EIC Monthly News March 2013

EIC Monthly News March 2013

Photo Ole Jørgen Bratland/Statoil

www.the-eic.com

The EIC Chief Executive

The Chief Executive Welcome to the March edition of the Monthly News. Firstly I’d like to give you an update on the EIC’s ongoing programme of improvements, as there have been some significant developments in the last month.

The EIC’s marketing team has been busy redeveloping our communication channels to ensure that they each deliver maximum value to our members. The EIC online news service has now been revamped, publishing up-to-the-minute daily news from our members and the wider energy industry, while the popular EICOnline weekly e-bulletin also relaunched last month, delivering the latest energy news and regional market insights direct to your inbox in an easy-to-read format.

I hope many of you are enjoying the refreshed EIC online news service and e-bulletin, which have both been designed as essential tools to keep members abreast of the industry – when in the office or on the move – while also providing members with a media platform to market themselves. If you would like to offer feedback on our news service, or submit a press release for consideration, please email: newsdesk@the-eic.com EICDataStream is also undergoing a series of enhancements and last month we launched the new Beta search tool, offering enhanced functionality for searching the projects database. You can find out more about this on page 4.

Moving on to upcoming events, stand bookings have now opened for the EIC’s first exclusive members’ Exhibitor Group at this year’s All-Energy renewables event, taking place in Aberdeen on 22-23 May. The EIC’s presence at All-Energy continues our campaign to provide members with a platform to drive business opportunities in this significant and growing area of the global energy industry. According to EICDataStream there are 61 offshore wind projects alone totalling nearly 58GW of capacity planned for UK waters; that represents a 39% share of the global future market based on present figures, underlining a massive opportunity for the UK supply chain in the home market.

In other markets, I am looking forward to leading an Offshore Construction Trade Delegation to Brazil in a few days’ time, as part of a wider mission organised by UKTI. The highlight of the event is on 12 March when the UK Brazil Oil & Gas Showcase will be held at the Windsor Atlântica Hotel in Rio de Janeiro. This forum event will provide a platform for delegates from UK oil and gas companies to meet with key representatives from the Brazilian oil and gas industry.

The EIC has already organised three successful Overseas Delegations this year in countries largely focused on oil and gas operations, and now the EIC Overseas Events team is busy organising a Power and Renewables delegation to Chile. This South American country has been attracting significant investment in these sectors recently as it strives to meet growing domestic demand, with business opportunities arising in the generation, transmission and distribution sectors.

An EIC delegation to Mexico is also being planned for September; if you are interested in taking part in this, please register your interest on our website: www.the-eic.com The plans for EIC Connect Oil, Gas & Power 2013 in Abu Dhabi, taking place at the St Regis Hotel on 4 June, are coming together quickly and exhibition stands have now sold out in anticipation of the speaker programme. The programme will be led by major operators and contractors from the Middle East region, who are looking to establish direct links with the supply chain in order to seek out new services and technologies for their operations. More details on the programme will follow in due course.

For those with business interests in the Middle East, it is also worth noting that EIC Consult has launched its first Insight Report on the oil and gas sector in Kurdistan, which is currently attracting significant levels of investment from major IOCs and NOCs. Along with detailed intelligence on current project activity, the report offers an understanding of the business environment in this region and an evaluation of the key political and security risks. For more information, please visit the EIC Consult website: www.eic-consult.com Finally, some of you will be looking forward to the imminent Pembroke Supper – a favourite on the EIC calendar – in South Wales. Unfortunately I am unable to attend this year but I send all attendees my best wishes and am certain that it will be a great success as always. I wish you all continuing success in 2013. Ian Stokes

www.the-eic.com

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Content

March 2013

The Chief Executive

2

Business Information

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EICDataStream

4

Training Services

5

New Members

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Members News

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UK, Overseas & Training 12 Exhibitions/National Events 13 Exhibitions & Delegations 14 Middle East News

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UK News

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Asia Pacific News

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China News

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North America News

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South America News

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National Events

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Designed and published by The EIC 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

March 2013

EIC Business Information

Business Information

Gas-fired generation in the UK, an uncertain future Cheap natural gas is changing the fortunes of many countries across the globe and it has been tipped by some commentators as the answer to the UK’s need for secure and affordable energy supply. But with energy policy undergoing the most radical change in a generation as a result of geopolitical events, the economic downturn and government policy, an uncertain future lies ahead for gas-fired power in the UK. The release of the government’s Gas Generation Strategy in December 2012 reflects this uncertainty, with forecasts and figures qualified with a myriad of ifs, buts and maybes. In truth, it would be foolish for the government to have published the document in any other way, but it isn’t necessarily helpful. Gas is acknowledged as a key component of the generation portfolio that will allow the UK achieve targets of a 34% and 80% reduction in CO2 emissions by 2020 and 2050 respectively, but how much and in what guise?

There has been much talk of a ‘dash for gas’ in the UK, with cheap domestic gas led by the shale gas boom in the US seen as an example for the UK to follow. This is the desire of Chancellor George Osborne, who calls for 37GWe of new CCGT capacity. Unfortunately, this approach is not compatible with the emissions targets. Indeed, the Chancellor himself has called for a relaxing of the targets in the 2020s to allow the investment on the scale he wants to go ahead.

Not so Ed Davey, the Energy Secretary, whose approach is based on significant, but more modest investment, with 26GWe of new CCGT capacity by 2030. This scenario is believed to be just about compliant with the 2020 target.

DECC has estimated that by 2030, the UK will need 37GWe of CCGT capacity as part of a generation portfolio comprised of renewables, nuclear and CCGT plant, with some CCS and coal-fired plant (see diagram). That is roughly 5GWe more CCGT than is currently installed. With an estimated 21GWe of planned retirement by 2030, around 26GWe of new CCGT capacity will be required to meet the demand forecasted. But what are the barriers to this investment?

The answer lies in the Electricity Market Reforms (EMR). For now, industry waits for clarification on strike prices and other key details. This has delayed investment, the opposite intention of the bill, but investment must materialise if demand is to be met. The dichotomy between the Davey and Osborne agendas has already delayed progress for CCGT. If the Treasury is stalling and resisting Davey’s 26GWe scenario, then we have a delay until at least 2015 already. This politicking is not helpful, as even a Conservative majority in 2015 would not guarantee the 37GWe desired, as it is not compliant with the emissions targets. And to try and relax or dispose of this legally-binding agreement would be incredibly risky politically speaking, with an electorate who largely supports the low-carbon agenda. www.the-eic.com

So where does this leave the UK CCGT industry?

Much depends on the details of the Energy Bill, for there is competition from other generation technologies. The arrival of Round 3 offshore wind from 2017 and the nuclear new build programme, which could deliver around 18GWe of new capacity by the mid-2020s, means there is plenty of competition for gas-fired generation. Commercial deployment of CCS, on coal or gas plant, will not be realised by 2015/16. Therefore the relative successes of nuclear, offshore wind and other renewables, in addition to the effectiveness of the energy efficiency schemes that are a key pillar to decarbonisation, will all shape the future of CCGT in the UK. This means that flexibility needs to be built in to the government’s strategy, with the best performing and most affordable technologies taking the lead.

The government needs to lead the policy debate and stamp its authority on the matter. The current lack of capital flow for large projects is in part due to the unstable economic climate, but the uncertain policy environment is also to blame and this has not been helped by the ambiguity of the Energy Bill and Gas Generation Strategy. It would seem sensible to adopt Davey’s 26GWe scenario, with flexibility built in to allow those generators that can provide cheap, low-carbon electricity in the 2020s to flourish.

This would satisfy the emissions targets and the need for a diverse generation portfolio. Easier said than done perhaps, but clarity and a sense of urgency needs to be instilled. When that happens, it will hopefully mark the start of real progress for the reform of the UK electricity market.

Oliver Hayman, Business Information Officer Tel +44 (0)20 7091 8637 Email oliver.hayman@the-eic.com

energizing your business 3

March 2013

EICDataStream

New Beta version of EICDataStream search now available As part of our continuous improvement programme a new version of the EICDataStream search page is now available and we’d encourage all users to give it a try.

You’ll notice that it has a much more modern feel. Enhancements made include: • The ability to search the entire database for keywords.

• Autocomplete on text fields.

• Simpler selecting of countries within regions and localities within countries.

• Enhanced selection of bidding activity for any range of contractors.

• Easier selection of multiple criteria.

• The ability to reproduce the last search.

• Preferences saved automatically based on the last search.

This Beta version will continue to be enhanced and we will be monitoring feedback from members, so please have your say!

The results summary and other functions are unaffected, but any questions please email: membership@the-eic.com www.the-eic.com

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March 2013

EIC Training Services

Training Services Management Course

Management Course

Management Course

Management Course

The Experienced Manager 4-5 March 2013 Inspirit Training, EIC London This course uses a range of different learning methods including questionnaires, group discussion and interactive exercises. Participants will discover their own management style and learn about other team management styles. The course will also discuss high performance teams and strategies. Attendees will develop focused coaching skills, and utilise a range of tools to modify behaviour when dealing with difficult situations.

Technical Report Writing 6 March 2013, EIC London 21 March 2013, EIC Aberdeen This course is suitable for anyone in a technical profession who needs to write reports – engineers, scientists, consultants, technicians, chemists, etc. The course will develop and improve technical report writing skills.

Delegates will undertake focused and practical writing exercises and will acquire the skills and tools required to produce effective documents that deliver a clear and succinct message.

Tendering for Success: How to Write Winning Bids 7 March 2013 Rothera Group, EIC London The course will give delegates an understanding of the bid management process and a structure which can be used to produce high-impact, customer facing tenders. The course will cover a variety of areas, including amongst others: selecting work to bid for; making it customer focused; how to sell at higher prices; and beating the competition. This course is suitable for anyone involved in writing tenders or managing bid teams.

The New Manager 11-12 March 2013 Inspirit Training, EIC London This course will bring into focus the aspects which are required to manage a team or an individual. It will enable delegates to examine their management style and understand how this style affects others in their team.

It introduces different styles and provides a range of management tools including delegation, prioritisation and giving feedback. The course is suitable for engineers and others who have recently been promoted and are required to manage others in a team leader or supervisory role.

Technical Workshop

Siemens press picture

Introduction to Compressors 14 March 2013 Siemens, Frimley This workshop has been designed for individuals who are new or are requiring awareness of compressors in the field of engineering, operations and maintenance fundamentals.

The workshop will cover the thermodynamical and mechanical aspects of single shaft compressors; the thermodynamical and mechanical aspects of gear type compressors; and the thermodynamical and mechanical aspects of axial/axial radial compressors.

HSE Training

Industry Overview

Minimum Industry Safety Training (MIST) 18-19 March 2013 Woodside Training, Humberside The OPITO Offshore Oil & Gas Industry MIST is highly recommended for all inexperienced employees who work or are considering working offshore. The MIST course is designed to introduce the fundamental safety elements of the offshore oil and gas industry to new employees, giving an appreciation of the potential hazards and controls that might be encountered by personnel offshore. Each unit has been designed to focus the delegates’ attention on their personal responsibility for safety.

The Fundamentals of Oil and Gas 20 March 2013 EIC Aberdeen The course takes the form of five modules to introduce the participants to the fundamentals of the oil and gas industry. The sessions follow the molecules through their journey from wellhead to a range of diverse applications.

This will include the search for oil and gas, its extraction, processing, transportation and refining. It will also examine where the oil and gas industry is going in terms of future developments.

If you would like further information on any of our courses or if you are interested in hosting a workshop please contact: ally.leboutillier@the-eic.com www.the-eic.com

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March 2013

EIC UK

Upstream Report 2012 Focused, cutting edge information on the UK upstream oil & gas industry. Features comprehensive analysis of current supply chain dynamics and contractor activity on the UKCS, with over 50 tables and graphs delivering a unique insight in to the UK upstream offshore sector.

Contains informed analysis of recent fiscal and regulatory changes regarding key tax initiatives, new field allowances and decommissioning tax relief proposals due for implementation in 2013 and their impact on UKCS investment and the projects market.

Includes information on 180 proposed and under construction offshore oil and gas projects worth an estimated $95 billion and a development forecast identifying future market trends and project locations.

Supplied with a unique A1 map of the UKCS with key projects, the 27th licensing round results and key energy infrastructure.

Price: £650+VAT (non-Members: £1,250+VAT) Includes electronic and hardcopy of the report and map.

Targeted, critical analysis of key issues and current events including:

• Contracting activity and supply chain dynamics • Fiscal and regulatory environment • The West of Shetland frontier • 27th Licensing Round • Drilling trends and exploration activity • UK rig utilization and day rates • Decommissioning

TO ORDER tel: +44 (0)20 7091 8612 email: phil.goddard@the-eic.com 665 www.the-eic.com or visit: www.eic-consult.com

January March 2013

New EIC Members

New EIC Members

The Nominated Representative is Mr Bill Armstrong, Sales Director. Launched in 2006, Hadar has quickly become a key player in the move towards high quality intelligent, environmentally friendly lighting. Its success in certifying the world’s first Ex LED floodlight was closely followed by specification on the environmentally sensitive Gorgon project in Western Australia. Since then Hadar has expanded globally and now has representation in over 25 countries. Hadar’s growing range and reputation is reflected in the high specification construction of their UK manufactured products. Innovative, modular and low maintenance designs incorporate the latest technologies, ensuring a comprehensive lighting product offering.

New Primary Member

BASF Plc

Earl Road, Cheadle Hulme Cheadle, Cheshire SK8 6QG Tel +44 (0)161 485 6222 Fax +44 (0)161 488 5220 Email charles.elins@basf.com Web www.basf-cc.co.uk The Nominated Representative is Mr Charles Elins, Regional Projects Manager. BASF is known worldwide for innovations in chemistry. Creating sustainable solutions in manufacturing and construction for the wind energy sector, BASF adds value, from speeding up wind tower production to increasing the lifespan of wind turbines from the foundations to the blades. Providing long-term fatigue resistance for wind towers, BASF’s proven, certified exagrouts for mounting towers on and offshore include MASTERFLOW® 9500 for large-scale underwater applications, independently tested and certified by Det Norske Veritas (DNV) to demonstrate long-term durability. BASF’s concrete admixtures for the mass production of gravity bases support sustainable production processes, decreased weight, mix design optimisation and material performance.

New Global Member

Haztek International

52 Brook Street London W1K 5DS Tel +44 (0)20 7268 2170 Email Sarra@HaztekInternational.com Web www.haztekinternational.com The Nominated Representative is Ms Sarra Chrysostomou, Business Development Manager. Haztek International® offers a comprehensive range of HSE services which can be fully tailored and integrated to suit an individual client’s needs. They regularly undertake HAZOPs, HAZIDs, SIL reviews and the writing of HSE manuals and procedures for clients. In addition they can provide and support HSE consultants on a permanent and contract basis anywhere in the world. Haztek International® has over 20 years experience in health, safety and environmental management and has been part of many major oil and gas projects worldwide. In order to successfully supply HSE professionals the team at Haztek International® has invested many years in learning their trade and understanding the roles of specialists from lead safety engineers, risk analysts and environmental managers through to site HSE advisors.

New Global Member

GT Group Limited

3 Traynor Way, Peterlee Co Durham SR8 2RU Tel +44 (0)191 586 2366 Fax +44 (0)191 587 2111 Email John.Lamb@gtgroup.co.uk Web www.gtgroup.co.uk The Nominated Representative is Mr John Lamb, GT Group Sales Director. GT Group consists of Alpha Process Controls and GT Project Engineering who specialise in supplying products and services to the oil and gas and petrochemical industries. Alpha Process Controls specialises in the safe transfer of hazardous chemicals, liquids and gases through the design, manufacture and installation of bespoke engineering systems such as breakaway couplings, drybreak couplings and emergency release couplings. GT Project Engineering specialises in the manufacture of bespoke medium to heavy fabrications and turnkey project management for the offshore and petrochemical industries. Typical fabrications include offshore loading reels, loading arms, skids, pigging systems and pressure vessels.

New Global Member

Petrolink Services Ltd

14 Bon Accord Crescent Aberdeen AB11 6DE Tel +44 (0)1224 339 339 Email michal.kanda@petrolink.com Web www.petrolink.com The Nominated Representative is Mr Michal Kanda, Sales and Marketing Manager. Petrolink is the largest independent and neutral service company to collect, aggregate, deliver, store, and visualise wellsite realtime and static data. By using industry standards (WITSML) and the adaptability to customise workflows to fit the operator’s business needs, Petrolink improves operational efficiency and decision making, while reducing costs. Petrolink real-time and static data management solutions are used by drilling and geosubsurface teams in major, independent and national oil companies worldwide, providing fast and flexible access to surface and down-hole data in order to facilitate and optimise drilling operations.

New Global Member

Hadar Lighting (A-Belco Ltd)

Jubilee Industrial Estate, Ashington Northumberland NE63 8UG Tel +44 (0)1670 814 277 Fax +44 (0)1670 858 638 Email bill.armstrong@hadar-lighting.com Web www.hadar-lighting.com www.the-eic.com

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March 2013

EIC Members News

Members News

Bifold

ABLE has successfully installed their SlugMaster® system to solve a challenging produced water application on board the Talisman Clyde platform.

Talisman Energy (UK) Ltd has been operating the Clyde platform, situated in UKCS block 30/17b some 360 kilometres east of Dundee, since acquisition of the asset from BP Exploration in January 1997. It is a fixed platform on which there are facilities for drilling, production, accommodation and the associated utilities.

The Clyde platform’s processing facilities separate production from a number of different reservoirs, exporting oil and gas via the Talisman Fulmar ‘A’ platform to the Teesside and St Fergus terminals. To meet hydrocarbon in produced water regulations, it became necessary to meter the water discharge to sea and also sea water/produced water volumetric flow rate prior to being injected back into the well reservoir.

The produced water on Clyde – containing a degree of gaseous content – was a perfect application for the ABLE SlugMaster® system. The SlugMaster system fully coped with the low back pressure observed downstream of the degasser vessel which was the defining cause of gas migrating out of solution.

The ABLE SlugMaster® uses two ultrasonic flowmetering technologies and a smart PLC to intelligently choose which technology to use, based on the process conditions. Constant metering is achieved regardless of solids and gas contamination. The change over between the two metering technologies is calculated with unique mathematical software, which enables exceptional measurement accuracy.

Talisman Metering Specialist, Baron Bennington, commented: “Environmental measurement legislation requires that operators are currently required to measure produced water volume to no greater than +/-10% uncertainty. The elimination of any significant errors in attempting to do this is very important, as an over or under measure bias would mean we were saying we put more or less water into the sea than we actually did. As the oil content is referenced to water volume this would result in over or under reporting of oil discharged to sea.”

For more information please contact ABLE Instruments: Tel +44 (0)118 931 1188 Email info@able.co.uk Web www.able.co.uk

Their relief valves are suitable for safety applications.

The Bifold pneumatic relief valves have a very high flow and low dead band. The relief valves are a safety device designed to match Bifold’s high flow filter regulators. The device will limit the over pressure to less than 110% of the set point in the event of a filter regulator mis-operation.

Some other relief valves on the market have insufficient flow to be used as a safety device in this application.

Bifold precision relief valves have very high sealing forces along with accurate and narrow dead bands allowing system design pressure to be reduced. Precision relief valves should be used in preference to sprung relief valves where there is a risk of vibration induced leakage or where dead bands are important to system performance.

Sprung relief valves typically will have a narrow dead band when tested on a static dead weight tester but will have a much wider dead band under flowing conditions that will require a significant drop in system pressure to enable the valve to reseat. For innovative and reliable valve solutions please visit: www.bifold.co.uk

Damper Technology Ltd (DTL) has announced the introduction of dedicated stainless steel fabrication facilities at their Leicester site to improve the quality and finish of the products they produce destined for corrosive environments.

Further growth has seen an increased demand for their specialist offshore products, all of which have a high content of stainless steel; therefore, they took the decision to invest in completely separate facilities for stainless steel fabrication to avoid problems often encountered with ferritic contamination which can occur when carbon and stainless steels are not completely segregated throughout the manufacturing process.

Bifold provides a wide range of relief valves for pneumatic and hydraulic instrument applications with pressures ranging from 7 to 1300 bar.

To submit articles to the Members News section, please send no more than 300 words, and a good quality photograph (preferably 300 dpi) to richard.cheatle@the-eic.com or newsdesk@the-eic.com.

Copy deadline is the first of the month for the following month – ie by 2 April for the May issue. www.the-eic.com

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March 2013

EIC Members News The decision has seen them invest in an entirely separate workshop along with dedicated tooling at their recently acquired site in Leicester, which now means that there are workshops for main fabrication, assembly and the stainless steel shop at the Thurmaston site.

Operations Director, Gary Tunnicliffe, who is overseeing the continued expansion of the Leicester site, is dealing with the day to day workings to improve efficiency and overall quality control of the products manufactured there.

Following the shift in Gary’s responsibilities, a strategic appointment has been made in the Contracts Department at the head office site in Eastwood, Nottingham, with the recruitment of a new Contracts Manager, Tony Morley.

Tony has a long career in Mechanical Engineering and is well qualified with an MBA in Business and a HNC in Mechanical/Production Engineering; he has just left the automotive sector where he led specific new projects from the planning phase through to production for a number of major car manufacturers, so he is ideally placed to oversee DTL’s project based orders at management level.

An additional Contracts Engineer, Steve Lines has also joined the projects team to add much needed resource and control to jobs currently on the order book. For more information please visit: www.dampertechnology.com

John Bradshaw added: “2013 is going to be an exciting time for the development and growth of the business. I am delighted to become a leader of the company as we take the next step of our global journey. I look forward to bringing my industry experience in both contracting and consultancy environments, to individuals and businesses, advising them on human capital strategies, as well as identifying and appointing the leaders that will enable those companies to have huge success and growth globally.” For more information, please contact Jennifer Evans, Chief Executive Officer: jennifer.evans@globalprojectpartners.com

www.the-eic.com

Rittal

As part of its continued growth and plans for international expansion, Global Project Partners Ltd has announced the appointment of John Bradshaw as Chief Strategy and Development Officer. He will additionally have responsibility as a director for GPP’s Future Executive Search division. His role will include the development of the company’s offering and services into international markets.

John has held key positions including Director & Head of Energy Business for Mace Group where he was responsible for the development and operational accountability for the energy consultancy business, successfully transferring skills across sectors. At Laing O’Rourke he was Head of Process & Energy Europe.

John also spent 13 years with AMEC where he held a number of key roles as the business expanded through acquisitions and sector growth. One of John’s key leadership roles at AMEC was the organisational development and capability of the engineering function.

He successfully pulled together teams from across all sectors to bring together the total engineering capability across the group which comprised of 2600 people.

He spearheaded communities of practice across nine sectors, over 15 geographical regions and 5 operating divisions. John has also held strategic and operational roles at Mowlem Engineering Projects, Costain and Fluor.

Jennifer Evans, CEO explained: “We are absolutely delighted to welcome John to the board. 2012 has been a year of change for us. We appointed Adrian Holles, FCA as CFOO in January, who has led us through a change and transformation programme that has enabled us to re-focus the business and its divisions, as well as attract high profile people like John to the organisation.”

Rittal’s new Industrial Liquid Cooling Package (LCP) is now available. Essentially a large air/water heat exchanger that has a chassis formed from the TS 8 frame, the Industrial LCP may be bayed directly adjacent to enclosures and used to cool installed equipment that dissipates a large amount of heat.

A technology that has its origins in high density server rack cooling in the IT sector, this product has been revised so that it is ideally suited to industrial applications. Rittal’s Industrial LCP has a compact footprint, having a width of only 300mm, providing an impressive cooling output of 10kW. Utilising water as the cooling medium has the advantage that heat may be transported away from its source using a simple pipework system. This results in the removal of heat dissipated by equipment housed in an enclosure without raising the temperature of the surrounding air.

Rittal’s TopTherm chiller is the perfect partner for the new Industrial LCP, which may be used to supply chilled water to the LCP and also has a chassis manufactured from the TS 8 frame. Both units may be bayed directly to the enclosures that require cooling, resulting in a fully integrated, packaged solution.

For those applications that demand a level of cooling in excess of that provided by conventional cooling units or air/water heat exchangers, the Industrial LCP comes as a welcome addition to the already vast range of Rittal climate control solutions. For more information please visit: www.rittal.co.uk 9

March 2013

www.the-eic.com

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March 2013

EIC Members News

The first two next-generation 6MW gearless test turbines, manufactured by Siemens, have been installed at DONG Energy’s Gunfleet Sands 3 demonstration project. The turbines were installed at the site offshore the south east coast of England using A2SEA’s installation vessel Sea Installer. The demonstration project is an important step towards commercialising more advanced turbines with larger capacities in the deeper waters of the UK.

www.the-eic.com

Siemens press picture

Rotork IQ intelligent electric valve actuators have been installed on stages one and two of the 4,000 kilometre long West-East Gas Pipeline (WEPP) network that runs through sixty-six counties in the ten provinces of China.

The first stage of this huge undertaking, which opened in 2004, brings natural gas from the Tarim Basin gas fields in Xinjiang to the Yangtze River Delta area for the production of electricity.

In 2008 construction began on a second pipeline, in part running parallel to and interconnected with the first. The second pipeline runs from Xinjiang to Guangzhou and is being followed by two further pipeline developments, all designed to supply billions of cubic metres of gas to satisfy the burgeoning demand for energy in China’s industrial and population centres.

With construction of the third stage now underway, Rotork is beginning to fulfil orders with IQ3 intelligent electric actuators. Launched in 2012, the IQ3 is designed to dovetail seamlessly into existing IQ actuator installations and control protocols, whilst introducing new levels of functionality and asset management abilities, combined with further refinements to a well-proven and rugged mechanical design.

The large toughened glass wide angle indication window is the focus of attention for non-intrusive two way wireless communication and multi-functional indication. A LCD segment display provides positional and warning icon information, whilst actuator setup and operating menus along with detailed diagnostic and operational data screens are clearly displayed in dot matrix format. Diagnostic graphics present a window into the process, showing the valve torque and usage profiles along with service logs, facilitating real time analysis directly at the actuator.

Advanced IQ data logging and communication capabilities have been increased in response to the end users’ desire to access more data, both in the field and in the control room.

A hand-held setting tool with Bluetooth® wireless technology also enables the data from the actuators to be transferred to a PC for analysis using Rotork Insight2 diagnostic software. Valve maintenance requirements can be identified and anticipated, eliminating unplanned interruptions or over-cautious planned maintenance outages. A patented absolute encoder with only four moving parts, built-in redundancy and self checking mechanically tracks valve positions if the actuator is manually operated when the power is off. No power is required for the actuator to reliably and accurately measure position.

Mechanical improvements include new handwheel assemblies, new non-intrusive local control switches and optimised corrosion protection by material and coating selection. Thrust bases have been re-engineered as separate components on all models in the IQ range, enabling actuators to be removed from the valve without altering the valve position. The IP68 watertight and temporarily submersible double-sealed enclosure is universal to all actuators, including those with explosion-proof certification, ensuring long term reliable performance in the most challenging environments. For more information please visit: www.rotork.com

Jens Frederik Hansen, CEO at A2SEA, said: “The installation of the two 6MW turbines is a step into the future of offshore wind. The turbines are getting bigger, and the future sites are further out to sea. This calls for more flexible vessels such as our new Sea Installer. We are proud of being part of installing the first turbines of the future of offshore wind.”

For more information visit: www.siemens.co.uk

STL International Ltd offers a range of low maintenance and maintenance free light fittings. After many years of reliable performance in installations around the world, the TNAML range of maintenance free fluorescent lighting has proved itself as the foremost choice for replacement or new lighting projects.

The TNAML carries a 10 year operational warranty (subject to certain conditions) and its maintenance free design and sealed for life concept requires only visual inspection to IEC/EN 60079-17. Approved units are in accordance with ATEX regulations and apply to both gas and dust. Standard versions have fittings with 2x18 watt lamps; 2x36 watt lamps; 2x58 watt lamps; and 230V/240V 50/60Hz. Other options are 110V 50/60Hz, 2 terminal boxes with through wiring, HACCP for the food industry and Wireless Black Start.

The TNAML Emergency Lighting, despite the normal restrictions placed on emergency fluorescent fittings, is technically innovative. Instead of relying on the control of the integral lamps to provide back-up lighting in an emergency, the TNAML has a separate facility. The emergency lights are LEDs which come into operation in place of the fluorescent lamps and thus preserve their longevity. It is ideal for any type of project, small or large, brown or greenfield. For more information please visit: www.stl-int.co.uk 11

March 2013

EIC UK, Overseas & Training

UK, Overseas & Training February 2013 25 HSE Training: Introduction to 97/23/EC & UK Pressure Systems Nuvia, Warrington 26 Sector-Based Forum: Gas Treatment, Processing & Storage Arden Hotel, Solihull 26 Technical Workshop: Introduction to Electric Motors ATB Laurence Scott, Norwich 27 Industry Overview: Fundamentals of Gas Turbines Windsor Guanabara, Rio de Janeiro 28 Business Presentation: The OPA and Costain The Bridge Hotel, Wetherby 28 HSE Training: Introduction to Machinery Directive 2006/42/EC Amtri Veritas, EIC London March 2013

4-5 Management Course: The Experienced Manager Inspirit Training, EIC London 6 Management Course: Technical Report Writing Rothera Group, EIC London 7 Management Course: How to Write Winning Bids Rothera Group, EIC London 7 Corporate Entertainment: Pembroke Supper Cleddau Bridge Hotel, Pembroke 7 Industry Outlook: LNG & Project Developments in Asia Pacific Siemens Center, Singapore 8 Corporate Entertainment: The Oil Barons Charity Ball 2013 Meydan Racecourse, Dubai 11-12 Management Course: The New Manager Inspirit Training, EIC London 14 Management Course: Technical Report Writing The British Council, EIC Singapore 14 Technical Workshop: Introduction to Compressors Siemens, Frimley 18-19 HSE Training: Minimum Industry Safety Training (OPITO approved) Woodside Training, Humberside 19 Industry Overview: Fundamentals of the Refining Process KBC, EIC Singapore 20 Industry Overview: Fundamentals of Oil & Gas EIC Aberdeen 21 Business Presentation: Opportunities with AMEC Middlesbrough Football Club 21 Management Course: Technical Report Writing Rothera Group, EIC London 25 Industry Overview: Fundamentals of Power E.ON UK, Nottingham 27 Management Course: Understanding Contracts Pan Asia Wikborg Rein, EIC Singapore 28 Industry Overview: Fundamentals of Oil & Gas Proclad Academy, Dubai April 2013 9 Management Course: Technical Writing Workshop EIC Houston 9 Management Course: Introduction to Social Media Herd Communications, EIC London 10 Technical Workshop: Introduction to Gas Storage Centrica Storage, Easington 16 Industry Overview: Fundamentals of LNG eMJay LNG, EIC London 18 HSE Training: Safety for Senior Executives (IOSH Accredited) EIC London 23-25 Management Course: Understanding Project Management EIC London 25 Corporate Entertainment: Southern Region Executive Luncheon Royal Society of Chemistry, London May 2013 1 Industry Overview: Introduction to the Gas Industry IGEM, EIC London 7 Management Course: Presentation Skills Inspirit Training, EIC London 10 Technical Workshop: Introduction to Shale Gas EIC Aberdeen 14 Technical Workshop: Introduction to Tidal Turbines Fraenkel-Wright, EIC London 15 Corporate Entertainment: Northern Region Golf Day Rockliffe Hall, Darlington 16 Industry Overview: Fundamentals of Subsea Cranfield University, Milton Keynes 21 HSE Training: Introduction to ATEX Directives 94/9/EC & 1999/92/EC Baseefa, Buxton 28 Management Course: Proposal Writing Workshop EIC Houston For further information on UK & Overseas Events and Training please contact: ukevents@the-eic.com www.the-eic.com

12

March 2013

EIC Exhibitions & Delegations/EIC National Events

Exhibitions & Delegations 2013

10-15 March Overseas Delegation to Brazil

Status

19-21 March CIPPE

Sold Out

Booking Now

Beijing

14-19 April Overseas Delegation to Chile

Booking Now

6-9 May Offshore Technology Conference (OTC)

Houston

Sold Out

5-7 June Oil & Gas Asia (OGA)

Kuala Lumpur

Sold Out

11-14 June Brasil Offshore

MacaĂŠ

4 Stands Remaining

29-31 October OTC Brasil

Rio de Janeiro Booking Now

10-13 November ADIPEC

Abu Dhabi

Booking Now

13-15 November Oil & Gas Indonesia (OGI)

Jakarta

Booking Now

tbc Overseas Delegation to Indonesia

Register your Interest

tbc Overseas Delegation to Korea

Register your Interest

tbc Overseas Delegation to Mexico

Register your Interest

For further information on Exhibitions & Delegations please contact: events@the-eic.com

National Events

2013

22-23 May EIC Member Pavilion at All-Energy 2013

Status

Aberdeen

Last Few Stands Remaining

4 June EIC Connect Oil, Gas & Power

Abu Dhabi

Last Few Stands Remaining

3-6 September EIC Member Group @ Offshore Europe

Aberdeen

Sold Out

Manchester

Register your Interest

12-13 November EIC Connect Energy

For further information on National Events please contact: nationalevents@the-eic.com

Jakarta 13 – 15 November 2013

BOOKING NOW Tel +44 (0)20 7091 8600

Email events@the-eic.com

www.the-eic.com

13

March 2013

EIC Overseas Exhibitions & Delegations

Overseas Exhibitions Overseas Delegations Forthcoming Exhibitions Brasil Offshore 11-14 June 2013 Macaé 4 Stands Remaining Why exhibit at Brasil Offshore?

• The International Brasil Offshore Oil and Gas Exhibition is held every two years in Macaé, the operational base for more than 80% of offshore exploration in Brazil.

• The event is well established in the market and has been running for 10 years.

• It enables E&P professionals to look for new exploration and production technologies, discuss new ideas and find solutions that allow them to see the potential of the Brazilian offshore market.

• Diversity of exhibitors combined with high levels of decision making is a recipe for success for the third largest offshore exhibition in the world.

Event Reports Overseas Delegation to Kurdistan 2-7 February 2013 Erbil The itinerary for this delegation was finalised in association with the London based Kurdistan Regional Government (KRG) representative who was very supportive of this initiative. HM Consul General and his UKTI team provided and set the scene for the rest of the week. A networking reception, sponsored by Genel Energy, was well attended with over 60 guests. The Deputy Minister of Natural Resources delivered a welcome speech alongside HM Consul General, Hugh Evans. The delegates had a highly informative meeting with the Vendor Registration Unit of the Ministry of Natural Resources.

The programme included Marathon Oil, one of the 40+ foreign operator companies currently active in Kurdistan.

Delegates also met with Federal Group and Afren Plc, Dana Gas, Crescent Petroleum, Genel Energy, Gulf Keystone, Khudairi Group, UB Group and Definitus. The KAR Group also took time to present to the delegation.

Terry Willis ended the visit with a meeting requested by the Minister’s Office, and a joint press conference, where the EIC received a request to help get the message across that Kurdistan is very much open for business and the Ministry of Natural Resources (MNR) is very keen to work with the EIC on various events in the future.

The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 10-13 November 2013 Abu Dhabi Booking Now 2013 is the first year of ADIPEC going annual. Following on from the success of 2012, space is selling out fast.

Why exhibit at ADIPEC? • See more than 1,600 oil and gas companies.

• Hear from 306 regional and international speakers at the region’s largest conference.

• Network with more than 4,000 delegates and 45,000 attendees – that’s 170% more networking opportunities than any other event in the region.

• 4 days of knowledge building which includes 50 technical sessions, 5 panel sessions and 2 executive sessions.

• Expand your business with the largest gathering of NOCs and IOCs in the Middle East.

• Explore new business opportunities at the new GCC Country Briefing sessions.

Overseas Delegation to Libya 19-24 January 2013 Tripoli The delegation began with a market briefing from HM Ambassador Michael Aaron and the UKTI team in-country, along with representatives from the local business and legal community and a security brief from Control Risks, appointed by the EIC to look after all security measures for the duration of the group visit. National Oil Company provided access to representatives from not only NOC and the Oil Ministry but also a number of NOC operating companies. Mr Abul Qasim Shanger, a member of the management committee at NOC welcomed the group, and stressed that business and investment opportunities in Libya are large and available to British companies. The group also met with BP, AMEC, Ordano Oil Services (a local Libyan company), Petrobras, the Brazilian NOC, Turkish Petroleum and Almansorin Construction.

In conjunction with the British Embassy, a networking lunch was arranged where over 60 local business representatives were able to engage with the delegates on a one to one basis. The overall consensus from the visit was that it was very successful given that three delegates received firm enquiries while they were in Libya. It is an ideal time for the UK supply chain to reaffirm the strong relationship enjoyed between the UK and Libya, explore the market and access opportunities within the energy sectors.

Laura Tavernor, Overseas Events Manager Tel +44 (0)20 7091 8600 Email laura.tavernor@the-eic.com

Oil & Gas Indonesia (OGI) 13-15 November 2013 Jakarta Booking Now Why exhibit at OGI? Facts from 2012: • The exhibition spanned 8542m2, up almost 2000m2 from 2009.

• Over 10,000 visitors went to OGI 2011.

• There were 728 exhibiting companies at OGI, almost 200 more than in 2009.

• 46 countries were represented – 10 more than in 2009.

• The show had 6 international group pavilions: Canada, Germany, Italy, Korea, Singapore and the UK. The EIC is delighted to again be managing the UK National Pavilion at all three of these exhibitions, as well as many more (see page 13). For more information on overseas exhibitions or delegations, please contact the EIC Overseas Events team: Tel +44 (0)20 7091 8600 Email events@the-eic.com www.the-eic.com

14

March 2013

EIC Middle East News

Middle East News

Regional Comment

Amended PSC for West Qurna-2 signed Lukoil and Iraq’s state-owned North Oil Company and South Oil Company have signed a supplement agreement to the Development and Production Service Contract related to the West Qurna-2 field. The parties have agreed to reduce the project’s target production level from 1.8 MMbbl/d to 1.2 MMbbl/d, to extend the period of target production level maintenance from 13 to 19.5 years and to prolong the total validity of the contract from 20 to 25 years. The new fundamental indicators will be taken into consideration as a final development plan for the West Qurna-2 field, which will be presented to the Iraqi government this quarter.

Office News

Due to editorial deadlines, this is being written within the week between us returning from Tripoli, Libya on one overseas delegation before embarking on another to Erbil, Kurdistan. The differences between the two markets are quite clear.

Libya has a fledgling government that is slowly getting itself in shape to take advantage of its new found freedom following the revolution that came to an end some 15 months ago. The wealth from under-developed hydrocarbons is well known and it is therefore important that the right steps are taken to fully exploit those assets. Consequently, it is a good time for companies to get themselves in shape ready for when the onslaught of business opportunities takes off in the next 18 months. Kurdistan meanwhile has had its own regional government in place for quite some time. They have taken a liberal view to exploiting its hydrocarbon assets, in deference to its parent in Baghdad. They see the value of re-injecting its revenues into infrastructure and social development which has resulted in a very safe environment with a relative ease of doing business. More information will be forwarded next month.

Another event to report on next month will be our Golf Tournament. This has proved to be an unprecedented success with over 100 participants all vying for the trophy plus an excellent number of prizes kindly donated by various stakeholders that we do business with locally.

For March, we have the Oil Baron’s Ball, Middle East Oil Show in Bahrain plus a repeat of our popular training programme, Fundamentals of Oil & Gas. The last event to mention is EIC Connect Oil, Gas & Power planned for Abu Dhabi in June. This is shaping up to be an excellent event both in terms of networking opportunities as well as a chance to hear at first hand from a number of high profile speakers, all of whom are engaged in the regional energy sector.

Looking at the regional landscape, we still see pockets of social unrest as well as challenging events within the sector as has happened in Algeria. For the Libya overseas delegation, suitable precautions were taken to ensure a safe visit and we would urge all member companies to do the same. To this end, if any company wishes to discuss this issue in more detail, then please do not hesitate to contact us.

Visitors to the office since the last Monthly News have been pretty sparse. We were nevertheless pleased to welcome Rabih Najjar from SPX Flow Technology, Andrew East from HMT Rubberglas who was on a regional visit and last but not least, Stuart Hamilton from Carpenter & Patterson.

Terry Willis, Director, Middle East Contact: terry.willis@the-eic.com

Dana Petroleum gets approval for Nefertiti Dana Petroleum has been given the go ahead for further development work at the Nefertiti field after it won governmental approval for its plans. Approval follows the successful completion of the Nefertiti-2X appraisal well at the end of 2012 where it tested a maximum flow rate of 1,850 b/d. Dana and partner Inpex expect to produce an average of 2,500 b/d from the field once it comes onstream, which is due in July 2013.

ENOC switches to Qatari imports The Emirates National Oil Company (ENOC) has begun importing Qatari condensate in an effort to replace Iranian imports, using the condensate to meet domestic demand.

ENOC was the biggest buyer of Iranian condensate in 2012 when its imports rose to an average of 127,000 bpd, up from 106,000 bpd in 2011. ENOC is also currently in talks with other condensate providers in the region.

Chevron takes three offshore blocks Chevron has signed an agreement with Office National Des Hydrocarbures Et Des Mines (ONHYM), to acquire stakes in three offshore exploration blocks. The offshore blocks, Cap Rhir Deep, Cap Cantin Deep and Cap Walidia Deep, are located between 60 and 120 miles west and north west of Agadir, Morocco. Chevron will hold a 75% stake in the three blocks and ONHYM will have the remaining 25%.

Eni plans $8 billion investment Eni intends to develop its existing oil and gas production in Libya and increase new exploration activities. Eni is looking to drill new exploration wells in its concession in Libyan waters. The $8 billion will be invested over the next ten years. $1.5 billion investment planned for Al-Shaheen Qatar Petroleum and Maersk have both agreed to an investment of $1.5 billion as part of a new field development plan (FDP 2012). The aim of the investment is to maintain a production plateau of 300,000 b/d until 2017 when the production sharing contract ends. The investment will see the drilling of 51 new wells and some facility debottlenecking activities.

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

15

March 2013

EIC UK News

News from our UK offices

Forthcoming Events

Corporate Entertainment: Pembroke Supper 7 March 2013 Cleddau Bridge Hotel, Pembroke A staple of the EIC calendar for over 15 years, this is a fantastic and popular event providing you with the opportunity to entertain your guests in an informal atmosphere in the heart of the south west’s energy capital.

Book now for your opportunity to meet and network with influential contacts in Pembrokeshire on what promises to be a very successful night. Sponsorship is available to enhance your company’s profile at the event and in the region. Contact: daisy.crisp@the-eic.com

Event Report

Corporate Entertainment: Burns Supper 24 January 2013 Norwood Hall Hotel, Aberdeen 120 EIC members, partners and guests were greeted traditionally by a piper and pre-dinner drinks to mark the start of the 2013 Burns Supper before being welcomed

by EIC Chief Executive, Ian Stokes. As main sponsors of the event, an opening speech was also given by Billy McBain from Finning Oil & Gas (in the absence of Colin Hotchkiss, General Manager). Opening Grace preceded the starter, followed by the Parade of the Piper and Haggis with address and the toast to the chef and piper. Entertainment was provided from Jim Mein and Brian Goldie from the Robert Burns World Federation; both take the word of the Bard extremely seriously with Jim giving a historical perspective and background and Brian lightening the mood with Tam O’Shanter and Holy Wullie’s Prayer. Lesley-Anne Brodie, EIC Manager, Scotland, drew the evening to a close by encouraging a rousing rendition of Auld Lang Syne. Sincere thanks to all who attended with special mention to our Sponsors for the evening: Main Dinner Sponsor, Finning (UK) Ltd. Drinks Reception, SafeHouse Habitats (Scotland) Ltd.

Business Presentation: Opportunities with AMEC 21 March 2013 Middlesbrough Football Club Over the past few years AMEC has changed radically from a predominantly UK based construction company to one of the world’s leading engineering, project management and consultancy companies. The company serves customers in the world’s oil and gas, mining, clean energy, environment and infrastructure markets. With annual revenues of some £3.3 billion, AMEC designs, delivers and maintains strategic and complex assets and employs over 29,000 people in around 40 countries worldwide. AMEC’s Asset Management business has its onshore operations in the north east of England. The business has a 20 year history of delivering turnaround, maintenance, EPC/EPCM, construction, storage tank and specialist engineering services to customers in the oil and gas, chemicals, petrochemicals and process sectors in the UK and Europe.

AMEC will deliver a presentation which will include details of the new business structure and strategy, along with current and future projects in which they are involved and how this will present opportunities for current and new supply chain members. Contact: jennifer.hole@the-eic.com Business Presentation: Opportunities with SNC-Lavalin March 2013 date tbc EIC London SNC-Lavalin is one of the leading engineering and construction groups in the world, and a major player in the ownership of infrastructure and in the provision of operations and maintenance services. SNC-Lavalin companies provide engineering, procurement, construction, project management and project financing services to a variety of industry sectors, including agrifood, pharmaceuticals and biotechnology, hydrocarbons and chemicals, environment, heavy construction, mass transit, mining and metallurgy, power and water management. The Hydrocarbons & Chemicals office in Croydon is the SNC-Lavalin Global Centre of Excellence for offshore engineering. SNC-Lavalin has successfully delivered offshore solutions in the Middle East, Caspian Sea, Far East, West Africa, the Arctic, Sakhalin Island, North Sea and Canadian North Atlantic. SNC-Lavalin will provide EIC members with an overview of their activities and current global projects, provide details of their supplier registration requirements and discuss the project focuses of their London office. Contact: daisy.crisp@the-eic.com

www.the-eic.com/award

www.the-eic.com

16

March 2013

EIC UK News Corporate Entertainment: Northern Region Golf Day 15 May 2013 Rockliffe Hall, near Darlington Following the success of last year’s event, Rockliffe Hall will once again play host to the Northern Region Golf Day. Set in the rolling Tees Valley countryside in the picturesque village of Hurworth on Tees, it is only minutes from the A1 and Durham Tees Valley airport. The day will begin with a breakfast buffet in the club house. Teams of four will play a Stableford competition, with the best 2 scores counting. The winning team will be awarded the Flexitallic Challenge Bowl Prize. On completion of your team’s round, there will be a two course dinner in the Grassholme Suite, along with the presentation of prizes.

Please contact the Northern office for more information.

Contact: jennifer.hole@the-eic.com

Sector-Based Forum: Upstream with Proserv March 2013 date tbc Proserv, Birchmoss Facility Proserv is a production technology and services company for the energy industry. Proserv has a marketleading position and fast-growing status as a leading provider of exploration and production, drilling, and infrastructure technical solutions and services to the global energy industry. Proserv designs, manufactures and delivers a comprehensive range of innovative subsea technologies for the demanding subsea and offshore renewables markets. With the integration of both Hydrafit Subsea and Argus Subsea into their global company infrastructure, Proserv is able to offer an extended portfolio of services that is truly unique to the market. Proserv has recently consolidated its position for sustainable growth and future expansion following the successful completion of a US$215 million refinancing agreement. Proserv has also bolstered its rapidly-evolving global footprint and specialist integrated services after acquiring major US company Total Instrumentation & Controls (TIC). Contact: leeann.stewart@the-eic.com

Corporate Entertainment: Scottish Region Golf Day 3 July 2013 Trump Golf Links, Aberdeen Further information available soon.

Contact: leeann.stewart@the-eic.com

Partnership Opportunity:

UK Executive Luncheons 2013 The EIC Executive Luncheons are biennial events which bring together the MDs and CEOs of EIC member companies in an exclusive, high level networking capacity.

This year, each EIC UK regional office will once again be offering EIC members the opportunity to partner with us to help us promote your organisation to the senior decision makers from our membership, including our operator and EPC members. The package on offer includes: • Opportunity to place literature and/or giveaways on the tables.

• A number of places at the Lunch, providing the opportunity to invite colleagues and guests from across the industry.

• A named thank you during the welcome speech from the EIC’s CEO. • Opportunity to give a ten minute company introductory speech.

• Editorial opportunity within Energy Focus magazine, circulated to over 4,000 industry representatives (subject matter to be agreed).

• Logo and acknowledgement on the EIC website.

• Joint branding with the EIC on all literature regarding the event including the invitations which will be issued to each guest.

• Acknowledgement and branding on the front cover of the event programme.

• Branding opportunities at the event within the drinks reception area which could take the form of literature, banner stands/pop ups etc.

• Full page advert in the event programme.

• Acknowledgement in the EIC Monthly News pre and post event.

This is an ideal opportunity for a company looking to raise their profile within a specific region or sector.

For more information, please contact one of the EIC Regional Managers below: Charlotte Hust, Southern Region Contact: southern@the-eic.com

Helen Doona, Northern Region Lesley-Anne Brodie, Scotland Contact: northern@the-eic.com Contact: aberdeen@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

17

March 2013

EIC Asia Pacific News

Asia Pacific News

Regional Comment

Indonesia to provide incentives for exploration The Indonesian government has decided to offer a number of incentives to encourage investors to conduct exploration activities so that Indonesia can raise its new reserves. Indonesia has 60 basins that potentially contain gas reserves. Only 38 basins have been explored. There has been no exploration so far in the other 22 basins, which are mostly located offshore in deep water. Of the 38 basins that have been explored, 16 basins have produced hydrocarbons. 9 basins are not yet in production but proven to contain hydrocarbons.

Forthcoming Events

We are planning 3 overseas delegations around the region this year and countries of interest under consideration include India, Indonesia and Vietnam. Events this month are: Industry Outlook: LNG Outlook and Project Developments in Asia Pacific 7 March 2013 Siemens Center, Singapore This Industry Outlook at the Siemens Center, in conjunction with GL Noble Denton, will give the outlook on the LNG industry and project developments that are happening around the region. Simon Brooks, Business Development Manager in Australia will be speaking. GL Noble Denton will also sponsor the food and drinks for this event. Look out for the email invitation for more details.

Myanmar conducts second bidding round The Ministry of Energy has announced the second bidding round for onshore oil and gas blocks. Myanmar Oil and Gas Enterprise (MOGE) will serve as a partner along with at least one Myanmar nationally owned company. The list of approved Myanmar nationally owned companies will be compiled by the Energy Planning Department. Potential bidders will be able to submit up to three proposals for three onshore blocks. The first round of tenders took place in August 2011.

Management Course

Technical Report Writing 14 March 2013 The British Council, EIC Singapore This course is in conjunction with The British Council, Singapore and will look at developing and improving technical report writing skills. There will be practical writing exercises during the workshops. Attendees can expect to learn the features of and differences between various types of technical documents and translate complex and innovative ideas into clear, logical and technically accurate documents.

Singapore short of manpower for energy sector The Power Sector Manpower Taskforce (PSMT) of Singapore recommends establishing a sector-wide branding exercise and a centralised training institute to meet manpower training needs in the energy sector. A more comprehensive framework has also been recommended to attract and retain talent. The recommendations will help support manpower changes expected in the sector in the coming years. The government has indicated that Singapore has up to 2,500 technical manpower vacancies in the industry.

Industry Overview

The Fundamentals of the Refining Process 19 March 2013 KBC Advanced Technology, EIC Singapore This one day course which will enable attendees to gain insights into the terms, business concepts, technology, design philosophy, key processes, technologies and present and future challenges of the refining industry.

ESCO fund to allot B2.5 billion to go green The Thai Alternative Energy Development and Efficiency Department plans to add 2.5 billion baht (US$84 million) to the ESCO fund that helps businesses improve energy use. The fund will make the money available in the form of soft loans from mid-2013. It will support investments in clean and renewable energy, as well as energy efficiency improvements. It also provides grants and loans both to energy services companies and directly to firms interested in streamlining their energy use.

Management Course

Understanding Contracts 27 March 2013 Pan Asia Wikborg Rein LLC, EIC Singapore The course will help attendees understand the function of contracts within the management of commercial risk, the correct contract strategy for achieving a successful project and the various terms and conditions of a normal contract pertaining to suppliers for the oil and gas industry.

PetroVietnam to expand oil and gas overseas The Prime Minister’s Office has suggested that PetroVietnam will pursue the strategy of expanding oil and gas activities overseas to preserve domestic resources and guarantee energy security. Vietnam will experience a shortage in energy and will have to import fuel by 2020. The country has to make preparations to meet increasing domestic demand. PetroVietnam will focus on co-ordinating with contractors to increase domestic oil production in 2013. The group will also accelerate surveys and negotiations abroad to purchase new oil fields and increase oil reserves to 40 million tonnes.

If you need any help or advice in the region or for more information about upcoming events, please contact us: Tel +65 6238 7756 Email singapore@the-eic.com Loong Say Meng, Director, Asia Pacific Contact: loong.saymeng@the-eic.com

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

18

March 2013

EIC China News

China News

Chevron secures South China Sea blocks Chevron has secured full ownership rights of a pair of blocks in the South China Sea after striking a deal with stateowned China National Offshore Oil Corporation (CNOOC).

The US giant’s Chinese subsidiary Chevron China Energy has signed production sharing contracts with CNOOC for shallow-water blocks 15/10 and 15/28 covering 5,782 square kilometres in the Xijiang Sag area of the Pearl River Mouth basin. Chevron will hold 100% stakes in each block and will act as operator during the exploration phase, where it will bear the entire cost of work including shooting of 3D seismic. CNOOC has the right to participate with a working interest of up to 51% in any commercial discoveries in the blocks, in a water depth of 50 to 100 metres.

Forthcoming Events

Overseas Exhibition: CIPPE 19-21 March 2013 New Exhibition Centre, Beijing As the biggest oil and gas equipment exhibition in Asia, the EIC is managing the UK Pavilion for this event this year. For more details please visit our website.

Workshop with CNOOC 22 March 2013 Venue tbc Following CIPPE we have organised a workshop with CNOOC’s key departments/subsidiaries of engineering and procurement. This workshop is open to companies exhibiting in the UK Group.

Frigstad Offshore orders $1.3bn semisub pair Frigstad Offshore has ordered two newbuild ultra deepwater semi submersibles from CIMC Raffles at a cost of $1.3 billion. The Cyprus-registered, Singapore-based contractor has ordered the pair on turnkey contracts from the CIMC Raffles Yantai yard in China, with options for another four units. The dynamically-positioned drilling units are of Frigstad Engineering’s Frigstad D90 design.

The semi-submersibles are capable of operating in water depths up to 12,000 feet and drilling to a total depth of 50,000 feet, and will be outfitted with two blowout preventers as well as a dual activity drilling package. The pair are due for delivery by the end of the fourth quarter of 2015 and by the end of the second quarter of 2016 respectively.

Frigstad Offshore will manage the construction, marketing and operation of the rigs, which were ordered through its drilling subsidiary Frigstad Deepwater.

For information and business support in China contact: Salina Zhang, Regional Manager, China Contact: salina.zhang@the-eic.com

Regional Comment

BP sells Yacheng stake to KUFPEC BP has agreed a sale agreement with Kuwait Foreign Petroleum Exploration Company (KUFPEC) relating to its 34.3% stake in the Yacheng gas field in the South China Sea, for US$308 million cash. BP’s decision to divest its Yacheng stake forms part of a broader programme that focuses on high value assets with long-term growth potential. However, as one of the leading foreign investors in the Chinese energy sector, BP will carry on investing in both upstream and downstream areas in China. The field – commissioned in 1996 – was operated by BP until 2004. CNOOC Ltd acquired the operatorship of the field in 2004 and will remain the majority partner post sale with a 51% stake. KUFPEC will hold the remaining 49% stake.

Situated about 62 miles (100 kilometres) south of Hainan Island in 295 feet (90 metres) of water, Yacheng 13-1 is the largest producing natural gas field offshore China. BP received interests in deepwater blocks 42/05 and 43/11 in the South China Sea in 2010 and 2012, respectively.

Currently, exploration work is in progress in the fields.

The deal – likely to close in the second half of 2013 – is subject to regulatory, CNOOC and third party approvals.

PetroChina awards contract to Rolls-Royce Rolls-Royce, the global power systems company has announced a $75 million contract to supply PetroChina with equipment and related services to power the flow of natural gas through Line 3 of the West-East Pipeline Project (WEPP), the world’s longest pipeline and a crucial element of China’s drive towards cleaner energy consumption. Rolls-Royce will supply PetroChina with an additional six RB211-driven pipeline compressor units, bringing the total number of RB211 units sold for installation on China and Central Asia’s vast natural gas pipeline network to 56. Rolls-Royce, which has provided equipment to WEPP since 2004, will manufacture and package the equipment at its energy facilities in Canada and the USA.

Sinopec, ConocoPhillips to research shale gas The Sinopec Group, the world’s fifth-largest oil company, has said that it will jointly study shale gas development with ConocoPhillips in the Sichuan Basin over the next two years. The Sinopec Exploration Southern Company, a Sinopec subsidiary, will conduct research on the exploration, development and production of shale gas with ConocoPhillips China in the Qijiang block, an area located in the south western Sichuan Basin, where rich shale gas is deeply embedded. ConocoPhillips will carry out twodimensional seismic surveys and drill two wells in the block.

Linde wins fourth LNG project in China Chinese firm Sichuan Tongkai Energy and Technology Development has awarded a contract to Germany’s Linde for the design and construction of a 300,000 t/yr LNG liquefaction plant in Sichuan, China. The Bazhong LNG plant, Linde’s fourth such project in China, will be able to process different compositions of feed gas.

The LNG will be transported on trucks to local industrial regions not serviced by pipeline grids.

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

19

March 2013

EIC North and Central America News

North and Central America News Office News

EICDataStream Overview 21 May 2013 EIC Houston For new members or those who need a refresher on how to use the EICDataStream database.

The office has been busy over the last month with visitors and meetings. Hughes Safety Showers, NSSL Global, Bergen Pipe Supports, E2S and Magma Global met with us for a tour of our facilities and to get a better understanding of the services our office offers to members. Talascend stopped by for DataStream training and Promat, Aquaterra and WMT all utilised our hot desk while they were in town on business. The visitor activity seems to reflect the general trend that Houston has an ever expanding economy due to the continued growth in the energy sector along with the Port of Houston. All reports show a sustained job growth that is projected to continue to grow over the next few years.

One of our long time tenants and global members, CCL, has recently moved out of the EIC Houston office into their own office space to accommodate the growth they foresee over the next few years. They’ve been with us for ten years and we wish them all the best as they enter the next phase of their success in our region. We would also like to welcome Aquaterra and Derrick Services.

We recently attended an OTC roundtable for exhibitors, hosted by the OTC staff at the Reliant Center. We were given an overview of show details and minor changes that have taken place while being given the opportunity to provide feedback to the show on our experiences. It was a worthwhile day of information sharing, which made us realise that the exhibition will be here before we know it. One thing we’d like to highlight from the meeting is that you need to book your hotel rooms for OTC early this year.

Another convention is being held at the George R Brown Convention Center from 1-5 May that is due to bring in 80,000 people. Book early and we look forward to seeing you all there.

Aimee Marsh, Executive Director, North and Central America Contact: aimee.marsh@the-eic.com

Management Course

Proposal Writing Workshop 28 May 2013 EIC Houston The proposal writing workshop develops knowledge and skills for writing proposals that give EIC members a competitive advantage when bidding on projects.

Regional Comment

US Energy Department to decide on LNG exports Discussions are still ongoing on exporting LNG from the US. The nation’s cheap and plentiful resource could be sold to non-FTA (Free Trade Agreement) countries for a much higher price, so America’s gas producers are pushing for export.

Dozens of import terminals are jumping on board to become export terminals (only one, Sabine Pass, has received DOE approval). The WTO claims that the US will break global trade rules if it restricts export while promoting domestic use. However, industrial and chemical giants in the US are pushing back against exporting natural gas as the competition will raise its price in-country. However it is expected that the Energy Department will decide in favour of LNG exports.

Schlumberger and Cameron form JV Schlumberger and Cameron are combining their subsea businesses. Cameron owns 60% and will manage the JV, named OneSubsea, which will focus on manufacturing and developing subsea products and services worldwide.

BP sells refineries BP has sold its 475,000bpd Texas City refinery and other downstream assets to Marathon Petroleum. BP will also be selling its Carson City refinery in California.

Forthcoming Events Management Course

Aker Solutions expanding in Canada Aker Solutions continues to expand its presence in Canada. It has bought out the AKCS offshore partners SNC-Lavalin and GJ Cahill & Co to take complete ownership of the St John’s, Newfoundland company, which offers maintenance, modifications and operations services to the Canadian Atlantic oil and gas industry.

Technical Writing Workshop 9 April 2013 EIC Houston This management training course takes an active approach to improve your technical writing through participation exercises and practice on your current writing projects, resulting in immediate results, feedback and one-on-one evaluations from the professionals.

AltaGas and Idemitsu Kosan to export LNG Canadian pipeline company AltaGas Ltd and Japanese Idemitsu Kosan Co Ltd are joining forces to explore shipping LNG across the Pacific Ocean to Asian markets.

Together they are undergoing a year-long feasibility study for a liquefaction plant which could come online in 2017.

Offshore Technology Conference (OTC) 6-9 May 2013 Houston Sold Out

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

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EIC South America News

South America News

Tartaruga fields are commercial Petrobras has submitted declarations of commerciality for its fully-owned Tartaruga Verde and Tartaruga Mestiça fields (previously known as Aruanã and Oliva, respectively) located on the BM-C-36 concession.

Tartaruga Verde contains recoverable reserves of 230 million barrels of oil equivalent while Tartaruga Mestiça contains 121mmboe. Both fields have 27 degree API oil.

Production from Tartaruga Verde is scheduled to begin in 2017 and Petrobras plans to use an FPSO with a capacity of at least 80,000b/d at the field.

Office News

On 12 March Rio is hosting the UK – Brazil Oil & Gas Showcase. Alongside this event, 3 delegations have been organised: Brazil Offshore Construction by the EIC, Maximising Oil Production by SDI and Subsea & Deep Water by Subsea UK. Expectations are high for these events which aim to bring UK expertise in contact with Brazilian demand. We also expect the visit of the EIC’s CEO Ian Stokes to Rio during the week.

Brazil to add 8.5GW to the grid in 2013 According to an announcement by Brazilian President Dilma Rousseff, the country will see 8.5GW added to the national grid this year, in addition to the completion of 7,400km of transmission lines. The Brazilian power sector has been in the spotlight recently due to speculation about possible blackouts caused by low reservoir levels in hydro power plants.

Forthcoming Event

Overseas Delegation to Chile 14-19 April 2013 Anchored to the IFT Energy Power Sector Trade Fair on 17-19 April 2013 in Santiago, this overseas delegation will offer favourable prospects to UK exporters in the Chilean energy market.

Event Report

Argentina ties up with China for nuclear co-operation The two countries, through their respective operators Nucleoeléctrica Argentina (NA-SA) and CNNC, have signed two bilateral agreements to boost co-operation in the development of nuclear power. The first agreement calls for co-operation in the engineering, construction, operation and maintenance of natural uranium pressure tube reactors as well as the production and storage of nuclear fuel, among other topics. Under the second agreement, both companies will analyse the feasibility of turning Argentina into a platform for the provision of nuclear power plants equipped with Chinese technology to other countries. Argentina also signed a nuclear cooperation deal with the UAE in January. The country is one of three countries in Latin America generating power from NPPs, alongside Brazil and Mexico.

Business Presentation: Opportunities with IESA 31 January 2013 Rio de Janeiro IESA’s Business Developer, Laudezir Carvalho presented to 23 EIC members a broad overview of the company and its main projects such as the maintenance of 23 Petrobras platforms, the recently signed maintenance agreement for Floatel, which will employ 600 workers and the 24 compression modules which will be built in the 355m2 Charqueadas in the south of Brazil. We would like thank IESA for delivering this presentation.

Clarisse Rocha, Regional Manager, South America Contact: clarisse.rocha@the-eic.com

Regional Comment

ANP studying changes to local content rules Brazil’s National Petroleum Agency (ANP) is understood to be studying changes to local content rules applied to the oil and gas industry. Modifications will allow the maintenance and servicing of drilling rigs in Brazilian shipyards to be included in the local content certification process. Revised rules are expected to be introduced by the end of March. Petrobras’ subsidiary Sete Brasil has ordered the construction of 28 drilling rigs, to be built in five shipyards across the country.

Bolivian works to begin this year Construction of the 120MW San Jose hydro power plant on the Paracti River is expected to begin this year.

Construction will take 45-55 months. The project is being developed by Corani, a subsidiary of Ende.

Chile booming with NCRE projects According to the Chilean energy ministry, nonconventional renewable energy (NCRE) projects submitted for environmental approval in 2012 amounted to an installed capacity of 5.74GW. Approximately 4.8GW were approved, representing a major increase compared to projects approved in 2011 (943MW). Most projects submitted for approval last year were solar power plants, with an overall installed capacity of 3.14GW. Chilean authorities are currently reviewing NCRE projects totalling 2.4GW, consisting mainly of wind farms (1.44GW), solar power plants (804MW), small hydros (87MW) and geothermal projects (70MW).

Petrobras signs MoU with Norwegian credit agency The operator has signed a Memorandum of Understanding with Garanti-Instituttet for Eksportkreditt (GIEK), a Norwegian export credit agency, which will allow up to $1 billion in credit guarantees to Norwegian companies supplying goods and services to Petrobras.

This is the second agreement between Petrobras and GIEK after the first MoU signed in 2010. The MoU is part of Petrobras’ financing strategy for projects included in its 2012-16 business plan.

EIC Newsbriefs – Keeping you up to date on energy news from around the world. Email membership@the-eic.com www.the-eic.com

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EIC National Events

National Events The EIC to fly the flag for members in renewables at: All-Energy – Aberdeen, 22-23 May 2013 EIC Connect Energy – Manchester, 12-13 November 2013

EIC Connect Oil, Gas & Power 2013 exhibition in Abu Dhabi is practically sold out in anticipation of speaker programme.

With a current investment pipeline of £46 billion for Scotland alone, All-Energy is the number one business platform in the UK for reaching the renewables market and is the industry hub for exploring new opportunities, forging deals and participating in unrivalled networking. The EIC has secured stand space in a fantastic location very close to the entrance of the show exclusively for members. With over 8000 visitors on average, All-Energy attracts some 500 exhibitors each year – make sure you are one of them!

Not only will members benefit from the buzz of visitors and lounge facilities in the pavilion, but our presence is part of our key initiative in 2013 to drive business opportunities in the sector to EIC members. All-Energy 2013 will serve as a catalyst in our campaign to promote renewable opportunities joining the all new EIC Connect Energy agenda which will take place in November in Manchester.

EIC Connect Oil, Gas & Power 2013 follows on from the success of the 2011 event where 400 delegates from over 150 companies, 12 speakers and 27 exhibitors came together to discover the major opportunities that lay ahead in the Middle East. At the time of writing, most stands have already sold, with a selection of the UK’s leading companies snapping up space to showcase their offering to the region’s top energy companies.

The speaker programme for the supply chain briefings will be led by major operators and contractors from the Middle East region, looking to establish direct links to their current and potential supply chain in order to seek out new services and technologies. The presentations, delivered on a repeat basis to allow delegates to attend as many sessions as possible, will inform suppliers on future markets, upcoming projects and procurement strategies.

A one day conference is to be introduced to run alongside the supply chain presentations, where major companies will have the opportunity to educate delegates on current and future market trends, while seeking feedback on how to develop their supply chain long term. Topics currently being discussed as part of the programme include the global ‘dash for gas’, the extent of challenges in Iraq, and also the burgeoning opportunities coming out of East Africa. Further, panellists will address the impact all of these emerging markets are likely to have on the supply chain in the Middle East over the coming years.

Priced at just £179 for access to all activities on 4 June, along with the opportunity to speak directly to the key decision makers at the major operators and contractors in the region, this event is competitively priced and represents incredible value for money.

UK based suppliers are encouraged to take this fantastic opportunity to visit the event in Abu Dhabi where UK companies can also meet the local EIC staff and UKTI commercial officers on a one-2-one basis.

Where else can you meet all of the key decision makers in one day for such a low entry fee, flight and a few nights accommodation? The EIC has negotiated special event rates with St Regis Hotels. For more information contact: Sarah Lansdell, Manager, National Events Tel +44 (0)1642 379 974 Email sarah.lansdell@the-eic.com

EIC Connect Energy offers an unrivalled opportunity to engage with the operators leading the next wave of project activity. EIC Connect Energy will boast a number of new initiatives for exhibitors and delegates alike, such as: • Covering global opportunities in nuclear, renewables and conventional power in the exhibition.

• Streamlined business presentations – speakers will repeat their sessions once only to allow them to circulate the exhibition and meet companies on their stands.

• Adjoining Conference Programme addressing the hot trends that suppliers should be aware of across the global power industry, such as the transition to a low carbon economy, the impact of smart grids and demand side management plus global supply chain dynamics.

If you would like to book one of the last remaining stands in the EIC Group at All-Energy or discuss the fantastic opportunities available at EIC Connect Energy contact: Charmaine Atkinson, National Events Co-ordinator Tel +44 (0)1642 379 975 Email charmaine.atkinson@the-eic.com

www.eic-connect.co.uk www.the-eic.com

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www.the-eic.com

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If you would like more information or are interested in becoming an EIC member, please write, telephone, fax or email The EIC (Head Office and Southern Region) 89 Albert Embankment, London SE1 7TP Tel +44 (0)20 7091 8600 Fax +44 (0)20 7091 8601 Email info@the-eic.com The EIC (Northern Region) Belasis Business Centre, Belasis Hall Technology Park, Billingham TS23 4EA Tel +44 (0)1642 379 972 Fax +44 (0)1642 379 971 Email billingham@the-eic.com The EIC (Scotland) 72 Carden Place, Aberdeen AB10 1UL Tel +44 (0)1224 626 006 Fax +44 (0)1224 637 393 Email aberdeen@the-eic.com The EIC (Middle East) PO Box 54455, Office No 5WA 228, West Wing Building 5A, Dubai Airport Free Zone, Dubai UAE Tel +9714 299 3945 Fax +9714 299 3946 Email dubai@the-eic.com The EIC (Asia Pacific) 3 Temasek Avenue, Centennial Tower #16-02, Singapore 039190 Tel +65 6238 7756 Fax +65 6238 8179 Email singapore@the-eic.com The EIC (China) Room 2503, Tower B, R&F Twins Tower, No 55, Dong San Huan Zhonglu, Chaoyang District, Beijing, China 100022 Tel +86 10 5876 5705 Email beijing@the-eic.com The EIC (North and Central America) Suite 850, 11490 Westheimer, Houston, Texas 77077 Tel +1 713 783 1200 Fax +1 713 783 0067 Email houston@the-eic.com The EIC (South America) Ed. Manhattan Tower, 26th Floor, Avenida Rio Branco 89, 20040-004 Rio de Janeiro - RJ, Brasil Tel +55 21 3265 7400 Fax +55 21 3265 7410 Email rio@the-eic.com

www.the-eic.com

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