OGI Summer 2019

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Oil & Gas Summer 2019

INNOVATION® Business Information. Industry Solutions.

Cyber Security: People, Process and Technology Safety Showers in Extreme Climates

Contactless, The Future of Gas Analysis

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CONTENTS COVER STORIES & SPECIALS Contactless, The Future of Gas Analysis

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Oil and Gas Innovation sits down with Dr. Peter Geiser, Chief Technology Officer at NEO Monitors AS, to discuss among other things, their Tunable Diode Laser Absorption Spectroscopy (TDLAS) technology.

Predicting Catalyst Activity and More

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Dr Anne Virden, Product Technical Specialist, Laser Diffraction/ Imaging, Malvern Panalytical, UK, on how heterogeneous catalysts, where the catalyst is in solid form, enhance many of the gas and liquid phase reactions that underpin routine chemical processing.

Cyber Security

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In a world centered around technology, like oil and gas, all too often the two P-s (process or, policies and procedures) are neglected, when cyber security is concerned.

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

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EXPLORATION & PRODUCTION Composites Make Inroads into Higher Volume

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Oil and Gas Innovation speaks with Charles Tavner, COO, Magma Global, on how they’ve help solve some of the challenges faced by many producers in relation to the use of subsea steel pipe. This is particularly an issue in the deepwater production centers of the world, such as Brazil, West Africa and Gulf of Mexico. Using thermoplastics in these particular environments is increasingly gaining acceptance. We speak to Mr Tavner to know more about how they help deal with these issues while also helping producers save on costs.

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NEWSBRIEF U.S. to Offer All Available Areas in Next Gulf of Mexico Lease Sale

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he U.S. Department of Interior (DOI) has said that the Bureau of Ocean Energy Management (BOEM) will offer 77.8 million acres for a region-wide lease sale in the Gulf of Mexico scheduled for August 21, 2019. The sale will include all available unleased areas in federal waters of the Gulf of Mexico, the DOI said in a statement on Thursday. The U.S. Secretary of the Interior, David Bernhardt, said: “The expansion of America’s energy sector has been a major economic driver for the American people in keeping energy prices low. Our work in the Gulf of Mexico to ensure America leads the world in energy production is paramount.” Lease Sale 253, scheduled to be live-streamed from New Orleans, will be the fifth offshore sale under the 2017-2022 Outer Continental Shelf (OCS) Oil and Gas Leasing Program. Under this program, a total of ten region-wide lease sales are scheduled for the Gulf, where resource potential and industry interest are high, and oil and gas infrastructure is well established. Two Gulf-wide lease sales are scheduled to be held each year and include all available blocks in the combined Western, Central, and Eastern Gulf of Mexico Planning Areas. Lease Sale 253 will include approximately 14,585 unleased blocks, located from three to 231 miles offshore, in the Gulf ’s Western, Central and Eastern planning areas in water depths ranging from nine to more than 11,115 feet (three to 3,400 meters). Excluded from the lease sale are: blocks subject to the congressional

moratorium established by the Gulf of Mexico Energy Security Act of 2006; blocks adjacent to or beyond the U.S. Exclusive Economic Zone in the area known as the northern portion of the Eastern Gap; and whole blocks and partial blocks within the current boundaries of the Flower Garden Banks National Marine Sanctuary. The Gulf of Mexico OCS, covering about 160 million acres, is estimated to contain about 48 billion barrels of undiscovered technically recoverable oil and 141 trillion cubic feet of undiscovered technically recoverable gas. Revenues received from OCS leases (including high bids, rental payments and royalty payments) are directed to the U.S. Treasury, certain Gulf Coast states (Texas, Louisiana, Mississippi, Alabama), the Land and Water Conservation Fund and the Historic Preservation Fund. “This lease sale is a critical part of BOEM’s multi-faceted effort to secure our nation’s energy future,” said BOEM Gulf of Mexico Regional Director Mike Celata. BOEM has included fiscal terms that take into account market conditions and ensure taxpayers receive a fair return for use of the OCS. These terms include a 12.5 percent royalty rate for leases in less than 200 meters of water depth, and a royalty rate of 18.75 percent for all other leases issued pursuant to the sale, in recognition of current hydrocarbon price conditions and the marginal nature of remaining Gulf of Mexico shallow water resources. •

PROTECTING THE WORLD: Introducing Corrosion Science and Engineering A massive open online course from The University of Manchester and AkzoNobel Rusty car bodies? Leaking pipes? If you’ve seen these, you’ve seen metal corrosion in action. We’ll teach you why it happens, the environmental and economic consequences, and how we can control it. Featuring materials from our undergraduate and postgraduate Corrosion Control Engineering programme, this course is open to everyone – absolute beginners and professional engineers alike. Register from mid-August at coursera.org/manchester Open to everyone I Starts September 2019


CONTENTS EXPLORATION & PRODUCTION

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Elastomers for Harsh Environments

Oil and Gas Innovation sits down to have a chat with Frank Schleuter, Director Business Development Oil and Gas, of Gummiwerk KRAIBURG GmbH & Co. KG to talk about their rubber and silicone compounds as they apply to the oil and gas industry. KRAIBURG has been active in all sectors of the oil and gas industry for over a decade now, so it’s important to hear their perspective as rubber is becoming increasingly vital to the industry as we go forward.

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A World Leader in FPSO Solutions Yinson – as one of the world’s leading Floating, Production, Storage and Offloading (FPSO) facilities and services providers has a mission to Passionately delivery powerful solutions.

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PROCESSING Next Generation Productivity

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Oil and Gas Innovation speaks with TrendMiner, who’s goal has been to deliver innovative software that helps the people in their industry. They do that by providing an analytics solution that gives their clients immediate results. It’s called TrendMiner. TrendMiner help companies to optimize their production processes, increase plant productivity and improve the effectiveness of their equipment.

HEALTH, SAFETY & ENVIRONMENT The Provision of Emergency Safety Showers in Extreme Climates Oil and Gas Innovation sits down with Hughes Safety Showers, to discuss their emergency safety showers, eye/face wash and decontamination equipment.

MIDSTREAM & PIPELINES The Art of Lifting

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Harry Crones explains why Suxxesion is a leading Dutch company for the design and manufacturing of end of the line attachments. For the pipeline industry Suxxesion has developed the multi- tool to handle pipes by means of vacuum or with hydraulic spreaders. The multi tool is available to be attached to the twist-locks of container handling equipment in portal areas, knuckle boom cranes and excavators.

EVENTS CALENDAR 6

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24 — 25 September 2019 Congress Center Wiesbaden, Germany

Call for Papers

Submit your abstract by latest 30 November 2018 Powered by

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COVER STORY

Contactless, The Future of Gas Analysis Oil and Gas Innovation sits down with Dr. Peter Geiser, Chief Technology Officer at NEO Monitors AS, to discuss among other things, their Tunable Diode Laser Absorption Spectroscopy (TDLAS) technology. What NEO Monitors does is help companies with gas sensing, but because they are using lasers, or what they like to call “contactless” technology, it has a wider range of applications and lower costs associated with it. We also learn about their new product, the LaserGas™ II SP H2. We dig deeper into these fascinating topics with Dr. Geiser.

OGI: Could you start by explaining NEO Monitors AS credentials and experience in terms of your products and services for the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its reach? Dr. Geiser: NEO Monitors is a pioneer in a highly sensitive, selective and contactless optical measurement method called Tunable Diode Laser Absorption Spectroscopy (TDLAS). The technique relies on probing specific molecular transitions that are unique for each gaseous species and can be considered as its fingerprint. The company is located in Skedsmokorset (Norway) and was founded in 2003 as a subsidiary of Norsk Elektro Optikk AS (NEO), a Norwegian R&D company. The original objective of NEO Monitors was to take over the commercialization of the gas analysers developed by NEO. In 2017, NEO’s R&D team working on gas analysis was integrated into NEO Monitors as the company was sold to the Swedish Nederman Group. NEO Monitors has an install-based of more than 15.000 analysers which is the largest in the world. Up to now, we have measured 40 different gases, for example, oxygen, carbon monoxide, sulphur dioxide and even hydrogen. We are selling our products via a world-wide

distributor network. NEO Monitors has also two sales offices, one in Beijing (China) and one in Houston (TX, USA) to gain better access to these markets. OGI: What type of innovative solutions does NEO Monitors offer for oil and gas applications? Dr. Geiser: The TDLAS technology is nowadays considered to be mature and well-accepted for industrial gas sensing applications. The contactless measurement principle makes it especially interesting for applications in harsh environments where extractive sampling lines are prone to corrosion or clogging. Consequently, our most important products are cross-stack analysers, meaning that the transmitter (laser) is mounted on one side of a stack or duct and the receiver (detector) on the diametrically opposite side. This setup ensures a fast response time with low maintenance requirements since no gas extraction is needed. Our customers benefit therefore from low operational costs since there are also no consumables needed. In some cases it is simply not possible to measure directly in the process, e.g., due to high gas pressures or to quantify very low concentrations. For these applications we offer also extractive solutions, either using the

Dr. Peter Geiser, Chief Technology Officer at NEO Monitors AS

cross-stack analysers with a single extraction cell. Alternatively, we can also use a multipass cell. Last but not least, we also offer open-path monitors, able to cover several hundreds of meters. This configuration is mainly used for fence-line monitoring. OGI: Can you explain to our readers why refinery companies would want to measure gases like oxygen, hydrogen sulphide or hydrogen? Dr. Geiser: We can divide applications of industrial gas measurements roughly into three groups: •

Process control: e.g., optimizing processes with respect to fuel consumption or increase quality of products;

Emission monitoring: typically, continuous emission monitoring to report to authorities; and

Safety: either worker safety to ensure a healthy work environment or plant safety to ensure safe operation.

All three of these groups can be found in refineries, and the boundaries are not always very strict so that there are also overlaps possible. The most prominent process control application is combustion, measuring oxygen, carbon monoxide and methane. Nowadays, combustion analysers are also considered for

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LaserGas™ II SP H2. safety purposes. But there are many other applications in refineries: starting from DeNOx (selective [non] catalytic reduction), to FCCUs (Fluid catalytic cracking units) to tail gas analysis in sulphur recovery units (Claus process). We provide analysers and solutions for all of them, benefiting from the advantages of in-situ measurements. OGI: Can you talk about your new product, LaserGas™ II SP H2? Dr. Geiser: Each and every spectroscopy textbook teaches that Hydrogen is not IR active and can therefore not be measured by absorption spectroscopy. Nevertheless, there are some weak absorption lines resulting from so called “quadrupole transitions”. These lines are located in the IR region and can be used for TDLAS. Our Chief Scientist, Dr. Viacheslav Avetisov, optimized two of our standard products, the cross-stack analyser LaserGas™ II SP and the extractive multi-pass analyser LaserGas™ II MP. Hydrogen is special, so Dr. Avetisov used the uniqueness to squeeze out the best possible performance. This has never been done before and we were very proud announcing the analysers during one of the most important exhibitions in our field, the ACHEMA show in Germany in 2018. The feedback from visitors were overwhelming, reaching from incredulous amazement to simple wonder. OGI: What are the benefits of LaserGas™ II SP H2 as they apply to the oil and gas industry? Dr. Geiser: The benefits are the same as for all analyzers based on TDLAS: the ability to measure directly in the process gas without extraction and all the hassle that comes with extractive systems, and the real-time response of the analyzers for fast and efficient control loops or safety shut-downs. Probably most important, is the ability to

measure H2 without being in contact with it. A typical application is the measurement of H2 in wet Cl2. Sensors that come in contact with the gas are corroding very fast, here a contactless method has clear advantages. OGI: Can you talk about NEO Monitor’s research and development efforts? Dr. Geiser: NEO Monitors is traditionally very strong in R&D. Actually 30% of NEO Monitor’s staff is working within the technology department, that includes several PhDs and MScs in various fields like electronics, software, opto-mechanics and spectroscopy. We have been involved in many research projects funded by the European Union and Norwegian Research Council, allowing us to utilize new technologies like new laser sources first and provide guidance for the research community. Several of our products were actually results originated within such projects. This allows us to be early adaptors of new

components and be first on the market, e.g. using Interband and Quantum Cascade Lasers in our in-situ products. These lasers emit in the mid-infrared region, where many gases have their strongest absorption bands. Here, much better sensitivities can be achieved. Furthermore, some important gases do not have absorption lines in the near- but only in the mid-infrared. For oil & gas applications, probably the most important one is sulphur dioxide (SO2). OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? Dr. Geiser: It is always difficult to talk about case studies since our customers are usually very protective of their applications and process data. We have recently performed a campaign in Germany, demonstrating the feasibility of H2 measurements in dry and wet Cl2 in a Chlorine electrolysis application, but we cannot reveal any information here. Nevertheless, we have permission to talk about another exciting case study. Process control in Sulphur recovery units is the domain of extractive analysers, first gas chromatographs, later UV-based analysers. As you can imagine, if sulphur condenses in the extraction pipes, they start being clogged. We have been asked if it is possible to measure the two components needed for process control, hydrogen sulphide and sulphur dioxide, with our in-situ analysers. In this way, the high maintenance extractive setup could be replaced by low maintenance in-situ measurements. And, yes, we were able to show that it is working. The analysers were installed in October 2016 and are until today (July 2019) maintenance-free. We think this example shows how powerful in-situ analysis can be and how much potential it has in the oil and gas and other industries. OGI: Thank you for your time. • If you’d like to know more about the topics discussed in this article, and/or would like to know how NEO Monitors AS can help your operations, please contact us: Web: www.neomonitors.com Tel: +47 67974700 E-mail: neosales@neomonitors.com

“Most important, is the ability to measure H2 without being in contact with it.”


COVER STORY

Predicting Catalyst Activity and Attrition Using Laser Diffraction Particle Size Analysis Dr Anne Virden, Product Technical Specialist, Laser Diffraction/Imaging, Malvern Panalytical, UK.

Heterogeneous catalysts, where the catalyst is in solid form, enhance many of the gas and liquid phase reactions that underpin routine chemical processing. Prime examples include Raney catalysts for the hydrogenation of liquid fats, fluid catalytic cracking (FCC) catalysts for hydrocarbon processing and three-way catalysts for the in-situ treatment of car exhaust fumes. The extent to which such catalysts enhance reaction rates is directly dependent on their surface area, which for particulate catalysts is a function of particle size.

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or example, a decrease in particle size corresponds with an inversely proportional increase in surface area, and hence reaction rate. From this perspective finer particulates are considered advantageous, but there are disadvantages too such as health and safety issues, poor fluidization properties, and a tendency to agglomerate, which inhibits reaction. It is therefore necessary to balance the requirements for maximum reaction efficacy with the potential health risks and handling challenges associated with overly fine particle size. This means that there is usually an optimum particle size range for a catalyst. Laser diffraction is a widely used particle sizing technique for materials ranging from hundreds of nanometers up to several millimeters in size [1]. It is an ensemble particle sizing technique that reports a particle size distribution for an entire sample and can be applied to wet or dry dispersions both in the laboratory or on a process line. A laser diffraction measurement involves passing a laser beam through a dispersed particulate sample and measuring the angular variation in the intensity of the scattered light. Large particles scatter light at small angles relative to the laser beam and small particles scatter light at large angles. The angular scattering intensity data is then analyzed to calculate the size of the particles that created the scattering pattern using a suitable model such as the Mie theory of light scattering.

Figure 1: The Mastersizer 3000 laser diffraction particle size analyzer delivers rapid, accurate particle size distributions for both wet and dry dispersions For catalyst applications, the particle size data generated using laser diffraction can be used to calculate a Specific Surface Area (SSA) by converting the reported volume distribution into a surface area distribution, using the Hatch-Choate equations for example [2]. The general equation linking the SSA with particle

size is: SSA=6/D[3,2] where the D[3, 2] is the surface area moment mean or Sauter Mean Diameter (SMD). SSA has traditionally been determined using Brunauer-Emmett-Teller (BET) physisorption techniques; however, catalyst specialists are increasingly turning to laser diffraction techniques for faster and more efficient assessment. To this end, laser diffraction particle sizing is finding widespread application for the characterization and development of catalyst powders

Figure 2: Particle size distributions for FCC catalyst samples A, B and C measured with wet dispersion show sample B to have a much narrower particle size distribution


Case study 1 – Using laser diffraction to determine Specific Surface Area (SSA)

Figure 3: Comparison of SSA derived with BET and laser diffraction. Results show excellent linearity confirming laser diffraction as a viable alternative to BET.

The particle size distributions of three different FCC catalysts were measured using wet dispersion laser diffraction on a Mastersizer 3000 from Malvern Panalytical (Figure 1) using dispersion conditions based on standard wet method development strategies [3]. Figure 2 shows particle size results and indicates that all catalyst samples have a median particle size between 60-80 μm. Catalyst B, however, has a markedly narrower particle size distribution compared with A and C, which are relatively similar. Catalyst D[3,2] (µm) SSA (m2/kg) A

40.9

54.4

B

74.8

33.2

C

38.5

57.7

Table 1: comparison of the Sauter Mean Diameter (D) and the Specific Surface Area (SSA) of FCC catalysts A-C undertaken with wet dispersion laser diffraction Table 1 shows the calculated SSA values for each catalyst as determined from laser diffraction data. These results indicate that the SSA of catalysts A and C are similar, whereas catalyst B has a much smaller SSA. The higher SSA for samples A and C are attributable to the higher levels of fine material present which are absent from catalyst B. Figure 3 shows a comparison between the laser diffraction SSA results and analogous data produced using BET techniques. The results show excellent correlation with each another indicating that laser diffraction can be used in

place of BET to predict catalytic activity or to as a rapid quality control tool. Case study 2 – Using laser diffraction to predict particle attrition Laser diffraction can also be used to measure powders in dry dispersion. Dispersion is achieved using a Venturi which accelerates and decelerates particles in a compressed air stream to promote dispersion through particle-particle and particle-wall collisions, as well as shearing. Care must be taken to ensure that the dispersion process is not over aggressive as this can cause unwanted particle

Figure 4: Plot of Dv10 vs. dispersion pressure for Catalysts A, B and C showing particle attrition above 1 bar and agglomeration below.

attrition. To determine the optimum pressure for particle dispersion without attrition a pressure titration can be performed. This involves varying the pressure drop across the Venturi and measuring the Dv10 at each pressure. The Dv10 is used because it is most sensitive to the presence of fine particles. Figure 4 shows the results of a pressure titration for all FCC catalysts. For catalyst C the Dv50 measured with wet dispersion was approx. 40 µm (Figure 1) so the optimum dry dispersion pressure for catalyst C is 1 bar. Below 1 bar the Dv50 is greater than 40 µm, indicating the presence of agglomerates, and at higher pressures the Dv50 drops off sharply suggesting particle attrition is occurring. Pressure titrations can also help to understand the risk of attrition, an important factor for predicting the life of catalysts in fluidized bed reactors. For this purpose, the Attrition Index (AI) is commonly used and compares the Dv10 measured at low pressure (x1) to that measured at high pressure (x2), according to the following formula; AI=(x1-x2 )/(P1-P2) Catalyst B had an AI of -8.4 µm/bar, compared with - 6 µm/bar for catalysts A and C, indicating that catalyst B will be more prone to attrition and will have a shorter process lifetime. • Malvern Panalytical T +31546 534444 F +31546 534598 1. ISO 13320:2009 Particle size analysis – Laser diffraction methods. 2. T Hatch, S P Choate, “Statistical description of the size properties of non-uniform particulate substances” J. Franklin Inst., 207, 369-387 (1929) 3. “Wet method development for laser diffraction measurements” Malvern Instruments Application Note available for download from www.malvernpanalytical.com

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COVER STORY

Cyber Security: People, Process and Technology “It takes more than just technology to achieve sufficient cyber security” hen it comes to physical security, the trinity of people, process and technology is quite evident. Having a solid front door, fitted with state-of-the-art locks and an alarm system (technology), only provides security if we do not leave our keys hanging around in plain sight (people) and all agree to switch on the alarm between 22.00 and 06.00 h (process or, policies and procedures). Yet, in a world centered around technology, like oil and gas, all too often the two P-s are neglected, when cyber security is concerned. “We have a firewall, so all is well” seems to be a common mindset, despite the fact that “key management” and “alarm (settings)” are not up to standards. Or, how about having a well segregated process control system, where somehow a wireless router was connected to. The front door may be securely locked, but a simple backdoor did get installed.

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Security can equal Safety For the reasons sketched above, all three areas – People, Policies & Procedures and Technology - need balanced attention, for cyber security to work. Another aspect fairly typical for oil and gas and related to the two P-s is that cyber security gets a lower priority than safety. From a historic point of view that is not so strange, but in today’s world many cyber security issues actually are (potential) safety issues. Take the example of the wireless router on the process control network and think what could happen. Please note that, that router may have been fitted for all the best reasons and that it actually can be done in a secure manner, but if little thought was given nor countermeasures were taken, we definitely have a risky situation because of that. IT versus OT In cyber security, quite often, two standards are mentioned: the ISO 27001 and the IEC 62443. Back in the (good) old days, when IT (Information Technology) and OT (Operational Technology) were two separate worlds, the ISO standard was favorite in IT and the IEC in OT. Nowadays though, the line between IT and OT is fading and the applicability of either standard

could thereby become a topic for discussion. What many people don’t know, is that both standards actually have the same roots. Moreover, they both build on the above mentioned trinity. Of course, there are differences. Probably the clearest, technical example of that is how they deal with patches or updates. Slightly over-exaggerated, in IT

we update as often as practical and in OT as little as possible. Although (data) integrity is equally important in either field, availability is more important than confidentiality in OT, whereas in IT this is the other way around. An IT system being temporarily down because of an update is usually just annoying. Conversely, a safety system experiencing even the slightest glitch could have catastrophic consequences. Claim Bringing all the above together, our claim is that applying silos like IT, OT or not considering it as important as Safety, is affecting one’s cyber security. It deserves company wide attention and budget in way similar to safety, involving people, policies and procedures, and yes, also technology. Why a horizontal trinity? Organisational experts are likely to say that everything starts by proper policymaking. To prove that point, let us start at what is generally considered the other end, being technology. Let us place ourselves in the position of a maintenance engineer who detects a possible cyber security risk and knows of a technical solution to solve that problem. The solution consists of a “box” costing amount X, with installation costing amount Y and a

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yearly service cost of Z. Our engineer goes to his supervisor, the senior maintenance engineer, and explains the situation. The senior maintenance engineer understands the problem, but immediately senses the imminent uphill battle that lies ahead. cyber security is not in the budget, IT will need to get involved because it is not instrumentation, annual cost are under heavy scrutiny from Finance and, multiple safety related projects are on his to-do list. Even if the supervisor is as convinced as our maintenance engineer, this proposal could be dead in the water already. Fortunately, this particular supervisor won his spurs over the years and classifies it as a safety issue, knowing it will now go through the channels more smoothly. All seems to be going well and gathering the right approvals, until the proposal reaches the IT department. Similar “boxes” in the office environment cost a fraction of amount X, can be installed for far less than Y and servicing can be done by the IT department. Moreover, the supplier is not ISO 27001 certified; proposal rejected. Along comes the monthly meeting where both IT and Maintenance are present and let us assume everybody has had a good weekend. Technical arguments combined with some diplomacy triumph and our proposal goes through to purchase and finance. For the point of this situational sketch, it is probably not necessary what could possibly go wrong here. What is however evident, is that a widespread proper mindset, based on sound procedures, derived from solid policy, would have solved this cyber security issue far more easily and quickly. In other words, the cyber trinity would have worked. Policies and Procedures Some might feel that quality assurance related policies and procedures are a lot of fuss,

producing little result. However, particularly in larger organisations, writing down why, how and what you are doing, is almost the only way to make sure everybody can find the information he or she needs. Although I say “writing” in the previous sentence, information can be recorded in various manners. As long as there is clarity and consistency in who is doing what and when, the recording method for reaching that goal is of lesser importance. A video on a company’s IntraNet could be more effective than text filled pages. Whatever the form, having clear instructions, supported by commitment from higher up, certainly contributes to improving cyber security. Another contributing factor that policies and procedures have over technology, is that, if fit-for-purpose, they are less time critical than some technological solutions that may be sufficient for today, but not necessarily so for tomorrow. People Although I am not sure what will happen in the future with artificial intelligence, today’s machines do not create shortcuts, but people do. On the one hand, that is why people are better suited to perform certain activities, where machines may be better for others. Happily skipping that discussion, fact of the matter is that there will always be a human factor involved, directly or indirectly. Probably the biggest win there, in relation to cyber security, is awareness. Thoughtlessly checking a found USB stick or, clicking on an email link can be the start of an undesirable chain of events having serious implications. Structured attacks often start with actions like that and when nothing apparent happened after doing so, why would one report such a

“harmless incident”? Luckily, awareness on this topic seems to be growing, but changing default passwords in new instruments and/or network equipment is also one that involves the human factor. Likewise, disabling unused ports on such devices also greatly improves security. When everybody is aware of such facts, it is far less likely that such weaknesses form a threat. Technology Somewhat in-line with the previous paragraph, it is a good thing we have devices such as firewalls and virus scanners. They can repeatedly, quickly and consistently perform tasks, people simply no longer can. Besides prevention, detection is probably the other aspect machines are better at than humans. Increased network activity is a key sign of potential security issues. In combination with logging, these help greatly in either timely responding to threats, or troubleshooting / reversing their consequences. However, solely relying on technology to achieve cyber security is not likely to be enough. Summary Accomplishing sufficient cyber security requires a balanced involvement of people, process (policies and procedures) and technology. Under- or over investing in either, will have negative effects on one’s overall security status. When it comes to cyber security, there is no such thing as fullproof solutions nor 100% guarantees. Still, only focusing on technology will also create a false sense of security. That explains why cyber security assessments typically rely on assessing all three branches of the trinity. Component / system testing (or evaluating third party test results) plus assessment of the adequacy of policies and procedures plus interviewing / witnessing staff “in action”, preferably on-site, provides a far better insight, than more restricted methods. Moreover, in combination, they paint a picture of not only today’s situation, but also of what can be expected of the status in the near future. And lastly, again only in combination, can one achieve a cycle of continuous improvement. • Wim Volmer Technical Partner Oil & Gas NMi Certin BV www.nmi.nl nmi@nmi.nl +31 88 636 2308

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NEWS - EUROPE Total and Ifpen Team up to Accelerate Carbon Reduction R&D

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FP Energies Nouvelles (IFPEN) and Total announce that they signed a strategic R&D partnership yesterday, that includes an agreement to endow a chair at the IFP School, on carbon capture, utilization and storage (CCUS) and technologies to curb CO2 emissions. The roughly €40 million partnership covers a period of five years. The agreement has two parts: A strategic R&D partnership on carbon capture, utilization and storage (CCUS) aims to reduce the cost of infrastructure and improve the CCUS chain’s energy efficiency to secure its large-scale deployment. The partnership steps up the long-standing collaboration between Total and IFPEN by marshaling additional resources. The research will focus on fields related to new materials, process scale-up, underground carbon storage in deep saline aquifers, technical and economic feasibility studies and the quantification of environmental benefits for the entire CCUS chain. The Carbon Management and Negative CO2 Emissions Technologies to Net-Zero Carbon Future Chair will help train a new generation of international researchers and experts who will develop technologies to reduce carbon in the atmosphere. Overseen by a scientific committee comprised of world-renowned, independent experts, the chair will bring together seven doctoral and five post-doctoral researchers for five years. Following the signature of the agreement, Patrick Pouyanné, Chairman and CEO of Total, stated: “We are delighted to accelerate the R&D partnership between Total and IFPEN. We want to pool our innovation capabilities to reduce the cost of CCUS technologies and improve their efficiency — both of which are necessary for large-scale deployment. Total wants to help make the planet carbon neutral and boost the competitiveness of an industrial-scale CCUS sector.” Didier Houssin, Chairman and CEO of IFPEN, commented: “IFPEN has been actively researching carbon capture, utilization and storage technologies for nearly 20 years. Our strengthened partnership with Total will allow us to combine our teams’ skills and know-how with Total’s and thus to accelerate the deployment of CCUS technologies, which are a key solution for drastically cutting CO2 emissions.” According to the International Energy Agency’s (IEA) Sustainable Development Scenario, which corresponds to a less than 2°C rise in the global average temperature, it will be necessary to capture and store 6 billion tons of carbon by 2050. This will require developing viable, costcompetitive CCUS technologies. •

Equinor Capitalizes Shares in Lundin Petroleum

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quinor ASA has agreed with Lundin Petroleum AB to divest a 16 percent shareholding in Lundin Petroleum for a direct interest of 2.6 percent in the Johan Sverdrup field and a cash consideration of around USD 650 million. “Since 2016 we have more than doubled the value of our investment in Lundin. This transaction gives us the opportunity to capitalize on this value creation, and at the same time increase our direct ownership in the Johan Sverdrup field,” says Eldar Sætre, President and CEO of Equinor. Under the terms of the agreements, Equinor will divest around 54.5 million shares in Lundin at a price of SEK 266.4 per share. Total consideration for the divestment of shares in Lundin amounts to around USD 1.56 billion. Equinor will acquire a 2.6% direct ownership share in the Equinor operated Johan Sverdrup field for a cash consideration of USD 910 million. Through this transaction, Equinor is realizing significant value creation from its investments in Lundin Petroleum. Equinor announced its investments in Lundin in 2016 at an average weighted cost price of SEK 121 per share, adjusted for the divestment of International Petroleum Corporation. Equinor has more than doubled the value of its invested capital, including its remaining shareholding in Lundin Petroleum. Following completion of the transactions, Equinor will have a 42.6 percent ownership share in the Johan Sverdrup field and own a 4.9 percent shareholding in Lundin Petroleum. The agreement includes a contingent payment of up to USD 52 million payable to Lundin in 2025 if Johan Sverdrup proves to be at the upper end or above the indicated resource range of 2.2 – 3.2 bn boe. In agreement with Lundin, the transaction is being executed through a total return swap agreement, where the Lundin shares will be acquired by Sparebank1 Markets and subsequently redeemed. The transaction is subject to certain conditions, including customary government approval and approval in Lundin Petroleum AB’s Extraordinary General Meeting set for 31 July 2019. The Lundin Petroleum Board of Directors have expressed their unanimous support for the transaction, and the Lundin Petroleum family entities have confirmed that they will vote in favour of the transaction at the Extraordinary General Meeting. Closing of the sale of the shares in Lundin Petroleum will take place after approval by the Lundin Petroleum Extraordinary General Meeting. Closing of the acquisition of the interest in Johan Sverdrup transaction is expected by Q4 2019. •

14



NEWS - EUROPE Total Starts up the La Mède Biorefinery

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otal has started up production at the La Mède biorefinery in southeastern France, with the first batches of biofuel coming off the line. It is the final step in converting a former oil refinery into a new energies complex. Launched in 2015, the project represents a capital expenditure of €275 million. The La Mède complex now encompasses: A biorefinery with a capacity of 500,000 tonnes of biofuel per year. An 8-megawatt solar farm that can supply 13,000 people. A unit to produce 50,000 cubic meters per year of AdBlue®, an additive that reduces nitrogen oxide emissions from trucks. A logistics and storage hub with a capacity of 1.3 million cubic meters per year. A training center offering real facilities and able to host 2,500 learners a year. Together, these new activities have maintained 250 direct jobs at La Mède. As part of the site transformation, 65% of the orders to remodel the complex were awarded to local businesses, representing 800 jobs and €140 million in revenue. Total also invested €5 million in the economic development of the FosEtang de Berre region, notably by supporting initiatives to create jobs, attract industrial projects and support contractors. That’s five times as much as a typical revitalization agreement. The biorefinery can produce 500,000 tonnes of hydrotreated vegetable oil (HVO), a premium biofuel. La Mède will produce both biodiesel and biojet fuel for the aviation industry. It was specifically designed to process all types of oil. Its biofuels will be made: 60 to 70% from 100% sustainable vegetable oils (rapeseed, palm, sunflower, etc.). 30 to 40% from treated waste (animal fats, cooking oil, residues, etc.) to promote a circular economy. As part of an agreement with the Government in May 2018, Total has pledged to process no more than 300,000 tonnes of palm oil per year — less than 50% of the total volume of raw materials needed — and at least 50,000 tonnes of French-grown rapeseed, creating another market for domestic agriculture. All the oils processed will be certified sustainable to European Union standards. In addition, as part of its palm oil procurement process, Total is taking an extra step by introducing strengthened control of sustainability and respect for Human Rights (see below). “I’d like to thank the teams for all their hard work these last four years to convert our La Mède refinery,” said Bernard Pinatel, President, Refining & Chemicals. “Biofuels are fully renewable and an immediately available solution to cut carbon emissions from ground and air transportation. When produced from sustainable raw materials, as at La Mède, they emit over 50% less carbon than fossil fuels. Our biorefinery will allow us to make biofuels in France that were previously imported.” •

Eni Extends Collaboration for Transporting Algerian Natural Gas Until 2029

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laudio Descalzi, CEO of Eni, and Slim Feriani, Tunisian Minister of Industry, signed the new agreement for transporting Algerian natural gas through Tunisia, in the presence of the Prime Minister of Tunisia, Youssef Chahed. The agreement follows the ones reached with Sonatrach last May, in relation to the purchase of gas and transport in the Strait of Sicily (the TPMC system) and completes the contractual framework that allows Eni to import Algerian gas into Italy. With this agreement, Eni undertakes to operate the pipeline for the next 10 years, through its subsidiary Trans Tunisian Pipeline Company (TTPC), ensuring necessary reinvestment for modernising infrastructure and taking advantage of the exclusive rights to the entire transport capacity. Built in the early 1980s and strengthened subsequently over several phases, the trans-Tunisian pipeline consists of two lines, 48 inches wide and around 370km long, from the Algerian-Tunisian border near Oued Saf to the Cap Bon headland, as well as five compression stations. With a transport capacity of approximately 34 billion m3/y, it plays a key role in Italian and Tunisian energy supply and will continue to do so. It contributes to the diversification of sources and to the energy transition in the Italian market. Finally, the agreement represents a further confirmation of Eni’s long-standing commitment to North African countries, not only in hydrocarbon exploration and production, but also in managing transport infrastructure, marketing petroleum products, the chemical sector and producing energy from renewable sources. •

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EUROPE - NEWS More Oil in the Oseberg Area

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quinor has, on behalf of the Oseberg partners, made a profitable oil discovery related to Oseberg Vestflanken. The well was drilled by the Askepott rig and the discovery will soon be put on stream via the new, unmanned and remote-operated H platform on the Oseberg field. Included in the Oseberg Vestflanken phase 2 project, the exploration extension well 30/6-H-9-T4 proved a 112-metre oil column in a segment that has not been tested before. Oil was proven in the Statfjord formation in southern parts of the Alpha structure on Oseberg. Reservoir characteristics are excellent with high oil saturation. Recoverable resources are estimated at 22 million barrels of oil. The partners will consider water injection to further increase recoverable volumes. “This discovery improves the Oseberg Vestflanken resource base. It can be put on stream with limited investments and adds significant value to the partnership. We are combining drilling of exploration and production wells to achieve highly profitable exploration wells at low cost,” says Gunnar Nakken, vice president for the operations west cluster of Equinor. •

Eni and Coldiretti Sign MOU for Joint Projects Oceanteam Solutions Extends Subsea Cable Storage Contract with Cable Manufacturers

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he 6-months extension plus two times 3 months options follows a successful two years of cable storage in Oceanteam’s 1100t carousel at its cable storage facility in Velsen, the Netherlands. This extension is part of a contract that also includes long-term storage of client’s subsea cables in Oceanteam’s 5300t carousel. In 2017, Oceanteam Solutions was awarded a contract to supply its client with port facilities, loadouts and storage of subsea cables at company’s own cable storage facility in Velsen, the Netherlands. Oceanteam Solutions also provides experienced cable handling crew. “We are proud to continue supporting our client by storing their valuable assets at our strategically located and secured deepwater base, from which we can offer a full service package consisting of cable storage, cable handling and cable transport.” says Lars van ‘t Kruijs, of Oceanteam Solutions. Oceanteam’s cable storage facility is situated at the North Sea port of IJmuiden (NL), with North Sea wind farms right on its doorstep and in the direct proximity of Amsterdam. The harbour is only 1.5 NM inward from sea and berths are safe and free of tidal movement. The facility, with both outdoor and indoor storage, is a fenced in compound under surveillance and benefits from Oceanteam’s vast network of skilled cable handling crew and has most specialist cable transfer, storage and installation equipment readily available. •

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he President of the Confederazione Nazionale Coldiretti, Ettore Prandini, and the Chief Executive Officer of Eni, Claudio Descalzi, in the presence of the Minister of Economic Development, Labour and Social policies, Luigi Di Maio, have today signed a Memorandum of Understanding outlining key areas for collaboration with regards to the circular economy. The agreement will enable Eni and Coldiretti to implement joint initiatives in the following fields: using agricultural biomass to produce advanced biofuels for the energy sector, biochemicals, and byproducts – also for zootechnical purposes – or inputs for agriculture like biofertilisers; researching and promoting crops that can be used as alternative sources for green refineries that do not compete with the food chain; sustainably managing products at the end of their lifespans by minimising the amount of waste generated with regards to the food industry, transport and packaging: generally promoting sustainable agriculture that focuses on optimising energy consumption, protecting environmental factors and promoting the sustainable use of water, as well as using digital tools and renewable technologies. The two parties will also examine potential initiatives designed to capitalise on industrial synergies and pool facilities, assets and expertise. This will involve, for example, looking at integrated agri-industrial systems by producing cooperative models based on types of crops that are suitable for use as raw materials for industrial cycles in the green chemistry sector, enhancing waste and by-products; they will share marginal land for crops that can be used to produce advanced biofuels, including biomethane; they will consider integrating the recovery of brownfield sites that have been redeveloped for photovoltaic purposes and biomethane production, as well as joint energy needs in the agricultural sphere; they will perform phytoremediation crop studies and trials and look at the possibility of integrating waste water and purified water from industrial sites with the demand for irrigation systems in the agricultural sphere. Eni and Coldiretti will also consider potential sustainable development initiatives both in Italy and abroad. They will look at projects designed to diversify local economies, notably in Africa, with a view to giving local populations the expertise they need to develop crops using advanced technologies that have less of an impact on the local ecosystem; in the countries in which Eni already operates, they will look at projects designed to support local agricultural networks with a view to developing crops that can be used to produce biofuels or support industrial initiatives. •

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NEWS - NORTH AMERICA

Finboot Secures Cornerstone Repsol Investment and Blockchain Solution Contract

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inboot, a leading software innovation group creating enterpriselevel products, announces that it has secured an investment from global energy giant Repsol as part of its latest fundraise, in addition to securing a commercial contract with the company. Repsol has acquired a c.8% stake in the company through its strategic investment fund. The funds will be used to support the enhancement and extension of Finboot’s product offering in line with the company’s growth strategy. Finboot facilitates and simplifies the adoption of blockchain technologies into daily business operations, focusing on industrial supply chains. It is one of the first tech startups to deliver value in the enterprise blockchain arena and overall distributed ledger ecosystem, with the capability to verify products’ sustainability credentials. Finboot predominantly focuses on the Oil & Gas, Chemicals, Consumer Goods/ Retail and Automotive sectors, with plans to extend its industry reach. Finboot will supply Repsol with its blockchain technology solution BlockLabs, which was developed by Finboot as a pilot during Fundación Repsol’s startup acceleration programme in collaboration with Repsol Technology Lab. The solution uses blockchain technology to improve the certification process of petrochemical products, thereby driving supply chain efficiencies. It is powered by Finboot’s flagship product MARCO, a blockchain agnostic SaaS which effectively combines business workflows with blockchain core functions. MARCO accelerates ROI for enterprises due to the combination of governance, standards, interoperability and technology, with proof of concept being delivered in just weeks. Repsol estimates that the solution will save approximately €400,000 per annum, even with a limited rollout. Blockchain technology has the potential to accelerate the complex mix of processes that comprise industrial supply chains, enabling secure data sharing and improving auditability. This, in turn, could result in dramatic time and costs savings, and potentially even drive revenue growth. Relatively few enterprises have unlocked the full potential of digital technologies, yet companies that digitise their supply chains can expect to boost annual earnings growth by 3.2% – the largest increase from digitising any business area. Nish Kotecha, Chairman and Co-Founder of Finboot, said: “We are delighted to have received this double endorsement from Repsol, a global leader in the energy industry. The investment cornerstones our latest fundraising round, while the contract is testament to the capabilities of our technology and its ability to support and enhance efficiencies across enterprises. This partnership represents a significant milestone for Finboot and augurs well for our future growth ambitions.” Derek Goodwin, Head of Entrepreneurship and Tech FDI at the Department for International Trade, added: “It is a feather in Finboot’s cap that it has attracted this investment from a company of Repsol’s calibre. Our Global Entrepreneur Programme is committed to supporting the development and growth of innovative companies, of which Finboot is a prime example, and we are proud to have worked with this exciting business since its nascent stages. We very much look forward to seeing what the future holds.” •

20

Eni Starts Production from Area 1 Offshore Mexico

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ni has started the early production phase from the Miztón field in Area 1, located in the Campeche Bay offshore Mexico. This is the first step in the development of Area 1, estimated to hold 2.1 billion of oil equivalent in place (90% oil) in the Amoca, Miztón and Tecoalli fields. Eni acquired Area 1 in a competitive bid round in September 2015. Production from the Miztón field platform, located in 34 meters of water depth, is sent through a multiphase sealine to Eni’s Onshore Receiving Facility (ORF) in Sanchez Magallanes, State of Tabasco. After separation at ORF, production is delivered to Pemex’s San Ramón plant for treatment. Production has started from the Mitzón 2 well that has shown a very good productivity index; the early production phase now is expected to produce up to 15,000 barrels of oil per day. Full field production will start in early 2021 utilizing a Floating Production, Storage and Offloading facility (FPSO) and reaching a plateau of 100,000 barrels of oil equivalent per day. The Plan of Development for Area 1 also includes two additional platforms on the Amoca field and one on the Tecoalli field. Eni Chief Executive Officer Claudio Descalzi commented: “We have achieved production startup in less than two and half years after Eni started its first well in Area 1 and in less than one year from the approval of the Plan of Development. This is in line with the expectations of the Mexican Government to increase the country’s overall production. Eni is the first international company to start offshore production in Mexico after the Energy Reform, and we look forward to continue working with the Mexican authorities”. The production startup from Area 1 further confirms Eni’s distinctive fast track approach to efficient upstream development projects. In May 2019, Eni signed with the Tabasco State Government a Memorandum of Understanding aimed at identifying and developing educational, health and socioeconomic projects, in order to cooperate and contribute to the government plans of improving the conditions of the more disadvantaged communities in the Tabasco State. Eni is present in Mexico since 2006 and established its wholly owned subsidiary Eni Mexico S. de R. L. de C. V. in 2015. Currently Eni holds rights and is Operator in six exploration and production blocks in the Sureste Basin. In addition, in October 2018 Eni agreed to an interest swap with Lukoil to acquire a non-operated participation in another block in Mexico. •


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NORTH AMERICA - NEWS Dominican Republic in First Oil Licensing Round. Offers 14 Blocks

Noble Energy, CNOOC, Shell, Repsol, seismic players CGG, PGS, Westerngeco, and offshore driller Transocean. •

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he Dominican Republic on Wednesday launched its first ever oil and gas licensing round, offering 14 offshore and onshore blocks up for bidding to interested oil companies. The blocks on offer are located in the Cibao, Enriquillo, Azua, and San Pedro basins of the Carribean island nation. Energy intelligence group Wood Mackenzie is assisting the country’s Ministry of Energy and Mines with the evaluation, planning, and execution of the licensing round. Juan Agudelo, director of upstream consulting at Wood Mackenzie, said the exploration performed in the country since the early 20th century indicated the presence of a working petroleum system. He said: “Blocks will be awarded based on work commitments for the first exploration phase. The Dominican Republic is incentivizing the acquisition of geological and geophysical data, while providing flexibility to explorers on how to conduct activities during the contract exploration phase. Operators will have between eight to 10 years to explore and must drill one well.” “This round aims to boost exploration of oil and gas in the Dominican Republic. The country currently doesn’t have any operators searching for new fields. If the rounds attracts explorers, it will bring investment and help to de-risk the oil and gas potential in the country,” Agudelo said. According to the Ministry of Energy and Mines, interested companies need to send documentation by October 13 for prequalification, after which the eligible oil firms will take part in the auction. The ministry on Wednesday hosted a launching ceremony in Houston, and according to the ministry, the companies that attended the opening of the round were, among others, Anadarko, Apache, ExxonMobil,

Borr Drilling Files for $50 Million IPO on NYSE

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orr Drilling, an offshore drilling company that operates 27 rigs, has filed a registration statement with the SEC in an attempt to raise up to $50 million in an initial public offering. Borr Drilling said on Wednesday that it filed a registration statement with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering of its common shares on the New York Stock Exchange (NYSE). According to the company, it intends to raise from $10 million to $50 million in the offering. The company has not yet determined the number of common shares to be offered. Borr added that the proceeds of the offering were intended for general corporate purposes. It intends to have its common shares listed on the NYSE under the symbol ‘BORR’, but following the registration statement filing and the application for listing on NYSE, Borr will continue to be listed under the ticker ‘BDRILL’ on the Oslo Stock Exchange where it has been listed since 2017. It is worth noting that Goldman Sachs and DNB Markets are the joint bookrunners on the deal. Pricing terms were left undisclosed. •

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NEWS - NORTH AMERICA

Hess Shows Continued ESG Commitment

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ess Corporation (NYSE: HES) published its 2018 Sustainability Report today, providing a comprehensive review of the company’s strategy and performance on environmental, social and governance programs and initiatives “We believe sustainability is fundamental to our long-term strategy and performance and supports our purpose to be the world’s most trusted energy partner,” CEO John Hess said. “Our commitment to sustainability starts with our Board of Directors and senior management and is reinforced at every level of our company.” Hess Corporation’s 22nd annual sustainability report has been prepared in accordance with the Core level for sustainability reporting under the Global Reporting Initiative (GRI) Standards. GRI is an independent organization that provides the world’s most widely recognized sustainability reporting and disclosure standards. Preparation of the report was also informed by recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD) and oil and gas industry metrics from the Sustainability Accounting Standards Board (SASB). The report has been third-party assured by ERM Certification and Verification Services. Highlights from this year’s report include: Safeguarding people and the environment: By working closely with employees and contractors to continuously improve our safety performance, over the past 5 years Hess has reduced its workforce recordable incident rate by 23% and its workforce lost time incident rate by 33%. In 2018, the company achieved the lowest severe safety incident rate in its history – a 43 percent reduction from 2017 – and reduced the number of process safety events for the fourth consecutive year. Reducing its carbon footprint: Hess has aggressive targets for greenhouse gas (GHG) emission reductions, and over the past 11 years has reduced its Scope 1 and 2 equity GHG emissions by approximately 64%. The company is on track to meet its 2020 targets to decrease flaring and GHG emission intensities from operated assets by 50% and 25%, respectively, from 2014 levels. In 2018, Hess achieved leadership status in the prestigious CDP Global Climate Analysis for the 10th consecutive year. Conducting portfolio-specific carbon asset risk scenario planning: In line with the Task Force on Climate-Related Financial Disclosures framework, in 2018, Hess tested the robustness of its portfolio through 2040 under multiple energy supply and demand scenarios. The company’s asset portfolio remains resilient and its pipeline of forward investments provides strong financial returns even under the ambitious GHG reductions assumed within the International Energy Agency’s Sustainable Development Scenario. Making a difference in local communities: Hess’ community investments support programs in a variety of areas with a particular focus on education, workforce development and environmental stewardship. In 2018, Hess led the development of North Dakota’s Intelligent Pipeline Integrity Project, or iPIPE, to advance new technologies that prevent and detect pipeline leaks. In Guyana, Hess is working with its joint venture partners to build capacity among the local workforce and supplier companies including the Centre for Local Business Development established by the joint venture in 2017. Maintaining top-quartile ESG performance: In 2018, Hess was named to the Dow Jones Sustainability Index North America for the 9th consecutive year and toCorporate Responsibility Magazine’s 100 Best Corporate Citizens list for the 11th consecutive year. •

Mcdermott Announces Agreement with Cameron LNG

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cDermott International, Inc. (NYSE: MDR) announced it and its joint venture member Chiyoda have reached an agreement with Cameron LNG related to the construction of its LNG liquefaction project in Louisiana. The agreement includes the following key components: Provides the opportunity for incentive bonus payments for achieving construction and commissioning milestones on specified dates for Trains 2 and 3 Aligns the start dates for any schedule-related liquidated damages to be consistent with the current schedule Fully aligns and strengthens the commitment of CCJV to complete the project in accordance with the current schedule “Over the past year, we have further strengthened our relationship with Cameron LNG and our leadership, oversight, execution, forecasting and reporting on the project. In the last few months, the joint venture project team has made tremendous progress, including first liquid and first cargo from Train 1,” said Samik Mukherjee, Group Senior Vice President, Projects. “We are extremely pleased with the agreement, which is a testament to the progress and the strong performance of our project team. It was crafted with the full support and collaboration of Cameron LNG to optimize the timing and cost-effectiveness of the remaining work – and it does so in a way that we believe will benefit all involved parties.” The favorable financial impact of the agreement is incorporated in McDermott’s previously issued guidance for 2019. Since the initial award in 2014, McDermott and Chiyoda have provided the engineering, procurement and construction for the Cameron LNG project. The project includes three liquefaction trains with a projected export capacity of more than 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day. As previously disclosed, the project was approximately 90 percent complete as of the end of the first quarter of 2019. The company expects initial production from Trains 2 and 3 in the first quarter of 2020 and the second quarter of 2020, respectively. •

24


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NEWS - SOUTH AMERICA Ecuadorian Plaintiffs End Fraudulent Litigation Against Chevron

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group of Ecuadorian plaintiffs whose litigation against Chevron Corporation (NYSE: CVX) has been exposed as a fraud and bribery scheme by courts in the United States and elsewhere has ended its Canadian lawsuit against the company. Following dismissals of their claims in Argentina and Brazil, findings against them in the United States and Gibraltar, and a ruling in The Hague that the Republic of Ecuador’s failure to prevent the continuation of the fraudulent litigation scheme violated international law, the plaintiffs ended their only remaining lawsuit by dismissing the Canadian case. The plaintiffs further agreed to pay costs to Chevron. Chevron had recently moved to dismiss the Canadian suit on the grounds that its continuation would be an abuse of the country’s legal system, a waste of its judicial resources, and contrary to international law. The Ecuadorian plaintiffs and their counsel did not oppose Chevron’s motion to dismiss and instead consented to the unconditional and final dismissal of the lawsuit. “Chevron is pleased that the promoters of the fraudulent scheme have apparently realized that no legitimate court would enforce the judgment that they purchased in Ecuador. Chevron will continue its efforts to hold the lawyers and investors behind this fraudulent scheme accountable,” said R. Hewitt Pate, Chevron’s vice president and general counsel. Because Chevron never operated in Ecuador or had assets there, those seeking to profit from the corrupt Ecuadorian judgment have unsuccessfully attempted to enforce it in Argentina, Brazil, and Canada. Courts in Brazil and Argentina previously rejected enforcement attempts in those countries. With all attempts to date to enforce the Ecuadorian judgment having been defeated by Chevron, the key remaining proceeding in connection with the dispute is Chevron’s arbitration against the Republic of Ecuador before an international tribunal in The Hague. The tribunal last August held that the Republic of Ecuador had violated its obligations under international law in issuing the corrupt $9.5 billion judgment. Chevron is currently seeking to recover from the Republic of Ecuador costs it has incurred to expose and defend against the fraud perpetrated against it. Also pending are contempt proceedings brought by Chevron in federal court in New York against adjudicated racketeer and suspended lawyer Steven Donziger, who led the failed efforts to enforce the fraudulent Ecuadorian judgment. Last year, Donziger was suspended from the practice of law after having been found by U.S. federal courts to have violated the Racketeer Influenced and Corrupt Organizations Act (RICO) by engaging in multiple acts of extortion, money laundering, wire fraud, witness tampering, bribery, and obstruction of justice to procure the Ecuadorian judgment. On May 23, 2019, Donziger was held in contempt of court for his breach of the RICO judgment, which prevented him from profiting from the fraud, by selling interests in the Ecuadorian judgment to investors and using a large portion of the proceeds on personal expenses. The court further ordered Donziger to transfer to Chevron profits traceable to the Ecuadorian judgment. The Canadian decision is the latest in a string of judicial victories in Chevron’s worldwide defense against the Ecuadorian judgment. This past April, the Supreme Courts of two countries – Canada and the Netherlands – ruled in favor of Chevron in related proceedings. On April 4, the Supreme Court of Canada declined to hear an appeal of a decision that had dismissed all claims seeking to enforce the Ecuadorian judgment against an indirect subsidiary of Chevron in Canada. On April 12, the Supreme Court of the Netherlands rejected the Republic of Ecuador’s attempts to nullify decisions of the international tribunal in The Hague that ordered Ecuador to take all steps necessary to prevent enforcement of the Ecuadorian judgment against Chevron anywhere in the world. •

26

Harvey Gulf Opens Subsidiary in Guyana

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.S.-based marine transportation company Harvey Gulf has opened an office in Georgetown, Guyana.

The company has this week established a subsidiary named Guyana Offshore Vessel Service Incorporated. The company is targeting 100 percent Guyanese recruitment. Harvey Gulf International Marine CEO Shane Guidry, president of the American Chamber of Commerce of Guyana Zulfikar Ally, petroleum geologist at the Department of Energy Marissa Foster, Minister of Public Infrastructure David Patterson, and the Mayor of Georgetown Ubraj Narine were among those in attendance at the opening ceremony. Shane Guidry said that the initiative began four months ago when the company started to explore global expansion. The company signaled its intention to have local staff trained in its United States facility. Guyana energy department’s petroleum geologist Foster said that embedding new recruits in existing facilities was beneficial to not just learn the job but to experience the standard of work and level of safety required in the industry. AMCHAM president Ally noted that the company’s presence in Guyana would lift industry standards in the oil and marine sectors. As for Harvey Gulf, so far mostly focused on U.S. Gulf of Mexico, has recently expanded its range to include Guyana and Trinidad and Tobago. The company owns and operates fast supply and utility vessels, offshore supply vessels, and multi-purpose vessels that specialize in deep-water and ultra-deep-water operations. •


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NEWS - AFRICA Africa Oil Announces Jethro-Lobe Spud Offshore Guyana

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frica Oil Corp. announced that drilling operations have commenced offshore Guyana with the spudding of the first exploration well on the Jethro-Lobe prospect on the Orinduik Block. View PDF version. Jethro-Lobe was spud at 22:45 (local Guyana time) on July 4, 2019 using the Stena Forth drillship. Partners on the Orinduik Block comprise Tullow Guyana B.V. (“Tullow”, Operator, 60% Working Interest (“WI”), Total EP Guyana BV (“Total”, 25% WI) and Eco (Atlantic) Oil & Gas Ltd. (“Eco”, 15% WI). Africa Oil holds an approximately 18.8% equity interest in Eco. The partners estimate the well will take up to 40 days to drill. Jethro Lobe is the first prospect to be drilled as part of a two-well program and will be immediately followed by the drilling of an exploration well on the Joe prospect. Jethro Lobe will test Lower Tertiary aged turbidites and will also be drilling down into the Cretaceous targets. The well will be drilled in approximately 1,350 meters of water. The success by ExxonMobil and their partners in the neighbouring Stabroek Block has aided the geological assessment of the many similar channel systems in the Orinduik Block. There are currently fifteen strong leads and prospects identified on the Orinduik Block. Orinduik sits adjacent and updip to Stabroek where thirteen discoveries have been announced. • Jethro-Lobe Spud, Offshore Guyana

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co (Atlantic) Oil & Gas Ltd. (AIM: ECO, TSX-V: EOG), the oil and gas exploration company with licences in highly prospective regions in Guyana and Namibia, is pleased to announce that drilling operations have commenced offshore Guyana with the spudding of the first exploration well on its Jethro-Lobe prospect on the Orinduik Block. Jethro-Lobe was spud at 22:45hrs (Local Guyana time) on Thursday 4th July 2019 using the Stena Forth drillship. Eco and its partners on the Orinduik Block, Tullow Guyana B.V. (“Tullow”) (Operator, 60% Working Interest (“WI”)) and Total E&P Guyana B.V. (“Total”) (25% WI), estimate the well will take up to 40 days to drill. Jethro Lobe is the first prospect to be drilled as part of a two-well programme and will be immediately followed by the drilling of an exploration well on the Joe prospect. Eco is fully funded for its share of up to six potential exploration or development wells on the Orinduik Block in addition to the Jethro Lobe and Joe exploration wells, as announced on 10 June 2019. •

NNPC Concludes Payment of Cash-Call Arrears to Mobil

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igerian National Petroleum Corporation (NNPC) signed a Cashcall Repayment Agreement with its Joint Venture partners to defray cash-call arrears within a period of five years, the Corporation has fully settled the total amount owed to Mobil Producing Nigeria (MPN) with a payment of $833.57m. The Group General Manager, Group Public Affairs Division of NNPC, Mr. Ndu Ughamadu, stated this in a press release made available to press men on Wednesday. According to Mr. Ughamadu, the Managing Director of NNPC, Dr. Maikanti Baru, who spoke at a commemorative close-out ceremony to mark the conclusion of NNPC/MPN Cash Call Repayment Agreement, disclosed that the feat was a product of determination and hard work. Dr. Baru stated that NNPC management came up with the novel cashcall exit strategy to boost investors’ confidence and grow the nation’s oil and gas industry, adding that the payment did not in anyway undercut remittances to the Federation Account as it was achieved through revenue from incremental production. “It is gratifying to note that within two years of this agreement, the NNPC/MPN JV significantly executed in incremental activities that generated adequate proceeds to liquidate the $833.57 million cash-call arrears, whilst ensuring that revenue flow from the JV to the Federation remained stable”, the GMD stated. He explained that with the close-out of the repayment agreement, the entire incremental production which is over 45,000 barrels of oil per day (bopd) has been migrated to Federation’s equity and would invariably lead to an increase in revenue to the Government. •

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AFRICA - NEWS Africa Oil Corp. to Partner with Azinam on Block 3B/4B, Offshore South Africa

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zinam Limited (“Azinam”), the Seacrest Capital-backed South West African-focussed oil & gas exploration company, announced that Azinam and Africa Oil Corp. (“Africa Oil”), have entered in an agreement under which Africa Oil shall acquire a 20% participating interest in Block 3B/4B Orange Basin, offshore South Africa. The acquisition is subject to customary regulatory consents, following which Africa Oil will become the operator of Block 3B4B. Azinam will retain a 20% participating interest post completion. Licence partners Ricocure (Pty) Ltd’s participating interest shall remain unchanged at 60%. Block 3B/4B is located in the Deep Western Mid-Orange Basin South Africa, extending from circa 120 to 250 kilometres offshore. The block covers an area of 17,581 square kilometres and lies in water depths ranging from 300 to 2,500 meters. Block 3B/4B sits at the centre of an exciting emerging play which is being explored by a number of international Oil & Gas companies. 3B/4B contains play types and prospects similar to those being targeted by Majors in adjacent blocks. During the Initial License Period of 3 years Azinam, Africa Oil and Ricocure shall carry out a regional subsurface review of existing seismic, geological and engineering data and may reprocess parts of the existing 3D data in order to high-grade the exploration prospects on the Block. Daniel McKeown, Managing Director of Azinam, commented: “Azinam is delighted to welcome Africa Oil Corp. to the Block 3B/4B partnership. This extensive block lies at the centre of an exciting emerging exploration play which is being actively pursued by the international oil & gas industry. Partnering with Africa Oil on the Block 3B/4B brings extra resources, complementary experience and technical expertise to the Block’s Initial Period exploration programme. Following the Brulpadda discovery earlier this year, momentum is building in the South Africa and Namibia exploration scenes, with several key wells to be drilled by industry in the coming year. Azinam has the largest licence position offshore South West Africa (South Africa and Namibia) with an extensive seismic database, giving it a strong regional understanding. Azinam’s two-year objective is exploit current low drilling costs to unlock the prospectivity of these high-potential regions of the Orange, Walvis and Lüderitz basins by participating in a number of high-impact exploration wells. Through partnering with like-minded companies, keen to inject pace into exploration programmes, we can create value for host countries, stakeholders and shareholders.” •

Eni Awarded a New Exploration and Production License in Ghana

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ni (70%) and its partner Vitol (30%) have been awarded rights to Block WB03, located in the medium deep waters of the prolific Tano Basin, offshore Ghana. This result allows Eni to further consolidate its presence in the Country. Eni will be the Operator of the license and besides Vitol the Joint Venture will include the Ghana National Petroleum Corporation (GNPC) and a local registered Company that will be identified during the phase of contract finalization. The Contract award is subject to approval from the Authorities. This award comes as an outcome of Ghana’s first international competitive bid round, in which 5 Blocks have been put on offer in water depths ranging from 100 to 4,400 m. In Ghana’s Tano Basin Eni owns rights to the Development Areas of Sankofa and Gye Nyame as well as to the Exploration and Production area of CTP-Block 4. The new block is located approximately 50km south-east from the FPSO John Agyekum Kufuor (JAK) that is currently producing oil and gas from Sankofa Field. The proximity of these infrastructures will became synergic in case of new discoveries in Block 3. Ghana is among the key Countries for Eni’s organic growth. The company has been present in the Country since 2009 and accounts currently a gross production of about 70,000 barrels of oil equivalent per day. •

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NEWS - MENA IMF Executive Board Concludes 2019 Article IV Consultation with Oman

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n June 7, 2019, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation [1] with Oman.

Since the 2014 oil price shock, Oman’s policy efforts have aimed at strengthening the fiscal position, enhancing private sector-led growth and employment, and encouraging diversification. Economic activity started to recover last year, and the overall fiscal and current account deficits improved somewhat, reflecting mainly higher oil prices. However, macroeconomic vulnerabilities continued to rise, with government and external debt increasing further, while some fiscal reforms were delayed. Higher vulnerabilities have led to new sovereign credit rating downgrades and increases in sovereign risk premia. Economic activity is gradually recovering. Staff estimates that, after reaching a low of ½ percent in 2017, real non-hydrocarbon GDP growth has increased to about 1½ percent last year, reflecting higher confidence driven by the rebound in oil prices. Furthermore, oil and gas production increases boosted hydrocarbon GDP growth in 2018 to an estimated 3.1 percent. These developments brought overall real GDP growth to 2.2 percent. Non-hydrocarbon growth is projected to increase gradually over the medium term, reaching about 4 percent, assuming efforts to diversify the economy continue. Preliminary budget execution data indicate an improvement in the overall fiscal balance last year. The fiscal deficit is estimated to have declined to about 9 percent of GDP from 13.9 percent of GDP in 2017, reflecting higher oil revenues. However, gross government debt increased by 7 percent of GDP last year (to 53.5 percent of GDP). Preliminary data indicate that a substantial pickup in exports, primarily hydrocarbons, combined with an estimated decline in imports, helped reduce the current account deficit by about 10½ percentage points of GDP (to 4.7 percent of GDP). External buffers have remained broadly stable, with an increase in central bank reserves broadly offsetting a decrease in the value of external assets in the State General Reserve Fund, Oman’s sovereign wealth fund. Private sector credit growth has somewhat moderated, and interest rates have increased due to U.S. monetary policy normalization. Banks benefit from high capitalization, low non-performing loans, and strong liquidity buffers. Executive Board Assessment [2] Executive Directors welcomed steps taken over the past few years to enhance private sector growth, reduce spending growth, diversify government revenue, and improve the business environment. They noted that economic activity had started to recover last year and that the fiscal and current account deficits improved. Notwithstanding these efforts and the recovery in oil prices, Directors indicated that Oman’s public and external vulnerabilities have continued to grow. Given the challenging external environment and regional uncertainty, Directors thus called for a deeper fiscal adjustment to maintain confidence and ensure fiscal and external sustainability, coupled with continued structural reforms to diversify the economy, improve productivity and enhance private‑sector‑led growth. While welcoming the authorities’ plans to continue with fiscal consolidation, they called for an expeditious introduction of VAT and measures to adjust government expenditure. They also encouraged the authorities to lay out and implement an ambitious medium‑term fiscal adjustment plan, based on reforms to tackle current spending rigidities, streamline public investment, and raise non‑hydrocarbon revenue, while prioritizing measures that limit the impact on growth and place more of the adjustment on those who can best shoulder it. Noting the importance of enhancing fiscal governance and transparency, Directors also suggested that a formal medium‑term fiscal framework would help anchor fiscal consolidation and limit implementation risks. In that context, the authorities’ plan to carry out a Public Expenditure Review with the support of the World Bank would be useful.

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Directors concurred that the exchange rate peg to the US dollar had delivered low and stable inflation and remained appropriate. With external buffers, albeit currently adequate, projected to continue to decline, Directors noted that the recommended fiscal adjustment would be key to bring the external position more in line with fundamentals, bolster external sustainability, and support the currency peg. Notwithstanding strong financial sector soundness indicators and ongoing efforts to further strengthen its resilience, Directors called for continued attention to regulation and supervision and further efforts in enhancing the AML/CFT framework, which would help support correspondent banking relationships. Directors commended the ongoing implementation of the Tanfeedh Program with a focus on economic diversification and job creation. They encouraged further reforms to address labor market rigidities including by better aligning public‑sector compensation with that of the private sector and by addressing skills mismatches through higher quality education and training. They also encouraged further SME development including through better access to finance, to raise productivity. •



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NEWS Kværner Asa: Second Quarter and Half-Year Results 2019

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vaerner’s second quarter and half-year result are in line with the financial targets for 2019. The EBITDA result for the Field Development segment was NOK 132 million in the second quarter compared to NOK 118 million in the same quarter last year. The corresponding EBITDA margin was 6.9 percent in the last quarter, up from 6.4 percent in the second quarter of 2018. Current tender work is progressing for both oil and gas projects and contracts within other segments such as offshore wind power. With solid results and a number of contract opportunities, Kvaerner maintains the target to increase annual revenue by around 40 percent from 2018 to 2023. We find that Kvaerner’s ability for predictable deliveries has become a concept among many customers. We are pleased that for the 33rd consecutive quarter we deliver a result that is in accordance with or above what we have announced to the market. We maintain our expectations for 2019, with revenues for the year of more than NOK 8 billion. We also continue to work towards our goal of increasing revenue from just over NOK 7 billion in 2018, to more than NOK 10 billion by 2023,» says Karl-Petter Løken, Kvaerner’s CEO. Revenue and EBITDA for the Field Development segment for the first half of 2019 were NOK 4 067 million and NOK 269 million, compared to NOK 3 789 million and NOK 323 million in the same period in 2018. Kvaerner has a strong financial position with no interest-bearing debt as of 30 June 2019. Cash and bank deposits at the end of the quarter were more than NOK 2.7 billion, compared to NOK 3 billion at 30 June 2018. Kvaerner concludes the second quarter with an order backlog of NOK 9 billion after having won orders for 732 million in the period. A year ago, the order backlog was NOK 11.2 billion.

This spring, Kvaerner has provided solid deliveries to Equinor’s Johan Sverdrup Utility and Living Quarter Platform and also the wellhead platform for Aker BP’s Valhall Flank West. For Kvaerner in total, the high level of activity in the first half of the year will continue throughout the second half. Our order backlog is sound, with all projects progressing well. As announced in the beginning of 2019, we are expecting our customers to pass important decision gates for their prospects this autumn. We believe that a few contracts of varying size may be awarded in the second half of the year, but expect most of the near term larger prospects to be awarded in 2020 and 2021. We are therefore in the process of positioning Kvaerner for several of these opportunities. An example of this is that we over the past six months have prepared tenders for several important offshore wind power projects, and there are more prospects we will develop tenders for over the next quarters,» says Løken. The Board of Directors has proposed no semi-annual dividend distribution. A robust balance sheet and cash reserve are important strengths in Kvaerner’s commitment in winning important new contracts and expanding business into growth segments. It also provides flexibility to pursue strategic development opportunities. •

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NEWS - RUSSIA & CIS Neste to Sell Its Fuel Retail Business to PJSC Tatneft in Russia

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este Corporation has signed an agreement to sell its fuel retail business consisting of 75 fuel stations and a terminal in St. Petersburg region to PJSC Tatneft, one of the leading integrated oil and gas companies in Russia. The divestment has no impact on Neste’s Marketing & Services’ operations in Finland and the Baltic countries. “Neste targets to become a global leader in renewable and circular solutions. The divestment of Russian fuel retail business will enable us to focus on our strategic priorities,” says Neste’s President and CEO Peter Vanacker. “Over the years we have developed the operations in St. Petersburg area into a successful business with approximately 1,000 employees who are known for their outstanding customer service and commitment to high health, safety and environmental standards. We are happy that Tatneft is keen to develop our fuel retail business in Russia further,” continues Vanacker. “Neste has an extensive network of over 1,000 stations in Finland and in the Baltic countries. We focus on developing our solutions and services in Finland and the Baltic countries, where we can supply Neste MY Renewable Diesel and other high-quality fuels from our own refineries,” says Panu Kopra, Executive Vice President of Marketing & Services business unit. Nail Maganov, the General Director of Tatneft, said: “Tatneft’s retail network is one of the five largest Russian chains with more than 600 own petrol stations. The retail sales strategy focus is on the realization of high-grade fuels produced at our state-of-the-art refinery TANECO and provision of high quality service to our customers, including convenience store services (i.e., café, shops). The acquisition of Neste’s retail business in the North Western Russia, which is one of the highest priority regions for Tatneft, is a significant contribution to the achievement of our strategic goals, including the marketing of approximately 50% of our own produced fuels domestically. One of the key priorities in developing and operating Tatneft’s retail network is to minimize environmental impact. Neste is one of the leaders in this field in Russia, which would allow us to expand and promote the best practices in this area throughout our operation”. Pursuant to a separate agreement between Tatneft and Neste following the acquisition the retail network will continue to operate under the Neste brand for up to 5 years. The parties have agreed that the transaction price shall remain confidential. The transaction will not have a material effect on Neste’s and Tatneft’s respective financial positions. The completion of the divestment is subject to the approval of the Russian competition authorities and the transaction is estimated to be completed by the end of 2019. •

Total Launches Phase 3 of the Dunga Field, Kazakhstan

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otal and its partners have approved the launch of Phase 3 development of the onshore Dunga field in the Mangystau Region of western Kazakhstan. Phase 3 of the Total-operated field will consist of adding wells to the existing infrastructure and upgrading the processing plant to increase its capacity by 10% to 20,000 barrels of oil per day by 2022. This will add production of more than 70 million barrels of reserves. The development has been made possible thanks to the approval by the Government of the Republic of Kazakhstan of a 15-year extension of the Production Sharing Agreement (PSA) for the field, originally signed in 1994 and due to expire in 2024. The project requires a $300 million investment and will create 400 more direct jobs in the region at the peak of construction activity. “This low-investment-cost-per-barrel development maximizes the field’s potential and extends plateau production,” said Arnaud Breuillac, President, Exploration & Production at Total. “This new development phase, combined with the Dunga field license extension, helps unlock 70 million barrels of additional reserves, which represents a significant development for Kazakhstan.” The Dunga oil field is operated by Total (60%), alongside Oman Oil Company (20%) and Partex (20%). •

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MENA - NEWS Sonatrach and Eni CEO Meet in Algiers

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onatrach and Eni Chief Executive Officers, Rachid Hachichi and Claudio Descalzi, met today in Algiers to review the progress made on the activities taking place in the country. Sonatrach and Eni confirmed the intention to accelerate the development of new oil&gas projects in North Berkine, that will lead to a significant increase in national production. The project is composed of two phases: the first, related to oil development, has seen the start up last May, just three months after the entry into force of the farm in agreement on the block; the second one, related to gas development, will see the start up for the end of September 2019 after the completion of the BRN-MLE pipeline.

ADNOC Closes on Pipeline Infrastructure Investment with KKR and Blackrock

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he Abu Dhabi National Oil Company (ADNOC) announced today that it has closed its pioneering pipeline infrastructure investment agreement with BlackRock and KKR. The transaction was originally announced in February of this year when KKR and BlackRock signed an initial investment agreement to invest $4 billion into the midstream pipeline assets. Following this announcement the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) agreed to invest a further $300m. The ADRPBF investment is due to close in the next quarter. The KKR and BlackRock investment, which was successfully funded through their global infrastructure funds and financed by a syndicate of international banks, was oversubscribed during its syndication. The innovative leasing investment structure marks the first time that leading, global and domestic institutional investors have deployed longterm equity capital into key midstream infrastructure assets of a national oil company in the UAE. This agreement will see BlackRock and KKR acquire a combined 40% stake in a newly formed entity, ADNOC Oil Pipelines – Sole Proprietorship LLC (‘ADNOC Oil Pipelines’), with ADRPBF acquiring 3% and ADNOC holding the remaining 57%. ADNOC Oil Pipelines leases ADNOC’s interest in 18 pipelines, transporting stabilized crude oil and condensate across ADNOC’s offshore and onshore upstream concessions, for a 23-year period. The entity receives a tariff payable by ADNOC, for its share of volume of crude and condensate that flows through the pipelines, backed by minimum volume commitments. Sovereignty over the pipelines and management of pipeline operations remain with ADNOC. Ahmed Jasim Al Zaabi, Group Director Finance and Investment at ADNOC said: “The successful closing of this pioneering transaction and the oversubscribed financing is a clear vote of confidence by the global investment and finance community in both the UAE and ADNOC as an attractive investment destination. It also highlights the quality of ADNOC’s midstream pipeline assets and our innovative approach to structuring value-creating investment opportunities for our partners and investors.” The collection of 18 pipelines being leased by ADNOC Oil Pipelines has a total length of over 750km, and a total aggregate capacity of approximately 13,000 Mbblpd (gross). These assets represent key midstream infrastructure for Abu Dhabi’s energy ecosystem, allowing for the vast majority of Abu Dhabi’s crude oil production to be transported from ADNOC’s onshore and offshore upstream assets, to Abu Dhabi’s key take-away outlets and terminals for conversion to other high-value products, or on to global energy markets. The pipelines have underlying long-term minimum volume commitments and are supported by stable crude oil production from ADNOC Onshore and ADNOC Offshore – the leading onshore and offshore operating companies in ADNOC with global IOCs as JV partners, each with an average remaining concession life of over 35 years. •

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The project is an example of “fast track” arising from a joined effort of Sonatrach and Eni, based on the shared strategy for an accelerated time to market as well as on the availability and know-how of Sonatrach’s contractor companies called to work on the project for their advanced technology and methodological approach which employs streamlined procedures that allows for fast operations. The first phase of the oil project in North Berkine will reach a plateau production of 10.000 gross barrels for the end July 2019, while the development of the gas project will reach an incremental production of 6 mln cubic meters and 7000 barrels of associated liquid by the end of the year. •


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MENA - NEWS Dana Gas Received $48 Million from Egypt in June

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ana Gas PJSC (“Company”), the Middle East’s largest regional private sector natural gas company, has received payments of $48 million (AED 177 million) from its operations in Egypt in June. These collections comprise $38 million in payments from the government (of which $30 million as Dana Gas’ share of the industry payment) and $10 million from the sale of the second El Wastani condensate shipment in 2019. The industry payment is part of the Government’s ongoing efforts to reduce its overdue receivables position to zero by the end of 2019. Since 2018 the Company has continued to make steady progress in reducing its outstanding balance of overdue receivables. Total receipts from Egypt in 2018 reached $208 million, reducing the total receivables sum to $ 140 million by year end, the lowest level since January 2011. The Company has received a total of $78 million in payments during H1 2019, further reducing the Company’s receivables by 38% to $125 million. Dr Patrick Allman-Ward, CEO of Dana Gas, commented: “Receiving $38 million from the Egyptian Government in June shows steady progress for the Government in achieving its target of paying all the overdue receivables by year-end. These payments will provide funds to execute our current onshore work-over programme and contribute towards the costs of drilling Merak-1, our deep-water exploration well in Block 6. Drilling operations are progressing well and we are expecting to have results in the third quarter this year.” Dana Gas commenced drilling operations on 20 May 2019 at its Merak-1 well, offshore Egypt. The location is in 755 meters of water in the North El Arish concession (Block 6). This block is lies in the Eastern Mediterranean (Levantine) Basin where other world-class giant natural gas discoveries have been made in recent years. •

Saudi Aramco and Baker Hughes Sign MOU

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audi Aramco and Baker Hughes, a GE company (BHGE) signed a memorandum of understanding to create a new joint venture facility in Saudi Arabia to manufacture non-metallic materials which will be used in a variety of areas of the energy industry. This agreement supports Saudi Aramco’s strategy to play a leading role in accelerating the deployment of non-metallic materials globally. The focus on non-metallic materials is intended to add to the efficiency and reliability of operational assets by reducing the effects of corrosion. The joint venture will initially focus on non-metallic reinforced thermoplastic pipes as a first and critical step towards developing such capabilities in Saudi Arabia. Welcoming this partnership with BHGE, Saudi Aramco’s Senior Vice President for Technical Services, Ahmad Al Sa’adi said: “This partnership with BHGE is another step in Saudi Aramco’s journey towards expanding the use of innovative non-metallic materials in its operations. Saudi Aramco has successfully deployed more than 5,000 kilometers of non-metallic pipes, resulting in a significant increase in efficiency and reduction in maintenance and replacement costs across the company’s operations. Producing these materials in the Kingdom would also unlock opportunities for local manufacturers and facilitate knowledge transfer.” Neil Saunders, CEO of BHGE Oilfield Equipment, said: “As a full stream oil and gas service and technology provider, we have a deep background driving non-metallic product development that will benefit a wide range of industries. Saudi Aramco’s vision to expand their product development in the region aligns with our vision to support innovation and manufacturing in Saudi Arabia.” Non-metallic applications are deployed in various industries, including oil and gas, construction, automotive, packaging and renewable energy to manufacture products including flowlines, downhole production tubing, vessels, pumps, and cooling towers, all of which are manufactured from non-metallic materials such as plastic, carbon fiber, and glass fiber. Saudi Aramco recently opened the Non-metallic Innovation Center in the United Kingdom in collaboration with the UK-based Welding Institute and the National Structural Integrity Research Centre to conduct research and development of non-metallic technologies. The center collaborates with leading academic institutions and manufacturers to develop, test, and market new products. •

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NEWSBRIEF

Greater Focus on Digitization International Rotating Equipment Conference 2019 The 4th International Rotating Equipment Conference – Pumps, Compressors and Vacuum Technology, will focus on how digitisation is changing pump, compressor and vacuum technology.

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he conference will take place on 24 and 25 September 2019 in Wiesbaden, Germany, and Dr. Matthias Fankhänel, former senior vice president, Centers of Technical Expertise at BASF SE, will explain in his plenary lecture how manufacturers and users of pumps, compressor and vacuum technology can jointly master the challenges posed by digitization. Christoph Singrün, managing director of the VDMA Pumps + Systems and Compressors, Compressed Air and Vacuum Technology Association said

that, in addition to the plenary lecture, there will be a greater focus on digitisation throughout the conference, with sessions on Digital Transformation, Data Management, Condition Monitoring and Reliability. He added that the VDMA trade associations Pumps + Systems and Compressors, Compressed Air and Vacuum Technology have created a so-called Industry 4.0 Administration Shell - with the scientific support of the Technical University of Cologne. From this, the “digital twin”, a first OPC UA Companion Specification for pumps and vacuum pumps is derived, enabling communication from pump to pump (horizontal) and pump to control (vertical). A demonstrator at the conference will show how they work. Visitors, manufacturers and operators will learn impressively what digitisation can actually achieve. Around 750 participants from over 30 countries attended the “International Rotating Equipment Conference” in 2016, the world’s leading conference for pumps, compressors and vacuum technology. The venue is the RheinMain CongressCenter in Wiesbaden. The extensive conference program with almost 70 presentations in 28 sessions emphasizes the application relevance. In addition, it offers a trade exhibition on around 700 square metres as well as opportunities for sponsors to participate. Available online at: https://www.introequipcon.com. •

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“Spark” Signs Agreement to Establish Oilfields Supply Center

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ing Salman Energy Park (SPARK) and Dubai-based Oilfields Supply Center Ltd. (OSC) today signed an agreement to establish OSC as an anchor tenant at SPARK, an energy city megaproject which will cement Saudi Arabia’s position as a global energy, industrial and technology hub. In collaboration with Saudi Aramco, OSC will develop a business incubator, called the Common User Supply Base (CUSB) to support the oil and gas industry in the Kingdom and the region, as well as help accelerate the growth of small and medium-sized enterprises (SMEs) in the energy sector. OSC plans to invest around $450 million over the next two years, contributing to SPARK’s objective of localizing more than 300 new industrial and service facilities. The CUSB will be an industrial facility that provides industrial buildings of various sizes to host companies and supply them with integrated services such as logistics, technical engineering services and business support. The center will be the first of its kind in Saudi Arabia and the largest in the region with a footprint of over 1 million square meters and a potential expansion of an additional 500,000 square meters. The agreement was signed by Mohammed Y. Qahtani, SPARK Chairman and Saudi Aramco Senior Vice President for Upstream, and Muneeb Abdulrazzaq Al Kazim, General Manager of Oilfields Supply Company Saudi Arabia, in the presence of Amin H. Nasser, Saudi Aramco President and CEO, and Iqbal Mohammad Abedin, CEO of Oilfields Supply Center Ltd. •


NEWS Equinor Drills Duster near Johan Sverdrup Field

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he Norwegian company drilled the well around one kilometer west of the Johan Sverdrup oil field and 200 kilometers west of Stavanger.

According to the Norwegian Petroleum Directorate, the objective of the well was to prove petroleum, as well as to investigate potential reservoir rocks in several levels: Upper Jurassic (intra Draupne formation sandstones), Upper Triassic (Skagerrak formation), Upper Permian (the Zechstein group) and weathered/fractured basement rock. The well was drilled about 110 meters into basement rock, of which 77 meters of weathered and fractured basement rock with poor to moderate reservoir properties. In the upper part of the basement, the well encountered traces of oil in a zone of about 19 meters. At this time, it is impossible to determine whether the oil is producible or simply residual. No sedimentary rocks were encountered in other levels. Pending new information and interpretation of collected data, the preliminary classification is that the well is dry. The well was not formation-tested, but extensive volumes of data have been acquired and samples have been taken. It will now be permanently plugged and abandoned. The well has yielded important information about the potential for reservoir properties in the basement rock, as well as pressure communication in the area. This is the second exploration well in production license 502, which was awarded in APA 2008. Water depth at the site is 105 meters. The well was drilled to a vertical depth of 1988 meters below the sea surface, and was terminated in the basement rock. The well was drilled by the Transocean Spitsbergen drilling rig, which will now proceed to the shipyard before well operations start up on the Snorre field in the northern part of the North Sea. •

TechnipFMC Picks President of New Ventures

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ilfield services company TechnipFMC has appointed a new president of new ventures.

TechnipFMC said on Monday that Catherine MacGregor joined its executive leadership team as the new president of new ventures. Doug Pferdehirt, TechnipFMC chief executive officer, said: “In our rapidly changing and extremely competitive environment, the ability to expand our possibilities and to develop our business in new directions is a critical asset for TechnipFMC’s future. “This is why we have decided to create New Ventures – to explore opportunities to expand our portfolio through innovative models and new business lines. Catherine will be in charge of defining and implementing this new, promising approach.” MacGregor previously spent 23 years with Schlumberger in a succession of leadership positions involving global operational activities. These included being president of Drilling Group, president of the Characterization Group, area president for Europe and Africa, president of Wireline and VP of human resources. •


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EXPLORATION & PRODUCTION

Composites Make Inroads into Higher Volume, More Demanding Offshore Oil and Gas Applications Oil and Gas Innovation speaks with Charles Tavner, COO, Magma Global, on how they’ve help solve some of the challenges faced by many producers in relation to the use of subsea steel pipe. This is particularly an issue in the deepwater production centers of the world, such as Brazil, West Africa and Gulf of Mexico. Using thermoplastics in these particular environments is increasingly gaining acceptance. We speak to Mr Tavner to know more about how they help deal with these issues while also helping producers save on costs.

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

Charles Tavner with reel of m-pipe in Portsmouth, UK.

Tavner: Magma has been in business since 2010. We were founded with the objective of solving the challenges faced by oil and gas operators when using steel subsea pipe. Our product was originally conceived for the deepwater markets around the world: Brazil, Gulf of Mexico and West Africa. Our standard product has been deployed for water, oil and gas service. This has predominantly been as flowlines and jumpers as operators have been familiarising themselves with the product. We’ve had product in sour service and in deepwater. It’s taken a long time to lay the foundations with the technology and to generate acceptance that thermoplastic composite pipe is a good solution. That confidence is there now and it’s simply a matter of qualification for particular environments before our product is used as deepwater production risers. OGI: What are some of the problem’s companies face in relation to steel and flexibles? Tavner: The main challenges for steel and flexibles are with corrosion from oilfield chemicals and sea water. This corrosion is often made worse when you add high temperatures and pressure. In deepwater there are also collapse issues. Steel based solutions, including flexibles, can be used in all these circumstances. The trouble is the structures can get very large in order to withstand the conditions, and in some cases the pipe needs replacing after a very short time in service. In Brazil, the new pre-salt fields have particular challenges with Co2 combined with Hydrogen sulphide and seawater, which causes stress corrosion cracking. Its likely to be the first market that deploys a deepwater riser that depends on thermoplastic carbon fibre. OGI: Could you talk a bit about Magma’s m-pipe solution? m-pipe is flexible and light weight which impacts installation and subsea infrastructure design.


m-pipe deployed as deepwater drilling riser auxillary line.

Tavner: m-pipe is a flexible pipe made in continuous long lengths from two top performing materials: carbon fibre and PEEK polymer. It is 1/10 the weight of an equivalent steel pipe or non-bonded flexible. The PEEK means the pipe can handle operating temperatures from -60 to 200 degrees centigrade. The carbon fibre structure means it can handle up to 20ksi. OGI: What are the applications for m-pipe? Tavner: m-pipe is particularly suited to deepwater risers. It has also been proven for flowlines, jumpers, flying leads and interventions systems. It is particularly suited where there are one or more challenges for conventional solutions. OGI: How is m-pipe manufactured, which range of diameters is it available in, and finally how is it deployed? Tavner: Unidirectional carbon fibre and PEEK are combined in a tape. This tape is fused together in a fully automated robotic process to form a fully bonded structure with a smooth bore. PEEK is the highest performing thermoplastic polymer available. Due to its resistance to heat, oilfield chemicals and permeation PEEK has a long history of application for use in critical components. We can modify the lay of the tape angle to optimise flexibility, stiffness and strength. As a result m-pipe requires relatively small quantities of material to deliver the required performance. It is available in continuous lengths of up to 6,000m depending on the diameter and thickness of the pipe. Our longest lengths currently available are in diameters of 1.75” to 6” with shorter discrete

lengths available in 8”. The product is flexible so it can be spooled for easy transportation and deployment from reels. OGI: Could you talk a bit about how, if an operator works with Magma, they can achieve cost savings? Tavner: Magma has been able to build a TCP pipe that is higher performing than our competition, yet lower cost per meter. This has been achieved by streamlining the supply chain with our partner Victrex, optimising the wall thickness of m-pipe and removing key sources of wastage in our automated manufacturing process. Studies by our customers including Equinor, Subsea7, Chevron, Total and Petrobras have shown 30% to 65% total project cost savings using m-pipe for both jumpers and flowlines. Compared to equally rated steel or flexible pipe, the light weight and strength gives commercial advantages when pipe, fabrication, transportation and installation are all taken into account. When flow rates, maintenance and replacement issues due to sour service corrosion, hydrate buildup, erosion and hydrogen embrittlement are included, the whole-life project cost savings reach impressive figures. OGI: Finally, could you enlighten our readers of a

Carbon fibre and PEEK pipe automated production uses robotic lasers.

case study where you helped a client with your solutions? Tavner: Risex is Transocean’s patented twist and lock ‘undressed’ drilling riser design. Risex is rapidly deployed and is coupled to continuous spooled auxiliary lines which must be highly robust yet flexible. Transocean trialled m-pipe as a continuous open water auxiliary line on Transocean Discoverer Clear Leader in the Gulf of Mexico in November 2017 to see if it could withstand the loads and behave as needed. An LMRP was lowered to 4,000 feet using a conventional drilling riser. m-pipe was reeled out from Magma’s Integrated Deployment Package (IDP). The auxiliary line was connected in less than two minutes and then tensioned to ensure noncontact with the riser in a range of current conditions. It was fantastic to see first-hand m-pipe behaving exactly as we said it would do. The flexibility required to spool the pipe for transportation and deployment, coupled with extremely high demands for tension strength, led Transocean to conclude that m-pipe is currently the only pipe available that can meet its requirements for auxiliary lines for Risex. The trial successfully derisked the design architecture. Transocean is currently developing the other Risex components for use on a future vessel and we now have an exclusive partnership with them for the development and supply of continuous spoolable composite auxiliary lines for deepwater drilling. OGI: Thank you for your time. • If you’d like to know more about the topics discussed in this article, or would like to know how Magma Global can help your operations, please contact: Web: https://www.magmaglobal.com Tel: +44 (0)23 9387 2800 E-mail: info@magmaglobal.com

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EXPLORATION & PRODUCTION

Elastomers for Harsh Environments Oil and Gas Innovation sits down to have a chat with Frank Schleuter, Director Business Development Oil and Gas, of Gummiwerk KRAIBURG GmbH & Co. KG to talk about their rubber and silicone compounds as they apply to the oil and gas industry. KRAIBURG has been active in all sectors of the oil and gas industry for over a decade now, so it’s important to hear their perspective as rubber is becoming increasingly vital to the industry as we go forward.

OGI: Could you start by explaining Gummiwerk KRAIBURG GmbH & Co. KG credentials and experience in terms of your products and services for the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its reach? Schleuter: Gummiwerk KRAIBURG is a leading and global manufacturer of rubber and silicone compounds, develops and produces highly customized solutions for various customer demands and markets for over 70 years now. KRAIBURG rubber and silicone compounds are used in the automotive sector, in machine construction, oil and gas, the roller industry and by numerous manufacturers of moulded rubber components. As a leading supplier, KRAIBURG also offers the largest diversity of a compound manufacturer with multiple manufacturing facilities.

Frank Schleuter, Director Business Development Oil and Gas, of Gummiwerk KRAIBURG GmbH & Co. KG

We are active in the oil and gas industry for over 12 years now, delivering our compounds mainly into upstream but in mid and downstream areas of the business as well.

highly qualified employees. This is supported by a variety of elastomer, chemical and processing engineers and technicians. All these specialists are more than happy to give competent advice in every aspect, related to rubber technology.

Constant, high quality manufacturing helps guarantee the durability and performance for today‘s and tomorrow‘s challenges in the oil and gas industry.

OGI: Rubber is used everywhere, could you elaborate a bit on the different ways your solutions are applied in the oil and gas industry?

A decisive factor for this quality and our success is our workforce, consisting of more than 400

Schleuter: KRAIBURG quality compounds are custom solutions used in a number

of drilling, production, and down-hole applications, which are suitable for all processing methods in the rubber industry. Our elastomers are regularly exposed to high temperature/high pressure (HT/HP), drilling, completion and production fluids or solids in highly abrasive conditions. The requirements resulting from these harsh environments must be found in the performance characteristic of each individual compound. This means that our elastomers have to accomplish certain properties like extrusion resistance, rapid gas decompression, dynamic properties, extremely high resistance to media, good wear parameters (abrasion resistance and structural strength), HP/HT and much more… Typical application areas where you find our elastomers are BOPs, packers (mechanical and swellable), power-sections for mud motors and o-rings and seals. OGI: Could you talk a bit about your extensive portfolio of elastomer solutions? Schleuter: We have more than 4,500 active compounds in place and more than 30k in total on available recipes. For every conceivable application and every product KRAIBURG has been developing high-quality rubber compounds, custom engineered to specific customer requirements.

Gummiwerk KRAIBURG GmbH & Co. KG in Germany.


Gummiwerk KRAIBURG black rubber compounds. This includes rubber compounds for all types of formed products, including expertise in rubber/ metal and fibre composite applications. For applications in which the compounds are not exposed to aggressive media or high temperatures, standard rubber types such as EPDM, SBR, NBR and NR can be used. These types of rubber have good physical properties which allow for custom processing. As the conditions for use of modern components are becoming more and more complex, we also offer high-performance elastomers, which can satisfy these needs, such as ACM, AEM, HNBR, (F) VMQ, FKM or FFKM. Rubber will continue to be an indispensable product with widespread applications in the future. That is why we at KRAIBURG see the development of new rubber materials as a special endeavor. Our goal is to meet the growing demands of the markets with creativity and technical expertise. OGI: Why is it so important for companies to use the right rubbers, polymers and elastomers for industries that have a high requirement for temperature and chemical exposure? Schleuter: Rubber is not a material in the conventional sense, but rather a base substance. This substance is combined with numerous additives prior to vulcanisation. In addition to the base substance, all rubber compounds also contain fillers, plasticisers, processing aids, anti-ageing agents or pigments. An elastomer compound therefore consists of an average of 10 to 20 components. Only then it is referred to as a rubber compound Therefore, it is our first priority to understand customers application to provide a reliable, long lasting and durable compound which fits exactly to his needs. Since compounding finds itself in the very beginning of the supply chain, we raise awareness to be involved in a product development in an early stage and to deploy our full expertise for critical areas of application, like temperature and chemical exposure. The point is that an elastomer has to withstand the temperature or chemical exposure of a product within its integrity range, to grant a failure free operation and to support our customers success story. OGI: When working with companies that have

their assets in such extreme environments, could you explain why quality is such an important factor when using elastomer compounds, and what requirements and standards can you expect from Gummiwerk KRAIBURG? Schleuter: Our customers value the consistently high quality of our compounds and of our customer service. That is why we at KRAIBURG believe in well-founded expertise and competence. KRAIBURG compounds are continuously tested and carefully monitored by our quality control standards. This is essential to the success of our customers and is subsequently confirmed by regular internal and external audits, as well as certification processes. We achieve KRAIBURG’s high quality standards through integrated process technologies and reliable, experienced employees. Modern test methods and resilience analysis of the results allow KRAIBURG to constantly optimise and develop our compound recipes. Our test methods are based on the characteristics in the relevant DIN and ISO standards. Test methods of the American Society for Testing and Materials (ASTM) are also used. In addition, we have developed in-house testing methods that we carry out in close coordination with the customer for specific products and applications. Another important point is the material

management and the use of high-quality materials for our compounds. Long lasting relationships to our material vendors assure the availability of requested material. OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? Schleuter: Performance characteristics and processing are the main fields of interest when it comes to help a customer. As a partner for customers in the oil and gas sector, we work with them to develop and modify the optimal rubber compound. But let us return to the origin of your question. The involvement of hydrogen sulphide (H2S) in combination with temperature was an urgent topic we took care of for a customer. This is a positive example where we developed an elastomer for this particular need, which helped the customer to produce a safety critical part for his equipment. We generally support our customers in every aspect, continuously improving and customizing to their individual needs, in order to meet the challenges of the future. OGI: Thank you for your time. • About Gummiwerk KRAIBURG Gummiwerk KRAIBURG GmbH & Co. KG is a company of KRAIBURG Holding GmbH & Co. KG and currently employs more than 400 people. Gummiwerk KRAIBURG, a leading manufacturer of rubber and silicone compounds, has been developing and producing highly customised solutions for the demands of customers and markets for more than 70 years. KRAIBURG rubber and silicone compounds are used in the automotive sector, in machine construction, oil and gas production, the roller industry and by numerous other manufacturers of moulded rubber components. If you’d like to know more about the topics discussed in this article, and/or would like to know how Gummiwerk KRAIBURG can help your operations, please contact: Gummiwerk KRAIBURG GmbH & Co. KG E: oilandgas@kraiburg.de W: www.kraiburg-rubber-compounds.com

“An elastomer compound consists of an average of 10 to 20 components.”

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EXPLORATION & PRODUCTION

A World Leader in FPSO Solutions Yinson – as one of the world’s leading Floating, Production, Storage and Offloading (FPSO) facilities and services providers has a mission to Passionately delivery powerful solutions. With our diversified geographical presence and extensive engineering and operational expertise, we have a main fleet of five FPSOs and one FSO, complemented by four Offshore Support Vessels (OSV) and an oil tanker. We are a full-fledged FPSO company, with an excellent track record of project execution and operations.

FPSO JAK.

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e provide integrated services for the offshore oil and gas industry. We design and construct vessels, then lease them, while also providing operations and maintenance services. FPSO units operate 24 hours a day, 365 days a year, withstanding harsh weather conditions and the ravages of the open sea. At Yinson, we are proud to have maintained a 5-year average fleet uptime of 99.8% and an excellent safety record. New Projects Two of our units are currently in project phases, as such we would like to share more information about the background and highlights of these projects: FPSO Helang and FPSO AbigailJoseph. FPSO Helang Yinson was awarded the contract to refurbish and supply an FPSO to the client: JX Nippon Oil & Gas Exploration (Malaysia) Limited. The existing FPSO ‘’Four Rainbow’’ was selected for this project as a donor vessel to be refurbished and supplemented with the required additional equipment, transported to site and finally installed and operated by Yinson on a lease basis. This FPSO has a design life of 20 years without dry-docking from start of field production operations.

FPSO Helang.

Our requirements are to perform the following services: •

Convert Four Rainbow to a fit-forpurpose FPSO unit;

Tow the FPSO unit to site, moor at location, hook-up and commission the FPSO facilities;

Operate and maintain the FPSO unit at location for the duration of the contract

This project was signed at the end of 2018 and is nearing completion.

The Naming Ceremony for FPSO Helang is set to take place on 25th July 2019 at our shipyard partner’s quayside in Qidong, China, where the vessel is currently undergoing final conversion works. The ceremony is a significant milestone in this journey and we look forward to celebrating the naming and eventual sail away. FPSO Helang will be our first deployment on home soil. Our operations office in Miri, Sarawak is fully operational, and we are hopeful that the vessel will achieve early delivery. Outlined below are some key project highlights: •

The project is in the most critical phase for construction, mechanical completion and onshore commissioning. We are still on track for FPSO installation on 15th September 2019 and handover date on 1st December 2019;

Project has attained approximately 5.72 million man-hours without LTIs;

Construction completion;

Phase 1 mooring installation was completed and is now ready to receive FPSO Helang;

FPSO Helang will be leaving Cosco Qidong on the 15th August with 5-7 days stay at anchorage for final testing. Estimated time of arrival in Malaysia is 2nd September;

First oil expected Q4 2019.

activities

are

nearing


FPSO Allan, to be converted and renamed as FPSO Abigail-Joseph. FPSO Abigail-Joseph Yinson was awarded the contract to supply an FPSO to client First E&P at the end of February 2019 to operate on the Anyala and Madu fields, about 45 km off the Niger Delta coast, Nigeria. This is the first greenfield project developed by an indigenous Nigerian oil company. The Anyala field is the major oil-bearing field in the OML 83 and 85 asset. OML 83 covers an area of 125 km2 with the Anyala field being the main discovery within the acreage. The water depth is approximately 50m and shall be designed so that dry docking will not be required during the 15 years design life. OML 85 has an area of 521 km2 and the Madu field is presently the main discovery in the concession. The water depth at Madu is approximately 25m, Madu is 22.5 km North West of the Anyala field. It is not often that we are able to reuse a unit from our own fleet in a new project, however it so happens that the timing of FPSO Allan finishing its contract in Gabon, matched well with the start of this new project. In addition to the fact that Allan is a well maintained FPSO, this allows it to be converted to the field with the minimal amount of refurbishment to the vast majority of the existing systems, gaining strong schedule advantage: •

The FPSO has a full maintenance history record and a full set of documents available from its conversion 10 years ago and beyond as a trading vessel. This builds confidence in the condition of the vessel and the fact that it has been well maintained an operated for its life as an FPSO. It also has a full operating crew on board who have many years experience of operating the unit. This history and continuity of some key personnel together with the introduction of local Nigerian FPSO operators will give the unit a strong advantage through refurbishment schedule into start up and operation.

We are optimistic of the outlook as FPSO Allan, which completed its charter in January 2019, will be redeployed as FPSO AbigailJoseph for operations at the Anyala and Madu Fields. The vessel is currently sailing to Singapore, where it will dock at Keppel Shipyard for conversion works. Here are the project highlights so far: •

Project and vessel team working well on detailed multi discipline shipyard preparation scope;

Work progressing on demolition, hydrojetting, painting, valve removal and vessel manway overhauls;

Vessel is expected into shipyard around 25th July;

First oil expected Q1 2020.

Units in Operation In other news for Yinson with regards to our units in operations: FPSO John Agyekum Kufuor (FPSO JAK) FPSO JAK reached nameplate production as planned in 2019 with 58,000 barrels of oil production and nominated gas export to shore with a remarkable uptime. FPSO JAK has now become one of the major suppliers of gas to the Ghanaian power grid. Yinson management was also proud to celebrate 2 years LTI free operations on JAK since sail away on March 1st 2016 from Keppel shipyard along with 7 years LTI free operations for FPSO Adoon late 2018. FPSO Adoon Addax Petroleum has extended our contract for FPSO Adoon for an additional four years, until 16th October 2022 with an estimated contract value of USD137.5 million. We are proud of our team for maintaining excellent uptime and health and safety records; bolstering the client’s confidence in Yinson. Conclusion

FPSO Adoon.

Yinson recently participated in a number of FPSO project tenders in a bid to broaden our market share. With our strong track record and healthy balance sheet, we are optimistic that we are able to compete alongside other global FPSO operators for the bids that we have entered into, particularly in the Brazil and African region. We look forward to sharing with you the outcomes of these bids in the near future. • Web: www.yinson.com

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PROCESSING

Next Generation Productivity Oil and Gas Innovation speaks with TrendMiner, who’s goal has been to deliver innovative software that helps the people in their industry. They do that by providing an analytics solution that gives their clients immediate results. It’s called TrendMiner. TrendMiner helps companies to optimize their production processes, increase plant productivity and improve the effectiveness of their equipment. We learn more about this fascinating solution below.

OGI: Could you start by explaining TrendMiner’s credentials and experience in terms of your products and services for the oil and gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its reach? TrendMiner: TrendMiner is a Software AG company that provides a self- service analytics platform for the process industry. We started serving the process manufacturing industry more than 10 years ago. As engineers with experience in the petrochemical and oil & gas industry, we were well aware of the need for a solution that would help process and asset engineers to improve operational performance with use of big data analytics. Analyzing, monitoring and predicting process and asset performance has historically always been done with model-based technology – and that’s where we are fundamentally different. TrendMiner analytics achieves this goal using pattern recognition and machine learning. This means that it can be implemented quickly without a training phase for the data. This approach is of great value to companies in the oil & gas industries, where people who can train mathematical models are often scarce – but people who can understand visual patterns are quite common. By giving engineers a selfservice analytics solution, we help them improve operational excellence and contribute to overall plant profitability. Over the past ten years, TrendMiner has rapidly grown into a leading self-service industrial analytics solution provider, active around the globe and in many industries. The Oil & Gas industry takes an important portion of our yearly revenue, both in upstream and downstream. Based on hundreds of use cases

and many companies rolling out TrendMiner throughout their entire organization, we developed our best practices approach for making our customers successful with selfservice analytics. During onboarding we work on practical use cases proving immediate value, which forms the basis for further adoption throughout the entire organization. OGI: Could you explain to our readers why it’s so important for engineers and operators to monitor trends in relation to their assets? TrendMiner: Advanced analytics is not new and using sensor generated time-series data to search for potential improvements neither. First instinct is to analyse this data is by asking data scientists to do their magic, but data modeling projects tend to take a long time and data scientists are overbooked and there is a shortage in the market to get them. On the other hand data scientists have great data analytical expertise but fall short on process knowledge. This also lead to large multidisciplinary teams to improve operational performance, which extends the project duration. As a result the 1 or 2% of most critical assets are addressed and monitored with the use of advanced analytics. This

leaves a huge potential to improve operational excellence. So what about the other 98% of assets that can benefit of advanced analytics for improving reliability and predicting maintenance? The sensor generated data is there but not tapped into enough, because the engineers and operators are not data scientists. They are very well aware of using sensor generated time-series data to search for potential improvements of the production process. But doing this with MS Excel or traditional trend clients of their historian is inefficient and inaccurate. What is needed are easy to use tools to quickly browse through decades of time-series data, visually detect or use simple filters to find periods of interest and use modern techniques to find root causes of process anomalies (influence factors and recommendations). After determining periods of best operational behavior, fingerprints can be made to monitor realtime process performance. This also includes monitoring performance of assets within their best operating zones. In this way process and asset engineers can cover a large part of the 98% of assets themselves and quickly contribute to further improvements of the production process. OGI: Can you explain how predictive analytics works? TrendMiner: With self-service analytics there is no need to create a cost intensive data model. The insights into your process and asset behaviors are based on a wealth of historical and real-time data. The basis for predicting future behavior is by using

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historical data. By applying pattern recognition at lightning speed TrendMiner shows how the live production process is likely to evolve based on past behavior. The software calculates possible trajectories of the process and predicts process variables and behavior before they happen. This also allows to send early warnings, optionally with recommendations, to controllers and engineers, so appropriate action can be taken or scheduled in case of predicted maintenance. Asset performance, or Overall Equipment Effectiveness (OEE), depends greatly on the process in which the asset operates. Instead of just using equipment-related sensor data for performance analysis, all process-related sensor data should be taken into account. This is called “contextualization of asset performance with process data”, and with this, data-based predictive maintenance becomes possible. The goal of predictive maintenance is to be able to perform maintenance at a time when it is not only the most cost-effective, but also when it will have the least impact on operations, and that requires a good understanding of the process performance. Process engineers (or other subject matter experts) are in the best position to analyze good and bad performance. By representing all sensor-generated data in a graph, especially when multiple tags need investigation, it’s hard to find correlations. Self-service analytics tools provide descriptive analytics features to quickly explore and filter data visually and search through large amounts of process data (easily up to multiple years of historical data). The advanced analytics capabilities also allow the user to do root cause analysis (RCA), test hypothesis (discovery analytics) and quickly find similar behavioral occurrences. Through diagnostic analysis, the process engineer can understand the effects of process changes (comparing before vs. after) and find potential influence factors for a specific issue. By understanding the difference between good and bad behavior, the base is created to understand when maintenance is required. With this information, monitors can be created to safeguard best operating zones and maintenance can be predicted. OGI: How does TrendMiner’s software work? TrendMiner: To improve process performance

Practical Use Cases with Self-service Predictive Analytics An example where asset performance is directly related to process behavior is the fouling of heat exchangers. In a reactor with subsequent heating and cooling phases, the controlled cooling phase is the most time-consuming, and it is almost impossible to monitor fouling when the reactor is used for different product grades and a different recipe is required for each grade. Fouling of heat exchangers increases the cooling time, but scheduling maintenance too early leads to unwarranted downtime and scheduling too late leads to degraded performance, increased energy consumption and potential risks. . In the instance of the production of a polymer, a monitor was set up to look at cooling the times of their most highly produced products. If the duration of the cooling phase starts to increase, a warning is sent to the engineers who can then schedule timely maintenance. The gained benefits are extended asset availability, predictive maintenance leading to operational and maintenance cost reduction and reduction of safety risk. The overall impact was 1%+ overall revenue increase of the entire production line.

and overall efficiency, a level of operational intelligence and understanding of data is required. One of the basic elements is that process engineers and other stakeholders must be able to search time series data over a specific timeline and visualize all related plant events quickly and efficiently. TrendMiner software is based on a high-performance analytics engine for data captured in time series. TrendMiner leverages unique multidimensional search capabilities, which combines the ability to visualize process historian time-series-data, overlay similar matched historical patterns and provide context generated by the process control systems, lab systems, and other plant systems and the usual annotations and observations made by operators and engineers. Engineers investigating potential process optimizations may start with searching for specific anomalies in process behavior. Searching for tags is as easy as searching in Google where easy time sliders and filters help you navigate through years of data. The first question is “what has happened?” directly followed by “has this happened before?”. If multiple occasions are found, the engineer can start searching for root causes. Either by using (global) influence factors or using the recommender engine. This may lead to early indicators 1 or 2 hours upstream, the engineer would have thought off. On the other hand periods of best performance can be collected

and overlaid, to create fingerprints (for the process) or best operating zones (for the assets), that can be used as monitors. The monitors can be used to capture events, while events residing in other 3rd party business applications, such as the Maintenance Management or Laboratory Information Management systems. All this can lead to new starting points for process optimization, leading to a continuous improvement loop through data analytics and contextualization of operational production data. The results of self-service data analytics, either in trend views with fingerprints or overviews of the contextual data can be shown in a “production cockpit”. Operators in the control room can have a live view of analytics driven dashboards, showing performance data in trend views and in live tiles of all events captured during production. This also allows for a live monitoring of multiple assets, production lines or startup procedures. The analytics-driven production cockpit can also be used for shift handovers and initiate collaboration across departments - breaking down information and organizational silos. OGI: How does TrendMiner cut down on maintenance and helps companies foresee potential issues with their assets? TrendMiner: You can also refer to the answer about how predictive analytics works, but with hundreds of use cases done together with globally operating customers, we have proven value for a wide variety of strategic operational goals, such as improving product quality, continuously reduce overall energy consumption (WAGES; Water, Air, Gas, Electricity and Steam), improve asset reliability and thus safety, increase on target production and yield, reduce waste, etc. But TrendMiner also helps to cut down on maintenance costs. Increasing asset reliability by analyzing performance within the operational context helps cutting down spare part costs and process downtime. On the other hand, trips can be avoided with early warnings, not only reducing downtime, but also maintenance and cleaning costs. • TrendMiner / www.trendminer.com Tel: +32 11 263830 E: info@trendminer.com

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HEALTH, SAFETY & ENVIRONMENT

The Provision of Emergency Safety Showers in Extreme Climates Oil and Gas Innovation sits down with Hughes Safety Showers, to discuss their emergency safety showers, eye/face wash and decontamination equipment. As the first line of defence in the event of an accidental chemical splash or spillage, Hughes explains to us how their products work, the certifications and standards required, and key points to protect the safety of your workforce. Hughes will help us understand how this equipment functions correctly when faced with the extremes in temperatures and remote locations experienced in areas such as the Middle East. Emergency Tank Shower in Action. OGI: Could you start by explaining Hughes Safety Showers’ credentials and experience in terms of your products and services for the oil and gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its reach? Hughes: Hughes Safety Showers have been manufacturing emergency safety showers and eye/face wash equipment for over 50 years. With five decades of knowledge and expertise we understand the unique requirements of industry sectors such as oil and gas. Our products are designed to operate across all industries regardless of location, climates or local hazards. We have a global reach with offices and manufacturing facilities in UK, USA, Canada, Germany and the Middle East, complemented by a network of authorised distributors worldwide. Hughes is proud to have been recently awarded the ISO 9001:2015 certification, an internationally recognised standard that ensures services meet the needs of clients through an effective quality management system. The standard demands a high degree of leadership commitment and is underpinned by risk-based thinking. Hughes’ successful certification is an accomplishment for colleagues at all levels and demonstrates a clear desire to embrace the standard as a fundamental element of our growth and customer focused strategies. OGI: Can you provide details on the standards and codes that should be considered when selecting and installing emergency safety showers? Hughes: Hughes leads the market in its compliance structure not only conforming to British and European quality standards but also to the American National Standard, ANSI/ISEA Z358.1-2014, which is increasingly used as a benchmark in all our global territories. The internationally recognised ANSI standards provides uniform minimum requirements for the performance, use, installation, testing, maintenance and training of emergency safety shower and eyewash equipment. To summarise some of the main points: Adequate Water Flow

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Emergency safety showers should deliver a minimum of 76 litres (20 US gallons) per minute of potable water for up to 15 minutes in the required pattern. Eye/face wash units should deliver 11.4 litres (3 US gallons) per minute for up to 15 minutes to ensure a thorough decontamination. Operation Equipment must be both accessible and easy to operate, even if the victim has impaired vision. The shower and eye wash valve must be designed so the flushing flow remains on without the use of the operator’s hands and goes from ‘off ’ to ‘on’ in one second or less. Water Temperature Water delivered by safety showers should be tepid, between 16-38°C (60-100°F). At temperatures above 38°C (100°F) there is the added danger of scalding and increased absorption of harmful chemicals into the skin. Prolonged exposure to water below 16°C (60°F) increases the risk of thermal shock or hypothermia. Location Emergency safety showers should be installed within 10 seconds reach and on the same level as a potential hazard. They must be situated in a prominent position, clearly visible and free from any obstructions. Emergency equipment must be visually inspected and activated

weekly along with an annual service to assure conformance to ANSI and European standards. Overall a good maintenance program is essential to guarantee reliable and effective emergency equipment. It is important to meet the minimum requirements, which may be mandatory on some sites, of International and European standards although it is worth noting that this is not a legal requirement. OGI: Could you explain to our readers your outreach in the Middle East? Are you working with any companies there, do you have any distributors on the ground? Hughes: Hughes Safety Showers work closely with several key distributors and partners across the Middle East, providing a local presence in places like KSA, Kuwait, and the U.A.E. This allows us to concentrate our efforts and resource into making the most of opportunities and expertise to offer our customers the best service. On larger projects where the solutions require additional engineering resource, our project management team work directly with the EPC’s to deliver the right solution. Maintaining our presence in the region means we regularly have members of the Hughes team in the Middle East working directly with customers. OGI: Many oil and gas sites operate in challenging environments, what is the


selection process for your safety showers and how does regional temperature effect that process? Hughes: To create safe workplaces in the oil and gas industry, no matter what the climate or environment, Hughes have developed safety showers that deliver effective treatment in every situation. Such units can operate in sub-zero temperatures and in desert conditions. Hughes tank showers have proven very popular in the oil and gas industry where there is an insufficient volume of water provided from the mains supply or if the pressure is inadequate. The 1500 litre and 2000 litre models provide tepid water for 15 minutes without a mains supply making it an ideal option for remote and challenging environments while meeting ANSI standards. Additional insulation, sun shields and cooling options ensure that the emergency safety showers function effectively even in the hottest of climates. The latest innovation from Hughes, launched in 2018, is the Zero Power Cooling System for emergency tank showers. Cooling water in areas where the ambient daytime temperatures can

reach 55°C requires a lot of power and as such can be challenging in remote areas where power is scarce. Chillers used to cool the water in emergency tank showers use kilowatts of power to maintain water within the safe levels required under ANSI Z358.1 (within the tepid range of between 16°C-38°C / 60°F-100°F). This has a high impact on the environment with its reliance on electricity and can be costly to maintain and service. This cost increases significantly if the emergency tank shower is situated in a hazardous zone. The new Zero Power Cooling System cools the water in the tank without the need for power and requires no maintenance or servicing. The night time ambient temperature is used to maintain the daytime temperature of the water, ensuring the delivery of safe and tepid water. For sub-zero areas, such as the Alaskan oil fields, the Hughes Polar Tank Showers are ideal, they operate within an insulated cubicle which protects casualties as they shower and await further assistance. OGI: Is there a consultation process with the client to find the safest and most effective product for them, and if so, how does that work? Hughes: In some instances, site specifications dictate what safety showers and eye/face wash models will be required for the site. For other projects a more customized solution is required, this is where our Engineered Solutions Team can help create custom made products to meet the customer’s exact needs. Our services include: •

Project planning: Using a dedicated team of mechanical, electrical and instrumentation engineers.

Customised engineering and design using SolidWorks® CAD software.

Site surveys and risk assessments.

Third party certification, inspection and testing to all relevant standards.

Hughes are package; installation, after-sales warranties.

able to offer the complete design, manufacturing, commissioning, training, service and extended

OGI: Why are your products so effective in hot climates? Hughes: As well as tank showers for hot climates, Hughes also manufacture selfdraining emergency safety showers. These models are suitable for use in extreme climates where the power of the sun can heat standing water within the pipes of the safety shower to temperatures as high as 50°C (122°F), resulting in a high risk of shock and scalding to a casualty when activated. The design of these models allows standing water to drain away from the standpipe ensuring the delivery of tepid water in the event of an emergency. The valve is situated directly Self Draining Combination Safety Shower.

Hughes 1500L Emergency Tank Shower with Zero Power Cooler.

above the water inlet; the bleed pipe is then fitted above this so standing water can drain into the ground. The standpipe only fills with water when the shower is activated and drains once again when the valve is closed to prevent stagnant water in the standpipe overheating from solar radiation and removing the risk of further injury to the operator. OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? Hughes: As detailed earlier, the new Zero Power Cooling System (ZPC) was tested on site at Saudi Aramco in Khurais. The test unit demonstrated the effectiveness of the Zero Power Cooling system when installed on the gravity fed tank shower. After just 16 hours the water temperature inside the tank was at a safe enough level to be used for the emergency safety shower. The peak daytime temperatures of nearly 55C showed that the test unit was able to withstand the high ambient temperatures of the region. The unit successfully maintained the water temperatures well within the required ANSI Z358.1 tepid water range for emergency safety showers. This was achieved without the need of a power source making it ideal for any location where there is a requirement for a safety shower. This technology has been developed and tested ready for future demand and requirements in this area, ensuring that safety remains at the top of the priority list for us and our customers. OGI: Thank you for your time. • If you’d like to know more about the topics discussed in this article, please contact: HUGHES SAFETY SHOWERS Ltd (UK) Web: https://www.hughes-safety.com Tel: +44 (0)161 430 6618


MIDSTREAM & PIPELINES

Save at Least 10% on Your Fuel Now Oil and Gas Innovation speaks with Pronova Systems Ltd to talk about The Ship Performance Optimizing System, of which helps them guarantee their clients a fuel savings of at least 10% which of course, translates into costs savings. We investigate this and other optimisation functions further to understand how this works.

OGI: Could you start by explaining Pronova Systems Inc’s credentials and experience in terms of your products and services for the Oil and Gas sector? Could you tell our readers the breadth of your experience, how long the company has been active, and its reach Pronova: Pronova Systems Inc is an engineering company specialized in oil & gas and marine systems. We started our activities in 1994 and until now we participated in many projects related to mostly electrical and automation systems. OGI: Could you elaborate a bit on your Ship Performance Optimizing System, and what it does? Pronova: The Ship Performance Optimizing System is a result of a PhD thesis focused on optimization of the ship’s performance mainly by saving fuel consumed by the propulsion system. Additionally the system’s algorithm includes many other features related to ship performance. OGI: What types of vessels would you be able to work on as they relate to the oil and gas, offshore industry? Pronova: The Ship Performance Optimizing System is able to optimize any ship operating in offshore and oil and gas industry, the best application will be for vessels consuming large

quantities of fuel; as a result the payback period will be only a few months OGI: Working with Pronova can offers your client fuel savings of more than 10% from ship speed optimisation alone, could you explain how this works? Pronova: We guarantee minimum 10% fuel savings. recently we received a third party report from a ship owner showing 15% fuel savings. The system calculates permanently the optimal speed of the ship corresponding to minimum fuel consumption and “tells” the skipper what to do to achieve this speed. OGI: What other optimisation functions can further enhance cost-efficiency?

Pronova: Many additional optimization functions depend on the ship type and history: the most important functions are: trim optimization, hull status monitoring and reporting, eliminates human factor in fuel losses, performance monitoring and daily reporting, Internet access for improved operation and maintenance, pollution monitoring and reporting: NOX, SOX, CO2, EEOI; OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? Pronova: In Canada the interprovincial ferry boats belong to Canadian Federal Government. We installed the system on these ferry boats and the fuel savings was 13.1%. In addition to the functions mentioned previously, we added other optimization functions such as: ballast control system, fuel management system, main engines’ overload monitoring system, diesel-generators and boilers control systems, draft control system, etc. OGI: Thank you for your time. • If you’d like to know more about the topics discussed in this article, and/or would like to know how Pronova Systems Inc can help your operations, please contact us: Web: www.pronovasystems.com Tel: +1 (514) 519 2191 E: stefan@pronovasystems.com

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MIDSTREAM & PIPELINES

ESOT, New Innovative Technology ADROC Tech Company develops and manufactures ESOT system. Rover ADEX was the first ATEX Zone 0 certified vehicle available in Europe. Our ESOT consists of a remotely operated ADEX rover (approved for ATEX Zone 0) and a TVC cabin (certified for ATEX Zone 2). The rover is powered and operated from the TVC cabin. ESOT stands for Equipment Set for Oil Tank cleaning.

H

ydraulic powered ADEX rover has a sturdy body, and it’s powerful enough to pull all hoses and cables when inside the tank. An airconditioned control room in the TVC cabin enables 24 hours of operation per day.

ESOT is an innovative solution for oil sludge removal, including the cleaning of black and white oil storage tanks. The real HSEQ improvement by using ESOT system within the Oil & Gas industry is indisputable.

computer controlled. All materials, movements of rover parts are checked, controlled and certified for ATEX Zone 0 environments by authorized Certification Institute FTZU, Czech Republic.

There are four TV cameras, certified for ATEX Zone 0. Three cameras with integrated lights are mounted on the rover, fourth camera is independently mounted on the man-way and functions as a birds eye. Thanks to the large number of cameras, the operator can control the movement of rover inside the tank via remote control. With certified ATEX Zone 0 TV cameras implemented in ESOT, our system enabled a first world-wide camera controlled robotic cleaning process inside oil tanks!

We have delivered three ESOT systems to companies based in the Netherlands which specialized in tank-cleaning services within two years. A single companies group (ST Cleaning, ICI Services) proved uniqueness and exceptional capabilities of the ESOT system by cleaning over 30 oil tanks in 24 months in years 2016-2017 (across the Netherland, Belgium, and Germany). Many tanks can be cleaned entirely with non-man entry conditions from initial sludge removal up to final floor cleaning.

Key benefits of using ESOT:

By utilising the ESOT system, contractors can guarantee minimal use of manual laborin oil tanks, with a reduction of over 95 % in comparison to conventional manual cleaning and sludge suction. ESOT enables contractors (who typically own cannons or other jetting systems) to reduce workforce needed during the final cleaning phase. Cannons and similar cleaning systems produce diluted sludge on the tank floor at the end of the first cleaning phase, which puts staff at high risk ofcontamination and exposure to carcinogenic substances.

TVC cabin is designed as a 20 food ISO container, transportable and compact, covers rooms for operation, machine room with hydraulic power pack, ventilation room and storage room for rover and cables. Control and machine rooms are air conditioned. Since the original development and ATEX certification of ESOT in 2016, we have continued to improve and innovate our system. Over the last year, following innovations have been added to ESOT: •

Automatic modes in robotic cleaning

Less intensive manual work outside the tank

Significantly improved lighting enhanced visibility in the tank

The modernized environment in the cabin allows two or three consecutive shifts and longer shift duration (10 -12 hours) to be undertaken in the TVC cabin per day.

for

The ESOT is Proven Technology. Firstly, deployed in February 2016, ESOT has since been confirmed by satisfied customers and cleaned a large number of oil tanks. ESOT improves safety and significantly accelerates oil storage tank cleaning. Safety of the TVC cabin and work of robotic rover is

Dramatically cut your sludge removal cost

Reduce total workforce (only three operators per one shift)

Increase operational efficiency and minimize shutdown time (by 30%-40%)

Meet increasingly environmental regulations

Navigate easily through obstructed and hard-to-reach areas

Save workforce and improve safety through automation

Fast and straightforward deployment of ESOT cleaning system and the start of sludge removal from tank

stringent

We help operators of tank farms and providers of cleaning services to achieve sharp reduction of physical risk; robotic technology does not involve human errors and offers certified explosion prevention in ATEX Zone 0 environments. We help you eliminate health risk, minimize failure, and injury and reduce/ eliminate carcinogenic damage of health from many chemical oil substances. Next innovations and improvements are focused on: •

Optimization of sludge suction by vacuum truck or pump

Implementation of computer vision and AI technology for collision avoidance during long shifts / 8 -12 hours / for rover operators in TVC cabin, mainly in large tanks with supporting legs under floating roof.

ESOT enables a substantial reduction of workforce in dangerous environment of oil tanks. Our technology also offers positive ROI for small and mid-size cleaning companies. We offer robotic rover as a remotely controlled vehicle with automation modes for cleaning applications. ESOT is the best available product on the market for robotic oil tank cleaning! •

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MIDSTREAM & PIPELINES

More and More Heavy Lift Projects are Using Vacuum Technology Ceti Suxxesion B.V. was established by myself in 2000. We are specialized in the design and production of so called end of the line attachments. At the end of 2015, the company’s name was changed into Suxxesion B.V. with the brand name, SUXXESION. By Harry Crone

T

he custom made tools are designed to handle by means of vacuum or hydraulics loads such as steel or concrete pipes, steel sheets and billets, concrete elements, wing skins, paper reels or any other object which can be lifted by means of vacuum. Ever since I started Suxxesion our main business was and is pipe handling and we have been able to develop equipment which meet today’s requirements of handling speed and safety, thanks to the input from our international customers. Over the past years we have built a variety of devices to handle pipes for pipe manufacturers and pipe coating companies. We also work in harbor areas, railway / road shipping, storage yards and at the pipe stretch, either hydraulically or by means of vacuum. We are glad and thankful that so many people have contacted us leading to long term business relationships. My company is based in a small city called Buren in the heart of the Netherlands. Like many companies we subcontract steel constructions to regionally based qualified suppliers. We have a long term relationship with these companies and where quality is concerned, we constantly strive to achieve higher standards to meet today’s requirements. As a result we are able to meet all the off-shore requirements.

As previously mentioned, the logistic situation is different per site. A typical example is the Multitool 320 DVHKI built for Data Steel in Pakistan. This device is fully integrated in the Reach stacker. Up front we only need a hydraulic oil feed from the carrying machine and 24 V= controlling by means of blue toot data exchange. A new feature is the hydraulic adjustment of the c-c between the suction pads. This in contradiction to equipment earlier supplied to MPC in Germany.

Both applications are typical arrangements that the handling material is dedicated to handle pipes only. The recently built and developed 320DVHKI is a multi-tool solution which can be equipped with pipe spreaders or with a beam with flat pads to handle steel sheets or concrete. Knuckle boom suspended lifting equipment is used in every site situation which handles pipes to load and off load pipes. As far as harbor applications are concerned we are very experienced in handling pipes in combination with HMC’s Reach stackers and Knuckle boom cranes. Case Studies Double pipe lifters operating in Kotka, Finland and Sassnitz Germany suspended from mobile harbor cranes: Devices were in use to load out the concrete lined pipes for the North Stream Project. Before the concrete lining the pipes were handled by means of vacuum. For that purpose we equipped a.o. two container reach trucks with our vacuum system to load and off load the train wagons. For Cogema in Dunkirk France and Adani Port in India we supplied double pipe spreaders to equip container reach stackers. With simple modifications the reach stacker was adapted to use the Suxxesion attachment suspended from the twist locks. After the break bulk job was finished the reach stacker could be used directly when the attachment was released by the twistlock and the hydraulic connections were uncoupled.

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Suxxesion is a leading Dutch company for the design and manufacturing of end of the line attachments. Suxxesion has developed the multi- tool to handle pipes by means of vacuum or with hydraulic spreaders for the pipeline industry. The multi tool is available to be attached to the twist-locks of container handling equipment in portal areas, knuckle boom cranes and excavators. Suxxesion vacuum lifting equipment is also used in concrete precast industries, steel sheet handling, aircraft and paper industry.

“ We have supplied vacuum handling equipment to J. Müller in Brake Germany suspended from container bridge cranes and container reach stackers.

For both harbors we have built several other sets of equipment suspended from harbor cranes and gantries. As for Adani Ports we have built a so called multi tool able to handle pipes by means of vacuum or hydraulically. This device operates in the pipe stockyard suspended from a gantry crane.

For the Polar LED pipe line disclosing the Aasta Hansen gas field, we supplied vacuum handling equipment and a double pipe lifter to Mo I Rana port in Norway to load in coated pipes and load out concrete lined pipes. This job is finished now and we were the hands to enable All Seas to set the off-shore pipe laying record of more than 6 km of pipe per day. All the 33.500 pipes produced for this pipeline have been handled with our equipment. Every pipe has been in our hands at least two times.

Having done all this, Suxxesion has designed a tool for easy conversion of a container terminal into a break bulk terminal. We have done this with minor changes to the container spreaders suspended from container bridge cranes, reach stackers, mobile harbor cranes or any other loading means equipped with a container spreader. The possibility of suspending our multi-tool to existing equipment is very interesting when pipeline projects need temporary pipe storage or when construction takes place close to the container terminal for which materials such as steel sheets or concrete elements are required , that come in over seas. In such cases it will not be necessary to arrange for a temporary break bulk terminal, but the local container terminal can be converted very quickly and the investment will be limited to equipment only. The advantage is that infrastructure behind the container terminal such as roads and railways will be available. When the construction or pipe line project is finished, the container terminal can be operated as container terminal after the Suxxesion attachments have been put away. This will not take much time. All pipe manufacturers, coaters and contractors are familiar with vacuum handling equipment. We want to build and supply equipment distinguishing itself through efficiency and low cost of ownership. • For more information about Suxxesion and our many solutions please visit our web-site: www.suxxesion.com Inquiries can be sent directly to: harry@suxxesion.com

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2019 SPE Offshore Europe 2019 3-6th September 2019 Aberdeen, Scotland, UK https://www.offshore-europe.co.uk/ EGYPS - Egypt Petroleum Show 2020 11.02.2020 - 13.02.2020 Egypt International Exhibition Center (EIEC) https://www.egyps.com/ ADIPEC 2019 11-14th November 2019 Abu Dhabi, UAE https://www.adipec.com/ OTC BRASIL 2019 29.10.2019 - 31.10.2019 SulAmerica Business Center Rio de Janiero Africa Oil Week 2019 04.11.2019 - 08.11.2019 Cape Town International Convention Centre http://www.africa-oilweek.com/ Offshore Technology Conference 4-7 May 2020 Houston, Texas, USA http://2020.otcnet.org/ Global Petroleum Show Calgary, Canada June 9 - 11, 2020 https://globalpetroleumshow.com/ STOCEXPO EUROPE March 16-20th 2020 Ahoy, Rotterdam Gastech Conference & Exhibition 2019 September 17th - 19th Houston, Texas https://www.gastechevent.com/about/ International Rotating Equipment Conference 2019 24.09.2019 - 25.09.2019 Location: Congress Center Wiesbaden, Germany https://www.introequipcon.com/

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Extreme Environment. Ultrasonic. Corrosion Monitoring. Continuous monitoring from - 400C to + 3800C, resistant to ionizing radiation.

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ENHANCED PRODUCTIVITY Minimise risk of unplanned outage, maximising availability, maximising production rate.

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