, and on the back of the initial contract success, EnerMech now does all the work for these two North Sea assets.

Growing its revenues from zero as a start-up business to £450m in 10 years, (UK revenues in 2018 are forecast to be £88m) EnerMech is scaling-up again. While 95% of the company’s total revenues were associated with oil and gas prior to the downturn, today sectors such as

Story type #digital, #diversification, #innovation, #service/solutions, #technology

defence, LNG, refining, infrastructure and nuclear make up 25% of revenues. EnerMech’s successful diversification and adapted service approach, as well as the smart development of technology such as SIM to solve client problems, have been instrumental in securing key business opportunities.

About Enermech EnerMech is a global services company specialising in critical asset support across an asset’s entire lifecycle, from pre-commissioning to decommissioning. The company’s broad range of services include mechanical, electrical and instrumentation solutions, which can be provided individually or as part of a fully integrated package.

EnerMech’s capabilities are varied and the company is able to offer the appropriate tools and services, including an extensive range of cranes

• Genuine local content – offices, workshops and people – is essential to boost exports

Benefits

For government

• Increased revenues and new business opportunities • £2m contract value thanks to leakfree guarantee • Ongoing work with major European operator

• Economic uncertainty is not helpful for companies considering scaling-up

Key findings

The company has received R&D tax credits. In addition, EnerMech has benefitted from the Apprenticeship Levy.

Scaling-up lessons

• Trust intuition • Build true and lasting client relationships • Be very customer centric – tailor solutions to customer needs • Take time to understand client and what they are not able to currently get or solve

• Identify the right acquisitions

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Export lessons • Enter the right geographical markets at the right time • Follow client relationships around the world

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Headquartered in Aberdeen, EnerMech employs 3500 staff and is present in over 40 locations around the world, including Europe, the Americas, Africa, the Caspian, Middle East and Asia-Pacific.

• Have equipment and infrastructure in overseas markets, allowing the business to grow organically in their regions

Enermech at a glance:

Government support?

For industry

and lifting, hydraulics, valves, electrical and instrumentation, pipeline and umbilical, industrial, process, training, inspection, integrity and equipment rental services. Active in the whole spectrum of the energy market, the company offers services to operators, plant and asset owners, EPC contractors, subsea contractors as well as drilling contractors.

Key products and services: Integrated services provider Main industries served: • Oil and gas (upstream) – 50% • Oil and gas (midstream) – 30% • Others – 20%

Headquarters: Aberdeen, UK Year established: 2008 Number of employees: 800 (UK), 3,500 (Group) Revenue: £188m (UK), £460m (group) Revenue from exports: 80%

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Success stories EIC Survive & thrive III

Glacier Resilient and diversified business portfolio across O&G and renewables, winning opportunities in the UK and abroad How is Glacier thriving?

The resilience of the company’s diverse business portfolio across the oil and gas, and renewables sectors, both in the UK and globally, has enabled smart and fast responses to the industry downturn. Glacier has restructured and refocused, emerging stronger from the crisis.

The challenge Backed by private equity investment, Glacier was formed in 2011 following a management buy-out of two MB Aerospace companies: Wellclad and Roberts Pipeline Machining. The newlycreated company soon realised it could do more, and then proceeded to buy four additional companies: MSL Heat Transfer, Professional Testing Services, Ross Offshore and Site Maching Services, with the aim of broadening its offering and expanding its client base.

Almost immediately, Glacier saw its revenues soar to £25m.

This fast growth, however, was slowed down by the crash in oil and gas markets. New ideas for expansion were put on hold as revenues decreased: while the company’s annual revenue was £26.4m in 2015, it fell to £22.3m in 2016 and £19.5m in the following year. Although profits remained robust and investors showed

faith, Glacier, like most of its peers in the oil and gas industry, was in ‘survival mode’ and recognised that it had to restructure if it wanted to remain strong and grow.

The solution Glacier had a sense of urgency and knew it had to look at ways to survive.

The company quickly took steps to revert its losses: layoffs, pay cuts and facility consolidation played a key role in reducing overhead costs. The company also decided to take the industry downturn as an opportunity to properly integrate all the businesses it had acquired since 2011. This involved

We recognised the need to diversify into new sectors and geographic markets to survive the downturn, and believe we have created a more robust, international, energy services group as a result.

Scott Martin, Executive Chairman

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the implementation of improved business systems in addition to a more consistent sales and marketing effort, focusing on the Glacier brand.

Glacier also realised that diversification was key to overcoming the industry downturn. The company had four core offerings, which made it a naturally diverse group. In addition, it was not overly reliant on any particular market or sector, which proved invaluable during the crisis. Glacier looked at its portfolio and focused on opportunities beyond oil and gas. The company benefitted from excellent technical expertise in providing engineered solutions, which ensured it was able to react to new customers’ needs. Glacier’s early acquisition activity had exposed it to the renewables sector, helping to accelerate its diversification: in 2014 Glacier did not generate any revenue from this sector; by 2018 it was responsible for 44% of total earnings.

Diversification also entailed new acquisitions. In late 2018, Glacier acquired Whiteley Read Engineering, a respected brand in the design and

Success stories EIC Survive & thrive III

manufacture of pressure vessels.

This transaction enabled Glacier to tap into larger CAPEX projects in the up and downstream markets, but the acquisition also had a strategic purpose: it allowed Glacier to integrate its operations in Birmingham into Whiteley Read’s Rotherham facility.

Each of the units was making £2m in revenues but were both loss-making.

Their integration, however, along with tapping in to Glacier business development function, will facilitate an increase in combined revenues to £5m in just six months with profits forecast for the next financial year.

After what has been a challenging period for the industry, the company is in a strong position and is back in growth mode, with a 28% revenue increase in 2018. It is once again back

Story type #diversification, #optimisation

Benefits • Revenue growth of 28% in one year following two consecutive years of decline • Successful diversification to renewables: from 0% to over 40% in four years • Company acquisition and subsequent integration with existing facility allowed £1m revenue growth in six months

to Plan A: achieve further growth and then raise capital to embark on further acquisitions.

About Glacier Glacier Energy Services is a specialist provider of services, products and engineered solutions for energy infrastructure around the world.

This includes engineered on-site machining solutions (benefitting from world-renowned Roberts pipecutting capabilities), non-destructive testing (NDT) and inspection, the design, fabrication and repair of heat exchangers and pressure vessels as well as weld overlay and fabrication solutions.

Originally formed in 2011 following a management buyout of Roberts

Pipeline Machining and Wellclad, Glacier went on to acquire another six companies – Whiteley Read being the latest - to boost its portfolio in the oil and gas (upstream and downstream) and renewables sectors. In addition to its headquarters in Altens, close to Aberdeen, Glacier also has offices in Glasgow, Methil and Rotherham.

For government

Culture change lessons

• A more proactive approach is needed to help SMEs succeed • Government should be aware of working capital challenges faced by suppliers in the process of entering new markets

Government support?

Glacier has joined trade delegations and is account managed by Scottish Enterprise. The company has also benefited from the Apprenticeship Levy.

• Acquisition of new businesses is a key driver for culture change • Companies should adopt a more upfront approach when assessing culture change

Glacier at a glance: Key products and services: heat exchangers and pressure vessels as well as NDT and inspection, on-site machining and weld overlay services Main industries served:

Key findings

Export lessons

For industry

• There is a high cost associated with exporting. It takes planning, research, travel and time • Test market opportunities before fully committing to exporting

• Act quickly and decisively when downturn hits • Results from diversification may take longer than expected and companies should avoid the temptation to abandon efforts • Lots of communication is needed with stakeholders, especially in times of crisis

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• Upstream O&G – 60% • Renewables – 30% • Downstream O&G – 10% Headquarters: Altens, UK Year established: 2011 Number of employees: 200 Revenue: £25m Revenue from exports: 60%

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Success stories EIC Survive & thrive III

HKA Smart use of data to reduce engineering and construction disputes How is HKA thriving?

HKA’s CRUX research programme has enabled the company to boost its reputation as a thought leader in the dispute resolution sector. By capturing and analysing data from hundreds of project disputes, CRUX identifies key findings and causes, eliminating the ‘simplicity myth’. The programme has given clients the opportunity to obtain innovative predictive insights, helping them reduce the prevalence and severity of disputes occurring on their projects.

The challenge HKA recognised it was ‘data rich but information poor’ and embarked on a programme of change. As dispute resolution experts, HKA has global exposure to some of the world’s most complex projects and the myriad of issues that can arise. In the course of delivering its services, the company aggregates an enormous amount of deep, broad and valuable data. The challenge was to transform this data into intellectual property and valuable insights that assist clients and the broader industry.

It was felt that the complexity of dispute causation was generally underestimated in the literature and by the market, which HKA coined the

simplicity myth: the tendency to over simplify claim and dispute causes. This is compounded by a lack of quantitative and qualitative data, which can be attributed to items such as short-termism, overconfidence in project controls and failure to implement lessons learnt.

The solution HKA determined that mining its ever-expanding data could help clients and industry better understand causation.

Tackling the simplicity myth would enable better planning, potentially helping organisations reduce the prevalence or severity of claims or disputes.

In December 2016, the company initiated the CRUX programme.

The company aggregates an enormous amount of deep, broad and valuable data. The challenge was to transform this data into intellectual property and valuable insights that assist clients and the broader industry.

Renny Borhan, CEO

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Formed to capture both tangible and intangible knowledge across HKA’s operations through digitalisation, its objective was to apply data science to derive value not only for HKA and its clients, but the wider industry. The aim was to allow the industry to better manage risks and uncertainty in order to achieve successful business outcomes.

The first CRUX insight report titled Claims and Dispute Causation: a Digital Perspective, was published in November 2018. Its findings have reignited global debate and generated significant interest, with requests for targeted analysis on EPC contracting from the energy industry.

Most importantly, the programme –

Success stories EIC Survive & thrive III

which plans to collect data on 1,500 projects by 2020 – has reiterated how digitalisation can reduce the cost of claims or disputes, especially at a time when productivity, efficiency and competitiveness are increasingly important.

CRUX revealed truths and challenged common misconceptions. After collating and analysing data and objective expert opinion on 257 projects valued at more than US$400bn, where HKA provided claims consulting and dispute resolution services, the research revealed an average of 13 interrelated causation factors per project (with several projects amassing 39 causes).

On average, there were seven major causes and six secondary causes, debunking the simplicity myth.

the analysis of the interconnection between causes to provide even deeper insight.

CRUX has proven to be strategically significant. It positions HKA as a thought leader and has allowed the company to engage earlier and more frequently with existing and new clients to assist with avoiding, as well as resolving, disputes. The programme has also strengthened relationships with key accounts through the sharing of deeper and targeted CRUX insights and has generated intellectual property adding to business value. These benefits are expected to grow as the data expands year on year.

company anticipates, investigates and resolves project disputes, allowing the best possible outcomes for clients in the public and private sectors.

HKA has over 900 professionals operating from 39 offices in 19 countries across the world. It has over 40 years’ experience in dispute resolution and was formed as an independent company in 2017.

The programme undergoes continual development. In 2019, HKA is refining the causation taxonomy, improving sector granularity and extending

HKA is one of the world’s leading providers of consulting, expert and advisory services for the engineering and construction industry. From construction and manufacturing to processes and technology, the

HKA was named Construction Expert Witness Firm of the Year at the Who’s Who Legal Awards in 2018 and topped the list of WWL Construction 2019: Expert Witness Analysis and ranked number one in the Global Arbitration Review Top 100 11th Edition Expert Witnesses for the number of construction arbitrations a firm has undertaken.

Story type

Key findings

HKA at a glance:

#digital, #innovation

For industry

Key products and services: consulting and advisory services

Benefits

• A holistic approach to dispute avoidance is required to address causation complexity • Embracing digitalisation can result in dispute avoidance by proxy • Corporate data is a valuable commodity

• Recognition as thought leader in the industry • Strengthened relationships with key accounts • Intellectual property creation • New business opportunities

About HKA

For government • There are common causes of dispute on public sector projects worldwide • The private sector is using causation data to reduce risk and grow margins

Main industries served: • PNR – 20% • Oil and gas – 13% • Others – 67% Headquarters: Warrington, UK Year established: 2017 Number of employees: 900 (205 in the UK) Revenue: US$179.5m (US$45.5m in the UK)* unaudited and therefore subject to change Revenue from exports: 0%

Government support?

The company has not received any type of government support.

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Success stories EIC Survive & thrive III

Hughes Safety Showers Zero Power Cooling system for emergency tank showers How is Hughes Safety Showers thriving?

Collaborating with an industry partner, Hughes has developed an innovative cooling technology for emergency safety showers which does not require the use of electricity and fully meets industry standards. An ideal solution for remote areas, Hughes’ new product allows up to 30% CAPEX savings and completely removes the need for maintenance, with performance assured under a 20-year guarantee.

The challenge Safety is crucial for any business, particularly in hazardous industrial areas. Such environments require specialised emergency safety equipment, which must adhere to strict international standards. When it comes to emergency safety showers, for example, international regulations mandate firm requirements around the water that is used, which must be made available within a certain temperature range.

Water must be cooled to prevent potential scalding of the shower user, and this creates a challenge for companies operating in certain areas.

There are places with exceedingly high temperatures or remote/undeveloped locations where power supply is scarce. This creates cost pressures

for operators and developers, which demand more efficient and environmentally friendly cooling solutions for their projects.

The solution Hughes’ answer to this challenge was born out of collaboration. A few years ago, the company was approached by Celantel, an Italian expert in passively cooled shelters, who saw an opportunity to adapt its technology to Hughes’ safety showers.

The two companies had a brainstorming session on how to develop a tank cooling system which did not depend on power but still met industry safety standards. No such product existed in the market, creating an innovative new solution that ensures the safety of employees.

This cooperation led to the development of the Zero Power Cooling (ZPC) system for emergency tank showers. The innovative product features a passive cooling system which requires no electricity to work.

This technology has been developed and tested, ready for future demand and requirements in this area and ensuring that safety remains a top priority for Hughes and our customers.

Kiran Damji, Product Manager

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During the night-time, the system’s convection process draws heat out of the water tank, reducing water temperature to required industry levels. During the day, the external exchanger is heated by solar radiation and the coolant no longer circulates. This causes the coolant in the system to stratify, keeping hot water on the top and cooler water below, preventing the water in the tank from heating up.

In 2018, the company had its first ZPC production unit ready for testing. Using contacts at Saudi Aramco obtained at ADIPEC, Hughes was able to mobilise the prototype to the Khurais oil field in Saudi Arabia for a testing campaign, which took several months.

After a successful trial, the prototype demonstrated its effectiveness when installed on the gravity-fed tank shower: after only 16 hours, the water temperature inside the tank achieved an adequate safety level to be used in the emergency shower. Withstanding day-time temperatures of nearly 55C, ZPC successfully maintained the water temperatures well within the required ANSI Z358.1 regulation for emergency safety showers, which requires water to be within the 16-38C temperature

Success stories EIC Survive & thrive III

range. This was achieved without use of a power source, making the solution ideal for any location where there is a requirement for a safety shower. Further prototypes were produced, and in 2018 TÜV provided third-party certification for the product – confirming its complete adherence to safety and compliance standards.

ZPC was formally launched to markets in September 2018. The product, which is patent pending, has clear commercial advantages: its cost is 30% lower than chiller cooled emergency safety tank showers. There are no maintenance costs involved, with ZPC-equipped showers supported by a 20-year lifetime guarantee. As a zero-power solution, the product does not require any power infrastructure, which reduces costs and contributes to a reduction in carbon footprint.

Considering conventional requirements in large facilities, Hughes estimates that its solution can save up to £1m per typical project*.

As temperatures rise and CO2 reduction requirements increase, measures like Hughes’ ZPC will make a big difference to customers in coming years. This innovative technology collaboration with Celantel, has been developed and tested, and is now ready for future market demand and requirements.

Developed by an industry leader in emergency showers, Hughes’ new ZPC solution ensures that safety remains a top priority for the company and its customers. * Based upon a 30% saving when compared to a tank shower with flameproof chiller on large sites.

About Hughes Safety Showers Established in 1968, Hughes Safety is Europe’s largest manufacturer of emergency safety showers, eye and face wash and decontamination

Story type

Key findings

#collaboration, #innovation, #technology

For industry

Benefits • CAPEX and OPEX savings of up to £1m on large sites* • Zero OPEX costs • Solution reduces carbon footprint

equipment. The company’s varied portfolio includes indoor and outdoor emergency showers, including temperature-controlled solutions. A selection of the company’s emergency showers is also available for hire.

Hughes also carry out servicing and repairs and conduct site inspections to assess condition and suitability of safety equipment. In addition to its headquarters in Stockport, UK, Hughes has offices in Canada, Germany and in the US. Hughes Safety Showers is part of the Justrite Safety Group, a USbased group of companies dedicated to supplying industrial safety and environmental spill containment products.

Hughes Safety Showers at a glance:

• Do not stand still, as market is constantly changing • Listen and speak to customers • Keep your brand relevant and in the spotlight through innovation • For exporters, good relationships with local partners is essential For government • The government should stepup support to cost-efficient, environmentally friendly solutions for the energy sector • Support with tariffs and certificates required on overseas projects

Key products and services: manufacture of emergency safety showers and decontamination equipment Main industries served: • • • •

Industrial – 35% Processing – 20% Oil and gas – 35% Power – 10%

Headquarters: Stockport, UK Year established: 1968 Number of employees: 85 Revenue: £14m Revenue from exports: 65%

Government support?

Hughes Safety Showers has received R&D tax credits.

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Success stories EIC Survive & thrive III

KBR Engineering the future across a diverse range of smaller energy projects How is KBR thriving?

Benefitting from an innovative team culture, KBR’s Project Solutions division, established in late 2016, is thriving with a turnover that has increased fivefold and providing agile solutions for a diverse range of energy clients across the world.

The challenge A global engineering consultancy with a vast track record, KBR has always thrived on big energy projects. In 2017, however, the industry downturn led to reduced capital spending by the big players in the energy sector. Major greenfield projects were scarce so KBR took the opportunity to diversify in to segments outside of its normal sphere of operations.

The solution KBR’s Project Solutions division was created to allow diversification into other business areas to pursue new clients and projects.

The new division would deliberately focus on smaller projects below an internal ceiling based on contract value and in markets that fell outside the company’s usual interest. This included venturing into industry segments such as renewables and marine as well as into geographical areas such as the

UK, continental Europe and the Middle East. KBR’s brand, structure, global presence and experience would help its new division start off with a small amount of work to assess business potential with new clients and sectors.

New strategies often face obstacles and KBR Project Solutions was no exception. The division only had a small budget to start with and, during the early days, it adopted an agile approach to develop new ways to prepare marketing material, bids, cost estimates and manage small projects.

KBR Project Solutions learned the importance of brand and promoting the idea that it could work in new areas, developing relationships as well as being responsive and engaging with companies for small scopes of work.

Launching KBR into the alternative energy and innovation sphere has been a great learning experience, allowing KBR to adopt a culture of openness to change, diversification and agile project management.

David Cole, KBR Project Solutions Manager

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From 2017 to 2018 the turnover increased by fivefold by developing into new renewables markets, developing working relationships with key clients, developing a brownfield capability and the ability to be agile to react to client.

This has even included responding quickly to support a client impacted by a natural disaster situation. These small opportunities have opened up further batches of work, which have unlocked opportunities and work in further diversified areas that are firmly outside the core business of KBR. Another important experience for KBR Project Solutions was a feasibility study for an offshore wind HVDC platform. This helped enforced KBRs diversification into other areas and continues to raise the profile of KBR Project Solutions internally. The contract has provided an important springboard to expand KBR’s offshore capabilities and has the potential to generate future business opportunities.

The success of KBR Project Solutions’ strategy to seek opportunities beyond KBR’s usual client base is reflected in its results. KBR Project Solutions’ revenues are expected to grow by another fivefold in 2019 with 70% of

Success stories EIC Survive & thrive III

that already in booked backlog. The division has succeeded in achieving greater diversification in sectors such as renewables, digital and power grids representing 30% of its revenues.

The future plan is to continue to grow the renewables and digital side of the business to eventually to become the larger core business.

About KBR Inc.

• Government Solutions, serving government customers globally, including capabilities that cover the full lifecycle of defence, space, aviation and other government programmes and missions from research and development, through systems engineering, test and evaluation, programme management, to operations, maintenance, and field logistics

KBR is a global provider of differentiated professional services and technologies across the asset and programme lifecycle within the government solutions and energy sectors. KBR employs approximately 37,500 people worldwide (including joint ventures), with customers in more than 80 countries, and operations in 40 countries, across three synergistic global businesses:

• Technology Solutions, including proprietary technology focused on the monetisation of hydrocarbons (especially natural gas and natural gas liquids) in ethylene and petrochemicals; ammonia, nitric acid and fertilizers; oil refining and gasification

Story type

Government support?

#diversification, #innovation, #service/solutions

Only the Apprenticeship Levy.

Benefits • Revenue growth fivefold 2018 to 2019 • Successful diversification: 30% of revenues from non-O&G sectors (renewables, power grid, and digitalisation) • Repeat orders through strong client relationship

Key findings

• Energy Solutions, including onshore oil and gas; LNG (liquefaction and

For government • Better messaging is needed around engineering as a career

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Scaling-up lessons • Companies should focus on three topics: cost efficiency, relationships and quick response to bids • Strategy is needed to keep developing, and it must be updated as necessary. Companies should react fast and be open to accepting what is not working • Keep developing new innovative ideas to discuss and develop with clients

Culture change lessons • Sometimes quick decisions are needed to move project forward on schedule • Encourage teams to multi-task, learn and develop in areas that take their interest • Younger staff generally show interest in new energy sectors

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KBR is proud to work with its customers across the globe to provide technology, value-added services, integrated EPC delivery and long-term operations and maintenance services.

KBR Project Solutions at a glance: Key products and services: innovative engineered solutions for the energy sector

For industry • Diverse group of staff, good training and cultural understanding are key resources when doing business in international markets

regasification)/GTL; oil refining; petrochemicals; chemicals; fertilisers; differentiated EPC; maintenance services (Brown and Root Industrial Services); offshore oil and gas (shallow water, deepwater, subsea); floating solutions (FPU, FPSO, FLNG and FSRU); programme management and consulting services

Main industries served: • Oil and gas – 70% • Renewables – 30% Headquarters: Leatherhead, UK (KBR UK); Houston, US (KBR Inc) Year established: 2017 (KBR Project Solutions) Number of employees: 70 (KBR Project Solutions); 1,700 (KBR UK); 34,000 (KBR Global) Revenue: US$4.6m (KBR Project Solutions); US$1bn (KBR UK); US$5bn (KBR Global) Revenue from exports: 70%

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