Oil and Gas Vision Magazine Version 1

PUBLICATION

Offshore Europe Edition

Precision data capture for engineering and asset lifecycle applications.

Maximise your Production Efficiency EPA air intake filtration for gas turbines offshore The Problem Gas turbines offshore consume vast amounts of atmospheric air heavily contaminated with both natural and industrial pollutants. Sea spray, sea salt aerosol, fogs and mist combine with burnt and unburnt hydrocarbons, as well as particles from mud burn, grit blast and drilling activities. Exposure to these conditions can seriously reduce the performance and operating efficiency of a precision gas turbine.

The Solution AAF’s EPA gas turbine filters utilise a water and oil repellent media specifically designed to be used in offshore air filtration applications. The filters eliminate compressor

8,000 hours without AAF (H)EPA Filtration.

Today, AAF is recognised as the global leader in highend offshore EPA air inlet filtration technology. Our stateof-the-art products and systems have been developed to meet the arduous challenges faced offshore. As one leading Global Offshore Operator commented, “AAF E12 EPA technology was undoubtedly the correct air inlet filtration choice for our critical gas turbines. The unmatched removal of hydrocarbons, salt and seawater from the combustion airstream eliminated compressor fouling and dramatically reduced the potential for hot end corrosion related breakdowns.”

16,000 hours with AAF (H)EPA Filtration.

1 | Eliminate compressor fouling

2 | Eliminate monthly offline water washing

3 | Increase fuel efficiency

4 | Extend lifetime of engine components

5 | Cooling passages clear of blockages

6 | Constant power output

172077 Double Page Advert EPA Air Intake Filtration v4.indd 1

2

fouling and improve airflow characteristics. The sturdy construction with protection screens on the air-entering and air-leaving side of the filter ensures fine filtration in even the harshest environments.

18/08/2017 09:56

Visit us at SPE Offshore Europe Stand 5B20

Performance Enhancement Offshore AAF International is the world’s leading gas turbine solutions provider. Offshore oil and gas installations around the world rely on AAF to deliver enhanced production efficiency, cleaner air, greater fuel efficiency and reduced maintenance costs. AAF’s portfolio includes combustion air intake systems, hot gas exhaust systems, acoustic equipment and aftermarket gas turbine filters, repairs, refurbishments and upgrades.

Tel

| +44 (0)1670 713 477

Email

| gasturbinesolutions@aafgb.com

Web

| www.aafintl.com 3

CONTENTS 02 AAF GLOBAL Maximize your Production Efficiency Performance Enhancement Offshore

05 RESTRATA Aberdeen Relocation Interview with Craig Menzies

18 TEXO DRONE Advanced UAV technologies for the global offshore sector

06 WOOD GROUP Talent and technology: looking to the future

08 WELL-SAFE SOLUTIONS Oil & Gas Vision Q&A

21 ASA GAMBLE 22 ICHTHYS LNG PROJECT 24 BRITISH CONSULATE - HOUSTON Shareen Yawanarajah

26 DIRECTORS CORNER Upstream Energy Business Sustainability - The New Norm

www.oilandgasvision.com

10 BOB KEILLER Entrepreneur reveals secrets to job searching

11 ROBIN KIRKPATRICK Upstream Energy Business Sustainability - The New Norm

12 OGTC Technology Centre takes next steps to transform the industry

14 PROJECT DATA WORLD MAP 17 SCOTSBRIDGE Director Mark Skinner reflects on the last three years within the Southeast Asian market

4

Safety and Security Consultancy firm Restrata recently announced that as of mid-October 2017, they will relocate their Global Incident Management Centre (IMC) and office functions to new premises at Provender House, Waterloo Quay Aberdeen.

With work underway to complete the new site, we interviewed Craig Menzies, UK Manager to find out more details.

Why was the decision taken to move the office and what is the main business benefit from this change of location?

The decision to move was very carefully considered given our existing facility has served us and our clients well over a number of years. We continually strive to improve the services we offer to clients, and we were keen to incorporate ideas built on our own experience along with improvements in available technologies.

When we also factored in our staff growth over the last 12-18 months and an increase in subscribers to the facility, it became a fairly easy decision to relocate to a purposebuilt IMC which will allow us to refine and improve our core business.

Finally, for us, the move reflects our long-term commitment to investment in support of the oil and gas sector in Aberdeen and the North Sea, along with other industries who may require specialist incident management support, training or a 24-hour Control Room function.

Why do you believe it is so important for businesses in the region to be thinking about emergency response and incident management?

Of course, there are many statutory requirements covering the provision of emergency response and Incident/Crisis Management, but we believe we offer so much more than a basic adherence to a legal framework.

To us, an effective response to any incident is based on sound plans which have been exercised and tested. The value to an organisation of robust incident management is huge, both in terms of looking after its staff and contractors, but also in terms of business recovery and continuity.

What improvements have been made in the new facility and how will this benefit your existing and future clients?

Incident management is a huge responsibility and it cannot be carried out effectively without having the required infrastructure in place. The new IMC has been specifically designed to provide efficient and effective emergency response and has allowed us to incorporate features gleaned from our many years of experience in the region, to ensure we are well placed to assist our clients.

The new facility covers 3800 sq. ft. which is slightly larger than the existing site. The Incident Management Room itself will be sound -proofed and will have the added benefit of an Observation Room which will support and improve the delivery of exercising and major simulated events.

We have also taken the opportunity to incorporate a new phone system which will allow us to record all calls, thereby allowing for a more auditable service.

Another significant and exciting improvement is the addition of cameras and microphones in the Incident Management Room (IMR). When used in conjunction with our web-based Command and Control software, it will allow services to be provided for client duty managers operating remotely, thus offering a truly global Incident Management facility.

What’s next for Restrata?

As an organization, Restrata covers the full spectrum of safety and security services, servicing clients around the globe from offices not only in Aberdeen, but also in London, Basra, Erbil, Kuala Lumpar and our headquarters in Dubai.

The world around us is changing at an unprecedented pace. New technologies are developed and become available seemingly every day, which means we are constantly evaluating and assessing the impact of technology and connectivity on threats to people, assets and infrastructure. This informs the services that we are offering and the security and risk management strategies we deliver. This now includes the cyber and virtual threat as well as more traditional physical risks.

In addition, the number of terrorist incidents around the globe is rising, and the style of attack is always evolving, taking new forms and targeting a broader range of locations. As an organisation that prepares businesses for emergency situations and provides incident management services, we have to stay abreast of these changes and developments to ensure that we continue to build resilience for our clients. Our IMC offers clients across the globe the opportunity to track, monitor, respond and manage any incident be that to technology, person, asset or infrastructure.

www.restrata.com

5

Talent and technology: looking to the future

As part of our strategy, our service offering across industries has diversified, allowing us to share expertise and technology across sectors including digital, clean energy, integrity and automation & control.

Bob MacDonald CEO, Specialist Technical Solutions Wood Group The word ingenuity comes from the Latin ingenuitas meaning the quality of being original, competent and inventive which is something that has always been at the heart of Wood Group, however since the global drop in the price of oil, I have seen even more of this innovative thinking from our people leading to creative ways of working and solving our customers challenges.

Current market conditions challenge us to think of valuedriven solutions and new delivery models. With change comes opportunity and during the past three years, I have seen people demonstrate innovative approaches to overcome significant industry challenges across the world. At Wood Group, it is the expertise of our people combined with our commitment to broadening our offering that drives new technology and applications forward.

Over the past few years we have seen a drop in investment levels in upstream oil and gas, and it was essential within Wood Group that we continued our drive for new technologies and working practises to differentiate us in the market and help sustain (and hopefully grow) investment through our solution-based approach to the challenges faced by our global customer base.

6

Our customers look for clever solutions to the complex challenges faced when trying to maximise production. Wood Group’s digital solutions team has brought new software to the market over the past 18 months and our eXpert technology has been successfully deployed on behalf of major operators on work sites in the UK, US, Canada and Middle East. This technology connects specialists based onshore directly with remote worksites, via real-time audio and video display, to review issues and collaborate on a resolution.

The solution gives access to Wood Group expertise around the world and not only reduces time for problem solving and resulting implementation, but saves on costs associated with mobilisation and shutdown, at offshore and remote locations.

In our clean energy business, we have used data analytics to identify recurring issues when maintaining and increasing energy production from wind turbine generators and we are now using data analytic algorithms along with our domain knowledge to identify and resolve issues in the oil and gas sector. Also in clean energy, we have used our experience with AUVs to allow us to optimise forestry restructuring, surveys and aerodynamic improvements, to enhance production, providing increased asset return on investment – using the experience gained will allow us to apply our AUV experience to inspect both onshore and offshore oil gas assets. Similarly, our world leading experience in subsea has been applied in supporting floating offshore wind developments.

Although recent market conditions have proved difficult for those developing their careers in oil and gas, as we move forward and see green shoots it is essential that we recruit, train and retain the right people in the industry. The North Sea in particular has a workforce with decades of experience and a crop of young apprentices and graduates keen to apply new thinking to long-term challenges to ensure the future sustainability of the region.

Stand-up for Safety Workforce Feedback Since we introduced Stand-up for Safety in January 2017, I am delighted to report a large increase in ‘leadership site visits’ across our Wood Group businesses. Staying connected with the workforce is pivotal for us as leaders in building a culture of care.

We made a commitment to feedback to the workforce on issues raised during our recent visits, which has hopefully proved equally beneficial to the workforce as it has our leadership team.

Safety Performance Performance in the first half of this year saw 20% fewer injured personnel compared to the same period in 2016. We saw reductions in all classified injuries with the exception of a 12% increase in medical treatment cases.

The 12 month rolling TRCF did however remain 5% higher comparing the end of June each year.

High Potential Incidents although slightly fewer averaged one every nine days

June June 2017 2017

June June 2016 2016

Total Injured Total Injured People People

Lost Lost Work Cases Work Cases

264 264 9 9 Total Injured Total Injured People People

Lost Lost Work Cases Work Cases

332 332

16 16

Restricted Restricted Work Cases Work Cases

Medical Medical Treatment Cases Treatment Cases

11 11

28 28

First Aid First Aid Cases Cases

216 216

Restricted Restricted Work Cases Work Cases

Medical Medical Treatment Cases Treatment Cases

16 16

25 25

First Aid First Aid Cases Cases

275 275

High Potential Total Recordable High Potential Total Recordable Incidents Case Frequency Incidents Case Frequency

1.43 1.43

21 21

Exposure Hours Exposure Hours 37,532,211 37,532,211

High Potential Total Recordable High Potential Total Recordable Incidents Case Frequency Incidents Case Frequency

1.36 1.36

29 29

Exposure Hours Exposure Hours 40,785,526 40,785,526

Just & Fair Culture We made considerable effort in the first half of this year to ensure the Just and Fair Culture process was embedded consistently across our global business The Just and Fair Culture process is a tool to assist managers and supervisors to identify, recognise and encourage positive HSSEA behaviours and also to provide support where behaviours fall below expectations.

Our commitment now and going forward will ensure we collectively:

‘Promote a learning culture’

‘Recognise exceptional team & individual performance’

‘Create a zero tolerance approach to reckless behaviour’

‘Always apply the Just & Fair Culture process to HSSEA incidents’

Leadership Site Visits Feedback on the engagement with the workforce from the leadership site visits have resulted positive communication, with some examples and situations where we have already made a difference by listening and acting upon your concerns or improvements raised These are just some of the examples where - ‘you said’ – ‘we did’.

‘We did’

‘You said’ 

Local lighting was a concern



Workforce agreed and cap lights issued



Requested a Wood Group jobs board



Wood Group jobs board being erected



Not enough ‘First Aiders’



Additional training agreed and actioned



Unsafe loads being transported



Site-wide communications issued to stop transporting unsafe loads



Difficulty in getting good quality PPE



Good quality PPE now available



Culture is a concern



Safety culture workshops held



Rope access techs should carry emergency H2S



H2S emergency escape masks being made available

escape masks

7

Oil & Gas Vision Q&A Phil Milton, CEO of Well-Safe Solutions

OFFSHORE EUROPE 2017 - STAND NUMBER - 6D22

What do you see as the opportunities in decommissioning and are there specific fields or locations within the North Sea that are of particular interest to Well-Safe at this time?

The market dynamics in oil and gas have changed significantly. Before the collapse in oil price, operators were focused on maximising production, costs were very high and assets scarce. With no real regulatory imperative, decommissioning was pushed back. However due to the maturity of the basin, operators and regulators now have an increased focus on the well abandonment challenge. They need to prioritise decommissioning activity and, with an increasing stock of “shut-in” wells, more incentives, low asset utilisation and therefore lower rates, the economics for P&A have become more compelling. With expenditure on well abandonment in the UK Continental Shelf forecast to double to £1.1billion in 2017, and around 5,000 wells to be decommissioned in the North Sea, there are huge opportunities out there for the UK supply chain to assist the development and delivery of effective solutions for decommissioning.

Looking ahead our aim is to export our operating model and service offerings to other parts of the world, in a bid to support decommissioning work globally and in deep water locations.

How prepared is the UK supply chain to take advantage of the opportunities?

The UK supply chain will play a pivotal role in solving some of the complex challenges associated with decommissioning. It will require companies to shift their focus and adapt their offerings, while working handin-hand with operators and government. A range of activities will rely on innovation in terms of technical and management approaches, but the scale and nature of the decommissioning market means that we must find the solutions and address the challenges now. If we want to become the market leaders in decommissioning and export our knowledge, skills and services to other parts of the world, we can’t delay any longer.

Looking ahead our aim is to export our operating model and service offerings to other parts of the world, in a bid to support decommissioning work globally and in deep water locations.

8

How does Well-Safe plan to add value and reduce costs within the sector?

Decommissioning is one of the biggest technical and operational challenges facing the UKCS. At Well-Safe, our aim is to work closely with operators and regulators to identify the well-stock out there, acquire the assets and tools required, provide funding and manage the projects from start to finish. In the current market, some operators may find that financial support can act as an enabler to embark on huge decommissioning projects. Well-Safe will also be able assist in this area, while deliver cost savings of up to 30%. We will offer long-term service and support contracts at a fixed day rate and identify, negotiate and manage individual contracts with suppliers for outsourced services, such as downhole support and associated equipment.

There are a variety of different sizes and types of assets in the North Sea, and each comes with its own set of engineering challenges. There are many considerations which must be taken into account to ensure each well is correctly abandoned, but this must also be done as cost effectively as possible as there is no financial upside to decommissioning. Scottish-based firms are already securing a share of the UK’s decommissioning work, however if we want to remain at the forefront of this global opportunity, we must continue to innovate and find smarter, more cost effective ways of working. This can be achieved through our unique operating model, however it will require cooperation and knowledge sharing with an open working relationship between operators and the supply chain.

Are there any specific areas Well-Safe will specialise - what expertise and technologies can you deliver?

Well-Safe will work closely with operators and industry bodies while navigating the complex regulatory process, driving change, transparency and ensuring tax efficiency. We’ve already attracted some of the most experienced people in the decommissioning space with the relevant knowledge of subsea wells to create a centre of excellence, capturing, retaining and sharing expertise across all P&A projects. The next step will be to acquire and customise marine assets with equipment that will be able to take on any P&A operation.

We will provide the complete package as a “Tier 1” contractor - Front End Well Engineering and detailed planning, support with permitting and regulatory compliance and a complete well P&A service offering.

It is envisaged that over the next three years, Well-Safe will create over 400 jobs of which, 120 will be based onshore, with the remainder being split across our fleet of marine offshore assets.

What are your plans moving forward?

Over the next two years we will be acquiring marine assets, and associated equipment that will be installed to provide a low-cost solution to our customers. As owners of these assets, we can guarantee that they will not be diverted to other drilling operations but used and mobilised exclusively for P&A activity. With this certainty over availability, we will work to secure long-term commitments from operators and have full control over scheduling of long-term well P&A campaigns. This will allow us to create efficiencies, while capturing and retaining lessons learned so we can drive further improvements in delivery and cost reductions.

We will take care of the planning, logistics and execution. By combining competitive day rates with longterm service and support contracts, we will be able to offer higher efficiencies and utilisation at a lower cost.

With a strong management team and solid investor backing, we truly believe we have what it takes to solve one of the UK’s biggest industrial challenges, while reducing the tax burden that the UK treasury currently has to make a positive impact on the UK economy.

9

Bob Keiller ENTREPRENEUR REVEALS SECRETS TO JOB SEARCHING With the recent downturn in the oil and gas industry, many senior managers are finding themselves in a transitional period. With the abundance of good talent seeking employment opportunities, we speak to senior industry advisor Bob Keiller on how to prepare for your next position.

Prominent Scottish Leader A prominent figure in the oil and gas industry over the past 26 years, Bob was appointed Chairman of Scottish Enterprise in January 2016. In his illustrious career, Bob has held many prestigious positions, notably Chairman of the Entrepreneurial Exchange, and CEO of Wood Group. Among his achievements, Bob was voted ‘Scottish Male Business Leader of the Year 2011’ at the Scottish Leadership awards, was awarded Entrepreneur of the Year in 2008 and 2006, and named Scottish Businessman of the Year in 2007.

Bob is a chartered engineer and holds a Master of Engineering Degree. He resides in Aberdeen with his wife and three children.

Professional Mentorship

Another way to be prepared is to consider the elements of the selection process. These often include; interviews, references, personality profiles, psychometric testing, role playing, Q&A and presentations.

Taking one of those in isolation – such as references, think about how you will get your referee to give a glowing review. How will you make sure they know about your achievements and qualities? Do they know what you’ve been doing since you last worked with them? How will you ensure they know all this?

Insider Tips Among his top tips, Bobs recommends that candidates should consider the following areas: 1. Network better – are you mixing in the right circles and attending enough industry events to get your name out there?

Today, Bob is both a public speaker and mentor to ambitious professionals and social enterprises, helping to develop the next generation of leaders.

A regular speaker at business events, Bob recently attended the AGCC’s Executive Springboard program, offering guidance to individuals displaced in the industry. “I always ask ‘are you ready to win a job selection process’ and the answer from candidates is invariably ‘yes’. But when I dig deeper and ask more provoking questions, it seems that many of them are far from ready, and could do a lot more to improve their chances of success.” said Bob.

2. Build your own brand – are you on Linkedin, is your profile up to date? Do you have a website or portfolio that shows off your skills?

With years of experience in hiring hundreds of candidates, Bob has a keen eye for detail and understands what makes a candidate stand out – and it’s usually the person who is most prepared.

Bob’s final piece of advice to prospective employees summarises his no-nonsense approach to job hunting: “When you’re no longer the Finance Director or the Operations Manager, and you’re looking for a new job, your job is to become the best prepared candidate.”

He advises: “It’s important to be laser-like focussed on a specific company that you’re interested in

10

working for – research everything you can. Also, identify how you can add real value to them, and even offer to work an unpaid trial period to prove your worth”

3. Social media – think of it as digital networking.

It’s also a good way to express your view on industry matters, just keep a professional tone.

4. Be resilient – job searching can be an exhausting and sometimes discouraging. I teach resilience-building techniques to help candidates stay motivated during their journey.

Robin Kirkpatrick - Upstream Energy Business Sustainability – The New Norm Plummeting oil and gas prices in recent years undoubtedly forced our industry to think and even rethink about just what constitutes sustainability.

I’m sure many will agree that we’ve seen all sorts of unnecessary levels of cost and complexity built into what we colloquially call ‘our businesses’.

Operators have slashed costs and investment to bring uplift costs into line with contemporary commodity prices.

That process has undeniably been painful for all concerned but has it had the desire effect?

That needs to be addressed. To be clear, I’m not talking about cost cutting for the sake of it and I’m certainly not talking about ‘cutting corners’. This is about an objective review encompassing methods and processes as a means of achieving goals. We can be leaner.

Many companies and people across industry, operator and contractor alike held out hope of a recovery in 2017.

What we can see globally during this second half of 2017 is an increase in activity. Anecdotal evidence suggests that transactional volumes are on the increase which in turn results in improved cash flow but I doubt that it will be having much of an impact on profitability, at least in the short-term.

Speaking to people around the industry it is clear that many of the ‘older’ hands have elected to drop out and it is becoming harder to attract new entrants to the industry be they graduate or otherwise.

That is a worrying trend. When we start to see meaningful levels of business being transacted it will be a challenge to all those involved to cover the skills and competencies required at all levels and in the numbers required. Smart management teams will be looking at this issue now.

Operators and contractors alike have really been put through the proverbial mill and in many cases are emerging with leaner, more ‘fit for purpose’ organisations as a result.

Fitness for purpose should be our mantra. Over the years

People naturally shy away from looking at such things as regulatory requirements but it is our responsibility to look after our businesses holistically, we should not cherry pick the easy bits and avoid the ‘hard’ bits. We need to see more work being done to curb the almost incessant imposition of more and more regulation.

Having done that we then need to look at present levels and apply the ‘fitness for purpose’ gauge.

Someone asked me recently what I thought was a realistic oil price for budgetary purposes?

Each business owner and manager will have their own views as they relate to their own company activity but if I said somewhere in the $45 to $50 dollar range would that be wide of the mark? I suspect not.

So yes, the ‘new norm’ is based on relatively low commodity prices for the foreseeable future and looking at it in this way it is amazing just what opportunities start to show themselves. Adaptability and adaptability lead to opportunities for success.

BOP Controls Anti-Collision Systems Well Control Equipment Brake Control Systems ATEX Electrical Equipment Instrumentation Marine Monitoring Systems Solar Panel Units www.rcpat.com sales@rcpat.com 01224 798312

EC-OG’s innovative Subsea Power Hub

Technology Centre takes next steps to transform the industry The Oil & Technology Centre is continuing apace in its efforts to develop and deploy technologies that transform the oil and gas industry, helping unlock the full potential of the North Sea and anchor the supply chain in North East Scotland.

We now have 19 member organisations, including major operators – Total, Chevron and Nexen – alongside information technology firms Resulting and Kippitech, subsea integrity specialist, 1CSI, and subsea technology companies, Exnics and EC-OG.

We have approved investment of £2.4 million in new projects up until July 2017, with that figure expected to significantly increase by year end.

Our Technology Accelerator is gearing up to help smaller technology developers take their solution to the market by offering expert mentoring, access to facilities and skills, field testing opportunities and funding with no equity or pay back required. Our goal is to invest in 100 technology companies in the next decade.

We’re working with Exnics to develop a unique subsea flow meter which can be retrofitted to measure oil and gas flowrates from subsea wells.

Improving measurement was identified as a key focus area by the industry’s Technology Leadership Board.

We’re working with EC-OG in preparation for a field trial for the company’s subsea power hub – a subsea energy generation and storage device which harnesses ocean currents to provide the power required to operate well controls and other critical subsea equipment.

Testing new technology in a live operational environment is an essential part of the innovation journey and we’re delighted to have been invited

by Total and Chevron to join them on eight individual offshore field trials to be completed by October 2017.

12

The construction of our unique Innovation Hub, located in the lower level of our Queens Road centre, is well underway. The Hub will provide an exciting, engaging and collaborative physical space combining state of the art presentation and collaboration technologies with internal and external resources. A key aim is to address known problems and explore oil and gas relevant applications of technology adopted in other industries, such as robotics.

Our three ‘Calls for Ideas’ have generated more than 100 new innovative technology ideas and concepts that could transform well plug and abandonment, use robotics to enhance and reduce the cost of pressure vessel and tank inspection or help unlock the 225 marginal discoveries in small pools across the UKCS.

Get flow visibility upstream of commingling

Colette Cohen, Chief Executive of the Oil & Gas Technology Centre said: “Since our launch in February 2017, we’ve screened more than 200 technologies and have an excellent pipeline of opportunities, with operating companies now facilitating field trials on the UKCS. “We’re proud to welcome new members to the Oil & Gas Technology Centre and look forward to helping innovative companies take their concepts from early stage development through to deployment in the oil field.”

Launched in February 2017 with £180 million funding from the UK and Scottish Governments, the Oil & Gas Technology Centre is a not-for-profit, research and knowledge company, which aims to unlock the full potential of the UK North Sea, anchor the supply chain in North-East Scotland, and make sure the region continues to be a great place to live, work and invest for generations to come.

The Oil & Gas Technology Centre aims to be the go-to technology centre for the oil and gas industry in the UK and internationally.

13

PROJECT DATA WORLD MAP

14

15

PROJECT DATA WORLD MAP

16

Director Mark Skinner reflects on the last three years within the Southeast Asian market I have spent a great deal of time developing business within the Southeast Asian market for the last three years, spending much of that time located in Singapore, Malaysia & Thailand. Much of my activities were focused on energy, civil works and construction industries. Globally all of these sectors have been hit in some way by the oil & gas price tumble. The ASEAN (Association of Southeast Asian Nations) market is no different and has suffered at the expense of things it or we cannot control. But it is the scale and diversity of this respected power house of activity that allows it to shake away these issues and carry on.

Having been fortunate to visit many of the shipyards, fabrication facilities and construction sites in the ASEAN region, I have been amazed and still am at the scale, the volume and the number of staff employed that make things happen to complete projects and work.

Many of my Southeast Asian associates and colleagues who are well accustomed to such productivity often tell me that ‘it’s usually much busier than this’ and bemused by my expression of such a ‘wow factor’.

Even when many sectors in this region have been affected by downturns of many types it still has the ability to continue and grow and this can only be put down to a couple of things.

1. Volume of activity, regarding the number of projects and the scale of those projects 2. Work ethic and the need for maximum efficiencies Any company with a suitable product or service that is either offering innovation, cost saving in cash or time, or possibly considering manufacturing in Southeast Asia to assist its global footprint cannot discount the sheer scale of open opportunities to it. If realistic goals are set and the offer is tailored to the individual countries within this growing market, a company can expect success.

SME’s (small and medium-sized enterprises) have many markets to consider internationally and the resource is sometimes limited to cover each relevant region. The ASEAN market is a lost opportunity for many, it has little in the way of real barriers to business’s. Those that see the benefit of a sustainable and growing market already have our gaze fixed on the ASEAN possibilities.

If the ASEAN market is really on your radar do your homework and see what countries you could service effectively.

When I first started looking at this market only Singapore was the obvious choice to work within, in actual fact only when I came to the market and immersed myself in it for a few months my mindset changed and we added Malaysia, Thailand, Vietnam and now Indonesia to our offering!

Mark Skinner, Managing Director

17

Advanced UAV technologies for the global offshore sector 18

UAV Technology Develops to Meet Oil and Gas Industry Challenges Across the oil and gas industry, unmanned aerial vehicle (UAV) technology has transformed airborne survey and inspection services on- and offshore over recent years. The change has been dramatic and far-reaching, covering everything from maintenance regimes to decommission work. Now, more than ever, UAV technology is poised to add even greater commercial value and engineering accuracy to the industry.

The benefits of UAV technology have been proven across the industry. Up time of assets is maximised thanks to the use of UAVs, which avoid the need for rope access inspections with their much longer duration and attendant costly shutdowns – to say nothing of the risks of working at height.

A Proven Technology – Providing Mission-Critical Data UAV inspections gather mission critical data for asset integrity management in oil and gas installations.

The accessibility and capability of this data has been a real “game changer” for the industry, delivering a much more time and cost efficient way of ensuring asset integrity, and doing this on a regular basis that allows for detailed monitoring and planning whilst also removing risk to personnel. However, as in any marketplace, change and the requirement for innovation and improvement are constant.

Against a backdrop of low oil prices and huge market pressures, UAV operators offer real engineering and commercial advantage to asset owners. It is a technology that is for example invaluable in quantifying workscopes for fabric maintenance through close visual inspection. CVI can include anything from the platform’s flare tip to the flare boom, the underdeck and splash zone. These inspections generate thousands of images and high-definition video that provide data to inform engineering decisions in a fraction of the time (days rather than months) that it would take a large rope access team to cover an area such as a full underdeck. In practical terms too, the UAV methodology saves bed space as teams can mobilise and complete projects much more quickly.

Avoiding Unnecessary Asset Shutdowns – Assisting Planned Shutdowns Live asset UAV inspections enable operators to avoid unplanned shutdowns. Accurate assessments mean that operators get data on the true condition of a particular asset that is in question, rather than shutting the asset down at the first sign of an issue. Even when a problem does occur at an installation, UAV technology means that a shutdown may not always be required. Emergency inspections can be carried out to gain engineering certainty, often avoiding the need for an unplanned shutdown as a result of the images and analysis provided.

Planned shutdowns can be made more efficient by using UAV inspection to precisely identify the condition and specification of parts that may need to be replaced. It is often the case that parts and components simply cannot be bought off the shelf and have to be specially manufactured.

Supporting and Extending Production This truly is technology that not only supports on-going production, but extends it wherever possible – based on real data and real assessments of asset integrity. Many operators are now inspecting their assets on an annual basis using UAVs as part of a planned inspection regime while others prefer to monitor on a monthly basis to track deterioration or known problems. This can extend time between shutdowns by allowing informed decision-making based on an accurate record of asset condition.

Technology with Many Applications Applications of the technology are wide-ranging and include thermal gas detection, optical gas imaging and hyperspectral, which detects a multitude of different light spectrums that allow for materials such as asbestos to be identified as being present in a structure. Thermographic survey applications provide benefits that include more accurate coupled structural thermal analysis, optical gas leak detection (OGI), non-visual water ingress detection and hot spot housing identification as well as internal UAV inspection.

“Future Proofing” UAV Inspections UAV companies need to be at the forefront of changes and challenges facing the industry – not bringing up the rear guard. It is all about looking ahead to anticipate developments and “future proof” the technology. This is exactly what Texo Drone Survey and Inspection (UKCS) have been doing.

Against this backdrop Texo have been closely monitoring the UAV marketplace and future-proofing their technology through extensive R&D. UAV service companies need to do this if they are to “stay ahead of the curve”. Speaking to clients way in advance of them encountering scenarios is all part of this, together with developing bespoke platforms to meet highly specific needs. It is no longer, if it ever was, a case of adapting vehicles and payloads to specific uses, but of engineering the solution from the “bottom up”. The considerable investment in UAV technology by Texo Drone 19

Survey and Inspection (UKCS) has resulted in the creation of a world class UAV fleet that can accommodate the demands of the most challenging of survey and inspection scenarios.

Having identified opportunities to deploy UAVs in revolutionary new ways, Texo has pushed the envelope of design and system integration through bespoke development of class-leading platforms that integrate cutting edge UAV and survey technologies. This type of investment and innovation brings previously unavailable capabilities such as highly accurate survey grade LiDAR to the commercial UAV market. The company is also developing other world-first UAV deployed technology including UT Thickness Testing, UAV Remote Supply Drop and UAV Integrated ACFM technology.

Texo Drone Survey and Inspection (UKCS) has been doing exactly this – investing in technology that allows for heavier payloads and enabling its fleet of UAVs to operate under more onerous weather conditions. The UAVs currently in operation can deal with wind speeds of up to 18 metres per second (40.2 mph), with the flexibility to carry a variety of custom payloads. Texo operates under expanded permits, including EVLOS/BVLOS and a UAV increased weight class (outside the standard 0 - 7kg) for UAV platforms weighing 7 - 20 kg.

Technological Investment to Drive Greater Accuracy However, it is also about more than this: investment in technology is driving even greater accuracy. Nowhere is this more apparent than in LiDAR survey work. Such surveys are typically ten times quicker than contact-based surveys and come with the added benefit of high-definition images of the site or installation. Other advantages over traditional surveying methods include dramatic cost savings, step improvement in safety, faster turnaround and improved site and asset information to aid decision-making.

UAV surveys can cover vast areas in a single day and acquire thousands of high-definition geo-referenced aerial photographs. The principle of LiDAR is to measure distances via light in a pulsed laser form and record the time it takes from its generation and subsequent return to calculate distances. Accuracy of data in UAV surveys is generally to around 40 mm; investment and development of UAV vehicles and associated survey software has led to Texo achieving accuracy of up to 1-3 mm in its survey grade LiDAR, which is delivered via its custom built UAV platform that measures over 1,000,000 points per second. This gives Texo Drone Survey and Inspection (UKCS) the most accurate UAV deployed survey grade LiDAR in the sector. This degree of precision means that surveys of assets can achieve pinpoint accuracy which can act as a highly reliable baseline for future surveys.

From Inspection and Maintenance to Decommissioning Removing uncertainty and replacing it with certainty based on hard data is at the heart of UAV technology and the benefits it brings. This is as valid in decom work as it is in inspection and maintenance regimes. Platforms due for decommissioning were never built with that purpose in mind; it is a case of working backwards from first principles. This is what is happening of course at subsea level with planning work on decommissioning gravity based structures and subsea storage cells.

The same process applies to top structures themselves. UAV inspection and survey here are vital to planning and to driving down cost while improving safety. Gathering data from surveys and inspections is at the heart of informing engineering approaches so that the best options are always selected, based on true asset condition. A large part of this is also about skilled interpretation of data: it is an approach that is informed too by the wide experience of inspection engineers in dealing with complex information is so many different scenarios. This is fundamental to driving down time that it takes to do a particular dismantling job and reflects what is happening across the industry where reconnaissance work is informing future approaches and helping to reduce estimates of future timescales required on sister platforms.

Across the oil and gas industry, UAV technology is making an enormous contribution to inspection and survey work.

That contribution is set to become even more significant as the industry faces greater technological challenges such as those posed by decommissioning and other general operational pressures. UAV inspection and survey companies are having to adapt to anticipate change and achieve ever greater precision in all areas of operation. One thing is certain though – pioneering and ever evolving UAV inspection and survey capability is going to be of crucial importance to the industry’s commercial success.

For more information please visit www.texodroneservices.co.uk

Innovate - Integrate - Initiate 20

ASA GAMBLE Economic uncertainty within the global Oil and Gas industry has provided the opportunity for ambitious businesses to look abroad for their next opportunity.

N-Sea is one such company that announced the opening of a new office in Dubai, appointing Asa Gamble as Managing Director for the Middle East region, responsible for establishing and developing all N-Sea services and products in the region.

Asa’s depth of knowledge and experience in the Middle East has been invaluable to N-Sea, and he tells us why.

“N-Sea’s presence in Dubai demonstrates their commitment to the UAE, and allows them to offer the best possible service to our customers in the region, and this lets our clients and prospects know that we are serious about doing business in the region”.

Dubai is one of seven emirates that comprise the United Arab Emirates.

The real powerhouse of the UAE is Abu Dhabi, the wealthier elder brother to the more adventurous and younger Dubai, whose economy is built on the back of the oil industry revenues.

The emirate’s share in UAE’s gas revenues is about 2%.

Dubai’s oil reserves have diminished significantly, and are expected to be exhausted in 20 years; however, with Expo 2020 coming up, the construction sector remains active with a particular focus on transportation and general infrastructure.

When you compare this to Abu Dhabi, the UAE’s large hydrocarbon wealth gives it one of the highest GDP per capita in the world, and Abu Dhabi owns the majority of these resources.

Several businesses that established themselves in Dubai over the last decade have now relocated to Abu Dhabi and other locations to take advantage of a more secure, yet still dynamic and attractive business climate.

In Qatar, for example, the country is preparing for the 2022 World Cup, and is in the process of building new roads, railway networks, football stadia and other infrastructure and facilities to support the World Cup Tournament and its 2030 vision.

Insider Tips Among his top tips, Asa recommends the following for developing your business in the Middle East: 1. Where you choose to start your business operations in the Gulf region depends on what you sell and who your target customers are.

2. Each country is unique in its own way, despite several commonalities. Simply transplanting western business in the Gulf will not yield dividends.

3. Culture, religion and language play such a key role in all aspects of life across the Gulf region and wider Middle East, so spend some time to learn.

4. Don’t be impatient, as this will reflect poorly on your character. Be flexible, and be prepared to accommodate shifting schedules. In fact, patience is the most valuable virtue you can demonstrate throughout your business and social life living and working in the Gulf.

Asa’s final piece of advice to prospective businesses is to communicate face-to-face. If this isn’t possible, make a phone call. The written word is considered less personal and less important.

21

Ichthys LNG Project Located about 220 kilometres offshore Western Australia, Ichthys represents the largest discovery of hydrocarbon liquids in Australia in 40 years. The Ichthys LNG Project is currently in construction and is ranked among the most significant oil and gas projects in the world. The Ichthys LNG Project is effectively three mega-projects rolled into one, involving some of the largest offshore facilities in the industry, a state-of-the-art onshore processing facility and an 890 km pipeline uniting them for an operational life of at least 40 years.

The Ichthys Project’s CPF - Ichthys Explorer is the world’s largest semi-submersible platform

OFFSHORE

The LNG processing trains will have the capacity to produce 8.9 million tonnes of LNG per annum

PIPELINE

The Ichthys LNG Project’s central processing facility (CPF) — which is the world’s largest semi-submersible platform — will support hydrocarbon processing systems, utilities and living quarters for workers. After initial processing, most of the condensate will be

ONSHORE

One of the world’s longest subsea gas export pipelines

The onshore processing facilities at Bladin Point near Darwin will

will deliver the natural gas and some condensate cool the gas delivered via the pipeline and then transform it into The FPSO, named ‘Ichthys Venturer’, (890 willkilometres) process The pipeline is 42-inch in diameter and composed liquid to reduce its volume for transport. Purpose built state-ofprocessing facilities near Darwin in the Northern Territory of Australia, 700,000 the-art onshoreof facilities will include two coated LNG trains, LPGwith and and store most of the condensate delivered from of about tonnes steel and so it can be prepared for export. The pipeline length is about the condensate plants, product storage tanks, administration facilities, the Project’s CPF before periodically offloading it tonnes of concrete. distance between the Australian cities of Sydney and550,000 Melbourne.

T IM OR SEA

Western Australia — is one of the world’s most exciting and prospective exploration areas.

To this day, the Ichthys Field (discovered in 2000) remains Australia’s largest discovery of hydrocarbon liquids in more than 40 years.

Darwin

IN DIAN OC E AN NORT H ERN T E RR IT O R Y

FPSO

Browse Basin

CPF

Darwin Ic hthys

Perth

W ES TER N AUS TRA LI A

22

Ichthys Commitment Our workforce is made up of many diverse nationalities and cultures. We are proud of our record of harmonious work and we are committed to providing benefits to the communities in which we operate.

Community We are committed to establishing, building and maintaining community trust. Through the Ichthys LNG Project we will provide long-term multi-generational opportunities.

Environment We seek to do this by ensuring potential impacts to the environment are minimised through careful design, implementation of effective management controls and through comprehensive environmental monitoring which can detect any unplanned impacts and allow early management intervention.

Health & safety Activities are conducted in a manner that is safe and responsible and fully complies with laws, regulations and company requirements.

Aboriginal & Torres Strait Islander peoples engagement We value sustainable relationships based on trust and mutual respect and aim to identify and assist local Aboriginal and Torres Strait Islander owned businesses to effectively engage in the construction phase of the Ichthys LNG Project and build sustainable options for operations.

Industry Participation The IPP promotes participation by Northern Territory-based companies, as well as companies based in other parts of the country.

23

The oil and gas industry is changing, and it is incredibly resilient. The people who work in it know both to be true. The impact of the oil price downturn, now affectionately known in some quarters as “longer forever” (as opposed to the more forgiving “lower for longer”) will likely have long-lasting effects in several areas ie shift to shorter-cycle projects, decrease in appetite for long-term, complex major capital projects, less funding of early stage research and an overall reduction in workforce. These effects have been as dramatic and highly publicised in the US as they have been in the UK or elsewhere around the globe.

Something less talked about in the US though is the acknowledgement, within the industry itself, that the energy mix is shifting, driven by innovation, technological improvements and environmental concerns. The energy transition presents a significant challenge - how to meet the world’s increasing demand for energy whilst also reducing carbon emissions. Add to this the supply outlook: oil inventories are at record-high levels. U.S. crude oil production averaged an estimated 8.9 million b/d in 2016 and is forecast to average 9.3 million b/d in 2017. Crude oil production is forecast to average 9.9 million b/d in 2018, which would mark the highest annual average production in U.S. history, surpassing the previous record of 9.6 million b/d set in 1970. U.S. natural gas production is forecast to average 73.5 Bcf/d in 2017, a 1.2 Bcf/d increase from the 2016 level. Natural gas production in 2018 is forecast to be 3.9 Bcf/d above the 2017 level. (EIA STEO, Aug 8 2017).

The seemingly irresolvable tension between energy demand, oversupply and the environment provides some difficult choices and interesting opportunities. In the US market, the opportunity space is being filled 24

by entrepreneurial and start-up activity in clean, digital and disruptive technologies. These smaller companies market their products, within the same pond, alongside bigger, more established players, the latter often with similar solutions. There continues to be cross-industry newcomers with a proven track record in other sectors namely, life sciences and defence, hoping to tweak, adapt and then replicate their product success in the oil and gas sector. It is, even more now than ever, an intensely competitive and changing energy market, fuelled primarily by the belief that a) there is the continued gradual shift to less carbonintensive energy, like natural gas, nuclear and renewables and b) oil and gas producers will, eventually, reinvent themselves as data-driven companies that can fundamentally reimagine how and when work gets done, to both optimise cash generation and improve cost competitiveness.

In the near term, however, much of the focus in the US will remain on the continuing adjustment of the oil market with an unrelenting (one hopes) focus on cost, efficiency, and speed.

Whilst national-level market drivers have a strong influence and overprint in terms of activity, the US Shale industry has given rise to regional market influences that are affecting the national and global outlook in some unexpected ways. The surge in investment into the US petrochemicals industry is nothing short of phenomenal. Natural gas production in the Marcellus and Utica shales in the NE has risen substantially in recent years, often outpacing the growth of US natural gas pipeline capacity. Supply from this region typically feeds demand the US Gulf Coast. Abundant natural gas is resulting in a rapid increase in LPG and ethane. Rapid increases in US LPG and ethane in turn has outpaced growth in domestic end uses, leading to increased exports. The pressure from rising ethane supply availability

Shareen Yawanarajah is a Geologist with over 23 years of experience in the energy industry, covering Unconventionals, Deepwater, EOR/IOR, IT, Trading and Clean Energy technologies. Prior to joining the Consulate, Shareen worked for Shell on a variety of complex oil and gas projects globally and in the Gulf of Mexico before leaving in 2016 to take up a Senior Executive Service position at the US Department of Energy in Wash.

DC where she was the Director of Oil & Gas Research. Shareen began her professional career with Amoco working on New Venture projects and the US Permian Basin. After a stint for an energy trading software company in New York, Shareen joined Schlumberger and provided in-country geologic consulting services to NOCs in Algeria, Angola and Russia. Shareen later led SLB’s management consulting services on several major oil company accounts focusing on Digital Oilfields. Shareen holds a Ph.D in Organic Geochemistry from Southern Illinois University, an MSc in Petroleum Geology from Imperial College, University of London, and Project Management Certification from Rice University.

is contributing to lower US prices, making US exports to foreign markets competitive with local supplies. Low US feedstock prices (ie natural gas and ethane) has also enabled US-produced chemical derivatives and intermediate products, such as ethylene, to be competitive in foreign markets. Notably, the US has become source of the world’s most competitive ethylene, after the Middle East.

Consequently, demand for US marine export terminal capacity and vessel capacity has been increasing, and this trend is expected to continue to drive investment in infrastructure both in the US and abroad. The recently announced partnership between Enterprise Products Partners L.P. and Navigator Holdings Ltd—which holds a fleet of 14 ethylene-capable ships—comes as part EPP’s strategy to provide the US petrochemical industry logistical flexibility and an outlet to international markets as ongoing shale development continues to provide abundant, cheap natural gas, ethane and ethylene. Given the importance of ethylene in manufacturing supply chains, the significant increase expected in US ethylene production capacity will provide other manufactures with dependable raw materials at low cost all along the various supply chains. The US Gulf Coast is currently the main petrochemical hub in the US, with ethane being moved from the NE and the Western US to feed crackers in the Gulf Coast. However, a petrochemical industry is being planned in the NE ie in Ohio, W. Virginia and Pennsylvania to support Shell’s multi-billion Beaver County Cracker plant. Manufacturers around the world should be keeping a close eye on the petrochemical industry! It is conceivable that in the near future the US may be the most competitive place in the world for the production of finished goods and consumer products.

A second area in which the US shale production is having unexpected market affects is water management. The national produced water volume estimate for 2012 from oil and gas production is 21.2 billion barrels per year, equivalent to a volume of 2.4 billion gallons/day, coming primarily from onshore operations as well as older conventional wells. Water represents the largest produced fluid in the oil and gas industry and nearly all of it is re-injected into the ground. The onshore oil and gas industry uses a staggering amount of water – mostly freshwater in its daily operations, with many shale plays located in drought-stricken areas like Colorado and West Texas. The oil industry is the only sector that both adds and subtracts from any given regional water budget, however, produced water is not a typical revenue stream for oil and gas operators. The single largest cost component of US oil and gas production is produced water disposal. This fact coupled with recent high profile environmental impacts of saltwater disposal wells (induced seismicity) have resulted in conversations around this topic to shift ie from viewing produced water as a waste to viewing it an asset. The key market trend is seen in advances in produced water treatment technology. Aside from water reuse, operators stand to see real cost reduction in chemical usage, currently the go-to method used to treat water and corrosion. In today’s climate, this is a very attractive value proposition. On the other hand, water treatment companies face stiff challenge from the chemicals industry who view these advances as a direct threat to their bottom-line. If the complex legal, environmental, regulatory, technical, commercial, social, and political problems around produced water treatment and reuse can be solved, there is potentially a multi-billion-dollar water industry forming in the oil patch.

25

D IRECTORS CORNER What do you think of the industry at the moment be that positive of negative?

Scott Harper

www.mesh-global.com

Positives - Seeing increase in Tenders & Enquiries - Rig utilisation rates are up for most clients - Clients stating that there is more activity in rig tenders - Operators now back looking at work scopes that had previously been put on hold - Employment rates and recruitment figures on the up Negatives - Day rates for rigs still low - Further Lay-offs from well-established service companies - Industry still not at the level of recovery we would have hoped for at this stage - Still significant surplus of oil production in the market

Sheryl Newman

www.appetiteforbusiness.com

Aberdeen is a great incubator for generating new and innovative ideas to help industry work more cost effectively. I believe there is a greater draw for consultancy and support services especially with all the changes coming in the UK economy. We have seen a greater demand for our work as companies realise that outsourcing services with the specialisms that we provide is a cost-effective way of dealing with some of their business issues allowing for small marginal gains that add up. We provide an external viewpoint and experience to draw upon to make better informed decisions and cut the worry with resourcing when a project is complete.

Callum Masson

www.orcasubsea.com

The Oil and gas sector and Subsea particularly has been hard hit by the prolonged slump in oil prices. I don’t think this is news to anyone but as with every significant move in the market whether up or down this has created new opportunities.

At Orca we expect the current trend of sub $60 p/b to be maintained through much of 2017 and 2018 and we don’t envisage a rapid recovery after this either. However as mentioned previously we believe this period of low oil prices will offer opportunities particularly to lean new start up companies offering traditional high margin services and new technologies offering efficiency saving. In the boom years persuading the major players to look at new approach either in there traditional activities or new technologies was particularly challenging to a start up companies, however with the majors adjusting to the new economic reality of sub $60 p/b oil are now looking for efficiencies where ever they may be and thus this has opened the door to new approaches and subsequently new businesses employing a different take on traditional activities.

Chris Tierney

www.setsltd.com

We believe in challenging the norms within the industry, under which Late Life and Life of Field operations are conducted.

The rehashing of old methods or lax approach to integrity and maintenance over the most recent downturn has opened new opportunities to deliver cost effective and efficient solutions to these operators hoping to extend the Asset potential, and get more for their production.

The operators who work with companies like SETS, in a collaborative & supportive approach, are the ones who will benefit most from these solutions, like our most recent clients.

26

ADAPTIVE CATERING CO. LTD IS DESIGNED SPECIFICALLY TO ADAPT TO ANY OF YOUR CATERING NEEDS. WHETHER IT'S CORPORATE OR PRIVATE FUNCTIONS TO WEDDINGS TO FULL KITCHEN IMPLEMENTATIONS. WE ARE THE TEAM TO DO IT. CHRIS@ACC-GROUP.CO | 07826 551310

CHEMICAL INJECTION SOLUTIONS SPECIALISED MACHINING SOLUTIONS INTEGRITY MONITORING SOLUTIONS WELDLESS CONNECTION SOLUTIONS ENGINEERED COMPOSITE SOLUTIONS