Activity report

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2013
ACTIVITY REPORT
Activity report
2013
CONTENTS
P2
GEOSTOCK Activity report 2013
GEOSTOCK Activity report 2013
CONTENTS
P3
CONTENTS
600
GEOSTOCK and UNDERGROUND
STORAGE match well together
and we want it to continue.
Since its incorporation in 1965,
Geostock has shown a continuous,
sustained but controlled growth.
Under Geostock Holding, a network
of companies was formed and
our business has extended to five
continents as outlined by our
realizations and key figures.
This growth, whether in terms
of turnover or resources, is based
on values that we are deeply
committed in; all expressed with
a single watchword: CONFIDENCE.
staff
worldwide
Presence in
25
countries
89.7 M€
430
Consolidated
Turnover
HSE checks
P 4
A word from the presidents
P 6 Group structure
P 12 Key figures & human resources
P 14 Companies' activity
P 7
Health, Safety and Environment
P 24 Research & Development
P 8
Worldwide footprint
P 26 Contacts
P 10 Excellence in Underground storage
A WORD
FROM THE
PRESIDENTS
P4
GEOSTOCK Activity report 2013
DOMINIQUE BOUVIER
PRESIDENT AND CEO OF ENTREPOSE CONTRACTING SAS
CHAIRMAN OF GEOSTOCK HOLDING SA
In 2013, Geostock pursued
a strategic plan based upon three
continents: Europe, North America,
and Asia.
In Europe, the effect of a difficult
economic environment with its
consequence on energy demand
has impacted Geostock but only to
a limited extent thanks to the agility
and reactivity of its teams.
In Asia, Geostock has confirmed its
position as a key player in both of
its core businesses: “engineering”
and “management and technical
operatorship” of underground
facilities.
In North America, new markets
have opened up to Geostock as
a result of last year’s investment,
whilst at the same time the
company is reorganizing itself
in order to keep pace with
the gas and energy revolution.
Geostock relies upon the
professional attitude of its
employees and the active
and significant support of
its shareholders.
Entrepose Contracting and
Vinci have expressed their
readiness to support Geostock
in new acquisitions, which
will speed up and consolidate
its development, and Total
concurs with this strategy.
“Geostock
will speed up
and consolidate
its development”
GEOSTOCK Activity report 2013
P5
A WORD
FROM THE
PRESIDENTS
JEAN-MICHEL NOÉ
CEO OF GEOSTOCK HOLDING
PRESIDENT AND CEO OF GEOSTOCK SAS
2013 was a year of many contrasts
in the performance of the various
Geostock Group entities.
Geostock SAS saw
a best-historical year record,
with significant growth both
in terms of turnover and profit,
and many commercial successes.
Similarly, Sandia Technologies ‑
a recent addition
to the Group ‑ and
Geogreen performed well.
Owing to staff dedication and
shareholder confidence, Geostock
starts 2014 with the strong
conviction that it has the ability
to steer its way – sometimes
through stormy waters – and
pursue successful development.
In Asia, where demand is booming,
Geostock Asia pursued its objective
of building in-house capabilities
in order to carry out all projects
in-depth, with back-up from
Geostock expertise. Geostock Asia
continues with rapid growth.
But there is a less positive side:
UGS suffered the postponement
of many projects and had
a difficult year,
●● Geomethane – 15% owned by
Geostock, through Geosud – did
not find customers for the entire
natural gas storage capacity it
offers in Manosque (France),
and consequently results were
less favourable than in 2012,
●● Geostock US and Geostock Iberia
encountered a sluggish market.
●●
Within this context,
the Group managed to achieve
a satisfactory year thanks to its
recurrent values: HSE, quality,
professionalism, client-oriented
attitude, long-term vision and
solidarity.
“Geostock SAS
saw a
best-historical
year record”
INTERNATIONAL
GROUP
P6
GEOSTOCK Activity report 2013
GROUP STRUCTURE
90%
10%
VINCI group
100%
100%
35%
100%
100%
100%
100%
95.5%
70%
60%
30%
50%
GEOSTOCK Activity report 2013
HEALTH,
SAFETY AND
ENVIRONMENT
P7
HEALTH, SAFETY
AND ENVIRONMENT
HEALTH, SAFETY, SECURITY AND ENVIRONMENTAL PROTECTION
IS A PRIORITY POLICY FOR GEOSTOCK IN ALL ITS ACTIVITIES.
Geostock HSE permanent
objectives are:
No Lost Time Accident
No Major Incident
●● No Environmental Damage
●●
●● Regular HSE audits and
inspections on construction &
operation sites, HSE events analysis
and promotion of their feedback.
●●
Consequently, HSE concerns
have to be taken into account in
engineering, construction and
operation activities carried out by
all the Geostock Group companies.
To achieve this goal, Geostock has
implemented a HSE Management
System including in particular:
●● Top Management involvement,
the follow-up of actions plans and
HSE indicators,
●● Regular HSE training courses,
HSE communication, Risks analysis
for new projects,
●● Implementation of curative &
preventive maintenance programs,
follow-up of subcontractor
performance, regularly tested
contingency plans, HSE regulation
monitoring and implementation
in engineering, construction and
operation activities,
In 2013 the following main action
was undertaken by Geostock
Group HSE Coordination:
●● Update of HSE procedures
to standardize Geostock’s good
practices, specifically with regard
to HSE rules for drawing up
subcontractors’ contracts,
●● Planning of workshops with
Project Managers and HSE
engineers in order to take HSE
concerns into account during
all project development phases,
●● Implementation of the HSE audits
program: development of common
practices between Geostock and
UGS HSE engineers, increasing
Top management HSE visits to sites
operated by Geostock,
●● Success in the HSE audit of DNV
(Det Norske Veritas) - ISRS v7
(International System Rating in
Safety) carried out at the Lavera
site operated by Geostock,
●● Re-audit of the SCC** certificate,
GEOSTOCK GROUP HSE STATISTICS
YEAR 2013
Man-hours worked by company staff
(excluding subcontractors)
866 000 hours
HSE trainings sessions
267 sessions
Job safety analysis / HAZOP or HAZID reviews
106 analyses
Number of HSE audits or inspections
430 checks
2011 version (on HSE items)
at three sites operated by UGS.
●● Contingency plans updated and
tested to deal with any hazardous
situation occurring on a site
operated by Geostock. Three drills
were held by activating the Crisis
Centre at Geostock headquarters.
●● Re-enforcement of HSE regulation
follow-up,
●● Several workshops planned to
improve the HSE performance
of subcontractors at sites operated
by Geostock.
●● Daily last minute risk analysis
before starting each shift for
operational staff working at
each site.
“Spray
water
system”
Confining
a lea
k
INTERVENTIONS
P8
GEOSTOCK Activity report 2013
WORLDWIDE
FOOTPRINT
GEOSTOCK IS INVOLVED IN THE VARIOUS PHASES
OF NUMEROUS UNDERGROUND STORAGE PROJECTS
AND HAS BEEN PRESENT IN 25 COUNTRIES
IN THE WORLD IN 2013.
Algeria
The Netherlands
Argentina
Portugal
Australia
Russia
Belgium
Sweden
Brazil
Singapore
China
South Korea
France
Spain
Germany
Turkey
India
United Kingdom
Italy
United States of America
Japan
Venezuela
Mexico
Vietnam
Morocco
GEOSTOCK Activity report 2013
P9
INTERVENTIONS
EXCELLENCE IN
UNDERGROUND
STORAGE
P 10
GEOSTOCK Activity report 2013
EXCELLENCE IN
UNDERGROUND
STORAGE
GEOSTOCK IS AN INTERNATIONAL ENGINEERING GROUP AND
A KEY PLAYER IN THE UNDERGROUND STORAGE OF LIQUID,
LIQUEFIED AND GASEOUS HYDROCARBONS (AND OTHER
PRODUCTS SUCH AS COMPRESSED AIR, CO2 AND HYDROGEN).
Founded in 1965, the company has acquired
unique know-how in its field. Whatever
the products stored or the techniques used,
Geostock’s expert knowledge enables it to
provide high quality services and solutions
at the forefront of technology.
Geostock can rely on its network of
companies to propose a global offer
throughout the underground storage chain:
consultancy & engineering, construction
management, operation & maintenance,
as well as a targeted offer tailored to the
needs of the customer, who receives its
support right from the start of the project.
Scope of services
ECONOMIC STUDIES
Market survey and
evaluation, planning
studies, economic
feasibility assessment,
due diligence, business
models evaluation
DESIGN
Project planning,
site selection, feasibility
studies, exploration,
reservoir engineering,
permitting, conceptual
& basic design, modelling
CONSTRUCTION
Engineering, detail design,
tendering, procurement,
construction management,
commissioning and start-up
OPERATION
Storage facility
management, operation
& maintenance, technical
assistance to operation,
organisation and
safety audits,
training of operators,
operation and
maintenance procedures
and documentation
DRILLING, WORKOVER
AND SOLUTION MINING
Drilling, well logging, well
completion, workovers,
solution mining, brine, CO2
and effluents disposal in
deep aquifers, operation
of leaching plants
MAINTENANCE
AND REVAMPING
Maintenance,
revamping, upgrading
to new regulations and
standards, performance
enhancement, risk analysis,
Well Integrity Management,
Asset Integrity Management
DECOMMISSIONING,
CLOSURE AND
ABANDONMENT
GEOSTOCK Activity report 2013
EXCELLENCE IN
UNDERGROUND
STORAGE
P 11
The combined skills and expertise of its companies enable
the Geostock Group to offer its services worldwide, in all types
of underground storage facilities for a full range of products.
All techniques, all products
LEACHED SALT
CAVERNS
AQUIFERS AND
DEPLETED FIELDS
Natural gas,
Liquid hydrocarbons,
Liquefied hydrocarbons,
Compressed air,
Hydrogen,
Effluents.
Natural gas,
Compressed air,
CO2,
Effluents.
Geostock
and UGS are
ISO 9001
quality certified
MINED ROCK CAVERNS
(LINED OR UNLINED)
AND DISUSED MINES
Natural gas (compressed of liquefied),
Liquid hydrocarbons,
Liquefied hydrocarbons.
for their storage engineering,
operational activities
and underground
technologies services.
KEY FIGURES
P 12
GEOSTOCK Activity report 2013
KEY FIGURES
KEY
GroupFIGURES
consolidated
KEY
FIGURES
KEY
FIGURES
KEY
KEY
FIGURES
FIGURES
turnover
(k€)
Main contributors
GEOSTOCK SAS (FRANCE)
2,470
2,470
2,470
Net Income (k€)
51
2,962
2,962
2,962
3,547
51 51
51
51 51 2,962
51
3,547
3,547
2,962
3,547
2,962
3,592
3,592
3,592
3,592
3,547
3,547
3,607
3,607
3,592
3,592
3,607
3,502
3,547
3,607
2,962
3,502
3,502
3,607
3,607
3,502
3,592
2,471
3,607 2,471
3,502
2,471 3,502
1,845
2,471
1,845
1,845
2,471
29,614
1,845
1,845
1,845
3,502
2,471
1,8452,471
29,614
42,291 29,614
29,614
42,291
42,291
29,614
29,614
42,291
42,139
42,139
42,139
42,291
42,291
42,139
37,931
37,931
42,139
37,931
42,139
42,402
42,291
37,931
29,614
42,402
42,402
37,931
37,931
42,402
40,428
40,428
42,402
42,402
40,428
37,931
44,095
42,139
40,428
44,095
44,095
40,428
40,428
44,095
28,488
42,402
0
2006 2007 2008
2006 2007 2008
0 2009 2010 2011 2012 2013
0 2009 2010 2011 2012 2013
2006 2007 2008 2009 2010 2011 2012 2013
2006 2007 2008 2009 2010 2011 2012 2013
50,000
4,000
50,000
4,000
50,000
4,000
50,000
50,000
4,000
4,000
3,500
3,500
40,000
40,000
3,500
3,500
3,500
3,000
3,000
40,000
40,000
40,000
3,000
3,000
3,000
2,500
2,500
30,000
30,000
2,500
2,500
2,500
30,000
2,000
30,000
30,000
2,000
50,000 20,000
4,000
2,000
2,000
2,000
20,00050,000
1,500
1,500 4,000
3,500
20,000
20,000
20,000
1,500
1,500
1,500
1,000
40,000 10,000
1,000 3,500
3,000
10,00040,000
1,0003,000
1,000
1,000
500
500
10,000
10,000
10,000
2,500
30,000
5002,500
5000 500
0 030,000
0 2007 2008 2009 2010 2011 2012 2013
20062006
20072007
20082008
20092009
20102010
20112011
20122012
20132013
2006
2006 2007 2008 2009 2010 2011 2012 2013
2,000
0 0 0 2006 2007 2008 2009 2010 2011 2012 2013
0 00
2,000
20062007
20072008
20082009
20092010
20102011
20112012
20122013
2013
20062006
20072007
20082008
20092009
20102010
20112011
20122012
20132013
2006
2006
2007
2008
2009
2010
2011
2012
2013
20,000
1,500
20,000
1,500
1,000
10,000
1,000
10,000
500
500
0
0
2006 2007 2008
2006 2007 2008
0 2009 2010 2011 2012 2013
0 2009 2010 2011 2012 2013
2006 2007 2008 2009 2010 2011 2012 2013
2006 2007 2008 2009 2010 2011 2012 2013
0 0
0 2006 2007
0 02006
2007 2008
2008 2009
2009 2010
2010 2011
2011 2012
2012 2013
2013
20062007
20072008
20082009
20092010
20102011
20112012
20122013
2013
20,000
2006
2006
2007
2008
2009
2010
2011
2012
2013
2006 0 2007
2006 2008
2007 2009
2008 2010
2009 2011
2010 2012
2011 2013
2012
2,470
2,470
2,470
1,535
1,535
1,535
1,741
1,535
1,814
1,814
1,814
1,741
1,741
1,856
1,856
1,814
1,814
1,856
1,418
1,418
1,856
1,4181,856
1,741
2,470 1,741
1,535
1,741
1,535
1,814
1,856
1,535
1,418 1,741
1,483
1,483
1,418
1,418
1,483
1,856
1,751
1,483 1,814
1,751
1,751
1,483
1,483
1,751
48,794
48,794
48,794
44,385
44,385
48,794
48,794
44,385
41,348
41,348
44,385
44,385
41,348
36,264
36,264
41,348
36,264
41,348
1,751
1,751
1,751
1,483
48,794
44,385
41,348
48,794
36,264
33,311
33,311
36,264
36,264
33,311
30,678
30,678
33,311
33,311
30,678
44,385
33,311
41,348
30,678
26,379
26,379
30,487
26,379
30,487
30,487
30,487
30,678
30,678
30,487
30,48736,264
26,37933,311
26,379
26,379
30,678
30,487
26,379
89,744
Turnover (k€)
0
2013
12,249
12,249
12,249
12,249
12,249
13,744
12,249
13,744
13,744
13,744
13,744
13,744
11,972
13,744
11,972
11,972
11,972
11,972
11,972
0
2,500
2,500
2,500
2,5002,500
2,000
2,000
2,000
2,0002,000
1,500
1,500
1,500
1,5001,500
1,000
1,000 2,500
1,000
1,0001,000
500 500 2,000
500
500 500
0 0 1,500
20062006
20072007
20082008
20092009
20102010
20112011
20122012
20132013
0 0 0 2006 2007 2008 2009 2010 2011 2012 2013
20062006
20072007
20082008
20092009
20102010
20112011
20122012
20132013
1,000
500
UGS GmbH
(GERMANY)
500
10,000
28,488
40,428 28,488
28,488 44,095
44,095
20,000
20,000
20,000
20,000
20,000
40,000
40,000
20,000
10,000
44,09528,488
28,488
49,511
49,511
60,000
60,000
60,000
60,000
60,000
80,000
80,000
50,000
50,000
50,000
50,000
50,000
40,000
40,000
40,000
40,000
40,000
30,000
30,000
30,000
30,000
30,000
50,000 20,000
2,500
20,00050,000
20,000
20,000
20,000
40,000 10,000
2,000
10,00040,000
10,000
10,000
10,000
30,000
1,500
0 030,000
20062006
20072007
20082008
20092009
20102010
20112011
20122012
20132013
0 0 0 2006 2007 2008 2009 2010 2011 2012 2013
2006
2006
2007
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
20,000
1,000
20,000
28,488
49,511
49,511
49,511
49,511
49,511
78,953
80,000
80,000
80,000
80,000
80,000
10,0000
10,0000
40,000
40,000
40,000
40,000
40,000
60,000
60,000
65,100
78,953
65,100
65,100
65,100
65,100
65,100
80,986
65,100
80,986
80,986
80,986
80,986
80,986
78,659
80,986
78,659
78,659
78,659
78,659
78,659
83,729
78,659
83,729
83,729
83,729
83,729
83,729
88,739
83,729
88,739
88,739
88,739
88,739
89,744 88,739
88,739
89,744
89,744
89,744
89,744
89,744
78,953
78,953
78,953
78,953
78,953
10,0000
10,0000
10,0000
10,0000
10,0000
Net Income (k€)
1,418
KEYKEY
FIGURES
FIGURES
Turnover (k€)
Others
Others
0
11,972
12,249
11,406
7,626
3,100
3,100
3,100
3,100
3,100
3,100
7,626
3,100
1,954
1,954
1,954
1,954
1,954
1,954
1,954
1,646
1,646
1,646
1,646
1,646
1,646
1,646
7,626
7,626
7,626
7,626
7,626
11,406
11,406
11,406
11,406
11,406
11,406
Group cash after long term
Group
line 12%
3%3%
2%2% sales by product
12%
15,000
3% 62%
62%
2%66%
14%
3%3%
15,000
66% 17%
48%
14% 2%2%
17%
12%
12%
12%
48%
62%
62%
62%
15,000
66% income)
15,000
66%
66%
14%of gross
17%
14%
14%
17%
17%
debts (k€)
(%
48% 15,000
48%
48%
21%
21%
21%
21%
21%
17%
17%
12,000
12,000
3%
2%
17%
17%
17%
12%
12,000
12,000
12,000
3%
62%
18%
15,000
66%2% 17%
12%
14%
18%
48%
62%
15,000
66%
14%
48%
18% 17%
18%
18%
19%
21% 19%
21%
19%
9,000
19%
19%
9,000
9,000
9,000
9,000
17%
2011
2012
2013
2011
2012
2013
12,000
17%
12,000
2011
2012
2013
2011
2011
2012
2012
2013
2013
18%
18%
Liquefied
Hydrocarbons
6,000
Liquefied Hydrocarbons
6,000
19%
Liquefied
Hydrocarbons
6,000
19%
Liquefied
Liquefied
Hydrocarbons
Hydrocarbons
6,000
9,0006,000
9,000
2011Liquid
2012
2013
Hydrocarbons
Liquid
Hydrocarbons
2011Hydrocarbons
2012
2013
Liquid
Liquid
Liquid
Hydrocarbons
Hydrocarbons
3,000
3,000
3,000
3,000
Natural
GasGas
Liquefied
Hydrocarbons
6,0003,000
Natural
Liquefied
Hydrocarbons
6,000
Natural
Gas
Natural
Natural
GasGas
Others
Liquid Hydrocarbons
0 0
Others
Liquid Hydrocarbons
Others
Others
Others
0 2006 2007
0 02006
2007 2008
2008 2009
2009 2010
2010 2011
2011 2012
2012 2013
2013
3,000
20062007
20072008
20082009
20092010
20102011
20112012
20122013
2013
2006
2006
2007
2008
2009
2010
2011
2012
2013
3,000
Natural GasNatural Gas
2006 0 2007
2006 2008
2007 2009
2008 2010
2009 2011
2010 2012
2011 2013
2012
2013
GEOSTOCK Activity report 2013
HUMAN
RESOURCES
P 13
300
250
250
200
200
150
150
100
100
50
50
0
2011
2012
0
2013
HUMAN RESOURCES
Geostock
UGS
Other companies
Engineering
Operation
Well services
Administration and support services
535
553
560
550
465
500
437
600
504
Consolidated group
headcount at end of year
2010
2011
2012
2013
400
300
200
100
0
2007
2008
2009
Headcount per activity
at end of year
RA 2013
300
300
250
250
250
250
200
200
200
200
150
150
150
150
100
100
RA 2012
100
100
50
50
00
Headcount per company
at end of year
50
50
2011
2011
2012
2012
2013
2013
Engineering
Engineering
Operation
Operation
Well
Well services
services
Administration
Administration and
and support
support services
services
00
Geostock
Geostock
UGS
UGS
Other
Other companies
companies
COMPANIES'
ACTIVITY
P 14
GEOSTOCK Activity report 2013
GEOSTOCK
IN A MARKET WHICH IS INDEED VERY UNCERTAIN AND NOT EASILY
PREDICTABLE, IT IS IMPORTANT TO OFFER THE HIGHEST FLEXIBILITY.
THIS OBJECTIVE IS ACHIEVED BY GEOSTOCK GROUP COMPANIES
WITH AN OFFER ENCOMPASSING EVERY PHASE OF A PROJECT –
FOR BOTH GRASS-ROOT PROJECTS AND AGEING FACILITIES.
FURTHERMORE, GEOSTOCK IS SKILLED IN ALL TYPES OF
UNDERGROUND STORAGE TECHNOLOGIES, USING THEM FOR
ALL TYPES OF PRODUCTS.
LAST BUT NOT LEAST, GEOSTOCK CAN CLAIM SIMULTANEOUSLY
INTERNATIONAL REACH AND LOCAL PRESENCE WORKING CLOSE
TO ITS CUSTOMERS.
Engineering
& Construction
Despite the difficult international economic context,
Geostock’s turnover in 2013 is the highest in its history.
Activity remained sustained
in Europe in 2013, mainly due
to previously planned projects
being on-going.
In the United Kingdom, Geostock
has completed the debrining
of the eight caverns at Holford
for E.ON UK and is now providing
technical assistance for Operation
& Maintenance of the storage.
Geostock is also providing technical
support to EDF for its two
underground gas storage projects
in salt caverns at Hole House and
Hill Top.
In France, Geostock's main activity
has been the leaching of the two
new diesel oil caverns at Geosel
for Sagess (one of which being
completed) as well as two new
gas caverns for Geomethane
and associated engineering of
surface facilities.
In Portugal, Geostock has provided
technical assistance to operations
for the development of the
underground gas storage project
in salt caverns at Carriço for REN,
where a sixth cavern is being
leached.
At the frontier of Europe, in Turkey,
Geostock provided support for
TPAO with the extension of surface
and subsurface facilities at their
Kuzey Marmara underground
storage unit in a depleted reservoir.
In Morocco, Geostock is deeply
involved in the engineering and
construction of the third LPG
salt cavern at Sidi Larbi for
Somas that has been successfully
commissioned this year.
In Asia where activities have
increased extensively over the past
few years, Geostock has provided
support to Geostock Asia’s main
projects: the LPG mined rock
cavern projects at Yantai for
Wanhua and at Qingdao for Dragon
Gas, liquid hydrocarbon storage
20 %
Décomposer l’objet
GEOSTOCK Activity report 2013
project in mined rock caverns for
CPPE, underground gas storage
project near Beijing in a depleted
reservoir and at Jintan in salt
caverns for Petrochina.
At year-end Geostock was awarded
an important contract in Singapore
for the Operation & Maintenance
of the Jurong Rock Cavern liquid
underground storage in mined
caverns for JTC. This contract is
an important success for Geostock,
which will operate the underground
storage facility for 15 years, in
partnership with Vopak Terminals
Singapore and JCPL. It is in line
P 15
with our strategy to boost our
activity in Asia and to develop
services around the Engineering
& Operation duality.
Geostock also worked in Japan for
JOGMEC to supervise the start-up
of the LPG strategic underground
storage facilities in mined rock
caverns at Namikata and Kurashiki,
which are now in operation with
a technical support provided by
Geostock.
COMPANIES'
ACTIVITY
mined rock caverns at Mangalore
for EIL.
In Brazil, Geostock has been
awarded a contract for the
engineering of an exploration well
to further study the feasibility of
an underground gas storage facility
in salt caverns for Stogas.
In India, Geostock is preparing the
commissioning of a strategic crude
oil underground storage project in
Operation
In France, Geostock manages and
operates the Geosel underground
storage facility in salt caverns at
Manosque which also required
major engineering activity in 2013
as well as construction work to
modernize the installations.
Geostock is also operating the FosManosque pipeline for Sagess.
At Lavera for Geogaz, Geostock
manages and operates the LPG
underground storage facility
in mined caverns and has also
been involved in engineering and
construction works.
“Highest
turnover
in Geostock's
history”
Geostock has provided technical
assistance to Shell for engineering
and construction works related
to the autonomy of their LPG
underground storage facility in
mined caverns from the adjacent
refinery at Petit-Couronne and
continues to provide technical
assistance to Sennecey and Donges
storage facilities.
Outside France, Geostock has
maintained sustained activity by
providing technical assistance to
operations of underground storage
facilities in South Korea for E1 and
SK Gas, in India for SALPG ,
in Australia for Elgas, in Japan for
JOGMEC and in Portugal for Sigas.
In Belgium, Geostock continued
to provide technical assistance
to Fluxys for the operation of its
natural gas underground storage
facility at Loenhout.
COMPANIES'
ACTIVITY
P 16
GEOSTOCK Activity report 2013
UGS
UGS ACTIVITIES WERE IMPACTED BY A SEVERE SLOWDOWN IN THE
GERMAN UNDERGROUND STORAGE MARKET LEADING TO STRONGER
COMPETITION AND THE POSTPONEMENT OF INVESTMENT DECISIONS.
FOR UGS THIS RESULTED IN A DELAY IN THE START-UP OF SEVERAL
SIGNIFICANT CONTRACTS THAT HAD ALREADY BEEN SIGNED.
However, in this difficult
context, UGS managed to
keep the year profitable.
The geothermy and the CO2
sequestration markets were at
a full-stop.
The bulk of the year’s activities
consisted in the completion of
existing construction projects,
studies and well services of limited
extent and storage operation
services.
An important event in 2013
is worth mention: Klaus Ziegler
took retirement. Klaus Ziegler
spent all his professional life
with UGS and had been technical
general manager since 2000.
His successor, from February
1st, 2013, is Robert Scheler.
Highlights amongst UGS projects
for 2013 were participation,
together with Geostock and
Geostock Iberia, in FEED (Front
End Engineering Design) studies
for a grass-root natural gas storage
project in salt caverns in Catalunia
(Spain) and leaching engineering
and operation services at Jemgum
for Astora. Activities relating to the
VNG/Gazprom Katharina Project
involved surface engineering design
activity and, by the end of the year,
the drilling of two wells and the
completion of two cavern wells.
UGS opened a branch office
in Turkey, which is seen as a
promising future market.
The first project will be an
engineering contract for the
extension of the gas plant at
the Degirmenköy-Kuzey Marmara
storage facility, awarded by TPAO
to UGS/Geostock and due to start
in January 2014.
Some mature construction projects
(Kraak, Rüdersdorf, Epe Trianel,
Empelde) reached completion.
Services in the field of welded
casings and completion installation
performed satisfactorily, including
on international markets.
UGS initiated the move from on-site
to remote operation of the EdF/
EnBW Crystal storage facility in
Etzel. The facility is now operated
from a new control room installed
in the UGS buildings in Mittenwalde.
UGS successfully passed QHSE
and SCC renewal audits and was
re-certified by TÜV for three years.
Engineering
& Construction
SALT CAVERNS
Bernburg (VGS): re-vamping
of one cavern. In May, UGS was
awarded an engineering studies
contract for the gas facility,
gas completion installation and
first gas filling of two caverns
for the VNG/Gazprom Katharina
Project (ten new caverns by 2022).
●● Bad Lauchstädt (VGS):
continuation of the development
plan (four to six new caverns);
leaching supervision of
two caverns, revamping of
two existing caverns.
●●
●● Ellenberg (GdF-Suez ESD):
termination of first gas filling
of one cavern, leaching, preparation
and first gas filling of the last
cavern included in the current
development stage; completion
of the extension of the gas facility
and provision of services for
commissioning and start-up and
for gas operation.
●● Epe (E.ON Gas Storage):
conversion of the last of four
caverns to gas storage
●● Kraak (E.ON Hanse): completion
of decommissioning of the leaching
GEOSTOCK Activity report 2013
P 17
infrastructure (facility and brine
injection wells). Upgrading of
the surface facility.
●● “Berlin Project” (Catalunia) for
Gas Natural: completion of a
FEED for a grass root natural gas
storage facility in salt caverns,
in cooperation with Geostock
and Geostock Iberia. UGS was
responsible for the leaching and
gas plant.
●● Design review for a grass-root
twelve caverns natural gas storage
facility in Turkey, near Tarsus
●● Orientation studies for CO
2
and CAES projects
RESERVOIR STORAGE
●● Hinrichshagen: design of
the abandonment scheme
of the exploration wells, to be
implemented in 2014.
WELL SERVICES
●● Drilling of two wells and
completion of two cavern wells
at Bernburg
●● Epe (SGW): preparation works and
rig installation for the 2014 drilling
campaign (seven wells),
COMPANIES'
ACTIVITY
●● Leaching string moves,
workovers, caverns completion,
plugging and abandonment
operations at Jemgum, Nüttermoor,
Ellenberg, Bad Lauchstädt, Gnetsch,
Epe and on a geothermal well
in South Tyrol (Italy)
●● Ohrensen (DOW): subsurface
engineering services in line
with the UGS long term business
development plan. Planning and
supervision of Plugging
& Abandonment operations for
fifteen production wells for GdF
Suez E&P, Lingen.
●● Welded tubulars, welded
completion, spider plug, field
services and testing activity
in Germany and abroad at
Carriço (Portugal), Stublach (UK),
Zuidwending (NL).
management of reservoir storage
facilities - Allmenhausen (ETE),
Kirchheilingen and Buchholz
(VGS) - and of salt caverns - Epe
(Trianel and Eneco), Etzel (EDF/
EnBW with remote operation from
Mittenwalde), Burggraf Bernsdorf
(small “buffer” storage in a potash
mine for VNG/Ontras).
●● CO injection at Ketzin.
2
OPERATION
●● Leaching of six caverns and brine
disposal at Jemgum (Astora). UGS
was awarded a follow-up contract
for first gas filling and gas operation
after successful completion of the
leaching of the first two caverns.
●● Gas operation: reservoir
Untergrundspeicher und
Geotechnologie Systeme GmbH
“UGS still
profitable
despite a severe
slowdown
in the German
market”
COMPANIES'
ACTIVITY
P 18
GEOSTOCK Activity report 2013
GEOSTOCK IBERIA
IN A SLACK MARKET, GEOSTOCK IBERIA MAINLY
FOCUSED ITS 2013 ACTIVITIES ON ON-GOING
PROJECTS, NAMELY CASTOR FOR ESCAL AND
LES PINASSES FOR GAS NATURAL.
Engineering
& Construction
Finalization of “Les Pinasses”
FEED project, an underground gas
storage facility to be developed
in salt caverns in the Catalonia
region (north eastern Spain) and
promoted by Petroleum Oil & Gas
España, a subsidiary wholly owned
by Gas Natural.
Continuation of technical
assistance provided to Ciuden for
CO2 storage in Hontomín (Burgos
province). Injectivity tests have
been witnessed and interpreted.
20 %
Décomposer l’objet
Assistance provided to Enagas,
for updating and optimization of
the UGS Yela model.
As a subcontractor of Geostock,
Geostock Iberia has also supervised
leaching of the
RENC-6 salt cavern being
developed in Carriço (Portugal)
by Ren for gas storage purposes.
Operation
Geostock Iberia provided
engineering services to Escal
on their Castor UGS:
First gas filling follow-up,
Study of causes of the induced
seismicity which occurred in
Castellón during first gas filling as
well as preparation of a data base
to monitor, in particular pressure
gauge measurements at various
wells and the depth of gas water
contact.
●●
●●
As a subcontractor of Geostock,
issue of seismic monitoring reports
for various mined rock caverns:
Sines (Portugal), Donges (France)
and Elgas (Australia).
GEOSTOCK Activity report 2013
COMPANIES'
ACTIVITY
P 19
GEOGREEN
FOLLOWING DELAYS WITH THE GLOBAL CARBON CAPTURE AND
STORAGE (CCS) MARKET MAINLY DUE TO THE CONSEQUENCES OF
THE ECONOMIC CRISIS, THE THREE GEOGREEN SHAREHOLDERS HAVE
DECIDED TO RESHUFFLE THEIR EQUITY SHARE IN THE COMPANY.
At year end 2013, Geostock therefore held 95.5% (originally 40%) of
the company, while IFP Investissements had a 3% equity (originally 40%),
with BRGM holding the remaining 1.5% (originally 20%). As the major shareholder,
Geostock will back-up Geogreen for a three-year period, at the end of which
shareholders will have the possibility of returning to their original equity
holdings in the company.
Consultancy
& Engineering
Geogreen has experienced its
best year since creation in terms
of gross and net turnover, and
EBITDA. The company’s global
activity was at a high level during
2013, with over 83% of resources
dedicated to active projects.
“A high level
of activity
during 2013”
Among them, the PDVSA project
represents around 80% of the
year’s turnover. In synergy with
Beicip-Franlab of the IFPEN group,
Geogreen has finalized the third
phase of this important project
aimed at designing the EOR-CO2
project in Venezuela for Petróleos
de Venezuela Gas (PDVSA-Gas).
Geogreen has also been contracted
for expertise reviews by Bureau
Veritas in Brazil, and has supported
Geostock North America and
Geostock SAS in various consulting
activities.
These expertise and consulting
activities represented around
10% of the yearly turnover.
The remaining 10% of 2013 activity
was made up of collaborative
research activities in the field of
risk analysis (the MANAUS project
financed by ADEME with partners
BRGM, OXAND, INERIS and
PHIMECA has been finalized), and
the long term fate of injected CO2
(the ULTIMATE project financed
by the European commission with
partners BRGM, BGR, BGS, GEUS,
PHIMECA, TNO, IFPEN) reached
around 25% of fulfilment.
In 2014 Geogreen will offer
services mainly to Geostock group
companies, while at the same time,
consolidating activities in the three
major CCS-related fields: enhanced
oil recovery through CO2 injection
(EOR-CO2), risk analysis of oil and
gas projects containing CO2,
and collaborative research activities
in both France and Europe.
COMPANIES'
ACTIVITY
P 20
GEOSTOCK Activity report 2013
NORTH AMERICA
As a consequence of the “shale revolution”, production of Oil and Gas, and associated products,
such as Natural Gas Liquids, is booming and prices are declining, giving a boost to North American
industries. Furthermore, the USA Oil and Gas production map is being redrawn, to include “newly
producing” states such as North Dakota.
Within this context, there is a crucial need for the development of new infrastructures – pipelines,
terminals and storage facilities – for a wide range of different products.
In the wake of this evolution, there is also a clear need to dispose of effluents.
In order to address the market demand, Geostock is structured under the Geostock North America
banner with two strong entities: Geostock US and Sandia Technologies.
IN 2013 GEOSTOCK US SUFFERED FROM
STAGNATION IN THE STORAGE MARKET,
WITH THE OUTLOOK FOR COMING YEARS
SUGGESTING THAT ACTIVITY IS SET
TO INCREASE SIGNIFICANTLY IN THE WAKE
OF THE “SHALE REVOLUTION”.
Increased interest in energy storage has been also noted and Geostock US
has received enquiries from parties interested in Compressed Air Energy
Storage (CAES); these enquiries are still at a very preliminary stage.
20 %
Décomposer l’objet
Consultancy & Engineering
Among various studies,
it is worth mentioning:
●● For the Texas Brine Bayou Corne
sinkhole case, work performed
in 2012 continued with mapping
of the west flank of the dome.
Geomechanical modelling was
done for both the suspect cavern
and neighbouring caverns to
determine overall field stability.
●● A study was performed to convert
a deep ethane mined cavern in
Iowa into a butane storage facility.
Since preliminary results indicated
the feasibility of the operation,
a further study is ongoing to select
the optimum solution. As soon as
the concept has been approved
by the client, Geostock US will be
asked to design and implement
modifications to the facility.
●● A hydrogeological investigation
by drilling a monitoring hole close
to an ethane cavern at Morris
in Illinois was started in 2013 but
postponed to the first quarter of
2014 due to well drilling issues.
A multi-field reservoir Gas in Place
(GIP) study for Oneok in Oklahoma
and Texas is on-going. As a result,
recommendations were made to
carry out well testing in some of
●●
Well services
Ongoing operations have been
performed at Pine Prairie and
Southern Pines in Louisiana where
two Mechanical integrity tests
(MIT) were carried out in 2013.
On the other hand, a recompletion job was carried out
on one of Enstor’s observation
wells in Texas.
the fields in order to refine
the reservoir model as well
as a geological review of
the Depew field.
Geostock US has been required
to provide support to Geostock
for the drilling of an offshore
exploration well in salt dome
for Stogas in
Brazil.
GEOSTOCK Activity report 2013
P 21
COMPANIES'
ACTIVITY
SANDIA TECHNOLOGIES, LLC CONTINUED TO PROVIDE
SERVICES TO CORE CLIENTS WHO USE INJECTION
WELLS IN A MARKET THAT REMAINS BUOYANT.
Major projects were successfully completed for several clients
who refurbished existing wells that were not performing or had failed
the required mechanical integrity testing. Sandia staff also completed and
submitted the required state permit and federal petition documents,
on behalf of clients using injection wells.
A major Department of Energy project, in conjunction with an E&P client,
was begun in Louisiana. The project will convert three producing wells into
monitor wells and install an injection well as part of a larger carbon capture
and sequestration project to study carbon dioxide injected into deep
porous media formations.
Engineering
●● LyondellBasell-Channelview:
Texas Commission on
Environmental Quality (TCEQ)
permit renewal has been
completed, submitted, and
approved
●● DuPont-LaPorte: TCEQ permit
renewal has been completed,
submitted, and approved;
PCS Nitrogen-Geismar: Design of
a new well, permitting and start
of petition work;
●● Blackhorse Energy-Livingston:
Design and planning of a Carbon
capture and sequestration project.
Well services
●● DuPont-DeLisle: Major rework
of an injection well which failed
a mechanical integrity test;
●● Ticona-Bishop: Major rework
of two injection wells that failed
mechanical integrity testing;
●● ArcelorMittal-Burns Harbor: Major
rework of an injection well that lost
mechanical integrity.
Operation
A second well has been drilled and
continuously cored through the
Stockton formation, for the Newark
Basin Characterization project.
Sandia
Technologies
COMPANIES'
ACTIVITY
P 22
GEOSTOCK Activity report 2013
The Underground Storage scene in Asia remained extremely dynamic
in 2013 with a large share of the activity taking place in China.
This activity is driven mainly by Mined Rock Cavern projects:
For Oil, as part of Strategic Petroleum Reserves;
●● For LPG, as feedstock for the Petrochemical Industry.
Some Natural Gas-related activity, again in China, is also likely to increase rapidly:
●● A few salt locations
●● More projects in porous media, but room for consultant involvement is more limited
due to existing Reservoir Engineering capabilities within the main Oil & Gas companies.
●●
GEOSTOCK ASIA
ANOTHER YEAR OF SUSTAINED ACTIVITY FOR
GEOSTOCK ASIA IN 2013, SIGNIFICANTLY HIGHER THAN
IN THE PRECEDING YEAR WITH A TURNOVER INCREASE OF
THE ORDER OF 50% ABOVE THE PREVIOUS YEAR.
More importantly, Geostock Asia successfully implemented its plan to step-up its
recruitment effort in 2013: the underground technologies team is now about complete
with the main disciplines of Geosciences available in-house.
An important training programme is underway to ensure that the team will be rapidly operational.
Main projects
The construction of the Wanhua
project in Yantai, a 1 million m3
LPG storage facility in Mined Rock
Caverns, has progressed according
to schedule.
Similarly, the construction of the
pilot Mined Rock Cavern project,
part of the confidential China
Strategic Oil Reserve, in which
Geostock Asia is involved, has
progressed significantly.
The prospect of an involvement
of Geostock Asia in the other
pilot Mined Rock Cavern project
presently under construction is
very likely.
A major new contract was secured
in the latter part of the year for
the development of a massive LPG
underground storage project in
Mined Rock Caverns in East China.
The contract consists of the design
and implementation of a Site
Investigation campaign followed
by the preparation of the Basic
Engineering Studies for the project.
It contains a significant volume
of services to be provided on
site, which Geostock Asia’s newly
recruited resources made it
possible to offer. This contract,
which is to be implemented in full
in 2014, will be the first for which
Geostock Asia will be able to carry
out a significant share of
the services contracted, in-house.
Towards the end of the year,
Geostock Asia also entered
into another contract for
the development of an LPG
Underground Storage facility in
Mined Rock Caverns in South Asia.
This much smaller contract consists
of a Prefeasibility Study for the
project, but the prospect is very
promising and a further contract
for Site Investigation and Basic
Engineering Design is likely
to follow suit in 2014.
PETROCHINA- Huabei Oil Fields’
SU 4 project (Hebei province) is
close to completion while two new
Natural Gas Underground Storage
projects in Leached Salt Caverns
were started, for the PETROCHINA
GEOSTOCK Activity report 2013
P 23
50%
“
Turnover
increase”
West-To-East Gas-Pipeline,
in Huaian (Jiangsu province)
and Yunying (Hubei province).
Geostock Asia has also largely
contributed in the tendering
process which led to the award by
JTC on 31st December, 2013,
of the operatorship contract for its
Jurong Rock Caverns (JRC) Phase 1
project at Jurong island (Singapore)
to Banyan Caverns Storage
Services (BCSS), a joint venture
company in which Geostock is a
35% shareholder, along with Vopak
Terminal Singapore, 45%, and
Jurong Consultants, 20%.
Under this contract, which amounts
to about Singapore $200 million,
BCSS will ensure the Operation
& Management of the JRC Phase 1
for a period of 15 years.
The JTC Phase 1 comprises five
caverns for the storage of liquid
hydrocarbons with a combined
capacity of about 1.5 million m3,
with the first two caverns due
to be commissioned in 2014.
Geostock Asia will be providing
Technical Assistance through a
Services Agreement with BCSS
covering the same period of time.
COMPANIES'
ACTIVITY
RESEARCH &
DEVELOPMENT
P 24
GEOSTOCK Activity report 2013
RESEARCH
& DEVELOPMENT
IN 2013, THE GROUP’S RESEARCH & DEVELOPMENT
PROGRAM WAS ACCELERATED IN ORDER TO LAUNCH AND
COMMERCIALISE NEW PRODUCTS DURING THE COMING YEAR.
In France, four items came
to maturity for Geostock:
●● the Well Integrity Management
(WIM) program has been carried
out. Starting with a review of
common practices, regulations
and software, the program
ended up with a comprehensive
approach based on monitoring and
remediation flowcharts that can be
easily converted into a commercial
offer for clients willing to manage
their well integrity. Enlargement
of the approach to salt caverns
is underway and expected to be
operational in 2014.
●● the development of a new
thermodynamic calculations code
has been kicked-off. This code
will simulate salt caverns with gas
and/or brine in order to monitor
and improve gas inventory in salt
caverns. Although both cavern and
well will be taken into account, the
code will remain simple and easy
to use.
●● Geostock also launched the
development of a data base tool
for monitoring the operation
of mined caverns, based on
Soldata – a Vinci Group company Geoscope code and further specific
developments have been carried
out. The code is now customized
for Geostock needs and will be
used for various projects around
the world. Application could be
extended to other types of
storage in the near future.
●● the adiabatic CAES project
continued in 2013. The conceptual
study is currently progressing and
completion is planned for 2014.
A salt cavern in the Manosque area
has been selected as a model for
this study.
GEOSTOCK Activity report 2013
As well as these main research
topics with direct application
to on-going operational and
engineering activities, Geostock
continued its activities in
terms of technical watchdog,
knowledge management, standard
development, experience feedback,
and contributions to International
Underground Storage regulations.
P 25
In Germany, Research &
Development highlights included
hosting at UGS in November
2013 of an official presentation
to the Gas Operators Community
of the UGS new friction welding
prototype and participation with
VNG in the H2 INSPEE Project
(feasibility study for a Hydrogen
pilot storage in Bad Lauchstädt).
For its part, Geogreen was
involved in five Research &
Development projects in 2013:
RESEARCH &
DEVELOPMENT
AMIRAL: analysis of surface
deformations using satellite
imagery
ULTIMATE: over-pressurisation
by CO2 injection in deep aquifers
MANAUS: risks associated with
CO2 injection in deep aquifers
DISS: combination of CO2 injection
with geothermal energy production
COCATE: optimization of transport
and storage for multi-user and
multi-storage projects.
Friction
welding
prototype
CONTACTS
P 26
GEOSTOCK Activity report 2013
CONTACTS
FRANCE
SINGAPORE
USA
GEOSTOCK SAS
GEOSTOCK ASIA Pte Ltd.
GEOSTOCK US, LLC.
Lotfi MOUNEDJI
General Manager
René KLEINENBERG
President
Kurt LOOFF
Vice President Operations
Peter GROSS
Vice President Business
Development
2, rue des Martinets
CS 70030
92569 RUEIL-MALMAISON Cedex
Tel.: +33 1 47 08 73 00
Fax: +33 1 47 08 73 73
www.geostockgroup.com
Jean-Michel NOE
President and CEO
Pascal BAYLOCQ
Executive Vice President
GEOGREEN SA
2, rue des Martinets
CS 70030
92569 RUEIL-MALMAISON Cedex
Tel.: +33 1 47 08 73 00
Fax: +33 1 47 08 73 73
www.geogreen.eu
3 International Business Park
#03-27 Nordic European Centre
SINGAPORE 609927
Tel.: +65 6896 0659
Fax: +65 6563 6839
SPAIN
GEOSTOCK IBERIA SA
c/Francisco de Rojas, 9
- 1a. Izq
28010 MADRID
Tel.: +34 91448 4842-102
Fax: +34 91445 7679
Gilles MUNIER
CEO
Jesús J. ARTIEDA
General Manager
Patrick de LAGUERIE
Vice President Projects
GERMANY
TURKEY
UGS GmbH
GEOSTOCK ANKARA
Matthias HERTER
Robert SCHELER
Senior Managing Directors
Haluk AYDEMIR
Branch Manager
Berliner Chaussee 2
15749 MITTENWALDE
Tel.: +49 337 64820
Fax: +49 337 648280
www.ugsnet.de
c/o OPALIT Tic. ve San. Ltd
Şti. Kırçiçeği S. 13
4 G.O.P ANKARA
Tel.: 90.312. 446 12 77 (3 Hat)
Fax: 90.312. 436 73 56
16420 Park Ten Place Dr.- Suite 450
HOUSTON, TX 77084
Tel.: +1 281 944 3000
Fax: +1 281 944 3042
www.geostockus.com
SANDIA
TECHNOLOGIES, LLC
6731 Theall Road
HOUSTON, TX 77066
Tel.: +1 832 286.0471
Fax: +1 832 286.0477
www.sandiatech.com
Donald STEHLE
CEO
Daniel COLLINS
Secretary and Treasurer
TITRE
20 %
Décomposer l’objet
Design: Dimitri Henchoz Sur Un Nuage - Printing: Cydergies (Imprim’Vert certified)
2, rue des Martinets - CS 70030 • 92569 RUEIL-MALMAISON Cedex • FRANCE
Tel.: +33 1 47 08 73 00 • Fax: +33 1 47 08 73 73 • www.geostockgroup.com