EIC Monthly News November 2015

EIC Monthly News November 2015

• Sector Analysis • Training Services • Member News • Overseas Events • UK News • Middle East News • Asia Pacific News • North America News • South America News

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The EIC Chief Executive

The Chief Executive

In the news last month, the political party conference season saw Chancellor George Osborne announce the creation of a National Infrastructure Commission (NIC). Although there has been speculation about its remit, energy will clearly be at the top of its agenda so we look forward to hearing more. In the meantime, the Green Investment Bank (GIB) has raised £818 million to back offshore wind farms making it the UK’s largest renewables fund. To find out more, please visit: www.greeninvestmentbank.com On the subject of funding, we are hopeful that the next Treasury Spending Review at the end of November will tell us more about how the Government aims to support the energy sector. Keep an eye out for updates on our website.

Despite the challenging oil and gas climate, companies are still making investments. Egypt, for example, is becoming an increasingly attractive market for both operators and the supply chain thanks to the recent Zohr gas discovery.

This is another positive development in a region with substantial proposed investments and new-found political stability.

If you would like to explore the business opportunities in Egypt, we plan to take a delegation there in January 2016. To register your interest please contact Amy Ford: amy.ford@the-eic.com

© Owen Billcliffe 2015

Left to right: EIC President Chris Haynes and Chairman Paul Mitchell, with this year’s winners Dr Colin Elcoate and Ranald Patrick from SPX.

October was also a time for celebrating technical innovation among some of our members. The EIC Award for Supply Chain Excellence 2015, presented at our annual National Dinner in London’s Natural History Museum, was won by SPX Flow. The judges were hugely impressed by SPX’s unique Turbine Water Lubricated (TWL) technology, which helps to sustain emergency reactor cooling during power station blackouts. Congratulations also go to runners-up Tracerco, and our other finalists Advanced Industrial Solutions Ltd, ALE Heavylift and Stork.

If your company has made an outstanding contribution to the energy supply chain, please enter our 2016 awards, which open early next year.

Finally but by no means least, I would like to welcome our new president Chris Haynes, a senior oil and gas industry professional with almost 40 years’ experience with the Shell Group and its global affiliates. We look forward to working with him and further supporting our members. Claire Miller, Chief Executive www.the-eic.com

@TheEICEnergy

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Contents The Chief Executive

2

Sector Analysis

3

Training Services

4

New Members

5

Member News

6

Events Diary

10

Overseas Events

12

UK News

13

National Events

14

Middle East News

16

Asia Pacific News

17

North America News

18

South America News

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November 2015

EIC Sector Analysis

Sector Analysis

At the beginning of the century Iran initiated a massive plan to expand petrochemicals capacity. Making use of its huge gas reserves, the country aims to become the leading petrochemical producer in the Middle East. But due to lack of investment, technology and feedstock the country hasn’t been able to reach its initial targets. In fact, its petrochemical plants have been running at around 70% capacity due to an ethane shortage. For instance, delays on development of the South Pars gas field caused a lag in the commissioning of phase II of the Kavian petrochemical complex, which will produce up to 2 million tonnes per annum (tpa) of ethylene when completed.

Prospects for the petrochemical sector in Iran

The possibility of sanctions relief in 2016 may stir Iran’s projects market and there are already signs of a revival on several developments within the oil and gas sector. In the downstream sector there are a number of large uncompleted and future projects which are expected to move ahead if sanctions are lifted.

According to the National Petrochemical Company (NPC) there are currently 73 petrochemical projects under development which will see an expected total investment of US$37 billion. NPC also announced 30 future developments with a total investment of US$27 billion.

Sanctions on Iran started back in 1979, but it was the last round of embargoes in 2011 and 2012 that most significantly impacted the country’s oil and gas industry.

Iran holds the world’s fourth largest proved reserves of oil and the largest proved reserves of gas according to the BP Statistical Review. Nonetheless, in 2014 Iran was the seventh largest oil producer in the world. Before 2012, the country exported 2.6 million barrels per day (b/d) of oil, mostly to China, India, Japan and South Korea. In 2014, Iran’s crude oil and condensate exports were on average 1.4 million b/d.

BASF, Linde Group and Indian Oil Corporation (IOC) are some of the companies mentioned as potential investors in the sector, with IOC recently announcing its intention to invest US$3 billion in a new petrochemical plant.

Another benefit from sanctions relief is the possibility of attracting foreign technology providers such as IFP, Technip, Basell, Shell and Haldor Topsoe, as well as some Asian providers. It is understood the government has been seeking to raise interest from these companies.

The reasons behind this considerable drop in oil exports are similar to those affecting the whole Iranian oil and gas industry. Although the country has been prohibited to export oil to the European Union (EU) and USA, it is believed that the most deteriorating measure to the industry are the sanctions over the finance sector, preventing access to international capital markets.

Technology is also a key element for the development of oil and gas projects. The result has been the delay of several developments and stagnation of oil and gas production rates.

One of the many projects in the petrochemical sector is the development of the Chabahar petrochemical hub, which will see the construction of between 16 and 21 production plants to be implemented in three phases over nine years. Phase I is expected to add 8 million tpa in capacity at an estimated cost of US$5 billion. The hub is located in the Chabahar Port free trade zone, where there are no limitations to import machinery, spare parts, transport means, and material for construction. There is also tax exemption for 30 years and privileges for foreign man power usage. The region is located in the south of Iran which will allow for easy access to the Asian markets.

In July the Joint Comprehensive Plan of Action (JCPOA) was reached between Iran and P5+1 (USA, UK, France, China, Russia + Germany) in which the Persian country consented to scale back its nuclear programme in exchange for sanctions mitigation. The International Atomic Energy Agency (IAEA) will produce a report by 15 December assessing Iran’s nuclear developments and its potential military applications. That could be the implementation day if IAEA’s report has a positive outcome as the EU can terminate nuclear-related sanctions on this day. In the US, 15 December could also be the sanctions relief day if the nuclear deal does not get ruled out by Congress. However, expectations are that sanctions will more likely be lifted by spring 2016. At the time of writing, both approvals are still awaited.

There are 16 methanol projects under development and 17 olefins projects being implemented. A considerable number of gas-to-propylene plants have also been proposed. All in all NPC has revealed plans to increase Iranian petrochemical output capacity from 60 million tpa currently to 180 million tpa by 2025 with investments of over US$80 billion needed.

The Iranian petrochemical sector has been facing some challenging obstacles for years notwithstanding the large number of projects and its ambitious expansion plan.

There are many expectations related to the outcome of next months’ events and prospects for an easing scenario are that the sector will thrive and new opportunities may arise for the UK supply chain.

The immediate effect of the lifting of sanctions is the access to the much needed Iranian assets blocked abroad, estimated to be at least US$29 billion and potentially US$150 billion. Foreign investment is also needed to resume projects and boost oil and gas production in order to bring to an end feedstock shortages at petrochemical plants. www.the-eic.com

@TheEICEnergy

Natan Yamada, Sector Analyst (Downstream) Tel +44 (0)20 7091 8607 Email natan.yamada@the-eic.com 3

November 2015

EIC Training Services

Training Services

Forthcoming Training Industry Overviews

Last gasp for shale gas?

Fundamentals of Power Wednesday 2 December 2015 E.ON UK Engineering, Nottingham Focuses on how a modern day power plant works, through to transmission and distribution. Aided by a simulator of the control room you will gain a practical insight into the workings of a modern day power plant and a greater understanding of the power generation sector.

Commodity prices are volatile and at the same time the UK government announces award of licences under the 14th Onshore Round following record applications. How can this be? These events are a result of the recent expansion in shale gas which has had a dramatic and lasting impact on the industries and economies of the globe, reaching far beyond just the fortunes of the oil and gas industry alone.

Fundamentals of Oil & Gas Thursday 3 December 2015 EIC London Focuses on fundamental concepts from the practical technologies of exploration, prospect drilling and project development through to processing, transportation and refining. You will gain a good understanding of the oil and gas industry and how it operates.

There are three key players in the development of shale gas all wishing to promote their individual agenda – the government, industry and environmentalists. The government wishes to see growth in the economy and security of gas supply; the industry seeks access to substantial gas resources and production; and the environmentalists are promoting a green agenda amid concerns around hydraulic fracturing and its impact.

Wrap all this up in a global gas business that is becoming increasingly interconnected and political and you have the potential for dramatic shifts in policy and profits.

Fundamentals of LNG Thursday 10 December 2015 EIC London Focuses on processing, liquefaction, shipping and regasification, the LNG value chain, project development and economic complexities. You will gain a good understanding of how the LNG industry works, the scope and size of business and activities involved.

Who will be the winners and losers? Is shale gas an opportunity or a threat for your business? Either way you need to understand the impact shale gas is now having.

To help answer some of these questions and enable greater understanding of the industry and its emerging markets, we are running An Introduction to Shale Gas on 2 December, delivered by Richard Mew. Richard will provide his experience and understanding of the global gas industry from reservoir to burner tip and focus on the impact and potential of shale gas from a technical, commercial but above all independent perspective. The day will involve discussions of opportunities and challenges facing the industry, supported by videos and Richard’s insights and experience in the oil and gas business.

Technical Workshop

Richard Mew, Director, Koyos Resources, has over 30 years of industry experience and has worked on projects in most hydrocarbon producing areas of the world. He has held senior management positions in Shell, Conoco, Hess, Chevron and Centrica. He is joint owner and founder of Koyos Resources.

Tendering for Success: How to Write Winning Bids Wednesday 9 December 2015 Rothera Group, EIC Teesside Focuses on evaluation and incorporation of customer requirements to successful management of the bid process. You will gain a good understanding of the entire bid management process, and most importantly how to beat the competition.

Introduction to Energy from Waste Tuesday 8 December 2015 Lakeside EfW, Slough Focuses on key concepts involved in the industry from how a plant functions to construction, cost and design capacity. You will gain a practical insight into the operation and maintenance of an energy from waste plant and a good understanding of the energy from waste industry.

Management Course

Technical Workshop

Introduction to Shale Gas Wednesday 2 December 2015 EIC London Focusing on key concepts from practical drilling and hydraulic fracturing techniques to commercial opportunities, environmental factors and economic challenges surrounding the industry. This course will give you a good, practical and commercial understanding of shale gas and its emerging markets.

HSE Training

ATEX Directives 94/9/EC & 1999/92/EC Thursday 3 December 2015 SGS Baseefa, Buxton Focuses on key concepts from the basics of explosions, the origins of ATEX and workings of protection concepts to the legal framework of the directives and how to comply.

For more information on our courses please contact: terri.sylvester@the-eic.com www.the-eic.com

@TheEICEnergy

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November 2015

New Members

New EIC Members New Global Member

New Primary Member

Ramsden Road Rotherwas Industrial Estate Hereford HR2 6LR Tel +44 (0)1432 365 000 Email steve.hayward@bijurdelimon.co.uk Web www.bijurdelimon.com The Nominated Representative is Mr Steve Hayward, Managing Director. Bijur Delimon International, the Lubrication Group of Industrial Manufacturing Company International, is made up of six lubrication and cooling companies: Bijur, Delimon, Farval, Denco Lubrication, Lubrimonsa and LubeSite. BDI is a global leader in the design and manufacture of heavy-duty grease systems, oil recirculation systems, light duty oil systems, mobile fluid grease applicators, single point lubricators, and cooling and chilling units. With this range of offerings, BDI can lubricate everything from steel mills and oil refineries to truck chassis and single bearings. Facilities in the United States, China, France, Germany, Ireland, the United Kingdom, Austria, India and Spain.

Ty Allforol Euro Business Park Angel Lane Aberbargoed CF81 9AG Tel +44 (0)1443 828 180 Email toby@eurosourceltd.co.uk Web www.eurosourceltd.co.uk The Nominated Representative is Mr Toby Richards, Sales Director. Eurosource Ltd is a stockist and supplier of pipe, fittings, flanges and valves to the oil and gas, energy and utilities industries. The company is an expert in steam, high performance valves and much more. With ISO:9001, ISO:14001 and OHSAS:18001, Eurosource is fully FPAL Achilles approved and UVDB Nuclear certified. Eurosource is focused on innovative developments, maximising the use of modern technology and cloud based services to improve procurement and supply management. eOPS (Eurosource Online Procurement System) allows for complete access to an online eCatalogue, order progressing and all documentation; enabling Eurosource and its customers to maintain a fully transparent working relationship.

Eurosource Ltd

Bijur Delimon International Ltd

New Global Member

International Professional Risks Ltd

50 Fenchurch Street London EC3M 3JY Tel +44 (0)20 7621 7922 Email mj@iprins.com Web www.iprins.com The Nominated Representative is Mr Mark Jones, Financial Controller. International Professional Risks (IPR), founded in 2003, is a Lloyd’s insurance and reinsurance wholesale broker specialising in casualty risks. IPR’s core activity is the intermediation of insurance business produced by a selected number of producing brokers who seek elevated service levels and high technical input. IPR also manages the relationship among coverholders, managing general agents (MGAs) and the Lloyd’s syndicates which support them. Its core activity as a broking firm dealing with Italian professional indemnity business of all types rapidly evolved into that of a pure agent for underwriters at Lloyd’s who had given IPR its support and its capacity under binding authorities.

This change in emphasis enabled the company to grow and brought about the creation of the underwriting agency Furness Underwriting, to which all of the binding authorities and business managed by IPR were transferred in 2008.

IPR offers advice, consultancy and assistance to its clients in search of tailor-made and innovative insurance solutions. The corporate focus on ongoing training and the staff’s highly technical level (both broking and claims personnel) make it possible for IPR to be the partner of choice for Italian insurance intermediaries and to keep offering highly technical insurance/reinsurance products, either open market solutions or ‘turn-key’ affinity schemes in several classes of risk. www.the-eic.com

@TheEICEnergy

New Primary Member

Pharos Marine Automatic Power Inc

Steyning Way Hounslow Middlesex TW4 6DL Tel +44 (0)20 8538 1110 Email ojames@pharosmarine.com Web www.pharosmarine.com The Nominated Representative is Mr Owen James, Managing Director. Pharos Marine is a world leader in customised engineering solutions and provider of aids to navigation products for the oil and gas and renewable energy sectors. With over a century of accumulated experience, Pharos Marine is continually working on adapting new technologies to meet the world’s energy challenges for the most complex offshore/onshore infrastructures in the oil and gas and renewables sector. With expert understanding of ATEX and IEC hazardous area equipment, worldwide commissioning abilities, multi-vendor equipment solutions, and as an original equipment manufacturer, Pharos Marine provides products that improve reliability, increase efficiency, and enhance safety. The aim is to be the market leading aids to navigation organisation who consistently deliver world class customer service for a global customer base who require bespoke, friendly and environmentally responsible service excellence from their trusted supplier.

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November 2015

Contracts Consultancy Ltd is a global oil and gas technical and commercial recruitment and project resource consultancy supplying personnel and service to the main global energy (oil and gas) firms.

AVEVA

AVEVA has launched its new apprenticeship scheme. Started in October 2015, young people have the opportunity to begin work as software developers at one of Cambridge’s most successful international software companies.

Working with training partner Firebrand, AVEVA will offer a higher education Level 4 programme, which involves two years’ job training and carries accreditation from the BCS, the Chartered Institute for IT. Hilary Wright, EVP Human Resources, AVEVA, said: “We have long been supporters of young people entering industry through our graduate opportunities and internships. It is a concern to us that talented potential engineers would miss out on the opportunity of a long and worthwhile career, especially in an area where there is a critical skills shortage. We are delighted that the government has now recognised the need for the software development apprenticeship which gives us the opportunity to offer a highly skilled job role to a young person.”

AVEVA has offered students and graduates work-placements for a number of years. The current AVEVA graduate programme offers up to two years of rotational placements across the business and is endorsed by the Institute of Leadership and Management (ILM).

Visit: www.aveva.com

In Europe CCL is headquartered in London, in the US in Houston, with companies in Ireland, Scotland, Norway, Cyprus, Tanzania, Mozambique, Canada, Australia, Singapore and South Korea. For more information on CCL visit: www.cclglobal.com

CCL Global has announced the promotion of Richard Holmes to Operations Director, taking over from David Giles, who is leaving after 30 years.

DNV GL has been awarded a contract for the provision of marine warranty, operations and consultancy services for the Shah Deniz 2 project operated by BP Exploration (Shah Deniz) Ltd.

Peter Maltby, Chairman and CEO, said: “Richard Holmes has been directly involved in the recruitment of our contractors for over 10 years, giving great continuity on payroll and mobilisation, on which we base our reputation as a leading specialist provider of services to the oil, gas and energy industries worldwide. Chris Maltby continues our growth in the US, with Jon Cox in London, alongside Finance Manager Kris Macnamara.

DNV GL will support the operator in assuring the project equipment, transportation and installations are conducted to recognised guidelines, standards and internal requirements.

“David Giles has been an invaluable part of CCL’s senior management team for over 30 years. During this period he has been responsible for a wide variety of activities including business development, client account management, recruitment, contract formulation and administration, relationships with local partners and generally ensuring that CCL provides clients with a good service wherever such services are required.”

Shah Deniz Stage 2, or Full Field Development (FFD), will help increase European energy security by bringing Caspian gas resources to markets in Europe for the very first time. The project will add a further 16 billion cubic metres per year of gas production to the approximately 9 bcma produced by Shah Deniz Stage 1.

David Giles said: “I have been happy to contribute to CCL’s success. Now is the right time for me to move on and I look forward to fresh challenges ahead. I wish Peter and the CCL team every success in the future.” www.the-eic.com

MEMBER NEWS Charles Henderson, DNV GL’s Marine Warranty Services (MWS) Team Leader, said: “We were delighted to be advised of our success in the award of this project.

The drive to ensure the project is conducted safely and efficiently is paramount, and DNV GL will be proactively supporting BP’s safety culture and ensuring the risks associated with ‘temporary works’ and marine operations are adequately mitigated.

“Our MWS are supported by the in-depth knowledge of our practitioners and the delivery of this project will draw upon the support of personnel within the group’s marine, engineering, dynamic positioning, metocean and geotechnical teams.”

A key area of focus for DNV GL has been the development and training of local personnel to maintain skills and support long-term cost reduction and sustainability for the local industry and community.

DNV GL has been providing integrity management on Shah Deniz 1 for the past ten years. For more information please visit: www.dnvgl.com

PJ Valves’ new office APAC, was set up in Singapore in early 2015 to offer PJ Valves’ products, expertise and services within the Asia Pacific region.

The office was created due to the market being very mature and well established, so to move to the market and be successful, PJV had to offer something different to customers.

By introducing its technical expertise, values and attitudes to the region, PJV has seen significant order wins through major projects, both onshore and offshore. Steven Charles, Managing Director, PJV, said: “The APAC office makes PJV a truly global business, and aligns with our philosophy of offering local support to our customers.”

The company has driven significant cost savings to clients. As such, it is pleased to have had such a strong start in the region.

As a result of these successes in the first 6 months, the office is expanding. PJV is still located in the Metropolis Tower 2, however it has moved to a larger facility. Please visit: www.pjvalves.com

Sparrows Group has won a fiveyear deal with Abu Dhabi Marine Operating Company (ADMA-OPCO) in the Middle East.

© 1996-2015 BP p.l.c.

The successful re-tender through the company’s local partner, Abu Dhabi Oilfield Services, will see Sparrows Group providing the operations and maintenance support to all cranes and lifting equipment aboard offshore platforms and the Al Hyleh barge in the UAE and Zirku Islands.

The agreement, which covers ADMA-OPCO’s offshore installations – the Umm Shaif Super Complex, Zakum West Super Complex and the Zakum Central Super Complex – is initially a three year contract with the option for two one year extensions.

Our strong reputation for quality and a client focused delivery is proving to be particularly appealing to operators in the region.

Stewart Mitchell, CEO, Sparrows Group Stewart Mitchell, CEO, said: “The work involves providing the total integrated management of cranes and other lifting equipment which optimises the performance and reliability of all safety critical lifting operations.

“As well as providing offshore personnel who are supported by our onshore staff in Abu Dhabi and worldwide we will be supplying preventative maintenance, repair and refurbishment, spare parts, and comprehensive technical support.”

In addition to being experts in lifting and handling, Sparrows Group is a specialist in the provision of engineered products and services in cable and pipe lay and fluid power to the energy industry.

The firm has been expanding in the Middle East with bases in Abu Dhabi and Al Khor (Qatar), and recently opened new regional headquarters in Dubai. Sparrows Group has also formed a strategic partnership with the Zamil Group in Saudi Arabia.

Visit: www.sparrowsgroup.com @TheEICEnergy

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Blockages in deluge fire protection system nozzles are a common issue faced by oil and gas operators globally. These issues occur on deluge systems, old and new, and are caused by corrosion, salt and scale marine growth and other environmental impacts. Such occurrences may have disastrous consequences should a fire occur and the deluge system fails to adequately discharge water.

Stork

Stork, a global provider of knowledge-based asset integrity services focused on the oil and gas, chemical and power sectors, has successfully installed Emerson Process Management’s Roxar SandLog wireless sand erosion monitoring solutions on a North Sea operator’s installation.

The new wireless devices provide flexible, cost effective and highly accurate online monitoring of sand erosion from the field, helping to extend equipment life and increase production from reserves.

Stork’s monitoring solutions capabilities provide operators with the means to monitor the rate of erosion on their assets, identifying and continuously reporting on areas of concern, and enabling the planning of effective remedial work.

Monitoring erosion on essential lines is vital, as it contributes to the failure of equipment and loss of containment, as well as posing a risk to personnel and the environment.

Rod Agnew, Vice President for Service Delivery at Stork, said: “With over 30 years’ experience, Stork’s monitoring solutions department is uniquely positioned to deliver a range of traditional and advanced techniques for monitoring the rate of corrosion, erosion, stress, temperature, strain or intrusion on pipelines both on and offshore.

“Working in collaboration with companies such as Emerson ensures Stork is at the forefront of technological advancements that are safe, cost effective and deliver operational efficiencies for our clients.”

The Roxar SandLog wireless transmitters reduce installation costs compared to wired online systems and enable monitoring in previously inaccessible areas. They are one element of Emerson’s complete asset integrity system that also includes the Roxar CorrLog corrosion monitoring transmitters.

Operators can also access Roxar Fieldwatch, Emerson’s windowsbased field monitoring system for rigorous analysis of the data generated.

The Roxar CorrLog and SandLog wireless transmitters are certified to industry standards, including ATEX. For more information please visit: www.stork.com/en

Tyco has acquired the exclusive global rights to manufacture, distribute and install RigDeluge® Concentric Flow Technology™ and Free Flow Nozzle Technology™.

RigDeluge® is an Aberdeen based innovation specialist focused on delivering efficiency and safety for the oil and gas industry.

Concentric Flow Technology™ and Free Flow Nozzle Technology™ enhance the system’s resilience and eradicate system blockages even when debris exists; this coupled with a resilience maintenance programme will ensure the system will operate correctly 24/7/365.

Concentric Flow Technology™ and Free Flow Nozzle Technology™ overcome the environmental challenges that are present in the oil and gas industry and these technologies are featured in a range of equipment designed for installation in fire deluge and heat suppression cooling systems for oil and gas assets globally.

Simon Rooks, Operations Director at Tyco, who made the strategic announcement during the company’s presence at Offshore Europe 2015 commented: “We are delighted to have acquired the exclusive global rights to manufacture, distribute and install the RigDeluge® technology, which provides a genuinely innovative, practical and cost effective solution to what can be a costly and potentially dangerous issue for onshore and offshore oil and gas operators.

“This announcement highlights our on-going commitment to a comprehensive and specialist portfolio that features cutting edge engineering solutions to help our customers to reduce hazards, risks, environmental issues and costs – while enhancing safety and efficiency.”

For more information regarding Tyco fire and security solutions visit: www.tycofis.co.uk www.the-eic.com

MEMBER NEWS

The agreement will see the Aberdeen-headquartered firm providing condition monitoring services to five CNR platforms in the North Sea. Having already provided cover to CNR International’s UKCS assets over the past eight years, this latest contract will take XPD8 to a decade working for the Canadian independent oil and natural gas production company.

Gordon Ellis, Operations Director, XPD8, said: “The downturn facing the oil and gas industry has made it more important than ever for operators to know their equipment is working at optimum levels.

Effective condition monitoring is crucial in ensuring that production continues at the desired rate. In addition, the correct system will flag up where machinery is not running efficiently, helping to avoid breakdowns and the costs this ensues in downtime and repairs.”

Earlier this year the company revealed it had secured a contract in Ghana with Tullow Oil to migrate its existing computerised maintenance management system (CMMS) to the Maximo software package.

The system supports planning, scheduling, performance monitoring and reporting of asset integrity key performance indicators at the Jubilee floating production, storage and offloading vessel.

XPD8 has received ISO 9001 accreditation for its quality management systems which ensures high standards throughout the business. Visit: www.xpd8solutions.com

Xodus

Asset integrity management specialist XPD8 Solutions has secured a significant two-year contract with CNR International.

Xodus Group and TNO have completed the first phase of a pioneering joint industry project (JIP) into the dynamic forces which affect the integrity of piping systems, in particular through multiphase flow.

The second phase of the project, which is expected to be run across three stages, is now open for new participants to join.

Eight companies were involved in the first phase of the project: BP, Statoil, Total, Suncor, Shell, Lundin, Aker Solutions and FMC. TNO carried out the bulk of the test work at their facilities in the Netherlands, while Xodus managed the programme and developed CFD schemes to be able to reproduce the measured results. Based on the outcome of analyses by both companies, new scaling rules were produced. Additionally, CD-adapco provided software (STAR-CCM+) and carried out simulations in support of the JIP. Multiphase flow, the passage of more than one fluid, gas or chemical substance through a pipeline, can cause flow induced vibration (FIV).

As data is limited, the aim of the JIP is to investigate and understand the forces induced by multiphase flow on piping systems, and generate validation data for multiphase computational fluid dynamics (CFD) to model and analyse its occurrence.

Phase 1 was valued at more than £500,000 and involved testing on a 1.5 R/D stiff bend for a range of flow conditions. The inlet pipe to the bend had three configurations: straight, u-bend vertical and u-bend horizontal. Detailed measurements were made to analyse the forces acting on the bend, pressure and void fraction distributions upstream, downstream and within the bend.

Phase 2 is actively seeking additional sponsors and will look to extend the work carried out in Phase 1 to cover a range of bend radii. The scope is as follows: • Testing additional bend configurations • Preparation for testing at in- service conditions for Phase 3 • Additional CFD studies The goal is to raise awareness of this complex issue and increase knowledge to incorporate into advance screening, simulation and prediction models.

Mike Lewis, Global Lead Computational Fluid Dynamics with Xodus Group, said: “The JIP is addressing this area of uncertainty in the industry and will provide a benchmark in order to carry out more accurate design calculations and prediction work. This will ultimately improve piping integrity, potentially increase production, and mitigate risk in this high consequence arena.” Visit: www.xodussubsea.com @TheEICEnergy

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Events Diary

UK, Overseas & Training October 2015 27 Industry Overview Understanding Local Content 27-28 Management Course Finance for the Non-Finance Manager 28 Business Presentation Site Visit to Brasa Shipyard 29 Export Showcase Opportunities in the Norwegian Sector 29 HSE Training Understanding Offshore Containers

DNV GL, Le Monde, Rio de Janeiro Four Points by Sheraton, Dubai EIC Rio de Janeiro Crown Plaza, Aberdeen Airport DNV GL, Le Monde, Rio de Janeiro

November 2015 4 Export Showcase Opportunities in Egypt 4 Industry Overview Fundamentals of Subsea 5 Technical Workshop Introduction to FPSOs 7 Technical Workshop Introduction to FPSOs 10 Export Showcase Opportunities in Egypt 10 Technical Workshop Introduction to FPSOs 11 Industry Overview Fundamentals of Subsea 16 Technical Workshop Introduction to Control Valves 17 Business Presentation Opportunities with INTECSEA 17 Technical Workshop Introduction to Gas Turbines 18 Management Course Terms and Conditions in the Contract 19 Management Course Commercial Awareness 25 Business Presentation Opportunities with ABB 26 Industry Overview Fundamentals of Oil & Gas

EIC London EIC Houston EIC Houston EIC Rio de Janeiro EIC London EIC London EIC London Severn Glocon, West Yorkshire EIC Houston Siemens, Lincoln Four Points by Sheraton, Dubai Neos Learning, EIC London EIC Rio de Janeiro EIC Rio de Janeiro

December 2015 1 UKCS Showcase Collaboration Aberdeen 2 Technical Workshop Introduction to Shale Gas EIC London 2 Industry Overview Fundamentals of Power E.ON UK Engineering, Nottingham 3 Industry Overview Fundamentals of Oil & Gas EIC London 3 HSE Training ATEX Directives 94/9/EC & 1999/92/EC SGS Baseefa, Buxton 8 Export Showcase Oil & Gas Opportunities in Russia EIC London 8 Technical Workshop Introduction to Energy from Waste Lakeside EfW, Slough 9 Management Course Tendering for Success Rothera Group, EIC Teesside 9 Business Presentation Opportunities with Petrofac Jumeirah Emirates Towers Hotel, Dubai 10 Industry Overview Fundamentals of LNG EIC London January 2016 26 Business Presentation Opportunities with SBM Offshore

Dusit Thani Hotel, Dubai

February 2016 2 Sector Showcase

Global CCS Opportunities

EIC London

March 2016 16 Industry Overview Fundamentals of Refining & Petrochemicals EIC Houston

For further information on UK & Overseas Events and Training please contact: info@the-eic.com www.the-eic.com

@TheEICEnergy

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November 2015

Events Diary

Exhibitions & Delegations 2015

9-12 November ADIPEC

Abu Dhabi

Status Fully Booked

2016 10-15 January 18-21 January

25-29 January

31 January-

4 February

1-5 February 8-11 February 22-26 February 24-26 February

7-10 March 20-23 March

tbc March

tbc March

4-7 April

Overseas Delegation to Algeria World Future Energy Summit (WFES) Abu Dhabi Overseas Delegation to Papua New Guinea Overseas Delegation to Egypt

Booking Now Booking Now

Overseas Delegation to the Philippines Overseas Delegation to Turkey Overseas Delegation to South Korea Australasian Oil & Gas (AOG) Perth Overseas Delegation to Thailand and Malaysia Overseas Delegation to UAE and Oman Overseas Delegation to Brazil Overseas Delegation to Japan Overseas Delegation to Nigeria

Register your Interest Booking Now Booking Now Booking Now

Booking Now Booking Now

Register your Interest Register your Interest Register your Interest Register your Interest Booking Now

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

National Events

2015

24-25 November EIC Connect Energy Manchester

@EICOverseas

Status 1 Stand Left

2016

17 May 22-23 November

EIC Connect Middle East Abu Dhabi EIC Connect Oil & Gas Manchester

Booking Now Register your Interest

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

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11

November 2015

EIC Overseas Exhibitions and Delegations

Overseas Exhibitions EIC Overseas Exhibitions and Delegations Overseas Delegation to Algeria 10-15 January 2016 #EICALG16 The EIC is organising an oil and gas trade delegation to Algeria. Delegations are an excellent introduction to a new market in a supportive environment and the perfect way to strengthen existing business relationships. Delegates will have the opportunity to attend organised group meetings with key local players, as well as incorporating briefing meetings represented by qualified speakers with in-market experience and the opportunity to meet with local companies.

Algeria is the largest natural gas producer in Africa, and is among the top three oil producers within the continent. The industry is dominated by Sonatrach who are proposing to make investments of approximately £90 billion between 2015 and 2019. For more information please contact: deanne.lintorn@the-eic.com

Upstream developments like the West Mediterranean Deep Water and North Alexandria concessions, which hold estimated reserves of 5 trillion cubic feet of gas and 55 million barrels of condensates, have recently seen major EPC contract awards and several downstream projects are currently underway. Also, conventional power generation as well as renewable energy schemes are proposed in order to cope with rising demand. Now is the time to engage in this market and establish client relationships. Early bird discount is available until Friday 6 November. To secure your place on the delegation submit the application form to Amy Ford. Bookings close on Friday 4 December. amy.ford@the-eic.com Overseas Delegation to Turkey 8-11 February 2016 #EICTURKEY16 Situated between the Middle East and the Caspian Region to the east, with over 75% of global oil and gas reserves, and the European Union to the west, the largest consumer of these reserves, Turkey plays a crucial role in linking the supply and demand.

The delegation coincides with the GREAT Summit organised by UKTI which aims to bring the NOCs of Turkey, Azerbaijan and Kazakhstan together with ‘best in class’ British expertise in the areas of exploration, reservoir, well and drilling management, field integrity and asset management, gas utilisation and finance/commercial/ project management to discuss current/future development plans and opportunities. For more information or to book contact: mark.gamble@the-eic.com

Overseas Delegation to Papua New Guinea 25-29 January 2016 #EICPNG16 Papua New Guinea sits atop vast, untapped reserves of natural gas. Exploration and production activities are taking place to monetise these vast reserves. Oil and gas companies, such as ExxonMobil and Total, are in the midst of extracting these resources and working to develop major LNG terminal projects for export to Asian markets. PNG’s proven hydrocarbon reserves consist primarily of natural gas (440 bcm), followed by oil (0.660 billion barrels) and gas condensates (0.262 billion barrels). The substantial gas/ condensate discoveries in recent years have increased global awareness of the PNG gas market and hence investment in LNG infrastructure continues to increase.

The US$18 billion 9 mmtpa PNG LNG plant project by the consortium led by ExxonMobil and Oil Search was the first LNG project in PNG. The first deliveries of LNG to Taiwan, China and Japan were completed in March 2014. ExxonMobil and the PNG national oil company have already begun talks to expand this facility to add a third train. With its close proximity to Asia, and the PNG government’s strong commitment to the industry, the outlook for PNG’s oil and gas industry is positive. For more information please contact: camilla.tew@the-eic.com

Australasian Oil & Gas (AOG) 2016 24-26 February 2016 Perth, Australia #EICAOG16 The EIC is proud to be organising and managing the UK Pavilion at Australasian Oil & Gas (AOG) 2016. Due to the falling value of the Australian dollar, prices have decreased from previous years for the 2016 show.

Overseas Delegation to Egypt 31 January-4 February 2016 #EICEGYPT16 The EIC in partnership with UKTI is organising an oil and gas overseas trade delegation to Cairo and Alexandria in Egypt. With proven oil reserves of 4.4 billion barrels and proven gas reserves of 77 trillion cubic feet, Egypt is the largest nonOPEC oil producer and the second-largest dry natural gas producer in Africa. As production has stagnated over the last few years and consumption has increased rapidly, the formerly hydrocarbon exporting country has to advance oil and gas developments in order to meet domestic market growth. www.the-eic.com

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Australia is also poised to become the world’s largest exporter of LNG by 2018, with many large projects underway. Opportunities are available for UK companies to assist the key operators and contractors in both operations and projects as well as maintenance. To be part of the exhibition contact: mark.gamble@the-eic.com 12

November 2015

EIC UK News

News from our UK offices

Energy from Waste Showcase January 2016 Northern venue tbc The UK’s Energy from Waste industry has experienced steady contracting activity during 2014-15, with 24 contracts awarded including eight major EPC contracts.

With proof that increasing economic value is attached to a strong re-use agenda, the EIC is committed to tracking developments across this sector on a global level through our database EICDataStream. This event aims to provide an overview of the sector, bringing together a panel of speakers from some of the key players in the industry.

Providing insights into how these organisations operate and the potential for the supply chain, this event will be helpful to those who are looking at this as a new sector to complement their current portfolio and will also act as an update for those who already work in the arena. Further details will be available soon. Register your interest: jennifer.hole@the-eic.com

Forthcoming Events

UKCS Showcase Collaboration Tuesday 1 December 2015 Aberdeen venue tbc This showcase will focus on the changing landscape of the oil and gas supply chain by outlining how operators are beginning to collaborate. With the final Wood Review calling for greater collaboration within the industry, this event will focus on who and how to collaborate. This event will feature a panel of operators, contractors and relevant professional bodies from across the North Sea oil and gas sector to discuss the opportunities around this topic. This will be followed by an interactive question and answer session with the panel and EIC members.

Register your interest: pamela.nicholson@the-eic.com

Sector Showcase Global CCS Opportunities Tuesday 2 February 2016 EIC Conference Suite, London Via EICDataStream, the EIC is tracking global CCS projects with a combined capex of over US$53.7 billion, offering UK suppliers multiple business prospects for experienced personnel, tried and tested equipment and new technologies. The EIC, the Science Innovation Network (SIN) and the Carbon Capture & Storage Association (CCSA) have identified several ‘hot-spots’ for CCS technologies globally and will be bringing a delegation from these hotspots together to present the current and future opportunities in the sector. Further details will be available shortly, in the meantime, please register your interest to be kept up to date with plans as they are available. Register your interest: jennifer.hole@the-eic.com

Export Showcase Oil & Gas Opportunities in Russia Tuesday 8 December 2015 EIC Conference Suite, London Russia offers one of the largest petroleum industries in the world, producing an average of 10 MMbbl/d. The country also has the largest reserves, is the largest exporter of natural gas and has the second largest coal reserves globally. The EIC is currently tracking over 200 active and future upstream, midstream and downstream projects via EICDataStream, with a combined capex of US$1tn. Despite sanctions in place covering some elements of shale and Arctic exploration and production, and some deep water projects, as well as financial sanctions impacting long term loans with European banks, the Russian energy market still offers western suppliers plenty of business opportunities. The country’s geographical location and the exporting capabilities to bordering countries means that pipeline projects in particular provide a wealth of prospects for UK companies.

This showcase aims to dispel some of the myths related to doing business in Russia or with Russian clients and will highlight where the opportunities sit for UK suppliers.

Register your interest: jennifer.hole@the-eic.com

CALLING ALL EIC MEMBERS Southern Region Committee Would you like the opportunity to represent your company and help shape the future direction of the EIC within the region? If so, you can nominate yourself or a colleague for a place on the EIC Southern Region Committee.

Member Update Aberdeen Members Morning Tuesday 15 December 2015 EIC Aberdeen Join the EIC Scottish office for a festive networking session. The third in a series of free of charge, informal member updates will provide a roundup of the EIC’s activities for 2015 and highlight the forward plan for 2016. Converse with fellow members on local market challenges, share solutions and consider collaboration prospects during the open floor discussion. For updated information on the guest speaker and to book your free place please visit the EIC website. Register your interest: pamela.nicholson@the-eic.com

The EIC Regional Committees meet four times a year at various locations across the region, with representation from a wide range of disciplines. Committee meetings enable members to discuss market trends and industry news; feedback on regional activities; suggest topics and speakers to include in our events programme and also afford plenty of networking opportunities.

Being part of the Committee provides an excellent platform to raise your personal and company profile.

For details contact: charlotte.hust@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

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13

November 2015

EIC National Events

EIC NATIONAL DINNER 2015 15 OCTOBER 2015, NATURAL HISTORY MUSEUM

The EIC would like to congratulate SPX Flow for being the winner of this year’s EIC Award for Supply Chain Excellence at the EIC National Dinner.

Presented in front of over 500 members and guests at the Natural History Museum, London, the accolade recognises technical innovation in the energy supply chain.

See p2 for more on SPX’s entry and the runners up.

Bookings for next year’s dinner open at the end of this year. To reserve your place please contact: charmaine.atkinson@the-eic.com

Photos © Owen Billcliffe 2015

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November 2015

EIC National Events

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15

November 2015

EIC Middle East News

Middle East News

Overseas Delegations We have two trade delegations planned for early 2016, both of which will feature two locations. The first is Algeria where once again we will be looking at Algiers, before moving on to Hesse Massoud. The other is Egypt where economic developments appear in the news almost daily. Here, we will start off in Cairo before moving on to Alexandria where the majority of offshore activities are based. Both locations are familiar to us, having successfully delivered delegations there over the past 10 years.

Office News

ADIPEC November will see us playing host to the largest overseas UK pavilion when ADIPEC (Abu Dhabi International Petroleum Exhibition & Conference) kicks off on 9 November. It is now a truly global event and follows on from OTC six months ago, which is traditionally regarded as the prime gathering of the worldwide energy fraternity.

Once again, we will hold an ‘ice breaker’ reception on the evening before the conference and for this, we very much appreciate the contribution from our two sponsors for the night, Amec Foster Wheeler and UKTI.

Visitors Looking at visitors to the office, we were pleased to welcome Jonathan Guest and Lawrence Cobain who were making a regional visit. Peter Brimstone popped in from Thomas & Betts, as did Ahmed Kamesh from Goodwin Group and Phil Wood from CMP Products.

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

Saudi Arabia Oil & Gas Exhibition Later in the month we intend to make a visit to the Saudi Arabia Oil & Gas Exhibition in Dammam, Saudi Arabia from 23-25 November. In its seventh edition, the event continues to push for better take-up, especially in the challenging climate across the general energy sector in contrast to the continued high volume of project activity that remains buoyant within the Kingdom.

Forthcoming Events Management Course

Understanding Terms and Conditions in the Contract Wednesday 18 November 2015 Four Points by Sheraton, Dubai

Other events and training Our last two events featuring McDermott and Technip were extremely well supported and we have no fears that our lunch with Petrofac will also be popular.

Regarding training, while we have been pleasantly surprised at the positive response to our course on Understanding Terms and Conditions in the Contract, it is proving a challenge to identify topics that we can be sure would spark a similar degree of interest to members, especially during the current period of austerity. At the same time however, one could argue that this is the perfect time for companies to improve the skills of their personnel in order that they are better equipped for when the industry turns the corner, which it no doubt will.

Business Presentation Opportunities with Petrofac Wednesday 9 December 2015 Jumeirah Emirates Towers Hotel, Dubai To register your interest or to book on the above courses please go to www.the-eic.com/Training or contact Helen Aittis: helen.aittis@the-eic.com

Regional Comment

Petrofac wins first project in Bahrain Petrofac has been awarded a contract to install a new gas dehydration facility in Bahrain. The contract – awarded

by Tatweer Petroleum – represents the first project for Petrofac in the country. The new facility will have a capacity of 500 million standard cubic feet per day and is the first step of Tatweer’s development plans aiming to secure natural gas supply. Several gas capacity projects are scheduled over the next three to five years in order to cope with the soaring gas demand in the Kingdom.

Iran Since the historic agreement between Iran and the international community, there has been a high degree of expectation that Iran will be the answer to all the current concerns that companies are facing across the energy sector. Certainly the future is bright and perhaps companies need to be thinking about how they may be able to reap any benefits at the time when the sanctions are lifted but in reality, this is not expected to happen any time this year. Early 2016 seems to be the bookie’s favourite.

Our London colleagues delivered an excellent showcase in September that fully detailed all the current pros and cons and it is our intention to have a similar event in the UAE in March next year, which will be closely followed by a trade delegation. For the intervening period, we remain in close contact with UK Government representatives and would be happy to answer any questions that may arise while companies are examining their strategic options.

Saudi Arabia to Bahrain pipeline contracts awarded Contracts for the construction of the 115km Saudi Arabia to Bahrain pipeline have been awarded to Saudi Arabia’s Al-Robaya Holding Company and the UAE’s National Petroleum Construction Company (NPCC). AlRobaya’s scope includes onshore EPC work in Saudi Arabia and engineering and procurement for the Bahrain end of the pipeline, while offshore EPC work will be covered by NPCC. The 350,000 bpd oil pipeline is due for completion in early 2018.

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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16

November 2015

EIC Asia Pacific News

Asia Pacific News

Forthcoming Events

Business Presentation Opportunities with Muhibbah Engineering December 2015 date tbc EIC Kuala Lumpur

Office News

Industry players have begun to take firmer actions to mitigate the impact of the low price of oil on their businesses. With prices unlikely to bounce back to triple digits any time soon, certain changes have occurred.

Business Presentation Opportunities with Petrofac E&C December 2015 date tbc EIC Kuala Lumpur

Reduction of capex and opex Most operators have decided to cut expenses by 1025%. These reductions have led to: • Projects that have not received FIDs being deferred.

• Projects being re-engineered, with lower standards and specifications, and schedules being reworked to accommodate lower budgets.

• Vendors and suppliers being invited for discussions on ways to reduce costs.

• Project organisation restructured to improve efficiency.

Business Presentation Opportunities with Fluor Daniels December 2015 date tbc EIC Kuala Lumpur If you need any assistance or advice in the region or for more information about upcoming events, please contact: Azman Nasir, Head of Asia Pacific Contact: azman.nasir@the-eic.com

Industry consolidation Businesses have undergone or are going through mergers and acquisitions exercises. For example, plans have been put in action by the Chinese government to merge the three major Chinese operators: Sinopec, CNOOC and CNPC, to become one large company. Some IOCs are selling their interests in unproductive blocks and other smaller operators have decided to sell their interests to larger players. Two common themes drive these measures which are: efficiency and cost management.

Regional Comment

Malaysia Muhibbah/VA Tech consortium awarded RAPID project Muhibbah Engineering, in a consortium with Bombaylisted VA Tech Wabag Ltd, has won a US$226 million contract from Petronas to build an effluent treatment plant for the refinery and petrochemical integrated development (RAPID) project in Pengerang, Malaysia. Muhibbah said the purpose of the integrated effluent treatment plant is to reduce the pollution in the aqueous effluents of the RAPID complex to below the regulatory discharge limits. The contract is expected to be completed by the end of 2018.

Industry reforms China, India and Indonesia have recognised that policies within their respective systems have contributed to unnecessary costs. With the advent of the low oil price, these problems have become more evident, hence the governments of these countries have started to introduce measures such as ‘one-stop approvals’ and various tax structural changes to improve the situation and ultimately encourage more investments in E&P. China, for example, has removed preference mechanisms towards stateowned enterprises in bidding for projects in order to make the playing field more equitable for international players.

Japan Fukushima-Daichi nuclear plant awards new orders Fortum of Finland has received new orders to the tune of several billion dollars from American company EnergySolutions for its Nures ion exchange materials for the purification of radioactive water at the FukushimaDaiichi nuclear power station in Japan. Fortum’s ion exchange materials have been used in the advanced liquid processing system (Alps) at Fukushima-Daiichi to purify radioactive waters for the past three years.

We continue to assist members through networking and supply chain events, the latest being a supply chain briefing by the Pengerang RAPID project, which 29 participants attended, including member companies based in Shanghai, Jakarta and Singapore. In October, we organised a trip to Sabah State, East Malaysia to gain a better understanding of the oil and gas projects being undertaken by international players such as Petronas Sabah, Sabah Shell, Repsol, Lundin, ConocoPhillips, Technip and Sapura Kencana Petroleum.

India Punj Lloyd secures US$75 million order Punj Lloyd of India has secured a US$75 million order from Japan’s Mitsubishi Heavy Industries (MHI) for the Ennore LNG project. The scope of work includes geotechnical investigation and early earthworks as part of the construction of two 180,000 cbm tanks for Indian Oil Corporation’s LNG import project at Ennore port in Tamil Nadu. MHI has recently received an EPC order from Indian Oil to construct two storage tanks for the first LNG-receiving terminal to be constructed on India’s east coast. The tanks are expected to be completed in the spring of 2018. The terminal will initially have capacity to handle 5 million metric tonnes per annum.

We were pleased to receive visits from Sam Mackay and Peter Beales from Asset Guardian, Ruari Kerr from Kentz, Denis Hardy and Ivan Choo from Weir Group and Martyn Nuttall from Corrotherm.

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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17

November 2015

EIC North and Central America News

North and Central America News Office News

Regional Comment

Pemex and GE sign MoU The memorandum sets the framework for the two to work together on technological and financial solutions for gas compression, power generation and hydrocarbons production, onshore and offshore, including subsea and downstream. Also, GE will explore opportunities for the local expansion of its manufacturing and engineering capabilities, and will foster the implementation of technologies based on the industrial internet. One example of GE’s partnership with Pemex is the rejuvenation of a fertiliser facility located in Pajaritos. GE will provide a full turnkey installation solution that renews the facility’s performance and efficiency.

We continue to see the success of our members in market, with continued interest in EICLaunchPad services. We currently have eight offices available with many members looking at these spaces, utilising our virtual office services and hotdesks in Houston. For those members looking to expand in the North & Central America region, please contact us for further information.

Last month we hosted an EICDataStream training course following Houston’s official launch of the updated system. We will host additional training on thursday 12 November, before moving back to quarterly training opportunities. We have a focus on offshore oil and gas this month, with an industry overview on subsea taking place on 4 November, a technical workshop on FPSOs on 5 November, and a business presentation by INTECSEA on 17 November (date subject to change).

We hope members will join us at these valuable events.

Forthcoming Events Industry Overview

Emerson signs 10 year agreement with BP The global agreement will see Emerson Process Management provide automation technologies and aftercare services for BP’s upstream operations. The scope supports BP’s Field of the Future® programme for enhanced operating efficiency and oil recovery. Emerson will continue to supply automation system technologies and will now also provide valves and measurement instruments. As main automation contractor, Emerson will also continue to deliver a range of project and support services that include system engineering, installation, configuration, testing, and ongoing support.

Technical Workshop

Partners to pursue unconventional exploration in Mexico The Mexican private equity fund EIM Capital and the oil and gas operator American Energy Partners will explore development opportunities in Mexico’s untapped unconventional energy resources; the country holds more than 60 billion barrels of shale resources, which would provide over 35 years of US oil supply at current US production levels.

Fundamentals of Subsea Wednesday 4 November 2015 EIC Houston The industry overview will provide attendees with an understanding of the fundamentals involved in subsea production; including two main topics – subsea production systems (wellheads, trees, manifolds and subsea controls) and umbilicals, flow lines and risers.

Introduction to FPSOs Thursday 5 November 2015 EIC Houston This technical workshop examines the fundamental key components of FPSO technology and deployment, including design, systems development, subsea engineering, operations and export activities.

BOEM to hold New Jersey offshore lease auction The Department of the Interior’s Bureau of Ocean Energy Management (BOEM) has said that 343,833 acres off the coast of New Jersey will be offered for commercial wind energy development in a competitive lease sale on 9 November. If fully developed, the New Jersey Wind Energy Area (WEA) could support at least 3.4GW of commercial wind generation. Under the terms of the final sale notice, the New Jersey WEA will be auctioned as two leases: a south lease (consisting of 160,480 acres) and a north lease (consisting of 183,353 acres).

Business Presentation Opportunities with INTECSEA Tuesday 17 November 2015 EIC Houston INTECSEA is a global company within the WorleyParsons Group and offers capabilities for floating systems, offshore pipelines and subsea production systems.

Bill Westcott, Director of Business Development – Americas, will provide EIC members with an inside look at INTECSEA’s corporate structure and values, current projects and procurement opportunities.

Siemens sets 15 year goal to become climate neutral Siemens has made a goal of becoming climate neutral by 2030. In doing so, Siemens would become the world’s first major industrial company to achieve a net-zero carbon footprint. Within five years, the company plans to cut its carbon dioxide emissions by 50%. Its emissions currently measure about 2.2 million metric tons a year.

Amanda Duhon Regional Manager (North & Central America) Contact: amanda.duhon@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

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18

November 2015

EIC South America News

South America News

Forthcoming Events Technical Workshop Introduction to FPSOs Saturday 7 November 2015 EIC Rio de Janeiro

Office News

If your company needs a presence in Brazil, but is not yet at the stage of having a physical office, then the EIC has a great solution to offer in the format of a virtual office.

Business Presentation Opportunities with ABB Thursday 25 November 2015 EIC Rio de Janeiro

The Rio office remains keen to support UK companies in settling in and members interested in coming to the region can use our fully-furnished rooms. For further details, please email us at: rio@the-eic.com

Industry Overview

Fundamentals of Oil & Gas Thursday 26 November 2015 EIC Rio de Janeiro

With the end of the year rapidly approaching, we ask our members to keep Thursday 3 December free, when we expect to be holding our year-end cocktail party in Rio. Details will be announced shortly on the EIC website.

Regional Comment

Brazil energy plan released The government’s Energy Planning Authority (EPE) has released a draft of the country’s Ten Tear Energy Expansion Plan for 2024 (PDE 2024). The document provides a guideline for the expansion of power sources in the country over the next decade, serving as the basis for power auctions and government policy.

According to the plan, approximately 27% of Brazil’s power generation matrix will consist of complementary renewable sources by 2024, which include wind (11.6%, 24GW), solar (3.3%, 7GW), small hydro (3.8%, 8GW) and biomass (8.7%, 18GW). Conventional hydro plants will continue to play a major role in the country, with an expected share of 56.7% (117GW). Installed capacity from thermal power plants is expected to represent 14.3% (29.5GW).

Despite the introduction of new capacity, the participation of renewable sources in Brazil’s power matrix is expected to remain roughly the same, at 84%.

UK oil firms planning drilling campaign Chariot Oil & Gas and Premier Oil have announced plans to begin drilling off the north eastern coast of Brazil. Both companies have requested environmental permits for 3D seismic works and expect to start drilling in 2017. Chariot is the operator of four blocks in the Barreirinhas Basin, while Premier operates two blocks in the Ceará Basin.

South American visitors to the EIC Offshore Europe pavilion (from left to right): Andrew Wright, Director at UK Colombia Trade; Richard Hyde, new Head UKTI Caracas; Ian Mason, Head of UKTI Caracas; Clarisse Rocha, Head of Americas at the EIC, and Virginia Nieto, Venezuela Oil & Gas UKTI Officer.

In September I attended Offshore Europe in Aberdeen where I presented opportunities in the region and met over 50 companies, including all exhibitors in the UK pavilion, to understand their interests. Delegations from Colombia, Mexico, Venezuela and Brazil visited the exhibiting companies and meetings were held in the lounge.

Petroperu may become E&P player Peru’s state-owned oil firm Petroperu, whose activities are focused on refining, storage and distribution, could see itself involved in exploration and production activities in the country after a 20-year hiatus.

Congress voted in favour of a legislative measure allowing the company to become the operator of Block 192, the country’s largest oil production licence.

The move was prompted by the government’s decision to award Pacific Rubiales, a Canadian oil company with a strong presence in South America, a two-year service contract to continue production at the block, which today stands at 12,000 bpd.

Dates have been confirmed for an overseas delegation to Brazil in Rio de Janeiro on Monday 21 March 2016 in partnership with UKTI as part of the Energy Showcase.

If you need any assistance or advice in the region or for more information about upcoming events, please contact: Clarisse Rocha, Head of Americas Contact: clarisse.rocha@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

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November 2015

If you would like more information or are interested in becoming an EIC member, please contact: 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 EIC Northern Region Unit 1, Business Village, Chapell Lane (South), Wynyard Park, Stockton-on-Tees TS22 5FG Tel +44 (0)1642 379 972 Email teesside@the-eic.com 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 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 EIC Asia Pacific Lot 17-01, Level 17, Menara HLA, No 3 Jalan Kia Peng, 50450 Kuala Lumpur, Malaysia Tel +603 2725 3600 Email kualalumpur@the-eic.com 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 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

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