Summer edition 2015

Incorporating news from Projects Oil, Gas and Petrochemical database and Your Industry News - Summer Edition 2015

GOM DRILLING MARKET PAGE 8

INDUSTRY RECRUITMENT PAGE 10

SIEMENS PLM SOLUTIONS PAGE 30

Image courtesy of ExxonMobil PLUS:

Ferguson Group, 3M Oil and Gas, CMP Products, Siemens, Inductotherm, Silver Fox, Cygnus Instruments and Derrick Services Limited

PROJECTS FEATURED:

Sea Lion Field Stones Field Julia Field Angsi Field

PROJECTSOGP

CONTENTS page

CLIENT NEWS Ferguson Group 3M Oil and Gas

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GOM Drilling Market From Riches to Rags

PROJECT PROFILES Sea Lion Field Stones Field Julia Field Angsi Field

14 16 18 20

NORTH AMERICA & ASIA NEWS

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CLIENT FEATURE CMP Products

In this edition, we are focusing on offshore projects in North America, South America and Asia. Our key projects in focus are the Sea Lion Field, Stones Field, Julia Field and the Angsi Field. We also have some excellent news in depth reports on drilling activity in the Gulf of Mexico and what the recent plummet in oil price has done to oil and gas recruitment.

I would like to thank all of our clients for their continued support, with 3M Oil and Gas, Ferguson Group, CMP Products, NOV Portable Power, CRU Group, Siemens, Vaisala, Derrick Services Limited, Inductotherm, Silver Fox, Elettrotekkabel Group, Prosafe, Micron Eagle, SPE Offshore Europe and Cygnus Instruments all providing excellent features and advertisements.

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TECHNOLOGY

Derrick Services Limited Inductotherm Silver Fox Siemens

26 28 29 30

GLOBAL PROJECTS

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ON THE MOVE

40

FINANCE NEWS

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CLIENT FEATURE

SPE Offshore Europe Cygnus Instruments

FEATURES

ProjectsOGP Magazine is proud once again to be at the OTC Houston Exhibition. We have also partnered with Oil and Gas Asia for the first time, and have our magazine available to read at both shows.

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NEWS IN DEPTH

Welcome

I would also like to thank all of our partners, and look forward to working with you all again in the near future.

Editor: John Morrison Editorial team: Ioannis Tzelepis & Louise Douglas

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Design and production: Louise Douglas

GOM DRILLING: “THE GOM WILL EXCEED EXPECTATIONS COMPARED WITH 2014, WITH A 30 PERCENT INCREASE IN THE OIL RIGS DEPLOYED.”

OIL RECRUITMENT: “CONOCOPHILLIPS PLANS TO INVEST AROUND US$2.5 BILLION IN INDONESIA’S UPSTREAM OIL AND GAS.”

Advertise: john.morrison@redmistmedia.com t: +44 (0) 1224 582902 ProjectsOGP Magazine published by: Red Mist Media Ltd INTERKAB House, Links Place Aberdeen, AB11 5DY, UK t: +44 (0)1224 582902 e: info@redmistmedia.com w: www.redmistmedia.com

REACHFURTHER

With our range of services and products including online marketing, advertising, brand awareness, industry news and business intelligence. to find out more: www.redmistmedia.com +44 (0) 1224 582902 info@redmistmedia.com

www.projectsogp.com - AOG Edition Edition 2015 2014 www.projectsogp.com - Summer

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CLIENT NEWS

TRANSPORTING HAZARDOUS CHEMICALS OFFSHORE

Ferguson Group makes using industrial chemicals simpler by expanding its range of offshore DNV 2.7-1 chemical and acid tanks Industrial chemicals are used regularly by the offshore energy sector in exploration, production, cementing, well abandonment and decommissioning. They are essential to many processes and the logistics can be time consuming.

For example, in well stimulation, large amounts of hydrochloric (carbonate formation) or hydrofluoric (sandstone or shale formations) acid is flushed into the well under high pressure to dissolve small blockages.

The acid is rendered benign by the process, but given the amount that is used, there is a significant amount of residual fluid, that will need to be disposed of appropriately.

Methanol is a highly flammable chemical commonly used in dehydrating and de-icing wells. The safe transportation of flammable chemicals is best done in bunded tanks in order to protect both people and the environment.

Nitrogen is often used in its liquefied form for enhanced oil recovery projects. Liquid nitrogen needs to be carefully stored and handled, due to the necessity to keep it liquefied and prevent any potentially hazardous rapid vaporisation.

In decommissioning, wells are plugged and residual fluid recovered. It is imperative that the recovered fluids, which may be hazardous materials, are tightly managed during the demobilisation back onshore where they can be safely disposed of.

Offshore transportation of chemicals and acids must

Ferguson Group, 20ft Chemical Tank be done in accordance with local and international regulations. In the UK, tanks must be certified IMDG/ ADR/RID to transport dangerous or hazardous goods overseas, by road (ADR), or rail (RID).

Disposal of said residuals need to be done in accordance with local environmental legislation. This legislation can change regularly and it can be simple to slip into non-compliance. This however, is not a credible defence in the eyes of the regulator.

The national regulations regarding the handling of said chemicals are a challenge. Licences may be required for the movement of industrial chemicals, whether storing, transporting or disposing of them.

All of these factors can become substantial issues during project operations.

Judith Verner, Development Manager Fluid Solutions said: “Project management of offshore operations can be complex and time consuming. At Ferguson Group we have the requisite knowledge and expertise to handle the requirements of our clients allowing them to focus on other aspects of the project.�

Ferguson Group, a global specialist in supplying DNV 2.7-1 offshore containers has expanded its range of offshore DNV 2.7-1 chemical and acid tanks. The fleet includes acid tanks, helifuel tanks, chemical tanks, cryogenic tanks and bunded tanks in a range of sizes.

Ferguson Group can offer a full one-stop-shop chemical handling service. The company has the necessary project management skills and experience of dealing with potentially hazardous chemicals; accredited to ISO 9001, ISO 14001 and OHSAS 18001.

Ferguson Group, 20ft Offshore Acid Tank

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www.ferguson-group.com

www.projectsogp.com - Summer Edition 2015

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CLIENT NEWS

THE CHANGING FACE OF FIRE SUPPRESSION 3M Oil and Gas at the forefront of fire suppression evolution

F

ire suppression plays a key role in hazardous environments, where even a small fire can damage critical equipment, interrupt operations or affect human health and safety. The oil and gas industry is addressing Commission Regulation (EU) No 744/2010, which calls for all new fire suppression systems from December 31st 2010 to be halon-free, with the phase out of all halon systems completed by 2020.

In addition, changes to the F-gas Regulation will potentially impact the use of HFCs in fire suppression systems.

In 2014, the European Parliament voted to support a European Commission plan to cut the use of hydrofluorocarbons (HFCs) to 79 percent below average 2009-2012 levels by 2030. This has now become law with provisions effective from January 2015. HFCs used in fire suppression systems have some of the highest global warming potentials (GWPs) relative to other sectors.

There are other well-established alternatives in use in various applications around the globe, including environmentally sustainable engineered clean agents, water-based systems and inert gases. We’ll look at these alternatives shortly, but first let’s take a closer look at HFCs and the recent changes to the F-gas Regulation.

The need for change When Halon was phased out of most fire suppression applications in the late Nineties (with a mandatory decommissioning in EU of all systems except limited critical applications), many people began looking at

other options. HFCs were a popular alternative, but there have been concerns because despite their zero ozone depletion potential, they are potent greenhouse gases. For example, the Global Warming Potential (GWP) of HFC-227ea is 3, 3.350, meaning that its climate impact is 3.350 times more potent than CO2. It has been suggested that without change, HFC emissions may be equal to some 9 -19 percent of global greenhouse gas emissions by 2050. Other suggestions indicate that without significant action, HFC emissions in the US will double by 2020, and nearly triple by 2030.

Following the legislative change, HFC-227ea, HFC-125, and HFC-236fa have been affected by the overall scope of the Regulation under the HFC phase-down. 1 January 2015 also saw HFC-23 prohibited from the market.

Some people claim that the F-gas Regulation can be dismissed in the fire suppression market, arguing that HFCs are non-emissive unless a system discharge occurs. However, the F-gas Regulation is designed to reduce emissions by controlling the use (and therefore the production and importation) of all HFCs, so the effect on the fire suppression industry is very real.

A quota for producers The HFC cap and phase-down sees producers given HFC production/import quotas, and this will force them to make difficult decisions. As the quota will be in CO2 equivalents (related to the GWP) and HFCs sold into the fire suppression market have very high GWPs, the framework does not favour HFCs used in fire suppression.

For example, an HFC producer could consume the same percentage of their quota by making either one tonne of HFC-227ea, three tonnes of HFC-245fa, or five tonnes of HFC-32. It is not just new fire suppression systems that are affected by this legislation either.

A fire suppression system can be in-situ for over 20 years, so any existing HFC-based system, or one purchased over the next few years, will be equally affected. The associated costs are likely to be disproportionate too.

Anyone purchasing an HFC-based system may face immediate price consequences, and needs to be aware of future system recharge costs and potential end-of-life costs when the system is decommissioned.

Hazardous oil and gas environments create other considerations, such as the logistics of the installation.

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International concern This is not just a European issue either. In 2014, the US Environmental Protection Agency proposed to change the status of HFCs in certain applications. By 2020, this is estimated to reduce harmful greenhouse gas

www.projectsogp.com - Summer Edition 2015

CLIENT NEWS emissions by up to 42 million metric tonnes of carbon dioxide equivalent.

The US has also made agreements with both China and India to phase down HFC use, while in Malaysia, the Green Building Index has initiated significant measures to heighten awareness of the environmental impacts. Similarly, the Spanish Council of Ministries has approved a tax on the consumption of fluorinated gases (F-gases) with a GWP above 150, including HFCs. Future legislation changes are also likely to surround the supply and cost of HFCs for fire suppression with even greater uncertainty. However, as this market has cost-effective substitutes available, the transition from HFCs may be less painful than for other sectors.

Alternatives such as engineered or ‘clean’ agents (that are not affected by the F-gas Regulation) can be used, along with inert gases and water-based systems.

Water-based systems Water-based systems have low toxicity and no global warming potential. Yet while they can work well, their ability to cause electrical short-circuiting means that they are not suitable for areas housing sensitive or delicate equipment. Also, water-based systems cascade downwards so not all equipment may be covered, plus contaminated water needs to be disposed of afterwards.

Inert gases offer another option and are generally argon/nitrogen mixtures which work by reducing oxygen in the protected area. Large quantities of gas are required to achieve this and the need to store these can require a significant cylinder footprint and weight, even when stored at 300 bar. Inert gases are efficient, but compared to engineered agents they can have a significantly longer discharge time of up to two minutes.

As they work by removing oxygen, they are not ideal for use in occupied areas as they can be hypoxic at the concentrations required to extinguish a fire. Inert gases also need a high pressure to operate, creating the need for additional operational safety procedures to be introduced.

A clean alternative Non-HFC-based engineered clean extinguishing agents – or ‘clean’ agents – are another option. For instance, FK-5-1-12, available on the market as Novec 1230 Fire Protection Fluid has a zero ozone depletion potential and a global warming potential of less than one. This means it is not affected by the F-gas Regulation (nor any other current or anticipated future international regulation or directive).

As the name implies, clean agents do not leave a residue behind after discharge and being electrically nonconductive, they do not damage sensitive electronics.

This allows them to extinguish fires involving electrical equipment, without the need to power down and cause expensive service interruptions and data loss.

These engineered clean extinguishing agents work by removing heat (rather than oxygen) and are fast–acting, required to discharge within 10 seconds and extinguish within 30 seconds. They usually operate at significantly lower pressures than inert gases (25b, 34b, 42b or 50b) and use far fewer cylinders. As they can be fixed to walls and pillars, they occupy less space than inert gas systems and typically release less pressure into the atmosphere on activation.

For the oil and gas sector, Novec 1230 Fluid is a ‘next generation’ clean extinguishing agent suitable for use in a wide range of offshore and land-based applications where people, occupied spaces and critical equipment must be protected. Stored as a liquid but discharged as a gas that leaves no residue means that it does not damage sensitive electronics or equipment and provides a wide margin of safety if deployed in an enclosed area. This has led to Novec 1230 Fire Protection Fluid being used to help protect high-value oil, gas and petrochemical assets, as well as data centres, marine vessels, museum artefacts, library documents, plus financial, health care and power generation facilities.

Hazardous considerations The hazardous environments found in oil and gas applications create other considerations. For example, some products (such as FK 5-1-12) can be safely transported in bulk by air, unlike some other fire suppression solutions and can also be charged and refilled without having to move cylinders offsite, important to remote or offshore facilities.

A clean agent system will often occupy less space than a water or inert gas based alternative and although an engineered clean agent may initially seem more expensive, we should consider total cost-of-ownership (including power consumption, maintenance and the cost of cylinder space).

It’s clear that in addition to all the traditional considerations surrounding fire suppression, environmental legislation now plays a significant part in the selection of an appropriate suppression agent. Fortunately, the availability of costeffective alternatives to traditional HFCs mean that their impact can often be accommodated far more seamlessly than many people realise.

www.3Moilandgas.co.uk

www.projectsogp.com - Summer Edition 2015

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NEWS IN DEPTH

GOM DRILLING MARKET

Offshore oil rig Ocean America

The market may remain rocky but many industry professionals have high hopes for the Gulf of Mexico region By: Ioannis Tzelepis

O

n the 20th of April 2010, the largest accidental marine oil spill in the history of the petroleum industry took place in the Gulf of Mexico (GOM).

The Deepwater Horizon oil disaster had a significant impact on the drilling market and briefly paralyzed exploration in the Gulf. Now five years after the accident, with an oil price slump placing many global drilling projects in danger, the Gulf of Mexico drilling sector is expected to follow a different route, a route of an unprecedented boom. Production in the Gulf is predicted to rise between 20 percent and 25 percent annually, before setting a new record in 2017.

According to Imran Khan, a Wood Mackenzie analyst, production is likely to peak at 1.5 million barrels of crude a day by the end of 2016, with 2015 production rates indicating a 21% jump from 2014 levels. However, many industry officials have shown less optimism, as they consider a scenario of seeing a downfall in production in the region, if drilling activity slows down due to the downfall of oil prices. Therefore, how the drilling market is going to evolve and handle the pressure of low profits, as well as uncertainty in terms of contractual activity, will also shape the future of the most significant region of hydrocarbons production in North America. So what makes the Gulf of Mexico so different from other regions and where does this positivity stem from?

In times of scarce financial resources, mainstream microeconomic theory dictates the intervention of the state to play the role of a motivating force in order to

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stimulate market activity. Partially following this model, the Obama administration has implemented a very efficient and reliable leasing plan. According to the Bureau of Safety and Environmental Enforcement, the number of permits for deepwater drilling increased from 14 in 2010 and 274 in 2011 to 603 in 2014, resulting in the generation of US$2.4 billion in high bids. The March lease sale will add another 41.2 million acres off the coasts of Louisiana, Mississippi, providing 7,900 lease offshore blocks at depths ranging from 9 feet to 11,000 feet of water. According to the Bureau of Ocean Energy Management, this new leasing plan will boost the drilling market and could potentially result in approximately 1 billion barrels of oil and 4 trillion cubic feet of natural gas production.

The US government has shown commitment and discipline over its exploration and drilling policy in the region and has been building the future of the GOM on the foundations of the shale gas revolution for the last five years. The Gulf of Mexico is now preparing for a new era of expansion, with ports and shipyards seeing unexpected activity during the period 2012-2015.

For example, Bollinger Shipyards is now constructing 4 massive dry docks which will be able to service 300-plus-foot drilling vessels, while traffic in the Port Fourchon, the port which provides almost the 90% of the rigs operating in the Gulf, has increased rapidly during the same period. LLOG Exploration, a leading privately owned deepwater company and one of the port’s tenants is preparing to bring online the US$2

www.projectsogp.com - Summer Edition 2015

NEWS IN DEPTH billion Delta House FPS project by the end of 2015.

The Delta House project is only one of the multibillion developments scheduled to commence activities in 2015 and its financial size, found in other projects as well, is the hidden force behind the region’s expected growth. Unlike unconventional drilling methods used in shale wells or oil sands, deepwater projects in the GOM are planned on a long term basis and are not influenced as much from fluctuating prices. Therefore, the drilling in remote deep water areas, which requires years of planning and the investment of huge capital, is a high priority task and as Mr Khan correctly pointed out “there’s no stopping those. Once you start spending all that money, it’s hard to stop in the middle”. Steve Thurston, the Vice President of Chevron’s North America Exploration and Production Company, responsible for all of Chevron’s exploration and project development work in the Deepwater Gulf of Mexico, showed the same positivity stating that deepwater projects are not evaluated based on current values, but are investments which will occur over multiple decades.

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This is evident if taking into account the latest predictions from Wood Mackenzie which pinpoints that GOM will exceed expectations compared with 2014, with a 30 percent increase in the oil rigs deployed in the area.

In general, according to Baker Hughes’ estimates, the US rig count currently exceeds the total number of rigs in the rest of the world combined. This can be explained considering uncertainty in the industry, following the unstable and uneconomic conditions in the Middle East, Africa and in other ‘prominent’ oil and gas producing regions. In times of recession, rig servicing companies will mainly try to focus on projects surrounded by a reliable and profitable business environment, like GOM. This places drilling activity in the region lower in the list of projects under consideration to be delayed or abandoned.

The GOM will exceed expectations compared with 2014, with a 30 percent increase in the oil rigs deployed.

Thus, drilling projects are part of a long-term development plan, with investment in infrastructure like pipelines, platforms and subsea processing systems already confirmed. Additionally, the payoffs are considerably high due to the drilling and production capabilities of the offshore platforms. For example, six wells from Anadarko’s Lucius platform handle more than 80,000 barrels a day, an output which could only be achieved by drilling hundreds of onshore wells. This leads to the conclusion, that even though offshore drilling is a much more costly process, it requires less drilling activity to meet production targets. Still, despite the attractive economic environment, the region has also made steps backwards in terms of the fall in rig counts, influenced mainly from the global downturn of the oil and gas industry and the continuously dropping WTI prices. The rig count is one of the factors that shows the course of the drilling market. The latest figures for the US have shown a drop of over 15% in comparison to 2014.

However, the fall is mostly attributed to the decrease in drilling activity in onshore areas and especially in the unconventional oil and gas deposits. For example, in the Permian Basin of west Texas and southeastern New Mexico, the rig count has significantly decreased, while the Eagle Ford Basin in south Texas and the Williston Basin (Bakken) in North Dakota and Montana have faced the same slow down. Furthermore, in the case of the GOM, panic stemmed from a drop in the rig count should be moderate, as the offshore and onshore drilling market are founded under a different operational framework.

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Also, even though the level of the oil prices have not been encouraging since the end of 2014, it shouldn’t be ignored that the drilling market is operating under a specific regulatory and contractual structure. A lot of attention has been given to the rig count and indeed a drop in rig count and reduced profits are reasons for austerity, but the truth is that the number of rigs is not always positively correlated with oil prices. The reason is that the rig contracts can be founded on a short term or long term basis. But in any case, they are binding agreements between operators and drilling companies. Thus, rigs cannot be dropped before the term the contract ends and certainly don’t change on a weekly or daily basis like oil prices, or whenever the company decides to exit the contract.

In conclusion, the GOM is expected to lead the drilling market in the US, but this predicted growth will face many obstacles and needs to nourish through building on the existing foundations of the already proved development strategy. The Obama administration is now meeting opposition from residents and environmental groups who are criticising and objecting potential drilling along the Atlantic seaboard. If plans finally go ahead, the drilling industry will see around 90 percent of federally owned coastal waters becoming available for exploration and drilling, making another step towards a profitable future.

Therefore, taking into account that the region is very attractive to energy companies, due to its proximity to refineries, as well as its extensive pipeline infrastructure, there are many reasons to remain positive regarding the rise in deepwater drilling which stems from years of planning, during which huge capitals have been invested.

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NEW IN DEPTH

FROM RICHES TO RAGS

Oil and gas business deal

The current change in the price of oil has had dire consequences on recruitment, but it is not all doom and gloom By: Louise Douglas

A

new year, a fresh start and a P45 in the post, this was unfortunately the story for many people working in the oil and gas sector this year. Oil giant BP seemingly started off the trend with 300 job cuts in January 2015, after reviewing its North Sea assets. This news was closely followed by Baker Hughes and Halliburton, who packed the first big punch into the sector by sacking 8,000 employees in total. It was as if BP rocked the boat in regards to taking the first step into redundancies. Since January 2015 the news has been bombarded with yet another wage slash or loss of jobs in an industry that was once seen as a stable career path for many.

With the industry becoming increasingly as unpredictable as the waters it works in, times are hard for those who have made a career out of the oil and gas industry.

Due to the average wage totalling at around £64,000 a year, there is no wonder that employees are feeling the pinch in their pockets. For many, a wage decrease has been a relief, as thousands continue to lose their jobs. It is quite remarkable that a major player like BP, who has seen many profitable years, has had to go to such extreme measures. The majority of people who are losing their jobs seem to be in the engineering side of the oil and gas industry. It could be argued that due to engineers and contractors substantial salaries, that pay cuts in the long run were inevitable and that what goes up must come down. However, in such an ever changing and diverse market, what does this disruption mean for recruitment? Has in fact, the once attractive, flash, oil and gas industry turned ugly, unpredictable

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and unsustainable to recruits?

The answer to that question is one of more opinion rather than fact. The industry has constantly been exhausted with negative news articles and financial reports over the past year, intensifying this fear of the ‘death’ of the oil and gas sector. However, no one has discussed that the change in the way that we discover oil has in turn changed the job titles and vacancies in the market.

Companies have clamped down hard this year on their initial spending on exploration activities. Goodrich Petroleum Corp. announced in February 2015 that it would cut the amount of spending on oil exploration from as much as US$200 million to a vast reduction of as low as US$80 million. The company extracts oil from Tuscaloosa Marine Shale, a geological formation located throughout South Louisiana.

Operators are now looking to spend as less money as possible and still achieve successful results, without cutting any corners. This means getting the pre-feed and exploration stages of a project right first time.

During these stages, decisions are vital in the overall success of a project. The project team will select the technology needed to take on the project and a finance plan will be defined. An assessment of the sites and skilled personnel needed are analysed here. Andrew Speers, Managing Director of specialist recruitment agency Petroplan reiterates this, “people have been sharpening their pencils, projects not at the production phase or not fully funded or well established are being put on hold.”

www.projectsogp.com - Summer Edition 2015

NEWS IN DEPTH With the secretion of oil becoming increasingly harder in places like the North Sea, costs of drilling have amplified. However, this has opened the door to a skilled workforce of science focused professionals. For example, BP now has a focus in geoscience internship programs and high ranking job positions, which once were mainly held by people with engineering based skills. BP states the change in the forecast for oil and gas recovery as it stands today, “As supplies of oil and gas are depleted, geoscientists play an essential role in ensuring we can meet the world’s increasing demand for energy. At BP, our geoscientists use leading-edge technology to explore hydrocarbon resources and maximize their recovery from oil and gas reservoirs across the world. Now, we can find and produce oil and gas that was invisible to us only a few years ago.”

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Gordon: “In the UK, we have the largest concentration of subsea expertise and capability in the world and we must protect that. According to Infield, overall capex growth predictions start to become more positive after 2016. It is therefore imperative that during this period Subsea UK demonstrates strong leadership by pushing the industry to more quickly adopt innovation and technology. We need to better explore how projects are currently delivered and then make the step-change to deliver major efficiencies.” The oil price may have had a drastic effect on production and activity but it has also had an effect on the way large companies view their business. Like never before we are witnessing the merging of companies and a rise in industry support events. Operators are now sitting back to assess their options, where before they would have dived in head first.

Amongst all these positive meetings and industry morale boosting events, it cannot be ignored that the industry is facing some dire times, with falling oil prices resulting in revenues reported by Oil and Gas UK as being reduced to “£24 billion for the year, the lowest since 1998.” The active 2015 survey also stated that, “in 2015 production is forecast to increase to 1.43 million boepd.” Which slightly, but not by much, softens the blow. Although all these reports are regulated and researched to the bare bones, it is worth bearing in mind the speed in which the oil price declined. This sudden slump can remind all those who are a part of the industry, just how volatile and unexpected it can be. A recent example of this is the announcement from ConocoPhillips in March 2015.

ConocoPhillips plans to invest around US$2.5 billion in Indonesia’s upstream oil and gas, after recently cutting jobs and freezing pay in the US and the UK just two months before.

ConocoPhillips plans to invest US$2.5 billion in Indonesia.

This is positive news for the recruitment agencies. Since the nature of the industry is evolving it is also creating new types of jobs. A report produced for Oil & Gas UK by consultancy EY in December 2014 found that, “companies are more likely to hire permanent staff where they previously have used contractors,” making job prospects in the oil and gas industry more reliable to recruits. But at the same time the report also revealed that, “70 percent of respondents said they had difficulty filling senior positions in technical safety, drilling, geosciences and business support.” With a variety of technologies now coming into play, a diverse range of technical expertise is becoming increasingly required. Ultra-deepwater well construction presents very unique technical and economic challenges to deepwater operators worldwide.

Wells are now being planned and drilled in water depths up to 12,000 ft. and total depths beyond 30,000 ft. As a consequence more operators have to rely on enhanced oil recovery (EOR) technologies where there is a greater use of software and electronic systems for data analysis.

It is easy to jump on the negative bandwagon and as of late the news about job cuts in the industry has become shockingly un-shocking. But outside of the UK the demand from international markets remains strong. The quantity of the UK based workforce supporting projects overseas is expected to grow from 26 percent to 35 percent by 2019. It is easy to forget the employment opportunities and demands for expertise which are available to the UK from abroad.

Recently there has been a desire to recruit those who have expert knowledge in the subsea, geosciences and petroleum engineering sectors, as the UK currently holds the baton for experienced workers in subsea. The fast moving subsea sector still remains strong even in such hard economic times, providing 60,000 UK jobs.

Although it is felt by many that the tactic of playing it safe in this area needs to change. This opinion was voiced by the Chief Executive of Subsea UK, Neil

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Information such as this must be confusing for graduates coming into the industry for the first time. Some companies seem to bounce back quicker than others, but many have chosen to change the way in which they work. The hopeful future of recruitment in oil and gas is the rise in companies taking on more permanent staff instead of contractors. Also the rise in openings for recruits with specific skill sets in the subsea and science sectors. The challenge for companies in this competitive market is not just the swaying of the oil price but the way in which they decide to adapt to this new reality. The ‘butterfly in the stomach’ of the top industry leaders may have been the needed driving force for companies to change strategies to benefit recruitment and production in the long run. Like all jobs, uncertainty is always lurking somewhere in the background, no trade is untouchable by the economic climate or a change in technologies. In regards to oil and gas, where there is still a demand, a supply, along with jobs, will follow.

www.projectsogp.com - Summer Edition 2015

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3M Oil & Gas Solutions

Taking on the

Elements

> Protecting People and Their Environment > Extending the Life of Critical Assets > Improving Productivity

www.3Moilandgas.co.uk www.projectsogp.com - AOG Edition 2014

PROJECT PROFILES

PROJECT PROFILES highlighting major projects

SEA LION FIELD PAGE 14

STONES FIELD PAGE 16

JULIA FIELD PAGE 18

ANGSI FIELD PAGE 20

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PROFILE

SEA LION FIELD Sea Lion Field Project image courtesy of Premier Oil

PROJECT PROFILE DETAILS The Sea Lion Field is located on Block 14/10 in Production Licenses 032 and 033, 220 kilometres North of the Falkland Islands in 450 metres of water depth and is worth US$2 billion. The field was discovered by Rockhopper in 2010 after acquiring the PL032 licence from Shell. Rockhopper has completed two separate 2D seismic surveys and four CSEM lines on this acreage. First oil is now targeted for 2019, another delay for the troubled development, but costs to first oil have also been reduced and are now estimated at under US$2 billion. The initial phase will now commercialise approximately 160 mmbbls oil with a floating platform targeting 50,000-60,000 barrels oil per day.

In July 2012, Premier farmed in for 60 percent of Rockhopper Exploration’s licence interests in the North Falklands Basin, including the Sea Lion discovery.

The transaction was completed in October 2012 and Premier assumed operatorship of the Sea Lion area development in November 2012. Following formal transfer of operatorship to Premier, a Falkland Islands Sea Lion project team was assembled.

OPERATORS The two companies with interests in the Sea Lion oil field are Premier Oil and Rockhopper Exploration PLC. Premier Oil is the operator with a 60% interest in the project, leaving Rockhopper with the remaining 40% interest in the Sea Lion oil field.

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www.projectsogp.com - Summer Edition 2015

PROFILE

PROJECT UPDATES Sean Lion Project Development The Sea Lion Field was first discovered in production licence 032 in 2010 by Rockhopper. In March 2011, the operator discovered a significant oil column in appraisal well 14/10-4 in the Falkland Islands. Well 14/10-4 uncovered 33 metres of net pay in good quality reservoir with 20 percent average porosity. The well was drilled to a total depth of 2,801 metres, finding the oil-water contact level at 2,477 metres. In 2012 Rockhopper announced a Farm-out to Premier Oil. The transaction was completed in October 2012 and Premier assumed operatorship of the Sea Lion development in November 2012. The reasons for this were to attract an experienced and capable operator to develop the Sea Lion Field. Also to ensure that the project could be fully financed and at the same time Rockhopper could keep a reasonable, material stake in the field.

Since the farm-out, Premier and Rockhopper have decided on a specific concept for the project. The companies decided to use a tension leg platform. This was determined to be the most suitable technical and commercial solution for the development. With the type of facility agreed upon, the partners then entered the front-end engineering and design stage in the 2Q of 2014. Unfortunately, these plans did not run as quickly as planned in 2014 and subsequently the operator has had to review its strategy for the field.

This was due to the new lower oil price environment and Premier Oil’s commitment to maintain a strong financial position. Premier has chosen to opt for a smaller initial development of just the north east part of the field, utilising a reduced well count with an estimated prefirst oil capex of less than US$2 billion. Terms have been agreed with Rockhopper to split the remaining development equally between the initial development and the next phase (US$337 million to each). Although it is no longer a pre-requisite to be able to sanction the project, Premier will continue to seek a partner for the Sea Lion development. Initial indications suggest that such a scheme would recover c. 160 mmbbls in 15 years with a plateau rate of 50-60 kbopd. Produced oil will be routed to a leased FPSO. Sea Lion Phase 1 could be sanctioned as soon as 1H 2016.

UPDATES Premier direction

changes

development

Due to the industry’s current economic climate Premier Oil Plc will develop only a small section of its Sea Lion project in the Falklands as it seeks to cut costs, Oriel Securities Ltd. stated: “A smaller initial development is more appropriate for Premier’s balance sheet.” Due to this change in direction the company will now focus on creating a single subsea drill centre linked to a leased FPSO in the North East part of the field. The initial development concept was to build a Tension Leg Platform (TLP) with an integral drilling rig. A TLP was originally selected because it offered a more robust development scheme than a new build FPSO-based scheme. The platform would have provided Premier with a permanent drilling rig, minimal subsea infrastructure, and phased development. However, the new scaled back project plan is not necessarily set in stone as it can be altered. This is because Premier is still looking for a partner to join them with the development of the Sea Lion project. If such a partner is found, the extra funding could mean that there is potential for the development to progress to include more FPSO’s or even a TLP. The extra funding could also lead to more phases of development covering the entire field.

There are 8 contractors involved in the project. Amec Foster Wheeler is one of the major contractors who overtook Wood Group Mustang in 2014 for the front-end engineering and design contract based on the tension-leg drilling and production platform. The commencement of the field is estimated to start in 2019.

Sea Lion Field Project image courtesy of Premier Oil

www.projectsogp.com - Summer Edition 2015

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PROFILE

STONES FIELD Stones Field project image by FMC Technologies

PROJECT PROFILE DETAILS The Stones Field is an ultra-deepwater oil and gas development located in Block 508 in the Gulf of Mexico, 200 miles southwest of New Orleans, Louisiana. This project is especially unique as it will contain the deepest production facility in the world, due to its substantial water depth of 2,900 metres. The Stones Field was discovered by Shell in 2005 and is estimated to contain 2 billion barrels of oil.

In 2005 the Discoverer Spirit drillship drilled the Stones-2 to a true vertical depth of 8,705 metres in a water depth of 2,919 metres. The discovery encountered several hydrocarbon-bearing sands in the Lower Tertiary interval. Then in 2008, an exploration well, Stones-3, reached a depth of 8,961 metres and confirmed the previous discovery of multiple oil-bearing sands. The project is set to be developed in phases, the first phase being; two subsea production wells tied back to a FPSO vessel and host facility. Shell plans to have completed this phase by 2016.

OPERATOR Shell is the sole owner and operator of the Stones Field holding 100% interest in the project.

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www.projectsogp.com - Summer Edition 2015

PROFILE

PROJECT UPDATES Stones Field Project Development Shell has decided to move forward with the development of its Stones project in the Gulf of Mexico, paving the way for fabrication of the field’s proposed floating production vessel and subsea infrastructure. The ultradeepwater oil and gas field development will host the deepest production facility in the world; however Shell is yet to disclose a capital expenditure figure.

Shell aims to exploit the field’s estimated 250 million barrels of oil equivalent in recoverable resources using an initial two subsea production wells tied back to a floating production, storage and offloading vessel.

The company also plans to add six more wells and multiphase pumping during the second phase of the ultra-deepwater project. Shell’s overall aim is to increase the productivity and recovery results in each of the different phases of the project. This is thought to be achieved by using a diverse range of innovative technologies and project development expertise.

It will be the first US Gulf field to be developed by the company using an FPSO and only the second such development planned for the region (Petrobras has also utilised such a unit at its Cascade-Chinook project). An FPSO design was selected to develop the find due to the relative lack of infrastructure, seabed complexity and unique reservoir properties. Multiphase seafloor pumping is planned for use in a later phase to pump oil and gas from the seabed to the FPSO, increasing recoverable volumes and production rates. Shell had earlier been working with Dutch contractor SBM Offshore on a front-end engineering and design study based on a dynamically positioned floater.

The floater will have a turret with a disconnect able buoy to allow it to weathervane in normal conditions and disconnect from the well systems during the US Gulf hurricane season or in other adverse weather states. It will also have a lazy wave riser configuration with steel centenary risers. The floater will have a buoyancy with an arch bend to decouple the FPSO’s dynamic motion and to boost the overall riser performance.

NEWS IN BRIEF CONTRACTS Strainstall has been selected to work alongside SBM Offshore Strainstall UK Limited has been selected to work alongside SBM Offshore on the Shell Stones project. The project involves the use of an FPSO (Floating Production Storage and Offloading) which has a forward mounted turret with a disconnect able buoy (Buoyant Turret Mooring or BTM) allowing it to weathervane in normal conditions and disconnect from the FPSO upon the approach of a hurricane so that the FPSO can sail to a safer area.

The unique BTM design required six specially designed load pins to measure the forces between the buoy and the FPSO as they are an integral component of the detachable buoy system, and a critical element to ensure the safety of the FPSO and BTM. A custom design was required to meet SBM’s requirements and to incorporate the unique features. Strainstall, with over 40 years’ experience in designing special application load pins, was ideally placed to design and manufacture such a loadpin.

In addition to the design, manufacture and testing of the load pin a comprehensive documentation package was specified by SBM, as is customary for offshore projects. The challenging technical requirements of the pin meant Strainstall was contracted to produce an unusual shaped design which was ATEX and IECEx certified with internal amplifiers to monitor the clamping forces between the vessel and the detachable buoy.

Shell is targeting peak output of 50,000 barrels of oil equivalent per day under the first phase of development at the field, which holds an estimated 2 billion boe in place and is believed by the company to have significant upside potential. Shell has plans to start-up the project in 2016.

Image by FMC Technologies

www.projectsogp.com - Summer Edition 2015

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PROFILE

JULIA OIL FIELD Julia Oil Field project image by ExxonMobil

PROJECT PROFILE

DETAILS

The Julia Oil Field was first discovered in 2007 by ExxonMobil. Julia is one of the first large oil discoveries in the ultra-deepwater frontier of the Gulf of Mexico.

The Julia discovery is located 265 miles southwest offshore New Orleans in the Walker Ridge Area. The total reservoir is estimated to contain nearly six billion barrels of resource in place.

The Julia Field comprises five leases in the ultradeepwater Walker Ridge area. The blocks are WR-584, WR-627, WR-628, WR-540 and WR-583. The Initial development phase is designed for a daily oil production of 34,000 barrels of oil.

In 2013 both Statoil and ExxonMobil agreed to proceed with the field development which is estimated to take approximately three years.

OPERATORS ExxonMobil is the operator of the Julia Field with a 50% interest in the Julia Field. Statoil also holds a 50% interest in the Julia project.

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PROFILE

PROJECT UPDATES Julia Oil Project Development The Julia Oil Field project has an estimated capital cost at over US$4 billion with first oil is expected in 2016.

The Julia Field is estimated to have a production life of up to 40 years.

Activity continues on the Julia Phase 1 project in the Walker Ridge Area, which is a subsea tieback to the coventurer-operated St. Malo. Engineering, contracting, and technology qualification activities are steadily progressing with a variety of recent contacts being awarded. The Julia Field has a total of seven contractors working on the project. A major contract which was awarded in 2013 at the Julia Field was the contract won by Nexans.

Nexans was awarded a significant contract by OneSubsea (a Cameron & Schlumberger company) to design, manufacture and supply an integrated power umbilical solution and associated termination hardware for the development. A 23 kilometre length of Nexans’ innovative power umbilical, which combines power cables and umbilicals in a single cross-section, will be installed at water depths in excess of 2,000 metres to tieback the Julia Field subsea systems to a semisubmersible production unit.

CONTRACTS Trendsetter Engineering contract by ExxonMobil

awarded

Trendsetter Engineering has been awarded a contract by ExxonMobil for module hardware design and the overall integration of a subsea wellbased High-Integrity Pressure Protection System (HIPPS) to be installed at the Julia Field in the US Gulf of Mexico. The Julia HIPPS is a pressure protection system designed to prevent internal damage to downstream subsea equipment in the event a well encounters higher than expected pressures. Delivery is scheduled for 1Q 2016.

Julia is being developed in the Walker Ridge area as a subsea tieback to the Jack/St. Malo floating production unit.

“Trendsetter is very excited to be a part of the Subsea HIPPS Module System project for the GoM. We have a strong history with ExxonMobil, having helped them solve an array of subsea challenges over the past 15 years. We are very pleased to build on this positive relationship with our client.” Nadeem Elnasr, Project Manager at Trendsetter Engineering.

Nexans has pioneered the development of power umbilicals that integrate the functions of power cables and umbilicals in a single cable, enabling a high-voltage (HV) supply to be provided for deepwater projects. The power umbilical includes a number of steel tubes, as well as fiber optic elements and signal cables for control and monitoring purposes. For the Julia project, the power umbilical will operate subsea pumps supplied by OneSubsea.

Drilling operations started in 2014, with the help of Maersk Drilling’s first ultra-deepwater drillship. Maersk was contracted to conduct the drilling operations in the US Gulf of Mexico for ExxonMobil with a duration of three years. Featuring dual derrick and large subsea work and storage areas, the drillship design allows for efficient well construction and field development activities through offline activities.

The Julia oil Field is scheduled to be brought on stream in 2016, with an initial production capacity of 34,000 barrels of oil per day.

Julia Oil Field project image by ExxonMobil

www.projectsogp.com - Summer Edition 2015

19

PROFILE

ANGSI FIELD Angsi Field image by Petronas

PROJECT PROFILE DETAILS The Angsi Field is located 160 kilometres offshore Terengganu on the East Coast of the peninsula, Malaysia. First production began from the Angsi Field in the South China Sea off Malaysia in 2001, 6 months ahead of schedule and 30 percent below original approved cost. Angsi’s initial flow was 15,000 b/d of oil and 60 MMscfd of gas. At peak, Angsi should produce 65,000 b/d of oil and 450 MMscfd of gas (10 percent of Malaysia’s current oil production and 17 percent of its current gas production, respectively). An integrated oil and gas central processing platform is connected to a 52 well drilling platform via a 100 metre bridge, as well as a 32 well satellite drilling platform. There are connections to existing gas production facilities at Guntong-D and Seligi-A, a connection to the existing oil production facilities at Tapis, and a new 166 kilometre pipeline from the Angsi complex to the onshore receiving facility.

OPERATORS In the Angsi Oil and Gas Field the working interests are shared 50/50 between Petronas Carigali Sdn and ExxonMobil, with Petronas acting as the operator.

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PROFILE

PROJECT UPDATES

CONTRACTS

Angsi CEOR Pilot Project

Petrofac awarded FEED contract

The Angsi Field was identified as the candidate for the pilot project to evaluate the effectiveness of the Alkaline Surfactant (AS) process in improving oil ultimate recovery through the reduction of residual oil saturation. The pilot project entails the injection of AS chemical into Angsi I-68 reservoir and will use a Single Well Tracer Test to determine the residual oil saturation in water-flooded area.

Petrofac has been awarded the front-end engineering and design (FEED) contract for the Angsi chemical enhanced oil recovery project. A new proposal has been made to pump a chemical mixture via a spare pipeline instead of injecting through a converted, ship-shaped CEOR unit to the Angsi field. Due to this contract award and new plan, the mix of chemicals will be transferred to the largest drilling or riser platform on the Angsi field. This will be done by the chemicals passing through a 130-kilmetre pipeline which starts at the Terengganu crude oil terminal. The FEED study will determine whether any modifications will be needed, as the new offshore structure may not be able to withstand the chemical injection requirements. However, this initial plan may be set to change due to the costs exceeding Petronas’ initial budget of US$1 billion.

The AS technology combines synergistically, the interfacial tension reducing effect of added surfactants and those produced in the acidic crude oil by alkaline reaction of organic acids. AS flooding shows promise of being cost-effective because alkali, in addition to reinforcing the activity of surfactants, reduces the depletion of surfactant that occurs due to adsorption/ retention in the reservoir 2-3. The Angsi CEOR pilot project marked a significant milestone for the Malaysian oil and gas industry as it was the first CEOR project implementation in the country. The results of this pilot project are crucial in the future decision making for a large-scale full field and AS technology implementation with reduced technical risk. The result may be one of the keys in deciding the fate of the CEOR implementation in the Malaysian oilfields. In implementing this pilot project, together the team tackled and overcame significant technical and operational challenges.

One contract in particular that has been a major milestone for the project was the contract which was awarded to MMC Oil and Gas. The contract came about due to Petronas and ExxonMobil’s desire to re-design the Angsi Chemical Enhanced Oil Recovery project from the original CEOR vessel concept into an onshore treatment plant at Terengganu on the East Coast of Malaysia Peninsula. Since 2012, Petronas and ExxonMobil have been investigating solutions to maintain the plateau production and expand the lifespan of the Angsi Oil and Gas Field in the South China Sea. Through the Angsi full field development project, Petronas and ExxonMobil are expecting to recover: 1.4 trillion cubic feet of natural gas and 160 million barrels of crude oil.

To boost the recovery rate, Petronas is willing to deploy the chemical enhanced oil recovery techniques to all the maturing fields such as Angsi. This technology relies on a smart mixture of alkali-surfactants-polymers diluted in soft water. The performances of the CEOR depends directly on the quality of chemical mixture and water treatment process. Due to the distance from shore, Petronas and ExxonMobil completed a front-end engineering and design work to operate this chemical and water treatment process offshore with a purposely converted CEOR vessel. First operations for the onshore Angsi CEOR project are expected to start in 2016.

Angsi Field project images by Petronas

www.projectsogp.com - Summer Edition 2015

21

NORTH AMERICA

NORTH AMERICA

PROJECT UPDATES

CenterPoint provides power for Freeport LNG Terminal CentrePoint Energy will build new and expand existing electric transmission infrastructure to provide the 656 MWs needed to serve the Freeport LNG export project currently under construction on Quintana Island in Brazoria County.

The approximately US$80 million transmission project includes a new 345/138kV substation and multiple 138kV transmission system upgrades. In 2014, CenterPoint submitted a proposal to the Electric Reliability Council of Texas to meet the increased needs of the project. In March 2015, the ERCOT board of directors endorsed the proposed transmission project which is expected to be completed in mid-2017.

Operations at the Freeport LNG facility are expected to commence in 2018.

The significant new load at Freeport LNG’s project also underscores the need for CenterPoint’s planned Houston import project. ERCOT identified the proposed line as critical to provide an additional power supply into the Houston area by summer 2018.

Oceaneering to supply the umbilicals and umbilical distribution hardware Oceaneering International, Inc. secured a contract in December 2014 from Hess Corporation to supply the umbilicals and umbilical distribution hardware for the Stampede Project located in the Green Canyon area of the US Gulf of Mexico. This hardware will be used to transmit hydraulic control fluids, chemicals, and electrical power signals to operate and monitor subsea wells and manifolds. The order is for electro-hydraulic, steel tube umbilicals totaling approximately 14.3 kilometres in length, umbilical termination assemblies, hydraulic and chemical distribution units, electrical distribution units, flying leads, and junction plates.

Oceaneering plans to manufacture the umbilicals at its plant in Panama City, Florida and to manufacture the distribution hardware at its facilities in Houston, Texas.

Umbilical production is expected to commence in the second quarter of this year, with delivery scheduled for mid-2016.

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NEWS IN BRIEF Mitsui signs contracts for chartering two new ships to transport LNG to Japan from Cameron LNG project Mitsui & Co., Ltd. has signed contracts for chartering two new ships to transport LNG to Japan from the Cameron LNG export project in Louisiana. The charter period is expected to begin in 2018-2019 and has a maximum of 25 years. Ship owners are subsidiaries of Mitsui OSK Lines Ltd. and Nippon Yusen Kabushiki Kaisha. The LNG carriers each have capacities of 177,000 cu m and were built by Mitsubishi Heavy Industries Ltd. The contracts for five other vessels were signed in 2014. A contract for an eighth vessel is expected in due course.

Chevron awards INTECSEA subsea FEED contract at Gulf of Mexico fields INTECSEA has been selected by Chevron U.S.A. Inc. to provide engineering and longlead procurement services for the front-end engineering and design (FEED) phase of the Buckskin/Moccasin development in the Gulf of Mexico. Under the contract, INTECSEA will execute the FEED and procurement services for a subsea tieback from the Buckskin and Moccasin fields to a nearby production facility located in the Outer Continental Shelf of the Gulf of Mexico.

Technip wins contracts

two

subsea

Technip has been awarded by Stone Energy Corporation both a flexible pipe supply contract and an installation contract for the Amethyst field, located on Mississippi Canyon 26, in the Gulf of Mexico. The first contract includes the detailed engineering, procurement, fabrication, assembly and testing of a 5-inch production static riser (almost 9 kilometres long) as well as all associated hardware. The second award covers the installation of the pipe as a tieback to the Pompano fixed platform, in approximately 395 metres of water depth.

www.projectsogp.com - Summer Edition 2015

ASIA

ASIA

NEWS IN BRIEF

PROJECT UPDATES Mammoet completes new installation for Shell Mammoet has completed the installation of a new type of oil and gas platform for Shell. Mammoet worked on the Malampaya Phase 3 depletion compression platform (DCP) project for Shell Philippines Exploration. The Malampaya DCP floats into place over its final location, and the legs are lowered onto the prepared seabed. A pre-installed system jacks the platform on 80 metre legs to lift it from the water, eliminating the need for the large, specialised vessels that are normally required in offshore platform installation.

The DCP’s end-location is next to the Malampaya shallow water production (SWP) platform, where it will be connected to by a permanent bridge, which will also be installed by Mammoet. Shell operates the Malampaya project, located off the coast of Northwest Palawan, on behalf of its joint venture partners and the Philippine Government. The new platform, which is currently in phase three, will help in the extraction of natural gas from the Palawan basin, and process it via a shallow water production platform. Gas will be transported along a 504 kilometre underwater pipeline, towards the onshore gas plant. Mammoet provided assistance in lifting and lowering the platform during the fabrication process.

JOGMEC to provide equity financing for JX Nippon Oil & Gas Exploration JOGMEC will provide equity financing to JX Nippon Oil & Gas Exploration Limited and INPEX Offshore South West Sabah Limited, established by JX Nippon Oil & Gas Exploration Corporation and INPEX CORPORATION respectively, which acquired participating interests in the exploration Deepwater Block R offshore East Malaysia. The estimated amount of equity financing is approximately US$189.8 million. In January 2012, JX and INPEX entered into a production sharing contract and started the exploration activities through their subsidiaries. JOGMEC will provide equity capital up to 50% covering the exploration expenditures incurred by the subsidiaries of JX and INPEX for the project.

A number of oil and gas fields have been discovered offshore East Malaysia, this Block is considered to be one of great potential.

Honeywell Process Solutions hired for third platform at Te Giac Trang Honeywell Process Solutions has been hired by Hoang Long Joint Operating Co to provide project management and engineering for the third platform at the Te Giac Trang White Rhino field off Southern Vietnam.

McDermott to supply manifold and subsea safety isolation valve fabrication for Jangkrik Complex FMC Technologies has awarded McDermott International a contract to supply manifold and subsea safety isolation valve fabrication for the Jangkrik Complex offshore Kalimantan, Indonesia.

The scope of the project includes fabrication of approximately 3,200 tons of subsea manifolds and subsea safety isolation valve modules to be installed in water depths ranging from 3291,640 ft. Fabrication has started at McDermott’s Batam Island facility in Indonesia, which will also be responsible for factory acceptance testing and system integration testing.

Petra Energy Berhad awarded topside maintenance execution services Petra Energy Berhad has been awarded the topside maintenance execution services for the Gumusut Kakap floating production system by Sabah Shell Petroleum Company Ltd. Under the terms of the contract, Petra Energy will provide contract management, site execution and offshore maintenance crew to undertake maintenance activities for the Gumusut Kakap floating production system. The contract is for a period of 14 months beginning April 1, 2015 and expiring on May 31, 2016 and is on a call-out basis – work orders will be issued at the discretion of the client based on standard schedule of rates. The topside maintenance services contract is an addition to the offshore services contract awarded in 2012

by Shell for the Gumusut Kakap project, which was the first deepwater project for Petra Energy.

www.projectsogp.com- -Summer ONS Edition 2014 www.projectsogp.com Edition 2015

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CLIENT FEATURE

CMP PRODUCTS

• Available to the highest levels of short circuit • Stainless steel, aluminium, LSF V-0 Nylon and LUL approved polymers available • Parallel, trefoil and multicore formations available to suit any installation

proudly presents its new extensive range of cable cleats

CMP Products; providing exceptional customer service, whatever your needs

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CMP Products also have the capabilities within their technical department, to not only assist with technical queries but also design bespoke applications to suit needs of their clients. Exceptional customer service and constant research and development are at the heart of what they do, and CMP Products are relentlessly working to retain their number one supplier status. This is achieved by continually improving their processes and functions to maintain the standard that their clients around the globe expect from them.

s part of their continual research and development and innovative design, CMP Products, the global market leaders and specialists in cable glands and cable accessories across the globe, are proud to present their new, extensive range of cable cleats.

Already specialists in cable gland and cable accessories, CMP Products have harnessed their extensive knowledge and experience in industrial and hazardous environments, to design and manufacture this wide range of cleats. CMP’s cable cleats have been designed to withstand all the industrial and hazardous environments CMP’s products are specialists in.

CMP Products; providing protection, whatever the environment

To request the latest cleat catalogue contact: Call 1300 CLEATS (Aus) or +44 (0) 191 265 7411 (UK)

All cable installations vary in design from one installation to the next, which is why CMP Products design and manufacture cable cleats for all applications, including single, trefoil, quad and matrix applications. They offer a range that is both comprehensive and diverse, designed for use within industrial areas and hazardous locations, as well as specialist applications such as railway and underground, oil and gas, and petrochemical.

The CMP Cleat Range is available to suit a variety of support structures, including cable ladder, cable tray, basket, channel, masonry or concrete. They are also tested in accordance with IEC 61914:2009 to ensure that, regardless of the cable formation used on the installation, there is a suitable cleat.

CMP Products; providing high quality, whatever the material CMP cable cleats are manufactured from various high quality materials, with excellent flame retardant properties, to suit the environmental conditions they may be subjected to. CMP Products’ cable cleats are designed, constructed and third party certified in accordance with IEC 61914:2009, to ensure both the safety of personnel and the protection of the cable management system. At CMP Products, safety is our priority.

• Patented design feature • Designs to fit every situation and environment • Third party certification to IEC 61914:2009

www.cmp-products.com

www.projectsogp.com - Summer Edition 2015

25

DSL

TECHNOLOGY

Despite the tough drilling industry climate - DSL’s Experience, Integrity, Investment and Qualification continue to lead the way DSL isn’t just a mast or derrick inspection company, service provider or offshore contractor, it’s a complete API licenced ‘drilling structure specialist’ providing the upstream oil and gas industry with qualified drilling structure turnkey solutions, trained personnel and backed by over 35 years of experience.

In addition to its principals of safety, quality and integrity, what really sets DSL apart is its ability to bring invaluable OEM product knowledge to every Design, Manufacture, Analysis, Inspection, Repair, Upgrade, Re-certification, DROPS or Decommissioning activity it is involved with, anywhere in the world.

Despite the current industry conditions, DSL continues to look ahead and in particular views Saudi Arabia as a key future market for the services and products that DSL provides, especially as there are in the region of 200 national and international rigs operating ‘in kingdom’.

In support of this buoyant region and considered fundamental to DSL’s future growth there, the company has for the last 12 months been navigating the Saudi Aramco ‘technical approval’ process, which in addition to other business development activities will enable the company to set up ‘in kingdom’ and further cement its growing Middle Eastern presence.

As a result, DSL is extremely pleased to announce that it has achieved Saudi Aramco’s coveted ‘Technical Approval’ – an important milestone for the company and testament to the dedication and hard work put in by DSL and its team in the Middle East. Technical Approval, enables DSL to offer and deliver its full

range of qualified drilling structure related products and services, not just to Saudi Aramco but all land and offshore drilling contractors operating ‘in kingdom’.

With its Middle East focus, DSL is very excited to announce the purchase of its new 10,000 sq’ mtr quayside office and manufacturing facility at Hamriyah in the UAE, following this the company will be looking to progress with achieving API 4F, API Q1 and ISO 9001 accreditation in the not too distant future.

Having been DSL’s regional hub for land rig/drilling derrick engineering, analysis and recertification activities for a number of years, this important development will enable further expansion and continued growth of the drilling contractor support services provided by DSL covering the critical areas of rig and derrick repair, upgrade, refurbishment and recertification. Expected to be operational mid/end of April, this move will significantly increase its ‘turnkey’ project capability, while complimenting the extensive range of services and technical support already available to its clients in and around the MENA region.

Moving further East, DSL Singapore is also very proud to announce that it recently achieved the industry’s benchmark accreditation API 4F, API Q1 and ISO 9001 for the Design & Manufacture of Drilling Structures, cementing its approach to quality and integrity while allowing the company to offer an even wider range of drilling structure products, services and qualified solutions to its ever increasing list of Asia-Pacific clients. This achievement along with its continual increase in regional sales has enabled DSL Singapore to double the size of its Loyang office and manufacturing facilities, significantly increasing its inhouse capability and allowing it to fully encompass the design and manufacture of derrick sections, masts and substructures.

This milestone further underlines the high levels of quality, experience and management that DSL aim to deliver at all levels, in any region and to any project.

Whether it’s an API inspection, replacement part, mast or rig repair, full refurbishment, training or complete new derrick, with DSL’s Depth of Service, Attention to Detail, Qualified Personnel and Client Focus – you can be sure of getting the attention, support and solution you require.

Land Rig Refurbishment

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www.derricksl.com www.projectsogp.com - Summer Edition 2015

www.projectsogp.com - AOG Edition 2014

TECHNOLOGY

INDUCTOTHERM

Radyne Offshore Division bring advanced techniques to the offshore pipe lay industry

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pecifically in the field joint sector – reliant upon tried and tested procedures that had not changed in decades. Radyne Offshore a part of Inductotherm Group has now set the lead in new developments, accepted and operated for the last 10 years, this continues today. Radyne Offshore has been supplying induction heating equipment and systems to the offshore pipe lay industry since 1994, principally to the major pipe lay vessel owners and operators.

With an ever increasing demand for the use of technology in an arena that insists on proven equipment to be installed on lay vessels working in multiple, changing environments and climates, the Radyne Offshore team offer a range of track proven Induction heating systems second to none in the world. Developing new technologies is part of the future in offshore. Servicing some of the largest pipe laying projects in the world: including Blue Stream in 2000, Thunderhorse (2002), Mardi Gras (2004), Medgaz (2007), and including more recently Walker Ridge, Jack-St Malo, Liwan, Guara Lula, Cabiunas, and presently Ichthys and South Stream (2014), to name but a few, Radyne Offshore is now recognised by all pipe laying vessel owners and operators.

Using the most advanced technology available, the Radyne “Merlin” field joint heat and coat machine enables subsea pipe lay rates to be significantly increased by using an automated system that ensures repeatability and reliability of processing the field joint coating. By using a fully computerised system, the Merlin gives total control to the coating supervisor - using preselected heating and coating recipes modelled by the Radyne team in conjunction with the client. The Merlin design concept is based on 4 frame sizes to cover 8” to 48” OD pipe diameters and uses interchangeable

tooling. The units are therefore not project specific but become a vessel asset to be used over several projects dependent on pipe diameter and joint length.

Radyne Offshore equipment has brought significant advances and advantages to the field joint processing sector, amongst which are but not restricted to the following: 1) Considerably faster cycle times 2) Computer controlled equipment 3) Process parameter monitoring for each joint 4) Reduced manning levels 5) Operational Reliability 6) Process Repeatability Clam coils for pre-heat prior to welding, pre-heat prior to shrink sleeve application and post weld heat treatment are all equally important parts of the product range used in offshore activity. Each induction coil is designed and modelled to heat the field joint accurately – controlling the heat affected zone, and ensuring that the factory applied coating adjacent to the weld area is not overheated removing the risk of disbondment. End pre-heat coils for heating pipe-ends prior to welding are provided for stalk prefabrication both onshore and offshore.

Radyne Offshore Division of Inductotherm supply complete systems for field joint processing – including containerised induction inverters and associated cooling. The containers are designed to meet the DNV2.7-1 offshore specification, and are supplied as standard in 20ft and 10ft versions, depending upon client requirement. The 20ft system includes the supply of 2 x 450TC3 450kW inverters (one on line, one back up) together with bespoke dual water cooling chiller system. The 10ft version includes a single inverter and water to water heat exchanger recirculating cooler – with the option of using sea water for the primary cooling.

The Flexitune unit - a small versatile power supplyis supplied for use with hand held coils for holiday repair, and for aiding the removal of parent coating in preparation for anode tag welding. Radyne Offshore has a first class team of dedicated offshore service engineers - able to support the Radyne plant as and when necessary – experienced in all aspects – from computer programming to mechanical and electrical engineering - and process technology.

The Merlin, by Inductotherm 28 28

www.inductothermhw.com www.projectsogp.com - Summer Edition 2015

TECHNOLOGY

SILVER FOX

Same Software, Same Printer, Same Ribbon With the oil price hovering around US$50/US$60 a barrel (Brent Crude at the time of writing), focusing on time and cost saving is essential. This is true for electrical, instrumentation and for all other areas. Silver Fox has developed over many years, ways that can dramatically help slash both time and costs, or as they put it: turning “Time into Profit”.

Heat-shrink and Non-shrink wire marking options are two of the many cable/wire/equipment labelling methods offered by Silver Fox ALL of which use the SAME SOFTWARE, SAME PRINTER AND THE SAME RIBBON. This in itself ensures its solution is fast and easy to control for whoever is preparing the labels. As Silver Fox has written its own thermal printer driver, the user gets seamless changes between label types. There is no time or labels wasted trying to get it all to work. There are also substantial savings available preparing/printing. For example, on its website one of its distributors reported producing and printing 25,000 Non-shrink labels in just 4 hours. Silver Fox illustrates that speed and time savings are also the same for their Heat-shrink. Since labelling is at the end of a project, this is a real benefit to the contractor.

Silver Fox’s Non-shrink tubing has a special oval shape that ensures it does not slip down or turn on the wire.

It is also a fraction of the cost of Heat-Shrink. Since NO HEAT GUN IS NEEDED, it is suitable for hazardous areas.

Non-shrink is available in 3 colours – white/yellow/blue with the latter being helpful for improved identification on intrinsically safe circuits. Silver Fox is passionate about quality and durability and as such, the finished printed Heat-shrink and Non-shrink labels have been independently tested for: Salt mist spray/H2S/High Temperature/Low Temperature.

The Silver Fox starter kit required to prepare and print its labels is very straightforward, quick and easy.

The “Fox-in-a-Box” is available in 3 levels: Standard/ Advanced/Professional. The difference is the Labacus software. Each level offers more powerful functionality, more efficiency and more time-saving. The Professional level Labacus software includes functionality to prepare both ends of a wire (cross-ferruled) at the touch of a button. This is then combined with its unique printer facility, to print 2 rolls of Heat-shrink/Non-shrink, at the same time.

It appears the software solution is truly future proof, uniquely the Labacus Software includes free of charge, a module that automatically updates over the web as new templates and functionality becomes available.

Free support for set up and on-going software training/ support is included and there is no annual licence fee.

As well as being pre-loaded with all the thermal printer template options, the software incorporates all Silver Fox’s laser templates. These are designed to be printed through a standard office laser printer and include; optical fibre flag labels, wrap-around self-laminating labels for data cables and tie-on cable labels.

The CEO of Silver Fox, Nick Michaelson stated, “Over many years, the team at Silver Fox has been working tirelessly, to offer solutions that really live up to our commitment of turning time into profit. We are all very excited about the new innovations, due to be introduced over the next 12 to 18 months. These will offer an even greater choice of labels and additional time savings.

Our ethos is simple: We have worked hard so our users don’t have to! As we truly manufacture in the UK, this enables us to control quality, offer highly flexible responsive deliveries, and special orders.”

For cable labelling solutions, in addition to the above tests, the Fox-Flo tie-on cable labels have been independently tested according to IMO for smoke and toxicity, and surface spread of flames. They have undergone extensive 8,000 hours accelerated UV testing that equates to approx. 12-16 years in northern European climates and 6.5-8 years in tropical regions.

After this exposure they still remained clearly legible and flexible. Proving that although labels may look the same – they’re not!

Certificates of conformity on all labels are available from Silver Fox on request.

www.silverfox.co.uk

www.projectsogp.com -- Summer AOG Edition 2014 www.projectsogp.com Edition 2015

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TECHNOLOGY

PLM Software Solutions provide next-generation data and process management platform for the offshore industry

N

ow more than ever, to remain competitive, your organisation must leverage technologies to become smarter, leaner and more excellent in the way you work. Global oil and gas environments are driving smarter innovation in capital project management processes for the offshore industry. Today’s offshore projects are getting more complex and it is clear now that a new way of working is needed. One that drives efficiency and open collaboration throughout the supply chain. Innovation in projects, products and technologies is key to competitiveness, market leadership and topline financial growth. Enterprise software technologies can provide a platform that can shatter old paradigms.

Product Lifecycle Management (PLM) systems are already delivering great value for industries similar to the offshore sector, who have tight deadlines, large complex projects and regulatory requirements.

Learnings taken from industries like Aerospace and Defence in managing the delivery of large programs are now being leveraged in the offshore oil and gas industry, to deliver complex capital projects and the assets that are needed to complete these projects.

PLM is an integrated, information-driven set of software and processes that speeds the innovation and launch of new technologies and solutions. This is based on the establishment of a single system of record which serves as a common repository of all project related knowledge, data and processes and covers the lifecycle of the asset from conception to retirement. This enables efficient management of projects, across the lifecycle of their development.

delivers the platform to properly manage information and make it accessible to all project participants.

PLM will transform business: using PLM to turn more ideas into successful projects Transforming the process of innovation within a company is crucial to enable a business advantage in a highly competitive marketplace. Companies can grow to become best-in-class, just by using innovation more effectively. From past experience best-in-class companies have used innovation to drive more financial and business benefits for their organisations. In fact, best-in-class companies are four times more likely to use PLM technology to drive their business process improvement initiatives than average companies. This gives companies operating in offshore the ability to respond to changing business conditions and manage risks more effectively. Product Lifecycle Management software is changing the paradigm in the offshore industry and creating organisations that are highly innovative, very lean and can execute in the midst of complexity.

For more than 130 years, Siemens has been delivering innovations to the marine and offshore industry including electrical products, systems, software, and services. Siemens innovations in oil and gas, marine and shipbuilding technology opens up new perspectives for the industry.

Facing the challenges of design in the offshore industry, Shipbuilders leverage PLM for rich data and process management One segment of the market that is taking advantage of this new enterprise software technology backbone is in the offshore shipbuilding industry. First movers in key countries across the world are implementing PLM technology to improve the design, construction and testing of offshore platforms and support boats. These PLM systems are delivering rich end-to-end product lifecycle solutions, supporting innovation on a scale not seen before.

With hundreds of thousands of pieces of data being created in the development of an offshore platform, management of such data is highly important. PLM

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www.siemens.com/plm/ukbreakthrough

www.projectsogp.com - Summer Edition 2015

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GLOBAL PROJECTS

GLOBAL PROJECTS Updates from around the world

NORTH AMERICA Project: Lakach Offshore Gas Project In 2005, Pemex launched a large exploration campaign in the deep water of the Gulf of Mexico. Along this campaign, Pemex discovered the Lakach non-associated gas field in 988 metres of water depth. After several exploration and appraisal wells, Lakach was estimated in 2013 to hold 1.3 trillion cubic feet (tcf) of 3P gas reserves with significant upsides still to be tested. In awarding the EPC contracts on mid-2014, Pemex expects to run Lakach as its first deep offshore project by end of 2016.

SOUTH AMERICA Project: Peregrino Oil Field The Peregrino field is an oil field located in the Campos Basin, offshore Brazil and has produced more than 90 million barrels since first oil, in April 2011. In 2013, Statoil, the operator of the project, decided to proceed with plans to expand exploration activities and development of the field. The Peregrino Phase 2 will enable the extension of the economic life of the project and entails a new well head platform and drilling rig (Platform C) which will add approximately 250 million barrels in recoverable resources.

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www.projectsogp.com - AOG Edition 2014

AFRICA Project: West Nile Delta West Nile Delta is a prolific project launched by BP in Egypt targeting the development of the Libra, Taurus, Raven, Fayoum and Giza North fields in the first phase. The field will be tied back 40 kilometres to a purpose-built, onshore gas plant on Egypt’s Mediterranean coast and is expected to deliver 5 trillion scf of gas and associated condensate.

GLOBAL PROJECTS

EUROPE Project: Gina Krog Field (Formerly Dagny) The Gina Krog field development is a gas, condensate and oil field located in the Norwegian central part of the North Sea, which was originally a minor gas discovery north of Sleipner. The project remained dormant for many years, before analysis,during the period 2008 to 2011, determined a contact between Gina Krog and Gina Krog Ă˜st. This confirmed large volumes of oil under the entire structure. Statoil is the operator of the development project.

ASIA Project: Sampaguita Oil and Gas Field (SC72) The Sampaguita field is located at Service Contract 72, offshore Palawan. The field covers 880,000 hectares within the Reed Bank basin. The Sampaguita field is estimated to contain at least 3.4 trillion cubic feet of gas, with an upside potential of as much as 20 trillion cubic feet of gas. Aside from the large Sampaguita gas discovery, the SC 72 field contains at least eight other potential prospects.

The resources within SC 72 are believed to be enough to form the foundations of a liquefied natural gas (LNG) project, the first for the Philippines.

OCEANIA

OMAN Project: Khulud Tight Gas Project Petroleum Development Oman (PDO) and Royal Dutch Shell plc are preparing to call for tender the first phase of the challenging Khulud Tight Gas project in its Block-6 concession of central Oman. The field is characterized by the exceptional depth of the reservoir. It lies within an extremely tight rock formation.

The extraction requires the most advanced recovery technologies.

www.projectsogp.com - AOG Edition 2014

Project: Senecio Discovery The Senecio discovery is located in the north Perth Basin, Western Australia and is estimated to hold reserves of 4.4 MMboe (equivalent to a gross resource of 50 Bcf of wet gas). Interpreted 2D seismic data indicates a potential estimated recoverable volume of at least double the quantity currently booked. The prospect of a commercial Senecio is of major importance, as it will encourage the development of other tight gas opportunities in the Perth Basin.

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GLOBAL PROJECTS

GLOBAL NEWS MIDDLE EAST

McDermott awarded project for new jacket, temporary deck and replacement umbilical McDermott has been awarded a large project for a new jacket, temporary deck and replacement umbilical

by Qatar Petroleum for the North Field Alpha gas development, offshore Qatar. Work is expected to be executed through the second quarter of 2016 and will be included in McDermott’s first quarter 2015 backlog.

The jacket installation calls for highly specialized engineering by McDermott to simulate the expected behavior of the structure during launch to ensure a safe and successful operation. The brownfield contract includes front-end engineering design verification, detailed engineering, procurement, construction, installation (EPCI) and commissioning of a new sixlegged, 15-slot wellhead jacket and temporary drill deck, with a total weight of approximately 5,000 tons.

The work also includes the decommissioning, removal, replacement and pre-commissioning of 2.6 miles of composite umbilical and a fiber optic cable. Detailed engineering, procurement and construction is expected to be carried out by McDermott’s specialist teams in Dubai with vessels from the McDermott global fleet scheduled to undertake the installation work in 2016.

Tecnimont S.p.A. with Archirodon receives EPC contract for Package 1 of IGD Expansion Project Maire Tecnimont’s subsidiary Tecnimont S.p.A. in Consortium with Archirodon has received a Letter of Award (LOA) for an EPC contract with Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS) for the execution of the Package 1 of the IGD Expansion Project (IGD-E) on Das Island, Abu Dhabi, UAE. Overall project value is about US$490 million for the Consortium, out of which approximately US$225 million (46% of overall project value) relates to the Maire Tecnimont Group. Tecnimont is the leader of this partnership, in front of the client.

Completion is scheduled to be within 40 months starting from the effective date, on February 17, 2015.

Tecnimont’s scope consists mainly of the expansion of the existing Gas Dehydration Plant with one additional unit and the related facilities, while Archirodon’s scope covers land reclamation, civil and marine works along the western coast of Das Island for the above expansion.

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NEWS IN BRIEF Zion Oil & Gas signs drilling rig MoU with Viking Services Zion Oil & Gas has entered into a Memorandum of Understanding with Viking Services to contract for a land-based oil and gas rig with deep drilling capacity and certain other oilfield services and crew for exploration activities within Zion’s Megiddo-Jezreel Licence area in Israel. Under the scope of work, Viking would provide its Rig 35, or a rig of similar capabilities with at least a 1,500 HP engine and the capability of drilling to a depth of 15,000 feet.

The agreement would be for a two year term to drill two wells with an option to drill a third well.

The parties anticipate a spud date for the first well (Megiddo-Jezreel #1) in the second half of 2015, subject to Zion securing full regulatory approval from the State of Israel and regional and local governing bodies.

McDermott secures Marjan work from Saudi Aramco McDermott has been awarded initial work for a significant power supply system replacement contract by Saudi Aramco for the Marjan field, offshore Saudi Arabia. Work is expected to be executed through the fourth quarter of 2016 and will be included in McDermott’s first quarter 2015 backlog.

The overall brownfield project comprises integrated engineering, procurement, construction, installation and replacement of the decks of two existing tie-in platforms, as well as the removal and salvage of existing gas turbine generators, and the installation of two new 115kV subsea power and communication cables.

The initial scope of work comprises the engineering, procurement, fabrication and loadout of the platforms and cable. Engineering is expected to be carried out by McDermott’s specialist teams in Dubai, U.A.E.; Al Khobar, Saudi Arabia; and Chennai, India, and the two new electrical decks are scheduled to be fabricated at the Dubai-based fabrication facility.

www.projectsogp.com - Summer Edition 2015

GLOBAL PROJECTS

AFRICA

NEWS IN BRIEF

BP finalises deal to develop Egypt’s West Nile Delta Gas Fields

Maersk Drilling awarded contract from Eni Ghana

BP has signed the final agreements of the West Nile Delta project to develop 5 trillion cubic feet of gas resources and 55 million barrels of condensates with an estimated investment of around US$12 billion by BP and its partner. The project underlines BP’s commitment to the Egyptian market and is a vote of confidence in Egypt’s investment climate and economic potential.

Maersk Drilling has been awarded a contract from Eni Ghana Exploration and Production Ltd, for employment of the newbuild drillship Maersk Voyager. The firm contract period is 3.5 years with an option to extend by one year. The total estimated revenue from the firm contract is US$545 million including mobilisation and escalations. Maersk Voyager will work on the Offshore Cape Three Points Project offshore Ghana with an expected start date of July 2015.

Maersk Voyager is the last in a series of four ultradeepwater drillships in Maersk Drilling’s rig fleet.

The rig was delivered on February 6, 2015 from the Samsung Heavy Industries shipyard in GeojeSi in South Korea.

Production from WND is expected to reach up to 1.2 billion cubic feet a day, equivalent to about 25 percent of Egypt’s current gas production and significantly contribute to increasing the supply of energy in Egypt. All the produced gas will be fed into the country’s national gas grid, helping to meet the anticipated growth in local demand for energy. Production is expected to start in 2017.

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GLOBAL PROJECTS

GLOBAL NEWS OCEANIA

Prelude FLNG to get Rolls-Royce electrically powered thrusters Rolls-Royce’s thrusters are in place to power Shell’s Prelude. The Prelude FLNG will be fitted with three Rolls-Royce electrically powered USL 455 azimuth thrusters at the Samsung Heavy Industries shipyard in Geoje, South Korea. They completed factory acceptance testing (FAT) during November 2014, and left the factory in Rauma at the end of 2014. Prelude is 488 metres long, 74 metres wide and 44 metres deep from the keel to the main deck and will have a displacement of 600,000 tons. Once towed into position 200 kilometres offshore the coast of Western Australia, in the Browse Basin, the production platform is not expected to see land again for over 20 years. It will remain operational around the clock and the thrusters will ensure it can keep its heading against the wind, current and waves to allow safe tanker berthing. This 24/7 operation means any maintenance of the underwater mountable thrusters, which are each rated at 5.2MW will have to be carried out on board over the coming years, which demanded a unique approach to how the thrusters were installed. Rolls-Royce teams in Norway, Finland, Korea and the UK were involved in tailoring the solution specifically for Prelude. To facilitate thruster overhaul or replacement while at sea, each electrically-powered thruster is located at the base of a purpose designed trunk which links to the higher workshop area with its dedicated cranage. The maintenance space has all the functions and tooling found in the Rauma production facility.

Condition monitoring: Thruster condition monitoring system (CMS) is also part of the Rolls-Royce supply; type approved by ABS, Lloyds Register and DNV GL. CMS data can be used to determine the actual condition of the thrusters through life, without the need for internal and visual inspections. Maintenance and overhaul intervals can be extended to match the operating profile of the vessel. The CMS is wirelessly linked to an onshore Rolls-Royce operations centre where the data is analysed to produce the trending and operational information. The data analysed represents a carefully considered balance of thruster information for maximum effectiveness in highlighting any potential operating anomalies, long before they can be seen or heard. Once operational Prelude is expected to produce 3.6 MMT/a of LNG, enough to meet Hong Kong’s annual natural gas demand – as well as 0.4 MMt/a of LPG and 1.3 MMt/a of gas condensate.

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NEWS IN BRIEF ATCO Structures & Logistics contracted to construct modular units ATCO Structures & Logistics has been awarded additional scope to design, manufacture and install 435 modular units under its current agreement with Bechtel on the Chevron operated Wheatstone Project in Western Australia. The additional work is valued at an estimated US$110 million and commenced in March 2015 with an expected completion in late 2015. This additional work is the fourth major contract supporting liquefied natural gas projects in Australia, spanning both the resource-rich East and West coasts.

Subsea 7 S.A. awarded contract for Persephone project Subsea 7 S.A. has been awarded a contract

by Woodside Energy Ltd for the Persephone Work Pack 2 Fabrication, Subsea Installation and Diving Services project, offshore Australia.

The Persephone project consists of two wells tied into a subsea production manifold with production fluids transported to the existing North Rankin Complex. The contract comprises fabrication, transportation, installation and precommissioning activities within the principal scope of work, with additional deconstruction and pipeline suspension work in the Echo Yodel field at the Goodwyn Alpha Platform.

The Company’s diving construction vessel Seven Eagle will perform all of the offshore activities. Project management and engineering will commence immediately with offshore operations scheduled to commence in the fourth quarter of 2015.

Jacobs bags engineering contract from ConocoPhillips The contract is a multi-year engineering services agreement from ConocoPhillips to support the sustaining capital program for the Australia Pacific LNG facility after its completion. The facility consists of two LNG trains, each capable of producing 4.5Mtpa of LNG.

www.projectsogp.com - Summer Edition 2015

GLOBAL PROJECTS

SOUTH AMERICA

NEWS IN BRIEF

Technip awarded major contract to supply high technological flexible pipes for Lula Alto pre-salt field

Cougar Automation developed and commissioned innovative control system for Balltec

Technip has been awarded a contract estimated to be more than US$556 million from Tupi BV, a consortium composed of Petrobras Netherland BV (PNBV, 65%), BG (25%) and Galp (10%), for the ongoing development of the Lula Alto field, located in the Santos Basin presalt area, Brazil.

Cougar Automation, has developed and commissioned an innovative control system for Balltec to use on the first Buoy Supported Riser (BSR) system installed on Brazil’s GuaraLula project. The system is a world’s first in design and will support Petrobras in eventually reaching a projected total production capacity of over 300,000 barrels of oil per day.

The contract covers the supply of around 200 kilometres of flexible pipes and associated equipment, including gas lift, gas and water injection, gas export and production lines. These high technological flexible pipes are designed to meet pre-salt challenges with water depths of up to 2,500 metres and high pressures.

Technip’s operating center in Rio de Janeiro, Brazil, will perform the project management and engineering.

The flexible pipes will be produced at Technip’s manufacturing sites of Vitoria and Açu, Brazil. Delivery is scheduled to start in the second half of 2015.

The Guara-Lula project is the largest engineering, procurement, installation and commissioning SURF contract ever to be awarded in Brazil.

Operated by Petrobras and located in Santos Basin approximately 100 miles off the coast of Rio de Janeiro, the BSR system consists of four submerged buoys each weighing approximately 2,000 tonnes which lie around 300 metres below sea level.

GLOBAL PROJECTS

GLOBAL NEWS

EUROPE

Johan Sverdrup contract for world’s largest heavy-lift vessel Statoil has signed a contract with Allseas for the installation of three platform topsides on the Johan Sverdrup field. The vessel will be installing the topsides for the drilling, processing and living quarter platforms.

Allseas will transfer the topsides to Pioneering Spirit before they are transported to the Johan Sverdrup field.

On the field, Pioneering Spirit will install the topside on the steel jackets. The drilling platform topsides will be installed in 2018, and the processing and living quarter topsides will follow in 2019.

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NEWS IN BRIEF Jotron AS enters into contract with Aibel Jotron AS has entered into a contract with Norwegian Aibel AS. Jotron will supply PAGA system to Norwegian west coast landfall facility Kalstø. Aibel AS will do the total upgrade of Kalstø. This landfall facility consist of several pipelines running from North Sea platforms into Kalstø then continues to the Kårstø gas plant for processing, before ending up in Emden, Germany. Jotron has designed and produced ship internal communication and onshore/offshore PAGA systems for the oil and gas sector since 1979.

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ON THE MOVE

ON THE MOVE

Highlighting new hires, appointments and movement within the industry

Dräger Marine & Offshore appoints new Training Commercial Manager Dräger has welcomed Rachel Gater to the team.

The appointment comes as part of the company’s expansion which has seen it more than double its workforce in the past five years.

Rachel Gater

Rachel has been appointed as Training Commercial Manager working for Dräger Marine & Offshore in Aberdeen, where she is responsible for working with customers across the UK and Europe, specialising in safety solutions for the offshore marine markets. Born and bred in Aberdeen, Rachel, 25, completed three years working for a leading oil and gas company as a survival, marine and medical instructor, where she learned specialist skills in delivering offshore training.

INTECSEA appoints industry veteran Dave Baker as Director of UK operations Dave Baker, has extensive global experience and brings with him over 35 years of industry knowledge and expertise.

Previously with JP Kenny as Managing Director, Baker is well known in the oil and gas Dave Baker industry and has a proven track record in operational leadership, strategy development, customer relationship management and technical assurance.

Wood Group Kenny appoints new CEO Wood Group Kenny has appointed Bob MacDonald as Chief Executive Officer, effective 6 April 2015.

MacDonald moves into the role from his position as WGK Regional Director for the North Sea, with more than 20 years’ experience in the oil and gas industry.

Ace Winches introduces Chief Commercial Officer role

Scott Mitchell appointed new chair of ICoTA European Chapter Scott Mitchell, Global Business Development Manager at Omega Completion Technology, has been appointed as the new chair of The Intervention & Coiled Tubing Association’s European Chapter.

Scott Mitchell has served on the organisation’s committee for two years.

Colin Black

Colin Black joins as the firm sets its sights on further international growth supported by the introduction of new technology. He is responsible for leading and managing the overall commercial strategy and management of the ACE Winch Academy. Black is also currently a member of Oil and Gas UK.

Peder Sortland appointed CEO of Global Maritime Group

Scott Mitchell

With more than two decades of industry experience, he has a detailed knowledge and understanding of all aspects of well services and intervention operations. Prior to joining Omega, he was Sales & Marketing Director at Oilenco and previously worked at Expro Group, Weatherford, Wireline Engineering and Peak Well Systems.

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Bob MacDonald

Peder Sortland, aged 51, comes from the post of CEO at Apply ASA, and knows part of the group well from holding the position as Chair of Global Maritime AS since April 2014.

Before Sortland joined Apply in 2012, he was Chief Executive of Ross Offshore and Subsea Technology Group. Peder Sortland will be the first CEO of Global Maritime Peder Sortland Group.

www.projectsogp.com - Summer Edition 2015

ON THE MOVE Ocean Energy Europe appoints Alstom’s Rob Stevenson as President of the board

Lasse Stokkeland new head of Havyard Ship Technology AS

Rob Stevenson is VicePresident of Alstom’s Ocean Energy Business, having moved in 2013 from his position as Rob Stevenson Vice-President of RollsRoyce Power Ventures and CEO of Tidal Generation Ltd. Stevenson has over 35 years’ international management experience of the power generation sector across a wide variety of fuel mixes and has held senior management positions in both power utilities and large industrial manufacturers including; managing start-up businesses, project development and technology development.

Lasse Stokkeland has started as Executive Vice President for the business area Ship Technology in Havyard Group ASA. Stokkeland was appointed Project Director at Havyard Lasse Stokkeland Ship Technology in the Autumn of 2014, with the intention that he also should take over as head of the business area after a period of time. Stokkeland will be responsible for the shipbuilding activity in Havyard Group.

Havyard Ship Technology consists of the shipyard in Leirvik in Sogn, project work and marketing in Fosnavaag, plus branch offices in Turkey and Poland.

2H Offshore appoints Phil Ward as Director of Aberdeen office

Wood Group PSN appoints Dave Stewart as new CEO

This new role reflects Phil Ward’s experience, knowledge and commitment to 2H, and is a promotion from his current role as Principal Engineer. Ward will work alongside the existing management team to jointly lead the Company’s Phil Ward growing Aberdeen business.

Having worked for 2H Offshore in its Aberdeen office for more than four years, he offers extensive understanding of drilling, completion and intervention riser systems, both for subsea well and fixed platform operations, and in-depth knowledge of wellhead fatigue assessment, mitigation and structural monitoring.

Dave Stewart has been appointed as Chief Executive Officer of Wood Group PSN (WGPSN).

Effective April 2015, Stewart moves into this role from his previous position as UK Managing Director of WGPSN’s UK operations. Stewart has Dave Stewart more than 38 years of oil and gas experience and joined Wood Group 17 years ago. During this time Stewart has been responsible for the establishment of Wood Group’s duty holder business and creating WGPSN’s industrial services capability through the acquisition of Pyeroy Group Limited in 2013.

Lord Browne appointed head of DEA’s supervisory board

Survivex aims for growth with new appointment to management team

After the acquisition by LetterOne, the Hamburg based upstream company RWE Dea has a new owner. Chairman of the DEA Supervisory Board is Lord John Browne, who recently has been appointed Executive Chairman of LetterOne Lord John Browne Energy and who was Chief Executive of the BP plc, the British energy group from 1995 until 2007.

“In DEA, we have acquired a company with long history of technical and managerial excellence, a track record of imaginative thinking, an international outlook, and great potential“, said Lord Browne.

Survivex has made a key managerial appointment.

Following an internal promotion, Chris Bews takes up the position of Business Development Manager. Tasked with day-to-day responsibility for leading the sales team and meeting pre-defined revenue targets, he takes the role at a crucial time in the company’s development.

Bews has extensive experience in energy training having been with Survivex as a member of the business development team since its inception in 2011. Chris Bews will be based at the multimillion pound training facility in Aberdeen but will count international Chris Bews travel in his remit.

www.projectsogp.com - AOG Edition www.projectsogp.com - Summer Edition2014 2015

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FINANCE

FINANCE NEWS Teledyne acquires Bowtech Teledyne Technologies Incorporated has acquired Bowtech Products Limited through a UK based subsidiary. Based in Aberdeen, Scotland, Bowtech designs and manufactures harsh underwater environment vision systems. Terms of the transaction were not disclosed.

“Bowtech fills a product gap in our broad portfolio of marine technologies, adding optical underwater cameras to our wide range of acoustic imaging and sonar solutions,” said Robert Mehrabian, Chairman, President and Chief Executive Officer of Teledyne.

Tetra Technologies announces acquisition of OPTIMA Solutions UK Ltd Tetra Technologies Limited subsidiary has acquired OPTIMA Solutions Holdings Limited for US$62.7 million plus contingent consideration to be paid in the future depending on profitability. OPTIMA is a leading provider of rig cooling services and associated products that suppress heat generated by the highrate flaring of hydrocarbons during offshore well test operations.

Unusual oil price fluctuations may impact oil and gas financial reporting When preparing financial statements for 2014, oil and gas exploration companies should consider five key areas that may impact financial statements, according to a recent article by Hein & Associates LLP. Over the years, the world has become familiar with oil price fluctuations and the impact they have on oil and gas financial reporting. The supply of oil is affected by numerous factors including wars, growing economies, regulations, and new discoveries. In 2014, crude oil prices were cut in half in just a few months. Starting in August, prices began falling and, by year-end, they were at their lowest point in over five years.

According to the Hein & Associates LLP article, there are specific areas for oil and gas companies to consider in their 2014 financial statements: impairment of oil and gas properties for full-cost companies and successful efforts companies; five-year rule on proved undeveloped properties, liquidity concerns and the collectability of joint interest billings and derivatives.

OPTIMA’s expectations for continued growth are underpinned by excellent long-term relationships with key customers, increasing international expansion, and a robust market outlook.

The oil price changes in 2014 have created a number of economic conditions that few people could reliably forecast. As energy producers work hard to adjust their business models to this scenario, it’s easy to overlook the impact that these changes may have on financial statements.

Maven invests £4.25 million in Fathom Systems

BEL Valves invests in new centre

The £4.25 million investment by Maven in the Aberdeenshire business represents the private equity firm’s 15th portfolio company investment in the energy service sector. In the past twelve months, Maven has invested over £15 million in RMEC, ISN Solutions and R&M Engineering and achieved an almost four-fold return on investment following the exit from EFC Group. Under the deal, Maven’s clients own a majority stake in the

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business alongside current Managing Director, Gareth Kerr, who will continue to lead a strong and experienced management team.

The new ‘Neptune’ technology centre development will deliver a long needed centre of excellence for hyperbaric testing in the UK, situated on the North bank of the River Tyne in Newcastle. The facility will be jointly owned by BEL Valves and Newcastle University.

Housing six hyperbaric chambers which simulate water depths down to 4,500 metres, the facility will provide a unique mix of commercially available test facilities and a national centre for training and research for the industry.

www.projectsogp.com - Summer Edition 2015

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CLIENT FEATURE

SPE OFFSHORE EUROPE

SPE OFFSHORE EUROPE INSPIRES THE NEXT GENERATION

The future of the oil and gas industry depends on two key factors to help meet global demand for its products and services: attracting and retaining the right people and developing smarter technologies.

But these are also two of the industry’s main challenges, which this year’s SPE Offshore Europe aims to address with a conference theme of ‘how to inspire the next generation’ – both in terms of people and technology.

This free to attend global biennial event, the world’s largest upstream oil and gas conference and exhibition outside North America, will be held at the Aberdeen Exhibition and Conference Centre from 8-11 September 2015.

Despite the current tough market conditions, oil and gas will remain indispensable to the world for securing heat, light, mobility and prosperity for many decades to come. According to the International Energy Agency, oil and gas will still supply around half of the world’s energy by 2040. Sourcing skilled, innovative and motivated people and developing new technologies are essential for the industry to be successful in meeting this demand.

Over the four days of the conference there will be a series of keynote sessions, technical sessions, topical lunches and breakfast briefings. The keynote programme will focus on the basic challenge of meeting energy demand while balancing concerns over climate change, security of supply and consumer affordability. Topics such as health, environmental risks, the safety and security of upstream assets, and how to compete with other high-tech industries will also be addressed. Speakers will comprise a mix of senior representatives from international operating companies and contractors, as well as government regulators and academia.

Michael Engell-Jensen, Keynote Chairman of SPE Offshore Europe 2015 and Executive Director of the International Association of Oil & Gas Producers, comments: “Our licence to operate ultimately depends on addressing society’s concerns about the industry’s operations and the hydrocarbons on which the world relies. Our activities must be regarded as both acceptable and useful.”

The development of technology to access resources from increasingly challenging locations and reservoirs is also fundamental to the future of the industry and forms another strand of the event’s focus on inspiring the next generation. More than 100 technical papers covering topics such as asset and well integrity, smart

field development, subsea, talent development, process safety, and decommissioning will be presented over the four days.

Technical Chairman and CEO of Expro, Charles Woodburn, adds: “Whilst we continue to push the boundaries of technology and innovation, we must find better ways to attract and encourage the next generation of talent into our industry.

“For the first time we are inviting technical papers based on both people and technical challenges, to address both aspects in parallel. By embedding this approach within the fabric of Offshore Europe 2015, we will deliver a conference that ensures continued progress within our industry.”

The exhibition space will include a diverse range of exploration and production companies from around the world showcasing their technologies, services and expertise. Around 1,500 organisations are expected this year, including at least 277 companies exhibiting for the first time at the show. Exhibitors will represent the complete supply chain of companies including operators, drilling contractors and oilfield service companies, consolidating Aberdeen’s established reputation as a supplier of services and products to global projects. Early feedback from registered visitors indicates that a large proportion of them are engaged on projects all over the world.

Reflective of the global nature of the industry as a whole there will be a large international exhibitor presence with 33 international pavilions booked so far. Large delegations are expected from Malaysia, Nigeria and Korea. UK Trade & Investment commercial officers will also be available to meet with UK companies to discuss the opportunities that exist in each of their respective markets. Countries and regions that are likely to be represented include Brazil, East Africa, Azerbaijan, Kazakhstan, Nigeria, Mexico, Saudi Arabia, and Norway.

A Deep Water Zone will be dedicated to the latest stateof-the-art technologies helping the industry advance into one of the world’s most challenging – yet potentially commercially rewarding – environments. Despite current pressures on operator budgets, a Douglas Westwood report of April 2015 still expects deepwater expenditure to increase by 69%, compared to the preceding fiveyear period, totalling US$210 billion from 2015 to 2019. Occupying an entire hall at this year’s event, and including a pavilion of Brazilian associations and companies, it is expected that the Deep Water Zone will prove one of the show’s main attractions.

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www.projectsogp.com - Summer Edition 2015

EUROPE’S LEADING TECHNICAL E&P EVENT

“

Great to see the worldwide participation from every sector of the Oil and Gas industry including Governments.

MARINE TEAM LEAD, EPC OFFSHORE

HOW TO INSPIRE THE NEXT GENERATION PEOPLE • TECHNOLOGY • BUSINESS MEET FACE-TO-FACE WITH 1,500 EXHIBITORS ACCESS 1,000’S OF NEW TECHNOLOGIES ACROSS THE E&P VALUE CHAIN DEVELOP GLOBAL BUSINESS AT 34 INTERNATIONAL PAVILIONS STAY AHEAD WITH 100+ FREE TECHNICAL PRESENTATIONS GAIN VALUABLE INSIGHT IN 12 KEYNOTE SESSIONS

8-11 SEPT 2015 ABERDEEN, UK

SPE Offshore Europe CONFERENCE & EXHIBITION Photo Credit: Kongsberg Oil & Gas

Organised by

REGISTER NOW AT OFFSHORE-EUROPE.CO.UK/OGP www.projectsogp.com - AOG Edition 2014

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CLIENT FEATURE

CYGNUS INSTRUMENTS

The leading manufacturer of Multiple-Echo digital ultrasonic thickness gauges used for measuring remaining metal thickness without the need to remove protective coatings, unveils its latest range of surface instruments

T

he new range of thickness gauges is launched following extensive customer engagement, working within industry standards and following careful/ exhaustive design reviews.

Versatile Measuring Modes as Standard with Latest PLUS Models Cygnus has now incorporated two additional measuring modes in to its latest range of thickness gauges. SingleEcho and Echo-Echo modes, both using twin crystal probes, can assist in obtaining measurements in areas of extreme corrosion or back wall pitting: • Single-Echo measuring mode - ideal for measuring uncoated surfaces with heavy front face and/or back-wall corrosion and attenuative materials such as cast metals, plastics and composites.

• Echo-Echo measuring mode - used for measuring painted metals but with heavy back wall pitting for improved back wall detection.

Additional New Features The range consists of 5 new models offering a comprehensive array of new features including: A-scan and B-scan displays; hands free units for climbing or rope access; simple sequential data logging or comprehensive data logging with features including Grid Format, offering 16 directional formats; vibrate alert to warn the operator when the measurement is out of tolerance; Bluetooth data transfer capability; and MSI™ (Measurement Stability Indicator).

MSI™ is both clever and simple. Used in Single-Echo and Echo-Echo modes, this trademarked technique samples returning echoes to ensure they are all identical.

If the returning echoes are identical the display changes colour or format which indicates the reading is stable and reliable.

Sequential and Comprehensive Data Logging There are two data logging models in the range, one offering simple sequential measurements to be recorded while the other offers comprehensive data logging where the user can add defined text comments, create

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templates and add radial measurements around a last logged measurement point. Both models record up to 5,000 measurement points, including A-scans.

Data logging models are supplied with the Cygnus CygLink Software. CygLink is a Windows® application for PC’s running Windows 7 and above and is used for uploading data from a data logging gauge. The information can then be analysed, stored, reports can then be created and the data can be exported as a .pdf or .csv file.

Extremely Rugged Enclosure Designed for use in the most severe operating conditions, the purpose designed enclosure is both extremely tough and strong while small and light weight.

Manufactured using a twin shot injection moulded enclosure which has a soft but durable TPE outer skin, making them both comfortable and extremely durable, while the inner shell is strong, keeping the electronics totally sealed from the outside environments.

This new instrument enclosure has allowed Cygnus to achieve the tough American Military Standard MIL SPEC 810G for environmental protection. These new gauges will survive the harshest operating conditions including drop, vibration, dust and water ingress (IP67) together with low and high temperature cycling.

New Cygnus Probes In addition to a new range of Cygnus instruments, Cygnus has a new range of twin crystal probes which allow thickness measurements to be obtained from a wider range of applications, including attenuative materials such as FRP, plastics and composites. Cygnus also offers a High Surface Temperature Probe.

While the new range from Cygnus offers many new features, the simple to use menu structure means that these new gauges are quick to learn and simple to use.

Cygnus has concentrated on providing the user with key measurement functions for a wide range of thickness gauging applications, in a tough instrument designed and tested for the most severe operating conditions.

www.cygnus-instruments.com

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