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Oil and Gas™ Autumn 2016

INNOVATION Business Information. Industry Solutions.

School Report: Chemical and Petroleum Engineering The Safer Alternative to Heavy Duty Cutting

Modern Portable Dew Point Analysers

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Security Focus: Safeguarding Seafarers Worldwide


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CONTENTS COVER STORIES & SPECIALS School Report: Chemical and Petroleum Engineering



Curtin University is rising fast in the international rankings. Situated in Perth Western Australia, one of the hottest gas spots in the world right now, the university is ideally suited for high minded individuals in the industry.

The Safer Alternative to Heavy Duty Cutting


Exclusive Interview: ANT Applied New Technologies AG proves it is really possible to cut very strong, 50-centimetre-thick steel plates, concrete pipes and even bombs with water and abrasive.

Shrink Wrap as an Anti Corrosion Solution?


Exclusive Interview: Yes. Alfa produces a shrink wrap which has many civilian and industrial applications. One of the most important aspects to their varied solution is it’s ability to protect oil and gas related assets against corrosion.

WORLD INDUSTRY NEWS Europe Russia & the CIS South America MENA North America Africa

16 19 20 22 24 26


EXPLORATION & PRODUCTION Reduction in FPSO Insurance Claims


Expert analysis from Subsea Energy Solutions (UK) on various subsea technologies. These technologies which drastically reduces risk exposure in FPSO cable, umbilical and risers systems are discussed in detail.

MIDSTREAM & PIPELINES Implementing the Lean Model in R&D


Metso has been utilizing a Lean management model in production for a long time already. We now wanted to take what we have learnt on the factory floor and implement a similar efficient way of working into the office environment.



VERSATILE. Always a leading innovator, we supply customers with cutting-edge diagnostic and system integrity solutions. This, bound with our focus on flexibility, reliability, cost and quality, leads to offerings beyond your expectations.

CONTENTS Security Focus: Safeguarding Seafarers Worldwide



English based company Guardian Maritime limited has developed quite an ingenious and cost effective solution which is arguably more successful than the much-used razor wire in preventing pirates from being able to set foot on deck.

Blasting Without Grit


The Bristle Blasting process is an innovation in surface preparation. Designed for professional industrial use, the Bristle Blaster® tool is able to remove corrosion, mill scale, and coating quickly even from pitted surfaces in hard-to-reach areas.

Hydraulic Cylinders for the Offshore Industry


LJM Hydraulik develops and manufactures hydraulic cylinders for the offshore oil and gas industry. The manufacturing equipment at LJM Hydraulik is continuously updated and operated by staff with a vast expertise and know-how.

Merford and Siemens Deliver Mega Project off the Norwegian Coast


The compressors on the Edvard Grieg oil platform, some 160 kilometres off the Norwegian coast, as manufactured by Siemens in Hengelo, have been fitted with ‘state of the art’ noise enclosures.

PROCESSING Modern Portable Dew Point Analysers


Excellent gas quality has been crucial to the success of the natural gas industry. For this reason, development of the tools required for accurate gas analysis has been an ongoing activity from the very beginning. In some cases, however, significant progress was not particularly rapid. An example of progress that virtually stood still for decades was dew point analysis.



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Chemical and Petroleum Engineering Education @ Curtin University: The Future in Australia Curtin University

In the top two per cent in the world and recognized as one of the most international and collaborative universities, Curtin University is rising fast in international rankings.

Perth City, Australia



he 2015 Excellence in Research for Australia (ERA) outcomes ranked Curtin at world standard or above in 85 per cent of assessed discipline areas. The university is based in Australia, Singapore and Malaysia, with its flagship campus in Perth, the thriving capital of Western Australia and hub of the South‐East Asian energy market. Currently undergoing a major transformation, the Perth campus is set to become a vibrant urban centre of economic vitality, world‐class knowledge, sustainable living, creative spirit and cultural diversity. Curtin Bentley Campus As industry and research grow closer together, the impact and volume of university research activity is rising. In Western Australia, where the resources sector has been at the centre of the mining and energy boom over the last decade, Curtin University is delivering high‐ impact research outcomes in engineering and mining both locally and internationally. Key research linkages Curtin’s staff and students are currently involved in more than 70 major research centres, institutes and collaborations including the Australia‐China Joint Research Centre for Energy, Curtin Corrosion Engineering Industry Centre and the Fuels and Energy Technology Institute. The university’s collaborative industry partners are both domestic and international, and include Australian National Low Emissions Coal Research and Development (ANLEC R&D), CSIRO Energy, Chevron Australia, Woodside Energy, Shell Australia, The National Geo‐ sequestration Laboratory (NGL), PetroChina and State Key Laboratory of Oil and Gas Reservoir Geology and Exploitation, China. Petroleum engineering teaching and research programs Strong, strategic partnerships and the recruitment of exemplary research leaders have been important in the establishment and growth of Curtin’s teaching and research programs. Curtin’s Department of Petroleum Engineering is heavily engaged in a number of specific industry research activities, such as the following. Fluid‐Rock Interaction and Multiphase Flow, South‐West Hub CO2 Storage Site‐ Western Australia: Aimed at reducing greenhouse gas emissions by storing commercial quantities of

Core Flood Labs. carbon dioxide in a deep saline aquifer, the project investigates the effects of geochemical reactions on multiphase flow properties, which constrains the inherent uncertainty of the carbon dioxide injection process. Low Salinity Water Flooding in High Temperature and High Salinity Reservoirs: This project is expanding the application of low salinity water to high temperature and high salinity reservoirs, enabling the industry to deliver affordable energy from presently hard‐ to‐produce oil reservoirs. New Paradigms in Exploration Drilling Technology: Ongoing extensive research is
developing a coiled tube drilling rig for
initial application in mineral exploration,
 but potentially later development as an
onshore and subsea oil and gas drilling rig.
 The project is supported by the Deep Exploration Technology Cooperative Research Centre. Reservoir Stimulation by Hydraulic Fracturing: Extensive research in the areas of hydraulic fracture stimulation and petroleum geomechanics is led by a multidisciplinary team. A world-class, state-of-the-art True

Triaxial Stress Cell is utilized to study many issues associated with hydraulic fracturing. The projects are supported by many agencies, such as the National Geoequestration Laboratory, Australia, WA Department of Mines and Petroleum, and local oil and gas companies. Unconventional and Shale Gas Development: Shale gas is becoming an important source of natural gas in many countries. Western Australia alone is estimated to be holding the fifth largest reserves of shale gas in the world. With the support of government and local industries, the Unconventional Gas Research Group at Curtin’s Petroleum Engineering Department has been involved in many facets of shale gas research within the Perth and Canning Basins; and it has established one of the most advanced shale analysis laboratories in the world to conduct various research projects on shale reservoirs. Clean Gas Technology: Focusing on many aspects of gas processing, research examines carbon dioxide separation, hydrate formation and dissociation studies at high pressures and

Curtin Bentley Campus.


Engineering Pavilion.

low temperatures using special inhibitors and promoters. The research is supported by Woodside and Chevron Australia. Teaching Courses Curtin offers a range of internationally recognised courses, from undergraduate to doctoral level. Courses are created and reviewed with industry in mind; all undergraduate courses are recognised by professional and industry bodies and government organisations, including Engineers Australia, the Institution of Chemical Engineers and the WA Department of Mines and Petroleum. Engineering at Curtin Curtin’s Bachelor of Engineering is a four‐ year honours degree, with ten majors to choose from including chemical, petroleum, metallurgical, electrical, civil and mining engineering. The School of Chemical and Petroleum Engineering has a close industry association with, for example, a Woodside/ Chevron Chair in Corrosion Engineering while the Curtin Corrosion Engineering Industry Centre, Fuels and Energy Technology Institute and the CISCO Internet of Everything Innovation Centre allow postgraduate students to experience innovative research in an industrial environment with new technologies as the focus. The multi‐million dollar plan to develop Greater Curtin will bring a high tech village atmosphere to our campus. Couple this with the world‐leading Masters programs in Petroleum, Chemical and Subsea Engineering and the break‐through Master’s program in Predictive Analytics, as well as being the only university to have a complete offshore oil and gas production operations room, shows how Curtin is committed to developing applied skills for students in these emerging technologies when they enter industry. Key research centres Fuels and Energy Technology Institute: Research activities at the institute cover both fossil fuels and renewables, reflecting the fact that future energy supply will be a mix of the two. Research programs include bioenergy science and engineering, coal science and technology, fuel cells and electrolysis, energy storage, carbon dioxide utilisation, natural gas conversion engineering and environmental performance of energy processes. Cisco Internet of Everything Innovation Centre: Global networking company CISCO has established an Internet of Everything (IoE) Centre at Curtin University in partnership with Woodside Energy. The centre is expected to be a catalyst for investment in next‐generation technology, accelerating innovation in Australia’s resources, agriculture and astronomy sectors, and more broadly around big data. Work is underway around the Square Kilometre Array and Woodside’s ‘Plant of the Future’. The Pawsey Supercomputing Centre: This world‐class, high‐performance computing facility houses one of the largest supercomputers in the southern hemisphere. Researchers from government, industry and


“Curtin’s staff and students are currently involved in more than 70 major research centres” the academic sector work in the domains of radio astronomy, geosciences, resources engineering, bioinformatics and health sciences, sharing expertise and infrastructure in supercomputing, data and visualisation services. Facilities Curtin has modern, stimulating and creative teaching and research environments that provide problem‐based learning, group collaboration, access to advanced research equipment and the opportunity for staff and students to share their ideas with industry. Engineering Pavilion The AUD$32.5 million Curtin Engineering Pavilion
Complex comprises two buildings: the student‐centred Curtin Engineering Pavilion and the
 engineering postgraduate research hub. The
complex facilitates the education of better engineers, and promotes interaction and collaboration between industry, students and academia. This includes the nearby Resources and Chemistry Precinct which facilitates to conduct teaching and research, allowing staff and students to access world‐class facilities for their work and study. Technology Park While the Department of Chemical Engineering is located on the Perth Campus, the Department of Petroleum Engineering and Curtin Corrosion Engineering Industry Centre are both situated at the adjacent Technology Park and co‐located with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), the national scientific laboratory. Internship and scholarship opportunities Curtin’s strong connections and partnerships with industry have resulted in a variety of internships, professional placements and

vacation program opportunities with reputable organisations including Woodside, Chevron, BHP, Quadrant Energy, Santos and Origin Energy. Industry‐based scholarships are available to Curtin students, including the Woodside Petroleum Engineering Scholarship, awarded on academic merit to a student enrolled in their second year of a petroleum engineering degree at Curtin and BHP Billiton Petroleum Scholarships, awarded to students on academic merit who are studying Petroleum Engineering. A range of international student scholarships are also on offer, including Curtin International Scholarships ‘Inbound Study Abroad Scholarship’, the ‘Merit Scholarship’, plus a range of research and partner‐funded scholarships to support international students whilst completing their studies. Perth As the thriving capital of Western Australia, Perth is a safe, prosperous and cosmopolitan city set against the stunning backdrop of the
 Indian Ocean. It gets more
 sunshine than any other Australian capital, giving residents
opportunities to enjoy its spectacular beaches and outdoor lifestyle. Curtin’s Perth campus is
 situated six kilometres from
the city centre and is close to
public transport and a range of services and support facilities including a medical centre, childcare centre, on‐campus accommodation, banking facilities and international food outlets. •

Joining Curtin University Postgraduate or undergraduate: or Industry partnerships: about/industry-partnerships/


The Safer and More Efficient Alternative to Heavy Duty Cutting In this special, Oil and Gas innovation interviews ANT Applied Technologies AG (ANT) who produce a Water Abrasive Suspension cutting solution. The solutions from ANT proves it is really possible to cut very strong, 50-centimetre-thick steel plates, concrete pipes and even bombs with water and abrasive. We discuss in this question and answer session the considerable advantages of cutting with water abrasive suspension in comparison to traditional cutting and separating techniques.

ANT: Since 1999, the Oil and Gas sector has played a large role for the whole range of our applications. Beginning with renting our equipment and personal service to different companies we got a deeper inside in the needs of our customers during our operations worldwide. Our first application was used for decommissioning then modification, repair and as well support during installation of an offshore structure. The ingenious technique of the Water Abrasive Suspension (WAS) jet was always the key to our success. Nowadays we design, manufacture and sell our offshore equipment to customers all over the world. OGI: ANT AG has a few different product lines, which are of course applicable to various industrial sectors. Which sectors within the oil and gas industry do you primarily help? Precision cutting solution


ANT: Decommissiong, modification and tie in, repair and installation. Decom: cutting pipes, piles, tubes, multi string casings. Modification: cutting “windows” in tubes OGI: Are there any new products / services which have been brought to market recently? If so could you kindly elaborate on what these solutions are? ANT: Yes, since 2012/2013 new advances in existing products which are continuously advancing. For example: 3S Cut Verification System to track the cutting results while cutting downhole. Our range of Downhole Cutting Heads that can be used for cutting of multi string casings and single tubes from 7“ up to 72“ pipe size and wall thickness’s up to 20“. The powerful and precise jet works at 36.000 psi and can be operated in water depths up to 500 ft. Because of our invention of the air surrounded water jet and optional dewatering we generate cutting circumstances under water the same as in the air. The air curtain created around the Water Abrasive Suspension (WAS) jet helps passing the waterjet while cutting.

The resulting pressure energy transforms to a cutting jet escaping with almost twice the speed of sound. In this process, the water and the abrasive particles in it are accelerated so much that they cut the material like a knife.

OGI: Could you start by explaining ANT AG’s credentials and experience in terms of the applications of your products and services in the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its worldwide reach?

OGI: Could you explain detail how the Water Abrasive Suspension (WAS) cutting technology works? ANT: A WAS cutting system consists of the following components: a high-pressure pump, an abrasive mixing unit, short AMU, and a remote-controlled cutting nozzle. The water is fed through the main line under a pressure of up to 2,500 bar. By means of a T-piece, the water is divided into a main and a bypass flow. As soon as the bypass valve is opened, a part of the water gets into the high pressure vessel of the AMU. The supplied water presses the

abrasive through a discharge pipe to a mixing piece. In this unit, the water from the main line and the abrasive join to form a suspension. This suspension is fed through a high-pressure hose of up to 1,000m to a hard metal nozzle and is pressed through it. The resulting pressure energy transforms to a cutting jet escaping with almost twice the speed of sound. In this process, the water and the abrasive particles in it are accelerated so much that they cut the material like a knife.

“Any material can be cut safely”.

OGI: What are the advantages of using a WAS cutting technology, opposed to other cutting methods? ANT: Whether under or above water – the safe WAS procedure can be applied in most diverse applications. From bomb disposal to the dismantling of oil platforms, atomic power plants and areas with higher risk of explosion up to industrial cuts. Any material can be cut safely without the impact of air and heat. OGI: It’s important for companies to accurately track their results, could you explain the 3S Cut Verification System, and what it can do for a client? ANT: Our unique and patented 3S Cut Verification System helps the hearing and feeling downhole. Information about the success of your cut are brought to you over 3 sensors to a screen on the platform. These sensors are a pressure sensor, a sensor for structure-borne sound and hydrophones. You get a real time performance feedback at your actual cutting position. The cutting quality is brought to you by a simple traffic light, showing you the result over the colours. Also the system reports all sensor readings and cutting parameters and logs them after starting a task to a file.

OGI: Finally, could you enlighten our readers of a particular case study where you helped a client with your solutions? ANT: The problems in the area of decommissioning are mostly the same. Danger because of explosive gas and oil, tools which have come to their limits, building plans that look totally different on site and so on. Our customer in Asia faced the challenge

to decommission and abandon a platform and casings. Not usually that difficult, but this structure was settled very close to an international shipping way and had to be cut deep under the mud line. Grinders which were in use failed, so they needed a different technology that cuts safely in areas which are at risk of explosion. They used our Downhole Cutting Head (DCH) to cut the casing from the inside and under mud line. After the casing was cut they pulled it out of the ground by crane. The same was done with the whole structure afterwards to ensure a safe travel of the ships. OGI: Thank you very much for that informative and insightful look at your company and your WAS technology. If readers are interested to know more, kindly refer to the contact details below of our interviewee, ANT Applied New Technologies AG. Also you can click follow the link here to their latest online video which shows the WAS system at work, and see for yourself how this excellent technology is both safe and efficient. • Video: watch?v=Xne_xCS8Kzw

ANT Applied New Technologies AG T: +49 451 58 38 00 E: W: Our range of Downhole Cutting Heads.



Shrink Wrap as an Anti Corrosion Solution This is just one among the many topics we discuss in this exclusive interview with Alfa Solution AS. Alfa produces a shrink wrap which has many civilian and industrial applications. One of the most important aspects to their varied solution is it’s ability to protect oil and gas related assets against corrosion. This unique solutions can be more efficient than traditional methods, while also being less costly for the user. We have Alfa explain this to us and the reader in depth below. OGI: Could you start by explaining Alfa Solution AS’s credentials and experience in terms of the applications of your products and services in the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its worldwide reach? Alfa: ALFA Solution AS is a company founded in 1994 and have since 2008 focused on solutions to protect equipment during storage, preservation, transport and operation. Over the years we have developed new solutions and products that have been used with proven success in the oil & gas for long term storage and preservation, and for open deck transport of sensitive and high cost equipment. Our products are used from the manufacturing process and storage of spare parts, until the various need for protection of the complete equipment during storage, preservation, transport and operation. Our solutions are cost effective and have proven 60% or more in reduction of cost compared to traditional solutions, and does in addition last for a much longer period compared to traditional methods. Our products are used in several Emergency pipes long term protection.


countries in Europe and have briefly started distribution in USA. OGI: What are the various sectors you work in? Alfa: ALFA Solution AS have solutions that fit several sectors of the industry, our products and solutions are used in the construction industry, mechanical industry, shipping industry, oil & gas industry, defence industry and all levels of supply chain industry. Our solutions are flexible and can easily be adopted to fit each and one of these sectors. OGI: Alfa Solution has a few different product lines, which are of course applicable to various industrial sectors. Could you explain in detail which various solutions the company offers which are applicable to oil and gas? Alfa: All of our product lines are applicable in the oil and gas sector, both our Transhield covers, the Shrink Wrap and ProGARDO products are self standing product lines but also used in combination to cover different need. Our Transhield covers are special made and suitable to use for protection of operational equipment with intermediate use, like deck

winches, provisional cranes and ROV systems. They are light weight, easy to pull on and off and protect against corrosion and environmental degradation, reducing the maintenance cost fur such equipment significant. The covers are also recommended to be used for protection against icing of equipment in arctic environment and operation. Our various quality of Shrink Wrap are used for all kind of storage and transportation protection, in combination with our ProGARDO products it gives an ultimate preservation and corrosion protection. Our Premium Virgin shrink wrap have additives that makes it last for at least 5 years in Nordic climate and 2 years or more in desert/tropical climate. The ProGARDO product line is also self standing products based on a special VCI formula using different carriers for application, it can be used for protection of electrical and PLS cabinets, mechanical equipment, spare parts etc. and for humidity control in containers etc. ProGARDO used in combination with our Premium Virgin shrink wrap can protect against corrosion for up to 5 years.

OGI: I understand you employ shrink plastic in many operations, how does this help clients and why is it such as effective solution?

VCI Plus ProGARDO (left), Transhield pipe end cover (bottom) & ROV protective cover (top).

Alfa: Shrink Wrapping can as mentioned be used in a variety of operations and it gives our client a cost efficient and sturdy protection not only for equipment but in many occasions also for personnel. Used during manufacturing of modules it can cover the whole module and give a working friendly environment for the operators which increase both the safety and the efficiency. In addition it also gives a good protection against falling objects when working at height like on ship yards. Shrink Wrap is very easy to install and gives a full weather tight protection that stand during harsh weather conditions, combined with the flexibility and reasonable material cost it’s the most cost efficient solution in the market today. There are no limitations for size, shape or where you can use Shrink Wrap. OGI: How do you help companies with corrosion control? Alfa: ALFA Solution AS assist companies finding the best solution for corrosion control of their specific need and equipment based on information of equipment and activities of company and also site visit. In some situations and on complex projects we either take care of the full job or assist company with a Supervisor during the project. The intention is however to educate company personnel to be self standing and able to easy navigate and use the right solution for the various situations, this give them maximum flexibility and knowledge of how to take care and protect their own equipment at all time. To give companies the best possible knowledge we run training sessions on site, on training facilities or in our warehouse, and we are always available for assistance when required. OGI: How does your ProGARDO VCI products work? Alfa: VCI stands for Volatile Corrosion Inhibitor and the + sign reflects our special formula that gives the VCI a longer life span. Chemicals used for ProGARDO VCI+ are evaporative materials that when used with Reel protection.

different carriers like fluid, PE or talcum etc acts inside a closed environment. The VCI molecules evaporate in the enclosed environment and establish a protective coating over the surface of the metals. This protective layer prevents the corrosive elements such as humidity, salts or environmental elements to react with the metal surface and cause corrosion. The ProGARDO VCI+ does not bind permanently to the surface and will disappear when unwrapped; parts can then be installed directly without any major cleaning process which saves both time and environment. ProGARDO VCI+ products can be used safely and effectively in every metal applications such as iron, steel, copper, aluminium, galvanized metals etc. OGI: Finally, could you enlighten our readers of a particular case study where you helped a Alfa: One of our recent projects in assisting a client is regarding problems related to storage

of emergency pipes on a large storage facility on the West coast of Norway. Our client had for many years tried various solutions to protect the pipes against environmental degradation and corrosion, the pipe coating eroded and the pipes corroded. The previous solutions they had tried were not successful for more than a few months and required continuously maintenance and replacement. Our first step was to solve the environmental degradation of the coating and to confirm the life time of our product, this we did by covering a full stack of pipe with our Premium Virgin shrink wrap. This cover have now been on for 3 years through all kind of weather conditions without any sign of wear or need for repair. The next step was to take care of the corrosion control of the inside of the pipes, this was solved by pulling a VCI+ PE film through the entire pipe, installing our special desiccant bags and closing the pipe ends of with special made Transhield covers. As can be seen from above this involved a full combination of our major product lines but giving a complete protection for years to come. •

ALFA SOLUTION AS Tel: +47 37 09 19 20 E: W:



Wärtsilä to Power Mediterranean’s First LNG Fuelled Passenger Ferry


ärtsilä has signed a contract with Construcciones Navales del Norte SL (LaNaval) shipyard in Sestao, Spain for the design and supply of the LNG power and propulsion installation for a new RoRo passenger ferry. There is also an option for a second vessel. The ship is being built for Spanish owner Baleària, a leading operator serving the Balearic Islands. Wärtsilä will also provide inclusive project support services to the yard, including integration engineering and on-site consulting, as well as commissioning of the combined systems. The contract with Wärtsilä was signed in August. When entering regular service in 2019, this eco-efficient ‘smartship’ will be the first gas-propelled RoRo passenger ferry operating in the Mediterranean Sea, and among the largest ferries in Europe. It has a length of 232 metres and a capacity for 331 vehicles and 1700 passengers, 70% of whom can be accommodated in cabins. Because of the ship’s extensive accommodation facilities and the need to prioritise passenger comfort, stringent standards to reduce noise and vibration will be applied to Wärtsilä’s main and auxiliary engines, propellers, and manoeuvring thrusters. By sailing on natural gas, the environmental footprint of the vessel will be greatly reduced. In comparison to standard marine diesel fuel, Wärtsilä’s LNG solution reduces CO2 emissions by 25%, nitrogen oxide (NOx) emissions by 85%, while sulphur and particulate matter are virtually entirely eliminated. The full Wärtsilä scope of supply for this contract includes four

8-cylinder Wärtsilä 50DF dual-fuel main engines, four 9-cylinder Wärtsilä 20DF dual-fuel auxiliary engines, the Wärtsilä LNGPac fuel storage and management system, two twin/single out gearboxes, two Wärtsilä Controllable Pitch Propellers (CPP) with the Wärtsilä ProTouch bridge control system, two Wärtsilä transverse thrusters, plus comprehensive engineering, project management, and on-site yard support services. The Wärtsilä equipment is scheduled to be delivered to the yard in mid-2017. “Baleària, the owners of this new ferry, appreciate the importance of LNG fuel in providing a cleaner marine environment. Wärtsilä, with a track record of more than 1500 gas fuelled engines with 16 million running hours, has by far the most experience in dual fuel power and propulsion installations. Furthermore, our capability to assume responsibility for the combined ship systems, plus our strong service support and training facilities were other important considerations,” says Aaron Bresnahan, Vice President, Sales, Wärtsilä Marine Solutions. “In our current order book at LaNaval, we have two vessels that will be powered by dual-fuel engines: a multi-purpose cable laying vessel and this Ro-Pax vessel for Baleària. For both ships, LaNaval has selected Wärtsilä as the supplier of the DF engines, and we have also chosen the company’s LNGPac fuel system. We made this decision based on Wärtsilä’s experience in dual-fuel technology,” says Javier Angulo, Deputy Managing Director and Sales Director at LaNaval. “The output power from the Wärtsilä engines will allow the ship to reach a speed of 24 knots. Their technology will enable us to be highly efficient and competitive with our passenger and goods services,” says Guillermo Alomar, Baleària’s Fleet Director. •

BP Target Neutral Is Celebrating 10 Years of Working with Customers to Reduce Carbon Emissions


P Target Neutral, BP’s not-for-profit carbon offsetting business, is celebrating 10 years of helping our customers offset their personal and business carbon emissions. Over the last ten years BP Target Neutral has offset 2.5 million tonnes of carbon on behalf of customers, half of which has been achieved in the last three years. That’s equivalent to taking around 1.2 million1 European cars off the road for one year. This has been achieved with innovative carbon neutral products, a new carbon neutral fuel card for fleet operators and a set of easy-to-use tools such as online carbon calculators - all of which have contributed to BP Target Neutral’s steady increase in business participation which has seen a threefold increase in the past 5 years2. Andrea Abrahams, Global Director of BP Target Neutral explains: “This is a business-led programme. We encourage our customers to use our tools and products which in turn help them achieve both their sustainability and commercial goals. Over the last three years we have adjusted the BP Target Neutral model and we are now working much more closely with our business customers to provide innovative solutions for their operations.” These solutions include Castrol Professional, a global range of carbon neutral lubricants for the automotive industry, and PTAir, the world’s first lower carbon and carbon neutral purified terephthalic acid (PTA). BP Aral has also recently launched a range of Carbon Neutral Fuelcard options supported by BP Target Neutral. Tufan Erginbilgic, CEO Downstream explains: “The challenge is to manage and meet the world’s growing demand for energy, whilst addressing climate change. At BP we see a number of ways this can be achieved with carbon pricing by governments being the most comprehensive and economically efficient policy to limit greenhouse gases. “Additionally, we recognise the need for BP to improve the carbon efficiency of our own operations and the products we sell to our customers. It’s also important to our customers that they find ways to reduce their impact on the environment. BP Target Neutral supports

our business and our customers, as we seek to reduce our environmental impact.” All of BP Target Neutral’s offers are backed by world class carbon offset projects around the world and overseen by an independent advisory and assurance panel. 1Based on the JEC Well to Wheel GHG emission data for a typical European gasoline car and average annual mileage in the UK, France, Spain, Italy, Sweden and Norway •

NEWS - EUROPE DNV GL and EPCRC Awarded NOK 40 Million for JIP on CO2 Pipelines


O2 pipeline efficiency and safety are critical to the rollout and scaling up of CCS solutions, which are needed to meet the Paris Agreement greenhouse gas reduction targets. The Norwegian CLIMIT Programme and Australian Department of Industry, Innovation and Science have awarded DNV GL and Energy Pipelines CRC (EPCRC) just over NOK 40 million for a test programme for CO2 pipelines involving large scale testing at DNV GL’s Spadeadam test site in the UK. Pipelines are the most common way of transporting large quantities of CO2 in CCS projects, but the cost can be significant due to the quantity of material. In the absence of accurate fracture models, CO2 pipelines must be either designed and constructed conservatively or subjected to full-scale propagating tests. Accurate modelling of CO2 dispersion to identify the hazards posed by small releases or a major leakage contributes to safe designs as well as better permitting processes and community consultation activities. In order to reduce the future cost of CO2 pipelines while ensuring the required safety level, DNV GL and EPCRC are cooperating to advance optimal pipeline design through new simulation models and full-scale fracture tests. The Norwegian CLIMIT Programme and Australian Department of Industry, Innovation and Science are each providing funding of NOK 20.8 million for this test programme running from 3Q 2016 to 1Q 2019. The test programme ‘Improving the safety and efficiency of CO2 pipelines by developing and validating predictive models for CO2 pipeline design’ is unique as it connects the Norwegian and Australian support schemes for funding R&D in the CCS value chain in a joint effort to address an issue that is important for the efficient and safe transportation of CO2. DNV GL and EPCRC will make the results available to the wider CCS market by updating the standards ‘DNV-RP-J202 Design and Operation of CO2 Pipelines’ and ‘DNV-OS-F101 Submarine Pipeline Systems’ as well as by improving software. The test programme will address the existing knowledge gaps in the fracture control of high pressure pipelines by conducting large-scale fracture-propagation testing of dense-phase CO2 pipelines at DNV GL’s Spadeadam test site in the UK. Both EPCRC and DNV GL have carried out extensive work on running fractures in pipelines. EPCRC has a model for predicting running fractures in gas pipelines and will use the test results to validate this model for CO2 transport. DNV GL has experience of designing and implementing complex test programmes as well as a long track record with CO2 pipelines for major joint industry projects such as CO2PIPETRANS and SARCO2B. “Innovation and science are crucial for technology development and the implementation of best practices for CO2 management. Through this joint test programme, we can achieve much more than if we worked separately,” says project manager Valerie Linton from EPCRC. “The test results and simulations will contribute to the faster and cheaper introduction of CO2 transport. This will be an important step to accelerate the full deployment of CCS,” adds project manager Bente Leinum from DNV GL- Oil & Gas. CO2 pipelines risk running fractures due to phase changes during decompression. This test programme will complete two full-scale fracture tests to validate the numerical models and will: •

develop knowledge that can contribute to CO2 pipelines being dimensioned with less uncertainty than at present, which can reduce pipeline costs

develop simulation models for fractures and the dispersion of emissions, which are important for safety assessments

• develop guidelines and updates to pipeline standards for the design of CO2 pipelines, which are important to the implementation of standardized solutions for effective scaling •

share test results globally, which is important to increase knowledge in industry and research. •

Providence Resources Successfully Defends Transocean’s Part 36 Costs Application


rovidence Resources, the Irish based Oil and Gas Exploration Company, has provided an update regarding the litigation between Providence and Transocean Drilling U.K., a subsidiary of Transocean, relating to the use of the semi-submersible drilling unit, Arctic III, on the Barryroe oilfield offshore Ireland (Providence 80%, Lansdowne Oil & Gas 20%). A hearing of Transocean’s application in respect of Part 36 of the English Civil Procedure Rules was heard by Mr Justice Popplewell in the Commercial Court in London on October 14, 2016. The Commercial Court handed down its Judgment on October 20, 2016. The Judgment states that, as a result of the decision of the Court of Appeal in April 2016, Transocean is entitled to its costs of the first instance proceedings from August 30, 2014 on the Standard Basis (i.e. approx. 70%) but that the other Part 36 cost consequences in relation to obtaining costs on the indemnity basis, interest on costs and the principal sum and the surcharge of £75,000 do not apply. In coming to this conclusion, the judge found that it would be unjust to apply the full Part 36 costs consequences in the circumstances of this case, including his previous criticisms of Transocean’s conduct which he said ‘was not merely unreasonable but dishonest’. Based on the Judgment, Providence will pay Transocean a gross figure of approx. £1.10 million (equivalent to approx. $1.35 million) in respect of all outstanding costs, interest and principal sums, which compares to the estimated gross figure of $3.90 million described in the Company’s Interim Results. Lansdowne, the Company’s joint venture partner in Barryroe (20% interest), is liable for its share of all costs associated with the litigation. Commenting on the announcement, Mr. Tony O’Reilly said: ‘This is a very positive result for Providence, with significantly less cost exposure than had been provided for, justifying our defence of our position. With this matter now behind us, our focus remains on unlocking the value within our extensive asset portfolio offshore Ireland, with a particular emphasis on the farm-out processes for Barryroe and Spanish Point as well as completing our preparations for the drilling of Druid next June. •


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Rosneft and Investment Consortium Led by Trafigura Sign Agreements to Acquire 98% in Essar Oil


ssar Energy Holdings Limited and Oil Bidco (Mauritius) Limited— companies incorporated and managed under the laws of Mauritius— the controlling shareholders of Essar Oil Limited (EOL) have entered into separate definitive agreements for the sale of 98% of EOL. The first sale and purchase agreement envisages the sale of 49% to Petrol Complex Pte. Ltd (a subsidiary of PJSC Rosneft Oil Company); the second envisages the sale of the remaining 49% to Kesani Enterprises Company Limited (owned by a consortium led by Trafigura) at an enterprise valuation of Rs 72,800 crore ($10.9 bn) (the “Transaction”). An additional Rs 13,300 crore ($2 billion) will be paid for the acquisition of Vadinar Port, which has world-class storage and import/export facilities. The business transaction was announced in the august presence of Mr Narendra Modi, Honourable Prime Minister of India, and Mr Vladimir Putin, Honourable President of the Russian Federation, at the BRICS Summit in Goa (India). The all-cash deal encompasses EOL’s 20 million tonne refinery in Gujarat, India, and its pan-India retail outlets. The closing of the Transaction is conditional upon receiving requisite regulatory approvals and other customary conditions. The Parties expect to obtain the relevant approvals before the end of this year. Investing in EOL, which operates one of the world’s most complex refineries and runs India’s largest private sector retail network, gives the new stakeholders a strong foothold in the Indian market that will witness robust demand growth for petroleum products in the long term. The growth for refined petroleum products in the Indian market for the next five years is expected to be in the 5%-7% range. EOL’s value has also been strengthened by the integrated nature of its business and the strategic positioning of its assets. Its 20 million tonne oil refinery in Vadinar, which accounts for 9% of India’s total refining output, is supported by a 1,010 MW captive power plant, and complemented by a network of around 2,700 operating retail outlets. The additional Rs 13,300 crore that the new stakeholders have agreed to pay is for the 58 million tonne deep draft port in Vadinar that helps in importing crude and exporting finished products. 0Rosneft Oil Company is the world’s largest petroleum company with revenues in excess of $80 billion. The Company’s main business activities include exploration & production, refining and product marketing in Russia and across countries in North America, Latin America, Europe, Asia and the Middle East. Trafigura Group is one of the world’s leading independent commodity trading and logistics group of companies with revenues of approximately $100 billion. United Capital Partners (UCP) is a large independent Russian private investment group with investments of over $3.5 billion in various industrial sectors. The Transaction is the single largest tranche of foreign direct investment in India, and re-establishes the image of India as an attractive destination for foreign investments. Earlier in 2007, Essar Group, together with Hutchison Whampoa, brought Vodafone into India through an $11.1-billion transaction. With the current Transaction, this is the second instance that Essar has brought in world leaders in the sector to participate in the India growth story. Essar Group Chairman, Mr Shashi Ruia, said: “It is a historic day for Essar. The transaction demonstrates our unique ability to build world-class assets and create immense value in our businesses. The monetisation of our stake in Essar Oil will help drive the next level of growth for our other businesses.” Mr Prashant Ruia, Director, and Essar, said: “We have once again reinforced our unique expertise in project incubation, execution, value creation and monetisation. We have established world-class assets that have attracted the attention of leading global companies and investors. The deals we have done have led to an FDI infusion of more than $30 billion into India.” Mr Igor Sechin, CEO, Rosneft, said: “This is a significant milestone for

the Company. Rosneft is entering one of the most promising and fastgrowing world markets. At the same time, this project provides unique opportunities for synergies with the existing assets of the Company and is consistent with Rosneft’s enhanced presence in the fast growing markets of other APR countries, such as Indonesia, Vietnam and The Philippines.” Mr Jeremy Weir, Chief Executive Officer of Trafigura, said: “This is an important and exciting investment. Essar Oil occupies a strategic position in the global oil market and owns world-class refining and infrastructure assets that will create multiple synergies with our trading business.” Mr Ilya Sherbovich, Managing Partner of UCP, stated: “We are very pleased to reach an agreement to acquire shares of Essar Oil Limited. This is a top-tier asset operating in the promising Indian market, one of the largest and rapidly developing economies in the world. The announced transaction establishes a strategic partnership between our investment consortium members. Deal participants have extensive operational and financial expertise, which we believe will help to unlock significant value and provide strong financial results for all investors.” •



CGG Reprocessing Perdido Fold Belt Seismic Ahead of Mexico Licensing Round


GG has a wealth of advanced imaging experience and expertise in the Gulf of Mexico on both sides of the border. This track record ranges from the industry’s first wide-azimuth (WAZ) surveys and CGG’s four-year program with Pemex in the deep offshore Mexican Gulf, to its state-of-the-art StagSeis™, full-azimuth, long-offset broadband multi-client surveys conducted over the Garden Banks, Keathley Canyon, Walker Ridge and Green Canyon areas in the US. The deep knowledge of the regional geophysics and geology gained throughout these programs, combined with the continued development of leading processing technology, have brought significant improvements to final image quality to enable increased confidence in the development of prospects.

Aker Solutions to Acquire Majority Stake in Brazil’s C.S.E.


ker Solutions agreed to buy 70 percent of Brazilian C.S.E. Mecânica e Instrumentação Ltda, building on a strategy to expand its services business in key international markets. The agreement includes an option to purchase the remaining 30 percent of the company three years after the expected close of the transaction by the end of the first quarter of 2017. The parties agreed to not disclose the purchase price. The acquisition gives Aker Solutions access to Brazil’s growing market for servicing existing oil and gas fields. C.S.E., which had revenue of BRL 322 million in 2015, provides maintenance, assembly, commissioning and crane operation services at offshore and onshore facilities. “Aker Solutions has established a solid presence and reputation in Brazil’s oil and gas market over the past 40 years and entry into the country’s brownfield segment is an attractive growth opportunity,” said Chief Executive Officer Luis Araujo. “Joining forces with a successful local player like C.S.E. fits well with the internationalization of our services business, allowing us to bring our competence, knowledge and experience within this field to this important and growing region.” C.S.E., whose headquarter is in Pinhais in the Parana state, has 2,300 employees located at sites including five service facilities covering the country’s different oil and gas basins. It has a strong backlog of BRL 855 million and a track record of delivering consistently highquality services to customers including state producer Petrobras. The company’s fabrication shop in Rio das Ostras is located near Aker Solutions’ subsea services facility. To ensure continuity, the owners of C.S.E., Altair Dietrich, the chief executive officer, and Luiz Joanello, the chief commercial officer, will stay on with the company. C.S.E. will remain a separate legal entity with a management team consisting of personnel from each company. “By combining the strengths of both companies we will expand our capabilities and create significant value for our customers,” said Dietrich. “Teaming up with Aker Solutions is a huge step for the company and puts us in the next league in terms of competing for even larger and more complex contracts.” The acquisition is subject to approval by Brazilian competition authorities. Aker Solutions is a global provider of products, systems and services to the oil and gas industry. Its engineering, design and technology bring discoveries into production and maximize recovery. The company has its main office in Oslo, Norway, and employs approximately 13,000 people in about 20 countries •


CGG is now bringing its years of experience in advanced imaging to the Mexican portion of the prolific Perdido fold belt. The aim is to apply the latest technology to resolve the large-scale, complex geological challenges and produce high-quality, intermediate products for the assessment of the blocks available in the upcoming licensing rounds. The Encontrado reprocessing project is a merge of nine existing surveys, acquired with different orientations, straddling the USA/Mexico border. The majority of the data is WAZ but the project also includes some narrow-azimuth surveys. This extensive volume of over 38,000 km2, of which 35,000 km2 is located in Mexican waters, covers some of the most prospective areas of the Gulf of Mexico, including the Great White and Trion discoveries. The goal is to turn the Mexican side of Perdido from a frontier area to a well-understood basin. Three major data volumes will be created: Fast Trax, for regional interpretation and the first correlation between structures in Mexico and the USA in advance of the next lease sale; Early Out, for updating the subsalt exploration portfolio; and Final PSDM for potential prospect evaluation. Despite the vast size of the project, the Fast Trax volume was completed in less than six months, to be ready well in advance of the bidding process, and is available for license now. The key pre-processing step was 3D deghosting to extend the bandwidth and create a single continuous broadband volume. The deghosted data delineate the top of salt with a strong positive impedance peak, resulting in a less ambiguous salt interpretation. Velocity model building for the Fast Trax data volume included several iterations of supra-salt tomography, incorporation of generalized salt geometry definition and velocity re-trending for the shale and sub-salt. The velocity model obtained correlates with regional geological features. The resulting Fast Trax data not only shows a seamless image between the USA and Mexico, with better continuity of the Perdido folds, but also considerable improvement to the imaging of the Mesozoic and basement, increasing the regional understanding. Experience gained while processing the Fast Trax combined with advanced velocity modeling is being employed in order to obtain the best possible final image. Full Waveform Inversion (FWI) was applied over the entire 38,000 km2 survey. Such a regional-scale application of FWI maximizes the value of the Encontrado imaging. The velocity model can be used for geological interpretation as FWI velocities can be an indicator of hydrocarbons and help determine the potential prospectivity of shallow targets. Where the shallow structures are complex, high-resolution velocity models also result in improved images of the underlying sediment and salt. Although new technologies like FWI and deghosting help determine a more precise top of salt, the correct salt geometry can still be ambiguous. In the area where salt tectonics are affected by the regional compressional setting, small changes in the shape of the salt can strongly affect the sub-salt image. Testing different salt scenarios can help make more confident decisions and reduce risk in the assessment of sub-salt targets. To further improve the image of the deep, structurally complex basin, differentiating technologies such as RTM Vector Offset Output (VOO) and Surface Offset Gathers (SOG) will be used for precise salt delineation and sub-salt tomography. •

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Nakilat Concludes Third Quarter with Positive Results


akilat has announced its financial results for the third quarter ended 30 September 2016, where the Company’s net profit reached QR 749 million compared to QR 757 million for the same period last year. The Board of Directors stated that the company’s strategic long-term charters for its LNG vessels and the strong LPG vessels performance have ensured the continuous strong financial profitability despite the current market conditions of fluctuating oil and gas prices and the slowdown in ship repair and building activities. The board also reaffirmed their steadfast commitment to Nakilat’s growth and development strategy, in line with Qatar’s National Vision 2030. Nakilat Managing Director Eng. Abdullah Fadhalah Al Sulaiti said: “Nakilat’s resilient financial performance, despite the current economic climate, is attributed to the prudence and effectiveness of our longterm business strategies. We are actively seeking out new business opportunities to grow our business portfolio and maximize returns for our shareholders.” Al Sulaiti added: “Our joint ventures continue to value-add to our operations, strengthening our ambition to be a global leader and provider of choice for energy transportation and maritime services.” •

Dril-Quip Agrees to Acquire TIW Corporation


ril-Quip, Inc. Today announced that it has entered into an agreement to acquire TIW Corporation, a 100-year old industryleading manufacturer of consumable downhole products for the global oil and gas market, for approximately $143 million, subject to closing adjustments. TIW provides liner hanger systems and related equipment and services worldwide and is based in Houston, Texas. Blake DeBerry, Dril-Quip’s President and Chief Executive Officer, remarked, “We are pleased to include TIW Corporation as part of the Dril-Quip family, and look forward to significantly expanding our product offerings to our customers. TIW has a long history of success as a family-owned company and we intend to preserve that legacy by continuing to reliably serve our customers with our combined teams around the world. TIW is a market leader in the liner hanger business and we are particularly excited about its expandable liner hanger technology that is frequently utilized in deepwater or high pressure/ high temperature environments. “This acquisition will be the first in Dril-Quip’s history and allows us to use our strong balance sheet to increase shareholder value in the longterm. TIW’s products and services fit squarely with and complement our current product offerings. In addition to its offshore market, TIW’s onshore presence, particularly in the Middle East and South America, will provide Dril-Quip with more market opportunities.” Steve Pearce, President of TIW, commented, “I believe this transaction will positively position our business for further expansion. Both TIW and Dril-Quip have a long and proud tradition of innovation and commitment to the oil and gas industry, along with a shared culture of customer service, quality products and continual product development. Dril-Quip’s wider product offering and broader international footprint should allow for long-term growth of our liner hanger business.” TIW is being acquired on a debt-free, cash-free basis and Dril-Quip intends to fund the consideration with cash on hand. Dril-Quip anticipates synergies to be realized from this transaction, primarily driven by cost efficiencies as well as expanded sales opportunities. The transaction is subject to regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur during the fourth quarter of 2016. TIW reached peak revenues of approximately $140 million in 2014. Revenue is expected to trough between $60 million and $70 million in 2016 and is expected to increase to between $80 million and $100 million by 2018. EBITDA margins are expected to be similar to DrilQuip’s margins once synergies are realized. Additional transaction details are available in the Investor section of Dril-Quip’s website at Evercore served as Dril-Quip’s exclusive financial advisor and PPHB served as TIW’s exclusive financial advisor for this transaction. TIW Corporation, founded in 1917, is globally recognized as a leading manufacturer of liner hanger systems, including expandable liner hangers, for both onshore and offshore applications. TIW’s products also include kelly valves, safety valves and a comprehensive line of packers. In addition, TIW provides rental tools and services for the installation of its products and other wellbore construction activities. Dril-Quip is a leading manufacturer of highly engineered offshore drilling and production equipment, which is well suited for use in deepwater, harsh environment and severe service applications. •



Canadian Gas Association Announces Natural Gas Innovation Fund™


he Canadian Gas Association (CGA) today announced the intention to create the Natural Gas Innovation Fund™ (NGIF) to support research, demonstration and deployment of innovation in the natural gas value chain. Investing in innovation in the natural gas sector is essential to create a pathway to greenhouse gas emissions reductions that is both affordable and reliable. Natural gas utilities have a long history of working in partnerships to drive innovation. The Natural Gas Innovation Fund™ will build on that history, bringing utilities, government, academia, incubators, accelerators, and technology developers in the natural gas value chain to support natural gas innovation and reduce emissions, drive energy efficiency, and ensure the availability of affordable energy for customers. A key priority for NGIF will be to find ways to access monies collected from natural gas ratepayers from cap and trade, carbon tax or other emission reduction mechanisms instituted by governments, and direct those monies to the financing of innovation in the use of gas. In this way rate payers will have the levies they pay directed back to them - ensuring the continued availability of clean and affordable energy for their needs. The Natural Gas Innovation Fund™ will consider support for a range of investment opportunities including: Technologies for homes and buildings such as high efficiency water heaters, natural gas heat pumps, micro-combined heat and power (CHP), and condensing roof-top heaters; Technologies to support natural gas use as a clean and affordable alternative transportation fuel such as high horsepower engines for on and off road transportation, and home refueling compressed natural gas kits

Technologies that help reduce the emission profile of gas use such as renewable natural gas (RNG), power-to-gas systems (integrating gas and electric renewables), and smart CO2 recovery and use technologies; and Liquefied Natural Gas (LNG) technology applications such as small scale LNG production for remote community and industrial energy needs as a substitute for higher-emitting and more costly alternatives. CGA is the voice of Canada’s natural gas distribution industry and its members are distribution companies, transmission companies, equipment manufacturers and other service providers. Natural gas has a central place in Canada’s energy mix meeting over 30 per cent of the country’s energy needs. Today over 6.7 million customers representing well over 20 million Canadians rely on natural gas for heat and power in homes, apartments, buildings, businesses, hospitals and schools. “CGA has made innovation a key focus for the last 6 years with initiatives and investments around the use of our fuel and our infrastructure. Natural gas is an affordable, clean, safe, and reliable energy choice for Canadian consumers and investments made through this fund will build on the value proposition of that choice.” •

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Independent Oil, Gas Producers: Combined Onshore Regulations Will Increase Costs on Our Businesses


ndependent Petroleum Association of America (IPAA) said it is reviewing the final onshore rulemakings issued today by the Bureau of Land Management (BLM) and reiterated producers’ serious concerns that the BLM’s inflexible regulations will lead to significant cost increases and threaten America’s energy self-sufficiency. “We are carefully reviewing today’s final rule regulating onshore oil and gas operations on federal lands. We are, however, displeased that three BLM regulations are, in essence, going into effect at the exact same time. We believe the collective costs that these three regulations will impose on America’s small businesses and job-creators have not accurately been taken into consideration. Releasing these final regulations all at once in the waning months of this administration’s term is both disingenuous and careless policymaking,” said Dan Naatz, IPAA’s senior vice president of government relations and political affairs. “While we understand the need for modernizing some of these rules, the federal government’s rulemaking approach has been inherently prescriptive. It would lock in costly technologies that will likely become obsolete in a few short years, while the industry continues to advance and technology improves. The White House regulatory affairs office should immediately retract these three regulations, conduct further review on the inflexibility and the comprehensive costs of these rules, and collaborate with industry stakeholders in developing sensible, performance-based rules that are workable for both industry and government regulators.” America’s independent producers account for over 90 percent of oil and natural gas wells drilled in the United States, support more than 200,000 American jobs, and send more than $10 billion in additional revenue to the U.S. Treasury each year through royalties and other payments. However, additional layers of costly regulations and bureaucratic red tape are making it increasingly difficult for independent producers, small businesses with an average of 15 employees, to continue responsibly developing America’s abundant oil and natural gas resources – threatening the very jobs, national energy security, and royalty revenues that these businesses seek to generate. On behalf of its member companies and their technical teams, IPAA submitted comments in October 2015 on Onshore Order 3 and in

December 2015 on Onshore Order 4 and Onshore Order 5. IPAA also submitted supplemental comments in December 2015 on Onshore Order 3 after the public comment period was extended. IPAA and its member companies were never invited by federal regulators to discuss or work towards solutions to their concerns before these three rules were finalized. The Independent Petroleum Association of America (IPAA) is a national upstream trade association representing thousands of independent oil and natural gas producers and service companies across the United States. Independent producers develop 90 percent of the nation’s oil and natural gas wells. These companies account for 54 percent of America’s oil production, 85 percent of its natural gas production, and support over 2.1 million American jobs. •

Shell Divests Non-Core Shale Acreage in Western Canada for Total Consideration of US$1 Billion


oyal Dutch Shell plc, through its affiliate Shell Canada Energy (“Shell”) today announced it has agreed to sell approximately 206,000 net acres of non-core oil and gas properties in Western Canada to Tourmaline Oil Corp. for a total consideration of approximately US$1,037 million (C$1,369 million). The consideration is comprised of US$758 million in cash and Tourmaline shares valued at US$279 million. Subject to regulatory approvals the transaction is expected to close in the fourth quarter of 2016. The acreage includes 61,000 net acres in the Gundy area of Northeast British Columbia, Canada, and 145,000 net acres in the Deep Basin area of West Central Alberta, Canada. The assets are a combination of developed and undeveloped lands, along with related infrastructure, producing 24,850 barrels of oil equivalent per day (boe/d) of dry gas and liquids. “Shell retains a significant shale position in Canada and we are actively working to mature our attractive core asset base in the Montney and Duvernay, At the same time we are strengthening our shales business and creating shareholder value by selling assets that do not fit our near-term development plans.” Shell has a large shales portfolio focused on North America and Argentina, and is currently maturing this portfolio as a growth option for beyond 2020 with material value and substantial long-term potential. •



Qatar to Build on over 2,500 LNG Deliveries to Japan


atar Petroleum President & CEO, and Chairman of Qatargas, Saad Sherida Al-Kaabi concluded a working visit to Japan, during which he held talks with major Japanese energy companies on enhancing existing cooperation. Mr. Al-Kaabi was accompanied on the visit and talks by a delegation comprising a number of senior QP and QG officials. Talks and discussions during the two-day visit focused on ways of boosting future cooperation between Japanese customers and partner companies, particularly in the LNG trade. Meetings were also held with financial institutions such as Bank of Tokyo – Mitsubishi UFJ and Japan Bank for International Cooperation, utility companies such as Tokyo Electric (TEPCO), Kansai Electric, and Tohoku Electric; and other major shipping lines such as NYK Line, MOL, K Line and Iino. Mr. Saad Sherida Al-Kaabi also took part in the annual reception hosted by Qatargas for its Japanese partners and customers, which was attended by hundreds of guests including the ambassador of the State of Qatar to Japan, members of the Arab and international diplomatic corps, the Mayor of Tokyo, government officials, and senior executives from the energy and banking sectors, as well as a number of Qatari students in in Japan.

Solo Oil Provides Update on Ntorya Appraisal Well


olo is pleased to announce that the site preparations for the Ntorya-2 appraisal well have now been completed and that mobilisation of the Caroil#2 rig from the Ntorya-1 wellsite is now underway. The Ntorya-2 pad is located approximately 1.5 kilometres to the southwest of the Ntorya-1 well. The rig and associated equipment are being transported to the new site, will be rigged up and tested, and will then undergo any maintenance required before being taken on under the contract reported on 23 September 2016. The majority of other well services have also now been contracted. Solo therefore estimates that the Ntorya-2 appraisal well is likely to spud in December 2016. Solo holds a 25% interest in the Ruvuma Petroleum Sharing Agreement (“Ruvuma PSA”) which contains the Ntorya gas condensate discovery made in 2012 with the Ntorya-1 well which was tested at a rate of 20.1 million feet per day of gas (“mmscfd”) and 139 barrels per day of condensate from a 3.5 metre interval at the top of a 20 metre Cretaceous sandstone pay zone at a depth of approximately 2,600 feet. The Ntorya-1 well has been credited in an independent report by Senergy (GB) Limited with gross 153 billion cubic feet (“bcf ”) of gas in place, of which 70 bcf are considered gross best estimate contingent resources. A further gross best estimate of undiscovered gas in place of over 1 trillion cubic feet is attributed to the Ntorya Prospect as a whole and is the target of the Ntorya-2 well which is being drilled updip and in a thicker part of the sand body interpreted on the 2014 seismic data acquired to facilitate appraisal. The Ntorya discovery lies just 20 kilometres from the 36-inch Mtwara to Dar es Salaam gas pipeline which was commissioned in late 2015 and is transporting produced gas from various fields, including the Kiliwani North Field where Solo holds a 7.125% interest, to gas markets in the north of Tanzania. Neil Ritson, Solo’s Chairman, commented; “Advancing the Ntorya appraisal and its commercialisation is now a key objective for Solo and we are pleased that rig mobilisation is now underway. The discovery of gas in high quality Cretaceous sandstone reservoirs in the onshore portion of the Ruvuma Basin represents very significant value and we look forward to confirmation of the spud date in due course.” The Ruvuma PSA is operated by Aminex plc who hold the remaining 75% working interest. •


Speaking at the reception, Mr. Al-Kaabi said, “1997 was the beginning of our historic journey in Japan with Chubu Electric and the seven founding Japanese buyers. The friendship and commitment of Qatar Petroleum and Qatargas towards our partners remain just as strong as it was then – if not stronger. I am proud to announce that we have successfully delivered more than 2,500 cargoes to our esteemed Japanese LNG buyers. This achievement could not have been possible without the confidence of our customers and the cooperation of all our partners in Japan.” “For us in Qatar, we have watched the volatility that has characterized the energy market in the past two years. And, throughout this time, we have never lost sight of the need to maintain and enhance our longstanding relationships with our valued customers and partners,” Mr. Al-Kaabi added. Concluding his remarks, Mr. Al-Kaabi expressed gratitude to all Qatar’s business partners in Japan for their continued support and friendship, stressing that “Qatar places great value on its relationship with its clients in Japan, and we will work towards better and stronger relations”. •

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Cooper Energy and Santos Sign Third Gas Sales Agreement for Sole Gas Project


ooper Energy has signed a binding gas sales agreement with Alinta Energy for the supply of gas from the Sole gas field of up to 2 PJ per annum for a minimum of 5 years with provision for a 3 year extension, subject to the parties’ agreement. The agreement is conditional upon certain conditions precedent, including an affirmative final investment decision (FID) for Sole. Supply under the contract is planned to commence in 2019. Cooper Energy now has a total of 77 PJ under binding gas sales agreements, which is 64% of its 121 PJ equity share of the Sole 2C Contingent Resources of 241 PJ1. On an annual basis, Cooper Energy has contracted 9.6 PJ of its 12.5 PJ share of the first 8 years’ production anticipated from the field. The Alinta Energy agreement is the third supply agreement announced by Cooper Energy in the past 14 months with the other sales agreements held with O-I Australia and AGL Energy. ‘We are very pleased to add Alinta Energy to our portfolio of gas supply customers’ said Cooper Energy Managing Director, David Maxwell. ‘Our gas marketing strategy has always been directed to establishing a portfolio of blue-chip customers from the energy retail and industrial sector. ‘Securing a base load of quality contracts is a foundation for the final investment decision. The support shown for the Sole gas project from major energy retailers and industrial buyers has been substantive and demonstrates a commitment to the development of a broader and more diverse supply base for south east Australia gas users’ said Mr Maxwell. Alinta Energy’s Chief Executive Officer, Jeff Dimery said ‘We are delighted to have forged this new relationship with Cooper Energy through this agreement. As a growing east coast energy retailer having access to competitively priced gas into the future allows us to deliver on Alinta’s mission which is to make energy more affordable for our customers.’ Mr Maxwell said that Sole was continuing to attract strong interest. ‘A key element of the Sole final investment decision is the optimisation of funding and equity levels for Cooper Energy shareholders and prudent project financing. This latest contract, and the ongoing interest in Sole, is highly encouraging for our shareholders’ he said. Cooper Energy holds a 50% interest in the Sole gas field and the Orbost Gas Plant, from which the gas will be supplied to Alinta Energy, with the balance being held by Santos. The Sole gas field is located in VIC/RL3, offshore Victoria approx. 62 kms from the Orbost Gas Plant, onshore Victoria. •

Quadrant Energy Reports Successful Well Test at Roc-2 in the Bedout Basin, Offshore Australia Quadrant Energy has confirmed a successful well test from the Roc-2 well, 165 km north of Port Hedland in the Bedout Basin. Roc-2 flow tested at a maximum (equipment constrained) rate of 51.2 million standard cubic feet (scf) per day of gas and 2943 barrels of condensate per day, from a 25 metre thick perforated interval at 4,400 metres below sea level. The successful test result highlights the prospectivity of the Bedout basin. Since farming into the area in 2012, the Quadrant Energy-led joint venture has achieved a 100% success rate in three exploration wells – Phoenix South-1, Roc-1 and now Roc-2. fwa3970_bedout_simp_loc_map_644These results show significant potential in this largely unexplored area situated in relatively shallow water. Quadrant Energy is the Operator and holds between 70- 80% interest over four (4) permits totaling more than 21,000 square kilometres (km2). The Roc-2 result provides Quadrant Energy the opportunity to evaluate a range of development options given the close proximity to major resource projects. Quadrant Energy is continuing to obtain high quality data to thoroughly evaluate these options in a measured approach. Today’s announcement adds to Quadrant Energy’s recent exploration success during the year at Davis-1, Outtrim-East-1 and Spartan-1, highlighting Quadrant Energy’s offshore exploration capability and strong acreage position. •



A Guarantee of Reduction in FPSO Insurance Claims? Yes. Oil and Gas Innovation gets expert analysis from Subsea Energy Solutions (UK) on various subsea technologies, but particularly their SUBFLEX™ Cable Protection System, which drastically reduces risk exposure in FPSO cable, umbilical and risers systems. This vertebrae like technology is discussed in detail.


ubsea Energy Solutions (UK) are proud to service the global industries of Oil & Gas, Offshore Wind, Wave, Tidal & River Energy while also servicing the Ministry Of Defence (MOD). We are an FPAL registared and ISO 9001: 2015 certified company and work to the requirements of ISO 14001 & ISO 18001 which means that you can be assured of our commitment to high quality products and services. Our unique one-stop-shop provides project management, innovative design, in-house manufacturing, equipment assembly, load & pressure testing and onshore / offshore commissioning. We are able to provide everything from stock items to bespoke topside and subsea equipment and offer complete design services and innovative solutions. Subsea Energy Solutions in-house services include polyurethane and buoyancy processing, machining and fabrication (coded welders), load and pressure testing services, onshore and offshore commissioning, combined with ongoing servicing and

SUBFLEX™ cable protection system.

maintenance programmes. Our senior management together have over 100 years of experience within the oil & gas and renewable energy sectors and our

Subsea Energy Solutions in North East England. maintenance innovative, flexible and fast paced team will endeavour to meet any project and schedule demands by drawing upon the wide range of in-house experience and in-house services. Our mission is to consistently deliver on schedule and on budget allowing us to meet and exceed clients by providing an unrivalled service and purchasing experience. At Subsea Energy Solutions, service & quality is never an accident, it is always the result of intelligent effort. SUBFLEX™ Dynamic Vertebrae Bend Restrictor (D-VBR) - The Innovative Product Subsea Energy Solutions have patented a Dynamic Vertebrae Bend Restrictor (D-VBR) known as SUBFLEX™ for installation underneath FPSO hulls. We sought industry advice during the development of SUBFLEX™ and taken into consideration numerous requirements such as purchase cost, rapid offshore assembly,


SUBFLEX™ is the future of cable, umbilical and riser protection

rapid installation, elimination of maintenance requirements and standardisation of components, to name a brief selection of features.

“One-stop-shop”, dynamic, flexible and fast paced company.

SUBFLEX™ provides significantly increased levels of bending, shear and fatigue protection to tied-in / connected-up, cables, umbilical’s and risers, against highly dynamic sea-state environments underneath FPSO hulls. SUBFLEX™ increases the design life of cables, umbilicals and risers, hence saving significant time, cost and resources, procuring and installing replacement cables, umbilicals and risers. Opposite to the function of Static Vertebrae Bend Restrictors (S-VBR), SUBFLEX™ requires an applied load / force to achieve product deflection. SUBFLEX™ provides stiffness, stiction and resistance against applied loads / forces, therefore providing enhanced protection to the FPSO’s subsea assets. SUBFLEX™ load / force resistance value can be easily adjusted. Clients can select identical (homogeneous) elements or similar (nonhomogeneous) elements throughout the assembly, therefore designing the product to specifically suit the dynamic sea state condition underneath any specific FPSO hull. SUBFLEX™ offers standard assembly length of approx. 6 mtrs, bending moments in excess of > 500 kNm (50 Te / mtr) and shear capacity in excess of > 500 kN (50 Te). 03-off SUBFLEX™ systems have now been supplied to an International Oil Company and successfully installed underneath the clients FPSO. Upon request, we can provide a Vendor Photos taken underneath FPSO.

Recognitions Statement (VRC) for the above mentioned completed scope of work.

towards the cost reduction of FPSO operation and maintenance.

Subsea Energy Solutions’ SUBFLEX™ product is the future of cable, umbilical and risers protection in free-span and dynamic environments and can significantly contribute

FPSO’s are a high cost / high insurance claim theatre and the quantity and nature of claims are well documented by FPSO owner / operators relating to the repair and replacement of cables, umbilical and risers. Past projects have encountered issues due to the difference between theoretical analysis and practical performance, leading to fatigue, failure, production slowdown and ultimately shutdown. There has never been a greater, more important time for the FPSO community to come together and lend support to a fully coordinated, fully standardised approach for FPSO topside, waterline and subsea production protection solutions. SUBFLEX™ guarantee’s a reduction of FPSO insurance claims and a reduction of FPSO operation & maintenance costs. Article continues on the next page.. Photos taken underneath FPSO.



Ease of Installation, Long Lasting Protection! SUBFENDTM Hose & Flange Protection - The Innovative Product This solution is used to protect the flange assembly from corrosion and snagging, present at the point of two adjoining export hoses, our hose and flange protection solutions comprise of two moulded halves, secured together by the means of duplex fastenings and or strapping. Constructed from Subthane™ Polyurethane, our hose and flange protectors provide a highly durable impact resistant protector, unaffected by the long term exposure to sea water. Subsea Energy Solutions (UK) have designed and supplied hose & flange protections systems known as SUBFENDTM for installation onto large diameter flexible import / export hoses installed on the port or starboard sides of
VLCC’s (Very Large Crude Carrier’s) or FPSO’s (Floating Protection Storage & Offloading). SUBFENDTM hose and flange protection should be used to protect the flange assembly (the location of two adjoining flexible hoses) from corrosion and snagging and to provide impact protection against hull strikes leading to hull damage and hull corrosion. SUBFENDTM hose and flange protection comprises of two molded halves secured together by the means of anti-corrosive fasteners and high tensile strapping. SUBFENDTM hose and flange protection is constructed from SUBTHANETM Polyurethane and provide a highly durable impact resistant protector, unaffected by the long term exposure to sea water. Pre and post installation.

SUBFENDTM hose and flange protction. There has never been a greater, more important time for the FPSO community to

come together and lend support to a fully coordinated, fully standardized approach for FPSO topside, waterline and subsea production protection solutions. SUBFENDTM guarantee’s a reduction of FPSO insurance claims and a reduction of FPSO operation & maintenance costs. At Subsea Energy Solutions, service & quality is never an accident, it is always the result of intelligent effort. Please contact Subsea Energy Solutions (UK) to request further information, the company brochure or to directly discuss your projects requirements.

Subsea Energy Solutions (UK) Contact: Philip A.R Stanyon Mobile: +44 (0) 7738 726994 E-mail: Web:


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OMV Petrom to Transfer 19 Onshore Oil Fields in Romania to Mazarine Energy OMV Petrom S.A. (OMV Petrom), the largest oil and gas producer in South-Eastern Europe and Mazarine Energy Romania S.R.L., a fully owned Romanian subsidiary of Mazarine Energy B.V. (Mazarine Energy) announce that parties have reached agreement on the transfer of 19 onshore oil fields plus three workover rigs and associated crews (together, the “Transaction”) to Mazarine Energy Romania S.R.L. for an undisclosed purchase price. The transfer of the licenses is being done according to all rights and obligations arising from the Petroleum Law and other related regulations. The transfer is subject to approval by the relevant authorities.


ompletion for the Transaction is expected in late Q4 2016, when Mazarine Energy Romania will assume operatorship of the Fields and employment of over 200 staff currently employed by OMV Petrom. Mazarine has identified a number of production optimization and workover opportunities that will grow production. In addition, seismic acquisition campaigns are scheduled to identify undrilled structures. The 19 fields are part of a package which has been available for transfer since 2014 as part of field portfolio optimization. In 2015, the 19 fields had a cumulated daily production of approximately 1,000 boe/d (representing less than 1% of OMV Petrom daily production). Capital for the Transaction will come from the US$500 million equity line provided by Carlyle International Energy Partners, a US$2.5 billion fund that invests in global oil and gas exploration and production, mid- and downstream, oil field services and refining and marketing in Europe, Africa, Latin America and Asia. Peter Zeilinger, member of the board of OMV Petrom, responsible for Upstream activities: “Within the current crude context, we strive to increase our efficiency and deliver higher value. This includes portfolio optimization which allows us to simplify operations and focus on delivering enhanced profitability from the remaining portfolio.” Edward van Kersbergen, Founder and CEO of Mazarine Energy, said: “We are pleased to have agreed this investment as we continue to execute our strategy of focusing on lowcost, low-risk onshore assets and adding value through expert reservoir management and cost-effective operations. We welcome our new staff and look forward to jointly further developing these fields.” Marcel van Poecke, Head of Carlyle International Energy Partners, added: “Edward and the team are continuing to deliver on their strategy of growth for Mazarine Energy through investment in high-quality assets, and we are excited to continue supporting the company with its expansion plans.” OMV Petrom is the largest integrated oil and


gas group in Southeastern Europe, with an annual oil and gas production of approximately 65 mn boe in 2015. The Group has a refining capacity of 4.5 mn tons / year and operates an 860 MW high efficiency power plant and a 45 MW wind park. The group is present on the oil products retail markets in Romania and neighbouring countries through 784 filling. Starting 2007, OMV Petrom has integrated the principles of corporate responsibility into its business strategy. In this period, the company has allocated more than EUR 40 mn for the development of communities in Romania, focusing on environmental protection, education, health and local development.

Mazarine Energy is a private oil and gas exploration and production company focusing on low risk, near-term, conventional exploration, development and production opportunities in Europe, Africa and the broader Mediterranean region. Headquartered in The Hague, the company is currently active in North Africa, with a majority operating interest in the Zaafrane license in central Tunisia, where two exploration wells were drilled close to existing infrastructure. Both discovered hydrocarbons and were successfully tested at commercial rates. Mazarine Energy is actively reviewing additional opportunities in Europe and North Africa. •



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GC Rieber Shipping and Rasmussengruppen Establish Jointly Owned Geophysical Company GC Rieber Shipping ASA has signed an agreement with RASMUSSENGRUPPEN AS to establish a new, jointly owned marine geophysical company called Shearwater GeoServices AS. Shearwater GeoServices will become an integrated provider of marine geophysical services to oil and gas and multi-client companies worldwide. Starting out with a fleet of four modern, high capacity seismic vessels, Shearwater’s core strategy will be to provide high quality marine geophysical services and utilize the company’s position as the most cost-efficient company in the industry. “Over a period of time, we have examined opportunities to establish a new geophysical company, based on the four high-end vessels we currently own. In Rasmussengruppen, we have found a partner who shares our view of the opportunities offered by the geophysical market at present, and, equally important, who shares our vision to build and develop Shearwater into a leading player in the industry”, said Irene Waage Basili, CEO of GC Rieber Shipping. Rasmussengruppen has extensive experience from investing in maritime industries and oil services over several decades. Dag Rasmussen, Group CEO, sees interesting opportunities for the new company: «Shearwater is set up from the start with a modern and cost-efficient fleet, an experienced organization, and a solid financial platform. Supported by GC Rieber’s extensive industry experience, we believe Shearwater will have a unique position in the market that can also consider further strategic opportunities”, commented Dag Rasmussen. GC Rieber Shipping and Rasmussengruppen will own the company 50/50. Shearwater will take over the four high-capacity seismic vessels; Polar Empress, Polar Duke, Polar Duchess, and Polar Marquis and the partners will also inject USD 60 million in equity in the form of cash. Terms have been renegotiated with the lending banks for the four vessels. The new terms include a 75% reduction in installments compared to the original repayment profile until June 2019 and an extension of the term of the loans until year end 2022. Shearwater has also agreed on the main terms to purchase the seismic equipment (including streamers) and the operative entity, Dolphin Geophysical UK Ltd., which includes the processing business from the former lending banks of Dolphin Geophysical ASA. Shearwater will receive technical and crewing support from GC Rieber Shipping with regards to marine operations. Shearwater’s own organization is being established, in part on former Dolphin Geophysical staff and in part on new hires, and will be capable of offering customers with fully integrated geophysical


services and operations from the start. Shearwater’s strong asset base and competent core organisation constitute an attractive platform for further growth. With a conservative capital structure, a costefficient fleet and the strategic ownership of Rasmussengruppen and GC Rieber Shipping, Shearwater is in a position to develop further and attract new competencies as the company grows and capacity is re-activated. The agreement between GC Rieber Shipping and Rasmussengruppen is conditional upon final loan documentation with the lending banks in line with agreed term sheets, as well as entering into final sales and purchase agreements for the seismic equipment.

Closing of the transaction is expected to be in place during fourth quarter of 2016. “Together with Rasmussengruppen, we are excited about the establishment of Shearwater which we believe is uniquely rigged to take advantage of the opportunities which we see in this space going forward. This is will be the first step on an exciting journey for our motivated employees, as well as for us as owners”, said Irene Waage Basili. An analyst and investor presentation will be held today at 10.30 CET at Carnegie, Grundingen 2, 5th floor, Aker Brygge, Oslo. Carnegie has been financial advisor to GC Rieber Shipping and Shearwater in connection with the transaction. •


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Implementing the Lean Model in R&D Delivers Customer-Centric Results Faster Metso has been utilizing a Lean management model in production for a long time already. We now wanted to take what we have learnt on the factory floor and implement a similar efficient way of working into the office environment. With the design process of the Neles NDX® intelligent valve controller, we were able to successfully apply Lean methodology to R&D. The result was a new product ready for market a staggering year and a half faster than projected. etso has long been a benchmark in the use of Lean processes in production. The company wanted to take what they had learned on the factory floor and implement a similar efficient way of working into the office environment as well. Know what your customer needs “To successfully apply the Lean approach to an R&D project requires discipline and an open mind towards cooperative working. You need to set clear goals and a steady marching pace,” explains Kalle Suurpää, Director, Neles smart products, Flow Control, Metso. “The idea is not just to have some product out to market faster, but rather to reduce the customers’ waiting time for a solution that they have found a need for. Asking the customer about their needs should always be the first step in product development.” The development of the NDX valve controller was the first project to truly adopt the Lean approach in R&D at Metso. “Based on input gathered through interviews and feedback brought to the table by our sales force, there was a clear picture of the type of product we wanted to see at the end of the project. In


addition to savings, which is something that everyone is looking for, the customer input steered us towards developing solutions that made installation, commissioning and use easier and more intuitive than ever before – Regardless of the type or manufacturer of the valve being used.” Picking up the pace is a team effort The Lean approach brought along numerous changes in the way the R&D team worked. The active involvement, cooperation and open dialogue between all departments, from mechanics and software to external partners, sales staff and customers, gave a new sense of purpose to everyone. It helped emphasize the big picture and ultimate goal throughout the process. The newly introduced 3-week sprint cycles helped maintain momentum across the board and showcase the progress made in the regular stake holder review meetings . New visual tools for project management also provide a constant and up-to-date overview of the project status. Changing your approach to the product development process is no easy task. Not only do processes need to be changed. Also

“We took the customer input, and re-imagined the valve controller to make it easier, safer and more reliable than ever before.”


attitudes must be adjusted. For people who take pride in their attention to detail and are used to delivering perfection, it was not easy to bring an unfinished work in progress to the table for everyone to see on a regular basis. But the weekly team meetings and stakeholder meetings held after each threeweek sprint cycle provided the opportunity to make corrective moves and take fine-tuning actions on the go. Setting a limited number of achievable goals over a shorter time rather than trying to push along tens of different tasks simultaneously also proved to be a motivating way of working. .

Finding the right tools for the trade

Metso team.

Kalle Suurpää reminds us that making changes in an important function, such as R&D, should not be taken lightly. “Positive change can only be achieved by first knowing what needs to be changed. It’s pointless to force a change in the way of working to suit a particular new tool. It should be the exact opposite way around. Only when you know what you need to achieve can you identify or develop the tools to bring about that desired change.” One example of these new tools has been the new highly visual digital project management platforms taken into use. The design team went from post-it notes on the wall, which was working well for them, to digital solution with the added benefit of security and remote access. In addition to existing in the digital realm, their project board is still physically present in the project room, on a large touchscreen giving them that same tactile and rewarding feeling of moving tasks from “in-progress” to “finished”. Also, everyone in the room still has the opportunity to see the whole project status at a glance.

To successfully apply the Lean approach to an R&D project requires discipline and an open mind towards cooperative working.

Kalle Pokki, Metso’s Chief Engineer, Firmware, told us that extensive testing was another function that was taking up a lot of time and pushing back completion dates in the past. “We wanted to develop our automatic testing capabilities to allow us to concentrate on more creative problem solving tasks and speed up the product development process,” Mr. Pokki explains. “We can now run numerous parallel tests and simulations overnight and start analysing the findings first thing in the morning.” These developments in the degree of automation utilized in product

The Neles NDX valve controller.

testing ended up being one of the major contributors to the reduced time-to-market. The lean NDX project – Performance perfected The all-new Neles NDX valve controller promises to deliver performance perfected. “It is a bold statement, but one we can proudly stand behind.” Kalle Suurpää sums things up by saying, “It is a product that has been designed based on exactly what our customers have asked for combined with over 50 years of in-house experience. We took the customer input, and re-imagined the valve controller to make it easier, safer and more reliable than ever before. We achieved the goals we set in terms of an improved overall user experience that ranges from new easy-to-understand visual installation instructions to advanced functions that not only sound alarms, but also suggest appropriate corrective actions.” In the process, the R&D team at Metso has also perfected their design process and made the Lean approach the new standard in R&D. • Contact details for Metso below:

Metso More information: Kalle Suurpää +358 50 483 7680


Gastar Announces Oklahoma Development Agreement and NonCore Canadian County Property Sale Gastar Exploration Inc. announced that it has executed a definitive agreement with a large private global investment fund (“Investor”) to jointly develop up to 60 Gastar operated wells in the STACK Play in Kingfisher County, Oklahoma (“Development Agreement”). The drilling program (“Drilling Program”) will target the Meramec and Osage formations within the Mississippi Lime on a contract area within three townships covering approximately 18,000 undeveloped net mineral acres under leases held by Gastar. Gastar will be the operator of all wells jointly developed under the Development Agreement.


nder the Development Agreement, the Investor will fund 90% of Gastar’s working interest portion of drilling and completion costs to initially earn 80% of Gastar’s working interest in each new well (in each case, proportionately reduced by other participating working interests in the well). As a result, Gastar will pay 10% of its working interest portion of such costs for 20% of its original working interest in the well. The proposed Drilling Program wells will be mutually developed in three tranches of 20 wells each. The locations of the first 20 wells have been mutually agreed upon with 18 wells targeting the Meramec formation and two wells targeting the Osage formation. The locations of the second tranche of 20 Drilling Program wells will be at the election of the Investor and the third tranche of 20 wells will require mutual consent. With respect to each 20 well tranche, when the Investor has achieved an aggregate 15% internal rate of return (“IRR”) for its investment in the tranche, its interest will be reduced from 80% to 40% of Gastar’s original working interest and Gastar’s working interest increases from 20% to 60% of Gastar’s original working interest. When a tranche IRR of 20% is achieved by the Investor, its working interest decreases to 10% and Gastar’s working interest increases to 90% of the working interest originally owned by it. The parties to the Development Agreement can mutually agree to expand the Drilling Program’s contract area and formation focus. Key highlights of the Development Agreement are: Enhances Gastar’s ability to hold acreage by production, reducing future lease renewal costs; Increased drilling activity allows for more rapid delineation of Gastar’s STACK acreage; Investor earns only an interest in the well bores drilled under the Drilling Program, with Gastar retaining all operational control and right to keep offset formation locations at its full original working interest. Gastar may book offsetting proved undeveloped locations at full original working interest; and Gastar’s 10% carried working interest and projected future reversionary interests will increase production and cash flow while reducing capital requirements.


J. Russell Porter, Gastar’s President and CEO, commented, “This Development Agreement greatly expands our ability to delineate and hold our acreage in the STACK Play without putting undue pressure on our balance sheet or requiring equity issuances in the current market. The structure of this Drilling Program, which allows us to revert to 90% of Gastar’s original interest after our partner receives a 20% return, reflects our confidence in the quality of our acreage. We will also benefit from information garnered from the Drilling Program to develop future offset locations for our own interest. We have already commenced drilling five of the initial 20 wells that will be included in the first tranche of the Drilling Program. We also plan to continue to drill and complete wells apart from the Development Agreement on acreage outside of the contract area as we further explore and develop our Oklahoma acreage.” Canadian County Property Sale Gastar has entered into a purchase and sale agreement to sell certain non-core leasehold interests primarily in northeast Canadian County and also in southeast Kingfisher County, Oklahoma to a private third party for approximately $71.0 million (of which up to $10 million is contingent upon the satisfaction of certain conditions), subject to certain adjustments. The transaction is expected to close on or before November 18, 2016, with a property sale effective date of August 1, 2016. “The sale of these assets will allow us to focus on and accelerate our core STACK delineation program in northern Kingfisher and southern Garfield Counties, Oklahoma, while significantly enhancing our liquidity position,” said J. Russell Porter, Gastar’s President and CEO.. “Assuming completion of this transaction, our June 30, 2016 pro forma Mid-Continent area net acreage would be approximately 83,200 net surface acres, including acreage dedicated under our Development Agreement, with approximately 1,031 net STACK locations.” “Upon closing of this sale, we expect to have ample liquidity to support our capital expenditure plans for the remainder of 2016 and 2017. On a pro forma basis as of

September 30, 2016, and after payment of 20% of the Canadian County net sales proceeds to reduce revolving credit facility debt, Gastar would have a cash position of approximately $102.4 million.” The sales price includes allocated value for 19,100 net acres and current production of approximately 181 barrels of oil equivalent per day from 25 gross (11.2 net) wells, of which 32% is oil. The closing of the proposed property sale is subject to the satisfaction of customary closing conditions. Revolving Credit Facility Amendment Effective October 14, 2016, Gastar entered into an amendment to its revolving credit facility. Key amendment terms include: Borrowing base reaffirmed at $100.0 million (the current amount outstanding under the facility) with next redetermination scheduled for November 2016; Revolver debt balance to be reduced by 20% of any future net sales proceeds from the sale of the Company’s South STACK acreage primarily located in Canadian County, Oklahoma; Minimum interest coverage ratio reduced to 0.8 to 1.0 for fourth quarter 2016 and first quarter 2017, 1.0 to 1.0 for second quarter 2017 and 2.50 to 1.0 thereafter, each as determined using adjusted EBITDA for previous four quarters; and Modifies provisions related to lien and asset dispositions to accommodate the Drilling Program. •


Safeguarding Seafarers Worldwide English based company Guardian Maritime limited has developed quite an ingenious and cost effective solution which is arguably more successful than the much-used razor wire in preventing pirates from being able to set foot on deck. And what’s more, unlike razor wire, it doesn’t have to be taken down upon arrival at each port. uardian - the most innovative anti-piracy measure to be introduced to the shipping world for many years. Designed for ease of installation and effective at preventing access to the decks of ships, Guardian is rapidly replacing razor wire with many blue chip shipping companies worldwide. Guardian has to date prevented the capture of many seafarers saving them from months of misery & torture at the hands of the pirates. Produced in three different locations across the globe from a specifically designed compound which forms a high density rigid barrier with extreme UV protection, it will outlast razor wire by 5 years saving time money and ensuring crew safety and owners peace of mind. Guardian, BMP4 compliant, is the most effective replacement for razor wire and will fit any size or shape of ship, easily covering awkward railings, chocks and fairleads allowing for speedy and safe removal. No more crews covered in a multitude of cuts from razor wire risking infections and costs in time and money to the ship managers, whilst saving thousands of man hours installing and removing razor wire.

Guardian anti-intrusion barrier in essence, prevents pirates from boarding a vessel as its size and ‘P’ shaped design prevents ladders or ropes latching on to the ship’s safety rails, and the overhang that is created is nigh-on impossible to clamber over. “We believe that Guardian offers possibly one of the best value for money anti-piracy systems around today,” states Guardian Maritime ltd, Director Teresa Stevens who continued by explaining how the idea for the system materialised. “We had been working in the anti-piracy field for two years with another concept which David (her husband and CEO of GM LTD) had invented, which involved getting all the crew to a citadel and controlling the ship from there. But the feedback we were getting from the ship owners and CSO’s was that they wanted something to prevent the pirates accessing the ship’s deck. “We were simply sat talking in November 2011 about different ways of preventing the ladders and grappling hooks from gaining purchase, and I had the idea of slotting a large plastic ‘P’ over the rails, we then worked on the shape and size and spent the next six months working with roto-moulders in the UK and Ireland to find the absolute best compound for Guardian covering chocks.

the job to ensure the longevity of the product plus colour fastness.” The interlocking pieces of Guardian are manufactured in the UK, Ireland and South Africa in 1,000mm wide sections and are extremely quick to fit - either by GM LTD anywhere in the world, or by following an illustrated manual and DVD. The company also has several thousand Guardian units in stock at various locations worldwide to allow speedy fitting of any high risk vessels. According to Mrs Stevens, the patent Granted compound used in Guardian “produces an extremely dense, high grade material with the highest UV and temperature variant tolerance of any known compound, still allowing us to make it light enough for one person to pick up and install each unit alone if necessary.” The

Whilst the financial cost of piracy can be put into numbers, the affect an experience may have on a crew and their families back home is much less tangible. The fear of pirates hijacking vessels is an all too real problem around the world’s coastlines, forcing shipowners to fit their vessels with an array of defences.


lightweight nature means it is easy to remove and can be transferred from one vessel to another and its excellent durability allows the company to offer all customers a five year warranty. There is no need to remove GUARDIAN at every port - simply remove the sections required for loading or unloading and for tying the ship up, this takes minutes with no risk of cuts and the same to replace on leaving port. We at Guardian Maritime ltd feel that Crew safety must be priority, and that in ensuring the safety of the ship from pirate attack, we ensure the safety of the crews from kidnap imprisonment and torture, ensuring they return home safely to their families at the end of their rotation.


300 Vessels Fitted with Guardian

Below: Horners presentation.

In little more than a year, 300 vessels have been fitted with Guardian, with the likes of CMA CGM, Norgas and BW Tankers some of the big shipping companies that Guardian Maritime Limited can now file under ‘customers’. In fact, CMA CGM was the first company to try out the kit in September 2012 after a rigorous testing period. “CMA’s first ship sent it off for three months to be battered by the crew and the elements and passed with flying colours,” noted Mrs Stevens. “We have also taken it to Germany where the Maritime Special Forces fitted it over the rails of a ship and attempted to get over it. “The feedback from the crews and officers of the ships we have fitted has been fantastic. The crews love it as they do not get cut to ribbons fitting and removing Guardian, and even when they are in port the ship is protected. All they have to do in port is remove the sections of Guardian that are covering the chocks and fairleads to allow the ship to be tied up.” Guardian 1-0 Pirates The tests conducted by CMA CGM and the German special forces follow on from the UK Marines’ failed attempts to overcome it, which can be seen on Guardian’s website. However, no amount of testing can prepare you for the real thing and in May 2013, the inevitable happened. A container ship protected by Guardian anti-intrusion barriers was attacked by pirates off the coast of Nigeria. Guardian stood up to the test as the attack was aborted once the pirates realised the difficulties the defence barriers create. Just two hours later, in the same body of water, another vessel not fitted with Guardian was attacked, and unconfirmed reports suggested the vessel was hijacked for a few days prior to being released. “The crews plying the world’s seas, bringing us our everyday necessities, Have like everyone else, the right to live and work in a safe environment, free from the threat of kidnap and death,” said Teresa Stevens. “We estimate there are 25,000 vessels transiting the HRA so in theory those vessels could benefit from having Guardian fitted. We are not saying this is the absolute remedy and would no way dissuade owners from using armed guards, but

Left & above - Long shot of fitted units. when in extremely high risk areas, as part of a layered defence system, we believe Guardian has a place in the future of anti-piracy.” The topic of armed guards has been much discussed within the industry and still remains a controversial and drastic measure to many. However, a great deal of the grey areas have been addressed since the ISO published ISO/ PAS 28007:2012, Ships and marine technology – Guidelines for Private Maritime Security Companies (PMSC) providing privately contracted armed security personnel (PCASP) on board ships (and pro forma contract). By browsing through the Live Piracy and Armed Robbery Report on the ICC’s Commercial Crime Services website, you can see the mere effectiveness of firing warning shots to deter pirates.

References. Oil and Gas Clients (shipping) Maran Gas LNG LPG Maran Tankers VLCC Chevron Shipping LNG

Transocean Deepwater Anadarko Oil Al Jurf / Total Container Line Clients


Maersk Line

Sea Tankers Product Tankers


Norbulk Shipping UK Ltd Product Tankers

CMA Ships London

Oil and Gas Clients (FPSO and Drilling) Maersk Drilling BW offshore FPSO Espoire Ivoirian - Working off coast of Cote de Ivoire FASL Nigeria FPSO Front Puffin - Working off coast of Nigeria Noble Offshore Drilling

Africa Express Lines Star Reefers Ship management Clients Rickmers Ship-Management (Singapore) Bernhard Schulte Ship-Management (Germany) Bernhard Schulte Ship-Management Group (Hong Kong)

A Visible Deterrent The harsh fact of the matter is pirates target easy ships. If your ship looks too much of a challenge for the pirates with visible deterrents, they will simply wait for a more vulnerable and easily accessible ship to sail near-by. And with many companies in the shipping industry working with very tight profit margins, it would seem the cost of many of the antipiracy systems on the market overrides the threat of being a target. A very risky strategy to adopt when systems such as Guardian now offer shipowners a tried and tested method of preventing pirates from getting on board, without breaking the bank. Guardian is also 100% recyclable Unlike razor wire at the end of its long life Guardian can be recycled by regrinding the compound and used to make other products, thus lessening the impact on the environment and the risk to wildlife that razor wire causes when it is washed overboard. International Patent Certificates have been awarded during the last 12 months •

Guardian Maritime Services Ltd E: W: T: +44 (0) 2393 784751



Advanced course for experienced cable lay operators now offered by Makai Makai Ocean Engineering is now offering an advanced cable laying course for operators who have managed real cable installations at-sea using MakaiLay. In addition to filling any knowledge gaps that operators might have in basic lay operations, this MakaiLay Level-II training course focuses on more advanced scenarios that might arise at-sea. This course produces graduates who are better equipped to install subsea cable accurately, safely, and swiftly, which benefits the installation company, the cable owners, the insurers, and of course the operators themselves.


articipants of the course learn how to successfully manage real-world scenarios like: • Handling as-built cable lengths from the factory that are different than the originally planned cable assembly lengths, • Identifying and managing roto count errors, • Managing emergency ship stops and cable engine stops, • and much more… Participants systematically work through the above scenarios and many others using an inoffice cable lay simulator with the guidance of a master-level MakaiLay operator. Drawing on lessons from over 35 years of cable laying experience, the course prepares graduates to address contingencies correctly and efficiently as they arise at-sea. Global Marine Systems Limited (GMSL) recently sent six of their experienced operators to Makai’s headquarters in Hawaii to complete the MakaiLay Level-II course. “The MakaiLay Level-II course provides vital training for our more experienced cable engineering personnel, giving them the latest tools and techniques they need to accomplish a lay or repair safely, on time and to budget,” said Mr. Ian Griffiths, Global Marine’s Cable Engineering Manager. “Courses like this are part of the continual improvements we make to our operations that have kept Global Marine at the top of our industry for more than 165 years.” “The MakaiLay Level-II course gives us an opportunity to work directly with some of the world’s most experienced operators,” said Dr. Venkata Jasti, Makai’s Submarine Cable Manager. “We are better able to understand their pain points and provide techniques for overcoming them, using both practical, hands-on methods as well as software-based methods. As a result of these interactions, we often add new operator-requested features to the software that can seamlessly integrate with their operating procedures, making their workflow more effective and efficient.” The new Level-II course uses MakaiLay as well as its in-office counterpart, called MakaiPlan Pro, which is used for training and to identify installation risks and prepare installation plans before ever going to sea.


For beginning and intermediate users of Makai’s cable software suite, Makai offers Level-I courses that provide training on the fundamentals of cable route engineering and installation with the aid of MakaiLay, MakaiPlan Pro as well as MakaiPlan – the world’s most popular cable route engineering software. Participants of these courses in 2016 include: KCS (Japan), Leidos (USA), General Dynamics (USA), TELIN & Telkom Infra (Indonesia), and KTS (Korea). MakaiLay is advanced subsea cable installation software that enables users to lay submarine cables with the highest level of accuracy, speed,

safety, and reliability possible today, dramatically reducing the risk of cable failures. The software has been rigorously tested and validated and is used by over 75% of the global fleet of cable ships on countless commercial lays and military installations to successfully install well over 400,000 km of cable worldwide. Makai Ocean Engineering Inc., is the world’s leading provider of submarine cable planning and installation software. Established in 1973 in Hawaii, Makai has been developing submarine cable installation software since 1983, and has been pushing the boundaries of the state-of-the-art ever since. •

Make the success of your project part of your planning! Quality and reliability make BĂśhmer ball valves the first choice for your project planning.


O U R E X P E R I E N C E – YO U R S A F E T Y


BLASTING WITHOUT GRIT: Treat Your Surface with the Bristle Blaster® Quality Made in Germany since 1987 The Bristle Blasting process is an innovation in surface preparation. Designed for professional industrial use, the Bristle Blaster® tool is able to remove corrosion, mill scale, and coating quickly even from pitted surfaces in hard-to-reach areas. It is the only hand-held tool worldwide that allows to generate surface preparation grades comparable to ISO 8501-1 D Sa 2½ – D Sa 3 (SSPCSP 10/NACE No. 2 up to SSPC-SP 5/NACE No. 1) and a surface roughness profile of up to 120 μm Rz (4.7 mils) simultaneously achieving results analogous to abrasive blasting processes. he history of this innovation goes back into the 1980s when Werner Montabaur, an experienced manufacturer and inventive genius, got involved with the industrial area and ascertained that existing devices did not offer a proper solution for the surface treatment. This conclusion resulted in the foundation of MONTI - Werkzeuge GmbH, a manufacturing company carrying his name and specialized in pioneering technologies for professional surface preparation. Today MONTI is an established forerunner in the industry with a subsidiary company in the USA/Texas and product representatives in over 100 countries around the world. The Bristle Blaster® technology (Tensioned Wire Blasting) has a few unique characteristics. The key feature is the Accelerator Bar. It temporarily halts and subsequently accelerates each bristle during rotation and causes it to increase the kinetic energy of the bristle tip impacting the surface. The U-shaped anchored

bristles are sharpened in a precisely defined manner. Immediately after the bristle tips strike the surface they retract providing both corrosion removal and micro-identification that exposes fresh surface. In this manner, even resistant coatings, scale, temper colours and other oxidation products presenting a challenge for grinding tools can be removed easily achieving a near white or even white metal cleanliness. The wire bristle impact process is explained in detail by Marquette University’s Professor Robert J. Stango in scientific reports. According to one of his studies’ outcomes, material compression generated in the process of working with the Bristle Blaster® improves overall fatigue life of the treated surface due to corrosion and crack growth resistance. Depending on the material to be treated, the surface roughness up to 120 μm Rz (4.7 mils) can be achieved while working with the Bristle Blaster®. In case of steel types used for pipe and

plant constructions, roughness values lay between approx. 65 and 90 μm Rz.

Another important effect of the Bristle Blasting process is that it excludes damaging of the treated surface. The bristle tips strike almost vertically against the surface removing rust and coating as well as leaving the treated material intact. Furthermore, heat generation in the process is negligible – consequently warming-up of the treated surface is avoided. Besides, compared to traditional abrasive blasting processes, no remains of sand or rust particles are smeared or rubbed into surface during Bristle Blasting.

[An]ideal solution for confined and hard-to-reach areas where conventional blasting methods are either not applicable or not permitted.

Bristle Blaster® Pneumatic.


Speaking about the key features of the Bristle Blaster®, it has to be mentioned that very little dust is produced during the working process. This feature makes the tool very environmentally friendly and cost effective since no transportation or recycling costs for contaminated blasting grit are caused. Moreover, due to low vibration and sound pressure generation and the fact that no elaborate protective clothing is needed, the tool remains very safety-relevant and userfriendly. Application Areas Typical applications of the Bristle Blaster® include spot repair, weld seam preparation and repairs of transport damages. Advantageous characteristic like effectiveness, portability, high safety and environmental performance make the Bristle Blaster® versatile throughout a number of industrial sectors including offshore and shipbuilding, pipeline and steel constructions, hydraulic engineering, petrochemistry and coating manufacturing.


Surface roughness up to 120 µ Rz (4.7 mils).

Depending on the area of application, the operator can choose between two variants of the tool. The 2.2 kg weighing Bristle Blaster® Electric requires no other equipment but the respective drive unit and electric power supply. The lightweight Bristle Blaster® Pneumatic (1.1 kg), created for areas where electric supply is not possible, is activated by a suitable air pressure. The lightness and handiness of the Bristle Blaster® makes it to an ideal solution for confined and hard-to-reach areas where conventional blasting methods are either not applicable or not permitted. Bristle Blaster® Pneumatic is also ATEX approved (Ex || 2Gc || A T4 X). That is, the device can be used in potentially explosive atmospheres (Zone 1). Besides, the Bristle Blaster® can be worked with out- as well as indoors without the need for an enclosure or elaborate equipment. To name only a few examples of the tool application, the Bristle Blaster® was used in scope of the establishment of three LNG (liquefied natural gas) plants on Curtis Island on the east coast of Queensland/Australia. Besides general construction, it involved the construction of 540 km of buried pipeline, which gave the project a special challenging character. Curtis Island is located near Gladstone Harbor/Queensland well known for extreme exposure to salt water and humidity. To resist the unfavourable weather conditions, the facility has been mainly constructed of stainless steel. Already during the pipeline construction phase, approximately 300 Bristle Blaster® and 12,000 steel belts were used. For the surface preparation of stainless steel 80 Bristle Blaster® machines with 4,000 stainless steel belts were called into action. The patented

Bristle Blaster® technology was effectively applied for treating weld seams and joint coating. Finally, after five years of hard work the Queensland Curtis LNG Project was completed in November 2015.

Bristle Blaster® in use: Fast, flexible, and cost-effective.

The Bristle Blaster® technology was also part of Loop de la Costa II, a significant industrial project south of Lima/Peru. The project was instigated by TGP (Transportadora de Gas del Peru) under the aegis of COGA (Compañía Operadora de Gas del Amazonas) and was carried out by TGP’s contractor SERPETBOL PERU SAC. The Bristle Blaster® was used over five months to handle 31 km of gas pipelines 24” in diameter that are stretching from Chilca District to Lurín District in Peru. The Bristle Blaster® technology will also find its use in Montevideo/Uruguay where the tool will be applied for spot repair work at pipelines and tanks at the Uruguay’s single refinery operated by ANCAP (Administración Nacional de Combustibles, Alcoholes y Portland). • The mentioned applications are just some examples of how the Bristle Blaster® is utilized in different areas and environments. If you would like to have more information about the tools or inquire about product presentations and trainings please contact us:

MONTI - Werkzeuge GmbH w: | e: | t: +49 (0) 2242 9090 630 USA Office: MONTI Tools Inc. | +1 832 623 79 70



Hydraulic Cylinders for the Offshore Industry LJM Hydraulik develops and manufactures hydraulic cylinders for the offshore oil and gas industry. The manufacturing equipment at LJM Hydraulik is continuously updated and operated by staff with a vast expertise and know-how. The skill and technical enthusiasm of our staff guarantee a uniformly high level of quality and efficient maintenance - both before and after delivery. It is also the knowledge and general attitude of our staff which always ensures accurate delivery at the agreed time. It is therefore natural for LJM Hydraulik to value its staff. We place particular importance on a good working environment in which personal commitment, cheerfulness and a pleasant atmosphere amongst the staff have high priority. Offshore marine cylinders with integrated position transducers Combining hydraulics and electronics gives new and greater possibilities for using hydraulic power transmissions. The combination of hydraulic cylinders, transducers and electronically-operated valves are important components for industry to use in solving the demands of productivity and quality. With an intregrated position transducer it is possible continuously to register the position of the piston rod. Telescopic cylinders for the offshore industry When applications request cylinders with a combination of long stroke and short build-in length the double acting telescopic cylinder is the right choice to make. With a double acting telescopic cylinder controlled motions are possible, for instance in applications as:

• Cranes

Single overcentre valves

Double overcentre valves

Non-return valves

Hose burst valves

Mobile lifts

• Elevators DNV type-approved cylinders for the offshore industry Our NH75 range of cylinders is primary designed and developed to meet the requirements for a robust and type approved hydraulic cylinder in the marine, offshore and the mobile industries. NH75 is being delivered with spherical bearings in steel, bronze and composite materials. Piston rods are available in three different steel qualities with various surfaces such as chrome, nickel-chrome and ceramic plated in order to meet the strict requirements for long lasting hold in a demanding and rough environment. Surface treatments performed according to current norms and customer specifications. Offshore cylinders with built-in loadholding valves We easily design special marine cylinders with build-in load-holding valves. Our range of experience includes cylinders with built-in:

LJM Hydraulik develops and manufactures hydraulic cylinders for the marine and offshore oil and gas industries.

The overcenter valve is basically a pilotassisted leak-tight relief valve The pilot pressure will help the cylinder pressure (or the load induced pressure) to open the valve. Each valve has a fixed pilot ratio which determines how much influence the pilot has on the opening of the valve. Stainless steel cylinders for the offshore industry Our stainless cylinders are made of acid-proof stainless steel. Sealings are from recognised suppliers / make - no matter if the liquid is water or oil. The standard cylinders NH46/47 and NH54/55 can also be used as basic models for special cylinders with various versions of: •

Rod and cylinder mountings

Bearings and bushings

• Sealings • Internal and external positioning sensors

Integrated non-return and hose burst valves, etc.

The cylinders can operate submerged in seawater or in high aggressive environments. LJM Hydraulik is a part of LIND JENSENS MASKINFABRIK A/S, which was founded in 1964. The company is Danish-owned, employs approximately 200 staff and has at its disposal more than 15,000 m² of manufacturing and administration buildings. • If you would like more information please contact LJM:

LJM Hydraulik T: +45 97 34 32 00 E: W:


Pipeshield supply a range of specialist equipment including • • • •

Lifting Frames & Beams Speedloaders Wet Deployment/Storage Quick Release Systems

Are Your Investments Safe Down There? PIPELINE PROTECTION In an offshore environment there is always the possibility of unseen damage occurring to subsea installations through trawl board strike, as well as accidental dropping from platforms or vessels. We design and manufacture a range of protective products, which are tailored to site-specific conditions: • Concrete mattresses • Concrete protective structures • Anti-scour mattresses (Bionic Seaweed, Fronded Concrete Mattresses) • Grout & sand bags • Grout injected fabric formworks • Rock Mattresses & Precise Rock Placements Units (PRP’s) To find out more about our solutions: or call: +44 (0)1502 560900


Merford and Siemens Deliver Mega Project off the Norwegian Coast The compressors on the Edvard Grieg oil platform, some 160 kilometres off the Norwegian coast, as manufactured by Siemens in Hengelo, have been fitted with ‘state of the art’ noise enclosures. The enclosures were designed and manufactured by Merford Noise Control, a Dutch company which specialises in sound insulation. It was a megaoperation which took a year to complete.


or the Edvard Grieg oil platform, Siemens in the Netherlands was commissioned by Aker Solutions in Norway to develop the compressor skids on the platform. Siemens then appealed to Merford Noise Control to develop and build high quality noise enclosures for the compressors. All parties worked intensively together to deliver this huge and complex project on time. And they were successful. Recently the oil platform went into operation. Stringent NORSOK standards The new platform was required to comply in all respects with *NORSOK, strict standards developed by the Norwegian petroleum industry. Because of the noise involved in pushing gas through the pipelines, NORSOK stipulates that all compressor trains must be fitted with noise reduction enclosures that need to be considered as working environment. Mark Schreijer from Siemens: “For Merford, working with NORSOK was new. Fortunately, we knew what to do. From the very start of the project, we were both intensively involved in the design, production and all the other issues. This was absolutely necessary for the successful completion of this project.” The NORSOK standards related to nearly every aspect and every part of every installation on the oil platform, Schreijer explains. “Not just to all the materials used, but also their treatment and processing. For example, steel may be used from steel manufacturers with a NORSOK certificate only.” Challenging specifications The noise enclosures needed to be effective in three areas. Firstly, they had to reduce noise. Pressing gas through the pipelines is a very noisy process, with many high tones. This noise can rise to sound pressure levels of approx. 95 dB(A). The Merford enclosures easily reduce this to well below the required level. The enclosures must also be explosion-proof. Stef Zoeteman from Merford: “If there were to be an explosion on the platform, further escalations need to be prevented. The noise enclosures are designed in such a way that no parts can fly off which – as a result of the explosion – could lead to new explosions or calamities on other parts of the platform.” Siemens and Merford therefore completely recalculated the initial design and challenged the blast specifications. Resulting in an optimized and weight saving


blast philosophy whereby the enclosures can deform plastically where allowed and deform elastically where critical parts are fitted on the compressor skid. Own design philosophy Finally, the enclosures had to ensure that the compressor trains would not be affected by weather conditions. However, these were not the only requirements, adds Zoeteman: “The noise enclosures on the oil platform were to have the design and functionality allowing service, maintenance and inspection. Both for outside and inside. Because the enclosure is a working environment it was equipped with lifting points, lighting, gas and fire detection and a deluge system. We applied our own design philosophy in this.”

leaving only millimetres on all sides. This was a massive and risky operation, but was nevertheless completed in less than an hour. November last year the platform started operation, and successfully. For Siemens and Merford, the production and delivery of the compressor skids and the noise enclosures were an exciting process. “Together, we didn’t deliver a standard solution, but a real state of the art engineering product. We should be proud”, says Zoeteman.

Shipping to Norway with special transport frames

*The Norsok standards are developed by the Norwegian petroleum industry to ensure adequate safety, value adding and cost effectiveness for petroleum industry developments and operations. Furthermore, Norsok standards are as far as possible intended to replace oil company specifications and serve as references in the authorities’ regulations.

Shipping to Norway took place in the spring of 2014. The completely assembled enclosures were shipped on specially designed transport frames. On arrival in Norway, the huge structures – the biggest enclosure is 16.8 metres long, 5 metres wide, 5.6 metres high and weighs 34.2 tons – were lifted in one go over the compressor skids onto the platform,

Merford is a Dutch company which specialises in noise control products, access technology and crane cabins. Founded in 1956, it is currently based in Gorinchem and employs around 180 people. Merford focuses its applications on Industry and Original Equipment Manufacturers. •

About Merford


AUTOMATED WELDING: THE CLEVER WAY TO WELD! Welding Company provide automated welding solutions to shipyard construction and modification projects. We recently combined Firefly semi-automatic orbital welding system with Miller's Proheat™ induction heat treatment for projects in Rotterdam and Bremerhaven.

BRAVE TERN IN ROTTERDAM DOCKS Welding Company were selected by Franklin Offshore Europe to carry out welding works to Fred Olsen's Windcarrier vessel 'Brave Tern' at their Rotterdam yard. Similar welding work was also carried out on the sister ship, 'Bold Tern', at Lloyd Werft's yard in Bremerhaven. The projects involved using the Firefly orbital welding machine to carry out the cutting, bevelling, prepping and welding of the four leg extensions on the Windcarrier vessels.

FIREFLY IN ACTION Firefly is a fully integrated digital orbital welding system and can be rented with, or without, an operator. Full installation, training and support is available.

Top: Brave Tern in Rotterdam Docks; Firefly in Action. Bottom: Firefly cutting, bevelling and welding

If you would like to learn more about how renting a Firefly orbital welding machine can keep you ahead of the competition, please visit Welding Company NV/SA

Brankekensweg 6, 2627 Schelle, Belgium t: +32 3 880 8180 e: w:


Modern Portable Dew Point Analysers By Vympel


xcellent gas quality has been crucial to the success of the natural gas industry. For this reason, development of the tools required for accurate gas analysis has been an ongoing activity from the very beginning. In some cases, however, significant progress was not particularly rapid. An example of progress that virtually stood still for decades was dew point analysis. In the United States, efforts to build a viable gas delivery infrastructure were well underway by the 1920s. However, the issue of water in pipeline gas was a problem. Fluctuations in gas humidity and pipeline temperatures could lead to liquid water or clathrate hydrates forming. These substances cause a number of problems, including damage to equipment and pipeline blockage. In order to solve this problem it was necessary to measure the water vapor content of the gas. Devices that measure the water content in a gas under pressure, such as the atmosphere or gas in a pipeline, are called hygrometers. There are several types of hygrometer, but the earliest type that

was adaptable to natural gas applications uses a chilled-mirror to measure the dew point. This type of analyzer takes advantage of the fact that for a given amount of water vapor suspended in the natural gas, the dew point temperature will be higher or lower depending on the pressure. With information about the dew point and the pressure, the water content can be easily calculated. The first satisfactory chilled-mirror hygrometer for natural gas applications was presented in the publication Bureau of Mines Report of Investigation No. 3399. This report was further entitled “Bureau of Mines Apparatus for Determining the Dew Point of Gases Under Pressure”. In this report the authors, Bureau of Mines chemists W.M. Deaton and E. M. Frost. Jr., described a device that is still known as the “Bureau of Mines Tester”. It was the first device that could reliably provide repeatable measurements of the dew point of natural gas (see image 1). This device consists of a small stainless steel mirror mounted in a compact housing. This mirror is soldered to a copper cooling tube, which in turn passes through a “chiller”. A thermometer is embedded in the cooling tube in such a way that it reports the temperature corresponding to the surface of the mirror. The chiller is supplied with a refrigerant gas, which cools the copper tube and thereby cools the mirror. The test gas enters through an inlet port and passes across the mirror before being vented to the atmosphere. Cooling and sample gas flows are both adjusted by opening and closing valves manually. The refrigerant gas is supplied from a bottle brought to the site for this purpose. The operator observes the surface of the mirror through a small window mounted in the housing and when a condensate forms, the thermometer is read and the dew point is


Bureau of Mines Dew Point Tester (1938) Source: U.S. Bureau of Mines.


Vympel Portable Analyzers – Hygrovision-Mini (Left) and Hygrovision-BL (Right).

Image 2

thus established. The Bureau of Mines Report of Investigation No. 3399 was published in 1938. In 1938 the notion of dew point only referred to the dew point of water. It is clear from the text of the report that no thought at all was given to the measurement of a “hydrocarbon dew point”. Today, in 2016, the 6th edition of the Manual on Hydrocarbon Analysis (published by the American Society for Testing and Materials (ASTM) in 1998) is the standard reference for natural gas analysis. Beginning on page 202 there is a description of the “Standard Test Method for Water Vapor Content of Gaseous Fuels by Measurement of Dew-Point Temperature”. The method of measurement and the apparatus to be used are almost exactly what Deaton and Frost published in 1938 – including the very same sectional view of the device. Although this section of the book deals with a method to measure the dew point of water, in a side note there is reference to the fact that other components of the gas, such as hydrocarbons and glycolamines, may condense onto the Multi-Component Hydrocarbon Condensate as seen Through the Microscope of Vympel’s Provision Portable Dew Point Analyser

mirror before the water. It is suggested that with a supplemental device to uniformly illuminate and magnify the mirror, it is possible to discern different substances on the mirror. It is then noted that in certain situations, with this upgrade the tester might be used to register the condensation temperature of these other components. However, there is no further guidance for carrying out such measurements. In recent years, interest in measuring the hydrocarbon dew point has grown considerably, largely due to the increasing number and variety of gas sources coming online. These include mature gas wells, oil related gas, LNG delivered by tanker, transcontinental/transoceanic pipelines, gas recovered from underground storage facilities, and wells harvesting gas through fracking. Of course nowadays, in addition to the dew point tester, there are a variety of automatic analyzers that continuously monitor the dew points of both water and hydrocarbons. These online devices have there own strengths and weaknesses, but one thing that they all have in common is that there is no way to directly Image 3

visually confirm their results. If there is a question the only truly satisfactory solution is to use a visual device, such as the oldfashioned Bureau of Mines tester. At this point the reader may wonder, “Apart from the fact that this device was designed a long time ago, if it still works what’s the problem?” This is a bit like observing that a car built on a design from1938 would still work as transportation. That may be a true statement but it misses the point. Significant advances in materials science and electronics have made it possible to build a device that is far more advanced, sensitive and accurate, and one that is designed to measure the dew points of both water and hydrocarbons. It is no longer necessary to use a refrigerant to cool the mirror as this can be done electrically by means of a thermoelectric battery (peltier element). One more point worth considering, the version of the bureau of mines tester most widely used today is limited to measuring at or below about 35 barg. The reader may now wonder, “Is there a modern portable dew point analyzer that addresses all of these points?” The answer is yes – the Hygrovision line of portable analyzers from Vympel. These analyzers are state-of-the-art, and they incorporate all of the advances mentioned above, while improving on just about every aspect of the original tester design. The Vympel portables come in two varieties: the Hygrovision-BL and the Hygrovision-mini (see image 2) The Hygrovision-BL is perhaps the most capable dew point analyzer there is. It incorporates both manual and automatic technologies and it can measure the dew points of both water and hydrocarbons. The BL is suitable for laboratory applications as it can achieve an accuracy of ±0.25 °C. Powered either by the built-in battery pack or mains, it can serve as a reference instrument at remote locations or installed for extended periods. It is equipped with a visualization


system that makes it possible to either monitor the mirror during automatic measurements or take measurements manually. The BL is often used as a metrological comparator to provide traceable calibration and it can accommodate pressures up to 260barg. This analyzer is operated by means of a touch screen interface and it can also store up to 5 years worth of measurement data. If desired, it can even be connected to a SCADA system. Of course, this is a lot more than is needed for many applications. For spot-checks in the field or control measurement to resolve differences in automatic measurements, the mini is perhaps the better alternative. It is lighter to carry, easier to operate and has a longer battery-life than the BL. In fact, the Hygrovision-mini is designed to be a direct replacement for the old Bureau of Mines tester. At first glance, the mini’s most obvious improvement over the old tester is its lack of a cumbersome bottle of refrigerant. This makes the mini a lot more convenient and easy to handle. Where the tester uses a stainless steel mirror soldered to a copper cooling tube, the mini uses a much smaller silicon-based mirror bonded to a three-stage peltier element. The small size means that the mirror has a lot less mass, so controlling its temperature requires Image 5:

Image 4: Vympel’s Game-Changing Dual-Mode Lighting System: 1. Schematic of the vertical (white) lighting mode 2. Clean mirror under vertical lighting 3. Mirror with hydrocarbon condensate 4. Clean mirror under side lighting 5. Mirror with Water condensation 6. Schematic of the side (red) lighting mode very little energy and is much more efficient. In order to cool the mirror of the old tester, it is necessary to manually open and close a valve controlling the flow of the refrigerant gas while simultaneously peering at the mirror through a magnifying glass. Stabilizing the temperature requires a deft hand. In addition, there is no way to directly warm the mirror. This fact means that ambient temperatures may be an obstacle to taking measurements. The mini cools the mirror electrically and this is controlled with the touch of a button. There is no need to manually stabilize the temperature, as this is done electronically. What’s more, the peltier element that cools the mirror can also heat it, resulting in complete control of the mirror’s temperature. Except in the most extreme situations, ambient temperatures are not a consideration. In addition, the mini carries out a “cleaning” cycle by heating the mirror to +55 °C between measurements. In this way there is no carry over condensation to interfere with accuracy. This cleaning process is semi-automated for easy operation. Another factor in measurement accuracy is optical resolution. The newest version of the old tester has a fixed-focus 4-power Condensate Films of Three Different Hydrocarbons: Decane 10H22 (top) i-Octane C8H18 (middle) Propane C3H8 (bottom)


magnifying glass for viewing the mirror’s surface. By comparison, the mini is equipped with a 40-power focusable microscope. That’s a full order of magnitude increase in resolution. The detail revealed is stunning (image 3, previous page). But the real innovation is the lighting system integrated into the mini (it’s also used in the BL). The mirror can be illuminated either from the side by a red light source or from above by a white light source. These two different light sources make it possible to clearly differentiate between water condensation and hydrocarbon condensates (image 4). Because water condensation forms droplets, under both red and white light it is clearly visible as a pattern of dots. On the other hand, hydrocarbons condense to form a reflective film. When lit from the side, this film on the mirror appears dark as no light is reflected to the eyepiece. But under white light, hydrocarbon condensates create rainbow like patterns. With experience it is even possible to distinguish one hydrocarbon from another (image 5). The revolutionary advances inherent in Hygrovision analysers make it easy for almost anyone to take reliable and accurate dew point measurements. As the global infrastructure for gas processing and transportation continues to expand, the ability to take absolutely definitive dew point measurements will become increasingly critical. Fortunately, the necessary instruments for taking these measurements are already available: the Hygrovision-BL and Hygrovision-mini from Vympel. • If you would like to know more about Vympel and their solutions, contact details are below:

VYMPEL GmbH Tel: +49 (0) 211 / 210773-91 Web: E-Mail:

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Gazprom Pursuing Efficient HR Policy


he Gazprom Board of Directors took note of the information relating to the efficiency assessment of the Company’s HR policy and staff incentive system, as well as the key performance indicators (KPIs) demonstrated by the senior officials of Gazprom and its subsidiaries. It was highlighted that Gazprom pursued an efficient HR policy. The Company has introduced a system of business processes aimed at recruiting and retaining highly qualified professionals, along with developing their competencies. Gazprom’s HR tools include systemic planning of short- and longterm staffing requirements, which allows for advanced personnel training with the purpose of maximizing project efficiency in all of the Company’s areas of operation. A specialized web portal, Gazprom Vacancies, is in place to streamline the recruiting process. The portal provides candidates with data on job openings arranged by various search criteria, including education and experience requirements and employer’s location. Gazprom pays great attention to its interactions with educational institutions. There are specialized Gazprom Classes in the regions where Gazprom’s subsidiaries are present. The Company actively cooperates with universities on the targeted training of students and the professional development and retraining of Gazprom’s employees. The development of the staff incentive system aimed at achieving the Company’s production and financial objectives plays an important role in Gazprom’s HR policy. Gazprom has a continuous corporate professional education system for its employees. Educational programs are offered at the training centers of Gazprom’s subsidiaries in all the regions where the companies operate. The Company builds a skill pool from among Gazprom’s employees with highly developed professional and managerial competencies, who have been trained in targeted corporate programs. Gazprom actively participates in developing the national system of professional qualifications for Russia’s oil and gas industry. The consistent implementation of its HR policy provides Gazprom with not only competitive advantages in the labor market, but also an inflow of promising and skilled workers, a stable staff, and employees’ commitment to continuous competency development. The Gazprom Management Committee was instructed to continue its efforts aimed at improving the HR policy and staff incentive system at the Company.•

BLM Completes Comprehensive Update of Its Oil and Gas Measurement Rules


he Bureau of Land Management announced the finalization of three rules today designed to ensure the accurate measurement, proper reporting, and accurate recordkeeping of oil and gas produced from Federal and Indian leases in order to ensure that the royalties due are paid. “The conclusion of this rulemaking effort is a significant milestone in the BLM’s effort to modernize its oil and gas program,” said Janice Schneider, Assistant Secretary for Land and Minerals Management. “The updates made by these rules create a durable framework for the future that will support the responsible development and management of the nation’s oil and gas resources and ensure that both the American public and tribes receive a fair return for these resources.” Today’s rules update and replace Onshore Oil and Gas Orders (Orders) 3 (new part 3173), 4 (new part 3174), and 5 (new part 3175), and represent the first comprehensive update of BLM’s measurement rules since they were issued over 25 years ago. The rule to replace Order 3 governs oil and gas handling and is designed to ensure that production is properly accounted for in order to prevent theft and loss and enable that production to be verified. Orders 4 and 5 establish minimum standards for the accurate measurement of all oil and gas, respectively. These new rules:


Incorporate the latest industry standards, measurement technology, and practices; andEstablish a one-stop, national process for the review and approval of new measurement technologies and practices to allow them to be deployed quickly across BLM-managed leases. “These new rules provide a strong foundation for our oil and gas program that will ensure we are meeting our obligation to the American people and to the tribes we work with,” said Neil Kornze, BLM Director. “These new rules also give the BLM the tools to be responsive to new technology - this change is particularly important because changing technology often provides opportunities to make oilfield operations safer and more efficient.” The finalization of these rules concludes a seven-year effort to address concerns raised by the Government Accountability Office (GAO), the Department of the Interior’s Office of the Inspector General (OIG), and the Secretary’s Royalty Policy Committee; all of whom expressed significant concern about the adequacy of the BLM’s prior measurement rules. The new rules will ensure that the oil and gas produced from Federal and Indian leases are accurately measured and accounted for, so that the proper royalties due can be paid. Royalties from federal leases are split between the U.S. Treasury and the State where the production occurs. Indian tribes and individual Indian allotment owners keep 100 percent of the royalties collected from leases on their lands. Accurate measurement and production accountability is critically important because the BLM’s oil and gas program is one of the most important mineral leasing programs in the Federal government. The total value of production last year was nearly $20 billion, which generated more than $2 billion in royalty revenue annually from federal leases and nearly $600 million in royalty revenue from tribal and allotted leases. While all three of the rules address changing technologies and industry practices, the final rules will also contribute to oil field safety, by expressly recognizing automatic tank gauging as a permissible means to measure oil and prepare end-of-month inventories. This change gives operators the opportunity to deploy a technology more broadly that protects workers and reduces the need for workers to enter storage tanks and to open hatches that may expose them to potentially lethal fumes. As part of the rule writing effort, the BLM held five public meetings and information sessions and made each of the proposed rules available for more than 60 days in order to hear public and industry concerns and gather comments, all of which were carefully considered during the development of the final rules. These meetings were in addition to to the public listening session that preceded the development of the proposed rules. The BLM made a number of changes to the final rules that respond directly to concerns raised by stakeholders and reduce costs, while still ensuring the rules meet the federal government’s fiscal obligations. On net, the BLM estimates that these changes reduce the total onetime compliance costs of the rules by nearly $100 million when compared to the proposed rules. Ongoing annual costs are also reduced significantly; BLM estimates that those costs have decreased by about $32 million relative to the proposed rules. In aggregate, the BLM estimates that these rules will cost $12,856 per operator per year for the first 3 years, and then $7,654 thereafter. Copies of the signed rules submitted to the Federal Register are available on BLM’s website – 3173, 3174 and 3175. Fact sheets explaining the key changes in between the proposed and final rules are also available on BLM’s website. In the coming weeks, the BLM will set up stakeholder briefings to review the updated rules. The regulations will become effective 60 days after they are published in the Federal Register. The BLM manages more than 245 million acres of public land, the most of any Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western states, including Alaska. •

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Offshore Northern Seas 29th August – 01 September Stavanger – Norway 27th SMM 6 - 9 Sept 2016 Hamburg Germany KIOGE 4 – 7 Oct 2016 Almaty, KZ. MANGYSTAU OIL & GAS 8 – 10 Nov 2016 Aktau, KZ OSEA 2016 International Conference 29 Nov – 2 Dec 2016/17 Marina Bay Sands, Singapore 22nd World Petroleum Congress Turkey 09-13th July 2017 ADIPEC 2016 7-10 November 2016 Abu Dhabi, UAE Oil Sands Trade Show 2016 Fort McMurray, Canada 13-14th September Offshore Technology Conference 1-4 May 2017 Houston, Texas, USA Offshore Europe 2017 5-8th Septermber 2017 Aberdeen, UK




Rio Oil & Gas 24-26th October Rio de Janeiro, Brazil FPSO World Congress 2016 20-21 September 2016 Marina Bay Sands, Singapore Middle East Petrotech 2016 26-29th September Bahrain International Exhibition & Convention Centre, Bahrain FPSO & FLNG Asia 2016 20-21 September Shanghai, China

23rd Africa Oil Week Oct 31st - Nov 4th Cape Town, South Africa FPSO Europe Congress 2017 21-22 Feb 2017 London, UK http://https// Gastech Conference & Exhibition 2017 April 4th to 7th

Ocean Business 2017 Apr 4 - Apr 6 National Oceanography Centre, Southampton, UK Asia Oil & Gas Conference (AOGC) 2017 May 7 - May 9 KL, Malaysia Asia Petroleum Geoscience Conference & Exhibition (APGCE) 2017 Nov 20 - Nov 21 KL, Malaysia



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Oil and Gas Innovation Autumn 2016  

The leading international voice on the oil and gas industry.

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