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Reinventing Excellence Second generation business leader, Mr Radwan Azam, talks to Total World Energy about his plans for expanding ZAHARA Group further, with a view to becoming the undisputed market leader and the largest producer of petroleum products and derivatives in the Middle East. TOTAL CLOV Overcoming challenges in the ‘Golden Block’ KANFA Aragon Topside solutions for the FLNG market Storengy UK Developing the Stublach project Red Wing Shoe Company Producing quality safety gear for the past century JANUARY 2015 more than business www.totalworldenergy.com

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Reinventing Excellence Second generation business leader, Mr Radwan Azam, talks to Total World Energy about his plans for expanding ZAHARA Group further, with a view to becoming the undisputed market leader and the largest producer of petroleum products and derivatives in the Middle East.

TOTAL CLOV Overcoming challenges in the ‘Golden Block’

KANFA Aragon Topside solutions for the FLNG market

Storengy UK Developing the Stublach project

Red Wing Shoe Company Producing quality safety gear for the past century

JANUARY 2015

more than business www.totalworldenergy.com

www.deregtcables.com ANYWHERE. ANYTIME. EVERYTIME.

View the complete marine product range on www.sercel.com

Krimpen aan de Lek, The Netherlands [email protected] & [email protected]

Cable Technology Partner SM

Technology Comes To Life

ULTRA-DEEP WATER APPLICATIONSDe Regt Marine Cables is a worldplayer in the design

and manufacture of customer engineered dynamic cable systems for subsea applications. One of its

latest developments are the Rigid Flexible Rods, to replace the steel wires strength member for

the purpose of moving into deeper water

// BENEFITS OF THE RIFLER LIGHTWEIGHTSTRENGTH MEMBER

• Self-supporting over a deployable length of over 7km

• Weight reduction of over 75% in water

• Safe working: allowed in an explosive atmosphere

• Usage of non-corrosive materials

• Terminable with conventional methods

De Regt.indd 1 04/02/2014 10:53

EDITOR Joe ForshawSUB-EDITOR Harriet PattisonWRITERSRosie DeWinterColin ChineryTim HandsRoland Douglas Christian JordanAjuanne Payne STUDIO DIRECTOR Martyn OakleyDESIGNER Harvey Tarlton

RESEARCH DIRECTORChris BolderstoneMAGAZINE MANAGER Rick LiddimentPROJECT MANAGERS Ben RichellKieran ShukriJodie RettieSALES DIRECTOR Andy WilliamsSALES MANAGER Daniel MarshallSALES EXECUTIVE Mark Leonard

ACCOUNTSMike Molloy Jane ReederMANAGING DIRECTOR David HodgsonOPERATIONS DIRECTOR Chris BolderstoneFINANCE DIRECTOR Scott Warman

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If you would like more information about ways in which Total World Energy can promote your business please call +44 1603 411568 or email | [email protected]

East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher.

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A note from the Managing Director…

As the saying goes: “With every door that closes another one opens”, but before we talk about the new, I would like to praise and thank the old. Our Editor of three years, Joe Forshaw, will be leaving the ECP family and heading onto new and exciting challenges. All of us here at ECP would like to thank Joe for all of his excellent work, well written articles and above all else, his passion to bring the latest in business excellence to our readers. I personally would like to thank Joe for his tenure and for being an instrumental part of the growth and development of ECP Ltd and our various business titles. It goes without saying that without Joe leading our editorial team, ECP would not be in the position we are today and for that I thank him whole heartedly. From all of us here, we wish Joe all the very best for the future, you will be missed.

Now onto the new and 2015. I would like to congratulate Harriet Pattison and welcome her to her new role as Editor. Over the last year Harriet has proved herself to be at the top of her game and has helped drive ECP forward in her short time with us. Producing cutting edge articles for some of the world’s leading brands and for giving ECP a different twist and style of writing that has pleased and impressed not only us here but also our valid subscribers and of course, the companies that we have promoted. 2015 is set to be a great year for us here at ECP and I for one am very excited about seeing how far we can progress with Harriet at the helm. Just like our readers, we are all looking forward to seeing what 2015 brings to the energy sector and if 2014 was anything to go by, we will be in for one hell of a year.

David Hodgson

PAGE 3

Joe [email protected]

PAGE 4 MAR 14

EDITOR’S PAGEOut with the old, in with the new

3

NEWS All that’s happening in the energy industry

6

ENTREPRENEUR Chris Beckett, Entrepreneur of the Year

14

INNOVATION Using the sun’s rays in a new way

16

ZAHARA GROUP Reinventing excellence

18

MAGDALENA Latin American power player

24

CLOVAnother jewel in the Block 17 crown

30

ADMA-OPCO First oil from Umm Lulu

40

STORENGY UK Introducing the Stublach project

46

GULF DRILLING New products to bolster performance

52

BILFINGER INDUSTRIER Revolutionising the ISP market

58

BAPCO Modernisation for 2015

64

COMSIP AL A ‘ALI Confidence, certainty, experience

66

ELIA Powering Belgium

70

KANFA GROUP Driving the development of the FPSO

76

UNIQUE WELLUBE Uniquely placed

82

TSK Taking advantage of the Spanish sun

86

FELGUERA IHI Growing into new markets

90

GULF PETROCHEM Ongoing growth for this $2 billion company

94

REDWING SHOE COMPANY Bringing the gold standard

98

FUTURE POWER Honda’s FCV; an example of what is possible

104

Contents

CONTENTS

PAGE 5

3026

46

82 76 98

PAGE 6

#twenewsLamprell: Delivery of fifth drilling unit to national drilling company Lamprell has announced the

completion of construction on

a further jackup drilling rig, the

“Shuwehat”, and its delivery to Abu

Dhabi’s National Drilling Company

(“NDC”), safely, within budget and as

scheduled.

This follows the recent

announcement on 12 November

when the Group received a new

contract award from NDC for the

construction of two further jackup

drilling rigs of a similar design and

high specification, which is valued at

approximately US$ 365 million.

The contract for the “Shuwehat”

rig was signed in April 2012 and

this is the fifth in a series of eight

rigs with the LeTourneau Super

116E (Enhanced) Class design

which are being built and delivered

by Lamprell to NDC. This latest rig

has been delivered to the client

following the completion of the third

and fourth rigs, the “Qarnin” and the

“Marawwah” respectively, earlier this

year. Lamprell has achieved another

Company record with the delivery of

three drilling units to one client in a

single year.

The “Shuwehat” rig is the 11th

Super 116E jackup drilling unit that

the Group has delivered to various

clients during the last six years. The

jackup rig was officially named, and

completion marked, at a ceremony

held at Lamprell’s Hamriyah

facility in the United Arab Emirates

earlier today, prior to departure for

operations at its drilling location in

Abu Dhabi.

NDC Chief Executive Officer

Mr. Abdalla Saeed Al Suwaidi

commented: “Today, we proudly

witness the completion of rig

Shuwehat, a true technological

marvel. This rig represents a great

addition to the NDC fleet of modern

rigs, and it will help the company

maintain the highest levels of

reliability and efficiency. A few years

back, we partnered with Lamprell to

start building offshore jack up rigs in

the UAE. We are proud that we made

such a strategic decision, and the

four previous rigs, namely Makasib,

Muhaiyimat, Qarnin, and Marawwah

are working safely and drilling for

ADMA-OPCO.

“While we aspire to achieve our

future objectives, and as we celebrate

our current achievements, I’d like to

extend sincere appreciation to ADNOC

higher management and the NDC

board of directors for their guidance

and continuous support.”

Commenting on the delivery,

Jim Moffat, Chief Executive Officer,

Lamprell, said: “Lamprell’s project

execution this year continues to be

of the highest standards and I am

pleased to announce the delivery

of this fifth jackup rig to NDC, our

long-standing client. We have been

able to prove once again our ability to

complete a major project to world-

class standards of safety and quality,

and we are proud to construct this

latest project in the UAE, for use in the

UAE, where we have such strong ties.

The “Shuwehat” rig is the third rig

handed over to NDC in 2014 and

we are scheduled to deliver the next

NDC rig to the client within a matter

of months. We believe that the recent

contract award of two rigs with

three options by NDC demonstrates

our client’s continuing confidence

in our ability to maintain our strong

project execution track record on a

consistent basis and we look forward

to working closely with NDC in the

coming years.”

Wärtsilä receives full notice to proceed for its first LNG terminal Wärtsilä has been given full

notice to proceed (NTP) from

Manga LNG Oy for the supply

of a liquefied natural gas (LNG)

import terminal in Tornio, Northern

Finland. Wärtsilä will commence

construction on the site near the

port of Tornio in January 2015.

Manga LNG Oy is a joint venture

of Outokumpu Group, Svenskt Stål

AB (SSAB), Skangass and EPV

Energy Ltd.

Wärtsilä initially announced

this project in January 2014. The

order, valued at approximately

EUR 100 million, will be included

in Wärtsilä’s order intake in

December 2014.

The turnkey delivery of the

first import terminal supplied

by Wärtsilä includes complete

unloading, storing and

regasification equipment for LNG.

The capacity of the LNG storage

tank will be 50 000 cubic metres.

A 10-year maintenance agreement

was also signed between the

parties. The first maintenance

agreement for an LNG terminal

complements Wärtsilä’s service

proposition and experience within

dual fuel and gas engines and

related equipment.

One of the main users of the

imported natural gas will be the

Outokumpu Tornio steel mill. A gas

pipeline will be built to the nearby

Röyttä industrial site, where the

mill is located. Additional potential

gas users are mines, factories

and other industrial customers

in Northern Finland and Sweden.

Railroad and truck transportation

from the terminal will be available.

The terminal can also be used

for LNG bunkering as well as

to supply fuel for LNG-powered

ships.

“The world is switching to

natural gas, and we make it

available in new places. With

our unique turnkey offering, we

are ready take a leading role in

end-to-end LNG systems,” says

Tore Björkman, Vice President,

LNG and Nuclear, Wärtsilä Power

Plants.

Wärtsilä, recognised for its

market-leading gas engine

technology, provides technology

and services throughout the entire

LNG distribution chain. Wärtsilä’s

portfolio includes liquefying

technology, various gas-handling

solutions, the design of LNG

transport vessels, gas-fired marine

propulsion solutions, LNG loading

and unloading facilities, storage

facilities and regasification. A gas-

fired power plant can be combined

with an import terminal in a joint

turnkey project.

LNG is replacing oil and other

fuels worldwide. The environmental

benefits are significant. In power

generation, natural gas produces

about 30 percent fewer carbon

emissions than oil, while sulphur

dioxide emissions are reduced

by some 99 percent. LNG-fuelled

ships have no sulphur emissions

and 92 percent fewer nitrogen

oxide emissions than vessels

powered by heavy fuel oil.

NEWS

PAGE 7

Cargotec’s MacGregor secures large subsea crane order from ZPMCMacGregor, par t o f Cargotec,

has rece ived a la rge order

f rom Shangha i Zhenhua Heavy

Indust ry Co Ltd (ZPMC).

The cont ract is for four

o f fshore cranes, inc lud ing a

400-tonne SWL act ive heave-

compensated crane capable o f

dep loy ing 3,000m of w i re rope.

A l l four cranes wi l l be

f i t ted to a new 145m d ive

suppor t vesse l (DSV) under

const ruct ion at the yard for

UK-based operator Sea l ion

Sh ipp ing. De l i very o f the

cranes to the Ch inese sh ipyard

is schedu led dur ing th i rd

quar ter o f 2016.

Sea l ion is an o ffshore

suppor t company that

manages and operates o ffshore

suppor t vesse ls for To isa. The

DP3 vesse l i s equ ipped for

wor ldwide operat ions in the o i l

and gas sector and on u l t ra-

deepwater pro jects . De l i very is

p lanned for ear ly 2017.

PAGE 8

#twenews

RWE Dea increases production volumes and plans further exploration in Egypt RWE Dea doubled its oil and gas

production in Egypt. North Africa

is a strategic core region for Dea.

The company is one of the leading

foreign investors in Egypt and

produces oil and gas in the country

for 30 years by now.

“North Africa is one of our

strategic core regions,” explained

Maximilian Fellner, General Manager

of RWE Dea Egypt. “In Egypt, Dea

can look back upon three decades

of oil production and we recently

doubled our overall production in the

country through getting our onshore

gas project Disouq on stream. We

are delighted about these success

stories and will continue on this

track, as we see further potential in

the region,” Fellner added.

Since 1984, Dea has produced

over 640 million barrels of crude as

operator in the Gulf of Suez. With

ongoing investments in modern

technology and infrastructure Dea

maintained high production levels

from the three oil fields over the

years.

Dea has plans for additional

exploration in the Gulf of Suez.

At the East Ras Budran Offshore

concession, the company plans

to acquire seismic and drill an

exploration well. The work program

for the recently awarded two

offshore concessions (the award

is subject to approval by the

Egyptian authorities) will include

seismic reprocessing and two

exploration wells at the East Ras

Fanar Offshore and one well at the

Northwest El Amal concessions.

An important growth project for

RWE Dea in Egypt is the Disouq

onshore gas development in the

Nile Delta. Dea achieved first

gas last year and added the own

built Central Treatment Plant to

production this summer. For 2015,

the company expects further

production increases from Disouq

up to the capacity of approximately

200 million standard cubic feet of

gas per day.

PAGE 9

NEWS

PAGE 9

Eni has finalised with Petrogal,

a wholly owned subsidiary of the

Portuguese company Galp Energia

operating in the upstream oil &

gas, the farm in agreement for

the acquisition of a 70% stake

and operatorship of the Gamba,

Santola and Lavagante permits.

The agreement will guarantee the

exploration rights for an unexplored

area of 9,100 square kilometers in

offshore Portugal.

The exploration permits were

awarded to Petrogal in 2007 by the

Portuguese State.

The agreement is part of Eni’s

strategy aimed at diversifying and

expanding its exploration portfolio.

Eni enters the upstream of Portugal

PAGE 10

#twenewsRussian-Chinese Energy Partnership gaining momentumLast month, the Gazprom

headquarters hosted a working

meeting between Alexey Miller,

Chairman of the Company’s

Management Committee and

Li Hui, Chinese Ambassador to

Russia.

The parties addressed the

issues of further bilateral

cooperation. The progress with

the project for supplying Russian

pipeline gas to China via the

eastern route was positively

evaluated. It was pointed out

that the project was carried on

according to the deadline.

The meeting also mentioned

the formulation of the Purchase

and Sale Agreement for Russian

gas supply via the western route.

The meeting participants

stressed that the departing year

was seminal for the Russian-

Chinese relations in the energy

sector and expressed their

confidence that the partnership

would keep on gaining

momentum.

On May 21, 2014 Gazprom

and CNPC signed the largest

Purchase and Sale Agreement

in the history stipulating

Russian pipeline gas supply

via the eastern route. The 30-

year contract provides for gas

supplies to China in the amount

of 38 bil l ion cubic meters of gas

per year.

The eastern route stipulates

the delivery of Russian natural

gas from the Irkutsk and Yakutia

gas production centres to China

via the Power of Siberia gas

trunkline.

On November 9, 2014 Gazprom

and CNPC signed a Framework

Agreement for Russian natural

gas supply to China via the

western route.

The western route stipulates

annual gas supply in the amount

of 30 bil l ion cubic meters from

Western Siberia to China via the

Altai gas pipeline during 30 years.

BP Announces First Oil from Kinnoull Field in Central North SeaBP, on behalf of the Kinnoull field

co-venturers, recently announced the

start of production from the Kinnoull

field in the central North Sea. Kinnoull

was BP’s seventh and final major

upstream project start-up in 2014.

The Kinnoull reservoir, developed

as part of a wider rejuvenation of the

Andrew field area, is tied back to

BP’s Andrew platform, 230 kilometres

east of Aberdeen, and is expected

to enable production there to be

extended by a further decade.

In order to access the reservoir,

a new subsea system has been

installed, together with a 700 tonne

topside processing module on the

Andrew platform. Production is now

carried from the Kinnoull field to the

Andrew platform via a 28 kilometre

subsea pipeline bundle – the longest

such system in the world – for

processing and onward export via the

Forties pipeline system (oil) and the

CATS pipeline system (gas).

The investment included extensive

refurbishment of the Andrew platform

to improve its integrity and operational

efficiency.

Trevor Garlick, Regional President

for BP’s North Sea business said:

“50 years after BP was awarded

its first licences in the North Sea,

the successful start-up of Kinnoull

demonstrates our continued

commitment to maximising recovery

from the basin.

“The combination of brownfield

and greenfield development work

– carrying out material upgrades,

improving the reliability of existing

facilities and retrofitting new facilities

onto an existing platform – added

significantly to the complexity of this

project. In successfully delivering it,

we have completed one of the most

challenging offshore projects BP has

undertaken in the North Sea.

“As we now look to continue our

investments and meet the challenges

of a toughening market environment,

we also need to continue to improve

the efficiency and competitiveness of

our North Sea business.”

Production from Andrew and

Kinnoull is forecast to peak at over

50,000 barrels of oil equivalent

per day, and is expected to make

a significant contribution to BP’s

commitment to grow its operating

cash flow.

Lamar McKay, BP’s Upstream

Chief Executive commented: “The

Kinnoull project is significant to both

our North Sea business and BP

more widely and is a clear example

of our strategy in action. Advances

in our understanding of the reservoir

structure, deployment of the very

latest in UK subsea engineering skills

and a major project to upgrade and

safely re-start the Andrew platform

were key factors in this successful

development.”

Around 90% of the project’s

investment occurred in the UK

and at its peak the project created

employment for over 1,000 people in

the UK.

UK Energy Minister Matthew

Hancock said: “The Kinnoull

project is a great example of the

continued commitment shown by

the government and the offshore

industry to make the most of the

North Sea’s remaining resources.

Working together we are maximising

the potential of our domestic oil and

gas reserves, securing both jobs and

energy supplies.”

BP operates and has a 77.06%

interest in Kinnoull, alongside co-

venturer JX Nippon Exploration and

Production (U.K.) Limited (22.94%).

Andrew is operated by BP, with a

62.75% interest, with co-venturers

JX Nippon (27.39%) and Talisman-

Sinopec (9.86%).

NEWS

PAGE 11

© BP plc

PAGE 12

#twenews

© sergeevspb - Shutterstock

BP and SOCAR Sign an Agreement to Explore Shallow Water Absheron PeninsulaBP and SOCAR (the State Oil

Company of the Republic of

Azerbaijan) recently signed a new

production sharing agreement

(PSA) to jointly explore for and

develop potential prospects in

the shallow water area around

the Absheron Peninsula in the

Azerbaijan sector of the Caspian

Sea.

This new agreement is part of the

government’s plan to ensure that all

of Azerbaijan’s offshore areas are

fully explored.

The PSA was signed by Rovnag

Abdullayev, President of SOCAR,

on behalf of the government of the

Republic of Azerbaijan, and Gordon

Birrell, BP’s Regional President for

Azerbaijan, Georgia and Turkey.

Mr Abdullayev said: “The signing

of this new PSA, which clearly

deepens our partnership with BP,

is an important milestone for all

parties involved – the government,

SOCAR and BP. It marks the

beginning of a new phase in our

cooperation. This phase will enable

us to work together to ensure the

long term future for Azerbaijan’s

oil and gas production through

exploring new opportunities.

We look forward to this new

opportunity that has a potential

to contribute to maintaining oil

production in Azerbaijan for many

decades.”

Mr Birrell said: “BP is proud

to embark on this new era of

exploration in the Caspian together

with SOCAR. This opens a new

stage in our partnership. This

new partnership is based on BP’s

extensive experience in responsibly

exploring and developing in shallow

water areas around the world and

our expertise in using the best

technology available in the industry.

So we thank the government and

SOCAR for another opportunity

to deploy our expertise and

technology, this time in the shallow

water.”

The PSA contract area stretches

along the margins of the Caspian

basin to the south of the Absheron

Peninsula. The acreage features

water depths of up to 40 meters

with potential reservoir depths of

3000-5000 meters.

NEWS

PAGE 13

Keppel Shipyard Limited (Keppel

Shipyard), a subsidiary of Keppel

Offshore & Marine Ltd (Keppel

O&M), has signed a contract

with Golar LNG Limited for the

conversion of an existing LNG

carrier into a floating Liquefied

Natural Gas (LNG) storage and re-

gasification unit (FSRU).

The total contract value is

approximately Singapore $90

million.

When the conversion is

completed in the second quarter

of 2007, it will be the first of its

type in the world. The conversion

will be made based on relevant

DNV class rules and international

standards.

Golar LNG will work in

partnership with Keppel Shipyard

in the engineering, procurement

and construction for the project.

The scope of work includes

installation of a new forward turret,

side-by-side mooring system, LNG

loading arms, aft thruster with

compartment and a re-gasification

plant, and replacement of

cargo pumps. There is also the

upgrading of the existing steam

power electrical and marine

systems.

Mr Graeme McDonald, Group

Technical Director of Golar LNG

Limited said, “Golar LNG has been

developing this ‘Floating Energy

Solution’ as part of our strategy

to diversify into other parts of

the LNG value chain and to offer

customers greater flexibility. It is

our belief that no other system

can compete with this concept

in terms of timing or pricing by

satisfying early or extra demand

for gas.

“We have selected Keppel

Shipyard as our partner due mainly

to the company’s impressive

track record and proven expertise

with Moss Rosenberg type LNG

vessels.”

Mr Nelson Yeo, Executive

Director of Keppel Shipyard, said,

“Being entrusted to undertake

the world’s first FSRU conversion

certainly strengthens our market

leadership in offshore and marine

conversions, especially in the

areas of LNG vessels. We are

committed to deliver the facility on

time, on budget.”

Keppel Shipyard has a strong

track record of repairing 71

vessels of Moss Rosenberg-type

LNG vessel. The largest LNG

repair yard outside Japan, Keppel

has also completed 54 FPSO/ FSO

conversion projects to date.

The proposed LNG terminal

is a steel mono hull with Moss®

LNG tanks arranged in the

middle, with the re-gasification

plant in the forward section and

crew facil it ies with control room

and util ity machinery in the aft

section.

The LNG offloading tankers

wil l be moored in a side-by-side

configuration with the FSRU for

efficient replenishment of the

terminal.

The FSRU will be stationed

offshore and, through a subsea

pipeline, will be capable of a

throughput of 2.75 BSCM per

annum at variable gas send out

pressures up to 85 bar.

Moss Maritime A.S has

prepared the conceptual basis for

the FSRU and will carry out the

design and engineering for the

conversion.

Golar LNG is the largest

independent LNG ship owner,

and currently owns a fleet of 11

vessels, with two more on order.

Golar operates vessels worldwide

in well-established relationships

with British Gas, Pertamina,

Chinese Petroleum Corporation,

Petronas, Sonatrach and Shell.

A member of Keppel

Corporation Limited, Keppel O&M

is a global leader in offshore

rigs and ship conversion and

repair as well as a specialised

shipbuilder. Combining the

expertise and experience of its

subsidiaries, Keppel FELS, Keppel

Shipyard and Keppel Singmarine,

the group’s near market, near

customer strategy is bolstered by

a global network of 17 yards in

the Asia Pacific, Gulf of Mexico,

Brazil, the Caspian Sea, Middle

East and the North Sea regions.

Integrating the experience and

expertise of its yards worldwide,

Keppel O&M aims to be a

provider of choice and a partner

in solutions for the offshore and

marine industry

Keppel Shipyard to undertake world’s first LNG floating storage and re-gasification conversion

Pacific Drilling CEO, Chris Beckett

has been enjoying a long and

successful career in the Oil & Gas

sector which started when he was

in his early twenties working as a

seismologist. Twenty years on and

he has been involved in the first-ever

commercialization process for deep-

sea dual gradient drilling.

Working for Seismograph Service

Ltd, which was later acquired by

Schlumberger Limited in the 1990’s,

Beckett spent the best part of 12

years refining and improving on his

international management skills.

As part of a unique project called

Transition 2000, he headed the

acquisition of the largest onshore

seismic survey that has ever been

completed in the USA.

Leaving Schlumberger in 2001,

Beckett completed a Master of

Business Administration (MBA) at Rice

University, Texas, leading him to work

for the international firm, McKinsey &

Company as a strategy consultant,

providing advice to both global energy

companies and governments.

“I had a great opportunity at

McKinsey to study the way in which

one of the major oil companies in

the U.S. was using its refining assets

and look for ways to help them

maximize their returns from changes in

regulations,” Beckett explained in an

interview with The Maritime Executive

in 2012.

However it was his move to

Transocean, the major offshore

drilling company, which became the

cornerstone of Beckett’s illustrious

career. Whilst working as the Director

of Business Development and

Corporate Planning, Transocean

entered into an agreement with an

investment group which was to

become Pacific Drilling. With this

transaction, Pacific Drilling approached

Beckett to become its first employee.

Beckett accepted but of course,

leaving behind a truly promising career

with Transocean for a company which

had no industry experience or client

base was an enormous risk. Beckett

however, revelled in an opportunity

to build an industry-leading contract

drilling company that would continue

to meet the evolving and specific

needs of customers, something he felt

the current market was missing.

In an interview with the Oil Council,

he explained: “One of the underlying

premises of forming Pacific Drilling was

to build a company that not only would

have the newest generation of assets

that met the new regulatory criteria

but also would have state-of-the-art

operating capabilities.”

A company with no customers, of course, is perhaps one of the biggest challenges that Pacific Drilling faced when it first started up. Beckett was intent on achieving a blue-chip customer base and so, with the dedicated persistence between him and his management team, they began to educate potential customers on the technological advantages of their drill ships and the services they could provide.

PAGE 14

A dedication to excellenceThis month, Total World Energy focuses the entrepreneurial limelight on Pacific Drilling CEO, Chris Beckett, who has over two decades of experience working within the Oil and Gas industry. “He’s grown a world-class team based on that entrepreneurial spirit, and he encourages his employees to make an impact by identifying novel approaches and seeing those ideas through to implementation,” testifies Mike Kacsmar, EY Entrepreneur of the Year Americas Program Director.

Editorial: Harriet Pattison

It wasn’t long before Pacific

Drilling secured its first contract with

Multinational energy corporation,

Chevron. Today, Pacific Drilling

includes Petrobras and Total amongst

its customers.

Speaking to the Oil Council,

Beckett explained safety was integral

to the successful development of

Pacific Drilling and securing the

reputable industry leaders it works

with today: “[Safety] is our most

important accomplishment, and one

that we continue to prioritize every

day. Our first rig, Pacific Bora, has

worked over 1,000 days without a

lost time incident. This is industry

leading safety performance, and to

me, it’s the most important metric

of our success as a company. It has

been achieved through developing

our own, proprietary operating and

safety management systems from

scratch, which are designed to be

state of the art and optimized for

ultra-deepwater operations.”

Held last month in Palm Springs,

California, the EY Entrepreneur of the

Year is the world’s most prestigious

business award for influential

entrepreneurs. The potential and

contribution people make and how

they inspire others through their

vision, achievements and leadership

is recognised through this program.

Currently the first and only awards

platform operating on a global scale

in more than 145 cities across 60

countries, the EY helps to celebrate

and commemorate the entrepreneurs

who are not only building but leading

the way in establishing successful

and dynamic businesses.

In a statement The EY said:

“Merely eight years since formulating

a business plan for Pacific Drilling in

his living room — and less than four

years since Pacific Drilling recorded

revenue from its first paying client

— Beckett now oversees a global

company with the industry’s most

modern fleet of high-specification

drillships, more than 1,200 employees

and annual revenues rapidly

approaching $1 billion.”

Headquartered in Luxembourg

with a small team of employees, the

core operations are overseen at the

company’s office in Houston, Texas,

where Beckett spends the majority of

his time, having moved to Houston

more than two decades ago.

Pacific Drilling currently has five

operational drillships which is three

more than it had in 2011, with a

further two scheduled to enter into

service by the end of the year.

Looking to the future, Chris Beckett

is adamant that Pacific Drilling will

remain competitive, maintaining its

enviable position as the only pure play

ultra-deepwater drillship company

in the industry. With its high quality

assets, high-specification drillships

and focused operating systems,

Pacific Drilling is able to provide a

better quality of service.

And with Chris Beckett firmly at the

wheel, his unwavering dedication to

excellence is no doubt why he is EY’s

Entrepreneur of the year

© Airbus S.A.S. 2011

PAGE 15

ENTREPRENEUR

So far this year at Total World Energy

we have not been short of opportunities

to profile exciting ‘firsts’ in the solar

industry. In November we looked at The

Lightning SuperBike – the world’s first

electric motorcycle powered completely

by solar energy. Debuted at the Pikes

Peak International Hill Climb in June

2013, the SuperBike exceeded all

expectations and went on to win, beating

gas and electric powered competitors

alike by an impressive 21 seconds. In

August we profiled Solar Impulse – the

first solar aircraft to fly through the night

and around the globe. In October we

reviewed the world-record setting MS

Tûranor PlanetSolar, an entirely solar

powered ship and the largest of its kind.

In this issue we touch upon the

increasingly talked-about subject of

sustainable infrastructure. How can we

innovate in our towns and cities to create

environmentally friendly infrastructure

for the future? Can it not only be cost

effective, but profitable? Taking a

step closer towards this goal are the

developers of SolaRoad – TNO, The

Province of Noord-Holland, Ooms Civiel

and Imtech.

An idea born out of a brainstorming

session at TNO back in 2009, SolaRoad

will harness the sun’s rays using

crystalline silicon solar cells, embedded

into concrete modules. Topped by one

centimetre of translucent glass and

running for 70 meters, the bike path in

Krommenie, in the Netherlands is the

first publicly accessible solar road in the

world.

The €3.5 million (£2.4m) project is

expected to produce enough electricity

to power two or three houses when

extended to 100 meters in 2016. The

team behind SolaRoad plans to direct

the power generated into practical

applications - such as traffic signs, street-

lamps and even vehicles. Electricity

can also be fed back in to the public

grid for local households. Once tested

the functions will be extensive and the

possibilities exciting.

PAGE 16

Solar power in the SolaRoad... Editorial: Ajuanne Payne

SolaRoad opened on the 12th November in the Northern Province of the Netherlands and is the world’s first public road surface to be embedded with solar panels. Nominated for an Accenture Innovation Award, this pilot project could pave the way to a future of financially and environmentally sustainable roadways.

Jan-Hendrik Kremer of Imtech

sums up the long term goal of the pilot

saying: “Imagine that all over the world,

roads are generating solar power for

the lighting along the roads, matrix

signs, traffic lights, for homes and

neighbourhoods that lie along the road

or even the vehicles driving across the

roads. With SolaRoad we are on our way

to this future.”

The pilot will run for three years but

there are key questions that need to be

answered: How does the road behave

in the long term? Is the road safe and

comfortable to use? How much energy

will it produce?

Although the panels are predicted

to generate 30% less than those on

a domestic property, if a success the

long term plans would be to extend

the surface further. There are 140,000

km of roadways in the Netherlands – a

vast amount of potential and a thrilling

prospect.

One of the problems that needed to

be tackled by the consortium behind

SolaRoad was the build-up of dirt and

pollution on the surface. The road itself

is slightly tilted to help

prevent dust accumulating

and there is a skid-resistant

coating on the safety glass. The silicon

solar panels have only been applied on

half the width of the cycle path to allow

for testing and to save money for further

developments.

In fact, the consortium is a prime

example of a successful marriage

between commercial business, civil

concern and research institution. The

roots of the passion driving them can

definitely be found in a real desire to

contribute to a sustainable future for the

Netherlands.

“Co-creation is effective in order to

achieve innovation,” said Sten de Wit

of TNO.

The Province Noord-Holland has

set itself the target of producing 16%

of all energy sustainably by 2020 and

SolaRoad is one innovation that will

contribute to this goal. According to the

European Union, the gross electricity

production in the Netherlands currently

accounts for only 9.1% of the market,

with only 1.3% of that being generated

using solar

energy.

Although not the first to have this

idea – with Scott and Julie Brusaw of US

company Solar Roadways coming up

with their concept in 2006, SolaRoad is

the first to put the idea into practice on a

public route.

The SolaRoad pilot project is just

one facet of the extraordinary range of

solar concepts that we are currently

seeing develop. We ask ourselves - is

it possible to achieve what this pilot

has the potential for? We already

know key developments will be made

because of the SolaRoad project.

We could well be moving towards a

future where we not only have high

performance vehicles powered by the

sun; but also sustainable infrastructure

to support them. As Einstein said:

“You can’t solve a problem on the

same level that it was created. You

have to rise above it to the next level;”

so what will be the next level in solar

innovation?

INNOVATION

© Airbus S.A.S. 2011

PAGE 17

The Middle East petrochemical

industry has seen spectacular

growth over the past 30

years but petrochemical

producers that want to expand

domestical ly face major

chal lenges. There is of course

the issue of export; some of

the customers to the Middle

East’s petrochemical industry,

especial ly those in growth

markets, are thousands of

k i lometres away, located in

Afr ica, Asia, Europe and further

af ie ld. So as growth becomes

more and more chal lenging, how

can Middle East petrochemical

companies stay at the forefront

of the industry? According to

global management consult ing

f i rm McKinsey & Company,

petrochemical producers should

become leaders in operat ing

and funct ional eff ic iency.

PAGE 18

“Reinventing excellence”

Editorial: Christian Jordan

After becoming Managing Director of the multi-national ZAHARA Group while still in his twenties, Mr Radwan Azam now leads the organisation as it looks to expand its already sterling reputation in the Middle East petrochemical industry. He tells Total World Energy more about some of the expansion plans that the company is working on and how he manages an organisation that has his family at its heart…

And one company that

is way ahead of the game,

already act ing as a leader in

operat ional excel lence and

funct ional eff ic iency is ZAHARA

Group. Founded in India by

current Chairman, Mr Mohamed

Azam, the company is now

under the control of Managing

Director and second generat ion

leader, Mr Radwan Azam. The

company’s pr imary operat ions

consist of manufactur ing and

trading in a diverse range of

products related to industr ia l

grade oi ls, lubr icat ing oi ls,

grease and furnace oi l .

Mr Radwan Azam explains

more about the history of the

company growing from a smal l

petrochemical concern to an

internat ional petrochemical,

lubr icant, ref in ing, shipping and

logist ics and trading business

with a global network of

customers and suppl iers.

“ZAHARA Group is a Middle

East based downstream

petrochemical company with

i ts group corporate off ice in

Dubai. The group was actual ly

establ ished back in India

and we now have a base in

Singapore, Kuwait, Saudi Arabia

and our headquarters in UAE,”

he says. “The f i rst generat ion

entrepreneur was my father, Mr

Mohammed Azam, who founded

the company in the 90’s in India

and he is the Chairman of the

group. On a vis i t to the UAE,

he recognised the potent ia l for

expansion in the petrochemical

industry in the Middle East and

he establ ished a base in ear ly

2000.

“We started our trading

business by establ ishing a

company cal led ZAHARA

Petrochemicals in the UAE and

in ear ly 2004/05 we started a

smal l ref inery and this was one

of the f i rst pr ivate ref iner ies to

be establ ished in the region.

We started smal l and have

expanded drast ical ly. Since

incept ion, ZAHARA Group has

recorded fantast ic growth and

has consol idated i ts credent ia ls

as a trusted manufacturer

and trader in the downstream

petrochemical industry in the

Middle East.”

EVER GROWING ZAHARA Group operates under

the corporate phi losophy and

work culture of REINVENTING

EXCELLENCE; a tag l ine

instal led by Mr Radwan to

ensure that the company

cont inues on a growth path,

bui lding on what his father had

already establ ished.

“REINVENTING EXCELLENCE is

a second generat ion invent ion.

I manage the whole group and

my brother, Fardan, looks after

operat ions for the company

and we came up with

the ‘Reinvent ing

Excel lence’

tag l ine.

The

f i rst

generat ion was a base that

my father created and now

in the second generat ion, we

are reinvent ing and expanding

the business to a new level.

We hope that the market wi l l

ident i fy us as a company that

reinvents excel lence as this is a

promise of att i tude that we use

to def ine our own cont inuous

achievement,” explains Mr

Radwan. “We are constant ly

explor ing and coming up with

new projects. We started in

petrochemicals and now we are

enter ing lubr icants. Here we

have formed a brand name and

we are bui lding a large base for

manufactur ing and product ion

of lubr icants and grease in the

region.

“Today, we are expanding

our trading div is ion fami ly.

We wi l l add 60-70 people

in manufactur ing and 30-40

people in trading. We have

a very good team and our

strategy focusses on how we

can add value to

a qual i ty

product

in a

PAGE 19

ZAHARA GROUP

PAGE 20

rel iable and hol ist ic manner

to add credibi l i ty and value

for our business partners. Our

corporate strategy involves

a process of cont inuous

improvement in eff ic iency and

qual i ty and we always str ive for

the bet results,” he adds.

The company has a growing

base of internat ional and

regional cl ients and ensures that

each locat ion is treated with i ts

own focus to ensure opt imal

eff ic iency. “Every company has

a di fferent strategy and every

ent i ty in the petrochemical

industry has a di fferent focus

on their products in the

downstream sector but we have

structured planning where we

focus indiv idual ly on a di fferent

region so that we can extend

our reach to end customers,”

says Mr Radwan. “We have

business associat ions with

companies in the region l ike BP,

Shel l , ENOC, ADNOC as wel l as

many of the power plants across

Asia where we are supplying

their petrochemical needs so we

do work with major internat ional

players as wel l as smal ler local

players in the region.”

“Since inception,

ZAHARA Group has

recorded fantastic growth

and has consolidated its

credentials as a trusted

manufacturer and trader

in the downstream

petrochemical industry in

the Middle East”

From left to right : Fardan Azam Director, Mohamed Azam Chairman, Radwan Azam Managing Director

EXPANSION PLANSAs with any business, growth

has long been the number one

goal for ZAHARA Group and to

date i t has not been extremely

di ff icult to come by but as

the operat ions of the group

become larger and the industry,

especial ly in the Middle East,

begins to reach matur i ty, growth

wi l l become more di ff icult . This

is why Mr Radwan and the

rest of the management team

are cont inual ly explor ing new

opportunit ies for investment.

Right now there are a number

of projects that are underway or

in planning stages that wi l l a l low

the group to grow and develop

eff ic ient ly and in a way that

only impacts posit ively on the

organisat ions operat ions.

“We have bought an exist ing

plant in Jabel Al i and we are

start ing product ion here. We

are going to be the largest

product ion unit in the region in

the Hamriyah Port in Shar jah.

Altogether, in the third quarter

of 2015, we wi l l have capacity

of around 250,000MT per

annum so we have developed

new market ing strategies to

market these brands of lube oi l

across GCC (Gulf Cooperat ion

Counci l ) ,” explains Mr Radwan.

“We are also developing

storage terminals. One is in

the Hamriyah Port and we

have about 50,000 CBM of

space where we are trading

our products. Some of these

projects are st i l l in the planning

stages but some are complete.

“Construct ion of our faci l i ty

in Saudi Arabia is underway

and we are expect ing to start

operat ions by the f i rst quarter

of 2015 - i t should not be later

than February or March. This is

a long-running project because

of government approvals

and l icense pol ic ies but our

manufactur ing set-up has

already been completed and we

are ready for product ion. Legal

formal i t ies and structur ing,

government pol ic ies and other

factors have added to the t ime-

scale of this project but we wi l l

be ready by f i rst quarter 2015.

In Saudi Arabia, we are start ing

with a petrochemical plant and

then in the second phase we wi l l

come with lubr icants.”

The company has also already

started construct ion of a new

faci l i ty in Mumbai which is

expected to be completed in the

f i rst or second quarter of 2015.

“The faci l i ty in Kuwait is in the

planning stage and we doing

some environmental studies

r ight now so that wi l l take some

t ime. We are def in i te ly looking

to step into Egypt as wel l but

these are al l in planning stages.

Having a base in Egypt gives us

huge potent ia l in the region as

there are not too many pr ivate

players in the downstream

industry,” Mr Radwan adds.

Away from the physical

expansion of the organisat ion’s

footpr int, ZAHARA Group is also

expanding i ts product range.

The move into the lubr icants

business has been a successful

one so far and the company’s

f lagship brand, LUBISLE,

cont inues to ful f i l the ever

growing demand for lubr icants

and grease in the regions of

Middle East, Afr ica and South-

East Asia whi le maintaining

i ts premium qual i ty and ISO

prescr ibed standards.

“Our plans for the future

concern our product range

that’s why we have launched

our lube oi l brand where we are

target ing only end users such

as retai lers,” Mr Radwan says.

“Our lube oil brand is not yet an

established brand and companies

like Shell and Total have their

established brands.

“We will also be focussing

on our projects that are set for

completion in 2015 and then

we will be planning for a base

in Europe where we hope to

have a trading set-up in Geneva

and London. This is still in the

planning stage but it is a wish for

the future for us.”

QUALITY FOCUSWith so much expansion and

growth going on within ZAHARA

Group, it has been vitally important

for the business to remain

focussed on delivering quality –

quality products and services – to

ensure that end users remain

content and the brand maintains

its strong reputation. This focus

on quality has been instilled

in the culture of the business

from founder, to management,

throughout the entire work force.

Mr Radwan explains that no

expansion or investment decision

is made without exhaustive

consultation with advisors.

“We have a strong culture of

teamwork,” he says. “Before

we start with any plans we have

a strong dialogue with internal

advisors with whom we consult

and undertake auditory research

before we make any decisions.

We don’t look at short-term

commitments, we have long-

term plans where we can start

sustainably and grow within certain

markets.

“We have a very strong in-house

project team and we go through

many consultations to ensure that

ZAHARA GROUP

PAGE 21

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PAGE 22 Shah Deniz platform - Photo Shahin Abasaliyev - Statoil

when we undertake projects, we do

things to the highest possible level.”

This consultation extends

throughout all outcomes from any

investment decision and takes into

account commercial factors as well

as other considerations such as

employees, the community and the

environment.

“We have a strong environmental

focus and we have made our

predictions for the coming ten

years about where we expect

to stand at each level. We have

a strong commitment to the

environment that’s why we have

a total recycling policy and we

contribute a lot of environmental

responsibility to the industry,” says

Radwan.

A FAMILY AFFAIR It’s important to remember that

after all the success and expansion

of the company since its formation,

ZAHARA Group is a family run

business with much of its success

being owed to the vision of Mr

Mohamed Azam and the drive

and ambition of Mr Radwan and

Mr Fardan. That being said, the

second generation of leadership

are keen to position the company

as more of a corporate body

with clear roles and strategies.

According to Mr Radwan, there is

no conflict, no nepotism and no

difficulty in running the business as

a family.

“This is a family run company

but we changed the atmosphere

to become more like a corporate

entity. We have defined our roles

and everybody has a different

focus within the business. My

father is the Chairman and

overlooks the company more

as an advisor in new project

developments. My brother has

taken complete control of all

production and technical aspects

and I take responsibility for

overall management; business

development, trading and finances

of the company.

“I came on board early in 2006.

I was not fully involved and I was

trying to learn things. I completed

my Bachelor’s Degree in business

administration but early on I was

trying to understand the business.

My father was busy trying to

develop things and implement a

structure but he did want the new

generation to come on board.

I took over the business more

completely in 2010 but I was still

learning and it took time for me

to understand everything. My

first strategy was to change the

focus and vision of the group

and become a corporate entity.

I always wanted to develop and

expand what my father had

started. I had always spent time in

and around the business because

of him and I knew that when I

graduated I wanted to step into

the business with him,” Mr Radwan

explains.

And as for one of the major

problems that faces many family

run businesses, the succession

plan, Mr Radwan says that he has

no doubt that the third generation

of his family wil l eventually take

control of ZAHARA Group, further

expanding it and overcoming the

challenges that wil l arise in the

future.

“We will have to mentor the

next generation l ike my father

trained me from a young age.

It’s an expanding world and with

business we have our l imitations

but my father had limitations

that we were able to overcome

in the second generation so

I would definitely want the

third generation to come in

and expand the business even

further,” he concludes

ZAHARA GROUP

PAGE 23

“Having a base in Egypt gives us huge potential in the region as there are not too many private players in the downstream industry”

PAGE 24

Sugar Cane = PowerEditorial: Rosie DeWinter

Magdalena has had a successful three decades and now, as one of the largest employers in Guatemala and the largest sugar mill in the region, it is leading the field in energy as an important independent energy supplier to the Guatemalan grid. Total World Energy speaks to Jaime Alberto Morales, Head of the Energy Division of the Group, to find out what’s next for this interesting company.

Today, the sugar mill industry is

a large business, not only for the

never-ending need of raw sugar

but also as an independent power

producing industry. If you consider

that sugar cane bagasse, a natural

fuel source, is produced out of the

sugar cane milling process as a

by-product, producing sugar and

power is just a natural process.

Generating electricity via this

method is done using energy

conversion. Thermal energy

produced from the combustion

of bagasse (cellulose fibre from

crushed sugar cane stalks) is

converted into mechanical energy

in a turbine, then into electricity in

the generator to be finally fed into

the electrical grid for people and

industry use.

Bagasse from this sugar cane

process is used as raw material,

which is then transported to the

boilers to be used as fuel to heat

water and produce steam. High

temperature and high pressure

steam is produced inside the boilers

to move a turbo generator and

produce electricity. The steam is

produced in a group of aquatubular-

type boilers and delivered to a series

of turbo-generators that make the

Jaime Morales Choto

conversion of thermal to mechanical

energy and then electricity.

A renewable fuel, sugar cane

baggase can then be used for

power generation, either for

internal consumption or transmitted

for consumption in the national

electrical grid.

Total World Energy speaks to

Jaime Alberto Morales, Head of

Energy Division at Magdalena,

which, when first purchased

in 1983, was known as one of

Guatemala’s smallest independent

sugar mills.

THREE SUCCESSFUL DECADES Now, 30 years on and Magdalena,

through a succession of investments

and projects, has become the

largest sugar mill in the region,

conforming to the highest global

industry standards. What’s more,

the company is now one of the

key suppliers of electricity to the

ntional grid in Guatemala and in the

regional electricity market.

Morales explains: “Sugar cane

bagasse is a renewable fuel which

is used for power generation. In

the sugar industry, bagasse has

been used for more than 50 years

to produce steam and power.

Bagasse is the natural fuel that we

have here.”

“Having said that, Magdalena

has been leading the sugar mill

and power generation Industry in

the region. Magdalena has been

recently appointed as one of the

biggest sugar mills in the world,

processing more than 42,000 tons

per day of sugar cane.

“Early in the 90´s, Guatemala

was needing power generation

to support its growing demand,

considering that most of its

power generation was coming

from hydroelectric stations, it was

limited mainly to the rainy season.

Magdalena as other sugar mill

companies were awarded with

energy supply contracts to meet the

MAGDALENA

PAGE 25

“Sugar cane bagasse is a renewable fuel which is used for power generation. In the sugar industry, bagasse has been used for more than 50 years to produce steam and power. Bagasse is the natural fuel that we have here”

uncovered demand. During the last

decade, sugar mill power generation

has been a key component of

the electrical power portfolio in

Guatemala where Magdalena has

been playing an important leading

role,” Morales explains.

“Since the 90’s, Magdalena

has been continuously investing

and growing in the energy sector,

expanding its generation capacity

from 20 Mw at the beginning, to

200 Mw at the current times. The

expansion of the sugar mill business

allowed Magdalena to have more

sugar bagasse and install more

generation stations,” says Morales.

In order to diversify its generation

portfolio, Magdalena Group invested

in other generation technologies

like coal and hydroelectric power.

All this, to support the growing

demand of Guatemala and other

regional countries in the vicinity were

Magdalena is currently supplying

power. Additionally, considering

the current capacity, Magdalena

invested in high voltage transmission

lines and got interconnected in the

main transmission system of the

country.

THE SUMMER MONTHSGuatemala is now one of the most

important sugar cane producers

in the world and consequently a

significant portion of the national

power demand is being covered

by the renewable fuel, sugar cane

bagasse.

Magdalena designed its latest

power units to run on a mix of

biomass and coal to increase its

generation capacity by 180 MW

with the installation of three 60

MW turbo-generators capable of

generating power year-round. The

last 60 MW unit will be on line by the

end of 2015.

The Guatemalan summer drives

the start of the sugar mill season

which is when fuel for power

generation is produced: “The sugar

cane season starts in November and

ends before May, so we produce the

fuel for power generation between

those months,” explains Morales.

The upgraded units are designed

to run on bagasse during the

November to May summer harvest

season and then switch to coal

between the rainy season that goes

from May to October. The first unit

came online in November 2012, the

second in June 2014 and third is

scheduled for the end of 2015.

GROWTH OPPORTUNITIESDuring 2013, Magdalena began the

installation of a new boiler with a

turbo-generator for increasing the

installed capacity in the power plant.

PAGE 26

MAGDALENA

PAGE 27

Morales explains: “Magdalena

saw the opportunity to continue

growing in the power generation

sector. Magdalena realised that they

had enough sugar cane bagasse

and therefore enough fuel to install

the Unit B6, which has the capability

of burning bagasse during the sugar

mill season. When we don’t have

bagasse, we can switch to coal and

keep producing energy the rest of

the year. Our technology allows us

to maintain our emissions levels

within the International Standard

and local regulations.”

“So with the new units, we are

now capable of supplying energy

continuously to the National Grid

while previously we only had

seasonal units. Right now, we have

just finished commissioning and

entered into commercial operation

with the second new block, B7.

Additionally we are now building the

third block, B8, and hope to have it

finished by the middle of 2015.”

Morales explains that support

from both the government and

community has remained very

positive throughout the process:

“What’s happening in Guatemala

is very interesting in terms of the

electricity law. When Guatemala

entered into a modern energy

market scheme, the generation,

transmission and distribution

of energy went from being a

government owned monopoly into

a competitive open market. The

power generation assets were then

sold to the private sector.

“The international companies

came to purchase those assets as

Independent Power Producers. A

similar approach was taken with

the distribution companies. The

new electricity issued early in the

90´s opened the door for new

“If you ask me, what was the support from government to have Magdalena investing in this country, I would say: Issuing good laws and providing enough confidence to invest for the long term”

PAGE 28

© Shell

Blanketing: Operations to Maximum Safety with Flammable LiquidsBlanketing is the application o f gas technology which consists in replacing the air by inert gas in the gas head of stored combustible liquids, in order to prevent their fl ammability and thereby protect the stored product and the storage facilities, against a fi re or explosion. Air, and specifi cally the 21% oxygen content in it, represents the main risk of fl ammability. Additionally, it prevents oxidation and internal corrosion of storage tanks to minimize time and cost of maintenance.

It works elimination one of the essential factors to declare a fi re: the presence of oxygen as oxidizer.

3 factors are required for a fl ammable product to reach combustion: the fuel (which can not be removed from the system as it represents the product to be stored), the oxidizer that is the oxygen present in the air, and the activation energy that even can be an electrostatic charge accumulated in the metal of the tank.

One of the actions to remove a combustion factor has been the connection of the tanks to physical ground to prevent accumulation of electrostatic charge. However, this protective mechanism is not viable in regions of high humidity which causes oxidation or corrosion of electrical ground wires and thus permissiveness to accumulate an electrostatic charge suffi cient to ignite the fi re inside the tank where presence of fl ammable gases.

For that reason, blanketing becomes the most effective and safe mechanism to protect the product and its storage tank, because in the absence of oxygen, combustion, fi re or explosion can not be produced.

With the storage tank completely closed, the movement of gases mixed with nitrogen is self-regulated with pressure relief valves and vacuum break valves which allow the internal forces do not affect the integrity of the tank.

Sergio Molina Mejía. Chemist MA – MBA – MSc.Productos del Aire de Guatemala, S. A.

41 Calle 6-27 zona 8, 01008 Guatemala.Phone 2421 0400 ext 314. Fax 2440 9696.

E-mail [email protected]

international and local investment

and added new dynamics to the

electricity business.

“Initially there were only a

few international players in the

electricity sector but right now

we have various power investors.

The promotion that Guatemala did

to attract investors and the new

regulation brought international

companies like ENEL, Duke Energy,

Globelec, IC Power as well as other

world class companies.

“I think that, if you as a government

develop good regulations, support

local and international investors for

the long term and keep your promises

consistently, you will attract more

and more companies interested in

investing and in the growth of your

country. If you ask me, what was the

support from government to have

Magdalena investing in our country,

I would say: Issuing good laws and

providing enough confidence to invest

for the long term,” Morales adds.

A SIGNIFICANT MILESTONE With such a successful and

innovative history behind Magdalena,

Morales explains that a significant

milestone for the company was to

jump in the power sector; being in

the sugar industry and getting in the

power industry was a natural step.

“The sugar mill and power

generation businesses do not

conflict each other,” he explains.

“The sugar mill production means

taking sugar cane and passing

it through different mill stages to

get the cane juices. As part of this

production processes you get the

bagasse, the bagasse is then used

to produce high pressure steam

and steam moves turbines and

generates power. Once steam has

passed through the turbines, low

pressure steam is reused in the

sugar mill processes, which is called

cogeneration.”

Having worked in the oil and

energy market for more than

15 years, Morales explains that

Magdalena has turned into a

real energy company: “We have

a commercial team that trades

our power, we have a regulatory

and market team focused on the

behaviour of the local and regional

market and in any change of the

regulatory frame. Additionally

we have a project development

group focused on new business

opportunities in hydroelectric, solar,

thermal and other technologies.

With our current energy division

team, Magdalena is looking to grow

in the region with new operations

and with more electricity exports.

We want to be the preferred choice

for any distribution company or large

industrial consumer for the supply of

its energy needs. ”

Continuing to stand as the largest

sugar mill in the region, one of the

largest employers in Guatemala

and representing one of the most

important enterprises in the country

today, Morales simply concludes:

“The Energy Market in Guatemala

is now at a mature stage, and

therefore we need to explore other

opportunities in the region to

continue with our growth.”

Blanketing: Operations to Maximum Safety with Flammable LiquidsBlanketing is the application o f gas technology which consists in replacing the air by inert gas in the gas head of stored combustible liquids, in order to prevent their fl ammability and thereby protect the stored product and the storage facilities, against a fi re or explosion. Air, and specifi cally the 21% oxygen content in it, represents the main risk of fl ammability. Additionally, it prevents oxidation and internal corrosion of storage tanks to minimize time and cost of maintenance.

It works elimination one of the essential factors to declare a fi re: the presence of oxygen as oxidizer.

3 factors are required for a fl ammable product to reach combustion: the fuel (which can not be removed from the system as it represents the product to be stored), the oxidizer that is the oxygen present in the air, and the activation energy that even can be an electrostatic charge accumulated in the metal of the tank.

One of the actions to remove a combustion factor has been the connection of the tanks to physical ground to prevent accumulation of electrostatic charge. However, this protective mechanism is not viable in regions of high humidity which causes oxidation or corrosion of electrical ground wires and thus permissiveness to accumulate an electrostatic charge suffi cient to ignite the fi re inside the tank where presence of fl ammable gases.

For that reason, blanketing becomes the most effective and safe mechanism to protect the product and its storage tank, because in the absence of oxygen, combustion, fi re or explosion can not be produced.

With the storage tank completely closed, the movement of gases mixed with nitrogen is self-regulated with pressure relief valves and vacuum break valves which allow the internal forces do not affect the integrity of the tank.

Sergio Molina Mejía. Chemist MA – MBA – MSc.Productos del Aire de Guatemala, S. A.

41 Calle 6-27 zona 8, 01008 Guatemala.Phone 2421 0400 ext 314. Fax 2440 9696.

E-mail [email protected]

MAGDALENA

PAGE 29

Located 150 to 270 kilometers off

the coast of Angola lays a 4000

km2 area known as the jewel

in the Angolan energy industry;

a region where oil production

developments have set global

benchmarks for the industry; a

region where, less than a decade

after first oil from the block,

its cumulative production had

reached over one bil l ion barrels.

It is of course Block 17; the

‘Golden Block’.

Block 17’s story began back

in ’96 after the discovery of the

Girassol field. By 2001, this

field was setting records and

producing 200,000 barrels per

day. By 2007, much progress

had been made in the region and

the FPSO operating the Girassol

field received tie-backs from the

Jasmim and Rosa fields, and

eventually the Dalia field was

PAGE 30

Success in the ‘Golden Block’ Editorial: Christian Jordan

The deepwater CLOV project, in Block 17 off the coast of Angola, has been hailed as a true success for operator Total and other shareholders. After reaching first oil in June 2014, the project is now being handed over to the local production team to operate for the next 20 years. Project Director, Francois Bichon and other senior managers tell Total World Energy more about this important development and what it has done for the local economy…

© Total E&P Angola – Photo Kostadin Luchansky

started, bringing the block’s total

output to around 500,000 barrels

per day. In 2011, the Pazflor

project came online and this

added a further 220,000 barrels

per day to cumulative production.

In June 2014, the CLOV (Cravo,

Lirio, Orquidea, Violeta) fields

development produced its first

oil and, much to the delight of

Sonangol, Total, Statoil, Esso

and BP, reached its plateau soon

after – a plateau that it has so far

managed to stick to.

However, even though the

CLOV development has lived up

to the success of the previous

projects on the block, there has

been many ups and downs to

ride-out as Francois Bichon,

CLOV Project Director, explains:

“We have had some hiccups

but most things have been ok.

The very good part has been oil

production. When we start with

all the wells, we cannot open

them all at once. Opening wells

has to be progressive and it

depends on starting new, very

complex installations. There

has been progression, and that

has been better than what was

anticipated. It’s not that we’re

producing more; we ramped up

production quicker than what

was planned – we don’t reach

more than the maximum but we

reached the maximum quicker

and that was the very good

aspect.

“Water injection has been fairly

good and as planned. Because

the reservoir starts emptying we

inject water to maintain pressure

and fi l l the void left when the

oil is extracted; this has gone

well. What has gone less well

is gas export. We need some

gas for electricity generation

but the rest of what we produce

is exported to Angolan LNG

which is a new LNG plant built

by a group headed by Chevron

onshore. Unfortunately this plant

has had some problems. We have

nowhere to send the gas but

other developments on Block 17

or on the block 2 have injection

so the plan was to send the gas

to them and they would inject it.

But then came another problem

– our compressors have electric

motors and we have found a

PAGE 31

CLOV

PAGE 32

defect on these motors and our

compressors are not working

meaning we cannot export the

gas,” says Bichon.

FPSO Manager, Patrick Vallot

says that the issue is mechanical

and does not affect oil production

and he fully expects the issue to

be resolved quickly.

“We had a failure in August

and when we opened the

motor, we found that there was

mechanical damage to the rotor.

After investigation, we found

that there were some critical

rotation speed frequencies where

vibration or resonance damaged

the contact piece of the rotor and

this caused mechanical rupture

internally. This came after around

400 hours of running so it was

not immediate. It came after

the accumulation of hours of

operation at the critical speed.

“All of the motors need to

be repaired and they drive our

compressors which allow us to

export gas. The problem is not

as critical with the water injection

pump because it takes place

at a frequency which the pump

does not normally reach so we

can operate them as they are but

ultimately they have lost integrity

and will need to be replaced.

On December 4th 2014,

refurbished motors were installed

into one of the gas export trains,

allowing gas export to operate

properly. It is expected that the

second export train wil l receive

refurbished motors very soon

and export wil l reach its planned

level.

CLOV FPSO The CLOV FPSO, although

featuring a number of innovations

and improvements, has been

designed to be similar to the

other FPSO’s operating in Block

17. This, according to Vallot, was

deliberate as the organisation

looks to replicate a proven model

for success

“If you look at it, it very much

looks like its predecessors. CLOV

FPSO has been contracted by

the same shipyard, Daewoo

Shipbuilding and Marine

Engineering (DSME), as Pazflor

and Pazflor has been a constant

reference during this contract.

We have tried to make maximum

use of what was learnt on Pazflor.

For instance, the l iving quarters

on CLOV are a carbon copy

of Pazflor. In terms of design,

CLOV is very similar but we have

introduced a few improvements

to the fine details.”

Construction of the FPSO

was undertaken by DSME at its

yard in Okpo, Korea. However,

construction work was also

undertaken at the Paenal Yard in

Porto Amboim, Angola.

“Our contract started in

July 2010 and we started with

engineering,” explains Vallot.

“The first steel cut was for the

hull in July 2011 and the FPSO

left Korea in August 2013. The

final construction and integration

phase was at Paenal in Angola

and when this was finished, the

FPSO sailed away from Paenal

in January 2014. Then we

moved into the offshore phase.

The FPSO was moored and we

completed the hook up and

commissioning until f irst oil in

June. Overall it was 47 months

from effective date until f irst oil -

there were no significant delays.”

Overall, the CLOV project has

garnered much local involvement

and interest and Vallot says that

work at the Paenal yard has

demonstrated the high level of

quality that is now offered by the

country’s offshore sector.

“The experience we’ve had with

Paenal yard has been extremely

positive,” he says. “We started

with Paenal when the yard

upgrade was beginning. They

were sti l l developing facil it ies and

that has been ongoing beside the

CLOV project. It has been very

successful as the whole scope

of activity, which has been much

higher than previous projects,

has been completed on time, with

very good HSE records and to

great quality. We can only give

very positive feedback to Paenal

yard.”

The CLOV FPSO will work on

Block 17 for the next 20 years

and the hope is that it can be

used for further production in

the region when it is finished on

CLOV. However, if, in 20 years’

time, the FPSO is no longer

required, it is l ikely that it wil l be

redeployed.

“I’m not sure about the future

of the FPSO. It very much

depends on our team and if they

can find some opportunities

to extend the life of the FPSO

with more production but that

is for the exploration team,”

says Vallot. “Typically, if there

is not, the FPSO would be

decommissioned and re-used or

dismantled. That is the beauty

of an FPSO; it’s very easy to

decommission compared to a

fixed facil ity.”

FLAMELESS FLARING One of the innovations that has

been installed on the CLOV

FPSO is a flameless flare. As

part of the group-wide drive by

Total to reduce gas wastage, the

flameless flare is designed with

a combination of valving and

rupture disks or very thin plates

calibrated to pressure. When the

pressure becomes too high, the

CLOV

PAGE 33

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PAGE 34

valve

opens or the

rupture disks break and releases

the gas to the flare which uses

pellets to ignite automatically.

“It’s a concept that comes from

an attempt to reduce the global

emissions for Total, it’s part of an

overall emission reduction plan

which has been going on over

the past years and this concept

is part of this continuous attempt

to reduce gas emissions and also

water emissions and all emissions

to reduce the environmental

impact of our development,”

Vallot explains. “By recovering

more gas and flaring less gives

you economic benefits because

its valuable gas being saved.

Also, there is a safety issue

as you want your flare to be

absolutely reliable.

“For Total, this system is not

new. Usan in Nigeria was the

first to apply this concept. As

far as we are concerned, we are

not in the situation to have a

flameless system but as soon as

we solve the compressor issue,

the intention is to move towards

this,” he adds.

MULTIPHASE PUMPING

Another innovation for CLOV is

the use of a subsea multiphase

pump system. The pump

system will optimise recovery of

hydrocarbons from parts of the

Orquidea and Violeta oil f ields,

two of CLOV’s four reservoirs

where pressure conditions are

less favourable and the oil more

viscous. The rock in the two

fields is from the Miocene epoch

and creates different conditions

for production.

CLOV SURF and SPS Manager,

Frédéric Coudevil le, says that the

pumps are not yet operational

but are being installed and

normally this is not a lengthy

process.

“We have used some similar

pumps on Pazflor but this is

the first time we have used this

specific type of booster pump for

subsea operations.

“The pumps have not been

installed yet. The manifold

is installed in the water and

installation of the pumps is

scheduled at some point in 2015

so the manifold is just a bypass

for production. We need to

install the pumps and we need

to commission the full system

with the umbilical and the topside

power system. The plan is to use

these pumps two years after first

oil,” he explains.

There wil l be two pumps,

one of which wil l be used as a

back-up, and there are plans for

similar systems to be used in the

future as an essential solution

for improving recovery rates in

mature oilf ields.

“For the moment, the second

pump is planned purely as a

backup so that we are never

penalised production-wise. It wil l

be onshore and if we need to

switch the pumps, it can be done

quickly.

“Overall you’re looking at a

10 day operation. You need to

organise everything; you need an

installation vessel, you have to

connect the pump and you have

to depressurise the system so it

wil l probably take 10 days,” he

says.

On the Pazflor project, similar

pumps have been used for

subsea separation of l iquids and

gas but on CLOV the internal

workings of the pump are

different in order to deal with the

more viscous oil. The system sets

itself apart through its capacity

to pump and tolerate a blend of

fluids made up of oil, gas and

water (multiphase fluid) from the

oilf ields, without their having

been separated beforehand. Also,

it is hoped that the use of the

pumps will mean that optimum

production can be maintained

after approximately three years of

operation.

“This installation wil l

compensate for the gradual

fall in pressure in the oil f ields

by helping to propel the more

Project Director: François Bichon Photo: Hervé Piraud

viscous oil up from the seabed to

the production and storage unit

on the sea’s surface.

“The multiphase helico-axial

structure is a high-performance

design which prevents any loss

of load and enables the rotor to

evacuate a mix of several (even

highly variable) fluids at high

speed,” explains Bichon.

EXPORT BUOY

Following first oil back in June,

the CLOV FPSO quickly set about

working to its full capabil ity and

oil is being offloaded straight

from the vessel. The long-term

plan is to offload oil via an export

buoy that sits two kilometres

away.

“The issue with the buoy is that

installation is happening after first

oil which means access to the

site is reduced and the challenge

is to optimise the installation

between two tankers. You have

to ensure that the sequence of

operations does not affect the

tankers or the FPSO,” explains

Coudevil le. “When you pull the Oil

Offloading Lines (OOLs) between

the buoy and FPSO, you have

to be prepared to be working

in between these two important

pieces of equipment. There wil l

be tugs, there wil l be vessels,

and there wil l be diving activity

around the buoy and the FPSO

so everything requires perfect

coordination.

“Today the buoy is moored

against the fabrication yard quay.

Fabrication has been completed

and we are going through

different tests. We are working

with the other companies who will

be involved in the installation of

the buoy to make sure everything

is ok.

“We have a buoy on Girassol,

Dalia and Pazflor so we know

this system. It’s designed with

a turning table so if the tanker

moves, the buoy can cope with

the situation. It needs more

equipment to install but safety-

wise, it provide huge benefits,”

he adds.

The connection between the

FPSO and the buoy wil l be made

with OOLs, which Total is using

for the first time on this project.

They are 24 inches in diameter

and made from reinforced rubber.

They are designed to withstand

pressure levels of 30 bars and

last for 20 years, and because

of their larger diameter, crude

oil can be offloaded towards the

buoy without the need for booster

pumps that would normally be

installed on the FPSO.

The oil that is produced and

offloaded is allocated among the

concessionaire and the project

shareholders and then sent off

to markets all around the globe

as Bichon explains: “We have

tankers that arrive, connect to

the FPSO, take typically one

mill ion barrels and then they go

all over the world, depending on

what the traders have concluded.

This development involves a

number of partners with shares.

As each have paid their share of

the investment, each gets their

share of the oil but, of course,

when you have a tanker, you

don’t say 40% of the oil is for

Total; we arrange to have one

tanker for Total then the next

is for the concessionaire, then

the next for Statoil, the next is

for Esso etc etc and then we

maintain the account so that we

know the number of tankers that

each shareholder has had. Total

as the operator wil l decide the

order of tankers and then each

company wil l make their deals

with the refineries – which may

not even be their own refineries

– it’s the traders business to sell

the oil to whoever wants it.”

HANDING OVER Total has been present in Angola

since 1953. At the end of 2013,

Total operated around 600,000

boe/d, making it the country’s

leading oil operator. The

company has vast experience

in the region and is known

worldwide for its deepwater

expertise and, importantly for the

Angolan offshore industry, Total

is wil l ing to impart its knowledge

to local companies in order to

continue the on-going successful

development of the region.

The project team that has seen

CLOV go from contract through

to first oil is slowly leaving the

project as responsibil ity for

production over the next 20

years wil l be left with an affi l iate

organisation.

“We need to work out

resolutions to all the small

problems that are left. We have

handed production and water

injection over to the operations

team and we have responsibil ity

to resolve a few problems,

including the compressor issue,

before we finish,” says Bichon.

CLOV Field Operations

Manager, Ludovic Linne has

been part of the team organising

the hand over process and says

that it started a long time before

first oil: “The handover process

is something which started very

early. We started about one year

before the arrival of the FPSO

in Angola, in October 2012,

about 18 months before first

oil. We set up what we call an

integration steering committee

(ISC) to ensure the readiness of

the affi l iate to integrate CLOV

facil it ies in the organisation. ISC

meetings took place every few

CLOV

PAGE 35

PAGE 36 Shah Deniz platform - Photo Shahin Abasaliyev - Statoil

months and the closer we got to

first oil, the more frequent they

became. Senior management

attend the ISC meetings and all

the entities are involved because,

to integrate a site l ike CLOV, you

need human resources, HSE,

dril l ing, logistics, finance, etc

so all the entities are involved

and we involved the senior

management to ensure that all

actions are properly cascaded

to the different entities,” he

explains.

“I was in charge of the field

operations team and control

of the operations until the first

offloading and after that, it

was decided to transfer the

operational responsibil ity of

the FPSO to the Block 17 field

organisation,” he adds.

The handover process has seen

Total personnel join the Block 17

operational team, ensuring that

expertise remains part of the

project.

“We have tried to integrate

CLOV personnel within the Block

17 organisation,” says Linne. “For

instance, I had set up in my team

an onshore support organisation

to support production activities

so there was around 25 engineers

and most of these people have

been transferred to the Block 17

field operation organisation. This

is very important to help maintain

experience and knowledge within

the Block 17 organisation.”

Before handing over to the

Block 17 organisation, Linne and

rest of the field operations team

created a l ist of tasks that sti l l

need to be addressed before the

FPSO is 100% complete. This is

a common process during the

hand over procedure on large

projects and the tasks are usually

menial.

“The affi l iate is always

concerned that the project is

demobilising too quickly so

you have to prepare properly

by organising workshops and

an exhaustive l ist to transfer

the remaining construction

activities (if there are any), such

as painting, repairs or activities

where you are sti l l waiting for

materials, and pass it to the

affi l iate. You would not do this

if there are sti l l major activities

left to be completed – you only

do this when you’re nearly at

the end of the project and the

final activities are just waiting on

simple things.

“For commissioning activities,

we have handed over around 100

activities to the affi l iate but you

have to put that into perspective

because there were tens of

thousands of activities across

the project so what is remaining

is minimum scope compared to

what the contractor has already

done,” he explains.

Vallot, who is soon to head for

a new position in the North Sea,

says that, so far, the handover

has gone very well and the

project team are finishing up

with their f inal activities: “It’s a

© Total E&P Angola – Photo Hervé Piraud

CLOV

PAGE 37

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complex operation that takes

into account construction,

commissioning and other aspects

so it has been done in stages

from August and it’s sti l l going

on. We sti l l have some issues

that are being taken care of by

the project team.”

The method of handing

over this large scale operation

from project team to Block 17

operational team is a method

that has been a proven success

in past operations. The whole

process was done in exactly the

same way on for Pazflor and

Linne says that when a process

works so well, there is no need to

change it.

“The ISC was set up in the

same way on Pazflor, the

handover of activities were done

in the same way, and we really

worked hand-in-hand with the

Pazflor project and there was no

reason not to reuse the method

that was successful on Pazflor.

We did not try and reinvent

the wheel, we followed the

methodology and we have been

successful,” he says.

PLANS FOR 2015It is clear that there is an air

of posit ivity surrounding the

CLOV project. Since f irst oi l ,

apart from the issue with gas

export, everything has gone

extremely well and showed that

the experience from previous

projects has been invaluable.

It looks as though this

posit ivity wil l continue as we

move through the new year; the

project has already exceeded

expectations in terms of reaching

its plateau and the chal lenge

now is to maintain this level by

dri l l ing more wells.

The ult imate plan is to have 34

wells; 19 oi l producers and 15

water injectors. Right now, there

is 11 producers and four water

injectors and Bichon explains

that dri l l ing wil l go on unti l al l 34

are complete.

“We have two dri l l ing r igs

and we have had them since

the beginning of 2013 and they

have both dri l led and wil l dri l l

continuously. One wil l stop

before the other but the last one

wil l stop in September 2016.

They are dri l l ing one each, one

well takes about two months, so

we are going at a rhythm of one

new well every month.

“When they are dri l led and the

Christmas trees are instal led,

then we have to connect them

and that takes another two

months. Today we have 11

producers, four injectors and two

more wells are dri l led but not yet

connected. During the next year,

given more information from the

wells and more information about

the reservoir, the geologists

might want to dri l l one more

producer or one more injector

so it might be adjusted but r ight

now the plan is 19 and 15.

“We are able to start ful l

production with just nine

wells. We don’t even need

the injectors at the beginning.

As t ime passes, the reservoir

starts emptying and these nine

producers start decreasing so

we have to add more at other

reservoir locations to maintain

the ful l f low at 160,000 bpd so

we don’t need al l the wells at the

beginning, it wouldn’t help,” he

says.

On 30th September 2014, oi l

production reached 168,000

bpd, the design peak for the

CLOV FPSO, and has managed

to maintain that level ever

since. “This is certainly one of

the greatest achievements of

this project,” explains Linne.

“We have been at around

95% avai labi l i ty since the

beginning and this is ongoing.

This is excel lent for a start-up,

especial ly in a f ield that has been

operating for a number of years.

What is interesting is that there

was basical ly no learning curve.

Normally, you can expect to start

with around 70% or 80% and it

increases l i tt le by l i tt le as you

PAGE 38

go through trouble shooting. We

started, r ight from the beginning,

with a very good avai labi l i ty

and we have maintained it. The

reason for this is the simplicity of

the process.

“Another success has been

the readiness of the operator.

I f there is a problem that needs

attention, the operators have

been quick to respond avoiding

a ful l cascade and shut down.

“Another factor is the quality

of the commissioning. If this is

not done properly, you wil l pay

the price and spend more t ime

trouble-shooting.

“The last success is the

dri l l ing where suff icient wells

were dri l led before f irst oi l – not

al l connected but they were

dri l led. This means we have

avoided sim-ops (simultaneous

operations) l ike having to

disconnected or connect and

halt production while doing so,”

he adds.

CLOV – AN ANGOLAN PROJECT Ever since its first steps in

Angola, Total has committed

itself to helping the country

develop. After the Angolan civil

war eventually came to end in

2002, Total was firmly rooted

in the region and was perfectly

positioned to help develop the

economy. Bichon says that he

has seen major changes in the

country in the 15 years that he

has been working on Angolan

projects: “There is a lot to do,

lots of things to build. I worked in

Angola 15 years ago and it was

a very different place, sti l l in war.

Luanda was much less developed

so we have seen major changes.

There is a lot of aspiration for

work from local people and

a lot of aspiration for local

involvement from government and

international companies. 15 years

ago, the interest was in revenues.

There was not a lot of economic

activity, the money from the oil

was needed for reconstruction

after the war. Today, the level

of education has risen and the

government want the jobs to go

to local people across all levels,

especially in management roles.”

Of all of the projects on Block

17, CLOV has seen the most

local involvement with more than

10 mill ion man-hours of work

(Dalia had 2.5 mill ion and Pazflor

3.7 mill ion) and it is expected

that the next Total project,

Kaombo, wil l have more than 14

mill ion man-hours of local work.

Like Bichon, Coudevil le and

Linne have also found working

closely with local people and

contractors a successful process.

“We have worked in different

locations around the country and

so far the quality has been good.

There have been minor delays but

overall we have delivered on time

and I believe that this package

has been a success,” says

CLOV

PAGE 39

Coudevil le.

“We have a request from the

local authorit ies to national ise

the organisation as much as

possible so our target was to

start with at least the same

national isation ratio as the other

FPSO on Block 17. This is what

we achieved. For instance, on

the production team, al l of the

operators and chief operators

are 100% Angolan posit ions and

50% of the supervisory posit ions

are Angolan. The start-up team

is more international but this is

only during the early stages of

production,” says Linne.

Overal l , since achieving f irst

oi l , the CLOV project has been a

success on so many levels. The

experiences gained from Girassol

and Pazflor have provided the

perfect platform to bui ld on

and, for the Project Director,

the main chal lenges have been

organisational.

“Each project has different

characterist ics,” says Bichon.

“The f irst deepwater project on

Block 17, Girassol, although I

only worked on it for a small

amount of t ime, real ly was

a groundbreaking project.

Everything was a problem

and al l the solutions had to

be invented from scratch. You

have to use al l your engineering

ski l ls to look for new solutions

to technical problems in a new

environment. CLOV is the fourth

deepwater project on Block

17 so we know, more or less,

what we have to bui ld. The

chal lenges involve planning,

subcontractors, vendors and

combining everyone’s work to

meet at the correct t ime – it’s

an organisational chal lenge.

We always try to be inventive

and improve the processes

but there are always issues of

vendors being late or contractors

having quality problems so

there is always problems that

need alternative solutions and

with CLOV the chal lenge has

been managing a complicated

organisation rather than

technical.”

Having uti l ised a large amount

of local labour and developed

many improvements for already

eff icient processes, CLOV wil l

act as an example to fol low;

not just for Angola’s offshore

industry but for deepwater

projects al l around the world.

The fact that the production

plateau was reached so quickly

and has been maintained prove

that CLOV is indeed a golden

project in the Golden Block

© Total E&P Angola – Photo Kostadin Luchansky

A major producer of oil and gas from

the offshore areas of the Emirate of

Abu Dhabi, ADMA-OPCO prides its

reputation in being an established and

pioneering petroleum organisation in

the region. And with over 45 years

of experience within oil and gas

production, 2014 was a very busy and

exciting year indeed.

With its mission to develop oil and

gas production to ensure it maximizes

sustainability towards 70% recovery,

ADMA-OPCO uses state-of-the-

art technology whilst maintaining

responsibility, efficiency, the highest

HSE, operational integrity and cost

effectiveness standards.

Located in the gulf of Abu Dhabi,

the Umm Shaif and Zakum fields

have long been known to global oil

companies for the existence of vast

amounts of oil and have, in the last

few decades, become both major and

renowned oil and gas producers.

CELEBRATING FIRST OIL PRODUCTIONAt the start of October last year,

ADMA-OPCO began first oil

production from the Umm Lulu Field,

located in the Arabian Gulf 30km

north-west of Abu Dhabi, using

existing facilities of the nearby Umm

Al-Dalkh Oil Field.

Developed by ADMA-OPCO, the

Umm Lulu field is a joint venture of Abu

Dhabi National Oil Company (Adnoc,

PAGE 40

Celebrating first oil productionEditorial: Rosie DeWinter

With almost five decades of experience under its belt, ADMA-OPCO has proved its position in an increasingly competitive industry with a successful 2014 which saw first oil production from its Umm Lulu Field located in the Arabian Gulf…

60%), BP (14.67%), Total (13.33%)

and the Japan Oil Development

Company (Jodco, 12%). The field is

being developed as part of ADNOC’s

strategic initiative to achieve 1.75

million barrels of offshore crude oil

production a day by 2017, which

incidentally is part of a grander

scheme to increase Abu Dhabi’s total

crude oil production to an exponential

3.5 million barrels a day.

The first well from the Umm Lulu

field flowed at 5000 BOPD, joining

the offshore production system

and highlighted a significant step in

achieving Abu Dhabi Oil production

goals.

ADMA-OPCO plans to add 270,000

barrels per day capacity through

the development of three new fields

offshore with the Umm Lulu Field

contributing a total of 105,000 barrels

per day to this goal.

Nasr and Satah Al Razboot (SARB),

two other offshore fields operated by

ADMA-OPCO, are being developed

along with Umm Lulu, as part of this

plan. It is planning to increase its

daily crude oil production capacity

from the current 600,000 barrels to

approximately one million barrels by

2020.

MAJOR CONTRACTINGIn November last year, ADMA-OPCO

signed four important contracts worth

an estimated US$3.5 billion for the two

offshore fields, helping to boost the

output from its Nasr field offshore Abu

Dhabi. The four contracts were dealt

to NPCC, Hyundai Heavy Industries

(HHI) and Technip.

The Umm Lulu field is being

developed in two phases, with the first

phase including the construction of

seven wellhead towers, the laying of

110 km of infield pipelines, a 32-km

excess gas pipeline and a 70-km oil

export line. By the end of 2015 it will

achieve 22,000 barrels per day and on

its completion in 2018, up to 105,000

barrels of crude oil a day.

Totalling $3 billion, three contracts

went to National Petroleum

Construction Co. (NPCC), Hyundai

Heavy Industries (HHI), and Technip,

who own a 35% share, for the second

phase of the project, known as the

Nasr full field development project.

With Technip responsible for

the engineering aspect of the

development, valued at $206 million,

NPCC will carry out the fabrication and

installation of processing facilities at

the site with a value of $792 million.

A fourth contract worth an

estimated $494 million went to NPCC

for work at the Umm Shaif super

complex.

The Umm Shaif project will include

the transfer of an additional 200

MMscfd of gas from Umm Shaif to

Habshan to ensure the available

gas streams are fully utilised to help

increase onshore gas supply. The

PAGE 41

ABU DHABI MARINE OPERATING COMPANY

PAGE 42

additional gas supply by the middle of

2016 will then be made available by

production from new Khuff wells and

debottlenecking.

Following the initial phase, Phase

II of the development involves the

installation of six new wellhead towers

and the construction of a super

complex. This will include six bridge-

linked platforms, with a gas treatment

platform, a separation platform,

accommodation platform and power

supply through subsea cables

from facilities at Das Island and the

construction of a power distribution

platform at Umm Shaif.

The six platforms, associated

jackets, flares and bridges will weigh

more than 66,000 tons with the

platforms installed using the float-over

method which means a major portion

of hook-up and pre-commissioning

work needs to be completed onshore

before it is loaded out into the sea.

This development phase will

also include 90km of infield subsea

pipelines, 125km of main oil lines and

100km of fibre-optic cables.

The production facilities for the

development were fabricated in

Sohar, Oman and were successfully

transported to the Umm Lulu Field in

early 2014 for installation.

A noteworthy development, the

initial phase of this development marks

a milestone for ADMA-OPCO with

the oil to be processed by another

operator. The fluid output of the field

will be sent via an export pipeline to

the Zirku Island for processing and

Umm Lulu will be tied into ADMA-

OPCO’s Satah Al Razboot (SARB)

offshore oil field for processing the

output at the Zirku Island facilities.

COMPLETION DATEOn its completion in 2018, the Full

Field Development will include six

new wellhead towers to host the 78

new wells, sub-sea pipelines carrying

oil, water and gas, an offshore

super-complex consisting of multiple

processing platforms and central

control by data transfer through Fibre

Optic cables relating to the latest

smart fields technology.

Awarded on Lump Sum basis under

two separate contracts for Phase I

to NPCC, and Phase II to the Joint

Venture of both NPCC and Technip.

These are currently under various

phases of design and construction

with plans to be installed progressively

from 2015 into early 2018.

“These key projects come under the

guidance of Abu Dhabi Government

and the support of the SPC and

the Shareholders,” said Ali Rashid

Al-Jarwan, CEO of ADMA-OPCO in a

statement, emphasising that the entire

project is in line with ADNOC’s plans to

ensure sustained oil production, while

maintaining highest HSE standards.

“We are proud of our strategic

and long standing partnership with

NPCC, Hyundai and Technip and hope

that the project would be completed

as per the set schedule and quality

standards.

“As part of our commitment to

building the future of Abu Dhabi and

UAE nationals we are investing in

the advancement of the future oil

and gas leadership by implementing

a comprehensive, well-structured

career development programme for

young UAE nationals as part of the EPC

ABU DHABI MARINE OPERATING COMPANY

PAGE 44

contracts for the new oil fields where

the selected candidates will be assigned

to the EPC contactors’ premises and

participate within the projects’ task

force,” Mr Al-Jarwan stated.

EOR AGREEMENTIn October last year, ADMA-OPCO

cemented its longstanding relationship

with BP, signing an agreement to develop

new and innovative technology for

Enhanced Oil Recovery (EOR).

EOR refers to the techniques used for

increasing the amount of crude oil that can

be extracted from an oil field. Methods for

enhanced oil recovery include hydraulic

fracturing, steam flood and water flood

injection. Using these methods means

that between 30-60% of the reservoir’s

original oil can be extracted compared to

just 20-40% when using more secondary

recovery methods.

This agreement will see BP support

ADMA-OPCO in carrying out both

laboratory and field tests to evaluate

Carbonate Ionic Design EOR potential in

the existing company fields.

In a statement, Mr Al-Jarwan praised

the continued collaboration and deeply-

rooted partnership between ADMA-

OPCO and BP: “We are pleased to

partner with our Shareholder, BP, in this

important programme. EOR technologies

will play a key role to meet the energy

demand in Abu Dhabi in the years to

come and we, at ADMA-OPCO, have an

aspiration to reach an ultimate recovery

factor of 70% for our fields.”

The Carbonate Ionic Design EOR

study technology is similar to BP’s

innovative LoSal® reduced salinity water-

flooding technology. In total, more than

45 core-flood tests were performed in

validating the LoSal EOR effect, before

field trials began in Alaska.

The technology has now been

deployed on the Clair Ridge project in

the North Sea. BP was awarded the

2014 Offshore Technology Conference

Distinguished Achievement Award for the

Clair Ridge LoSal EOR project, helping to

recognise the company’s specialist EOR

technologies.

Vice President for EOR Technology,

John Peak said: “This was a valuable

opportunity to deepen ADMA-

OPCO’s understanding of BP’s EOR

technologies, and to demonstrate close

collaboration between BP’s Upstream

and Downstream segments. Projects like

the Carbonate Ionic Design EOR help

demonstrate BP’s technology, capability,

and the value we can provide to our

partners.”

With such a busy and successful

year for ADMA-OPCO, Total World

Energy looks forward to following the

progress of both oil fields and upcoming

developments in the future

PME Group of Companies At the heart of the energy industry in Abu Dhabi, PME Group has five distinct subsidiaries, each with their own industry-specific expertise, catering to worldwide organizations. From chemical cleaning and specialist bolting to appliance trading and solar panelling to upstream activities, drilling and related industries, PME Group has the capacity to provide both single services and turnkey solutions to all its

clients through its leadership, vision and constant commitment to quality.

PME Group has established itself not only as a tried, tested and trusted provider of products and services, but also as a driver of new initiatives and innovation.

Since it was established, PME Group has become instrumental in supporting the oil and gas, petrochemical and utilities industries with essential products and services. Through its engineering products and engineering services divisions, PME Group provides all the essential support for turnkey solutions, maximizing efficiency, minimizing costs and creating opportunities. This is the corner stone of PME Group.

http://www.pme-group.ae

The five distinct subsidiaries are:

Our mission is to provide quality services through techni-cal expertise and highly skilled technicians and to supply

high technology products to suit our clients’ needs.

At the heart of the energy industry in Abu Dhabi, PME Group has five distinct subsidiaries, each with their own industry-specific expertise, catering to worldwide organisations.

PETRO MIDDLE EAST Petro Middle East supplies equipment and high quality services to the oil and gas offshore and onshore petrochemical and utilities industries within the UAE and other Gulf states.Petro Middle East offers a wide range of electrical, mechanical, instrumentation and process equipment.ISO Certified for 9001:2008www.pme.ae

RRC ME – Rohr Rein Chemie (Middle East) LLCAn industry leading organisation providing both pre-commissioning and maintenance cleaning in the power generation, steel plant, chemical and petrochemical industries. RRC ME specialities include: Jet A1 fuel flushing services, industrial chemical cleaning, media filtration, lube and hydraulic oil flushing and filtration, engineered air/steam blowing, aqua milling, pipeline pressure testing, HP water washing, oxygen service cleaning, tank cleaning and many more.TUV ISO Certified for 9001:2008, OHSAS 18001:2007 and ISO 14001:2004www.rrcmellc.ae

Tss4U Middle East Tss4U is specialised in customised off-grid stand-alone solar power systems for industrial applications.Services include: Design, engineering, assembly, FAT, supply, installation, supervision, SAT, commissioning, after sales service. Applications include: Well head control panels, cathodic protection systems, chemical injection systems, SCADA, RTU, offshore platforms etc. www.tss4ume.ae

PRESSBOLT Middle East Pressbolt ME produces standard and special bolting, together with unique pieces manufactured according to customers’ specific needs.Products include: Stud bolts, nuts, hex bolts, screws, anchor bolts and many other special purpose fasteners where precision and quality are the key elements. Focussed on the oil, gas, chemical, petrochemical, construction and naval industries, Pressbolt ME manufacturing and production policies provide flexibility and a fast response to customer demand. TUV ISO Certified for 9001:2008 and OSHAS 18001:2007www.pressboltme.ae

PME Oil & Gas Energy Solutions (OGES)PME OGES is highly specialised in providing best services of innovative technologies for upstream activities, drilling and related industries for onshore/offshore operations in the Oil & Gas sectors.

OGES main products and services:

• Advanced loss circulation products/chemicals• Drilling instrumentation & control systems• Auto Driller (Fully Automated)• Specialized Oilfield Biocide (Metastable Hypochlorous Acid – HOCI)• Enhanced Oil Recovery (EOR)

PME Group of CompaniesSultan Tower, 15th Floor, Suite 1501, Fatima Bint Mubarak Street, P.O. Box: 802, Abu Dhabi, UAETel: +971 2 621 2140 | Fax: +971 2 633 3422 | Email: [email protected] | www.pme-group.ae

Nestled within the picturesque countryside of Northwich in Cheshire is a rather excit ing development project. The salt cavern storage faci l i ty, a £500m gas storage project, on complet ion wi l l be the largest onshore faci l i ty of i ts type in the UK. With a total storage

capacity of 400 mi l l ion cubic meters (mcm) of natural gas, i t wi l l have withdrawal rates of up to 30mm³/d.

Storengy UK, a subsidiary of GDF SUEZ, is execut ing the Stublach project which is the f i rst project for Storengy in the UK.

Gas storage is pr imari ly used to meet var iat ions in demand for, and supply of, gas. During per iods of low demand, gas is in jected into storage and withdrawn during per iods of peak demand. The most important type of gas storage is in underground

PAGE 46

The £500m Stublach Project

Editorial: Harriet Pattison

Total World Energy speaks to Storengy UK Managing Director, Charlotte Roule, to discuss the progress of the Stublach Project located in Northwich, Cheshire, UK. With the drilling of the first caverns beginning in April 2008 and operations commencing in September 2014, the natural gas storage project will eventually have a total storage capacity of 400 million cubic meters when it is fully operational in 2020.

reservoirs of which there are three pr imary types: depleted gas f ie lds - which are the most common and tradit ional ly hold the greatest volumes, aquifers and salt caverns.

Al l three types have indiv idual physical and economic character ist ics which in turn govern the suitabi l i ty of a part icular type of storage for a given appl icat ion.

The Stublach site uses salt caverns. Although a less common option global ly, these are wel l-suited to natural gas storage as the in jected natural gas is unable to escape from the storage faci l i ty unless i t is del iberately extracted. The process of solut ion mining involves the pumping of fresh water down a borehole into the salt layer. Where the salt is dissolved, a void is created where the water, now sal ine,

is pumped back up to the surface. Al l the sal ine is used in the chemical industry in Cheshire. This process is repeated unt i l the desired size of the cavern is achieved.

On complet ion, these salt caverns offer an underground natural gas storage vessel with very high del iverabi l i ty, much higher than either the aquifer or depleted reservoir opt ions. This al lows the stored gas to be withdrawn and replenished quickly, which is especial ly useful dur ing short per iods of unexpected demand surges.

THE STUBLACH PROJECTTotal World Energy speaks to Storengy UK Managing Director, Charlotte Roule who explains Storengy now has 22 storage sites current ly in operat ion across France, Germany

and now the UK, with 1,000 employees and 12.5 bcm storage capacity. Joining Storengy UK in January 2013, Roule previously worked for Storengy in France on Audit and Performance based act iv i t ies.

This specif ic Cheshire locat ion was chosen due to “a quest ion of geology”, Roule explains. “When you’re deal ing with underground gas storage there are only certain areas where you can do that. Typical ly for salt cavern storage, you need a layer of salt . At Stublach the salt is not as deep as we are used to in France, but i t works wel l . The site is also wel l located for access into the Nat ional Transmission Grid.”

The Stublach project, pr ivately funded by the GDF SUEZ group, was agreed in 2007 with construct ion work

PAGE 47

STORENGY UK

PAGE 48

beginning the fol lowing year. I t has been commercial ly operat ional s ince 2014. Gas storage is a key part of the energy transit ion envisaged by GDF SUEZ as a group, which means ensur ing that the move to cleaner forms of generat ion is supported by cont inued provis ion of transit ion fuels l ike natural gas.

“So regarding construct ion, the f i rst stage was about dr i l l ing the caverns and bui lding the surface faci l i t ies that would al low us to operate the caverns - and doing this in a way that ensured safety for al l . I t went wel l , we had to face some diff icult weather condit ions which is a tradit ional issue on these kind of projects. We announced to the market we would be ready

in summer 2014 and that’s what we did,” Roule explains.

PROTECTING PEOPLE AND THE ENVIRONMENTRoule explains the project involved securing the consent of the local author i ty and demonstrat ing that safety comes f i rst in al l act iv i t ies: “As we created everything, we needed to develop systems and process which would ensure safe operat ions. We were also keen to work with our neighbours, to ensure our project was accepted which was a pr ior i ty for Storengy. We set up a local committee to make sure that every quest ion could be addressed and managed, part icular ly for the very f i rst stage when we dr i l led the caverns.

“ I f you come to the site, there are f ie lds everywhere, i t is very beaut i fu l and you can see the storage site but i t is mainly underground. Of course, when we were working in the f ie lds i t caused some disrupt ion to the local farmers but we worked closely with them to minimise the extent of our works. I t was important to have local acceptance and the understanding of our neighbours. Regarding the environment, there are some protected species in the area so we wanted to take care of those - even going further than normal obl igat ions.

“There weren’t many concerns in the neighbourhood. The Health and Safety Execut ive also spent t ime with us reviewing our design and safety

“If you come to the site, there are fields everywhere, it is very beautiful and you can see the storage site but it is mainly underground. Of course, when we were working in the fields it caused some disruption to the local farmers but we worked closely with them to minimise the extent of our works”

procedures, just making sure we were doing the r ight thing and had ident i f ied al l the r isks and to ensure we managed them. Salt caverns are safe and today, there are no concerns.”

DELIVERING TO THE MARKETWith operat ion at Stublach now underway, Roule explains the next step: “We are del iver ing three further caverns r ight now so they are ready. So we are, by the start of 2015, at f ive caverns, which is one hundred mi l l ion cubic meters of capacity. By 2020, our plan is to go on creat ing the shape and convert ing the remaining caverns.

“General ly, we create the salt caverns in partnership

with the chemical industry which we did here. The chemical industry have a need for this br ine, so i t can be used for chlor ine, soda or even table salt . ” Roule explains.

With surpr is ingly l i t t le capacity avai lable on the UK market, Roule explains that i f you compare the year ly volume of gas consumed to the volume in underground gas storage, the average for Europe stands at 22% compared to just 6% for the UK, so the need in the UK is evident.

“We propose our capacity on the market, which is quite unusual for faci l i t ies l ike ours,” Roule adds.

“We are in quite a congested area from a Nat ional Grid

STORENGY UK

PAGE 49

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“We are delivering three further caverns right now so they are ready. So we are, by the start of 2015, at five caverns, which is one hundred million cubic meters of capacity. By 2020, our plan is to go on creating the shape and converting the remaining caverns”

PAGE 50

point of v iew. This is a posit ive point though, especial ly for publ ic investment, as there is no need i f we provide storage for Nat ional Grid to invest more, so just the fact of being there can help. Further to the development of the second group of 10 caverns, we wi l l have to add some surface faci l i t ies in order to maintain the performance we want for the whole si te.”

A WEALTH OF EXPERIENCEWith a project of such magnitude and importance, Roule explains the f i rst step was to have geothermal experts in house in order to access the interest of the project to establ ish whether i t is worth invest ing and also descr ibes i t as a good way to demonstrate dist inct ion from other potent ia l investors.

“After that, you need some other project ski l ls, start ing

“When Stublach is finished, what we do is we remain fully involved in the area and we aim at developing innovation in the wider sense with local partners”

with health and safety and then including a range of skil ls from dril l ing to thermal dynamics,” Roule adds. “On the project, we had to build everything, so you wil l f ind people dealing with concrete, digging and having the holes closed. So it’s really about geoscience first of all, thermal dynamics and then electrical and mechanical engineering.

“We took a lot of experience from our operations in France and Germany. We used expertise there in helping us to understand the underground and surface facil it ies and the way to maximise the safe performance of the site. The commissioning and start-up activities also require specialist skil ls.”

Looking to the future and much of Storengy UK’s energy is focused on the aim of Stublach having 20 caverns by 2020 but Roule explains there are definitely more exciting plans in the pipeline: “When Stublach is finished, what we do is we remain fully involved in the area and we aim at developing innovation in the wider sense with local partners.

“We are currently discussing with some university partners. It’s only the beginning but the idea is to take the benefits of this experience and see what we could do further. That’s the idea,” Roule concludes

STORENGY UK

PAGE 51

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“So it’s really about

geoscience first of all,

thermal dynamics and

then electrical and

mechanical engineering”

PAGE 52

An advocate for excellence in QatarEditorial: Rosie DeWinter

With a vision to become an advocate for excellence and a world class drilling services provider, Gulf Drilling International (GDI) has become a true visionary for exponential growth since its inception in 2004. With an increasingly impressive rig fleet, GDI has recently signed a number of contracts with Qatar Petroleum, securing a busy and no doubt successful schedule for the next five years…

Over a decade ago, Gulf Drilling

International Ltd (GDI), a subsidiary

of Gulf International Services (GIS)

the largest oilfield services company

in Qatar, was established in the

industry as the first onshore and

offshore oil and gas drilling company

in Qatar. Initially, it was formed as

a result of a joint venture between

Japan Drilling Co., Ltd (JDC) with

40% share and Qatar Petroleum

(QP), Qatar’s national oil corporation

with 60%.

In 2007, Qatar Petroleum

acquired a further 25% of JDC

shares, bringing its total share in

GDI to 70%. However, in February

the following year, these shares

were transferred to Gulf International

Services, which in May 2008,

became a public shareholding

company.

AN IMPRESSIVE FLEETNow a key contractor of choice

in Qatar, GDI is recognised as a

growth-orientated company which

has seen exponential development

in the ten years since its inception.

With an ever increasing workforce

which has increased from

100 employees to 1,600, the

company’s rig fleet, impressively,

now stands at 12 rigs.

Today, GDI’s fleet consists of six

land rigs and six offshore jack-

up rigs but there are plans in the

pipeline to further increase this to

14 drilling rigs in 2015. This new

fleet formation will include eight

offshore jack-up rigs, six land rigs,

one accommodation jack-up rig

and two lift boats.

It is clear then that GDI are

focused and intent on becoming

a key competitor in the industry,

with aspirations to become a

world class drilling service provider

introducing safe, efficient and

innovative drilling services.

GDI started operations by

working for its single client Qatar

Petroleum and now has widened

its portfolio to global industry

leaders including Shell, Maersk Oil,

Occidental, RasGas and Dolphin

Energy.

In September last year, GDI

officially signed four new contracts

and four contract extensions with

Qatar Petroleum for the provision

of drilling rig services, each having

a term of five years.

This includes the provision of

two new offshore drilling rigs,

‘Dukhan’ and ‘Halul’ and two

new land rigs GDI-7 and GDI-

8. The contract extensions with

Qatar Petroleum also allows the

continuation of services performed

by four land rigs, GDI-1, GDI-2,

GDI-3 and GDI-4.

THE DUKHAN LIFTBOATThe 5-year QR1.28 billion contract

from Qatar Petroleum to provide

offshore drilling and rig services,

includes the construction of the

jack-up rig, Dukhan.

Dukhan underwent its final

commissioning and testing at

NKOM Shipyard (Nakilat-Keppel

Offshore & Marine Ltd), where

various third party equipment was

installed and drill pipe loaded onto

it to ensure specifications were

met and Qatar Petroleum’s final

acceptance was achieved.

GULF DRILLING INTERNATIONAL

PAGE 53

“I am pleased to see this rig sail out safely to its first well location in Qatar ahead of schedule. This marks the 5th state of the art cyber rig of GDI’s fleet and will serve to further enhance our operational capabilities while lowering the average age of our rigs”

PAGE 54

GULF DRILLING INTERNATIONAL

PAGE 55

These strict specifications were

met and Dukhan was accepted

by Qatar Petroleum, delivered

from the Keppel FELS Shipyard

in Singapore in August last year

before being dry towed to Qatar, it

was nine days ahead of schedule,

on budget with a perfect safety

record.

Mr. Ibrahim J. Al Othman, Chief

Executive Officer at GDI, said in a

statement: “I am pleased to see

this rig sail out safely to its first

well location in Qatar ahead of

schedule. This marks the 5th state

of the art cyber rig of GDI’s fleet

and will serve to further enhance

our operational capabilities

while lowering the average

age of our rigs. The inspection

and acceptance process went

very smoothly, allowing drilling

services to commence early than

expected. I want to thank QP

for their excellent support and

cooperation, which made the

early start of drilling operations

possible.”

Built to Keppel’s proprietary

KFELS B Class design, the

high specification rig included

numerous custom built features,

including a 15,000 PSI choke

system for well control, allowing

it to drill wells through 30,000ft

with a cantilever that can skid out

75ft from the edge of the hull to

drill wells, offline stand building

and 7,500 PSI mud pumps. These

features allow it to work anywhere

in Qatar and can accommodate

up to 150 people.

Dukhan is the fourth jack-up rig

to be delivered to GDI by Keppel,

following Al Khor, Al Zubarah and

Les-hat.

Wong Kok Seng, Managing

Director of Keppel Offshore

& Marine and Keppel FELS

explained: “We are pleased to

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“The inspection and acceptance process went very smoothly, allowing drilling services to commence early than expected. I want to thank QP for their excellent support and cooperation, which made the early start of drilling operations possible”

PAGE 56

© Shell

deliver another major project to

GDI early, on budget and to their

highest satisfaction. It is a result

of the strong partnership we have

built with GDI over the years

on a variety of projects. Repeat

customers are a testament to the

quality of Keppel O&M’s products

and services as well as the

effectiveness of our proprietary

designs. I am confident that

“Dukhan” will be just as

successful for GDI as the three

rigs we have delivered to them

since 2006.

“In addition, our shipyard

in Qatar, Nakilat-Keppel O&M

(N-KOM), is also supporting GDI

with the repair and maintenance

of their rig fleet. N-KOM has

recently secured a contract

to build a customised liftboat

for GDI. We look forward to

supporting GDI as they expand

their offshore fleet and presence

in the Middle East,” Mr Wong Kok

Seng added.

BUILDING SOLID RELATIONSHIPSFollowing the successful delivery

of the Dukhan, GDI has signed

a further contract with Qatar

Petroleum, valued at QR825 million,

for the delivery of a new jack-up

drilling rig, Halul, set to be delivered

in the first quarter of 2016. Halul

is the fifth KFELS B Class rig to be

delivered, helping to both grow and

modernise the GDI’s fleet with the

intention of reducing its average

age whilst maintaining technical

capabilities.

Of the new contract, Mr. Al

Othman said in a statement: “GDI

is pleased to be signing a contract

with Keppel FELS once again for

this new requirement. We have built

a solid relationship with Keppel

FELS, who have a reputation for

reliability and dependability. The

majority of our rigs are of the

newer, high spec variety that have

been customized to meet the needs

of our clients. We make it a point

to work closely with our clients in

order to satisfy their requirements

in a cost effective manner.”

With accommodation facilities for

150 people, a cantilever outreach

GULF DRILLING INTERNATIONAL

PAGE 57

of 70ft and a drilling depth of

30,000ft, Halul will be enabled by

an off-line stand building and will

be delivered equipped with multiple

features, equipment and facilities,

meeting the high standards GDI

recently set for the delivery of

Dukhan.

“We are pleased to have been

chosen by GDI to build another

benchmark jackup rig for them,”

explained Mr Wong Kok Seng. “The

KFELS B Class has established

itself as a reliable high specification

jack-up rig for the Middle East with

more than 10 such rigs successfully

operating there.

“In addition to providing

newbuild jackups, our shipyard

in Qatar, Nakilat-Keppel O&M,

is also supporting GDI with the

construction of a liftboat now

in progress and the repair and

maintenance of their rig fleet. Our

strong partnership has been built

on a number of successful projects

that have been delivered to them

over the years and we look forward

to continuing our support of GDI as

they grow in the Middle East,” he

added.

Looking to the future then

and GDI is looking to continually

focus on its core values to work

safely, efficiently and to constantly

improve performance, helping to

add value to forthcoming projects.

With an authorised and issued

share capital of QR739.6 million,

the company plans to further

enhance its share of the offshore

market to 50% in 2015 with the

prospect of acquiring more rigs

over the coming years

“The majority of our rigs are of the newer, high spec variety that have been customized to meet the needs of our clients. We make it a point to work closely with our clients in order to satisfy their requirements in a cost effective manner”

Based in Stavanger, Norway, Bi l f inger Industr ier has a long and successful history which now spans across 100 years, evolv ing to i ts current form from a ser ies of mergers and acquisi t ions and expansion of market share. Bi l f inger Industr ier is the largest of

several businesses within the oi l and gas div is ion of Bi l f inger SE, a major internat ional engineer ing and services company.

Fol lowing a rebranding to BIS in the ear ly part of 2007, i t then re-branded to Bi l f inger Industr ier in February

last year. Start ing off in the insulat ion space, the company has ear ly expanded into surface protect ion, scaffolding and related services over the years.

Total World Energy speaks to Jürgen Liedl, Commercial Director at Bi l f inger Industr ier

PAGE 58

Increasing performance in the ISP marketEditorial: Rosie DeWinter

With a new range of Passive Fire Protection that will significantly help to increase performance and efficiency in the ISP market, Bilfinger Industrier Norge, first founded over a century ago, is further improving its position on the offshore and onshore oil & gas market.

and Tor Minsaas, Director Technology & Support Systems, who explain the core business of the company today is ISP ( Insulat ing, Scaffolding and Paint ing services) and rope access, with an increasing focus on related products l ike passive f i re protect ion or habitats.

I ts product range includes prefabr icated solut ions for f i re, acoust ic, cryogenic and thermal protect ion, which have been tested and developed to meet the NORSOK requirements. The company holds ISO:9001, ISO:140001 and OHSAS 18001 cert i f icat ion.

“We have increased our focus on developing new

products in the last few years,” explains Minsaas. “We have had our range of products for a number of years but now we have an increasing focus on creat ing new products that add increasing value to our customers.”

PRODUCT INNOVATIONOne of the most recent developments is a special product aimed at the insulat ing market, the Lambda Cryo Box. This is a prefabr icated cryogenic

PAGE 59

BILFINGER INDUSTRIER NORGE

PAGE 60

insulat ion system which has been designed and tested to insulate valves with operat ing temperatures down to -163°C. The solut ion can be removed and reinstal led mult iple t imes, result ing in s igni f icant cost savings.

The instal lat ion of the Lambda Cryo Box requires minimal heavy work which helps to result in the involvement of fewer personnel, so a more eff ic ient instal lat ion and a safer working environment is met.

“Over the last couple of

years we have introduced and worked with a couple of new mater ia ls which are fair ly strong. Our main focus of act iv i ty in our new product range is a polymer based mater ia l cal led Favuseal,” Minsaas explains.

Favusea l i s ext remely s l im bu i ld ing and is ab le to wi thstand the ext reme condi t ions that our customers demand in today’s market . “ Improv ing the per formance in a je t f i re , ” Favusea l generates ext remely low smoke deve lopment

“Our staff have got trade certificates in individual trades such as insulation, surface protection or scaffolding”

when i t reacts . Equa l l y as important , i t i s much eas ier to t ranspor t , eas ier to insta l l and prov ides bet ter insu la t ion wh i ls t be ing a much more env i ronmenta l l y f r iend ly opt ion.

The techno logy that has been used in deve lop ing Favusea l a lso he lps to protect workers on s i te as i t i s ha logen- f ree and does not generate cor ros ive or tox ic gases in the event o f a f i re .

THE NEW HABITAT SYSTEMIn addi t ion to the introduct ion of new and innovat ive mater ia ls , L iedl and Minsaas expla in that Bi l f inger Industr ier has a lso announced a new pressur ized

habi tat system; which is portable, f lex ib le and more cost effect ive than prev ious solut ions and is HSE eff ic ient at the same t ime.

“We have taken ex ist ing technology and improved i t so the new habi tat is more f lex ib le and easier to handle” expla ins Minsaas.

The system is s imple and stra ight forward. As an example, the stat ionary contro l un i t can be moved outs ide the habi tat tent and therefore habi tat manning can be halved. The solut ion comes with batter ies that are powerfu l enough to run a 24 vol t contro l un i t , which offers s igni f icant ly h igher f lex ib i l i ty in operat ions compared to a

BILFINGER INDUSTRIER

PAGE 61

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PAGE 62

typ ica l 230 Vol t system. Also, the contro l un i t of the new habi tat system weigh only 20 kg and are easy to t ransport and insta l l .

THE BEST PRODUCTS?With so many unique mater ia ls in product ion, how do Bi l f inger Industr ier ensure i t remains amongst the top industry leaders in an increasingly compet i t ive industry? “We bel ieve our products are the best – because they are!” expla ins Minsaas. “We have superb documentat ion, for example on the Passive F i re Protect ion, they are extremely wel l tested. They’re tested with dra in p lugs and inspect ion hatches and the documentat ion covers a range

of sur face area and mass, as wel l as a broad range of temperatures of the object .”

Despi te compet i t ive markets, L iedl expla ins: “We bel ieve we’ve got great products and a great serv ice that we del iver. The combined offer ing of these two plus our strong market posi t ion g ive us an excel lent basis for successfu l fur ther development.”

DEDICATED MANUFACTURINGIn 2011, Bi l f inger Industr ier opened i ts exist ing head off ice in Stavanger and consol idated al l the pre-fabr icat ion works to this locat ion. “We have a very advanced prefabr icat ion workshop and we cont inuously invest in machinery and

“We have an agreement with Statoil on a number of installations in the Norwegian sector of the North Sea as well as the big Kalundborg refinery in Denmark”

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equipment to ensure eff ic iency and qual i ty of our product ion,” says Liedl.

“This summer we then moved out what we cal l the f lexible product to an addit ional workshop in Bergen. This gives us addit ional capacity and room to grow and develop the business,” Minsaas explains.

With big frame agreements and ongoing instal lat ion and maintenance works, Liedl explains the bulk of the company’s business st i l l l ies with typical ISP services for key industry customers including Statoi l and BP.

“We have an agreement with Statoi l on a number of instal lat ions in the Norwegian sector of the North Sea as wel l as the big Kalundborg ref inery in Denmark. They’re a major customer and we have a very close and professional relat ionship with them.”

SKILLED STAFF With high expectations from its customers, it is vital that Bi l f inger Industrier’s employees maintain the highest ski l lset. The company currently has 1,700 ski l led employees working across Norway.

“Our staff have got trade certi f icates in individual trades such as insulation, surface protection and scaffolding primari ly,” Liedl explains. “We have well over 1,000 employees with trade certi f icates now and we are providing training to many people every year, both for our employees and external candidates too. These ski l ls are very important for the ways in which we operate.”

MAINTAINING ITS GLOBAL REACHLooking to the future, Bi l f inger Industr ier wi l l concentrate on i ts large market share and expand further into other oi l regions.

“We aim to consol idate where we are, retain our large market share in our core markets and successful ly grow our product portfol io further to meet the demands from the market and the needs of our customers.” explains Liedl.

“We are looking to push our products on a global scale,” Minsaas adds. “We see global potent ia l for our product range and customers in al l regions of the oi l & gas industry are giv ing us excel lent feedback

on i ts performance.” “We are part of a global

business group with about 1 bi l l ion Euro in revenue in the oi l & gas market,” explains Liedl. “We work together with our s ister companies to expand our portfol io in other relevant oi l & gas industr ies l ike the UK, the Middle East or South East Asia.”

With a century old history behind i t and much to focus on over the coming years, i t seems Bi l f inger Industr ier knows exact ly what i t is doing.

“Not only are we able to take on large projects and large customers but our staff and our del ivery ski l ls def in i te ly remain one of our key strengths,” concludes Liedl

BILFINGER INDUSTRIER

PAGE 63

Mama’s BoysBecause men listen to their mothers, Bilfinger Industrier is hanging life-size portraits of employee’s mothers on the walls at workplaces in Norway.In dozens of workshops, factories, refineries, industrial buildings and offshore installations, the portraits look down benevolently from their gilded frames.The portraits are part of a health and safety campaign developed by Kirsti Gerhardsen to ensure workers take their work seriously and pay attention. The accompanying brochures say it all: “Think carefully about everything that could happen. Love, Mom.”

The first company to discover oil

in the Arabian Peninsula in 1932,

Bapco started exporting in 1934 and

refining in 1936, and has spent the

intervening years helping to shape

the current Kingdom of Bahrain,

both through the generation of

wealth and through the developing

of the country’s manpower. It is

wholly owned by the Government

of Bahrain, and is engaged in the

many facets of the oil industry

comprising refining, distribution of

petroleum products and natural gas,

and sales and exports of crude oil

and refined products. The company

boasts a 264,000 barrel-a-day

refinery, alongside storage facilities

for more than 14 million barrels, while

a marketing terminal and a marine

terminal are essential for its refined

petroleum products, 95% of which

are exports.

A significant proportion of Bapco’s

exports are made widely throughout

the Middle East, India, the Far East,

South East Asia and Africa, while

PAGE 64

Expertly integrated oil and gas

Editorial: Tim Hands

Even now, almost 80 years after the company’s development, the Bahrain Petroleum Company is undertaking and exploring new initiatives in oil and gas field development, with new global markets continuing to open up and spark rapid advancement within the company.

its activities within the sector are

extensive. Through its exploration

work, far-reaching studies are

carried out to explore new offshore

oil and gas reserves and obtain

more accurate data on existing

reserves, while Bapco also refines

some 260,000 barrels of crude

daily. The company has more than

170 storage tanks at different sites,

exporting crude to world markets

and selling petroleum products both

locally and internationally. It also

supplies aviation fuel at the Bahrain

International Airport through the

Bahrain Aviation Fuelling Company

(BAFCO), and provides natural gas to

power plants and other industries in

Bahrain.

New technologies have vastly

improved performance and safety

in modern oil exploration, since its

beginnings in 1912 with the discovery

of Cushing Field in Oklahoma, USA.

While, fundamentally, the process

remains the same, with an energy

demand which continues to grow

exponentially, oil and gas exploration

and production today requires a

variety of economic, social, political

and environmental considerations.

Companies are charged with finding

and producing increasing quantities

of oil and gas, although achieving

this requires much more than

simply ramping up production from

traditional sources. Towards this end,

it has become necessary to adopt

new exploration and production

technologies, evolve environmental

laws and regulations that vary among

and within nations, and provide

adequate profitability.

Bapco’s refining division,

meanwhile, is responsible for the

entire hydrocarbon supply chain

which comprises the receipt,

storage, processing and refining

of crude as well as its storage,

blending, and shipment through the

Bapco Wharf.

BMPThe Bapco Modernisation Project

(BMP), in full swing this year,

has been developed with

several key objectives

in mind, perhaps

most pivotal of

which is a revised

configuration which

will allow for a

higher throughput,

improve the

product slate

and increase the

gross margin in

order to remain

competitive across

a range of prices and

market scenarios. There

is a heavy focus here too on

environmental compliance, ensuring

that all new units function according

to the relevant local environmental

regulations, while improving energy

efficiency and lowering the Energy

Intensity Index (EII) of the refinery.

Bapco’s Chairman, Adel Khalil Al

Moayyed, describes the rationale

behind the modernisation project

as such: “The objective of the BMP

is to develop an optimum refinery

configuration that will place Bapco

amongst the most competitive

refineries, as well as address

environmental and efficiency issues.

The initial front-end loading phase for

the BMP, corresponding to phase 1

of Bapco’s project development and

execution process – detailing the

business case, scope, framework

and viability – has been completed

in line with recommendations of a

number of specialised studies and

reviews.”

September of this year brought a

hugely significant chapter in these

development plans, with the signing

of a major plant upgrade deal, whose

work is to be carried out over the

next 16 months. This expansion aims

to raise Bapco’s refining capacity by

100,000 barrels per day, with the

project management, engineering

and construction firm Technip

Italy set to carry out the front-end

engineering and design, at a cost of

around $55 million.

Dr Peter Bartlett, Bapco Chief

Executive, told Gulf Daily News of

how the BMP comprises a group

of related projects managed in a

co-ordinated way to obtain maximum

benefits. “It follows a $1.2bn

Strategic Investment Programme,”

he described, “as a result of which

the refinery is now the first in the

Middle East with the capability to

produce nearly 100,000 bpd of Euro

V diesel and Group III lube oil base

stock.”

Adel Khalil Al Moayyed reinforced

just how central the Bapco

Modernisation Programme is to

the company’s thinking over the

coming years. “Over the next six to

eight years, our strategic focus for

the downstream business will be

entirely on the BMP. The BMP is in

fact a ‘programme’ which, in project

PAGE 65

BAPCO

continues on page 68..

PAGE 66

Delivery of Confidence and Certainty from our collective global Experience

Pascal Bateman, Comsip Al A’Ali Middle East Regional Executive Director: “We have been present in the Kingdom of Bahrain since 1971. Comsip as Part of Vinci Energies International Oil & Gas Group and Ahmed Mansoor Al A’ALI group, is now entering into 34 years of collaboration in Bahrain. These relationships are demonstrated by successful mobilization of large workforces, innovative local content participation, continuous improvement and significant safety milestones being achieved.”

Jean Michel Lang, Managing Director of Vinci Energies International Oil & Gas - major stakeholder of Comsip: “With the world wide group synergies, we are able to provide an extensive portfolio of expertise in the Services (Operations and Maintenance, Engineering and Inspection Maintenance, Commissioning and Flawless Startup, O&M Training with International standard), Projects (EPC Turnkey or specialized: Electrical, E&I, Utilities, ICSS, AF, HIPPS etc), Technical Assistance and some niche markets (analyzers, architecture and ergonomics).”

Promoting ‘Actemium’, our new brand, for integrated solutions focus for industrial business, our clients will have the benefits of a global and local approach with a broader offering in Process control and Automation, Electrical and Instrumentation, Mechanical and Piping and Process Utilities. Actemium offers an unequalled global range of expertise, services and references.

Pontius Hutapea, Country Manager and Comsip Al A’Ali Director: We have been active since 1971, starting with the LSFO project and in 2001 getting involved with Bapco’s Modernization of CDU and VDU. Then FCCU, Tank Farm, North process Control Building (Modernization of LSFO and FCCU Complexes) as well as LSDP, RGDP, LBOP and WWTPP. The STG project will begin with SRU Modification. We are proud to be part of Bapco History.

Al A’Ali

SAFETY IS OUR NUMBER ONE PRIORITY – EVERY-BODY SAFE – EVERY DAY”Our commitment is to ensure that the Bapco facility is a safe place to work. Safety drives our approach to projects, the way we work with each other and the way we interact with the communities in which we operate. There is no task so important or so urgent in our business, or our customer’s business, that it overrides the need to work safely.

OUR AMBITION IN 2015.

We are here to exceed expectations, to provide cost effec-

tive services and manage our health, safety, environment,

people and community. We offer relationships in a way that

other companies will have difficulty in delivering.

Modernization will not only cover new technology applied

but also the development of human resources. In 2015 we

will start to put in place new added value on the top of our

traditional expertise.

Such Services:

•Engineering of Inspection and maintenance that will drive optimization of operational expenditure.

•Training and Competence Development will include the competency management system that will drive workforces, making them fit for purpose and placement, ensuring the right people, at the right time, in the right place.

•Commissioning and start up, will include the solid preparation of operations, test procedures, up to sequence of startup and smooth handover to O&M staff.

Projects and Products

•Proven capability in engineering to optimize the shutdown time during revamping works by implementing “hot transfer methodology” under experienced engineers and project management team.

•Customized Analyzer and Design of Blastproof Control Room and some aspects of ergonomics design.

•Upgrading Blast proof building Central Control Room.

“Pressurized Electrical Control Room”

Comsip Al A’Ali, a company of wishes BAPCO a successful 2015

Analyzer Fabrication

PAGE 68

management terms, is a group

of related projects managed in a

coordinated way to obtain maximum

benefits. It is envisaged that the BMP

will be split into several individual

work packages or ‘projects’ for

better manageability, coordination

and ease of integration with the

existing refinery. The BMP is set to be

the single-largest capital investment

in the history of BAPCO as well as

that of the Kingdom of Bahrain.”

It is precisely the foundations

for growth which the company is

steadily putting in place which will

allow for the success of Bapco’s

most ambitious project to date, at an

estimated cost in excess of $5 billion.

STRONG PARTNERSHIPSChevron Lummus Global, a joint

venture between CB&I and Chevron,

announced in October its winning

of a significant Bapco refinery

contract in Bahrain, worth over $100

million. The scope of work includes

the licence of its LC-Fining and

Isocracking technologies, as well as

engineering design packages, for

the new residue hydrocracking and

vacuum gasoil hydrocracking units

for the BMP.

“Chevron Lummus Global

has provided hydroprocessing

technologies and catalysts for the

...continued from page 65.

production of clean transportation

fuels and high quality lubricant base

oils at this refinery for past projects,”

said Daniel McCarthy, President of

CB&I’s Technology operating group.

“The Bapco Modernisation

Programme will expand the Bapco

refinery capacity and introduce

further depth of conversion and

upgrading of heavy oil. The selection

by Bapco to be its key technology

provider underlines CB&I and

Chevron Lummus Global’s lead

position in heavy oil upgrading,” he

added.

Bapco’s commitment to

environmental concerns forms an

integral part of both the company’s

business and culture, among such

innovation and development. As part

of these ongoing efforts, whereby

it aims to support and implement

national initiatives in Bahrain, in

collaboration with the National

Oil & Gas Authority (NOGA), the

company has adopted its Solar

Energy Pilot Project initiative to

further the usage of clean energy

generation, through the application

of solar energy technologies. As well

as reducing national reliance on the

natural gas, the project contributes

to the establishment of renewed

energy industries as part of the

national economy in the near future,

in addition to creating significant

job opportunities and the providing

a new industry for the domestic

market. This pilot project aims to

generate five megawatt solar energy

units at Awali, the Refinery and

University of Bahrain (UoB), at a total

cost of US$ 25 million. The project

has been implemented as a part of

continued efforts by the National

Oil & Gas Authority (NOGA) to deal

with critical environment issues,

through reconsideration of resource

management and improved renewed

energy technologies. Success has

already been seen in developing

and generating power through solar

energy and smart grid applications

which enhance the reliability of

power distribution network, while the

project also contributes to enhancing

the efforts of sustainability and

environmental preservation, and aims

to ensure the transfer of knowledge,

research and advanced technologies.

ENVIRONMENTAL PROGRESSBapco has engaged itself in various

additional projects dedicated to

the protection of the environment.

Some of its success stories include

the 100-day Energy Blitz, which has

generated significant energy savings

over its titular period, as well as

the multi-million dollar Refinery Gas

Desulphurisation Project (RGDP). This

stands as one of the most intricate

and vital environmental compliance

projects ever undertaken by Bapco,

one which has successfully reduced

its sulphur dioxide emissions.

Embodying its emphasis on

environmental preoccupations,

Bapco’s Green School Award, in

association with the Ministry of

Education encourages secondary

school students to participate in

environmental conservation at this

formative and vital age.

Among Bapco’s more successful

initiatives is the Princess Sabeeka

Park in Awali, inaugurated in February

2010 by Her Royal Highness Princess

Sabeeka bint Ibrahim Al Khalifa

which serves as a notable addition

to Bapco’s cannon of environmental

initiatives and houses a number of

rare plant species.

The company’s Environment,

Health & Safety Week, the

culmination of which is a highly

successful Family Day, historically

attended by some 26,000 visitors,

is dedicated to encouraging

environmental protection in Bahrain.

Adel Khalil Al Moayyed described

how the project reflects the continued

commitment of the Kingdom in the

face of challenges around energy

security, climate change and

economic development, through

partnerships and global cooperation

towards finding long term economic

solutions.

“Bapco has confirmed once again

its serious commitment as a key

national establishment in supporting

such significant initiatives for the

future of the Kingdom through

the implementation of this leading

national project.”

Evidently this is an area of serious

preoccupation for Bapco, with its

substantial investments to protect

and nurture the environment playing

in perfect harmony with its culture of

development and innovation

“The objective of the BMP is to develop an optimum refinery configuration that will place Bapco amongst the most competitive refineries, as well as address environmental and efficiency issues”

BAPCO

PAGE 69

Operating from a pivotal location

in Europe, El ia is also a key

player in the energy market and

the interconnected electricity

system. Created as a result

of a legal unbundling in the

electricity market, in June 2001

El ia became an independent

l imited l iabi l i ty company, and

was appointed as the federal

transmission system operator

on 17 September 2002. El ia

today owns al l of Belgium’s 150

to 380 kV grid infrastructure,

alongside almost 94% of its

30 to 70 kV grid infrastructure,

with an essential part too in

the country’s economy, in

PAGE 70

Power in progressEditorial: Roland Douglas

As Belgium’s high-voltage transmission system operator, Elia operates more than 8,000 km of lines and underground cables throughout the country, ensuring the transmission of electricity from generators to distribution systems, through to the consumer.

© Elia System Operator

supplying power directly to

major companies connected to

the grid.

In addit ion to this vast

presence in the Belgian market,

El ia operates in Germany

too through its subsidiary

50Hertz Transmission GmbH.

The company has, over t ime,

taken it upon itself to set up

mult iple init iat ives aimed at

promoting the development of

an eff icient, transparent and

fair electr icity market for the

benefit of consumers. Its team

of over 1,100 professionals in

Belgium is committed not only to

deal ing with future chal lenges,

but also to handling the day-

to-day operation of a system

considered to be one of the

most complex and rel iable in

Europe.

It is a complex journey which

electricity takes on its way

from generators to consumers,

passing through an open market

involving numerous players.

The electricity generators are

the f irst parts of the chain, with

the current created by these

generators then injected into

the transmission system. Power

exchanges, which are platforms

used by market players to

anonymously negotiate same-

day or next-day purchases

and sales of electr icity, are a

means of providing an open

market and establishing a

transparent reference price

for market participants. Then,

arguably of most importance,

are the transmission system

operators. El ia is Belgium’s

only TSO, although with

the electricity market also

spanning across borders, and

the interconnections between

European transmission systems

al lowing countries to help each

other and enabling cross-border

energy exchanges, col laboration

between TSOs is clearly crucial.

Distr ibution system operators

are then tasked with rel iably

and eff iciently running medium

to low-voltage distr ibution

systems - transmitt ing electricity

to residential customers,

undertaking public l ighting,

among others – while regulators

must effectively pol ice an

PAGE 71

ELIA

© Elia System Operator

PAGE 72

energy market in which

many col lectives have a legal

monopoly. This can include

guaranteeing transparency

and competit iveness on the

energy market, checking that

the market operates in l ine

with public interest and overal l

energy policy, and defending

consumers’ interests. These

consumers are the end users,

and can be anyone from

individuals to major industrial

players. Industrial users are

often directly connected to

the high-voltage grid, whereas

individual users are connected to

the distr ibution system.

Pivotal to the continued

effective operation of the high-

voltage grid is a constant state

of evolution, where innovation

is ceaselessly applied to meet

the needs of consumers and

the market. As a high-voltage

system operator, El ia needs to

permanently ensure that the grid

is maintained and developed

according to the needs of

the market and the users.

Accommodating a growing

share of electr icity generated

by renewable energy sources

and strengthening European

interconnections are two of the

major chal lenges which El ia is

facing at present, and which it

is tackl ing through an extensive

series of development projects.

The Brabo project, for

example, which forms a large

part of work to upgrade the

Belgian electricity grid, is

necessary to safeguard the

energy supply to the whole

of Belgium, and, in particular

the Antwerp port area. A

principal aim of this project

is to increase import capacity

from the Netherlands, with work

already under way to instal l

an addit ional phase-shift ing

“As a high-voltage system operator, Elia needs to permanently ensure that the grid is maintained and developed according to the needs of the market and the users”

© Elia System Operator

ELIA

PAGE 73

Lindestraat 19BB-9240 Zele T+32(0)52 22 67 07F+32 (0)52 22 67 [email protected]

Westwood House Annie Med Lane South Cave East Yorkshire HU15 2HGT+44(0)7598 941 381 www.nettechuk.com

Fibre optic engineering, construction & maintenance

transformer in Zandvl iet on the

border with the Netherlands, and

to upgrade the existing 150-kV

l ine between Zandvl iet and Doel

to a 380-kV l ine. A new 380-kV

l ine wil l also be bui lt between

the high-voltage substations

at Zandvl iet and Li l lo, then,

from Liefkenshoek, the existing

150-kV connection wil l be

modernised and upgraded to

380 kV. The 380-kV network is

the central aspect of the high-

voltage grid and l inks up with the

European transmission system,

with an historical junction in

this grid situated near the

ever-economical ly expanding

region of the port of Antwerp.

The last major grid investments

in this region date back to the

1970s, however, which makes an

upgrade of the grid essential to

ensure the security of electr icity

supply, and to enable the

connection of new generation

units to help cope with r ising

demand for electr icity in this

burgeoning area.

Among El ia’s many grid

development plans, arguably

one of the most complex

and noteworthy is the Stevin

project, given the go-ahead in

September this year in Bruges.

The central aim of this project

is to upgrade the electricity

grid between Zomergem and

Zeebrugge, and addresses

several principal needs identif ied

by El ia. First ly, the expansion of

the 380 kV grid wil l signif icantly

improve the electricity supply

for the West Flanders region,

and enable further economic

development in the important

growth area around the port of

Zeebrugge, while the connection

of addit ional decentral ised

electricity generation in the

coastal region wil l also be

possible.

The nature of the overarching

of the Stevin project entai ls a

number of offshoots, themselves

al l signif icant standalone projects

and key to achieving its goals.

The group’s North Sea project

gives way to enabling offshore

wind power to be brought on

land, and then transmitted to the

domestic market. The intention

here is to develop a meshed

offshore grid to ensure that the

wind farms in the North Sea

are optimally integrated into

its onshore grid. Its creation

al lows these wind farms to

be connected to high-voltage

substations that wil l be instal led

on Alpha and Beta platforms,

which wil l , in turn, be connected

to the onshore grid – as opposed

to the current system, whereby

al l the different wind farms have

individual connections to the

onshore grid. This wil l give r ise

to a safer, more economical

and more environmental ly-

fr iendly offshore grid, and one

which is just as rel iable due to

the grid’s structure. In a similar

vein, the Horta 380 kV high-

voltage substation is to be

bui lt near Zomergem, and wil l

act as a junction between the

380 kV high-voltage Avelgem-

Rodenhuize-Mercator l ine and

the new 380 kV l ine leading

to the coast in Zeebrugge.

The substation wil l serve as

a switching station between

two existing high-voltage l ines,

and wil l make possible in the

medium term the expansion of

the 380 kV high-voltage network

from this junction to the port of

Zeebrugge.

The Stevin development

i tself seeks primari ly to render

possible the implementation

of the European and Belgian

energy and cl imate pol icy,

according to which Europe has

the goals of cutt ing energy

consumption by 20%, reducing

CO2 emissions by 20% and

generating 20% of total energy

from sustainable, renewable

sources by 2020. Belgium’s

own target is to generate 13%

of the energy it consumes from

renewable sources by this

deadl ine, and key to this is

employing offshore wind power.

Seven domain concessions

have previously been awarded

and instal lat ion of the f i rst

wind farms is under way, to

be fol lowed by the remainder

as soon as Stevin is in place.

Of course, this electr icity then

has to be brought onto land

and transmitted via the grid to

PAGE 74

“The Elia Life+ project proves that it is possible to achieve progressive transmission of electricity in line with biodiversity”

© Elia System Operator

distr ibution companies

and customers.

At present, the network on the

coast has voltage levels of up

to 150 kV, and l imited capacity,

saturated by the connection

of the f irst three offshore wind

farms. The expansive growth of

decentral ised generation l ike this

means that the coastal network

wil l have to be upgraded, and the

strong 380 kV backbone between

the coast and the inland parts

of the country, which Stevin wil l

provide, is therefore necessary,

with further expansions of the

150 kV grid no longer suff icient.

Work on the new 380-kV l ine

wil l start in the spring of 2015

and is to be completed by the

end of 2017, during which year

the laying

of the existing 150-kV l ine

underground wil l start in order

that the existing 150-kV l ines

can be broken up in 2018-2019.

The Elia Life+ project

proves that it is possible to

achieve such progressive

transmission of electricity in l ine

with biodiversity. A f ive-year

European project conducted

by Elia, the aim is to restore

the land beneath power l ines,

transforming it into more stable

natural environments which

wil l be easier and less costly

to maintain and far better for

biodiversity. Alongside this goal,

El ia hopes to

set an example for al l

other European transmission

system operators and establish

the f irst ecological network of

its kind along the EU’s 300,000

km of power l ines. This wil l

spell the end to a maintenance

policy for overhead l ines which

entai ls razing any vegetation

within a corridor of roughly

50 metres beneath them –

one which is both expensive

for Elia and does not exactly

encourage biodiversity – and

instead identify various ways of

managing these green corridors

and highlight their f inancial

benefit

ELIA

PAGE 75

© Elia System Operator

In October 2014, leading business

information portal, Visiongain,

released a report on the global

floating liquefied natural gas

(FLNG) market stating that this

important sub-division of the global

energy industry is now valued at

$11.845bn. It also stated that, in

a drive for cost efficiency, LNG

companies are increasingly looking

to offshore solutions because of

the huge costs involved in building

onshore LNG facilities.

When it comes to FLNG,

there are two areas of focus for

industry experts; the first, LNG

FPSOs (Liquefied Natural Gas

Floating Production Storage

and Offloading Vessels) and the

second, FSRUs (Floating Storage

and Regasification Units). But, of

course, the design and engineering

involved in the construction of such

a vessel is immense. Technical

work of the highest standard

is required to ensure efficiency,

productivity and, perhaps most

PAGE 76

“The company that deals with gas” Editorial: Roland Douglas

Providing overall process solutions and services to the offshore oil and gas industry, The KANFA Group, and KANFA Aragon, focus is delivering tailored solutions to the worldwide FPSO and FLNG market. KANFA Aragon managing director, Kristian Utkilen tells Total World Energy more about the growth of this innovative organisation and some of the key projects underway right now…

importantly, safety. This is why

you need a company with proven

experience, a company that has a

reputation for excellence (on FPSOs

and on platforms); this is why you

need a partner like KANFA Aragon.

Operating as an independent

process design and engineering

group that delivers overall process

solutions and services to the

offshore oil and gas industry,

the KANFA Group is made up of

several limited companies: KANFA

Aragon, KANFA Aragon Americas,

KANFA Ingenium Process, KANFA

Mator and KANFA AS.

Total World Energy speaks to

KANFA Aragon managing director,

Kristian Utkilen to find out more

about the unique set of services

on offer from this industry leading

organisation.

“We are focussed on FLNG

developments and we have

competition but there is no

company that is similar to us, which

combines the FLNG expertise with

extensive FPSO experience. We

have competition in the liquefaction

technology but there are perhaps

only three or four companies in the

world that can provide the solutions

that we can. We have competition

to our overall process topside

solutions but this comes from much

larger engineering companies and

then we deliver gas conditioning

systems where there are other

competitors. We are playing in

many fields but other companies do

not offer the range of services that

we do. While we are waiting for the

FLNG market to really take off, our

diversity allows us to be successful

in the standard offshore industry,

which again contributes to our

FLNG effort,” he says.

Currently, in the FLNG space,

there are no floating liquefaction

plants in operation although Exmar

and Pacific Rubiales, Petronas,

Golar and Shell all have vessels

under construction. In the FSRU

space, there are only 15 units

operational in Asia, Europe, the

Middle East, North America, South

America, and Southeast Asia and

most are owned by Excelerate

Energy, Golar LNG and Höegh LNG

although several other companies

have begun to enter the market.

When it comes to FLNG, industry

experts expect the first vessels

to be completed for operation

towards the end of 2015 – the main

project, which has received much

media attention, is the Shell FLNG

Prelude due to come online off the

west coast of Australia in 2017,

producing over three million tonnes

of LNG produced per annum.

KANFA ARAGON KANFA Aragon, part of the

KANFA Group, is a world leader

PAGE 77

KANFA ARAGON

PAGE 78

in floating LNG technology and

applications as well as more

traditional gas processes. Using

the patented Aragon Optimised

Dual Expander Cycle process,

the company is able to provide

complete process and topside

solutions for FLNG developments

globally. KANFA Aragon offers

EPC services for the offshore

upstream oil and gas industry with

a specific focus on gas and floating

LNG applications. The company

can provide complete topside

solutions, individual equipment

modules, project management

services, and technical consulting

with a particular focus on floating

applications - standard FPSOs and

FLNG.

Utkilen explains that Aragon was

founded by five industry experts

and the partnership with KANFA

helped the business to grow.

“Aragon was founded by five of

us back in 2006. Shortly after we

did a share emission and became

50% owned by KANFA. KANFA

was an existing EPC company in

the oil and gas industry in Norway

so we asked them to come in

to provide strength as a parent

company so that we could take on

larger contracts. Now the parent to

the KANFA companies are Sevan

Marine famous for their successful

technology for circular shaped

FPSOs.

“Our strategy and position in

the group is as the company that

deals with gas - gas solutions, gas

treatment, gas conditioning and

LNG, particularly FLNG. We are

both a technology company and an

EPC provider which is quite special

for a relatively small company

like ours. We have our own LNG

liquefaction technology which

is developed especially for the

offshore environment and we like

to see this on-board the coming

FLNG projects. Together in the

KANFA Group we are used to doing

both FEED and EPC for topsides

for FPSOs and altogether the

companies in KANFA Group have

a large focus on the FPSO market.

We, as a group, have delivered

several process topsides to the

lease market and ship-owners like

BW, Fred Olsen and Sevan Marine.

“The other KANFA companies

are focussed on similar activities

but they tend to work more with

oil whereas we do gas and FLNG.

50% of KANFA Aragon is owned

by Sevan Marine and the remaining

50% is owned by management,”

he explains.

Before Aragon joined up with

the KANFA Group, the five Aragon

founders all worked together for

another company operating in a

similar market and in 2006 they

decided to try to make a dedicated

company for gas solutions and

technologies for the FPSO and

FLNG market. The five split away

and Aragon was formed with

success.

STRONG HISTORY, PROMISING FUTUREAfter becoming part of the KANFA

Group in 2006, KANFA Aragon

immediately went about imposing

itself on the market place. One

of the first major contracts that

received major attention was a LNG

production topside for Samsung

Heavy Industries, for the world’s

first FLNG production vessel, to

be operated by FLEXLNG. In this

project, the FLNG topside will

be based on KANFA Aragon`s

liquefaction technology and the

contract includes the design and

engineering of the liquefaction plant

as well as procurement of major

equipment items. According to

FLEXLNG, the vessel was originally

designed to have a gas processing

and liquefaction topside with an

LNG capacity of approximately

1.7 mtpa (million metric tons per

annum) LNG.

“Our client in the lease market

tends to be ship-owners and this

is also the market for our FLNG

technology. We signed a contract

with Samsung for the first FLNG

topside for FLEXLNG back in 2008

and we made good connections with

the ship-owner, and such companies

in LNG and FPSO markets are our

traditional clients but if they go for

new builds instead of conversions

then the business tends to end up in

South Korea and the Korean yards

become our clients,” explains Utkilen.

The company has welcomed some

of the world’s major shipyards and

“our largest clients include Samsung

Heavy Industries and Hyundai Heavy

Industries,” says Utkilen.

Right now, the company is

focussed on delivering modules for

international clients like e.g. Hyundai

Heavy Industries and are in parallel

“Our strategy and position in the group is as the company that deals with gas - gas solutions, gas treatment and LNG, particularly FLNG”

KANFA ARAGON

PAGE 79

DST A/S provides highly complex service solutions for the on- and offshore oil and gas industry. We are specialised in total project management, fabrication and installation work worldwide.

Construction activities take place either at DST’s state of the art facilities in Denmark, or at any client specified location.

The core strength of DST is our professional and highly skilled workforce, our overall flexibility and our ability to problem solve in close dialogue with our clients.

At DST, our aim is to achieve Total Health and Quality Management, right first time, every time within an incident free environment and deliveries on time, every time.

Reference case: DST recently completed fabrication of a 'produced water treatment skid' for the Piranema Spirit off the coast of Rio de Janeiro, operated by Petrobras. All prefab took place at DST’s state of the art facility in Esbjerg and as added value, DST performed the offshore installation of the unit. Further more DST was awarded several other service and maintenance related jobs during this offshore endeavour.

Our competencies include: Total project management • Prefab of spools • Piping structures • Steel frames • Fabrication of manifolds • Chemical injection modules • Water treatment skids • Larger steel constructions • Flare booms • Steel landings • Aluminum walkways • Subsea structures. DST is a grade A supplier to the North Sea Sector. Client references:

EAB Engineering • Maersk Oil • DONG Energy • Pon Power • National Oilwell Vargo • KANFA Group • Hess • Danfoss • BP

For more information please contact: Sales Manager Ole Worm

[email protected] T: +45 23731213

WWW.DST -AS.COM DST A/S • FALKEVEJ 7 • 6705 ESBJERG • DENMARK

CONSTRUCTION SERVICES FOR THE OIL AND GAS INDUSTRY -WORLDWIDE!

PAGE 80

delivering several FLNG Pre-FEEDs

with new FEED-work to be awarded

in the coming 12 months. In 2015,

the company will also be looking to

gain a strong stance in the global

FLNG market.

“We are currently delivering a

gas treatment system and a vapour

recovery unit to the Aasta Hansteen

SPAR platform for Statoil through

our client, Hyundai. One is packaged

and ready for delivery and one is

undergoing testing in Poland. It

is always a challenge to deliver

according to all the Statoil and

NORSOK specifications which is not

the simplest, but we are there and

we are ready.”

EXPANSION With the market for gas in general,

and especially the FLNG services,

growing each month, along with the

environmental concerns that many

operators now have while looking

to reduce flaring and wastage, the

offering from KANFA Aragon comes

at a good time for the industry.

“We have a very safe technology

because we don’t use hydrocarbons

“80% of employees are Master Degree level engineers so the workforce is highly educated as we are focussed on higher level engineering”

© Aasta Hansteen - Statoil

as the refrigerant. We use nitrogen

and this means less risk of fire or

explosion. Our processes are simple

and safe and they are different to

several other FLNG-technology

providers,” explains Utkilen.

“80% of employees are Master

Degree level engineers so the

workforce is highly educated as

we are focussed on higher level

engineering and we subcontract a

lot of the ‘simpler’ engineering for a

good price. Here we have a mixed

workforce with people coming from

all over the world including places

like Germany, Italy, England, the

Philippines and Sweden.”

The company is looking to expand

its horizons through both increasing

its product and service portfolio

and also through growing its

geographical footprint. In April 2014,

KANFA Aragon purchased a 50%

equity interest in KANFA Aragon

Americas Inc., a newly established

engineering company in Houston,

Texas. The remaining shares are

held by management, a group of

highly experienced engineering

professionals in the gas processing

and

LNG

industry.

KANFA Aragon

Americas Inc. (KAA)

will focus on providing

engineering and technology

solutions for the oil and gas

industry in North America, Central

America, South America, and the

Caribbean ranging from concept

through EPC.

“We found a team in the US who

were set up in a similar way to what

we were when we started. They are

five very well qualified engineers who

have been in the LNG market for

some time and also been working

with our competitors and major

engineering companies,” says Utkilen.

“We met them in Houston and asked

them if they want to establish KAA

in the same way

that we established

Aragon in 2006 and

this is of course all

part of a strategy

to grow in the offshore

and onshore markets - with

shale gas - and also with LNG

and gas treatment and FLNG in the

area. They are now responsible for

our projects in America. They will

focus on the shale gas industry and

we here in Norway we will remain

focussed on offshore activities.”

Upon joining KANFA Aragon,

Alfred Moujaes, President and

CEO of KAA said: “Our group is

very excited to join the KANFA

Aragon family. We bring significant

experience and added value to

all current and future prospects

under this umbrella. Our diversified

team of engineers covers a wide

range of process technologies with

experience in multiple types of

project execution strategies. The

group’s knowledge of the western

hemisphere markets and established

customer relationships will expand

KANFA Aragon’s reputation as a

world class provider of engineering

and construction services for off-

shore and on-shore projects.”

And as the market for LNG

and FLNG continues to grow;

with Visiongain forecasting strong

expansion over the next five years,

reaching peak levels of CAPEX

in 2018; KANFA Aragon is now

perfectly positioned to address the

needs of all major projects requiring

expertise in gas process solutions

and topside solutions; always

adding value and providing a vital

link the energy value chain. So, as

momentum gathers in the FLNG

market, who would bet against

KANFA Aragon becoming the ‘go

to name’ in the industry?

KANFA ARAGON

PAGE 81

“We are currently delivering a gas treatment system and a vapour recovery unit to the Aasta Hansteen SPAR platform for Statoil through our client, Hyundai”

Formed 22 years ago with just three

employees, the Unique Maritime

Group has grown to become one

of the world’s leading integrated

turnkey subsea and offshore

solution providers.

Specialising in offshore and

onshore services including the

sale and rental of equipment for

the marine, diving, hydrographic,

oceanographic, oil & gas and

non-destructive testing sectors,

the UAE-headquartered company

has also developed an established

manufacturing capability for the

delivery of customised engineering

projects worldwide.

Organic growth and targeted

acquisitions have powered a

continuous expansion of Group

services and geographical

infrastructure to the point where

UMG is now employing over 500

people worldwide located across

seven global regions including the

Middle East, UK, USA, South Africa,

Nigeria, India and Singapore.

PAGE 82

Uniquely placedEditorial: Colin Chinery

Part of the dynamic Unique Maritime Group, Unique Wellube’s services are focused on plant and pipeline operability and avoidance of costly unplanned shutdowns. Global reach extends across the Middle East, North America, Africa, and the UK North Sea, and a hugely impressive growth rate looks set to accelerate following a partnership with US-based Mactech Offshore.

All ten of the Group’s companies

are well positioned to manage

substantial project requirements

as well as sales, rental and

service support for a fast-growing

international customer base.

Among them is Unique Wellube, the

UAE-based specialist engineering

company acquired as a wholly

owned subsidiary two years ago.

SHUTDOWN AVOIDANCE Unique Wellube offers dedicated

engineering services and associated

products focused on plant

and pipeline operability. Costly

unplanned shutdowns are spared

by allowing intervention and plant

critical maintenance work to be

carried safely and cost effectively.

Products and services range from

hot tapping, line stopping, on-site

machining and under pressure

leak sealing, to customised firings,

testing, maintenance, platform

decommissioning services and

portable onsite machining sales and

rentals.

Formed ten years ago, Unique

Wellube grew rapidly with UMG

investment providing a springboard

for international expansion. When

its founder John Allison retired two

years ago, UMG acquired a 100 per

cent holding. “Unique has always

been an integral part of the Group,”

says its Managing Director, Sahil

Gandhi.

“With many years of combined

experience backed by substantial

R&D, our team of professional

graduate engineers and highly

skilled technicians are providing

innovative solutions to meet our

customers’ most demanding

challenges.”

Hot tapping and line stopping

services are currently the most

in-demand services. “And over the

last couple of years there’s been a

lot of focus on asset integrity and

management, pushing the life of

lines as far as they can go. There

are a lot of pipe lines coming to their

scrap date, and clients are looking

for solutions to maintain pipe lines

and keep them going for as long as

possible.

“There are always different

challenges of course. No one

pipe line is ever carrying the same

material or chemical composition,

so you must come up with small

innovations on almost a daily basis

to ensure best performance.”

As part of UMG, Unique Wellube

benefits from Group divisional

interaction and resource support.

“We are a synergised Group with

a widely similar customer base,

so we work very closely with our

diving and marine departments,

not least because they, like us, are

dealing with a lot of offshore EPC

contractors.”

PAGE 83

UNIQUE WELLUBE

PAGE 84

Unsurprisingly oil &

gas has been identified as a Group

major expansion area. “This is where

we are going to deliver most of our

growth over the next five years,”

says Gandhi. “We have already

started the expansion process,

taking the Oil and Gas Division to

India, Nigeria, and the UK.

“Three locations in a very short

time, and hopefully next year we will

be bringing in Singapore and Saudi

Arabia. We see the Middle East as a

major market for our products and

services.”

As well as regional growth,

Unique Wellube is looking to bring

in complimentary products and

services – a strategy that has

seen the development of a major

partnership with US-based Mactech

Offshore, the world’s leading

provider of subsea and offshore

machining equipment solutions.

“Mactech is a very interactive

company working with clients to

come up with bespoke solutions.

They are able to react very quickly

and provide high quality equipment

and engineering services, and this

ties

in very

much with

our philosophy

and operation. As a

Group we won’t take lots

of partners on, but when we do we

like to think of them as our company

and vice versa.”

Focussed mainly on cutting

services, Mactech is the forefront

name in offshore decommissioning

diamond wire cutters. Ideal for

cutting multi-string applications

or heavy wall legs and cross

members, its compact and robust

design creates an ideal cutting

environment, reducing setup,

installation and removal time and

costs.

And as part of its strategy of

continuous innovation, Mactech

Offshore has now introduced

the revolutionary ROV Diamond

Wire Saw. Designed to address

economical efficiencies and

advantages, it also focuses on

personnel and environmental

safety when cutting equipment for

abandonment operations.

HEADACHE FREE ZONE“All this ties in with the range

of services we provide,” says

Gandhi. “We provide the services

and Mactech the engineering and

machinery behind it. We are talking

to the same clients, and this enables

us both to offer a bigger package

and take away the headaches

and hassle of having to deal with

different sub-contractors.”

With the oil price crash of

2014 upending the geopolitical

chessboard, and Saudi Arabia’s oil

minister Ali al-Naimi’s pre-Christmas

claim that OPEC will not cut

production even if the price falls to

$20 a barrel, how does Mr Gandhi

assess the challenges facing Unique

Wellube?

“We are riding the wave OK at the

moment. But a continuous phase of

low oil prices will bring a period of

slow down in the market, though for

service companies like ours I think

there will be a time lag before it

comes through.

“But there’s still optimism in the

market with a lot of the key players

saying they will continue with

their new and expansion projects,

“We have a very strong engineering team, and this is the base of our company, and as a result we are able to provide solutions our competitors are unable to do”

Sahil Gandhi

UNIQUE WELLUBE

PAGE 85

especially in the Gulf States and

Middle East.

“Middle East government oil

majors are willing to ride out the

dip in prices, but other regions and

deeper water locations such as the

North Sea and Brazil could suffer,

with higher costs and the fact they

are not backed by big government

majors.”

These concerns aside, the

global deep water operational

expansion of recent years has

seen an increasing demand for

rental equipment, with Unique

Wellube investing in deeper water

assets for its rental pool while

simultaneously boosting its design

team to ensure the diving and

buoyancy divisions can cope with

deeper waters.

And with its strong exploration

and construction focus, Unique

Wellube’s portfolio has clear

potential for the renewables

sector. “Currently we do not have

a technology like this, but we are

always looking to develop.

“It’s always about finding the

right opportunities, and with a

lot of variations across these

technologies we are monitoring

them very closely to see which are

the most efficient, and also the

potential partners we might work

with. There are many renewable

technologies out there but not all

are as efficient as others.

“In our own case, right across

the board we are always looking at

how we can become more efficient

in our technology and practices,

bettering ourselves by ten to 15

per cent, and where opportune

becoming Greener in our thinking

and habits.”

DYNAMIC PARTNERSClearly, the Mactech partnership

is going to be a major force in

Unique’s on-going expansion. “I

see it growing exponentially. At

the moment we are working in

a couple of regions, but we are

both ambitious companies and as

we grow over the next five years

you will see the Mactech-Wellube

combination in many more places

around the world.

“We are exhilarated to enter

new markets, and growing fast in

regions such as the Middle East,

providing our superior range of

products and making our clients

happy with Unique Wellube’s

efficient and cost-effective

solutions.

“I think the keys to success in

this critical industry are quality,

response times, and our flexibility

to work around different problems

and challenges. We have a very

strong engineering team and

an unparalleled reputation for

customer service and project

delivery - this is the base of our

company. As a result of this, and

new partnerships such as the

one with Mactech, we have a

very exciting time ahead and will

continue to grow Unique Maritime

Group to meet our customer and

market demands.”

Subsea Cutting Experts Mactech Offshore provides hundreds of American made tools and services committed to the Offshore Subsea market. From Spl i t Frame Cutters to Diamond Wire Saws, we have posit ioned ourselves to design , develop and apply these special ized cutt ing tools to marine services in the oi l and gas industry.

See our equipment for yourselfVisit www.mactecho� shore.com

P.O. Box 42647, Sharjah, [email protected]+971 6 5130333

DIA

MOND WIRE SAW D

IAMOND WIRE SAW

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+1.337.839.2793

TSK Group has been in operation for nearly 30 years and specialises in turnkey industrial projects, the majority of which are within the Energy sector. It is a public l imited company, established in 1986 and the result of a combination

between the electrical engineering and electrical installations divisions at ERPO Group – the first engineering company listed on the Spanish Stock Exchange. TSK was acquired from ERPO Group by its current shareholders

in 1999 and swiftly moved on to the next stage of its progression towards being the EPC contractor they are today. Initially focusing on turnkey installations of water treatment plants, today TSK boasts engineering, procurement and

PAGE 86

TSK – the Spanish EPC company that is steps ahead of the restEditorial: Ajuanne Payne

TSK Group – a Spanish company with one of the most impressive track-records for engineering, procurement and construction projects in the energy, industrial, environmental and minerals handling sectors. With 30 years of experience in the industrial and energy sectors and a worldwide expertise, we talk to Santiago Del Valle, Managing Director for Sales at the group, about milestones at the company and some of the exciting projects on the horizon for TSK.

construction expertise in the fields of power generation, solar thermal installations, oil and gas, electrical and control infrastructures, solar P.V., I.T., environmental and mining projects.

Spain is a world-leader in renewable energies, has a highly developed wind-energy and hydroelectric sector and is the fourth largest manufacturer of solar technology in the world. It has on average more hours of sunshine than nearly all European countries which, along with the increased focus on renewable energy production over the last few decades, has led to Spain becoming a world leader in the field of solar technology and enterprise. It was the first country globally to require the installation of photovoltaic (PV) technology into new buildings back in 2005 and its energy

businesses are leading the industry the world over.

TSK Group have made a significant contribution to Spain’s position as one of the leading countries in renewable energy, emerging from this culture of innovation to become an engineering company at the forefront of some of the more significant energy projects in recent years. Part of this can be attributed to the company’s abil ity to adapt and its international reach. They have conducted projects in over 30 countries worldwide and have a turnover of over €450 mill ion, 16% more than the previous year and with 95% of TSK Group’s business coming from outside of Spain.

“I wil l say that in 2003 TSK had already started its transition into the international market with setting up subsidiaries in Venezuela and

Morocco.” Explains Del Valle, who has a 20 year history with the group.

Shortly after setting up these subsidiaries, TSK Group began working in the solar photovoltaic industry and further subsidiaries were set up in Nicaragua, Chile and Brazil in 2008, when the group embarked on their f irst thermo-solar projects. Further to this the group started expanding into the Middle East in 2010, carrying out projects in India, Saudi Arabia and Bangladesh.

One significant project, which reached completion in May of last year, was the TAI Durango photovoltaic plant constructed by TSK and the first part of a solar complex that wil l eventually reach a total production capacity of 100MW. The TAI-I project wil l power 8,000 homes in the region while creating employment

PAGE 87

TSK GROUP

PAGE 88

opportunities for locals.“The project for EOSOL

was very important to us and continues our work in South America. We have had a very successful experience with this company in Spain and it was great for us to participate in this project”

More recently, TSK Group’s energy and development arm signed three new contracts in Brazil that wil l engage them in the region for the next three years.

Del Valle goes into more detail on the new developments: “We have three offices in Brazil and are very active in the region. We are participating in a project for EDP - it is a hydroelectric plant in AMAPA, close to a similar plant we worked on before.” TSK will be involved in the electromechanical assembly of the plant, with turbines

supplied by Alstom.

The electricity generated wil l be 220MW once completed.

TSK is nearing completion on the construction of five wind farms belonging to GESTAMP, a Spanish company, and has been awarded the EPC construction of a Substation by EDP for the wind farms the company is building in Rio Grande do Norte. The EDP project involves the evacuation of energy generated by the wind farms with a capacity of 138 KV.

The company has been contracted to participate in a further five wind farms by FURNAS – a Brazil ian state-owned company that produces 10% of the country’s electricity. The total combined cost of these projects is nearly €32 mill ion.

A number of acquisitions have been made by TSK Group over the years that have

contributed to the company’s continued growth. They are the main shareholder in l isted company, Duro Felguera – another EPC contractor with similar expertise to TSK, after purchasing a 16% share back in 2000. They acquired Irelsa and Ingemas, engineering firms, in 2007.

“Currently our main area of business is in energy. In conventional energy and renewables, I can say we are one of the leaders in the market” Mr Del Valle explains, “Last year we acquired a German company, Flagsol, which specialises in solar-thermal power plants”

Flagsol, a German engineering company with its expertise in thermal solar plants, was acquired in 2013 and re-named TSK Flagsol Engineering GmbH. The acquisition further displays the company’s drive towards having significant expertise in all the industry sectors they service. To date, TSK Flagsol has been involved in the construction of 10 plants in countries l ike Spain, Morocco, Egypt and South Africa, with a combined power of 750MW.

Flagsol was involved in the construction of the world’s first parabolic trough power plants in the U.S. in the 1980’s. It is very much focused on the R&D of parabolic trough technology, the newest innovation being the HelioTrough collector – an energy-efficient and more cost effective product than what was previously available.

TSK has actively made strategic decisions in order to stay ahead of the pack and to cement its position within the

ever-evolving energy market. They describe themselves as a “strong international presence in engineering and industrial construction” and have grown to the point of directly employing 750 skil led employees with the specific technical knowledge needed for all their services.

This year, TSK will be working for EDP again in Spain to prolong the life of their coal power stations there. Working in partnership with Mitsubishi Hitachi Power Systems, TSK will be working on the construction of DeNOx systems at two of EDP’s power stations which wil l not only improve efficiency, but reduce emissions of nitrous oxides by 80%.

“These are very important projects for us”, says Del Valle. “We are in a joint-venture with Mitsubishi-Hitachi and EDP will be the first company to use a DeNOx system in Spain. It wil l be valuable for us to reinforce our relationship with a very important company such as Hitachi.”

It is a testament to TSK’s capabil it ies and the quality of their work that they have consistently worked on high-profi le, tailored engineering and industrial construction projects of the last decade, in such a competitive market.

“We are a private company, which gives us more control of course. We have experience in delivering fast-track projects.” Explains Del Valle: “another important thing to say is that we consider ourselves as an engineering company. Of course we operate within all areas when it comes to our projects – from installation to

operation and maintenance, but we are very committed to the engineering.

“In five years’ time we see ourselves as being one of the most important EPC companies in the market.”

The company plans to further consolidate and expand their operations in the Middle East in the coming years in order to better service the market there and to attract more projects within the oil and gas sector.

Most importantly, perhaps, is the human expertise needed to advance in the fairly young renewables sector, as well as maintaining their business in the more conventional energy

industries. The key to success for TSK lies very much with the knowledge and expertise of its 750 staff.

Santiago Del Valle sums up what has been central to TSK Group’s continued success: “I think the key to success has been how the business was managed. Obviously, the projects and acquisitions, etc. but the CEO, one of our shareholders, and his son is in the business as well, have really progressed the company. It is a wonderful thing definitely. The people are the most valuable assets of the company – and that’s the main reason for our success.”

TSK GROUP

PAGE 89

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Felguera IHI is in a great place r ight now. The company provides turnkey construct ion of fuel storage terminals, LNG storage tanks and storage equipment, and in recent t imes the business has completed some major contracts and cont inues to

grow in markets where there are a number of big name players vying for market share.

Managing Director, Pedro Flor iano is buoyant when descr ibing the current state of the company, saying: “To give an idea of the expansion of

the company in the last years, at the end of 2008 Felguera IHI could be considered basical ly as a domestic company, with a sales f igure of €30 mi l l ion.

“Today, Felguera IHI is a global company with sales f igures of €130 mi l l ion and is

PAGE 90

Storage specialist entering new marketsEditorial: Tim Hands

Managing Director for Felguera IHI, Pedro Floriano tells Total World Energy more about the Spanish history of this important industry player, and more about how the company is planning to move into new markets, continually growing its already sterling reputation for quality and excellence.

present in several countr ies: Spain, Costa Rica, Panamá, Colombia, Bol iv ia, Perú, Chi le, South Afr ica, Niger ia, Saudi Arabia, Cyprus and Turkmenistan.

“We current ly employ more than 300 hundred people.”

Whi le the oi l and gas industry is constant ly evolv ing to meet new economic and environmental chal lenges, Felguera IHI is perfect ly posit ioned to offer innovat ive, f lexible engineer ing and construct ion solut ions to organisat ions that need a turnkey project, provided quickly and to the highest of qual i ty standards.

STRONG HISTORY The success of Felguera today comes from bui lding expert ise over many years in the oi l and gas industry. With Spanish roots, the company also

draws on Japanese precis ion and is proud to cal l two of the world’s foremost companies in their industr ies, Duro Felguera (DF) and IHI Corporat ion, i ts main shareholders.

“The company was founded in 1962 as a storage department of DF to meet the Spanish storage needs - a mult inat ional company which was set up in 1858 in Astur ias, in the north of Spain, special ized in the execut ion of turnkey projects for the energy, mining and handl ing and oi l and gas sectors,” explains Flor iano.

“ In 1975, 40% of the company’s shares were acquired by the Japanese company, IHI Corporat ion, an industr ia l and technology conglomerate present on the five cont inents and working in the areas of energy, aerospace, logist ics,

shipbui lding, development of infrastructures, offshore, engineer ing, etc.

“Nowadays, Felguera IHI has a worldwide presence and takes advantage of the synergies of these two big companies and their state of the art technology.”

In the ear ly days, Felguera was focussed more on the supply of tank containers rather than construct ion but today the strategy def in i te ly involves an engineer ing approach.

“Felguera IHI or iginal ly started act iv i t ies as a tank construct ion company, being a mere suppl ier of this equipment. Over the years, the company evolved and current ly is an engineer ing and construct ion company specif ical ly or iented towards storage solut ions (mainly storage terminals) and LNG

PAGE 91

FELGUERA IHI

PAGE 92

technology (regasi f icat ion and tanks). Our approach to projects is basical ly Lump Sum Turn Key EPC (LSTK EPC),” says Flor iano.

PLANS IN THE PIPELINEFelguera IHI has completed an impress ive port fo l io of pro jects and has worked for some of the wor ld’s major energy businesses however, F lor iano deta i ls work for ENAGAS, Spain’s nat ional gas gr id operator, as one of the most prominent pro jects that the company has been involved with in recent years.

“As for key pro jects, I can underscore the seven PC wal l fu l l conta inment LNG tanks of 150,000 m3 each for ENAGAS. In th is case, Fe lguera IHI was responsib le

for the

complete design,

deta i led engineer ing,

procurement, t ransportat ion, erect ion, test ing and commiss ioning,” he says.

“ In addi t ion, severa l storage terminals on a fu l l LSTK EPC basis were executed in Spain dur ing the last years, as wel l as terminal expansions in other countr ies. Fe lguera IHI has become a re l iab le partner to important ut i l i t ies such as RECOPE, PETROPERÚ, etc.

“ In our p ipel ine of pro jects to be developed, I would h ighl ight the recent award of a 376,000m3 Storage Terminal in Panama, for Vopak.”

This refers to a €56 mi l l ion contract won back in November 2014 for execut ing a fue l supply terminal for sh ips and o i l storage in Bahia las Minas (prov ince of Colón)

on the At lant ic coast of Panama. The pro ject wi l l be implemented in partnership wi th Spanish f i rm FCC industr ia l .

The company is looking to expand on th is internat ional exper ience by growing further into new markets whi le a lso consol idat ing i ts posi t ion in i ts establ ished markets as F lor iano expla ins: “Consider ing Felguera IHI as a g lobal p layer, our target for the next years consists of consol idat ing our posi t ion in the markets in which our presence is a l ready strong (Lat in Amer ica, Spain etc) and increasing our act iv i ty in regions l ike Middle East and Afr ica.”

EXCELLENCE THROUGH EXPERIENCE Unl ike other companies industry, who are made up of only construct ion personnel and outsource engineer ing, design and technology to th i rd part ies, Fe lguera IHI uses i ts exper ience to keep as much of the va lue chain as possib le in house. The company has a large team of engineers and other profess ionals specia l ised in a l l the f ie lds required in storage pro jects and F lor iano h imsel f has been with the organisat ion for a number of years.

“ I have more than 12 years’ exper ience in pro ject execut ion and management of internat ional pro jects; main ly in min ing, o i l and gas, cement and bulk handl ing,” he says.

“After complet ing my Min ing Engineer ing course

(Ov iedo Univers i ty ) and MBA (Nott ingham Univers i ty ) , I jo ined DF in the Min ing and Handl ing Div is ion as Project Manager and then moved into the Commercia l Department. Between 2002 and 2004, at the same t ime, I developed management act iv i t ies in our subsid iary in Mexico.

“Since June 2009 and up unt i l now, I have been act ing as the Managing Director of Fe lguera IHI , as wel l as a member of the Board of the company, in coinc idence with the g lobal expansion of the company,” he adds.

W ith in the DF Group, a lmost 2,000 people make up the workforce inc luding qual i f ied engineers, admin ist rat ive staff and factory workers, thereby cover ing the whole range of profess ionals requi red by a group with a c lear vocat ion for serv ices to the industry.

“Felguera IHI has i ts own internal resources to prov ide advanced tra in ing. This apart f rom the 50 years’ exper ience in the market, which prov ides us with a substant ia l knowledge that we intend to t ransmit to our employees on the day-to-day,” says F lor iano.

CAPTURING SUCCESS With Felguera IHI’s backlog of successful projects and the strong pipel ine providing a posit ive out look for the future, the company is in a strong posit ion. When asked about the reason for the organisat ions ongoing success, Flor iano pays tr ibute to the company’s f lexibi l i ty saying: “ I t ’s def in i te ly our capacity to adapt ourselves to the chal lenging environment.

Felguera IHI has moved from being a domestic company at the beginning of the cr is is to transform into a global leader in the storage f ie ld.

“Our competit ive advantage is essent ia l ly that we are a medium-size engineer ing company or iented exclusively to storage solut ions and LNG technology, whi le our competitors are either manufacturers, or big integrat ion engineer ing companies.

“Besides this fact, we must keep in mind that Felguera IHI is owned and supported by

two prest igious companies in DF and IHI, which is always a guarantee of rel iabi l i ty and success.”

As the supply of fuels and energy products becomes more and more important, the products and faci l i t ies offered by Felguera IHI wi l l inevitably become more and more sought after and, as a company that can provide engineer ing and construct ion, to many countr ies around the world, this is a business that is def in i te ly on the r ise and wi l l be one to watch in 2015 and beyond

FELGUERA IHI

PAGE 93

Engineering | Construction | Maintenance | Commissioning

“Knowledege and commitment”

www.teigatmi.es

ER-1194/2000 GA-2011/0497 SST-0205/2011

P.I. Bergondo B 11La Coruña (Spain)Tel. +34 981 783 [email protected]

Q: Tell us about the history of Gulf Petrochem Group? When did the company start up? Who was responsible? What was the reason for establishment?Gulf Petrochem started in 1998 and is today a

company worth over US$2 billion. It has organised

itself into six Strategic Business Units comprising

of Trading, Bunkering, Storage, Terminals, Refining,

Bitumen, Lubricants & Grease Manufacturing and

Shipping & Logistics, largely for captive business

requirements. Gulf Petrochem Group is head

quartered in the UAE but has trading interests in many

countries, with offices in the Far East (Singapore),

Middle East (UAE – Sharjah, Dubai), Africa (Tanzania,

Kenya and Nigeria), Europe (London) and the Indian

Sub-Continent (Delhi and Mumbai).

Q: In which industry sector is Gulf Petrochem most successful?Our two areas of primary focus is trading and

bunkering. Close to that is our terminalling business.

With regard to our terminalling business, we conduct

global assessments to ascertain the gaps between

supply and demand and pitch ourselves in wherever

PAGE 94

Towards new horizons…Editorial: Harriet Pattison

With numerous acquisitions, Gulf Petrochem has started to make a name for itself in an industry which is becoming increasingly competitive. Now a US$2 billion company, its latest project, the Pipavav Oil Terminal, is due to be commissioned this month with a storage capacity of an estimated 250,000 KL. Total World Energy speaks to the Global Head of Terminals, Mr Muthukrishnan Prabakaran, to find out more…

it is commercially viable. Our business model

provides for both organic and inorganic growth in

this segment. We venture into putting up Green Field

terminals wherever the opportunity is available and

also assess Joint Ventures with like-minded partners.

We are expanding our refining portfolio into East

Africa as part of our focus for 2015 in developing our

footprint in East Africa and enhancing our terminalling

business.

Q. What about the Pipavav Oil Terminal Project? What is the timeline of this project?We will be commissioning our Pipavav Terminal by

the end of January 2015. It has a storage capacity

of 250,000 KL catering to all classes of petroleum

products, petrochemicals, lube base oil vegetable

oil, fuel oil and bitumen. It is a state of the art

terminal with all modern facil it ies and capabil it ies.

Similarly, 2015 will also see us enhance our storage

capacity in our Fujairah Terminal.

Q. This year saw the first year of operation of the new Fujairah Oil Terminal, commissioned in 2013. What did this project involve? Did you face any challenges along the way?Our new terminal at Hamriyah (a re locat ion

of our ex ist ing terminal ) is l ike ly to be

commiss ioned by May 2015. I t is yet another

state of the art terminal to complement our

port fo l io of storage assets wi th a capaci ty of

200,000 KL. This terminal is a lso designed

to handle a l l c lasses of petro leum products,

petrochemicals, lube base o i l , fue l o i l , and

bi tumen.

There were of course chal lenges such as

synchronis ing var ious regulatory approvals to

the mobi l isat ion of mater ia ls and labour, but

wi th the fores ight of our board we were able to

accompl ish and complete the pro ject wi th the i r

support and guidance.

PAGE 95

GULF PETROCHEM

Q. What is the target for the business over the next 2-3 years? How will the Sah Petroleum acquisition contribute to the growth of the business? Acquisition of Sah Petroleum, a listed company in

India, is part of our long term strategy for forward

integration. Sah Petroleum already has an established

space in the segment of industrial lubricants in India.

With this acquisition, we will be exploring our reach

into the automotive segment, as well as furthering our

market share in industrial lubricants. We also have

plans to implement strategic tie-ups with leading

brands and expand our presence in other countries.

So, in a short spell of time, we expect to derive

significant value for the group.

Q. Can you tell us about the Shell Bitumen Plant Acquisition? What was the reason for the acquisition? What are your plans for this facility?

As a group, we are significantly involved in bitumen

trading with roughly 50% of the bitumen market in the

UAE serviced by us. Apart from the UAE, we are an

important player in India which gives us confidence

to expand our services into neighbouring countries

like Sri Lanka and Bangladesh. Following our Shell

Plant acquisition, we are now fully integrated into the

bitumen business. With a 30000 MT bitumen storage

and bottling capacity, we are poised to enhance our

market share in India and facilitate trading interests in

neighbouring countries.

Q. What is your personal history in the industry and with the company?Gulf Petrochem has started inducting experienced

professionals over the past 2 years to guide their

expanding business interests and help enhance value.

The appointments of Mr BM Bansal Ex Chairman of

Indian Oil and Mr Thangapandian Ex CEO of ESSAR

Oil at Board level have immensely benefitted the

organization in terms of providing direction and

business acumen. I have recently joined the group

and I have 35 years of experience in the Oil Industry. I

have served both public sector and private sector Oil

giants in India in senior positions, handling important

businesses like operations, retail, industrial sales,

LPG, supplies, shipping and international trading.

We bring our experience to add value and further

the business interests of Gulf Petrochem, and is

yet another opportunity to be part of a growing

organization and provide strategic thrust to the

management’s objective of expanding the business

with a global footprint in all countries.

Q. What is required from the staff of Gulf Petrochem Group? Do they need experience in a similar role? Can full training be given for all positions?We always look for world class talent to come and

join us. The experienced senior professionals act

as mentors and provide the necessary guidance

and support to the youngsters. We do recruit

management graduates from business schools and

engineers from premier institutes and train them in

various functions like trading, terminal operations,

manufacturing and refining. The organization is

young and we have an exemplary record recruiting

the right talent, training them and ensuring retention.

Q. Is the constant drive towards ‘greener’ business having an impact (positively or negatively) on the business?Absolutely, the greener business initiatives do

have a positive impact on us. The organization

considers this as a social responsibility. Protecting

the environment, safety and security of people are of

prime importance to Gulf Petrochem. As part of our

planning process for any project, we always conduct

an environmental impact analysis and always strictly

adhere to all rules and regulations in this regard.

Q. What has been the key to the company’s success over the years?Concern for society along with business interests,

inculcating the habit of safety and security in the work

place and the environment in the minds of employees have

been the prime movers of success for Gulf Petrochem.

While a fall in oil prices does have an impact on all Oil

companies, certain pre-emptive actions like prudent risk

management policies have helped in protecting us from

such volatilities in the market. However, such fluctuations

do not deter the vision and ambition of the organization to

embrace emerging opportunities across the globe

PAGE 96

“The organization is young and we have an exemplary record recruiting the right talent, training them and ensuring retention”

PAGE 97

Vijay Tanks & Vessels (P) Limited is a specialist EPC contractor covering a comprehensive range of storage tanks and process equipment.

VTV’s broad range of services encompasses the entire chain of equipment required for refinery, petrochemical and fertilizer plants.

Specifically our range of products comprise of pressure vessels, process columns, heat exchangers and reactors. Our credentials include

benchmark assignments for some of the largest process equipment ever built.

We are acknowledged as a global leader in the storage tank sector and are amongst a handful of companies that specialize in the

atmospheric, pressurised and cryogenic storage value chain.

The company’s fabrication plants are located in Vadodara, which is in the central part of Gujarat, and Kandla – a seaport in Gujarat, with

a consolidated annual steel fabrication capacity of 15,000 tonnes. Our fabrication shops are situated on arterial highways and cover a

total area of 100,000 square meters. Our Kandla fabrication facility is close to India’s Kandla port and has the capability to export over-

dimensioned consignments to any part of the globe. The maximum weight of single equipment shipped from this facility is 550 tonnes. We

have shipped a horton sphere of 16.7 M diameter fully assembled at our Kandla works to Gorgon LNG Project, Australia. This is amongst

the largest such equipment to have been shipped across continent.

Major flagship EPCC projects executed by VTV, including critical process equipment, in the recent years include:

•Double wall ethylene cryogenic storage system at Opal, Dahej, India including pumps, compressor, vaporizer, piping, civil, E&I works

•Oil Storage Terminal at Pipavav for M/s. Gulf Petrochem. The terminal comprises of 46 Nos. atmospheric storage tanks of an aggregate capacity of 250,000 KLS covering various class of products. This project was executed by VTV on the basis of concept to commissioning and included all disciplines of engineering such as civil, mechanical, electrical and instrumentation, process.

•Completion of construction of 4 Nos. LNG Tanks of 590,000 Kls aggregate capacity and 4 Nos. LNG Tanks of aggregate capacity of 650,000 Kls are under construction.

•Large dia crude / Vacuum distillation columns for various refineries in India of maximum diameter of 12 m with overall height of 64 M.

•16 Nos. Coke drums for various refineries in India.

With U.S. sales of protective clothing

at $1.6 billion, and expected to reach

$2.3 billion in 2017, Total World

Energy’s Rick Liddiment speaks

with Dave Murphy, President of Red

Wing Shoe Company – arguably

the most recognisable work-boot

brand worldwide - to find out more

about this decorated company’s

global offering. Originally focussed

solely on work-boots, Red Wing has

expanded over the years to be able to

provide full head-to-toe safety wear

for workers in the oil and gas industry

– anything from safety boots to flame-

resistant garments.

“We are 109 years old. We were

founded in 1905, by a gentleman

named Charles Beckman and he had

had a tanning business,” explains

Murphy. “He got into the footwear

business right here in Red Wing

Minnesota, along the Mississippi river

- just 60 miles outside of Minneapolis.

Not long after he started the

company, William Sweasy - one of the

ancestors of Bill Sweasy our current

PAGE 98

Red Wing and the gold-standard of safety-wearEditorial: Ajuanne Payne

For over 100 years the Red Wing Shoe Company has firmly positioned itself as a brand synonymous with quality and trust. The company, very much for the working man and woman, has a real focus on excellence, innovation and service before profit. With 2,500 employees, positioned in more than 110 countries worldwide, its work-boots have set the gold-standard for safety in many industry sectors for years - while its main production facilities are still firmly rooted in Red Wing, Minnesota, where the company was founded in 1905.

chairman, bought the company and

we have built the business ever since.

It’s been in the Sweasy family for

nearly 100 years and we are now into

the fourth generation.

“Texas was our first big oil and gas

market and from there it expanded.

As these companies were drilling in

Texas went world-wide, we went with

them.”

Red Wing Shoe Company has not

only survived, but prospered for over

a hundred years and in the face of

recessions, two world wars and the

major decline of American shoe-

manufacturing in the second half of

the 21st century. Much of this is down

to the company’s loyalty to its core

values and the continued influence

the Sweasy family holds within the

business.

“It is a privately held company

which is, in a way, a competitive

advantage for us, because it lets us

focus on footwear and what we do

well. It lets us focus on the customer

- we don’t focus on our earnings.

We aren’t caught up in quarterly

reports, quarterly announcements

and so forth. Our shareholders,

particularly Bill Sweasy - our chairman

and largest shareholder, are very

dedicated to making great products

and serving our customers.”

CUSTOMER FOCUSSEDOne facet of the operating structure

that has underpinned Red Wing’s

ability to stay ahead of the pack,

is its ongoing focus on R&D and

innovation. Housed in the building

where the company was founded is

an extensive R&D facility, dedicated to

the development of quality footwear

products and oil and gas garments.

“We have a very comprehensive

lab where we are testing current

products and newly developed

products,” explains Murphy. “We

have some of the deepest experts in

leather. In fact, we sell our leather to

a number of competitors. Our leather

is used in U.S. military boots – we

don’t make military boots because

we sell to those that do. You see

any U.S. military man or woman

around the world - that leather comes

from our tannery, right here in Red

Wing Minnesota. We have 3,000

consumers in different industries

that wear-test our product. These

3,000 consumers participate in our

wear-tester program where they test

product that has not been released to

the public yet. Wear-tests can range

anywhere from three to six months

- and we’re one of the few that do

that.”

GLOBAL REACHAs a company that started off solely

servicing local markets, Red Wing

entered its first international market

more than 50 years ago and is now

represented in 110 countries globally.

It has offices in Dubai, Houston, the

Gulf of Mexico, Aberdeen, Stavanger

– all of the key oil regions of the

world. Part of the key to the brand’s

success may also be attributed to

just how much the company has

vertically integrated its

operations over the

years.

“We have

two

tanneries. We start with bloody

cow hide, all the way to personally

fitting footwear on the feet of our

consumers all over the world. We

have factories and two tanneries

in the United States as well as

some international production in

China, Vietnam and the Dominican

Republic,” says Murphy.

With their ‘Made in America’

appeal, Red Wing boots have

managed to become an iconic

fashion staple with their Heritage

brand, as well as an essential part

of kit for workers in varied industry

sectors. The triple-stitching Red

Wing uses started out as a feature

to create longer-lasting and sturdier

boots, but has ended up being a

signature of the brand. In fact, if

you are lucky enough to visit one of

the production facilities today, you

will see the same Puritan Stitching

Machines very much operational

within a company that goes by the

saying; ‘if it ain’t broke, don’t fix it’.

With work-wear, Red

Wing services many different

industry sectors including;

PAGE 99

RED WING SHOE COMPANY

Dave Murphy

construction, heavy industry, mining,

railroads, transportation and oil

and gas to name a few. With over

70% of business comprising of

work products, with oil and gas

being a dominant market, it is

only natural that the company has

included flame-resistant material and

garments as part of their safety wear.

“We felt that the Red Wing brand

could carry over in to other personal

protective equipment. Everything

from flame-resistant garments to

highly-insulated and very lightweight

and cool overalls; all designed to

protect from flash explosions. When

you think about companies like BP

or Exxonmobil you know safety is

the first thing on their minds, but the

last thing they want to worry about.

It’s the most important thing to them

but they’d rather have that so nailed

down that they don’t have to worry

about it. We can provide head-to-

toe protection all over the world and

when you get to that question of

competitive advantage - that is our

aim,” explains Murphy.

Red Wing Shoe Company’s deep

commitment to quality before profits

and its organic growth has built a

strong foundation of trust with its

customers, both from a fashion and

working point of view.

“Being competitive starts with

great quality products. Our work

wear is known all over the world.

We’re really the only brand,

particularly in footwear, that is

everywhere.

“We think of ourselves as

purpose-built. Our first objective is

to make sure we meet the purpose.

We have literally thousands of styles

of product - all designed to meet

certain requirements,” adds Murphy.

QUALITY SERVICE FOR QUALITY PRODUCTSecond only to the quality of the

product and another of Red Wing’s

core values is its continued dedication

to first-class service. It is not enough

for the company to be present

worldwide – they have developed

innovative ways of tailoring their

services to the very specific demands

of their industrial customers.

PAGE 100

“Being competitive starts with great quality products - our work wear is known all over the world, our product, our brand and our service. We’re really the only brand, particularly in footwear, that is everywhere”

“We have 200 trucks that are full

Red Wing shoe-stores on wheels,”

explains Murphy. “They hold 1000

pairs of shoes and we actually go

to sites. We’ll go to power plants,

we’ll go to construction sites,

we’ll go to oil facilities – whatever

it takes. We have this deep

distribution with stores, trucks and

industrial sowing people.

“The safety managers of these

big companies want consistency,

they aren’t dealing with regional

suppliers who don’t know who

they are. So we basically go to

these people and say – we can

serve you anywhere in the world.

We can serve you quickly. We can

get stuff out on the oil rigs on a

helicopter, and in Aberdeen we

can get stuff in the North Sea in

three hours. We not only have the

garments and the footwear, we

actually produce and sell high-

protection gear. We can give these

safety directors and everyone

else everything they need in

convenience.”

As part of continued innovation

at the company, Red Wing is

coming out with VectorGuard™

in 2015. The mosquito-repellent

fabric for PPE garments is

specially geared to service oil and

gas workers in tropical climates.

The garment technology will able

to withstand hazardous working

environments and will last over 70

washes (the expected life-span of

a work garment). Importantly, the

fabric can be used on both fire-

retardant and non-fire retardant

Red Wing oil and gas garments.

Perhaps even more importantly

than that, it will give workers and

employers added peace of mind

and reduce cases of the potentially

fatal disease.

RED WING SHOE COMPANY

© Airbus S.A.S. 2011

PAGE 101

Looking forward, there are a few

exciting things on the horizon for

Red Wing. Aside from the imminent

release of VectorGuard™, the

company has an exciting project

pipeline.

“We are refreshing and updating

some of our extremely popular work

styles so they will hold-up longer

and perform even better than they

do now. We also have some very

exciting brand new products being

released in 2015 for our work and

industrial footwear lines. I can only

tease them right now, but keep

an eye on us in 2015 for more

information.”

LACED WITH REDWING Dave Murphy has been with Red

Wing for 13 years, but got his start

at one of the world’s largest food

companies.

“I did not grow up in the footwear

industry, I grew up in the marketing

and management world at General

Mills – a food company. What I did

bring was brand experience and

management. What I didn’t have

was any footwear experience,

which has been so fun for me.

I’ve been at the slaughterhouse

where we get our leather in Skyline

Nebraska. I’ve actually sold

footwear to real consumers, not

very well I’m afraid, but it’s just

incredible, exciting – I’ve never had

a job like it and it’s just been the

greatest. I’m probably one of the

few guys that has more shoes than

his wife!

“I was in the Gulf of Mexico,

probably six or seven years ago

and I was on an oil rig. I was

actually talking to the cook,

PAGE 102

because I was trying to understand

how these guys feel on the rigs

and he said to me: ‘Let me show

you something. I want to tell you

why your footwear is so important

to us.’ We’re standing on the

corner of the rig, literally along the

edge of the rig and he takes a raw

chicken, we’re 70 miles offshore

and he throws it over the side of

the oil rig. He said ‘look over the

edge,’ and it falls down towards

the water, but it never hits the

water. When it gets right to the

water’s edge, to the surface of the

water, these fish jump out of the

water and consume this chicken.

They bounce it like a basketball

rebound and they eat this chicken

before it hits the water. He looked

at me and said: ‘slip resistance is

very important.’ So I’ve had these

experiences where you can see

first-hand.”

What’s clear when talking with

Dave Murphy and what’s evident

throughout Red Wing Shoe

Company is the undeniable passion

its employees have for the brand

– a real drive to stay true to the

company’s core ideals. This may

well be the true essence of Red

Wing’s success over the years. It

maintains its facilities in Minnesota

when at some points it would have

made more sense financially to

have relocated and has shown true

dedication throughout its history

to the community of Red Wing,

Minnesota, from which it was

forged.

“We have a mission statement

and I don’t worry about whether

our employees can quote it,

but they live it: ‘Red Wing Shoe

Company will be a company

whose first priority is employees

as we serve our customers, our

shareholders, our suppliers and

our community.’ It does start with

our employees and they are all

dedicated to serve our customers

with quality and service. So – that’s

what it’s all about,” he concludes

RED WING SHOE COMPANY

© Airbus S.A.S. 2011

PAGE 103

“We have 200 trucks - multiple trucks that are full Red Wing shoe-stores on wheels. They hold 1000 pairs of shoes and we actually go to site. We’ll go to power plants, we’ll go to construction sites, we’ll go to oil facilities – whatever it takes.”

The Honda FCX, or Fuel Cell

eXperimental, has been described by

automotive industry commentators

as “the future”. They call it “beautiful”,

“exceptional” and “a fantastic display

of how far we’ve come”. American

talk-show host, Jay Leno called it “the

savoir of our sports cars” and BBC

and Top Gear’s James May said the

FCX is “the most important car since

the car was invented.”

Everyone in the energy industry

has heard of the FCX, although

you probably haven’t seen too

many on the streets, and people

in the automotive industry who are

understandably sceptical when it

comes to electric vehicles are now

looking at the FCX and calling it a

fantastic achievement.

So what is it that Honda has done

to make so many people turn and

speak to positively about an electric

car? Well, it isn’t the looks or the

styling. While pretty, the FCX is no

more astonishing than the standard

four-door saloon that you see every

day in the car park. And it isn’t the

numbers; this car can reach 100

mph, it has 136 bhp and can do

0-60 in around 10 seconds. But it

is the innovative way that the FCX

is powered and the astonishing

emissions numbers that make this

vehicle a game changer.

The car is powered by hydrogen,

PAGE 104

The most important car in 100 years? Editorial: Christian Jordan

We have looked extensively at the future of transport; we’ve looked at some of the most ambitious ideas out there, but the Honda FCX and the imminent FCV look like they could be the answer to everyday transport around the globe – the future of the car…

and all of our friends in the oil and

gas industry will be well aware that

hydrogen is the most abundant

element in the universe unlike petrol

or diesel. Hydrogen is stored in the

large 171 litre storage tank at the

rear of the car. The hydrogen is then

mixed with oxygen in a fuel cell that

sits in the centre, between the two

front seats. This creates electricity

that powers the motor that turns

the wheels. Of course, the only

by-product of this type of power

generation is water (H+O=H2O), and

that is all that you will find coming

out of the exhaust. U.S. publisher

Ward, estimated that as of 2010 there

were 1.015 billion motor vehicles in

use in the world; the emission from

these vehicles adds up to an almost

unbelievable amount but imagine if

just 10% of that number was taken

away; imagine the impact on the

environment and the amount of

valuable oil that would be saved.

Honda has been working for

many years on its hydrogen fuel cell

technology and launched its first

prototype FCX in 1999. Over the next

decade, ideas were developed and

the model became more advanced

although it was rarely seen outside

of California or Japan. In 2002, the

FCX became the world’s first fuel-cell

car certified by the U.S. EPA and

California Air Resources Board for

commercial use. In 2006, at the

Detroit Auto Show, Honda announced

that it would make a production

version of the FCX concept that had

been displayed at the previous year’s

Tokyo Motor Show. As excitement

built around this futuristic and

innovative concept, other motor

companies began to release their

own concepts to the market and it

seemed as if the world of driving was

set to change.

In 2008 at the Greater Los Angeles

Auto Show, Honda unveiled the FCX

Clarity, the first production model. It

was only available in California and

would only be leased for a 36 month

period until hydrogen filling stations

had become more common. With

the release of this new model came

the attention of the world’s media,

thrilled at the prospect of 100%

eco-friendly driving, and thrilled that

this electric car could travel over

250 miles without needing a charge

and could be filled up in a matter of

minutes.

By 2010, the FCX was famous

and had become the major topic

of discussion for motor enthusiasts

and clean energy groups. And good

news for those groups, Honda has

announced that it is developing a

new version; the FCV.

The FCV concept was debuted in

Japan in November last year. This

new model continues in the vein of

its predecessor, promoting next-

generation zero emissions Honda

technology.

Honda says that the FCV could

be launch in Japan by March of

2016 and that it will contain a

number of improvements from

the FCX Clarity including: power

density of 3.1kW/L, an increase of

60%, with the stack size reduced

33%, a driving range of over 300

FUTURE POWER

© Airbus S.A.S. 2011

PAGE 105

miles, space for five people, new

styling and a power source that can

potentially be used to power other

things and not just the car’s electric

motor.

The company said in a statement:

“Honda has led the industry

for nearly two decades in the

development and deployment

of fuel-cell technology through

extensive real-world testing,

including the first government fleet

deployment and retail customer

leasing program. Since the

introduction of its first generation

fuel-cell vehicle, the FCX, in 2002,

Honda has made significant

technological advancements in fuel-

cell vehicle operation in both hot and

sub-freezing weather while meeting

customer expectations and safety

regulations.”

Of course, with any type of ‘new

energy’ there are critics, and right

now they have a strong case.

Currently, there is not a proper

hydrogen refuelling infrastructure,

even in ‘green areas’ such as Los

Angeles. Filling with hydrogen is still

fairly expensive; in the US it costs

about the same to fill the tank of

the FCX as it does to fill with petrol.

Hydrogen is not available in its pure

form anywhere in the world so needs

to be treated before it can be used

as a fuel – an energy intense, costly

process. The FCX Clarity and FCV

are still to be made from steel where

production is not exactly ‘green’.

The price of the FCV is still unknown

but it is likely to be expensive

because the technology is so

advanced. Hydrogen cars have been

investigated for decades and have

always been called the future but still

there has not been a breakthrough

into mass production and use. But it

seems that these are only temporary

hurdles; after all, in the early years of

the petrol car, there were not many

filling stations, there were not many

scientists producing v-power, early

cars were big and clunky and not

overly easy to handle, but everything

develops and with the demands

on hydrogen from other industries,

it seems that this is a fuel that will

develop quickly, becoming more and

more efficient all the time.

So, as we approach that day

when the oil eventually does run out,

is hydrogen the answer? Are Honda

on the right track? Right now there

is not another vehicle that fits in with

modern life that is 100% emission

free. And as Leno said on Top Gear,

“It will save the petrol, it will save

the sports car. You can go out at

the weekend and use your MG or

Porsche and have fun and then take

the FCX in the week and put it in the

car park. It’s like how the automobile

was the saviour of the horse. Horses

would be whipped and die and

then the car came along and freed

the horse for recreational use and I

think these types of cars will be the

saviours of our sports cars.”

PAGE 106

©Lykovata/ShutterStock

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PAGE 107

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TYCO UAE FINAL F P Advert_Layout 1 24/05/2012 13:32 Page 1