4 October 2021
STATEMENT ON FINAL OUTCOME OF SFO INVESTIGATION
Following the announcement of Friday 1 October 2021, Petrofac Limited (the "Company" or "Petrofac") announces that Southwark Crown Court today imposed a total penalty of GBP 77 million (approximately US$104.6 million at current exchange rates) in relation to seven historic offences of failing to prevent former Petrofac Group employees from offering or making payments to agents in relation to projects awarded between 2012 and 2015, contrary to Section 7 of the UK Bribery Act 2010. All employees involved in the charges have left the business. This concludes the Serious Fraud Office's investigation into the Company.
In determining the penalty, the Court and the Serious Fraud Office acknowledged Petrofac's corporate reform through its transformation of the Company's leadership, personnel, compliance and assurance processes.
The penalty is comprised of the following elements: a confiscation order of GBP 22.8 million payable by 3 January 2022; a fine of GBP 47.2 million payable on 14 February 2022; and the Serious Fraud Office's costs of GBP 7 million payable on 14 February 2022.
Chairman René Médori said: "This draws a line under a regrettable period of our history. We have taken responsibility, reformed and learned from these past mistakes, as acknowledged by the SFO and the Court. Most importantly, the extensive work that we have done since the SFO investigation began means that the Petrofac of today has a comprehensive compliance and governance regime that meets or exceeds international best practice. The past behaviour uncovered by the SFO would not be possible today, and we look to the future a better and more focused company, well positioned to capitalise on the opportunities we see before us."
Group Chief Executive Sami Iskander said: "We are now in a position to put this behind us. This part of our history does not represent the Petrofac of today - a company that as its new CEO I am proud to lead, and which operates upon the core principle of ethical business conduct, supported by a comprehensive governance regime. We have refined our best-in-class delivery capabilities, restructured the business around technical excellence, re-focused on our customers, hired new talent, and further sharpened our cost-competitiveness.
"We emerge from this cloud as the world needs more energy - both traditional energies that can be produced in the most efficient manner, and renewable energies on which a lower carbon world can be built. Petrofac is well positioned to support both, with the capabilities, experience, and expertise to deliver for our expanding customer needs. Our markets in both traditional and new energies are growing and we have a clear path to rebuild our business with a differentiated customer proposition that sets us apart."
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.
1 October 2021
STATEMENT ON SFO INVESTIGATION
Following the announcements issued on Friday 24th September and Monday 27th September 2021, Petrofac Limited (the "Company" or "Petrofac") announces that the sentencing hearing at Southwark Crown Court commenced today and sentencing of the Company for historic offences under Section 7 of the UK Bribery Act 2010 is scheduled to take place on Monday 4th October 2021.
As announced on 24th September, the penalty will be determined at the sole discretion of the Court. The Joint Submission to the Court by the Company and the SFO details a potential penalty of US$240 million prior to the application of any adjustment to the level of fine ("step back"). The Company has made a submission to the Court for a substantial reduction based on alternative approaches to sentencing and its ability to pay. The Court may also take into account the SFO's recognition that Petrofac is a changed company with transformed leadership, personnel, compliance and assurance processes.
The Company will make a further announcement following sentencing.
Petrofac is currently undertaking a comprehensive review of refinancing options to create a sustainable, long-term capital structure with appropriate leverage, liquidity and duration to support the delivery of the Company's strategic plan. This process includes the assessment of all available options including but not limited to revolving credit facilities with the Company's lending banks, accessing public debt capital markets, and additional equity capital, to best position the Company to take advantage of its strong presence in its attractive target markets.
Petrofac has a well-developed, comprehensive compliance and governance regime. This is supported by a dedicated compliance and investigations team, new systems and technologies, mandatory training and a company culture based on ethical business conduct and transparency. Its compliance regime is championed, supported, and overseen at local, divisional and Board level, and supplemented by regular independent audit.
24 September 2021
STATEMENT ON RESOLUTION OF SFO INVESTIGATION
Petrofac Limited (the 'Company' or 'Petrofac') announces that it has reached a plea agreement with the UK Serious Fraud Office (SFO) in relation to its investigation into the Company's historical use of agents.
Pursuant to this plea agreement, the Company has today indicated guilty pleas to seven counts of failing to prevent former Petrofac group employees from offering or making payments to agents in relation to projects awarded between 2012 and 2015 in Iraq, Kingdom of Saudi Arabia and the UAE, contrary to Section 7 of the UK Bribery Act 2010. These offers or payments were made between 2011 and 2017. All employees involved in the charges have left the business.
A sentencing hearing is scheduled to take place at Southwark Crown Court commencing on Monday 27 September 2021. The Company will make a further announcement following sentencing or any adjournment.
The penalty will be determined at the sole discretion of the Court. It may take into account submissions by the Company as to its ability to pay, along with the SFO's recognition that Petrofac is a changed company with transformed leadership, personnel, compliance and assurance processes.
Chairman René Medori said: "This was a deeply regrettable period of Petrofac's history. We are committed to ensuring it will never happen again. We have fundamentally overhauled our compliance regime, as well as the people, and the culture that supports it. Our comprehensive programme of corporate renewal has been acknowledged by the SFO. Petrofac has been living under the shadow of the past, but today it is a profoundly different business, in which stakeholders can be assured of our commitment to the highest standards of business ethics, wherever we operate."
Group Chief Executive Sami Iskander said: "With my new management team we are rebuilding the company into a new Petrofac that's relevant for the future, across both traditional and new energies, built on a foundation of the highest ethical standards."
Petrofac, today, has a well-developed, comprehensive compliance and governance regime. This is supported by a dedicated compliance and investigations team, new systems and technologies, mandatory training and a company culture based on ethical business conduct and transparency. Its compliance regime is championed, supported, and overseen at local, divisional and Board level, and supplemented by regular independent verification. Agents are no longer used other than where required by law and are subject to enhanced audit and additional controls.
3 September 2021
PETROFAC SECURES LIBYA EPCC CONTRACT
Petrofac has secured a contract valued at over US$100 million with Zallaf Libya Oil & Gas Exploration and Production Company, to deliver their Erawin Field Development Project Phase 1 Early Production Facilities.
The Engineering, Procurement, Construction and Commissioning (EPCC) scope of work encompasses surface equipment, including well pads and flowlines at the Erawin oil field, located in southwest Libya. It also includes a pipeline to transport crude oil around 100 kilometres to the El Sharara oil field and a control room, substation and telecom system located there.
Libya holds some of the largest oil reserves in Africa. Zallaf was established in 2013 to develop fields that have been discovered and appraised but not yet produced. It is a 100% subsidiary of the National Oil Company. In addition to this latest contract award, Petrofac is also currently providing Front-End Engineering Design (FEED) and conceptualisation studies, both upstream and downstream, for a number of clients in-country, with wider opportunities to position for EPC delivery.
Elie Lahoud, Chief Operating Officer - Engineering & Construction, commented: "Libya is positioning itself to become a major oil and gas producer again and we're looking forward to helping the National Oil Company achieve its goals, develop key infrastructure safely and securely, and increase production. Petrofac has been delivering complex projects, engineering services and training local workforces in North Africa for over 20 years now. This latest award builds on our strength of engineering and construction capability and track record of effective delivery."
Petrofac has secured a contract with bp to develop operational procedures for their Greater Tortue Ahmeyim (GTA) Project in Mauritania and Senegal.
Centred on minimising risk and harm to personnel, plant and the environment, the procedures will encompass all offshore operations, including subsea, floating production storage and offloading (FPSO) and hub.
Steve Webber, SVP Operations, said:
bp is an important longstanding client and we look forward to supporting them in operating safely and responsibly, in their delivery of the GTA Phase 1 Project, which is creating a new LNG hub in Africa.
The Tortue/Ahmeyim gas field, with estimated resources of 15 trillion cubic feet of gas, is located offshore on the border between Mauritania and Senegal. The integrated gas value chain and near-shore liquefied natural gas (LNG) development will export LNG to global markets as well as supplying gas to Senegal and Mauritania.
Petrofac shares surged on Wednesday after the oilfield services provider said it has extended $700m of its banking facilities and that net debt is set to be better than expected.
With the "unanimous support" of its lenders, Petrofac has secured a $610m extension of its existing revolving credit facility to 2 June 2022, with an option to extend for a further six months, and a $90m extension of its bilateral term facility with Abu Dhabi Commercial Bank to 1 April 2022.
The increase in margin on these facilities reflects market conditions and remains competitive, the company said.
Existing financial covenants remain unchanged and will be tested on a quarterly basis. In line with Petrofac's liquidity policy, the extended revolving credit facility includes a minimum liquidity covenant of $100m.
Petrofac said the revised facilities of $700m represent a reduction in facility size of $450m, "in line with business requirements and reflecting the group's transition to a capital light business model". Both facilities were due to be repaid or prepaid on or before 2 June.
"The extension of these facilities, together with the issue of £300m in commercial paper under the Covid Corporate Financing Facility in February 2021, preserve the group's strong liquidity position which was $1.3bn at 31 March," it said.
The group now expects to report net debt of $116m as at 31 December 2020, better than expectations, and said it continues to target eliminating net debt "as market conditions and contract awards recover".
At 1300 BST, the shares were up 8.6% at 105.70p.
Petrofac’s Engineering and Production Services (EPS) division has further strengthened its global Well Engineering portfolio following the award of a drilling management services contract with Carnarvon Petroleum.
The agreement supports Carnarvon’s Buffalo redevelopment, offshore East Timor in the Timor Sea, and includes planning, detailed well design, drilling execution and all associated procurement. The scope, which will be managed via Petrofac’s Well Engineering group in Perth, Australia, follows a competitive tender process.
Nick Shorten, Managing Director of Petrofac EPS (West) commented: “Globally our Well Engineering experts have drilled over 400 wells for 100 operators. We very much look forward to deploying that experience in support of Carnarvon’s exciting advancement in East Timor.
Carnarvon Managing Director and CEO, Adrian Cook, said: “Petrofac is an established and highly experienced global energy services provider and is well suited to ensure the success in the Buffalo project. They have already made encouraging progress in assessing our well plans, reviewing drilling rig alternatives and assessing the necessary long lead items for drilling. We look forward to an exciting year”.
Petrofac, Repsol Sinopec Resources UK and TechnipFMC announce today the formation of an innovative industry alliance which seeks to maximise the recovery of oil and gas from the UK Continental Shelf (UKCS).
The partnership will work together to offer the owners of oil and gas discoveries near Repsol Sinopec’s existing North Sea infrastructure hubs an integrated, technically robust and commercially flexible solution to meet their near to mid-term development objectives.
Under the terms of the partnership, Petrofac will provide all services associated with topsides engineering and operations support, whilst TechnipFMC will deploy its *iFEED® front-end engineering and design solution and its integrated subsea business model, **iEPCI™. Repsol Sinopec will provide access to its facilities under the industry-led infrastructure code of practice. Together, the group offers decades of subsea and topsides engineering, project management and operating expertise to create an all-encompassing offering, from the well head to export route.
Nick Shorten, Managing Director of Petrofac's Engineering and Production Services, West business said:
With more than three billion barrels locked in marginal fields across the UKCS, small pools represent a big opportunity. Industry level collaborations such as this, will drive the standardisation required to reduce the time and cost of tie-back developments. Petrofac is thrilled to combine the asset knowledge gained as Repsol Sinopec’s operations and maintenance partner, with our engineering and project management expertise in support of this exciting collaboration.
Jose Luis Muñoz, CEO Repsol Sinopec said: “As an industry we must get better at recognising the benefits of utilising existing North Sea infrastructure to maximise the economic recovery of the basin, minimise carbon emissions and transition to a lower carbon economy. This industry collaboration brings together three well respected, experienced companies that have the resources, drive and ambition to support the continued success of the industry for many years to come.”
Jonathan Landes, President Subsea, TechnipFMC, said: “We are delighted to play a part in helping to maximise recovery of oil and gas from the UK Continental Shelf. Leveraging our integrated subsea business models, iFEED® and iEPCI™, we are ideally placed to support and optimize future development opportunities from early concept to first production and beyond while minimising the carbon footprint. With a shared commitment to excellence in Health, Safety, Environmental and Quality standards, we look forward to working with Repsol Sinopec to deliver a culture of efficiency, standardisation and sharing of best practice as we adopt this unique and important alliance in the UK.”
*iFEED® TechnipFMC’s iFEED® front-end engineering and design solution combines the scope of SPS and SURF to deliver a full field subsea architecture design.
** iEPCI™ integrated Engineering, Procurement, Construction and Installation.
Petrofac to deploy global decom expertise in Australia, in contract first
Petrofac’s Engineering and Production Services (EPS) business has strengthened its presence in Australia, having secured a Well Project Management contract in the country with PTT Exploration and Production (PTTEP).
Under the terms of the agreement, Petrofac will provide all project manpower to enable the execution of plug and abandonment operations on two of PTTEP’s remaining subsea wells in the Vulcan Basin, located in North West Australia. Work will include detailed planning, procurement services including tender for a semi-submersible rig, and management of operations and sub-contracted services.
Today’s announcement builds on Petrofac’s ongoing expansion in Australasia and reflects the continued global growth of its Well Engineering capabilities.
Commenting, Nick Shorten, Managing Director for Petrofac Engineering and Production Services (West), said: “The award of this contract is testament to our track record for delivering Well Engineering and decommissioning services for our clients globally. Our teams have operated in Australia for more than a decade working on some of the region’s largest energy developments, but we are particularly excited to be deploying our Well Project Management capability and expertise there for the first time.
“When it comes to decommissioning, we understand the focus on cost and schedule is as important as ever. We look forward to working closely with PTTEP to deliver a safe and predictable plug and abandonment campaign.”
4 February 2021
PETROFAC SECURES PETROLEUM DEVELOPMENT OMAN CONTRACTS
Petrofac has been awarded two contracts, together worth around US$300 million through Petroleum Development Oman (PDO).
The first is a direct EPC contract for PDO's Marmul Main Production Station (MMPS) - Gas Compression project. The scope of work for the 30-month, lump-sum turnkey contract includes engineering, procurement, construction, commissioning, start-up and initial operational support.
Located at Marmul in the South of Oman, approximately 800 kilometres from Muscat, the purpose of the new facility is to eliminate permanent flaring and manage associated gas. The work includes gas recovery and booster compressors, gas sweetening, dehydration and other units, utility systems and modification of existing facilities.
The second is a project delivery contract with Petrofac's partner and main PDO contract holder Arabian Industries Projects LLC, for selected PDO concession areas in the North of Oman. The scope of this seven-year contract is for provision of reimbursable engineering services, integrated project support and management services, and has an option to extend for three years.
In line with the main objectives of the integrated project services part of this contract, Petrofac will ensure the effective management, control, execution and documentation of changes and additions to production facilities through specific technical studies related to concept development, development of front-end engineering design (FEED) and detailed design.
Elie Lahoud, Chief Operating Officer - Engineering & Construction, commented: "Petrofac has a significant track record in Oman and PDO are a longstanding client. We look forward to building on our strong relationship through these latest contract awards. Both will be delivered by our teams in the Sultanate, with the focus on safety, maximising local and sustainable delivery, and generating In-Country Value."
Petrofac has been serving Oman's energy industries for more than 30 years and during this time has:
Established a multi discipline engineering and project execution office in Muscat
Invested US$30 million in a state-of-the-art technical training centre with its partner Takatuf Petrofac Oman (TPO)
Developed a highly capable workforce, with over 30% Omanisation in the Sultanate
Recorded multi-billion-dollar ICV contribution to Oman's economy in respect of the purchase of Omani goods and services
Rye Bay Capital close 3.53% net short position in Petrofac.
As of 02 Feb, 2021, Rye Bay Capital LLP hold 0.00%; according to a source.
Rolls-Royce acquires leading supplier of ship control systems Servowatch
Rolls-Royce has acquired Servowatch Systems, a UK-based international supplier of integrated marine automation solutions for navies, commercial vessels and large yachts. Representatives of Rolls-Royce's Power Systems business unit and the company’s previous owner, the Indian engineering, procurement and construction projects, manufacturing, defence and services group Larsen & Toubro, signed the contracts on 2 December.
Servowatch, based in Heybridge, Essex, will significantly expand the ship automation division of the MTU product and solution brand of Rolls-Royce's Power Systems business. "Servowatch's modern and sophisticated range of automation and integrated bridge systems for government and commercial ships and large yachts is the ideal complement to continue to offer sophisticated total system solutions for marine propulsion systems and the entire ship automation sector," said Andreas Schell, CEO Rolls-Royce Power Systems. “Building on a state of the art automation platform and connecting it with our MTU SmartBridge and Digital Solutions we consequently follow our system strategy and being able to provide a fully integrated bridge-to-propeller-solution for our customers,” Schell added.
The new subsidary's open automation systems will be fully integrated into MTU's product range. "With our Bluevision and Callosum systems, we have positioned ourselves excellently in the market for ship automation over the past two and a half decades. We are the only engine manufacturer in the world that can also supply the electronic platform for monitoring and controlling the entire ship. With Servowatch, we will continue to expand this position and modernize our product portfolio," said Knut Müller, Vice President of the Marine and Governmental Division of Rolls-Royce's Power Systems business unit.
Servowatch employs approximately 35 people at its headquarters in Heybridge, with additional 11 people in India. Servowatch automation systems monitor and control the operation of numerous large ships, for example large yachts and government vessels - not only the propulsion system, but also numerous other functions such as heating and ventilation and power supply.
"Servowatch is completely complementary to what we do in marine automation,” Kevin Daffey Director Marine Systems & Automation at Rolls-Royces’ Power Systems business unit said. “Our new family member is focussed on ships generally powered by high speed diesel engines and an integrated system based around their world class Winmon9 software. The integration with MTU products will help us add more lifecycle services through on-board data collection and edge analytics to inform the ship’s crew about vessel performance“, he added.
Wayne Ross, Managing Director Servowatch Systems says: “The team at Servowatch are very pleased and proud to be joining Rolls-Royce Power Systems and see very positively the synergy of products, also the focus on innovation and customer service, that is the recognised hallmark of Rolls-Royce globally. We look forward to contributing our efforts and products to the group, also to our further development as a business unit, under Rolls-Royce ownership".
The commercial terms of the deal are not being disclosed.
MT30 selected again for Korean FFX batch III programme
The Rolls-Royce MT30 marine gas turbine has been selected for the Republic of Korea Navy’s (RoKN) FFX Batch III frigate, known as the Ulsan-class frigate which will be built by Hyundai Heavy Industries.
Rolls-Royce has already successfully worked with the RoKN to introduce a revolutionary, modern and simple, hybrid propulsion system arrangement for all eight ships in the Daegu-class FFX Batch II frigate programme – each powered by a single MT30 gas turbine and electric propulsion motors powered by four Rolls-Royce MTU diesel generators per ship.
The use of the MT30 across the Batch II and Batch III frigates will deliver commonality benefits to the customer, such as spare parts, support infrastructure and training.
For FFX Batch III, the Ulsan-class frigate programme, Rolls-Royce will also supply Engine Health Management (EHM) capability with its MT30 marine gas turbine. Supporting leaner naval forces, EHM technology delivers through-life benefits, such as reduced manpower and maintenance costs, by enabling the collection of reliable engine data and analysis to maximise asset availability and optimise on-board maintenance.
As part of Rolls-Royce’s on-going design collaboration with Hyundai Heavy Industries (HHI) for the specialised integrated gas turbine enclosure for MT30, HHI-EMD will continue to be responsible for the manufacture of this highly complex engineering enclosure and all ancillaries in-country, as well as continuing to provide in-service support.
Jay Lee (Jongyel Lee), Vice President of Business Development & Future Programmes, Defence – Naval, Korea said: “Today, Rolls-Royce remains at the forefront of naval propulsion technology. MT30 is powering many of the world’s most advanced platforms in all conceivable propulsion configurations. We are delighted that MT30 has once again been selected to power the latest batch of FFX frigates and we look forward to continuing our relationship with the Republic of Korea Navy and HHI.
“MT30 first entered service with the Republic of Korea Navy’s Daegu-class in 2018. Its selection for FFX Batch III is a testament to the confidence that our customer has in the proven performance of this modern and superior engine.”
“Selecting the right power and propulsion system is one of the most important decisions our customers will face when designing their new platforms. We are committed to working closely with the Republic of Korea Navy to provide them with the most adaptable propulsion systems based on the most modern technology available today. This will ensure our customers can retain their military advantage via future technology insertion without having to endure costly upgrades to legacy power generation capability throughout the life of their ships.”
Designed for the 21st century, MT30 is proven at sea, delivering long-term reliability, unrivalled life-long performance with operating cost efficiencies. The MT30 gas turbine is already in service with several navies around the globe including the U.S. Navy’s Freedom-class Littoral Combat Ship and Zumwalt-class destroyers, the Republic of Korea’s Daegu-class frigates, the Royal Navy’s Queen Elizabeth-class aircraft carriers and the Italian Navy’s new Landing Helicopter Dock. More recently MT30 has been selected to power the Japanese Maritime Defence Force’s advanced 30-FFM frigate and in single gas turbine CODLOG (Combined Diesel Electric or Gas) configuration for the Type 26 Global Combat Ship programmes for the Royal Navy, Royal Australian Navy and Royal Canadian Navy.
Beyond the FFX programme, the power density of the proven naval MT30 gas turbine genset is also one of the key enablers for Integrated Full Electric Propulsion (IFEP) for the next - generation RoKN destroyer (KDDX). Rolls-Royce’s extensive experience in IFEP powered warships such as the Royal Navy’s Type 45 destroyers and Queen Elizabeth-class aircraft carriers, and the U.S. Navy’s Zumwalt-class destroyers, will support the RoKN’s technological ambitions and their SMART Navy Vision 2045, delivering game-changing military capability in next generation destroyers.
I've updated it now.
Rolls-Royce strenghthens Gulfstream on-site support with new customer service centre
Rolls-Royce has officially opened its latest customer support facility in Savannah, Georgia, USA. The new 62,000 sqft (5,800 m²) Savannah Customer Service Centre is adjacent to the new Gulfstream Service Center East and is scheduled to be fully operational by end of this year. It will house an on-site customer support office, an on wing services repair facility, a powerplant completion centre, and a warehouse all under one roof. The investment will create additional highly-skilled jobs over the next years, increasing the total number of our employees supporting Gulfstream and its customers.
The new service centre was named the Rolls-Royce Raines Building, in honour of local aviation pioneer Hazel Jane Raines. Raines was Georgia’s First Lady of Aviation, a strong advocate for women’s rights and an inspiring trailblazer for women in aviation.
From the beginning of our business aviation activities in 1958, marked by the first flight of the Dart-powered Gulfstream I, to the recent first flight of Gulfstream’s Pearl 700-powered flagship G700, Rolls-Royce and Gulfstream have developed a strong and successful partnership. Rolls Royce currently produces the BR710 and BR725 engines for Gulfstream’s G550 and G650 and develops the Pearl 700 to power the G700. Overall, we support more than 2,100 Gulfstream business jets worldwide via our dedicated 24/7 Business Aviation Availability Centre.
Many of those aircraft are covered by CorporateCare® and CorporateCare Enhanced; about 70 per cent of new delivery Rolls-Royce powered aircraft are enrolled in the programme. CorporateCare Enhanced, the comprehensive, fixed-cost engine maintenance management plan, provides customers with a global support infrastructure which includes: Engine Health Monitoring, a worldwide network of Authorised Service Centres and globally distributed spare parts and engines.
Andy Robinson, SVP Customers & Services - Business Aviation, Rolls-Royce, said: “As the leading engine manufacturer in Business Aviation, our customers trust in us to deliver outstanding levels of in-service support. This brand-new customer support facility is a strategic investment, which takes our longstanding partnership with Gulfstream to the next level and will help us deliver market-leading services to our Business Aviation customers in North America.
“The new Rolls-Royce Savannah Customer Services Center reflects the strong partnership between our two companies and our continued mutual commitment to providing a world-class ownership experience for our operators,” said Mark Burns, President, Gulfstream Aerospace Corp. “The first of its kind within the Rolls-Royce network, this facility serves as a strategic complement to our two Gulfstream Savannah Service Centers, providing extensive engine capabilities where they’ll have the greatest impact: at our company and manufacturing headquarters.”
“Global Fortune 500 companies like Rolls-Royce choosing to expand in Georgia are a testament to our strength in advanced manufacturing and logistics, particularly within our $57.5 billion aerospace sector supported by the Port of Savannah – now the top port for U.S. exports,” said Governor Brian P. Kemp. “I am grateful to Rolls-Royce for their continued investment in the Peach State and look forward to seeing the opportunities this expansion brings to the hardworking folks of Southeast and Coastal Georgia.”
Rolls-Royce to supply Bibloc® pressure transmitters to Hinkley Point C nuclear reactors in UK
Rolls-Royce has signed a contract with Hinkley Point C for the delivery of safety critical Bibloc® pressure transmitters for the two EPR nuclear reactors currently under construction in Somerset, UK.
Hinkley Point C, which is the first nuclear power station to be built in the UK for more than 20 years, will provide low-carbon electricity for around six million homes, create thousands of jobs and bring lasting benefits to the UK economy.
As part of this contract, Rolls-Royce will provide 140 safety classified (K1) Bibloc® pressure transmitters, which will perform flow, level and pressure measurements of the Nuclear Steam Supply System (NSSS).
Robert Sommacal, Rolls-Royce Civil Nuclear France, Business Unit Director, said: “We are delighted to be a part of the Hinkley Point C project. We will contribute to ensure the nuclear safety of the reactors, which will generate safe, reliable and low-carbon electricity for 60 years. This contract is further proof of the excellence of our Bibloc® technology and of the specific expertise of our teams”.
Qualified for 60 years of operation, Bibloc® pressure transmitters are designed and manufactured by Rolls-Royce I&C teams based in Grenoble - France, and have already been chosen to be implemented in more than 90 nuclear reactors worldwide.
Rolls-Royce supplies power solutions for SpaceDC’s first Indonesian green focused data center facility
Rolls-Royce delivered 3 MTU gas and diesel systems for SpaceDC data centre in Jakarta
MTU gensets are specifically designed for efficiency and hot and humid conditions
Common goal: Lowering the environmental impact of data centres
SpaceDC officially launched its new ID01 25.45MW data centre campus with Rolls-Royce technology beginning of November 2020. It is the first green focused data centre in Indonesia. With innovative design and infrastructure SpaceDC enables a power usage effectiveness (PUE) of 1.3, which is changing the industry’s approach to carbon footprint. Three MTU gas and diesel systems from Rolls-Royce with the latest exhaust aftertreatment technology provide efficient and clean base load and emergency power as well as cooling.
“There is growing demand for local data centres in Southeast Asia, even more since the Covid-19 crisis”, says Darren Hawkins, CEO of SpaceDC. “With the trend of decarbonization new concepts of power supply for data centres are at the forefront.” SpaceDC is a data centre provider who aims to lower the environmental impact of data centres. “This company philosophy fits very well with Rolls-Royce's goal of continuously enhancing the eco-friendliness of our drive and energy systems and bringing them closer to CO2 neutrality,” explains Andreas Görtz, Vice President Power Generation at Rolls-Royce Power Systems.
For the JAK2 facility in the SpaceDC campus in Jakarta, Rolls-Royce supplied three containerized gas and diesel systems. The diesel systems, which secure the emergency power supply of the data centre, comprise two MTU 20V4000 DS3300 gensets in a 40 ft container with SCR systems to reduce emissions.
“Reliable backup power is the lifeblood for any data centre – and it is absolutely fundamental in creating a world class facility,” said Darren Hawkins. “In designing our JAK2 data centre, we selected Rolls-Royce, with its MTU products, as our partner because they provide the best in market technology and power efficiency for this data centre, which is aligned with our vision of meeting international standards as part of the overall value proposition to our customers in the region and beyond.”
A 20-cylinder MTU Series 4000L64 FNER gas genset in a 40ft container is installed as CHP (Combined Heat and Power) application with a total efficiency of above 90%. The system will provide baseload electricity and cooling via an absorption chiller utilising the exhaust gas heat to provide cooling. The MTU gas systems offer best in class power density and have been designed specifically to withstand hot and humid conditions. This is especially crucial for the facility in Jakarta where the climate is tropical almost year-round. The MTU power solutions offer an extended Time Between Overhaul (TBO) of 84,000 hours, requiring less maintenance and overhaul intervals for maximum productivity and reliability.
“Deploying generators in a tropical environment like Indonesia comes with a unique set of challenges, especially for a data centre environment where uptime is absolutely critical. We’re proud that our Series 4000 generator sets will help SpaceDC meet the special demands of the location and ensure the highest levels of reliability for their customers,” said Andreas Görtz.
“Working with SpaceDC, we’ve seen great synergy in developing complete power generation solutions that are market-leading in terms of efficiency and reliability. And we are proud that they chose us as a partner to support them with our sustainability service and backup power”, said Waluyanto Sukajat, Acting Managing Director, PT. MTU Indonesia.
Press photos are available for download from
Rolls-Royce signs agreements for delivery of almost 1000 MTU products at Chinese import conference CIIE
Largest ever agreements for MTU product delivery at China International Import Expo
Agreements include MTU Series 2000 and 4000 engines and gensets for power generation and mining applications
Rolls-Royce also signs strategic cooperation agreements with Jianglong Shipyard, Aulong Shipyard, VPower and SUMEC
Rolls-Royce business unit Power Systems has signed agreements for the delivery of a record number of MTU products as well as two strategic partnership agreements at the third China International Import Expo (CIIE) which was held in Shanghai: Six Chinese companies have signed frame agreements for the delivery of almost 1000 MTU engines and systems of Series 2000 and 4000 for use in power generation and mining applications. In addition, Rolls-Royce Power Systems signed strategic cooperation agreements with partners from the marine, power generation and mining industry. The agreements on the delivery of MTU engines and systems are part of new purchasing framework agreements with the power generation companies Cooltech, Tellhow, Pauway, UNPower and SUMEC. For the first time at CIIE, Rolls-Royce also signed agreements for the mining application: The company inked a procurement framework agreement with Inner Mongolia North Hauler Joint Stock Co Ltd, a leading Chinese mining machinery manufacturer. CRRC DATONG Co Ltd also placed an order for one MTU engine for use in a mining dump truck. The strategic cooperation agreements were signed with Jianglong Shipyard, Aulong Shipyard, VPower and SUMEC.
Tobias Ostermaier, President Greater China at Rolls-Royce Power Systems, said: “China is our most important growth market and our ambition is to be in China for China. In recent years, we have turned into a provider of integrated solutions for Chinese business partners: We have formed multiple joint ventures and established a Customer Care Center as well as a Tech Center in-country to be closer to customers and better satisfy their needs. It’s great to see these efforts bearing fruit with the frame agreements and strategic cooperation agreements we signed at CIIE. We are very grateful for the trust and confidence our customers put in our products and solutions.”
Rolls-Royce Power Systems reached a breakthrough in the Chinese marine market with the multi-party strategic partnership agreement with Jianglong Shipyard, Aulong Shipyard and VPower Group. Jianglong Shipyard is China’s leading designer and manufacturer of aluminum hull high speed vessels, a key market for MTU products. Aulong Shipyard is a joint venture of Austal and Jianglong. VPower Group is one of the world’s leading system integrators in the power generation sector and distributor for MTU products in China. The new strategic partnership will focus on MTU Series 2000 and 4000 engines.
Growth opportunities from the acceleration of China’s New Infrastructure development are at the heart of the strategic partnership which Rolls-Royce Power Systems and SUMEC agreed at CIIE, explained Fu Min Chu, Vice President of Sales and Business Development Greater China at MTU China: “Our backup power solutions will help SUMEC capture growth opportunities in China, especially in the booming data center market.”
Expanding market share and establishing and deepening partnerships in China are key to the success of the PS 2030 strategy, under which Rolls-Royce Power Systems is currently transforming from an engine manufacturer to a provider of integrated sustainable power solutions. Rolls-Royce has been producing MTU engines in China since 2006. In addition, Rolls-Royce formed MTU Yuchai Power, a joint venture with Chinese diesel engine manufacturer Guangxi Yuchai Machinery Company, in 2017. The company produces MTU Series 4000 engines for power generation in its plant in Yulin, Guangxi Province.
Rolls-Royce to test 100% Sustainable Aviation Fuel in next generation engine demonstrator
Ground tests with 100% Sustainable Aviation Fuel (SAF) to demonstrate Rolls-Royce engines can unlock SAF’s potential to reduce emissions
As part of its ongoing decarbonisation strategy, Rolls-Royce is to use 100% sustainable aviation fuel for the first time in engine ground tests on next-generation engine technology.
The tests will aim to confirm that unblended SAF makes a significant contribution to improving the environmental performance of gas turbine engines.
The SAF being used in the tests was produced by low-carbon fuel specialist World Energy in Paramount, California, sourced by Shell Aviation and delivered by SkyNRG. This unblended fuel has the potential to significantly reduce net CO2 lifecycle emissions by more than 75 per cent compared to conventional jet fuel, with the possibility of further reductions in years to come.
These tests aim to demonstrate that our current engines can operate with 100% SAF as a full “drop-in” option, laying the groundwork for moving such fuels towards certification. At present, SAF is certified for blends of up to 50% with conventional jet fuel and can be used on all current Rolls-Royce engines.
Starting in the coming weeks in Derby, UK, the ground tests will involve a Trent engine which also incorporates ALECSys (Advanced Low Emissions Combustion System) lean-burn technology.
ALECSys is part of the UltraFan® next generation engine demonstrator programme, which offers a 25% fuel saving over the first generation of Trent engines.
Paul Stein, Rolls-Royce Chief Technology Officer, said: “Aviation is a tremendous force for good, keeping the world connected, but we have to do that sustainably. These tests aim to show that we can deliver real emissions reductions. If SAF production can be scaled up – and aviation needs 500 million tonnes a year by 2050 - we can make a huge contribution for our planet.”
Gene Gebolys, Chief Executive Officer and founder, World Energy, said: “World Energy exists to empower leaders to innovate by providing the world’s most advanced low carbon fuels. Rolls-Royce is putting their technological prowess to work to understand how to maximise their potential in engines and we are proud to support them.”
Theye Veen, Managing Director, SkyNRG, added: “This programme is a great example of what can be achieved when companies from across the aviation value chain that share an ambition of reducing emissions work together. As a pioneer in SAF, SkyNRG encourages innovative tests like this run by Rolls-Royce.”
In addition to supplying the SAF with SkyNRG, Shell Aviation is also providing Rolls-Royce with AeroShell lubricants for the ALECSys engine test programme.
Anna Mascolo, President, Shell Aviation, commented: “For over 100 years, Rolls-Royce and Shell have worked together to drive aviation’s progress. This collaboration brings us one step closer to decarbonising Aviation. As well as the SAF, Shell Aviation will provide offsets using nature-based solutions to make the test net zero emissions, reinforcing how multiple measures are essential if aviation is to achieve net zero carbon dioxide emissions.”
The ALECSys programme is supported by the European Union via Clean Sky and in the UK by the Aerospace Technology Institute and Innovate UK; the 100% SAF testing programme is additionally supported by ATI, iUK and Gulf Aviation.
EUROJET signs contract with NETMA for provision of 56 new EJ200 engines for the German Air Force
EUROJET Turbo GmbH (EUROJET), the consortium responsible for the EJ200 engine installed in the Eurofighter Typhoon, today signed a contract with the NATO Eurofighter & Tornado Management Agency (NETMA) to provide 56 new EJ200 engines for the German Air Force.
The contract, signed in Munich, between Miguel Angel Martin Perez, General Manager of NETMA, and Gerhard Bähr, CEO of EUROJET, covers EJ200 engines for a new order of Tranche 4 Typhoon fighter aircraft. Production of the engine modules will be carried out locally by the four partner companies of the EUROJET consortium; Rolls-Royce, MTU Aero Engines, ITP and Avio Aero. As partner for the German Air Force, final assembly of the engines will take place at MTU Aero Engines with deliveries to the German customer scheduled to begin in 2023.
Commenting on the finalisation of the contract Mr Bähr stated: “This contract signature is a clear statement of confidence in the platform and of the performance and sustainability of the EJ200 engines which power it. In addition, it also demonstrates a high level of confidence in the consortium and its European industrial base, and will secure highly skilled workplaces in the aerospace industry in the coming years.”