european oil and gas issue 100 early edition
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The latest edition of European Oil and GasTRANSCRIPT
oil&gasf r o m e x p l o r a t i o n t o e n d u s e r
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europeanoilandgas.co.uk
this issUE: Energy contracts
energy worksoil and gas growth is increasing career opportunities
striking a balanceoperators should move towards a data-centric world
Buildingrelationships
relationship risk and the challenges of partnership working
As the oil and gas industry expands, project
complexity increases, and in this environment collaboration
and partnerships are essential to successful operations.
Of course, in that increased complexity the challenges of
partnership working also increase, as we discover in our lead
feature in this issue.
We were fortunate enough to gain valuable insight from Alex
Cameron and David Archer, both directors of Socia Ltd and
authors of ‘Collaborative Leadership: Building relationships,
handling conflict and sharing control’. On page four they
address the challenges of partnerships in oil and gas, pointing
out “the greatest risks in any system are at the boundaries
between one part of the system and another – and that's
never been truer than in today’s interconnected business
environment.”
If you are working in the energy industry the chances are that
partnerships and collaboration are part of your everyday life,
and with the risks that accompany this type of work, Alex and
David’s feature is essential reading. After all, as they explain,
“In an even more interconnected world in the future, the
skills of collaboration and relationship risk management will
become critical.”
editors Libbie HAmmond & mAtt HigH
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in an even more interconnected world in the future, the skills of collaboration and relationship risk management will become critical”
pLeASe nOte: the opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. every reasonable effort is made to ensure that the information published is accurate, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. the contents of the magazine are strictly copyright, the property of Schofield publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.
Chairman Andrew Schofield Group Managing director mike tulloch
Managing editor Libbie [email protected] matt [email protected] staff Writers Kirsty birkett-StubbsJo Cooperdrew dann editorial Administrator emma Harris
Art editor gérard Roadley-battinAdvertising design Jenni newmanProduction Manager Fleur ConwayProduction AdministratorVicky Howes
sales director david garnerCorporate Advertising sales david [email protected] Finlay JohnsonHead of research Philip monumentBusiness development Manager mark Cawstonresearch Managers natalie martin ben Richell editorial researchers ed Hipperson Kieran ShukriJeff Johnson
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© 2013 Schofield Publishing Limited all rights reserved
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T: +44 (0) 1603 274130F: +44 (0) 1603 274131schofield-media.com
Editors
Profiles
Regulars
8 Transvac Systems
22 Ventspils Nafta Terminals
27 Kuantan Port Consortium
29 ALE
32 Seven Seas Services
34 Essar Oil
37 Ugland Construction
39 Kongsberg Maritime
4 Lead feature Relationship risk and the challenges of partnership working
10 News A look at some of the recent developments in the oil and gas industry
12 IT Why operators should move towards a data-centric world
14 Lead feature How oil and gas growth is increasing career opportunities 18 Special feature Project complexity demands a closer eye on energy contracts
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Contents
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59 BAM Energie
63 Providence Resources
65 Karmsund
68 Wessington Cryogenics
42 Cryo AB
44 ms Neumann Elektronik
47 Top Oilfield Industries
49 Ben Line Agencies
52 CS Combustion Solutions
54 Brubakken
56 Motherwell Bridge
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42
ind the gap” – it’s a phrase every visitor
to London has heard a thousand times.
Originally recorded in the 1960s as a short
automated announcement to passengers
to watch out for the gap between the
platform edge and the tube train door at curved station
platforms, it’s become an English language cliché. But as a
safety announcement it contains a simple truth. People have
always known that the greatest risks in any system are at
the boundaries between one part of the system and another
– and that’s never been truer than in today’s interconnected
business environment.
The oil and gas sector is more experienced than most at
working in this ‘interconnected’ manner, and it might be
reasonable to suggest that some sectors newer to partnership
working (transport or Government, for example) might
have something to learn from the experience in the energy
industry. But we all know that it’s not so easy to make
these partnerships work over time. There are inherent
risks in sharing control with other organisations and being
dependent on their performance to deliver your business
objectives. And when these arrangements go wrong, the
consequences can be catastrophic. There’s no need to go over
the lessons from Macondo or Piper Alpha here, but it’s worth
reflecting on whether we are paying attention to all the right
factors in these complex interconnected situations.
Identifying relationship risksRisks that originate in your partner’s organisation, or risks
that arise because of the interaction (or lack of interaction)
between two organisations, need a place on a joint risk
register. They also need to be watched carefully because these
relationship risks have their own peculiar characteristics that
make them particularly difficult to manage.
US Defence Secretary Donald Rumsfeld was ridiculed
for his remarks about ‘unknown unknowns’ with regard to
Iraq’s links to terrorist organisations, but there was some
truth behind his scrambled syntax. Conventional risks
registers deal in ‘known knowns’; risks whose impact and
likelihood can at least be reasonably estimated. These risks
are comfortable for engineers to handle, but when risks are
being managed across an organisational boundary, things are
never that transparent. It’s difficult to interpret the potential
warning signs that may be seen coming from within your
partner’s organisation and, in turn, it’s difficult for them
to understand the signs from your organisation. Trying to
manage relationship risks brings us into the world of ‘known
unknowns’ and ‘unknown knowns’.
Known UnknownsIn these situations you know your own organisation has
some vulnerability to how your partner may operate and
you may be unsighted on their lack of technical competence,
M
DavID archer andalex cameron discuss relationship risk and the challenge of partnership working in oil and gas
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Buildingrelationships
Belowdavid archerdirector of socia ltd
Belowalex cameron director of socia ltd
Lead one
transparency and unwillingness of one partner to talk to
anyone else about a problem because they think they have it
under control again creates an unquantified risk.
However, in order to build a resilient collaborative
partnership – to be able to explore the known unknowns
and the unknown knowns - both sides must be committed
to talking about their attitude to risk and to understand their
own and their partner’s risk profile. In our experience this
goes far beyond a simple high, medium or low risk profile
rating and means understanding more about your partner’s
business, its culture and its history.
All our attitudes to risk are informed by what we have
seen going wrong in the past, the price we have paid for it
and the lessons we have drawn from the experience. But
how does the industry put this experience into practice?
Tackling relationship risk When it comes to addressing relationship risks and
building a management framework for handling them
successfully, we can’t just depend on the usual approaches
to risk management and the creation of risk registers. It
comes down to a balance between three aspects of how
the partnership is run, namely Governance, Operations
and Behaviours. Of course the amount of effort required in
each will depend on the specifics of the situation you face,
but a risk management plan that only addresses one or two
the capability of their subcontractors, etc. But what is largely
unknown is the likelihood of your partner triggering this risk
by their actions. It’s difficult to get your partner to let you
know their vulnerabilities, particularly if they have over-sold
their capability when they contracted with you.
This is particularly true when partners are working
across different organisational cultures: all the subtle
cues that would indicate that something is wrong aren’t
there. In fact, there may be cultural barriers to discussing
problems or failings, and so the risk to project, well or
developments are unquantified.
Unknown knownsThen there are the situations where you simply don’t know
what your partner knows – the unknown knowns. These
could be instances where your partner has uncovered a
problem or a potential risk and is working very hard to
resolve that part of their process before telling you, or anyone
else, about it. These situations can sometimes be described as
‘guilty knowledge’.
These may be risks that haven’t been considered: issues
that had not been conceived as likely ever to pose a problem.
And from your partner’s point of view, these can look like
risks that are contained totally within their own business:
things that are their responsibility to resolve, with little
or no knock-on impact on their partners. But the lack of
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people can make mistakes, but the consequences are much
more dangerous. A robust relationship risk system will
incentivise partners to identify these early indicators and
communicate them early to partners.
Behaviours: Formal risk governance and efficient joint safety
management systems are essential foundations for relationship
risk management, but they are not enough. The behaviour of
leaders plays a crucial part in setting the culture of the rela-
tionship and building its appetite to risk. Like any marriage,
strong enduring relationships don’t happen by accident and
they have their ups and downs. Business relationships also
need tending carefully too. This means leaders must recognise
the need to invest their own time and resources in building
those relationships when the partnership is going well so that
the goodwill built up can be drawn down when times are
tough. If these relationships cross cultures, as they so often do
in the oil and gas sector, this can be seen as a reason to keep
your distance. But this natural reticence should be tempered
by the need to establish open and effective communication
and trust in these relationships. This has to be the priority for
the leaders of the partnership.
The future is more collaboration and so more relationship risksThe response to the high profile disasters of the past
means more scrutiny from regulators and new ways to
respond to avoid environmental impacts. Take the example
of the industry-owned co-operative Oil Spill Response
Ltd, which exists to respond to oil spills and works with
other industry organisations to share experience and
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of these areas will be less resilient than one that addresses
all three. And this needs to be set up at the start of any
new partnership – at the point where the ink is still wet on
the new contract and there is sufficient goodwill to make
it work.
governance: The first step is to build relationship risk man-
agement into the formal governance process. All organisations
and projects have risk registers that should be reviewed. But,
in our experience, these risk registers often don’t focus on
the partners’ real worries and fears. Issues as complex as the
relationship between organisations are rarely identified in
these documents. If the future success of the venture depends
on building strong partnerships, then there needs to be an
agreed process to check that the risk register reflects the need
to manage relationship risks that could be overlooked. This
will mean addressing some sensitive issues that can’t always
be quantified but are likely to be the issues that keep partners
awake at night.
operations: Operationalising the early warning systems is an
important factor in the effective management of relationship
risk. Experienced managers pick up signs intuitively – some-
thing just doesn’t feel right – but, between organisations, these
feelings are often dismissed. These early indicators might
include one party being excluded from a task, a key person
being unable to attend an important meeting or the late deliv-
ery of a report, etc.
But what happens when warning signs start to emerge
from such a system? Here it’s important to have the right set
of incentives and sanctions to hand. In a complex technical
environment such as oil exploration, equipment can fail,
Socia LtdDavid Archer and Alex Cameron are co-directors of Socia Ltd, a consultancy specialising in advising private and public sector leaders, leadership teams and boards on managing critical business relationships. Their oil and gas sector clients include Premier Oil, Salamander Energy and Ophir Energy.They are co-authors of ‘Collaborative Leadership – Building relationships, handling conflict and sharing control’ (Routledge, March 2013).
For further information please visit:socia.co.uk
Lead one
develop knowledge. Here is an organisation that has to
have collaboration in its DNA: it can only deliver benefit
to the industry in times of crises by using the knowledge,
contribution and goodwill of all the participating
organisations. This means that if the relationships between
these partners don’t work, then the risks in times of crisis
are significantly increased.
And the greatest risks in an interconnected partnership
are often found at ‘the platform edge’ – the points of high
interdependence between different parties. These are
where relationships matter, where communication needs
to be effective and trust needs to be high. Yet the greatest
opportunities are often found at precisely the same points.
Here different organisations have to work closely together.
This can be tricky, but the friction can also be creative:
people challenge each other’s assumptions, ask apparently
stupid questions that make people see in a new light,
and posit different ways of doing things. But this won’t
happen without individual leaders taking relationship risk
seriously. Successful leaders in the oil and gas industry
have always been those who can manage relationships
well. In an even more interconnected world in the
future, the skills of collaboration and relationship risk
management will become critical.
The leader’s response In essence, we would suggest that leaders have four
imperatives with regard to managing risks that could result
in failure or worse.
Leading across a partnership means you have to deal with 6
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the paradox of shared control. To create more systemic
control of joint risk means that you need to let go of some
aspects of control and focus on developing an open and
trusting relationship with your partners.
6 Leaders need to be skilled at effective communication that
transcends cultural differences. This means being prepared
to admit to some vulnerabilities in your own organisation
and encourage your partners to do the same so you build
resilient ways of managing risk together
Set up any partnership in a manner where relationship 6
risks are explicitly addressed as part of a risk management
process – risks have their own place on the risk register.
Be aware of your own attitude to risk and what drives it. 6
Does this fit with the risk profile of your own organisation
and with the demands of the objectives of the partnership
or project?
When it comes to addressing relationship risks and building a management framework for handling them successfully, we can’t just depend on the usual approaches to risk management and the creation of risk registers. It comes down to a balance between three aspects of how the partnership is run, namely Governance, Operations and Behaviours
We have just celebrated our
40th year, which was a couple of weeks ago,”
says marketing manager of Transvac, Peter
Ainge. “It’s a nice milestone - we have been
around for a long time. At the heart of all of our
oil and gas solutions lies the Ejector, sometimes
also known as an eductor or surface jet pump.
They are essentially pumps that have no moving
parts, require little or no maintenance and often
require no ‘new’ energy to run. They use a jet
of either liquid or gas to create a low pressure
region in the body of the Ejector which then
draws in a third fluid, which again can be either
a gas or a liquid. It’s an old principle that has
been around for hundreds of years but is very
effective and offers some exciting opportunities
to the oil and gas industry.”
The principles behind Transvac’s Ejector
systems may be hundreds of years old but the
company is breaking new ground across a host
of industries. The oil and gas industry however,
has been the company’s most important catalyst
for growth as it looks for ways to improve
on the levels of resources recovered. “We use
Ejectors across a range of industries including
nuclear, oil and gas, food and pharmaceutical,
water treatment, steam and vacuum,” Peter
explains. “These have kept our business nice
and steady over the years, however the oil and
gas industry is our most exciting market. A very
topical theme in the industry, particularly in the
North Sea is about recovering more, extending
field life and if possible restarting ‘dead’ wells.
With a mature field and depleting reserves one
of the challenges is not to abandon a well or a
field when it has only had 40-50 per cent of its
resources recovered. Our patented production
boosting Ejectors reduce backpressure on
wells, or indeed lower the backpressure from a
separator, to enhance recovery.
“There are two common ways in which an
Ejector can be driven, requiring no new energy
and no running costs. This means that any gain in
production is free, 100 per cent efficient. The first
opportunity is where there is a high pressure (HP)
well that is being choked to reduce its pressure.
This is common practice so as to maintain
production across other nearby wells sharing
the same production facilities. However, there
is energy being wasted across the valve, offering
no benefit. We can use this energy to drive an
Ejector. The Ejector becomes the choke device in
effect, but also creates a suction that can be used
to literally suck on the LP, dead well, bringing it
back to life. Liquid loaded wells are no problem
as, unlike mechanical compressors, Ejectors can
handle liquid slugs with without issue.”
The second opportunity lies where
mechanical compressors are operating in recycle,
which is commonplace in mature fields where
the throughput has fallen off. By recycling
some of the gas from the discharge side of the
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proFilE Transvac sysTEms
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recoveryaboveTransvac subsea Ejector for Petrobras' Marlim Field
BelowMarlim, Campos Basin, Brazil
Transvac Systems LtdTransvac.co.uk
ServicesProduct boosting and recovery solutions
to atmospheric pressure, to be compressed up to a
pressure high enough to either re-enter production
or be used as a fuel gas elsewhere on the facility.
It’s a very effective solution and a great alternative
to liquid ring vacuum pumps or mechanical
compressors that are often plagued with
maintenance issues and spiraling running costs.
Elaborating on the success of Transvac’s
research and development centre, Peter says “We
have used the research and development facility
for a number of projects including sand cleaning
packages, and we are currently in the process
of testing a gas-flaring package for flare gas
recovery in Oman for PDO. It’s groundbreaking
work we’re doing, we have been making liquid
jet Ejectors for 40 years but now we have
been able to completely rewrite the rulebook
regarding what we are able to do with them.”
Moving beyond 2013 Transvac is determined
to push into its largest market, the oil and gas
industry, as well as developing the way it operates
in other sectors. Alongside delivering its FlareJet
system, the company will look to take advantage
of the growing subsea industry, which it sees as
perfectly suitable for its Ejector products.
Many technologies have fallen by the wayside
and many require complete redesign to operate
subsea. Ejectors do not and as such, Transvac
has been part of some of the subsea industry’s
most groundbreaking projects, such as Marlim,
the FMC/Petrobras subsea separation and
reinjection module currently installed in the
Campos Basin off the coast of Brazil. Transvac
also supplied the world’s first subsea Ejector to
Tordis, the FMC/Statoil separation module. This
was the world’s first full-field subsea separation
system. Ultimately, 2013 is looking very exciting
for Transvac.
compressor and feeding it back into the suction
side, the compressor then sees a throughput
closer to its design point. Again, there is a
loop of wasted energy, which can be tapped
into and used to drive an Ejector. “We’ve had
some great success with this and the beauty of
our technology is that it has no moving parts,
it doesn’t require any electrical power and it
doesn’t require any maintenance,” says Peter. “It
looks like a simple piece of pipe to be honest,
it’s not an exciting piece of kit to look at but
what is going on inside, and the opportunities it
presents, really are.
“We’ve had huge success with these, they can
create hundreds of thousands of dollars worth
of revenue a day for no extra cost apart from the
cost of the Ejector. It doesn’t require any power or
maintenance, it will run itself – it’s just a principle
of physics. A lot of the time we’ll have engineers
saying, “That sounds too good to be true, what’s
the catch?”, but there really isn’t one.”
In 2010 Transvac opened its research and
development test facility, which has allowed the
company to break new ground in a big way. A
great example of this is Transvac’s new flare gas
recovery solution, FlareJet. “We have over 20
years experience in delivering flare gas recovery
solutions to the industry, but armed with this new
performance data and some cutting-edge Ejector
designs we can now offer gas compression up to
90:1,” says Gary Short, R&D director. “FlareJet is
the result of many years of development and our
latest IP. It has opened up many new opportunities
for our clients who can now enjoy zero-flare
operation at their facilities.”
In many cases produced water can be used
to drive an Ejector. This can achieve very high
compression, which allows flare gas, often close
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proFilE Transvac sysTEms
It looks like a simple piece of pipe to be honest, it’s not an exciting piece of kit to look at but what is going on inside, and the opportunities it presents, really are
aboveTransvac's research & development test facility
leftTransvac supplied the world's first subsea ejector for Tordis - the world's first full field subsea separation system
North Sea drilling activity remains steady, with a positive forecast for the next two quarters,
according to a new report into offshore activity from Deloitte, the business advisory firm.
The report, compiled by Deloitte’s Petroleum Services Group (PSG) found that although the
number of new wells drilled on the UK Continental Shelf (UKCS) has fallen slightly in comparison
to the same period last year, the level of exploratory activity remains healthy.
A total of 16 exploration and appraisal wells were drilled in the UK during the second quarter of
2013 – seven more than during Q1 but two fewer than the same period last year. Despite the slight
fall on 2012’s figures, Q2 2013 has still produced two more new wells than the quarterly average
since the end of 2011 – a year which saw the lowest activity since 2003.
Development activity is also holding strong, with six fields being granted development approval
and four actually coming onstream across UK and Norwegian waters. Although the number of
fields coming onstream in the UK (three) is down on the same period in 2012 (five), innovative
technologies mean that previously ‘sub-commercial’ developments – those which might not have
been considered economically viable – are beginning to provide real prospects, further incentivising
the exploration and development of the area.
Anticipated return
Healthy outlook
The world’s leading cable protection company for the offshore wind industry, Tekmar Energy, has
announced ambitious plans to return to the oil and gas market, whilst maintaining its leading
position in offshore renewables.
As part of the firm’s blueprint for growth it aims to generate £15 million in turnover from its oil
and gas operations by 2016, as part of a strategy to increase overall turnover from £22 million to £50
million and create between 30 and 50 new jobs.
The company, headquartered in Newton Aycliffe, County Durham, is also looking to open a base
in Aberdeen whilst expanding its existing operations in the North-east of England.
Chief executive James Richie said: “Within the rapidly expanding subsea oil and gas sector,
there is rising demand for high quality, reliable protection systems for subsea umbilicals, risers and
flowlines. We are gearing up to respond to this need with a flexible, high quality service and reduced
delivery times.
“Oil and gas is an area we already know and understand and we feel the time is right for us
to return to this sector. The industry rightly demands the highest quality in delivery and safety
standards and we have a strong history of meeting these requirements.”
Above: Cable protection specialist Tekmar Energy plans to return to the oil and gas market whilst maintaining its leading position in offshore renewables
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Talent spottersNES Global Talent, the
technical manpower specialist,
has appointed industry expert
Matt Underhill to the new
strategic role of regional
director for Asia Pacific, as
part of plans to become a £100
million net profit business by
the year 2020.
Leading NES Global Talent’s
13 offices in nine countries
across Asia and Australasia,
Matt will focus on growing
the company’s contract and
permanent staffing solutions
business across core sectors
including oil and gas, power
and infrastructure, as well as
diversifying into new markets.
Talking about why he joined
NES Global Talent, Matt, who
has a degree in engineering,
said: “NES Global Talent has
an unrivalled reputation in
the market and a professional,
forward-looking outlook,
always striving to provide the
innovative solutions needed to
fill the engineering skills gap.
“While Australia is home to
some of the best engineering
talent in the world, with
so many projects on the
go and many more in the
pipeline, demand has been
outstripping supply and the
country is suffering from
numerous skills shortages.
In Asia, there are different
challenges, while there are
plenty of appropriately trained
graduates entering the market,
experienced expertise within
technically demanding projects
is still in short supply.”
Heerema Fabrication Group (HFG), a leading contracting group specialising in engineering and
fabrication, has appointed specialist recruitment consultancy Fircroft to recruit approximately
350 contractors to assist in the build of four gas platforms for the Cygnus gas field project in the
southern North Sea.
The deal means around 10,500 tons of fabrication work will be completed in Hartlepool and
will ensure work in the yard until 2015. To support the requirements, the team at Fircroft has
embarked on a multi-marketing campaign to attract workers from across the region.
The campaign includes online activity, placing adverts in the regional press and holding a series
of open days in Newcastle, Sunderland and Middlesbrough Football Stadiums.
Lee Bailey, business manager at Fircroft, said: “This is a major project that Fircroft is excited
to be part of. Our infrastructure and capabilities, combined with the quality of engineering
skills in the North East enables us to deliver an unrivalled solution to meet Heerema’s
recruitment needs.
Sandra Groom, HR manager at Heerema, said: “We have worked with Fircroft in Teesside for
more than ten years and, after a rigorous evaluation of their capabilities, decided they were the best
choice for this major contract award.”
Specialist providerDOF Subsea Norway, a specialist subsea solutions provider, has been awarded a contract by Teekay
Petrojarl Production AS in Norway for a newbuild FPSO.
The scope of work includes mooring pre-installation, tow-out and hook-up work for Teekay
Petrojarl Production’s new FPSO, which will be installed on the BG-operated Knarr field in the
Norwegian North Sea. DOF Subsea Norway will mobilise its Skandi Skolten vessel for this project,
with six further vessels from its global fleet being utilised in support.
Jan-Kristian Haukeland, EVP DOF Subsea Atlantic Region, said: “We are delighted that Teekay
has provided us this opportunity and has such confidence in our ability to provide the services they
require. The award of this contract means we now have significant project work scopes from Teekay
in the Norwegian and UK sectors of the North Sea.
“We see this as an endorsement not only of our specialist vessels but also of the highly skilled
project management and engineering team we have in place to support this type of project.”
The project will be completed in three phases, the first of which will see the pre-installation of the
complete mooring system, consisting of 12 mooring lines, taking place in 2013.
Major contract
Above: DOF Subsea Norway’s Skandi Skolten will assist with the installation of Teekay Petrojarl Production AS’ newbuild FPSO on the Knarr field development
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news
new appointmentsOffshore accommodation
and workspace specialists HB
Rentals, part of Superior Energy
Services has made two key
appointments to its business
operations as it continues to
grow in the eastern hemisphere.
Brad Hirst and Mike Christie
have been appointed sales
and marketing manager and
technical manager respectively
and will operate out of the
company’s new purpose-built
UK facility.
Norman Porter, business unit
managing director for Europe,
Africa and Middle East spoke
highly of the latest additions
to the team: “These new
appointments will be crucial
as we continue to consolidate
and improve our services in
key markets such as the North
Sea in line with our ongoing
strategy for international
growth. Both Brad and Mike
bring a wealth of oil and gas
experience to the company and
their knowledge will be critical
as we enter this new phase of
development.”
Mr. Hirst joins HB Rentals
with five years experience in
the offshore module business,
holding various commercial
positions with the majority of
that time spent working in the
Middle East. Mr. Christie joins
as the company’s new technical
manager and will oversee all
engineering matters with his
remit spanning both UK and
European operations.
ven before the Facebook entrepreneur
Mark Zuckerberg was born, in the
mid-1980s the oil and gas industry was
working with big data and solving complex
mathematical problems. By the time
he had started high school, Schlumberger had launched
the GeoQuest product line and Landmark Graphics
Corporation had acquired GeoGraphix, before being in turn
acquired by Halliburton.
When Zuckerberg launched the social media site from
his dorm in Harvard University in 2004, Schlumberger had
already completed the purchases of Technoguide Petrel
and VoxelVision. The oil and gas industry was pushing the
technology envelope, driving innovation and expanding
compute boundaries. Fast forward nearly ten years and it’s
clear that early leadership has not entirely delivered against
the vision and aspirations of users.
In an ideal world, complex reservoir models would
now be dynamically updated with inputs from drilling
and production sensor data. Investments in digital oilfield
technologies would ensure that predictive algorithms are
monitoring complex production systems and alerting
operators of potential hazards, allowing them to visualise
the information and recommend corrective action from their
handheld device.
New insights would be generated on an almost daily basis
from data streaming from permanent arrays on the ocean
floor, and then used to plan interventions that continually
improve reservoir management.
So what has prevented the realisation of this operator
utopia? One of the most likely factors was the oil crisis that
occurred back in the 1970s. Under pressure to reduce costs,
huge numbers of people that worked in the industry were
made redundant.
This greatly affected the burgeoning information
technology groups in major operators as investment in
research and development of new computing solutions
dried up. Nature abhors a vacuum and as a result,
the service providers stepped in. With the growth of
worldwide oil exploration triggered by the OPEC oil
embargo of 1973, companies like Schlumberger were able
to invest heavily in technologies, applications and software
to support the oil industry.
Over the last 30 years we have seen the concentration of
specialised domain expertise and application development
skills in the service providers and their software
application divisions.
Today’s operators primarily rely on service companies
for the delivery, support and operation of applications that
enable various parts of the workflow. The service companies
in turn have grown by acquiring smaller application
companies that have developed highly specialised tools,
adding them to their growing software portfolios. This has
had a number of consequences for the industry.
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k RatheR than being held hostage by cuRRent it systems oR solution vendoRs, opeRatoRs should look to move fRom an application-centRic enviRonment towaRds a data-centRic woRld, says niall o’DohErty
balancestriking a
Belowniall o’doherty, international director of business development at teradata
TeradaTaNiall O’Doherty is international director of business development at Teradata and works in the Emerging Industries Team. In his current role, Niall is responsible for growing Teradata’s presence, solutions and strategies in the emerging industries of manufacturing, oil and gas, government and utilities.
For further information please visit: teradata.co.uk
IT
solution could be developed.
Today, the need for the different factions to work together
has never been greater. IT vendors must acknowledge that
specialist domain expertise is required to build solutions
that work. For the incumbent service providers that own
the current application stack in E&P, there is a need to
understand that technology capability has dramatically
changed over the last number of years and they should take
advantage of these changes.
In the era of big data, sensor data and the ‘Internet of
Things’, most other industry verticals are now facing many
of the challenges that the oil industry has been facing for
decades. IT companies are providing technologies that really
do allow operators to leverage horizontal solutions for the
data management challenges.
Moreover, the increasing use of sensor data is bringing
scientific and mathematical calculations and geospatial
functionality into the data management arena for many
verticals. Both have what the other craves, so there would
appear to be a natural synergy to working together.
But what about the customer? After all, aren’t they the ones
that really matter? Some operators may be happy to wait for
the IT and industry vendors to get together and build what
they want. Others may actively encourage the union.
What’s clear is that the leading operators need to take back
control of the key part of the entire equation and the part
that has the most value: the data. In spending vast amounts
of resources obtaining data that is the key raw ingredient
in E&P, this should be then valued accordingly. After all,
the data is only created once; the seismic trace, the well log
measurement, the resistivity, the flow sensor reading; all these
are unique in time and space.
How you use each data point over the lifetime of an asset
will vary greatly, and the value that will be derived from
each data point will depend on the people and tools made
available to the data. The real value will be in ensuring that
users are able to find and use all the unique data points
and the information derived from that data so that they can
impact the business; make better and safer decisions.
Operators that move from the current application centric
architecture to a more open data centric architecture will be
best positioned to do more with their data. They will be able
to leverage the best that the IT vendors and the specialist
solution vendors can provide, today and long into the future.
The proliferation of applications across the E&P
workflow, many of which are standalone, has resulted in a
complex application and data management landscape. This
complexity has led to many IT deployments failing to live up
to expectations and many operators questioning why they
are making significant investments in IT solutions that are
not really addressing their most pressing challenges – or even
offering the same level of sophistication they get from the
consumer technologies that they are using at home.
There has also been a migration of specialist skills and
research away from the operators to the software startups and
key service providers. Leading operators are now concerned
about the uniformity of solution capability. If they are relying
on their service provider vendors to develop and deliver
new capabilities then they are resigned to having the same
capability as everyone else in the business. Where is the
competitive advantage going to come from?
Now look at the IT vendor side of the equation. When
you consider that, according to a paper delivered in 2012
by Piotr Luszczek of the University of Tennessee, “The iPad
2 could have stayed on the list of the world’s fastest super-
computers through 1994 – faster than a Cray 2”, you start
to get a sense of the explosion in computing power that has
occurred over the last decade.
IT vendors are looking at the budgets and data volumes
in the oil and gas industry and thinking that they can do
better than the traditional service company based application
vendors. After all, they are real IT guys who develop leading-
edge software and technologies and not a bunch of oil service
guys who set up a programming division to build some
solutions. How hard can it be?
This has, in some cases, led to arrogance on the part
of IT vendors, who assume that there is nothing difficult
in dealing with oil and gas data. They believe that the
industry has simply fallen years behind other industries like
telecommunications, banking and retailing because they
are insular, they don’t keep up with IT trends and the latest
technologies, or that they are resistant to change and stuck
in the past. And they view those in oil and gas as either
geology types who prefer crayons to computers, or a bunch
of roughnecks who have just read coding for dummies.
So a bunch of arrogant computer jocks or a herd of
roughneck coding dummies? As usual, the truth is always
somewhere in the middle. There is reluctance from the oil
and gas industry to try horizontal IT solutions since they
“won’t work with our data because our data is different" –
it’s too big, or too complex, has strange formats, or is too
scientific. But it’s also true that the solutions that IT vendors
assumed would work easily didn’t work that easily at all,
because of data volume, or data structure, or the way the
scientific calculations are used so frequently.
Vendors discovered that, in this complex environment,
it was not just a case of loading the data and pushing a
button. The science needed to be better understood and time
invested in really understanding the problem so that the
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t’s no secret that the worldwide war for
engineering talent is intensifying. More
than half of the workforce is due to
retire during the next decade and this,
combined with the fact that many skilled
workers have failed to return to European shores after the
recession forced them overseas, means we are facing a tough
fight. However, it also means that oil and gas skills are in
huge demand and that there are an abundance of career
opportunities available for those with the necessary skill sets
and experience.
Skills shortageThe oil and gas skills shortage is the biggest barrier to
growth for companies in the North Sea. According to UK
Government figures, there are an expected 15,000 jobs to
be created in the oil and gas sector over the next five years.
However, more than half of the respondents to the latest
Labour Market Intelligence Survey by oil and gas body Opito
said that finding appropriately skilled staff was the number
one challenge facing their company.
North Sea operations have long been seen as a training
ground by global operators, who quickly snap up talented
workers. While Europe is home to some of the very best
engineering talent in the world, this, combined with
the exodus caused by the recession, means demand is
outstripping supply and companies are struggling to find the
professionals that they need.
Although the UK and Europe in general has suffered in
recent years from maturing assets, several new discoveries
have been made in the North Sea and this, together with
the advancement of technology that prolongs field life, is
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Simon Coton of NES Global TalENT diScuSSES carEErS iN ThE oil aNd GaS iNduSTry, aNd why Now may bE ThE riGhT TimE To coNSidEr workiNG iN ENErGy
Energyworks
Lead two
this view point adding that ‘Britain must be at the heart of
the shale gas revolution’.
OpportunitiesWith so many new projects in the pipeline, the talent
shortage poses a very serious problem for the oil and gas
industry. However, it also means that there are plenty of
opportunities available for people interested in a career in
oil and gas. In fact, there has never been a better time to join
this exciting sector.
If it’s variety that you are looking for then the oil and gas
sector delivers. As the industry develops and transforms,
new roles are being created within areas such as crisis
management, sustainability, and digital and social media,
meaning there is something to suit a whole spectrum of
skill sets.
boosting productivity.
At the same time, the UK Government is introducing new
fiscal and regulatory measures, which will also encourage
new investment. Indeed, trade body Oil & Gas UK said that
following the introduction of tax changes earlier this year, the
industry has responded by investing the highest amount for
more than 30 years. Investments totaling almost £100 billion
are now in companies’ plans, the organisation added.
Outside of the North Sea, the UK is also trying to
cash in on the shale gas revolution. Although more
restrained than other countries, with no commercial shale
gas production to date, Energy and Climate Secretary
Ed Davey recently said that shale gas could contribute
significantly to the region's energy security, reducing
reliance on imported gas as it moves to a low carbon
economy. The Prime Minister David Cameron reinforced
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projects such as Gorgon in Australia, there are a host of
new projects worth in excess of $25 billion which are being
developed in a number of global locations
The future certainly looks bright. Brazil and Iraq remain
hotspots for exploration and production activity with Africa,
Asia, Australia, Europe and the US also experiencing a surge
in oil and gas jobs. With an estimated talent shortfall of
40,000 engineers in Brazil alone, engineering skills will be
in huge demand. In addition, just building or rebuilding the
infrastructure required in many emerging countries to meet
economic growth targets will take a massive share of the
world’s graduating civil, electrical and mechanical engineers
for years to come.
It’s clear that there’s an abundance of opportunities within
the oil and gas industry for suitably qualified technical and
engineering personnel. However, new entrants shouldn’t
be under any illusion that securing such opportunities will
be easy. It’s important to remember that experience is key.
Caution is often shown towards hiring less experienced
professionals ahead of their more knowledgeable peers.
In order to succeed, your qualifications must meet certain
standards, but you must also have the relevant work
experience.
SolutionsIn regards to the skills shortage in Europe, while there is no
‘quick fix’, many of the measures being adopted globally are
helping those who are interested in embarking or moving
into a career in the oil and gas industry.
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Not only are there a wide range of disciplines to choose
from, but candidates will also have the flexibility of working
on either temporary or permanent assignments. Of course,
there are pros and cons with both types of work, with higher
earning potential and variety among the positive aspects of
contract roles, while permanent positions often offer benefits
such as a pension and provide more job security.
The choice of whether someone prefers to work on a
contract or permanent basis is their own. However, it’s
important to weigh up the advantages and disadvantages
and if you are a new entrant it is wise to try and secure
a permanent role as these positions tend to offer the best
opportunities for training and development. Once you have
gained the necessary practical skills and experience, you may
then decide that contract work is more preferable, depending
on your circumstances.
During the recession, NES Global Talent’s consultants
noted that there was a preference among oil and gas
companies for permanent workers as it allows for greater
budget control and also cuts the cost of labour. This is
another reason to consider ‘playing it safe’ by opting for a
permanent position at the start of your career.
Fortunately, while we are not out of the woods yet, the
financial crisis is easing and the oil and gas industry is getting
back on track. A number of approved energy projects that
were put on the back burner during the global recession are
now developing well and getting closer to peak manpower,
while there are more new projects in the pipeline for 2013
and beyond. As well as the continued development of mega-
Oil and gas companies are also re-training and recruiting people from other heavy industries, for example structural engineers and electrical engineers from the shipbuilding or infrastructure industries due to similar skill sets. This phenomenon is not unique to Europe, it’s happening worldwide given the increase in energy demand and the retirement of skilled, experienced workers
NES Global TalENTSimon Coton is NES Global Talent’s managing director. He joined the company in 1995 as a graduate and has since risen through the ranks, leading both its UK and Houston teams as part of his career progression. Established in 1978, NES Global Talent is an award winning manpower specialist that has placed over 70 different nationalities into 69 countries across the oil and gas, power and infrastructure sectors worldwide.
For further information please visit:nesglobaltalent.com
Lead two
The sector is focused on working with educational
establishments and institutions to educate the younger
generation about the amazing careers available working as
an oil and gas engineer. Schemes such as the Institute of
Chemical Engineer’s “Whynotchemeng” campaign help to
promote the oil and gas industry to students at an age where
they’re making key decisions about their future.
In addition, the sector is boosting the number of graduate
engineering schemes and investing in entry-level training or
re-training in order to strengthen the oil and gas workforce.
For example, earlier this year the UK Government gave £7
million to Newcastle University to establish the Neptune
National Centre for Subsea and Offshore Engineering, which
will help produce the highly skilled graduates needed to
address the skills shortage. A new facility has also been
opened at Expro, an offshore and technology services
specialist in Aberdeen, which shows the industry is working
hard to address the talent challenge.
Oil and gas companies are also re-training and recruiting
people from other heavy industries, for example structural
engineers and electrical engineers from the shipbuilding
or infrastructure industries due to similar skill sets. This
phenomenon is not unique to Europe, it’s happening
worldwide given the increase in energy demand and the
retirement of skilled, experienced workers. Particular skills in
demand globally include deepwater subsea engineers as well
as LNG and shale specialists.
Another sector the industry is keen to tap into more is
the military. Ex-servicemen and women are highly trained
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and well-disciplined with strong leadership skills, lots of
systems and project management experience, a strong eye
for detail and the ability to follow processes and procedures
closely. These qualities are highly sought after in the oil and
gas industry. Military personnel are also used to moving to
multiple international locations and operating in challenging
environments. Most servicemen and women have travelled
far and wide, and are familiar with the locations where the
oil and gas sector operates.
As you can see, there are plenty of different paths into the
oil and gas industry, and whether you are a new entrant or
are looking to transfer your engineering or technical skills,
the opportunities are there waiting. Hard work, a desire
to solve problems and a determination to help meet the
increasing global demand for energy are all required by those
looking to establish themselves. And if you’re prepared for
that, you’ll reap the rewards.
little less than a decade ago, we saw an era
when oil and gas resources were relatively
abundant and easy to extract. Whilst
the International Energy Agency (IEA)
envisages that fossil fuels will account
for 60 per cent of energy generation by 2030, resources are
becoming scarcer. Compared with its heyday, resources are
now becoming harder and increasingly expensive to find and
develop in an environment that is both geographically and
technologically at the frontier.
The oil and gas operators have enjoyed relatively strong
ROCE and enviable EBIT margins as crude oil prices have
remained stubbornly high and global demand shows no
sign of abating. As recently as 2012, the Organisation of the
Petroleum Exporting Countries (OPEC) cashed in on around
$1.1 trillion. Against this background, it is not surprising
that despite the many years’ experience, often when oil
and gas operators have had to choose, they have prioritised
“Schedule” over “Budgeted Cost”. A crude paraphrase being
“Get to First Oil by the planned date – at any cost”. The
fallout from this is clear when we consider the magnitude
and cost of project overruns in this industry. On average, 40
per cent of mega-projects exceed budget and cycle time by
ten per cent.
Traditionally, companies have attempted to mitigate against
the risk of project cost overruns by engaging Engineering,
Procurement and Construction (EPC) firms in lump sum
contracts. Under an EPC contract, the contractor usually
has responsibility to produce detailed design and meet
the performance output requirements of the specification,
but when latent errors are found in the pre-tender Front
End Engineering and Design (FEED) studies during the
course of that detailed design, claims are invariably made by
contractors as a result. Where the EPC Lump Sum contract
is silent on how this risk should be dealt with, arbitrations,
disputes, controversies and cost overruns inevitably ensue.
As these capital projects evolve, the likelihood of additional
grey areas that give rise to Change Orders and possible
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contractsKeyIncreasIng energy project complexIty demands a closer eye on contracts, as ClarE Colhoun explaIns
Special feature - Energy contracts
the ERP and other systems to manage the contract execution
phase of the project. Capital Project Contract Management
Systems introduce a common contract communications
platform that connects the parties, such as engineers, legal
and finance teams and the contractor teams on a contract.
This allows teams to work collaboratively in a predetermined
space. Such systems preserve the Red Thread as to where
responsibility lies as the contract is executed, allowing for a
single, referential point of truth. In essence, they synchronise
the evolving contractual position with the evolving built
environment so that the contract is always a true, real-time
reflection of the latter.
This helps contract managers move from adversarial
relationships to partnerships with contractors. Whilst the key
is prevention, disputes remain inevitable in these projects.
Companies realise that during dispute resolution, accessing
the true audit trail of decision-making and efficient access
to all of the evidence for a case is essential in negotiating
the case and minimising the associated cost. Companies
claims increases. The owner contract management team
is faced with a flurry of Change Order requests that need
rigorous review, internal consultation, and expert opinion
and management attention.
Project operators have traditionally relied on a
combination of Enterprise Resource Planning (ERP) systems,
spreadsheets and paper trails to manage the aforementioned
contracts. ERP systems are by design good at handling
transaction management such as invoice and purchase order
processing. These systems are designed for predictable,
repetitive processes. However, in reality mega-projects
operate in dynamic environments where new projects can
throw up new contractual challenges. The “Review” and
“Approval” or “Reject” processes that govern the decision
making around Change Orders and ambiguous interface
situations as projects progress from FEED to EPC and
operations are not within the ERP footprint.
Increasingly, project operators are adopting “Fit for
Purpose” contract management software that integrates with
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contracts
its contractors on the grounds of misconduct as well as a
separate lawsuit to the ring of $40bn against Transocean.
Whilst this is an extreme example, contractual disputes
are a common occurrence that often attract millions of
dollars in legal fees alone. We envisage that the frequency
of such disputes will rise as companies turn to controversial
techniques such as fracking, which is already attracting a
myriad of lawsuits.
Upstream companies are by nature adventurers, explorers
at will that cannot live entirely by precautionary principles
or they will lose the game and get left behind in the
battle to find new resources. Given the complex nature of
these projects though, the key is to strongly support the
entrepreneur mindset with fit-for-purpose systems and
business processes, as “Chance favours the prepared mind”.
The complexity of projects is also increasing due to demand
downstream, where energy providers are playing a careful
balancing act between providing energy at the cheapest
price possible to retain customers - whilst harvesting
energy at the lowest prices possible. To meet demand,
unconventional sources, such as tar sand oils, requiring less
efficient extraction processes are becoming more prevalent,
which in turn is driving up per barrel production costs.
Unconventional sources also carry a major environmental
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should ensure that their contract management processes and
systems are providing this to them - providing them with
the “story” and the context at the time a decision was made
- rather than providing them access to disparate documents,
emails and invoices, and yet no clarity as to how these are all
tied together.
One would be forgiven to consider contracts as
agreements that are set in stone. Yet as we know, such
complex extraction projects span across decades, where
dozens of changes inevitably have to happen due to political,
technological or geographical developments. We are seeing
this uncertainty continue as with the case of Shell, which
is beginning to drill on frozen ice in the Arctic – a project
entirely dependent on the company’s resilience to hostile and
ever-changing weather conditions.
The practice of managing contracts through paper
trails and spreadsheets may seem rather draconian, but
until recently, contract management was a discipline that
technological advances appeared to have almost by-passed.
There are a number of obvious issues with the spreadsheet
and paper trail approach - such as data protection - but
perhaps the most significant is that of compliance,
particularly in the event of expensive contractual disputes.
Following the Gulf of Mexico’s accident, BP sued three of
Companies should ensure that their contract management processes and systems are capable of linking every decision – whether the trail is defined by email, invoices or even through a written note
8over8Clare Colhoun is chief executive officer at 8over8, a leading provider of contract management software solutions for organisations that build and operate assets. The company designs and develops contract management software solutions that support billion dollar projects from initial concept selection through to design, build, operate and decommission.
For further information please visit:8over8.com
Special feature - Energy contracts
price tag, either through penalties inflicted by governments,
or through costs for decarbonising supply, through Carbon
Capture & Storage (CCS).
In the next 20 years, Carbon Capture & Storage (CCS),
which traps CO2 from processing and burning fossil fuels,
will become an industrialised carbon mitigation technology
expected on fossil fuel projects. Shell’s first commercial scale
CCS applications are under construction at the Boundary
Dam coal-fired power plant in Saskatchewan, Canada,
while its £1bn Quest project will be the first to apply CCS
to unconventional oil. It is this increasing complexity of
unconventional oil, combined with new projects to limit
environmental impacts that are turning energy harvesting
projects into even larger enterprises. As a result, we are
beginning to see companies putting contract management
back on the agenda, implementing rules, processes and
systems, which are centred on being accountable and
transparent. This includes contract management systems,
which unlike ERP, are designed for the complexities of
contract management.
The key is to have deep insight, enabling teams to move
forward and manage proactively. Hindsight is no use when
getting to the root of a project failure. Having a view of
information available at the time of mistake, providing radical
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transparency can help the contract manager move from
adversarial relationships to partnerships with contractors.
On the ground, this approach would ensure that engineers
in the field are able to make the necessary contractual changes
in a relatively quick, audited manner without breaking a
contract and attracting the associated litigation costs.
Indeed, from an efficiency standpoint, contract
management should standardise the language used
both vertically and horizontally within a project. In our
experience, often engineers, EPCs, contract managers and
executives all use different terms to describe the same
thing. For instance, an EPC might call a change to a project
a Change Order, as opposed to the company calling it a
“variation order” and so forth. Such miscommunication
can pave the way for inefficient and even unsafe processes
leading to serious issues.
Whilst prevention is better than cure, disputes remain
inevitable considering each project employs hundreds,
even thousands of individual contracts. In the event of a
dispute, companies realise that finding the right audit trails
and evidence for a case is essential in minimising the cost
of a dispute. Companies should ensure that their contract
management processes and systems are capable of linking
every decision – whether the trail is defined by email, invoices
or even through a written note. This was the case that
shadowed the BP Macondo disaster, where it was difficult to
find out who did what in the absence of an audit trail. The
key in achieving this level of visibility is to leverage contract
management as an added layer of insurance against disputes.
With the likelihood of wasted investment on oil and
gas projects so high, companies are tightening up contract
management in order to drive cost efficiencies before
making such projects more ambitious. Traditionally, funds
and shares in oil and gas companies have for many years
provided fruitful returns for investors. However, it has
been these lucrative revenues that led to carte blanche for
a culture of costly, inefficient practices. With rising project
complexity, scrutiny on compliance and smaller margins,
investors as well as stakeholders are placing increasing focus
on how these projects are fundamentally managed. Contract
management is one way that companies can demonstrate
greater accountability, transparency and indeed achieve better
returns for their investors.
part of our business, on top of the diesel pipeline
connected to the terminal. We have three active
railway unloading racks, big structures of around
300 metres in length, where we can unload on
average 30 rail tank cars on each side. One of the
three is going to be replaced by new by the end
of 2014.”
Part of Ventspils Nafta Group, the business
has an extensive history dating back to 1957
when the leaders of the Soviet Union recognised
the logistical advantages of Ventspils, such as its
non-freezing fully operational port, and built a
terminal for the export of crude oil. Operations
began in 1961, sparking ongoing expansion,
investments and developments. In 1974 the
terminal established its key crude oil pipeline
from the Russian fields and in 2003, following
the regaining of independence from the Republic
of Latvia, Ventspils Nafta Terminals was
established as a privately run company.
Today, the terminal’s main services include
the transshipment of gas oil and gasoline
It has been a productive 12 months
since Ventspils Nafta Terminals (VNT), the
largest and most technologically advanced
crude oil and petroleum product transshipment
company in the Baltic States, last spoke to
European Oil and Gas Magazine in June 2012.
Determined to retain its leading position for
storage and transshipment in the competitive
Baltic region, the terminal is continuing with its
five year restructuring programme.
Major changes to be implemented include
the reconstruction of one of its rail tank car
unloading stations and the installation of an oil
product vapour recovery system, as managing
director of VNT, Lars Pantzlaff highlights: “You
have to do something different to separate
yourself from the others, and one way of doing
that is to increase niches that will really benefit
VNT in the transshipment market. Our plan to
progress really comes down to improving and
expanding the services on offer. In terms of
infrastructure, the railway deliveries are a huge
Plans in the
PROFILE VEntsPILs naFta tERmInaLs (Vnt)
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above and belowRail tank unloading rack
received via pipeline and railway, as well as
quality analysis of crude oil and petroleum at its
laboratory to ensure product quality. Boasting
105 shore tanks that are connected to pipeline
systems, VNT has a capacity for crude oil and
petroleum storage of 1.2 million cubic metres.
To guarantee safe and faultless storage and
transportation operations within the terminal,
a fully automated system was installed and a
united control room was created.
Despite global economic situations and
regional product flows, an impressive 6.25
million tonnes of oil and oil products were
transshipped by VNT in the first half of 2013,
resulting in a net profit of 5.02 million lats.
VNT handles a huge 72 per cent of all liquid
cargo in Ventspils, 48 per cent of all liquid cargo
in Latvia and is also the largest oil product
terminal in the Baltic States, with 19 per cent
of all cargo transshipped through Lithuanian,
Latvian and Estonian ports. “All of our daily
operations are safe, efficient and well controlled
so our key focus is to develop our plans and
reach a point where they can be executed. These
developments are being processed internally
by the fantastic people we have at VNT. These
days plain old vanilla is not sustainable any
more. You need a good efficient operation and
excellent infrastructure, and the people that
drive the process of getting there. Though our
infrastructure is sound and in good condition,
we need to work on it as it comes to age, but
these investments will benefit the terminal
significantly,” says Lars.
VNT’s excellent logistical infrastructure is
superior to many other storage and handling
facilities on the market and allows both VNT
and its clients to be in close proximity to one
another, ensuring close relationships with
customers and increased efficiency in schedule
planning. As a terminal that receives a variety
of fuels, Lars is keen to progress and improve
efficiency and flexibility with a new pump
station and valve management: “It is important
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VNT’s excellent logistical infrastructure is superior to many other storage and handling facilities on the market and allows both VNT and its clients to be in close proximity to one another, ensuring close relationships with customers and increased efficiency in schedule planning
aboveNew marine loading arms
Ventspils Nafta Terminals (VNT)1.vnt.lv/en/
ServicesProduction and shipment of crude oil and petroleum
profitable growth. “We would like to keep our
market share; it is difficult to compare ourselves
with Russian ports at this point, but we can
compare our operations and profitability with
Latvian, Estonian and Lithuanian terminals
and ports. Our plan is to not only be the
largest terminal in the region, but also the most
flexible,” he concludes.
to add value by increasing flexibility through
product segregation and having the capabilities
to handle different products. We are also looking
at our ability to load and unload rail tank cars;
we never send full rail tank cars back to CIS
countries, but we want to have the versatility to
do that in the future.”
The implementation of introducing reverse
transshipment services and the development
of related infrastructure began in November
2011 in co-operation with the Investment
and Development Agency of Latvia. This
project involved the acquisition of operational
equipment for the loading of crude oil from
tankers into rail tank cars, and a connected
scrubber for related vapor recovery.
Other major modernisation projects include
the capability of performing blending operations
(blending different grades of products for
particular markets); the company has also
installed a butanisation system (mixing motor
gasoline with liquid butane). “If you build
a new terminal these days you will cater for
in-tank blending and creating added value for
customers,” explains Lars. “Our infrastructure,
built more than 50 years ago, was not built for
this purpose so we are now taking tank pit by
tank pit to research a pipeline infrastructure that
will enable us to blend from one tank to another
tank group. This is a huge development for
us because in todays market product blending
is everything.” Described as ‘the pipeline
spiderweb’, the new pipeline infrastructure
will connect with most parts of the company’s
operation, from tanks to pump stations,
allowing it to transfer the oil product without
jeopardising quality.
Looking to the future, Lars anticipates the
continued investments and developments
within the terminal will ensure sustained
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Other major modernisation projects include the capability of performing blending operations (blending different grades of products for particular markets)
leftNew pump station #3
KANON MARINE LOADING ARMSSymmetric Design, Excellent Performance
Loading equipment for marine, road and rail tankers
your partner in high quality loading, unloading and safety systems for over 30 years
www.kanon.nl
your partner in high quality
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Since it was last featured in
European Oil and Gas Magazine the Kuantan Port
consortium (KPC) has continued to grow and
pursue its aim of becoming the leading maritime
trade and logistics services centre in the east coast
of Peninsular Malaysia and the Asia Pacific region
by 2020. Operating as a multi-purpose port,
strategically placed to enjoy direct shipping lanes
with China, the KPC is well positioned to meet its
goal. However, recent developments in the region,
including economic growth and investment in
infrastructure, offer the port and the KPC the
opportunity to leverage a fast-track route to
becoming the region’s leading logistics centre.
Kuantan Port is owned by the IJM
Corporation Berhad, which views China as
destined to become the world’s largest economy
futureand is keen to see the port take advantage of
the region’s economic fortune. Ideally located
on the east coast of Peninsular Malaysia, KPC
is keen to expand on existing trade between the
two countries, as chief operating officer Ir. Hj.
Khasbullah A. Kadir elaborates: “What sets the
port apart from its competitors is its proximity
to the Malaysia-China Kuantan Industrial Park
(MCKIP). The MCKIP is a sister site to the
China-Malaysia Qinzhou Industrial Park in
China and these two sites will generate more
bilateral trade between Malaysia and China.
Kuantan Port is expected to be the main gateway
for this trading channel. The park will boast
high value industrial developments like steel
mills, aluminum processing plant, edible oil
processing plants and other high value industrial
developments, which will spur more traffic and
cargo throughput for Kuantan Port.”
An integral part of the port’s future could
be a deal with Chinese company Guangxi
Beibu Gulf International Port Group Co Ltd.
The agreement would see a disposal of a 40
per cent stake in KPC for RM310 million by
the end of 2013. In return for the stake in the
company KPC can expect to see significant
investment from Guangxi, with the company
set to pour RM7 billion into the MCKIP and
surrounding infrastructure, either directly or via
joint ventures with Malaysian companies. As of
March 2013, IJM and Guangxi have announced
that they have entered into a Memorandum
of Agreement (MoU). The MoU sets the
preliminary price of the disposal and is expected
Gateway to the
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Liraship agency sdn Bhd east coast container services sdn BhdLiraship Agency Sdn Bhd is one of the pioneering shipping agents that has witnessed the development and growth of Kuantan Port over the past three decades. Jointly with Kuantan Port in 1989, they brought in the first container vessel to call at Kuantan Port. In 1992, East Coast Container Services Sdn Bhd (ECCONS) became the first contractor for stuffing/unstuffing at CFS, and stevedoring for container vessels at Kuantan Port.
Kuantan Port Consortium Sdn Bhdkuantanport.com.my
ServicesPetrochemical hub
facilities its core users need. It is keen know
the future needs of its customers and will visit
existing and possible future clients to make
sure their requirements are fully understood.
The company also has its own marketing
team comprised of highly knowledgeable and
dedicated staff to drive future business. This
level of inter-business communication is a
vital component in maintaining Kuantan Port’s
position as a key industry hub in the region.
KPC has continued to upgrade and adapt the
port to meet the ever-demanding requirements of
the palm oil, chemical, container and mineral ore
sectors. The port is able to offer palm oil berths,
liquid petroleum berths, dedicated chemical
berths, dedicated container handling berths,
roll-on roll-off berths for vehicles and specialised
equipment for handling dry bulk cargoes. It is
also able to provide a host of ancillary services
including on-dock depot services, fumigation,
water supply, bunkering, slop reception and
warehousing. Recent developments include an
expansion to the port with the construction
of a new RM3 billion deepwater terminal,
construction of which is expected to be
completed within two to three years. The new
terminal will double the handling capacity of the
port to 52 million FWT and is also designed to
attract larger ships to enable the port to become a
transshipment hub in the region. To complement
this KPC has recently applied for a license to
become a supply base, as well to support the
development of the oil and gas industries on the
east coast of Malaysia.
KPC is currently positioned to take advantage
of a huge upturn in momentum. With China
remaining strong and Malaysian initiatives
providing stimulus to the local economy,
Kuantan Port is set to become a powerhouse
in the region as Ir. Hj. Khasbullah A. Kadir
concludes: “With the Chinese economy still
looking robust and demand for raw materials
still strong, Kuantan Port is expected to maintain
its current growth momentum. We see the
next five years as a very exciting time for
Kuantan Port. As the current port is reaching its
maximum handling capacity, the construction
of the new deepwater terminal will ease the
congestion as well as fulfilling the demand for
bigger ships in tandem with the evolution of
shipbuilding. The partnership agreement with
the China Guangxi Beibu Gulf Port Group will
also bring in new expertise and capabilities
which are much sought after to cater to the
demands of the new industries in the MCKIP
and ECER region.”
last six months before a definitive agreement is
met. During this time the deal must be approved
by the Malaysian government, which currently
holds a 30-year concession with KPC set to end
in 2027. If the deal is approved, the concession
will be extended to 60 years, adding a further 46
years to the agreement.
The port has also been identified by the East
Coast Economic Region (ECER) master plan
as an integrated industrial and logistics hub
for the region. The main aim of the ECER is
to accelerate growth in the area in a viable,
equitable and sustainable manner. The plan
identifies tourism, oil, gas and petrochemical,
manufacturing, agriculture and education as
key drivers in accelerating the region’s growth
and aims to compliment existing development
schemes. KPC expects the industrial activities
to be developed to include the Kuantan
Integrated Biopark, bio-fuel industrial cluster,
downstream petrochemical cluster, iron and
steel industries and automotive cluster. KPC’s
close links to China and the recognition it
receives from domestic initiatives demonstrate
why Kuantan Port is considered the
undisputed petrochemical hub in the region,
both domestically and internationally.
Kuantan Port is a multi-purpose port
operating in all weathers, 24-hours a day, 365
days a year and is able to handle a variety of
products including dry bulk cargoes, containers,
palm oil, chemicals, petroleum and steel pipes.
To cater to its core customers the KPC works
to provide infrastructure and equipment as well
as to maintain the port. It treats its customers’
requirements as a top priority and goes to great
lengths to ensure that the port offers all of the
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Kuantan Port is a multi-purpose port operating in all weathers, 24-hours a day, 365 days a year and is able to handle a variety of products including dry bulk cargoes, containers, palm oil, chemicals, petroleum and steel pipes
Since its last feature in European
Oil & Gas Magazine in 2011, Staffordshire UK
based ALE has continued to strive to redefine
the limits of what is possible. As an expert in
heavy lifting and transport, ALE has utilised
its impressive portfolio of equipment and
dedicated R&D team to complete mammoth
projects worldwide.
In May 2013 ALE competed the world’s
heaviest jack-up at the Daewoo shipbuilding
and Marine Engineering Co. Ltd in Korea.
Conducting the lift for Exxon Neftegaz Limited,
ALE utilised the innovative Mega Jack System
at 60,000te capacity to lift a final jacking weight
of 42,780te. This was the heaviest load ever
jacked. The piece is destined to be located in the
Arkutun Dagi field off the coast of Russia and
is expected to continue to break records as part
of the largest oil and gas production platform
in the area, with the first production scheduled
to begin next year. Regarding the ambitious
project, Kees Kompier executive director at
ALE commented that: “This pioneering project
is a great achievement for ALE and the Mega
Jack, which was created by our research and
development team and engineers.
“The load is nearly double the weight of
the previous heaviest load, which is a great
accomplishment for the company and really
shows the capabilities of the Mega Jack. The
system itself opens up a whole range of options
for our clients and is completely scalable,
meaning we can create a system to fit the
requirements of projects, becoming more flexible
in our capacity and solutions.”
ALE is able to deliver its services globally
and often confronts varied and unusual
challenges, requiring the specialist knowhow
and dedication for which the company
has become renowned. In March 2013 the
business was tasked with moving a 450-
tonne farmhouse in the Netherlands, which
although one of the company’s smaller lifts, still
required the construction of a temporary road
to accommodate for poor ground conditions.
The move itself was completed in less than ten
hours. Sjak Aerts, engineering manager at ALE
commented that while one of ALE’s smaller
projects, the move still required precision
planning from the company’s team. “Not
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ContainerPLUS+ ContainerPLUS+ is a reliable partner that has many years of experience in the ISO-container industry, and has specialised in the supply of new standard and special ISO-containers ex-stock or directly from the manufacturer. Containers can be modified according to customer’s requirements.We have many years of experience in dealing with ALE and we are pleased that it is possible to develop products by sharing thoughts and ideas.This we find very encouraging as it actually makes us feel part of the process.
ALE ale-heavylift.com
ServicesHeavy lift and transportation
further enhances the company’s equipment
portfolio. The Mega Jack is centrally operated
by way of a fully computerised system, which
includes data logging, weather data and optimal
dimensional surveys. Of further benefit is the
fact that the Mega Jack is stroke controlled and
establishes stability from its jacking foundation.
This means that vast bracing structures and
costly welding works to secure the platform
are no longer required. Likewise, welding and
cutting works carried out at high level are
completely eliminated by the Mega Jack’s low-
level feed-in system for inserting jacking beams.
Critical to the company’s success is
its investment in its people as well as
its equipment. ALE boasts a world-class
management structure focused on supporting
the company’s technical potential. This means
that as well as being able to call on the best
project managers and engineers today, the
business will also be able to call on the best in
the future. This way ALE aims to continue to
build strong, long-term strategic partnerships as
well as effectively meet the changing needs of its
strategic partners and customers.
The ability of ALE to consistently and
effectively push boundaries while meeting the
challenges of its customers was recognised by
the Australian Business Journal in 2012 when
it awarded ALE a runners up position in it’s
highly competitive Innovation Awards, citing
the Modular Mega Jack as an industry first for
its ability for move modules of 60,000 tons
comfortably. Also among the innovations listed
were the AL. SK350 – the highest-capacity
land-based lifting machine in the world.
Commenting on the awards ALE stated that it
invests in creativity and ingenuity rather then
mass commodities.
only was this someone’s home, we also had
the integrity of the building to accommodate
for. The team overcame this through careful
planning and ensuring that every detail of the
move was planned and surveyed beforehand.”
To offer a complete solution for lifting,
transporting, installing, ballasting, jacking and
weighing large, heavy loads across the world
ALE focuses on its core engineering principles
to ensure the needs of every situation are met.
ALE takes pride in being able to offer ingenuity,
responsibility and flexibility, ensuring the
unquestioned quality of its process while making
sure that risk is kept to an absolute minimum.
The company strives to remain agile and able to
adapt to the ever-changing needs of the oil and
gas industry.
Essential to meeting ALE’s core principles
is the company’s dedicated research and
development team and its commitment to
investing in new technology within the industry.
The R&D team at ALE is responsible for the
record-breaking AL.SK190 and AL.SK350
cranes, which have the capacity to lift up to
5000te. Its Mega Jack, which was instrumental
in the world’s heaviest jack-up earlier this year,
The R&D team at ALE is responsible for the record-breaking AL.SK190 and AL.SK350 cranes, which have the capacity to lift up to 5000te. Its Mega Jack, which was instrumental in the world’s heaviest jack-up earlier this year, further enhances the company’s equipment portfolio
PROFILE ALE
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Operating from offices through the
UAE, Seven Seas Services is a leading specialist
contracting company that provides services in
the marine, offshore and building construction
industry. The company, which is part of the
Seven Seas Services Group, employs a team of
dedicated and highly skilled and experienced
design, services and sales engineers and project
supervisors, which enables it to offer services
across the entire Middle East Gulf region.
It is just under a year since Seven Seas Services
was featured in European Oil and Gas Magazine.
At that time (November 2012) the company
was firmly dedicated to continued growth, while
securing its already strong reputation across
the Middle East Gulf. Shahvir Sidhwa, business
development director, recently highlighted some
of the key developments that have happened in
the company.
“One of the biggest recent developments is
that we are in the process of relocating to new
office facilities,” he said. “While this is part of
our natural growth, it is largely down to the fact
that we have expanded quite a lot, having gone
from having roughly 50 office staff to around
75 now, so the new offices will allow us to
accommodate that, as well as increasing our site
workforce to around 250 workers.
“At the same time, we have also been
expanding our workshop facilities quite
significantly with new machinery, tools and
equipment in line with our growth. In terms of
the new equipment, it includes the introduction
of new CNC machines, which we mainly use for
the fabrication of various furnishings, equipment
and similar items that we use in our living
accommodation solutions. There have been other
introductions, so looking at galley equipment
for example; we have invested in stainless steel
cutters, as well as a lot of new equipment for our
carpentry department. Again, that will be used
for a lot of interior and soft furniture items that
we develop, so beds and other similar items. It
all serves to improve our operations and our
efficiency within our workshops. Take the new
CNC machine for example, before some of that
work would have been a manual operation, so
the benefits are obvious.”
This growth has been part of the natural
development of Seven Seas Services. The
company is already a leader in the region, with
its name synonymous with quality and efficient
project delivery. As Shahvir explained, being a
part of the Seven Seas Services Group has been
a key part of the successful development. “The
main benefits that we find are the financial
strength that the group has,” he says. “Seven Seas
Services is just one division of the overall group,
which is quite financially strong. Apart from
the financial strength the corporate structure
of the group gives us advantages too. It is well
structured, which makes it very easy when new
investments need to be made and approved. It’s
not like a big public company for example, where
we would need to go through various committees
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Natural
Seven Seas Services LLCsevenseasservices.com
ServicesSpecialist contracting services
looking to expand in the Saudi Arabian market.
We don’t have a full presence there but are
looking for a suitable partner to be working with.
I think it will be a key growth area, particularly
as the Saudi Government is looking to conduct
more marine jobs locally rather than exporting
work, which is the current situation. We have
been in talks with Daman Shipyard to open a
workshop in order to build up a small presence
to begin with, and if we can build our business
there we will certainly grow in that sector.
“Over the coming years we will largely focus
on continuing to grow. We have always been
a contractor for accommodation modules but
whereas before we have always done just the
interior the industry is moving towards more
end-to-end solutions. In order to meet that
demand we will move toward becoming a more
complete provider, offering a total modular
accommodation system where we can provide
the complete service to our clients. That is
where I see us progressing to for the foreseeable
future,” he concluded.
or stages to get a decision approved, but rather
they can be made quickly and effectively for the
benefit of the whole organisation.”
Seven Seas Services provides a wide range
of services to clients in the marine, offshore
and construction industries. The company is
able to supply and install a variety of solutions,
largely for offshore rigs and platforms, but
also for offshore vessels. Its large portfolio
includes traditional items such as turnkey
accommodation solutions, galleys, laundry
rooms, windows, fire doors and cabin doors,
ceilings and walls, toilet and shower modules,
and associated services and equipment.
However, as Shahvir explained, the company
continuously looks to develop new areas
to exploit market opportunities. “We have
recently started manufacturing helidecks,
becoming one of the first companies in the
Middle East to start building them out of
aluminium. Companies are now looking at
using aluminium helidecks instead of steel,
largely because of the weight savings they can
gain. As a consequence clients have looked
further at how they can use aluminium instead
of steel in other areas, so this is something
new that we have moved into. We’ve started
aluminium fabrication, so alongside helidecks
we’ve looked at other types of aluminium
fabrication, such as buildings, accommodation
units, modules and other products.”
Due to its extensive range of services and
solutions, the company is regularly contracted
by some of the leading names in the industry for
large projects. One example is the DOLWIN-2
development, which is the largest offshore wind
platform structure ever commissioned. “This is a
project that we worked on with Dubai Drydocks
World, and it really is a key project for not only
us, but for Drydocks World and the region as
a whole. It is one of the first major NORSOK-
specification projects to have been given to
this region – usually these projects are given to
companies in Germany or Norway for example –
so it is quite a prestigious project to be working
on. It also means that we have had to fulfil quite
a steep learning curve in terms of working to the
NORSOK specifications, but ultimately is quite a
feather in our cap in terms of moving forwards.”
When it comes to the future, the business
is targeting further growth over the coming
years. “Naturally we are looking at moving into
new markets and regions,” said Shahvir. “For
example, we have been co-operating on some
projects with Saudi Aramco recently as we are
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Essar Oil is a subsidiary of Essar Energy,
the London-listed oil and gas and power
company, which currently has 741,000 barrels
per day of refining capacity, mainly at its
large refineries at Vadinar, India and Stanlow,
UK. Essar Oil also has a growing exploration
and production business with large potential,
including a global portfolio of 15 onshore
and offshore oil and gas blocks spanning
approximately 35,000 square kilometres. Essar
Oil has a network of over 1400 fuel retail outlets
across India, with a further 200 in various stages
of commissioning, while on the power side, Essar
Energy also has a generation portfolio currently
totaling 3910MW of capacity, with a further
2890MW in various stages of construction.
Essar Oil’s business is very much focused
on India, and although its exploration and
production (E&P) activity includes blocks in
Nigeria, Madagascar, Indonesia, and Vietnam,
the current focus is on developing its assets
within India. Overall, the E&P portfolio equates
to 2.1 billion barrels of oil equivalent of reserves
and resources. “The assets outside of India are
in the conventional space, so classic oil and gas
exploration, whilst in India there is a mix of
unconventional and conventional prospects,”
describes Ifty Nasir, CEO of E&P.
“On the conventional side we have four
blocks, one is in offshore Mumbai, one in
the Cambay Basin, and a couple in Assam
to the east of the country. When it comes to
the unconventional hydrocarbons these are
predominantly in the form of coal-bed methane
(CBM) located in the east,” he continues.
Although all of Essar Oil’s E&P businesses are
considered important, at present more attention
is being given over to India where the company
is currently developing its first coal bed methane
asset, the Raniganj block in West Bengal. “CBM
has been around for a long time, but there are
very few true economic developments in India,”
elaborates Ifty. “Aside from our Raniganj block,
the other producer in India is Great Eastern
opportunities
Energy Corporation Limited, with their block a
little further to the west. Theirs is a more paced
and steady production growth, typical for CBM
projects. Raniganj has a far faster development
phase that should have a production profile not
dissimilar to a conventional oil and gas field.
“We are achieving this through a much higher
rate of drilling and hydrofracturing than would
normally be the case in CBM developments,
having drilled over 100 wells in the last year
and with plans to do a couple of hundred more
in the coming one. This results in efficiencies
that come with a critical mass of activity, and
accelerated production, which improves the
economics,” he continues.
The second project that Essar Oil is pursuing
is the conventional oil block in the Cambay
Basin. “As an oil prospect it’s probably not the
most exciting, but below the oil horizon we
believe there is serious shale gas potential, which
we’ll also be looking to develop in due course,”
highlights Ifty. “This is not part of the reserves
that are in the books, it’s something that is pretty
new and that we believe has great potential.”
He continues with how Essar Oil will
be looking to maintain a mix of both
unconventional and conventional assets in its
E&P portfolio long-term: “It’s important to
have both sides because there’s the potential for
cross-pollination of ideas, and optimisation. This
is particularly true if we are looking at a future
where the government allows what they call a
simultaneous development. This is a policy that
is in progress, and essentially enables an operator
to not only exploit a certain set of horizons or
resources, be that coal, oil or shale for example,
but to develop all the hydrocarbons within that
geographic location.”
That said Essar is also looking to become
one of the leaders in the unconventional
industry in India, and is already well thought
of in that respect. This aspiration can be seen
in the company’s formation of a new CBM and
Unconventional Resource centre in West Bengal
to support the unconventional sector. This
includes exploring specialised types of drilling
and hydrofracturing, as well as managing surface
risks and minimising environmental impacts.
A number of other crucial developments
have been taking place in India as of
late. These include moves by the Indian
Government to develop a policy on shale
oil and gas, which has been in the works
for sometime, and announcements that Ifty
believes are of importance to the progression
of the business: “The government has just
declared the new gas price policy which has
moved from $4.2 per million British thermal
Building
PROFILE EssaR OIL
BelowIftikhar Nasir, CEO of E&P
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PROFILE EssaR OIL
Essar Oilessar.com
ServicesOil refining and retailing, and producer of oil and gas
is imported. It will also help India to develop
this sector through both domestic and foreign
direct investment,” he notes.
Increasing amounts of gas also enables energy
consumers in the country to switch over from
other types of fuel such as diesel, which are
more expensive and more environmentally
damaging, making businesses more competitive.
Likewise with methane considered the cleanest
of all the hydrocarbons, this shift will allow
India to progressively move towards a lower
emission environment.
Reflecting on the direction of Essar Oil’s E&P
business in the coming years, Ifty describes how
it closely reflects its current attention split: “The
near-term focus is very much about exploiting
and developing the assets we currently have
in our portfolio, building a solid platform/
foundation on which to build new opportunities.
This includes being able to bring other partners
into the assets we already hold through farm-
downs and strategic partnerships in and outside
of India. It also allows us to explore the potential
for other geographies through joint venture, or
farm-down partners that may come to work with
us in India.”
units (mmbtu) to $8.4 per mmbtu. It’s a
policy, but a move which results in a far more
competitive price both for the producer and
consumer. Simply put, the price is derived
through a combination of international gas
prices in established markets, where gas to gas
competition already exists, and landed LNG
prices. This will be applicable from April 2014,
however if it were effected today, it would
result in a gas price of circa $6.83/mmbtu
based on assumed regression of the Rangarajan
report recommendations upon which this gas
policy was based. This policy should help
encourage more players into exploring and
producing gas in India, thereby reducing the
average cost of gas in the country.
“This should incentivise investors to come
into India and start exploring and developing the
gas reserves in particular. India is very short on
gas, with circa 60 per cent currently imported,
which puts pressure on foreign exchange
reserves, as well as making it vulnerable to
market spot price which is presently over $16.
As such developing oil and gas in-country does
a number of things. Firstly it presents a source of
gas that is significantly cheaper than that which
Essar Oil will be looking to maintain a mix of both unconventional and conventional assets in its E&P portfolio long-term: “It’s important to have both sides because there’s the potential for cross-pollination of ideas, and optimisation
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Dalian ShipyarD inDuStrial DevelopmentDalian Shipyard Industrial Development General Corporation (DSIDGC) is the subsidiary of Dalian Shipbuilding Industry Co., Ltd (DSIC) which is one of the biggest, most reliable shipyards in China. Relying on advanced design and excellent quality, DSIDGC has become the major supplier for Ugland Construction AS in Norway. In the past decade, DSIDGC has built and delivered to Ugland Construction AS a total of ten vessels. These are semi-submersible barges, flattop barges, including the recently delivered two new generation North Sea flattop barges. DSIDGC’s clients are worldwide, but mainly from various countries and regions in Europe, America and Asia.
Family owned, but globally active, J.J.
Ugland is based in the historic shipping town
of Grimstad in Norway. The Group consists
of a number of different companies, which
between them incorporate a professionally
managed and fully integrated ship owning and
management enterprise, full-service EPC yard,
and offshore operation.
Of these Stavanger-based Ugland Construction
AS was incorporated back in 1997, since
which time it has co-ordinated the Group’s
present marine offshore activities. This includes
commercial management of a fleet of flat-top
barges in sizes between 10,000 and 16,000
dwt, and a self-propelled heavy lift crane
vessel. Before that the Group was home to
another company named Ugland Construction
Company, which was even more involved in the
offshore business through offshore derrick crane
vessels, anchor handling tugs, accommodation
rigs and the like.
These assets are used in marine transportation
and inshore lifting operations for oil and gas
companies, offshore contractors, fabrication
yards, shipping and engineering companies, and
harbour authorities. The company also works
closely with the Group EPC yard, AS Nymo,
on various projects. With a lifting capacity of
600 tonnes, the crane vessel is employed in a
range of assignments for the offshore industry, as
well as harbour developments, bridge building,
salvage and shipbuilding.
This is mainly in the vicinity of the North
Sea, but Ugland Construction AS has also
had a presence in the Gulf of Mexico for the
last 15 years where it maintains a berth place.
Furthermore, from time-to-time the company
also operates off West Africa.
“For the time being we are operating one
crane vessel and 21 cargo barges on behalf of our
Group. Ugland Construction AS does not own
equipment, we are a managing company, so the
vessels are typically owned by Ugland Shipping
and other Ugland companies,” explains Øyvind
Aasland, managing director.
This includes two brand new barges, which
were built at the Dalian Shipyard in China,
and delivered recently. The barges are sisters of
previously ordered barges from the yard, but
have an upgraded deck strength of 30 tonnes per
square metre. “Of the 21 vessels we have, 18 are
standard 300 by 90 foot barges and these two
new builds are the same,” notes Øyvind. “What
is different though is that they are fitted with a
state-of-the-art built-in ballast water treatment
system. This is something new for this tonnage
and has come about as a result of the new IMO
rules that are being presented to the market
regarding environmental impact.”
At the end of 2012 Ugland Construction AS
also became home to another seven large North
Sea barges through the purchase of Viking’s
entire barge fleet. Built in Russia throughout
1994 and 1999, these Lloyd classed barges are
the same dimensions as the two new builds.
Also of note are Ugland Construction’s two fully
packageA tailored
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Ugland Construction ASjjuc.no
ServicesVessel operation and project solutions
working in oil and gas but the wind farm market
is also an essential part of these elements. We
already have a substantial fleet so we don’t
foresee any special expansions of equipment
going forward. It’s a case now of operating these
assets to the optimum through the delivery of
these project solutions,” concludes Øyvind.
submersible barges, which add a further level of
flexibility to the fleet.
Increasingly though Ugland Construction AS
is looking at offering more in the way of turnkey
project solutions as a whole, as opposed to
purely chartering of assets. “We want to tailor
marine transportation solutions into a package
that meets the client’s needs,” emphasises
Tommy Christensen, project manager. “This
could be the provision of the whole marine
transport supply chain from A to B, or any
one element of it, such as parts, storage, sea
fastening, engineering, grillage fabrication, and
loading. This also reduces the risk for the client
by increasing the scope that we can manage
on a project as a one-stop-shop package, and
therefore removing some of the additional
interfaces with other parties.”
To deliver this Ugland Construction AS will
work with a number of partners both internally
and externally. Within the Group this could be
AS Nymo for the fabrication of grillage and sea
fastening for the modules, whilst the rest will be
third party companies that Ugland Construction
AS has longstanding relationships with.
Although it’s a new area of focus for the
business, project solutions is not unknown
to Ugland Construction AS. In the past the
company has delivered such services for the
Statoil LNG receiving terminal at Melkøya, as
part of the Snøhvit Field development. This was
throughout 2004 and 2005, but in the years that
followed Ugland Construction AS concentrated
its efforts into the chartering activities. The
company is now looking to pick up the total
transportation concept again, and is actively
bidding for works to this end.
For larger companies and contractors in
particular the ability to secure all their marine
transportation requirements from one source is
no doubt attractive, and for Ugland Construction
AS bringing together its partners to offer such
a service opens up new areas for the business
to capitalise on. The company isn’t leaving its
chartering services behind though as these
will continue to make up its largest area of
operations, as well as being the assets that will
feed into the project solutions side.
“As always this year is focused on chartering
of the barges, and the crane vessel which is
scheduled for an extensive list of operations
including installation of bridges and in-shore
lifting. On the barge side we are predominately
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integrated automation, safety and information
management systems for both the production,
drilling and quarters (PDQ) platform and the
floating storage unit (FSU), the latter also having
positioning and marine systems.
Kongsberg Maritime’s UK division will
provide project-engineering resource, along with
colleagues in Norway and Korea, and support
the installation during production. “Participating
in potentially the largest development in the
UKCS is a great achievement for us,” enthuses
David. “This project will allow us to further
develop our project and support capability in
offshore production automation and safety
systems in the UK, which, combined with our
Kongsberg Maritime Engineering Division in
the Far East, will enable us to deliver further
greenfield and brownfield projects in the UKCS.
Another area we will continue to recruit for in
the UK is the support of our AUV (autonomous
underwater vehicles) product lines.”
Following the group’s acquisition of Hydroid
a number of years ago, it has become a world
leader in the field of AUVs, a technology that
is finding increasing application in offshore
inspection for both oil and gas and renewable
markets. The company offers an AUV rental
service to its customers and will be announcing
new developments in its AUV technology later
this year.
In response to the offshore division’s
Kongsberg Maritime is renowned
for delivering innovative systems in the offshore,
subsea and merchant marine markets. “Our
division of Kongsberg Maritime provides sales,
project support and customer services such
as training and field support in the UK,” says
David Shand, general manager of Kongsberg
Maritime’s Offshore Division in the UK. “We
live and breathe our core values, which are
determination, reliability, collaboration and
innovation, all of which enable us to provide
state-of-the-art, reliable technology and excellent
support to our diverse range of customers that
range from offshore renewable developers to
offshore production companies.”
Providing global support from local service
and support facilities at strategic locations
around the world such as Aberdeen, New
Orleans, Rio de Janeiro, Singapore and Dubai,
Kongsberg Maritime has enjoyed an increase
in demand over recent years. This has resulted
in the continued recruitment of a significant
number of engineers and support staff at the
group’s UK based offshore division since early
2012 as well as expansion into new business
areas. “Due to further growth in several areas
of our business we plan to continue to recruit
more staff, particularly project support and
field support,” says David. “One area where
we have recruited engineering staff is in
offshore production automation and safety
systems, where we are supporting a number
of installations in the UK sector; we have also
been recruiting engineers in this business area
in preparation for the build up of the Statoil
Mariner project and will continue with further
recruitment for the project and support phase.”
For the Statoil Mariner project, the largest
new offshore development in the UK in more
than a decade, Kongsberg Maritime will supply
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proFilE KongsbErg MaritiME
Innovative
aboveHugin AUV
aboveKongsberg employees
rightKM customer support
belowDave Shand beside test tank
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Ledingham ChaLmersLedingham Chalmers has played an important role on the Scottish legal scene for many years, with the firm’s development tracking Aberdeen’s emergence as the capital of the European oil and gas exploration and production sector and as a centre of excellence for professional services. We are proud to have supported Kongsberg Maritime as its presence in Scotland has strengthened, from advising on property matters through to a range of support on corporate matters, alongside bespoke contract training for key members of the Kongsberg team.
Kongsberg Maritime Ltd km.kongsberg.com
ServicesTurnkey solutions within the oil and gas industry
further develop training in subsea systems,
such as AUVs and also in offshore production
systems,” explains David.
Launching a new era for Kongsberg Maritime
in the UK, the new facilities cement the
group’s commitment to invest in its personnel,
customers and future; it also offers a high quality
working environment, a huge advantage in a
competitive market, as David concludes: “In
today’s environment, particularly in Aberdeen,
resourcing new staff can be difficult. However,
we believe that we offer an excellent working
environment, great career opportunities and
challenging roles. Many of our engineering
positions are for electronics or software
graduates, both of which are in short supply due
to the relatively small number of graduates in
each of these disciplines. To address this issue
we have established scholarships at several
universities in the UK, including the local
universities. Our scholarships give much needed
funding for the ‘Kongsberg scholars’ as well
as summer placements, which offer industry
experience. We have already recruited excellent
graduates from our scholarship scheme.”
continuing success and unprecedented growth,
Kongsberg Maritime announced an investment
of £2 million in the long-term lease of new
premises in Westhill, Aberdeen in February
2012. The purpose-built property includes a
bespoke 45 metre cubed test tank, the first of its
kind in Aberdeen, and the most technologically
advanced dynamic positioning simulator on
the market. Moreover, the Kongsberg Maritime
Training and Simulation Centre takes up an
entire floor at the new building, increasing its
original floor space by 60 per cent and enabling
the group to train more individuals.
Scheduled training courses at the division’s
Aberdeen premises include an overview
of planned automation systems, dynamic
positioning and subsea positioning systems.
Courses are designed to give participants an
enhanced understanding and detailed product
knowledge and may include both operational
and technical training. “We plan to further
develop our training centre to support our
systems, and this will require additional
training staff to support the improvements
in our course offerings in DP operations and
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PROFILE CRyO
Clearly the potential of LNG as a fuel source is massive, and as projects such as these indicate there is still much in the way of development taking place around this
One of the world’s leading
manufacturers of cryogenic equipment for the
storage, transportation and handling of liquefied
gases, Cryo AB has long been at the forefront of
this market having developed its first tank in the
1950s. It’s an area that has become the subject
of greater focus as liquefied natural gas (LNG)
grows as a fuel source.
An independent company belonging to the
Linde Engineering Division, Cryo AB gains
several advantages from its parent business
as managing director Lars Persson explains:
“We have direct access to leading experts in
the cryogenic field. Having a strong mother
company also enables us to go for larger
projects, which wouldn’t be possible without
strong financial backing. Linde also has global
functions such as construction, manufacturing
and procurement so we gain synergies in many
fields. We are a relatively small local operator, so
this opens the door to many global markets.”
Based as it is in Gothenburg, Sweden, Cryo
AB built a lot of its expertise in the Scandinavian
and Nordic countries, and continues to lead
projects in these markets today. Notably in 2011
the company completed Sweden’s first LNG
receiving terminal project. It’s an area where it
has continued to secure work in, including a
new project for Scangas.
“This is the second LNG receiving terminal
that Cryo AB has built of this magnitude,
and once complete will be the biggest facility
of its type in Sweden,” describes Lars. “The
project is progressing very well with a target
for mechanical completion of early next year.
We also see opportunities for other upcoming
projects of this size in Scandinavia, so this will
serve as a good reference for those.”
As well as plants, another side of the
business that is growing strongly is distribution
equipment. This has sparked considerable
investment into development by Cryo AB with a
number of new products now coming to market.
This includes the world’s biggest vacuum
insulated tank with a capacity of 1250 m3, and
the largest LNG semi-trailer on the market to
transport up to 60 tonnes of product.
At the same time Cryo AB has launched a new
providerWorld class
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Cryo ABcryo.se
ProductsCryogenic equipment
It’s a market that Cryo AB is following on a
global basis, as Lars concludes: “We want to
be a world class provider of EPC services for
LNG terminals in Scandinavia, and a supplier
of leading and innovative onboard LNG fuel
tanks, bunker systems and related solutions
to the global marine industry. We will also
continue with our distribution equipment
arm and other developments borne out of our
experience in cryogenics.”
trailer with the lowest centre of gravity available,
which offers superior road handling. Investment
has not only been into new innovations though.
The company has also upgraded its helium tank
container production facilities in the wake of the
success of this product to enable it to produce
more than 50 units per annum.
“We have extensive cryogenic know-how
having been present in the market since it
began,” highlights Lars. “The combination of
this with our core technology and production
capabilities gives us a very strong proposition.
We also focus on offering complete solutions to
the client including after sales services such as
education, maintenance and support.”
One market where Cryo AB has found
significant scope for its capabilities, particularly
in LNG, is the maritime sector. For over 12 years
the company has supplied energy fuel tanks
for vessels such as ferries and supply ships to
run on LNG, which has both economic and
environmental benefits.
This has since been extended to smaller ships
with the company’s development of the world’s
first marine LNG fuel system for tug boats. The
vessels were ordered by the Norwegian marine
services company Buksér og Berging AS to go
into service in late 2013. The system has been
designed specifically to minimise the space
needed for such equipment onboard the vessel,
which opens up the LNG fuel market to even
small ships.
“This was a unique system that enables the
boat to purely run on LNG, as opposed to
a dual fuel set-up, and therefore minimises
the need to carry different types of fuel. The
solution has been of interest for smaller coastal
vessels such as tug boats and passenger ships,
as its the first time that they have been able
to exploit this fuel, so we expect this to grow
further,” explains Lars.
Going one step further, earlier this year
Cryo AB delivered the world’ first LNG
bunkering ship, which operates within the
Port of Stockholm providing LNG fuel to
Viking Line’s new Viking Grace dual fuel
passenger ferry and other such vessels. This
pioneering project was undertaken for AGA
and involved the conversion of a former ferry
into the bunker boat, which has since been
christened Seagas.
Clearly the potential of LNG as a fuel
source is massive, and as projects such as
these indicate there is still much in the way
of development taking place around this.
PROFILE CRyO
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Established in 1948, ms Neumann
Elektronik GmbH is a privately-owned,
medium-sized enterprise with international
subsidiaries and close working relationships with
reliable partner companies. As a system house
ms Neumann Elektronik is one of the leading
suppliers worldwide for high-quality solutions
in information and safety, public address (PA),
acoustic and video, and its modular products are
used wherever high safety standards are needed.
The company offers an extensive portfolio of
fully automatic, digital public address (PA)
systems, information and emergency call
systems, ranging from plant alarm systems to
complete management systems for process
automation, which can be found in a wide range
of industrial settings as well as the rail and public
transport sectors. Moreover, the information and
safety systems developed and produced by ms
Neumann Elektronik are available in a range of
sizes for a variety of applications, and for critical
zones and harsh environments.
Three of the technically demanding sectors
in which ms Neumann Elektronik’s special
information and safety systems are being put
to good use are the oil, gas and coal mining
informationindustries. For decades, customers all over
the world have come to trust these systems,
which are able to provide comprehensive
emergency and danger-alert management even
at the most remote places, such as offshore oil
rigs or pipelines.
To span the distances between the work sites
and the control centre, which are often quite
significant, radio and satellite technologies
are often used. All terminal equipment is
designed for use in environments where there
is the danger of explosion, and it is made to be
highly reliable.
Indeed, one of the main benefits of the
systems manufactured by ms Neumann
Elektronik for use in the oil and gas sector
is their reliability. This applies to its high-
performance systems for large area coverage
with high-powered PA and visual signalling,
systems for high-quality voice communication
in areas with danger of explosion, and efficient
monitoring and surveillance systems.
The company has built up an extensive client
portfolio over the 65 years it has been operating,
and its references for oil and gas projects
includes blue-chip companies from a diverse
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proFilE ms nEumann ElEktronik
ms Neumann Elektronikneumann-elektronik.com
ServicesInformation and safety, PA, acoustic and video solutions
support customers through the whole process
of buying a system, starting with the analysis of
their current situation, through consultation,
documentation, up to implementation and
continuing into the maintenance of an individual
application. In order to ensure optimal, trouble-
free operation of a system, it also offers clients a
comprehensive service and support portfolio.
As an internationally successful supplier of
solutions, ms Neumann Elektronik has created
a name that is recognised the world over and is
highly regarded for its combination of traditional
strengths and innovative excellence. Over the
course of its history, it has grown from a small
business into a successful enterprise thanks to a
dedication to innovation, a culture of hard work
and a resolve to grow its presence worldwide.
Going forwards, it has even more expansion
plans, with visions for Brazil, Africa, South Korea
and Japan over the next two years, as well as
continuing to support its local partner in the
Russian oil and gas sector. If the company applies
its usual determination to these new ventures,
there seems little doubt that it will continue to
see more growth well into the future.
range of locations, including AGIP Gas, Libya;
Oil Platform Zirku-Island, Zakum Development
Company/Abu Dhabi National Oil Cooperation
(oil-producing company), UAE; CPCL Refinery,
Chennai, India; PKN Orlen Olefine, Poland;
Bharat Petroleum, India; and Oil Refinery
‘Reliance’, Jamnagar, India. It also works with
a range of sophisticated and modern suppliers,
such as Telecom Systems.
One of its flagship projects in the oil and gas
sector was with BP, on a modern and innovative
IP-based factory-wide alarm system. This called
for a comprehensive solution for evacuations
with a central fire brigade alarm call station, and
combined five decentralised DS-6 subsystems
into the overall system TIMM. The individual
DS-6 systems are calibrated especially for
evacuation systems in accordance with the
standards VDE 0828 and EN 60849. Of greatest
importance, the system’s crucial safety-relevant
feature lies in the fact that its self-sufficient
subsystems automatically take over all functions
for their relevant alarm zones in case the higher-
level network breaks down.
Another important development for the
company occurred early in 2012, when it
announced that it had been chosen to deliver
the innovative IP-based DS-6 system for sound,
intercom and alarm on behalf of the Group
‘Turkmengaz’. The gas field, South Yoloten, is
located in the south eastern part of Turkmenistan
near the border with Iran and Afghanistan.
The area spreads about 3000 km², and as such
it is rated as the second largest gas field in the
world. In this high explosive area safety plays
an important role, and ms Neumann’s modern
IP-based DS-6 systems are designed redundantly
in five different places because of their reliability.
The deciding factors for the award of the
contract to ms Neumann Elektronik have been
highlighted as its customised system solutions,
the high functionality and quality of its facilities
and the general competitiveness of its products
and services.
As well as manufacturing and supplying state-
of-the-art systems, the company is also able to
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For decades, customers all over the world have come to trust these systems, which are able to provide comprehensive emergency and danger-alert management
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Wood Group EnGinEErinG SErvicES (MiddlE EaSt) Wood Group Engineering Services (WGES) was established in 1993 to offer comprehensive engineering services to the MENA region and now operates from three workshops located in Dubai, Abu Dhabi and Doha.These workshops provide a wide range of services including the manufacture and repair of API products, overhaul services for pumps, compressors, industrial gas turbines and general oilfield equipment, reverse engineering, rotor balancing and an extensive field service capability. WGES has successfully developed its relationship with Top Oilfield Industries over several years and looks forward to continuing to providing support to it, and all our many other valued clients for many years to come.
qualityOne-stop
Established in 1995, as Top
Oilfield Engineering Services, Top Oilfield
Industries Limited has become a leader in land
rig refurbishment, oilfield drilling equipment
manufacture, repair, overhaul and modification.
Based in Sharjah, UAE, Top Oilfield Industries
Limited is perfectly located to meet the needs of
drilling contractors operating in the Middle East,
Africa and Asia.
The company’s facilities currently comprise
of 30,000 square meters of fabrication
yards, 59,000 square meters of land rig-
commissioning and rig up yards, management
offices and storage areas and 65,000 square
feet of workshops. The company boasts an
impeccable record of high quality and cost-
effective oilfield refurbishment work completed
in a timely fashion. Targeting oil and gas
contractors and NOCs and placing quality at
the forefront of its business, the company is
dedicated to going to extraordinary lengths to
ensure customer satisfaction.
Operating as an API and ISO accredited
company and employing an in-house training
and mentoring programme, Top Oilfield
Industries Limited strives to be the leading name
in rig support and maintenance solutions as
CEO Ian Midgley explains: “Since its creation
Top Oilfield has always sought to improve and
develop its product and service lines in order to
better support its customers and achieve its long-
term vision of becoming the service provider
of choice for drilling contractors active in the
Middle East and beyond.
“We provide in-house training and mentoring
schemes and start by only targeting and
recruiting highly skilled, experienced and
motivated personnel. This enables a high degree
of cross and up skilling within the workforce.
Many of our staff have been with us for more
than ten years.”
Ian observes that the company’s competitive
edge is founded on excellence built on providing
fast, highly competitive and reliable services to
the company’s target base. He notes: “The proof
is the fact that we have a very high retention
rate and our base continues to grow. We provide
bespoke services but with a standard price list.”
Also key to the company’s success is the
one-stop-shop approach that it provides for
its customers. Top Oilfield Industries Limited
believes that the key benefit of providing a
one-stop service to clients is in streamlining
communication between third parties,
allowing projects to be completed in a timely
and cost-effective fashion. Ian elaborates:
“Our customer base ranges from very large
multinational corporations to smaller more
regional operations, all of whom benefit by
being able to deal with one service provider
for the majority of the works they have at any
particular time. Because the vast majority of the
work is undertaken in-house we ensure high-
end production standards, adherence to delivery
dates and excellent cost control.
“The regional clients have the convenience of
not having to get involved in time-consuming
correspondence with a number of companies
and the convenience of a single point of contact.
For the larger clients there is the same benefit,
but with potentially much higher cost savings
due to their much higher cost base.”
Another part of the company’s one-stop
approach is its ability to provide a diverse
and adaptable service. Able to provide
services ranging from land rig and jack-up rig
refurbishments, equipment manufacture and
design and technical field support, Top Oilfield
Industries Limited is well placed to support
its customers. Ian says: “Top Oilfield is fully
committed to providing our customers with high
performance products and services and we have
demonstrated our ability to deliver all of the
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Top Oilfield Industries Limitedtopoilfield.com
ServicesOil rig support and maintenance solutions
environmental culture, regardless of our
geographical locations, in our potentially high-
risk industry.
“For us to achieve our objective of world
class levels of HSE performance, everyone from
the CEO downwards is genuinely committed
to driving HSE performance within our
organisation. We all know the phrase ‘Safety is
everybody’s responsibility’, which predominately
is the case, but we know it is the executives and
managers that will be key to our success.”
Throughout the rest of 2013 Top Oilfield
is committed to growing its regional presence
while remaining true to its core principles as
Ian concludes: “We continue to concentrate
on developing our presence regionally in order
to enhance the support we currently provide
to customers operating throughout the Middle
East, Asia and North African oil/gas producing
areas. Coupled with this is our focus on
ensuring that our business is fully enabled to
provide the products and services which our
customers seek.”
projects we undertake to the highest quality, on
time and at the most competitive industry rates
anywhere. We have recently delivered a USD 30
million jack up refurbishment project which,
due to the condition of the rig when it arrived in
our shipyard, required our marine project teams
to ‘pull out all of the stops’ to ensure the vessel
left our facility ready to drill and provide many
years of service for our customer.
“Our land rig division is currently
undertaking full re-build/remanufacture of
three 1500 hp rigs; these ‘all western’ units are
a mixture of new and refurbished components.
Our ability to mix and match new elements
with refurbished parts allows Top Oilfield to
produce high caliber rigs for our customers
within their budgets.”
Since 2007 the company has enjoyed
continued growth as its efforts have been
rewarded. Moving forward it has opened new
workshops in Mumbai and signed a joint
venture contract with a company in Saudi
Arabia, reflecting the growing regional demand
for rig support. Ian confirms, “We have gradually
broken into the highly competitive market in
India where the Top Oilfield brand was known
by the large international players, but the major
Indian players had to be wooed. We started
with some small jobs and we are now building
momentum. We have used one location for
works since we opened and got our first work.
We are nevertheless searching for an even better
location to improve our ability to meet our
customer’s needs.
“We see the Saudi market as a critical part
of our future business, however there is no
point in entering such a market until your
operation has the strength to be able to choose
the best possible partner and meet the inevitable
demands from such a strong and fast growing
market. We believe that we have found such
a partner in the Al-Bassam Group. We have
founded our JV, which is currently in the process
of being licensed through SAGIA. We plan to
roll out our services in the pre-licensed period
through a temporary partnership with one of
the Al-Bassam operating companies, Gulf Heavy
Industries LLC.”
Top Oilfield recently achieved two million
hours without a lost time injury. Ian explains
how this was achieved and the company’s
commitment to health and safety. “At Top
Oilfield we understand both our moral and
the commercial requirement to establish
and maintain a strong health safety and
PROFILE TOP OILFIELd IndusTRIEs
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First classsupportPrivately owned marine services
and logistics provider Ben Line Agencies Ltd
has been active in Asia for more than 150
years. Operating within four business divisions,
liner agency, port agency, offshore logistics and
project logistics, the group has expanded its
services since its inception as a ship owner in
the 19th century and subsequently as a drilling
contractor in the 1970s. Boasting more than
100 offices spread across 16 countries in Asia,
the group’s comprehensive office network,
combined with its history in the region, gives it
a major advantage in a competitive market, as
Edward Thomson, regional general manager of
Ben Line Agencies’ Offshore Support division,
explains: “Due to our longevity in the region we
have a solid understanding of local operational
and customs formalities in each of the countries
that we operate in. Through our vessel and
rig owning background we can offer the best
possible services in the highly pressurised
environments that our clients operate in. We
fully appreciate the importance of being available
24/7, the need for flexibility and, above all, the
requirement for a proactive approach.”
Working with major operators in the oil
and gas industry, such as Maersk, POSH
Semco, Fugro, Heerema Marine Contractors,
McDermott, Rowan Drilling and Swire Pacific
Offshore, Ben Line Agencies recognises that
the offshore marine sector is unique and
strives to ensure a consistent first class service
across a range of target market segments. “We
believe in developing long-term partnerships
with our clients by offering a consistently high
level of service throughout our office network
together with bespoke solutions to assist them
with specific challenges. As testament to this
approach, a number of our key customer
relationships go back more than ten years,”
says Edward.
The division offers a wide range of services,
and target market segments within its offshore
support sector include survey, subsea, inspection
repair and maintenance (IRM), engineering,
procurement, construction, installation and
commissioning (EPCIC), drilling contractors,
exploration and production (E&P), floating
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Ben Line Agenciesbenlineagencies.com
ServicesSpecialist marine agency and logistics support
last decade to ensure it can take on increased
demands from its increasing client base.
Specifically the company has opened up offices
in 11 supply bases throughout Asia to cater
to the needs of its clients. Most recently, an
office has been opened in Ranong port, on the
west coast of Thailand next to the border with
Myanmar, which acts as an alternative logistics
support base to Singapore with offshore support
vessels frequently calling there to take bunkers
and supplies and to conduct crew changes.
Furthermore, following a number of positive
enquiries from its established customer base,
the group has also set up operations in Timor
Leste. “Our offshore support services division
is certainly a growth market for us. The World
Subsea Vessel Operations Market Forecast
2012-2016 noted that $77 billion is to be
spent on worldwide subsea vessel operations
in those years, an increase of 63 per cent over
the previous five year period. We expect to see
a significant increase in EPIC projects such as
PLEM and SURF subsea installations and also an
increase in high capability vessel demand in the
region,” says Edward.
With a keen eye for finding new
opportunities, Ben Line Agencies is following
the development of new sectors within the
offshore sector, such as offshore platform
decommissioning, offshore wind and wave
farms and anticipates an increase in future
FSO projects in Asia, as Edward concludes:
“According to a recent report by energy industry
research and consultancy group Douglas
Westwood, the continued expansion into
deepwater locations could drive a doubling of
worldwide investment in Floating Production
Systems over the next five years to $91 billion. A
total of 121 floating production units are forecast
for installation worldwide during this time
period, representing a 37 per cent increase in
the fleet. With our recent experience with EMAS
AMC and EOCP, we believe we are best placed
to participate in future FSO projects in Asia.”
production systems (FPSO, FSO, FLNG),
oilfield services, as well as subsea power cable
installations. “Whether our clients are looking
for assistance with costs, local formalities
and process flows for their project bids, or a
one-stop-shop solution for an offshore project
installation with multi-site vessel and equipment
mobilisations, we have the proven track record
to assist them,” highlights Edward.
Currently providing marine agency and
logistics support services to EMAS-AMC and
EOCP in connection with the installation of
FPSO Perisai Kamelia in PM301 block in the
Kamelia Field off Kemaman in the Northern
Malay Basin for Hess. EMAS-AMC’s scope of
work includes the installation of the mooring
system, towage of the FPSO from Singapore
to the field and the hook up of the mooring
system on behalf of EOCP. “The marine spread
for this project consists of the main construction
vessel, two tow tugs, two tug and barge sets and
a fast crew boat,” says Edward. “We assisted
with the mobilisation of the marine spread
in Pasir Gudang where the chains, piles and
accompanying equipment were prepared and
loaded onto the departing vessels. Our scope
of work included arranging Petronas and
FOMEMA medicals, sign on/off, meet and greets,
hotel bookings and the associated transport
needs of the project and marine crews, customs,
clearance, and the supply of cranes, forklifts and
specialist heavy lifting equipment.”
In Kemaman Ben Line Agencies is offering
a similar range of offshore support services
to ensure EMAS delivers to its customer on
time and within budget, as Edward highlights:
“Whatever our client requires, we will endeavour
to provide a workable and affordable solution as
quickly as possible.”
Aware that it is operating in a growth market,
Ben Line Agencies has invested heavily in its
offshore support services division over the
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Whether our clients are looking for assistance with costs, local formalities and process flows for their project bids, or a one-stop-shop solution for an offshore project installation with multi-site vessel and equipment mobilisations, we have the proven track record to assist them
The success of CS Combustion
Solutions (CS) has been founded on the skills
of a team of experienced professionals who are
dedicated to reliability and innovation in the
field of combustion technology. The company’s
employees have over 20 years of experience in
the engineering, supply, and commissioning of
vertical and horizontal burners and combustors
for a variety of applications, including sulphur,
spent acid and acid gas; waste gas and waste air;
waste water; hazardous and special waste liquids
and pasty waste fluids.
CS can also draw on the benefits of being
a member of the Unitherm Cemcon Group, a
privately owned company with its headquarters
in Vienna, Austria. The Unitherm Cemcon
enterprise has been working in the cement
industry since it was established in 1946, and
over the last decades Unitherm Cemcon has
gained a reputation as a worldwide leader in
rotary kiln burners. As a result, CS can rely on
Unitherm’s resources and experience in boiler
and rotary kiln burner construction.
What sets CS apart in the market is its
unique approach to the combustion process,
sparks
which begins with the high-intensity mixing
technology that forms the basis of all its process
burners. It is the mixing characteristics of
these burners and chambers that results in
their extreme reliability, and allows customers
to achieve the lowest possible emissions. At
the same time, CS’ incineration processes have
introduced many unique innovations that have
led to increasingly economical designs.
CS is proud of the fact that in whatever process
its technology is applied, the result will be
objective advantages from both operational and
cost perspectives. Such advantages include low
emissions, excellent flame stability, high turn-
down ratios, the ability to deal with upstream
upset conditions, low maintenance, low lifetime
cost and energy cost savings.
The products and services on offer from CS
can be divided into four categories – burners,
combustors, injection systems and engineering
and service. In the first area, CS engineers and
supplies burners for special applications with
performance ranging between one and 90
MW. The burners are customised and designed
according to customer needs and requirements.
Furthermore, the SWB Burner operates on a
variety of standard and special fuels, which can
be directly injected simultaneously into the
burner. These products have applications in a
variety of fields, for example, industrial boilers,
rotary kilns, fluidised beds, combustors, static
incinerators, furnaces and O2-applications.
When it comes to combustors, CS is an
expert in the thermal oxidation of liquids, gases
and powdered solids derived from by-products
in the refinery, petrochemical, chemical and
pharmaceutical industries. CS’ team has two
decades experience in the design and supply
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CS Combustion Solutionscomb-sol.at
ServicesCombustion technology
of thermal oxidisers and firing systems, and as
a result, the company can provide clients with
a full range of engineering and supply services
consisting of:
Problem evaluation 6
Layout and design of combustors including 6
firing system and lances
Static calculations, CFD – simulations 6
Detailed engineering, selection of the lining 6
materials
Manufacturing according to regulations 6
Transport, erection and commissioning 6
Moving onto injection systems, CS selects
and engineers the optimal atomising system for
the specified application. To ensure the optimal
proportion between atomising results and media
consumption, CS works with the proven dual
fluid premix-nozzle, pressure atomiser nozzle
and Ultrasonic nozzle systems.
The predominant atomising fluids to be used
are low-pressure steam and compressed air,
although it is possible to use other gases such as
nitrogen and natural gas. The pressure for the
atomiser gas ranges between three and ten bar,
in accordance with the nozzle system used.
In addition, CS offers lance/nozzle systems for
the SWB burner and for the direct injection of
fluid into its incinerators. It also offers nozzles
for the following applications:
Ammonia injection systems for SNCR – plants 6
Flue gas cooling & quenching systems 6
Lime milk injection for semi-dry 6
desulfurisation
Process applications for food and chemical 6
industries
It is through its fourth offering, engineering
and services, that CS supports its clients in
engineering and evaluating their projects. The
company is able to develop and tailor-make
concepts for customers’ special problems. Overall
CS provides a very comprehensive engineering
and services proposal, which includes evaluation
and optimisation of existing combustion
processes, consultation for combustion plant
operators, and basic and detailed engineering of
burners, combustors and incinerators.
When considering the overall package of
products and services on offer from CS, it is
no surprise to learn the company works with
many recognisable names across a variety of
industries. These include a contract in 2012 with
a well-known refinery in Russia, which included
a combustion unit with combustor and fuel
feeding lines as well as a waste heat boiler with a
steam drum.
Other notable contracts include an Austrian
company, which ordered two WSA lines for
its plants in India and Indonesia; plus CS has
an order for a waste liquid treatment plant in
Great Britain.
When fulfilling these contracts, CS often
strives for a real partnership, which it aims to
turn into a long-term customer relationship.
Overall, CS has a logical methodology,
which it applies to its projects – its approach
is innovative, solution-oriented, precise,
co-operative and reliable.
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When it comes to combustors, CS is an expert in the thermal oxidation of liquids, gases and powdered solids derived from by-products in the refinery, petrochemical, chemical and pharmaceutical industries
Brubakken has a long and well
established history as one of the largest and
most flexible businesses dealing in the sales,
service and rental of forklift trucks, terminal
tractors, lifts and lift trucks. The company,
which predominantly operates in Norway
and Sweden, is one of the industry’s dominant
players and represents some of the leading high-
quality brands in the Nordic region.
Brubakken was established in 1956 and today
serves its wide customer base from 17 locations
in Norway and three in Sweden, employing
around 160 skilled members of staff. Throughout
its history the company has been successful at
achieving growth and adapting to the market
in order to maintain a leading position. Its
expansion has been both organic and through
acquisitions. In more recent years the company
has acquired a number of related businesses
that have added value to its operations. In 2008
for example, Brubakken took over most of the
bankruptcy estate of AL-Machine, in 2011 it
acquired Electrical Construction Equipment
in Sandnes, and in 2012 it purchased Inland
Truck Service AS. Other highlights during the
2000s have included the company becoming the
Worldwide Dealer of the Year for Konecranes
(SMV) in 2009 and obtaining the agency for
Hubtex in Norway in 2011.
player
The range of products on offer from
Brubakken is vast, encompassing solutions from
well-known and highly respected brands such
as Nissan, TCM, SMV (Konecranes), Hubtex,
JLG, Versa Lift, and Ruth Mann. When it comes
to lifting equipment the company’s range covers
a variety of applications for all types of work
at height, including vertical lifts, scissor lifts,
boom lifts, belt lifters and fixed hang mounted
platforms.
Brubakken is well known in the industry for
its range of forklift trucks, which is its largest
area of business. In this field the company acts
as a logistics and machine partner for Norwegian
industry by selling and renting equipment for
all types of functions and tasks. It is one of
Norway’s largest leasers of trucks and also has a
large number of other machines for rental, such
as wheel loaders, logstackers, terminal tractors,
reach stackers, international trucks, trailers and
other solutions. The business is also a main
dealer for Nissan forklifts in the Agder counties
of Telemark, Vestfold, Buskerud, Akershus, Oslo,
Hedmark, Hordaland and Ostfold.
In the field of forklift trucks Brubakken
has a number of models to suit various client
applications. The company acts as a brand-
independent supplier of forklifts and prides itself
on providing what the customer wants. Included
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Brubakkenbrubakken.no
ServicesHires and sells forklift trucks and associated equipment
At Brubakken, each employee is trained in
safety every day in their work in accordance
with the highest standards and accreditations.
All employees have full access to the company’s
web-based internal control system where
all governing documents, HSE manuals,
instructions and work practices are readily
available. Thanks to its emphasis on HSE
the company is pre-qualified as a supplier
of products and services to a large number
of individual companies, and operates in
accordance to the Achilles system on behalf of its
members in various industries.
When it comes to truck and lifting solutions
Brubakken is able to offer a complete service
package to its clients. This dedication to
service has enabled the business to grow in its
markets and gain an enviable reputation. With
Brubakken always looking to add to its range of
solutions, and its ongoing focus on improving
its workforce and operational procedures there
is little doubt that the company will continue to
be successful.
in this offering are forklifts from Nissan, SMV
Konecranes and TCM.
It also offers a range of four-way trucks,
which represent a flexible solution for industrial
applications. These are four-way side loaders
with electric drive that come in load ranges
between 1.5 tonnes and 500 tonnes, and can be
used for the handling of long goods, sheet metal,
tools, cable drums, rollers and large pallets in
confined warehouse spaces with rack systems.
They can also be used as free-range trucks for
outdoor applications. Included in this category is
the Hubtex DQ series, which represents a robust
and compact four-way side loading solution for
indoor and outdoor use.
For clients in the marine sector, specifically
ports, terminals, supply and distribution bases
and other heavy industry sites, Brubakken
supplies many models of MAFI manufactured
terminal tractor. These diesel-powered
machines have a capacity up to 45 tonnes
and are characterised by their rock-solid
construction, their reliability, low noise and
efficient energy consumption.
Alongside new equipment Brubakken has
a large range of used/second hand equipment,
which it sells both to the home market and
customers abroad. In its used catalogue Brubakken
has a variety of machines and solutions and it
also actively trades/brokers machine acquisitions,
which allows the client to free up their capital and
time by having Brubakken handle redundant or
retired machinery.
This level of customer dedication extends
to Brubakken’s servicing operations, where the
company acts as a service partner for all truck
and lift problems that clients may experience.
Brubakken will accept service requests for all
brands of machinery and has access to the
necessary parts to deal with any problem. Its
team of skilled and highly knowledgeable
technicians and mechanics all have technical
backgrounds and are certified to conduct expert
inspections. To simplify the service operation
Brubakken has a large parts inventory for
all brands that it deals, and is able to source
additional parts for repair and servicing.
Considering the equipment that Brubakken
deals in it is no surprise that the company places
health and safety at the top of its priorities. All
of its employees across its sites in Norway and
Sweden systematically and continuously improve
in all aspects of the organisation, striving for zero
targets in damage and errors whilst ensuring 100
per cent customer satisfaction.
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When it comes to lifting equipment the company’s range covers a variety of applications for all types of work at height, including vertical lifts, scissor lifts, boom lifts, belt lifters and fixed hang mounted platforms
Brown McFarlaneBrown McFarlane is the foremost supplier of pre-fabricated storage tank plates and sections in the British Isles. Our relationship with Motherwell Bridge spans decades and we have been their partner in numerous tank projects during the past twenty years. By offering complete supply of painted, profiled, bevelled and rolled products, we have supported Motherwell Bridge in contracts in such diverse locations as Kazakhstan, Liberia and Nigeria as well as the length and breadth of the United Kingdom.Brown McFarlane’s Quality Control and Inspection procedures have ensured that, regardless of location, tank assembly has proved to be a trouble-free operation.
It is around one year since
Motherwell Bridge Ltd last appeared in European
Oil and Gas, at a time when the business was
maintaining its focus on developing in its
key markets. Since then the company, which
is widely recognised as the world’s leading
manufacturer and maintainer of storage tanks,
heat exchangers and gasholders, has continued
to grow, cementing its position at the forefront of
the industry.
In fact, in early 2013 the company, which is
based in Lanarkshire, Scotland, announced that
it had seen operating profit rise five-fold over the
previous two years, largely due to its pursuit of
a string of high-profile overseas contracts. For
example, the business secured multi-million
dollar contracts in Liberia in West Africa,
Iraq, Turkey, Brazil, Mexico and India, which
effectively saw its order book increase by around
80 per cent.
These projects followed the business strategy
set out by Motherwell, which revolved around
concentrating on engineering, design and
construction of its core products – storage tanks,
gasholders and heat exchangers, particularly in
West Africa and the developing regions of Brazil
and India. This point was reiterated by Russell
Ward, chief executive, when last speaking
to European Oil and Gas: “As a global player
Motherwell Bridge’s focus today, as it relates to
its large storage tank business, is largely on the
UK, Middle East and West African oil and gas
markets,” he confirmed.
“Separately, its gasholder business is focused
primarily on the global steel manufacturing
industry with a specific emphasis on the
Indian, South American and Far East markets.
Meanwhile, Motherwell Bridge’s heat exchanger
business targets the North Sea and shore based
operations of its main oil and gas clients. In
order to further this, the company is also in the
process of offering a similar service to those
based in the Middle East, where it is currently
engaged in supplying units in Iraq.”
As illustrated, the company’s core services
extend across three key areas of business, but
the projects it has won cover all of these. For
example, in April 2013 the company finished
the construction of its first tank on a $22 million
project to renovate and build 22 oil storage tanks
in Liberia. This represents a significant project
for the business, which commenced working on
the site during 2012 and has been contracted
to modernise the boat offloading, pipeline and
jetties on site, carry out all civil engineering
works, demolish redundant plant facilities,
construct new bunding, lay foundation and
construct new tanks, lay pipelines and install
new pumps and electrical systems, and develop
new instrumentation and fire fighting systems.
“We have been exploring opportunities in
West Africa for some time and this contract with
LPRC demonstrates our ability to undertake
complex operations in new markets, building
on our existing projects in Nigeria,” said Russell,
speaking about the project on the company’s
website. “We see significant opportunities
in locations like Liberia, as there is still a
tremendous amount of work to be done in the
country following decades of civil war and we’re
not afraid of tackling challenges in what can
still be a difficult environment. But we haven’t
gone into this job with our eyes closed. We’ve
taken a pragmatic approach and have teamed
up with people who know the market and can
find the people and skills we need locally to
make it happen. This project demonstrates what
the modern Motherwell Bridge has to offer –
the senior project management and technical
expertise necessary to undertake even the most
complex of tank storage projects – anywhere in
the world.”
Closer to home, tank storage is also a growing
market in the UK for Motherwell Bridge as in
May 2013 the company was awarded a contract
to design, procure and install the replacement
floor and double deck floating roof for a storage
tank at Essar Oil (UK)’s Stanlow refinery, which
was formerly owned by Royal Dutch Shell.
Essar is conducting an ongoing investment
programme at Stanlow and Motherwell Bridge
will be handling the replacement of the floor
and double deck floating roof on one of the
facility’s 100,000 m3 storage tanks. Together
with the recent international developments this
project represents Motherwell Bridge’s continued
success in its domestic market and is a strong
Highlyreputed
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Motherwell Bridge Ltdmbgroup.com
ServicesManufactures storage tanks, heat exchangers and gasholders
March 2013, for example, the business further
strengthened its team with the addition of key
employees. It expanded it storage tanks division
by adding two design engineers, a junior welding
engineer and a trainee CAD designer to the
design and engineering team. Clayton Walker,
Motherwell Bridge’s gasholder division recruited
a trainee design engineer during the same period,
and a third new project manager, Alan Taylor,
was added to the heat exchanger team.
These additions will only strengthen an
already industry-leading team, continuing to
drive Motherwell Bridge to new heights. In
terms of growth the business is continuing
to look to international projects, as well as
maintaining its position domestically. During
2013 the company is looking to carry out high
profile networking by appearing at various
industry exhibitions and conferences to secure
new leads. With the strengths of its name
preceding it, there is little doubt that Motherwell
Bridge will find a wealth of new work to propel
it forward in the future.
endorsement of its capabilities, particularly in
floating roof projects.
Of course, Motherwell Bridge’s reputation
is in little need of further endorsement, with
the company firmly recognised for the highest
standards of quality, health and safety. Indeed,
during its history the business has received a
number of prestigious awards in these fields
including the British Safety Council National
Safety Award (achieved annually since 2006),
RoSPA President’s Award (achieved in 2004
on receiving ten consecutive Gold Awards),
RoSPA Order of Distinction (achieved in
2009 on receiving 15 consecutive Gold
Awards), Membership of the British Safety
Council, Nominated for Employer of the Year
Scotland 2013, and quality and environmental
management systems accredited to according
ISO standards.
Naturally, achieving this level of quality
relies heavily on the skill and competence of
Motherwell Bridge’s employees – an area in
which the company continuously invests. In
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There have been major
developments for BAM Energie since it was last
in European Oil and Gas magazine in 2011; the
company has progressed rapidly in the offshore
wind programme and completed its product
for UK round three, a cutting edge concrete
gravity base foundation (GBF), as part of a
joint venture with Van Oord. “The basic design
concept of the GBF was completed end of 2012
and was first shown at the Concrete Offshore
wind exhibition in December 2012, before we
exhibited a further developed version at the
Manchester Central Convention Complex’s
Renewable UK conference in June. We shall also
be present at the upcoming European Offshore
Wind Conference in Frankfurt. Overall people
have been impressed with our design, we have
received very positive feedback and are currently
entering into tenders with several developers
for round three,” says Ferry de Bruin, general
manager of BAM Energie. “We have also made
progress in other areas, such as the tidal market,
compressed air energy storage (CAES) and the
high voltage sector.”
The GBF began life because BAM Energie
could see that demand for sustainable energy
was only going to increase. As a result BAM
Energie, BAM Nuttall and Van Oord Offshore
Wind Projects joined forces to develop a product
specifically suitable for larger offshore wind
turbines in deeper waters. The concept for the
GBF was developed from BAM Energie and Van
Oord’s expertise in the design and construction
of immersed tube tunnels and gravity base
structures for the oil and gas industry. Working
together, the two firms created a self-buoyant
hybrid solution, which has undergone model
testing and is adaptable for a range of water
depths, wave heights and seabed conditions.
Consisting of a concrete caisson and steel shaft,
the base is cast onshore before it is installed into
position offshore using standard vessels, thus
eliminating the need for heavy lift equipment.
In February 2013, following thorough
Integrated
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Wind foundationAs part of its activities in the renewable energy sector, BAM Infraconsult provides
design, engineering and consultancy services for offshore wind projects. To this
end, BAM Infraconsult has developed a Gravity Based Foundation (GBF) concept
together with BAM Energie, BAM Nuttall and Van Oord, which they are ready to
deliver to wind farms that are under development in the North Sea. The team
comprises all disciplines, ensuring that all aspects of design, construction and
marine operations are fully integrated. The GBF is fully self-floating, has been
subject to extensive design calculations, physical and numerical modeling and
DNV certification, and is ready for project implementation.
ContactBAM Infraconsult bv - P.O. Box 268, 2800 AG Gouda, The Netherlands
Jos van Rijen +31 182 590 455 [email protected]
Nhut Quang Nguyen +31 182 590 474 [email protected]
Delta Marine Consultants is a trade name of BAM Infraconsult bv
LNG FacilitiesLiquefied Natural Gas (LNG) is currently, possibly, the fastest growing major fuel source
on earth. Delta Marine Consultants has grown to become a major player in the design of
Marine Civil Infrastructure for the Oil and Gas industry and for LNG developments in
particular. DMC has full in-house capabilities for providing integrated civil design services
throughout the entire project design life cycle, from performing scouting studies up to
and including detailed jetty design and site engineering. Capabilities include design of all
Marine and Coastal Structures, ship-to-shore design, mooring analyses and port
operability studies.
www.baminfraconsult.nl
www.dmc.nl
Advertentie special BAM Energie.indd 1 18-7-2013 20:30:39
BAM InfrAconsultBAM Infraconsult is a consultancy firm with offices in Gouda (head office), Amsterdam, Apeldoorn, Breda, The Hague, Utrecht, Jakarta and Singapore, along with support offices in Ravenstein and Zuidbroek.BAM Infraconsult is specialised in civil marine, infrastructure and energy projects. Currently it provides BAM companies with engineering support for gravity based structures that support offshore wind turbines and transformer platforms.Through its trade name Delta Marine Consultants, it provides worldwide consultancy services to EPC contractors for ports, marine and offshore facilities for major oil companies such as Shell, Chevron, BP and Esso. Using ‘virtual’ construction, it is a leading player in the development of the Construction Information Model.
examination and verification of the conceptual
design basis, BAM and Van Oord obtained the
DNV Statement of Compliance for the GBF,
confirming to both companies that they have
found a robust and reliable solution.
“Our concrete base and steel shaft is a market
leading concept at the moment because it
is different to our competitors’ designs. The
combination of the materials leads to a very
compact design because of optimal use of
materials and a weight distribution that creates
a high degree of floating stability throughout
the tow and installation phase. Offshore wind
is really taking off at the moment in the UK,
especially in Scotland for round three, and if
our product is successful here our future plans
are to sell it in other countries in Europe and
around the world,” says Sander Overbeeke,
project manager for the offshore wind projects.
Having entered the market, BAM
Energie has been successful in several pre-
qualifications for round three of the offshore
wind programme and aims to continue with a
demonstration project to prove the capabilities
of the GBF solution.
Formed by BAM Civiel, one of the 25
companies operating under the Royal BAM
name, BAM Energie carries out multi-
disciplinary projects in the energy industry.
Serving as the single point of contact, BAM
Energie delivers high-quality and sustainable
services in the fields of design, construction,
renovation, commissioning and maintenance
of power stations and related plants. “We have
advanced a lot in the high voltage market in
the UK, the Netherlands and Germany, which
is anticipated to be worth around one billion
euros to one and a half billion euros when it
comes into fruition over the next three years,”
says Ferry. “We are teaming up with Cofely
BAM Energiebamenergie.com
ServicesDesigns and constructs solutions for the energy industry
Fabricom for this market, who we worked with
on a successful waste to energy plant last year,
and have already been successful in securing the
Randstad 380kV Noordring in the west of the
Netherlands. We expect a lot of work coming up
in the high voltage market, and being succesfull
on other projects as well.”
Believing both project and process are
paramount, BAM Energie has a strong
reputation for offering a comprehensive
service package to its customers, which is
made possible through the company’s own
expertise, sophisticated in-house technologies,
strategic partnerships and support from sister
companies. A recent contract win for the firm
is for one of the delivery Lots by SSE electricity
transmission network business, Scottish Hydro
Electric Transmission PLC (SHE Transmission)
as part of a joint venture with the Power
Transmission Division of Siemens Transmission
and Distribution Ltd. With an initial value
of up to £200 million, the framework is part
of a major system reinforcement by SHE
Transmission to accommodate onshore wind,
new offshore wind and emerging marine
generation developments, as part of Scotland’s
ambition for low carbon emissions.
The award for Lot Three includes five new
substations, which Siemens and BAM are
required to design, manufacture, construct and
commission to incorporate site access, platform
construction and foundations as well as both
AIS and GIS substations. Building on an already
successful relationship between Siemens and
BAM, the project is expected to start in late 2013
and continue through until 2018. Throughout
2013 the company is looking out for further
opportunities in the offshore wind, nuclear
power, high voltage and compressed air energy
storage (CAES).
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Consisting of a concrete caisson and steel shaft, the base is cast onshore before it is installed into position offshore using standard vessels, thus eliminating the need for heavy lift equipment
Mott MacDonaldOffshore concept specialistsWe have extensive experience in offshore facility concept identification, screening and selection. Our bespoke analysis provides efficient and transparent solutions attuned to our clients’ key development criteria.
We have successfully completed the concept selection for the Barryroe oil and gas field in the Celtic Sea and we are continuing to work with Providence Resources and their partners, Lansdowne Oil & Gas, to further define and evaluate the development. We’re delighted to be involved in the development of Ireland’s first major offshore oilfield.
[email protected] WWW.OILANDGAS.MOTTMAC.COM
EuropeanOilAndGas.indd 1 22/07/2013 15:21:48
overcome; so we have the pipeline infrastructure
in place across Ireland and connecting us to
Europe, the advent of better drilling technology,
as well as the use of 3D seismic technology that
has opened up new opportunities, changes in
the tax regime and a more robust commodity
pricing environment. All of these elements are
extremely positive for the Irish market and
are largely behind our advancing our drilling
programme.”
Building on the renewed interest, Providence
has focused on a large-scale exploration and
appraisal programme, working on opening up
as many basins as it can. “We describe ourselves
as a front end E&P company, so we are not a
development company as such, but rather we
feel that we are very good at going out there and
finding the basins, doing the initial exploration
and appraisal and bringing in the right partners
to achieve success. We currently have activities
in eight basins offshore Ireland, making us the
most diversified explorer in the region, and we
have already brought in a number of first rate
partners including ExxonMobil, ENI, Repsol and
Petronas among others.”
In carrying out this work, Providence’s general
business model has revolved around opening up
as many of these basins as it can, often carrying
out one pathfinder project or well in the basin
with the hope of finding significant resources.
“Essentially, it has been all about opening up
Ireland as a realistic oil and gas region,” Tony
commented. “We always said that we would
need one significant discovery and it would be
a game changer for us and the Irish oil and gas
industry, and that is precisely what happened in
one of our basins that we drilled last year in the
Celtic Sea, called Barryroe.”
Barryroe has proven to be a large, positive
development for Providence Resources. Situated
in circa 100 metres of water off the south coast
of Ireland, the field was the subject of successful
appraisal drilling in 2012. Previous operators
had drilled five wells on the field and in 2011
Providence, having acquired a new 3D seismic
survey on the field, successfully drilled a sixth
well announcing results that far exceeded
pre-drill expectations. After extensive post
well analysis and field development planning,
In recent years there has been an
increased international interest in the Irish
oil and gas market, which despite having
limited resources compared to other northwest
European countries, has a number of elements
such as attractive fiscal terms, new technology
and the installation of infrastructure, which
have made it an attractive area to prospective
operators. At the forefront of this growing
market is Providence Resources, a business that
is focused on the exploration and exploitation of
the hydrocarbon potential around Ireland.
The growing interest in the sector, and the
untested potential of the Irish market, has seen
Providence Resources embark on an ambitious
multi-basin, multi-year drilling programme to
test and exploit that potential. European Oil and
Gas Magazine recently spoke with Tony O’Reilly,
chief executive at the business, to find out more
about its operations.
“Since the early 1980’s, we have been focused
on oil and gas exploration, and primarily in
Ireland, which is why the business was originally
set up,” he explained. “The fundamental change
really happened in 2004 when we commissioned
a strategic review of the company, looking at our
operations in Ireland and establishing that this is
the region that we really wanted to continue to
focus on. At that time, we felt that Ireland was
still very much an unproven region, with too
few wells drilled and with only two successful
commercial developments,
despite its offshore acreage
being substantially larger than
the whole North Sea.
“Ireland had essentially been
under-drilled for some time, as
far back as the 1970s and 1980s,
with many wells encountering
hydrocarbons but not being
commercialised,” he said.
“There were a number of key
reasons for this, predominantly
based around lack of
infrastructure, lack of frontier
or deepwater technology that was needed and
an economic environment that was considered
less attractive than other regions. More recently
however, those key variables have all been
frontierAt the
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Providence Resourcesprovidenceresources.com
ServicesExploration and appraisal
drilled and taking the initiative, and that is what
we are doing. The more activity you have, the
greater the chance of success, and I think that
whilst we may have been something of a ‘lone
voice’ for the Irish sector in the past, now that
you have the arrival of players like ExxonMobil,
Cairn, Kosms, Woodside, Repsol, Petronas, etc
– clearly, the international industry is watching
developments, particularly our developments,
very closely.
“I think that there is a very real sense that
Ireland’s time is coming, and there is a ‘watch
this space’ feeling around Barryroe and Dunquin.
The latter is an uber-large exploration prospect
that we have brought ExxonMobil, Repsol and
ENI in to and I think the coming weeks and
months will be hugely interesting and could be
massive for Irish oil and gas. With all that we
have going on, we view the future with great
confidence. We are validating the prospectivity
of the Irish offshore and as an Irish company, I’m
proud that Providence is leading the way in that
respect,” he concludes.
analysis, Providence has launched a farm out
campaign to bring in a partner to take the field to
first oil - and it has received significant amounts
of international interest owing to the size of
Barryroe, its location and its relative attractiveness
from a fiscal and operating perspective.
However, Barryroe is just one of the many
developments that Providence Resources is
currently undertaking, as Tony was keen to
highlight: “We are involved in a $500 million
programme of six basins with our partners – so
in addition to Barryroe, we are presently drilling a
massive exploration well off the west coast called
Dunquin (drilling operations commenced in
April 2013), and then through next year we have
another four basins that we will be drilling off the
west of Ireland and in St. Georges Channel.
“It is still early days, but it is a very exciting
time for us and I am pleased that Providence is
really taking a leading role in the Irish offshore.
I think the great thing is that we are drilling –
it’s all very well talking about the potential of
the market, but it is all about getting the wells
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The port of Karmsund has always
played a vital role for large parts of the industry
in southwestern Norway. It offers customers
access to a wide range of facilities, and so
whether they want to establish a business, rent
space, place a boat in storage or use one of
Karmsund’s harbour sections, the organisation
will work hard to meet their needs.
Furthermore, the diverse maritime industry
around Karmsund is a great advantage for the
port and supports its complete service offering.
The fishing industry and shipyards with large dry
docks gives the region a unique maritime diversity.
The Karmsund port area is the third largest
in Norway, measured in cargo cover over the
many waterfront segments. It is an efficient and
modern business that holds service and quality
as keys to its success, and can demonstrate
solid economic foundations. The port also has
a distinctly green profile to its operations, and
focuses on the environment and climate change
as an integral part of daily routines.
Operations at Karmsund are split into three
main areas – a subsea base; cruise line and
containers/traffic.
Subsea & offshore baseOne division of Karmsund Port is the Killingøy
Subsea & Offshore Base, which meets the
regulations on protection of ports and port
facilities against terrorist acts and so forth, as
well as being approved by the NCA.
Located at Killingøy, Statoil operates a major
facility for its PRS (Pipeline Repair System),
and as recently as June 2013, it took the keys
to a new 1070 square metre hall on the base,
which is on long-term lease from Karmsund,
and features modern technology, including a
25-ton crane.
In addition to Statoil’s PRS facility, Killingøy
is home to many of the region's prime subsea
players, including: Technip Norway, Deep
Ocean, Olufsen Ship Repair, Reach Subsea and
Mera. In addition, Karmsund Port Authority's
administration is also located at Killingøy.
Representing a significant development for
Karmsund, Technip signed an agreement for
long-term rental of an industrial hall in Killingøy
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proFilE KarmSund
region
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ServicesPort services
cruise fleet, and is due to make more calls into
Haugesund during the summer of 2013.
Traffic portMoving onto the traffic port, this location
benefits from new road connections from
Rogaland to E39, and means it is very
strategically located in relation to the business
community in the region, as well as Stavanger
and Bergen.
In the harbour there are large areas of
development available, plus the main quay was
extended in summer 2012 to 270 metres, and
as well as a modern RORO ramp, Karmsund
provides a state-of-the-art quay, all designed to
benefit end users.
Going forward, Karmsund will maintain
its focus on consolidating its position, as well
as making further improvements in order to
meet the demands of the future, by facilitating
the development of modern technology
infrastructure in the port district. It also has
ambitions to be a part of the development of the
area in terms of industry and tourism; as well
as to be the natural choice for ships, with easy
access and good service. It looks clear that with
this firm strategy in place, Karmsund will remain
a port of great importance to both its local area
and to the whole of Norway.
just days before Statoil took on its new facility.
According to the agreement, the hall will be
completed in the first semester of 2014, and
in addition, Technip in Norway has need for a
storage area outside the base.
“Initially, Technip will use the hall for storage
and maintenance of modular hyperbaric rescue
equipment, a module handling system for subsea
equipment, adding accessories for cables and
smaller vessels for air diving when not in use,”
said managing director of Technip in Norway,
Odd Strømsnes.
Karmsund port director Sigurd Eikje was very
pleased to sign the long-term lease agreement
with Technip, as the contract helps to emphasise
the strength and importance of the subsea
environment at Killingøy. The Karmsund Port
Authority has been working for several years
to establish the agreement and will start work
immediately on the design of an industrial hall
with office facilities for rent to Technip.
“There is no other agreement Karmsund Port
Authority has worked on for as long as this,”
said Sigurd Eikje at the signing. “Therefore it
feels especially good when you finally reach the
goal.” The agreement was signed at the same
time as City Council in Haugesund adopted new
zoning for Killingøy/Rekavik. “This creation
shows that regulatory change was appropriate
and important for the subsea environment in the
region,” added Sigurd.
Cruise portIt was three years ago in 2010 when Karmsund
Port Authority, together with destination
management, took the strategic decision to
launch a serious and sustained effort to attract
cruise tourism.
Much effort and resources have been invested
into the cruise facilities with Karmsund Port
Authority investing about eight million itself to
create the best possible conditions for ship, crew
and passengers. Special attention was paid to
the jetty and mooring arrangement and bollards
are now 150 tons. With a quay of 297 metres,
the region can accommodate ships of all sizes. It
also established a park - Harbour Park - which
will ensure that both cruise passengers and
the region’s own citizens have a very enjoyable
experience after a visit to the quay.
As a result of all this hard work, the first
cruise ship arrived in May 2013 – Fred Olsen’s
‘Balmoral’. With room for 1350 passengers and a
crew of 510 Balmoral is the largest in the Olsen
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With a quay of 297 metres, the region can accommodate ships of all sizes. It also established a park - Harbour Park - which will ensure that both cruise passengers and the region’s own citizens have a very enjoyable experience after a visit to the quay
foot manufacturing facility in Sunderland and is
a natural extension due to us taking on a wide
variety of projects in the last 12-18 months.
Its opening followed two contract wins, one of
which was for a 60,000-litre large bulk storage
tank and the other was for a number of 40-foot
ISO containers for LNG. The 40-foot tank is a
product we have wanted to add to our portfolio
for a while and it is being well received by our
customers,” says managing director Paul Rowe.
Believing LNG and helium tanks will be
key areas of growth for the firm, Wessington
Cryogenics’ new addition has been designed as
a standard 40-foot ISO frame with Blair corner
castings and a lockable valve protecting cabinet,
which contains valves, gauges, vacuum check
gauge connection and a separate document
holder. The ISO VAC 40 LNG offers maximum
versatility, allowing it to be configured to accept
cryogenic transfer pumps as well as various pipe
work and valve options for the end user and
operator. Furthermore, the tank can be produced
with working pressures that range from 100psi
to ten Bar, can be used for the safe storage and
It has been a productive and successful
12 months for family company Wessington
Cryogenics since it was last in European Oil and
Gas Magazine in July 2012. The 29-year-old
manufacturer of cryogenic vessels has enhanced
its service offering by adding a range of cutting-
edge products to its expansive portfolio, as
Darren Nutter, business development manager
of Wessington Cryogenics highlights: “We are
developing two new product lines; acid tanks
and a new range of chemical tanks for the
offshore industry. These products complement
our current portfolio, owing to these similarities
we are able to cultivate and exploit our core
competencies and capabilities. Working
alongside our customers, combined with our
strong values in safety, quality and development,
we are bringing new and innovative products to
the market.”
Both the acid tanks and chemical tanks are
out in the field and have been well received on
the market. The Acid Pack 2000, a fully lined
IMDG T14 acid transport and storage tank, is
designed to DNV 2.7-1 standards and is fully
certified for offshore use.
Always looking for opportunities to enhance
its portfolio in new market areas, Wessington
Cryogenics, which has an annual revenue of
approximately £9 million and a customer base
that includes major companies such as NASA
and Halliburton, has seen steady demand
during the economic crisis, which has resulted
in the company expanding into a new 15,000
square foot factory. “The new factory, based in
Castletown, is separate to our 70,000 square
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Wessington Cryogenics wessingtoncryogenics.co.uk
ProductsCryogenic vessels
Aware that constant product evolution also
requires consistent training and development of
staff, Wessington Cryogenics has a strong focus
on enhancing the skills of all personnel through
in-house training, as Paul explains: “Cryogenics
is a diverse, but insular and small community,
which is why we take on people from related
industries and train them into fully qualified and
highly skilled staff.” On top of this, the company
offers cryogenic training courses to third parties,
in association with Gas Safe Consultants, in
response to market requirements for specialised
safety training in the safe use, handling, storage
and transport of industrial, cryogenic, laboratory,
medical and special gases.
Following a year of record turnover in 2012,
Wessington Cryogenics is keen to see this trend
continue into the future, as Paul concludes: “We
want to expand and explore new markets, be as
dynamic as possible and continue to develop our
products. With our superb reputation and ability
to go where the markets tell us to go, I don’t see
why we can’t keep on growing.”
transport of LNG and has approvals for road, rail
and sea transportation.
Keen to diversify its product offering through
continued research, design and development of
new products, Wessington Cryogenics continues
to look out for new market areas, which Paul
believes is the reason the company wins major
contracts: “We are big enough to have a strong
portfolio and small enough to be adaptable
and say yes to new projects, so our flexibility
is respected in the industry. Even while we are
working on big standard projects we aim to
continue innovating and enhancing our product
range, whether that is an extra valve or new
feature on a custom made item that we then
realise is useful for other clients. That feature
will then be put into the whole range. We have
certain product ranges where every single one
will be completely bespoke, this is particularly
true for the laboratory side of our company,
where we get the most basic concept outline
and we then slowly design a product from the
ground up.”
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We are big enough to have a strong portfolio and small enough to be adaptable and say yes to new projects, so our flexibility is respected in the industry
f r o m e x p l o r a t i o n t o e n d u s e r
Schofield Publishing Ltd10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU
T: +44 (0) 1603 274130 F: +44 (0) 1603 274131
editor Matt High [email protected]
sales manager Rob Wagner r [email protected]
europeanoi landgas.co.uk
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