OGI Summer 2020

Oil and Gas Summer 2020

INNOVATION ®

HAZARDOUS ENVIRONMENTS FOCUS

SIMULATION TRAINING

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PIPELINES SPECIAL

THE PORT OF TOMORROW

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Summer 2020 CEO Matthew Patten Managing Editor Simon Milliere Publishing Director Edward Findlay edward@oilandgasinnovation.co.uk Commercial Director & Advertising Enquiries Nicholas Parker nparker@oilandgasinnovation.co.uk Technical Director and Website Nathan Bedmann web@oilandgasinnovation.co.uk Office Assistants Janet Elseberg admin@oilandgasinnovation.co.uk Contributing Journalist Emma Patten Business Development Executives Mylene Daugan mylene@oginnovation.co.uk Market Researchers Mylene Miguel Kiefer Reddy Melissa Phanjoo Jesse Wiafe Dasol Moon

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CONTENTS COVER STORIES & SPECIALS

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Gamified Simulation Training

Safety and culture experts Propel Sayfr, in partnership with Attensi, have created a safety training solution for the digital age. SAYFR immerses its users in an interactive 3D simulation of their working environment, designed to educate best practice and to test their abilities across a range of realistic scenarios.

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The Port of Tomorrow

Oil and Gas Innovation sits down with Geert De Wilde, CEO of NxtPort, to learn more about the work they do in conjunction with the Port of Antwerp. It’s important for readers to understand that industry is heading in a certain “digital” direction and NxtPort is here to help us understand more about the power of data in shipping and port logistics, and how it can help your operations.

Hazardous Environments Focus

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Easy-Laser AB Enaex and Sasol Announce Deal to Establish Explosives Joint Venture SubseaPartner Natural Gas Pipeline in Kentucky Had Several Defects

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WORLD INDUSTRY NEWS Europe MENA North America Asia Pacific Latin America Africa

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MIDSTREAM & PIPELINES Interview with Alexey Miller, Chairman of Gazprom

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Gazprom and its Chinese partners are currently negotiating an increase of gas supplies via the Power of Siberia pipeline by 6 billion cubic meters, i.e. to 44 billion cubic meters of gas per year.

EXPLORATION & PRODUCTION From Your Mind to Market 4

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• Methanol pumps

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• Produced water injection pumps • Sea water injection pumps

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• 50 – 4000 bar

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CONTENTS EXPLORATION & PRODUCTION

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Oil Demand in 2020 Could Lose Another 2.5 Million BPD

As the number of confirmed new Covid-19 cases surges to new global highs of beyond 200,000 per day, a second wave of the pandemic is increasingly apparent in several countries – most notably in the United States.

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Exploration Cable With UL/CSA Approval

The SAB 755 Exploration is a highly flexible control and supply cable for the use with extreme climatic conditions among others in TopsideDrilling-Loops of oil, gas and geothermal rigs. Furthermore, the cable can be applied in wet areas of machine tools as well as for assembly and production lines.

PROCESSING Investment Protection and a Basis for Innovative Applications

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For 30 years, the BASF Group has been using the I&C-CAE system ProDOK by Rösberg for the planning and operational support of its production plants. User acceptance in day-to-day work is high, but there is also a new demand for the inclusion of innovative applications. For this reason BASF decided to switch to the new system generation ProDOK NG.

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VympelCare – Maintenance and Calibration Version 2.0

All day, every day, hundreds of thousands of analyzers around the world are measuring the dew point of water and the condensation temperature of hydrocarbons in natural gas. These values are primary indicators of the gas quality.

Process Transformation: Amazon Filters Launches Coalescer for Oil and Gas Industry HEALTH, SAFETY & ENVIRONMENT EVENTS CALENDAR

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OVERLAY & JOINT WELDING

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COVER STORY

Safety Targets for the Year Delivered in One Quarter, With Gamified Simulation Training Safety and culture experts Propel Sayfr, in partnership with Attensi, have created a safety training solution for the digital age. SAYFR immerses its users in an interactive 3D simulation of their working environment, designed to educate best practice and to test their abilities across a range of realistic scenarios.

Its first client, shipping operator K Line, used SAYFR to instill a culture of safety excellence amongst its staff. The company wanted to foster a culture of openness around on-board errors and failures, in order to learn from them. Having rolled-out SAYFR as a training tool for its seafarers, K Line met its ‘reported near misses’ key metric target for the whole year within the first quarter after launch.

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hen a single incident could result in loss of life and millions in financial penalties, good safety culture is non-negotiable for any maritime operator. An incredible 75% of maritime losses are attributable to human error.

And while it’s hard to find a shipping or offshore company today that does not claim to be an ‘industry leader’ in the field, the practical reality of instilling safety culture comes with significant challenges.

For safety and culture experts Propel Sayfr, these challenges are only too familiar. Established in 2010, the company has built a unique data set based on the behaviors of over 150,000 individuals working in shipping and offshore. Its purpose is to answer a difficult question - why are some operators better at managing safety than others?

“While some companies make a point of dealing with and learning from incidents upfront, others still suffer from a mindset of hiding them away,” explains Didrik Svendsen, Partner at Propel Sayfr. “To address this, we built our statistical data model to prove the connection between individuals’ behaviour and safety success. If these behaviours can be measured, then we can change them effectively.”

It is this commitment to analysing individual

operating decisions, and their impact on frequency of incidents, that underpins what Propel Sayfr offers to its clients. The operations of the client company are closely monitored and measured, with findings presented back as data-driven recommendations for altering behavioural norms. And with these changes, a true ‘safety excellence’ culture can be created.

After five years of operating, Propel Sayfr’s results had won multiple clients and many

admirers. But something else was needed to take full advantage of this new-found methodology. As Svendsen and his fellow partners realised, the nature of training itself had become a limiting factor. “We had the methods, what we lacked was the ability to scale our approach. If you really want to reach people through training, they have to be able to visualise the tasks and incidents being discussed. Which is why we started to search for technology partners that worked with 3D avatars.”

Attensi, a provider of gamified simulation training, had the solution that Propel Sayfr needed. The company combines best practice from the worlds of workplace psychology, training, and gaming to create immersive training simulations that empower users to learn new skills, with measurable impact on organisational KPIs. Together, the two companies collaborated to create a new flagship training solution, SAYFR. SAYFR users are immersed in a 3D graphical recreation of their workplace environment and challenged to complete a range of scripted scenarios. Each is designed to simulate the kind of processes and mishaps that can lead to

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onboard incidents, from the mildly negligent to outright disastrous, with multiple possible outcomes.

Each scenario features interactive conversations with voice-acted characters, representing the typical exchanges that users will have with real-life co-workers. Correct answers are ‘rewarded’ with points and star ratings upon completion. Incorrect answers will cost users points and negatively impact their final rating, but they are also addressed with realtime feedback to explain mistakes and wrong decisions.

Leaderboards - amongst teams, departments, and whole organizations - promote a level of friendly competition. As well as encouraging players to repeat the training multiple times for bragging rights over their colleagues, the metrics gathered give management a comprehensive picture of how their people are performing against eight core safety leadership behaviors.

For “K” Line LNG Shipping, SAYFR proved to be a shrewd choice in its pursuit of safety excellence, according to Improvement Manager, Soeun Choi. “Through SAYFR, we were able to visualise how the behaviors and safety culture really impact the likelihood of having an accident.”

K Line began working with Propel Sayfr in 2015 and adopted SAYFR in 2017 as the first company to use the solution. As with all shipping safety initiatives, the ultimate target was to eliminate major accidents. However, as a measurement, the binary nature of whether an accident did or did not happen does not provide much in the way of tangible insight. For K Line, improved reporting of near miss incidents was considered a more actionable metric to improve upon.

“Many companies say failures and errors are

something to learn from, and that they should be reported whenever possible. But for many of our seafarers, it was not always clear why they should report. The main purpose of our project with SAYFR was to improve the level of maturity of the safety culture. To move from one of ‘cover-up’ to excellence culture, where our people learn from errors.”

After introducing SAYFR, the number of reported near misses increased dramatically.

The company had set a new annual target for this key metric. But following the launch of K Line’s new gamified simulation training, the target was exceeded within a single quarter.

These numbers are now the new normal, providing management with a vital line of sight into how errors occur, and how accidents can be avoided.

“With SAYFR, our people get to see the results and outcomes of mistakes rather than just as

part of a discussion piece. The multiple choices allow them to visualise multiple outcomes, where before they might not necessarily have appreciated what those outcomes were,” explains K Line Deputy General Manager, Lloyd Swindell. “The range of where the reports have come from has also massively increased. It used to be the senior officers’ job to make reports. Now they’re coming from a lot more members of the crew.”

SAYFR’s successful launch with K Line has led to the development of two further training solutions, which are set to be rolled-out across the company later this year. Both fall under the SAYFR umbrella and are again powered by technology from Attensi.

The combination of Propel Sayfr’s data modelling and Attensi’s gamified simulations has also been used to create training solutions for other verticals. One of which has been recently sold to an operator in the oil industry.

For Didrik Svendsen of Propel Sayfr, it is a collaboration that has come to define how his team operate.

“Before our relationship with Attensi we were hosting inperson executive workshops big conferences with operations leaders, sometimes 100 people or more. We had trainers on board [ships and offshore platforms] for seven to ten days at a time. It gave results, but wasn’t scalable. Now, Attensi has become the core of how we deliver what we do.” • If you would like to know more about the solutions discussed in this article, please contact: Attensi Web: https://attensi.com E-mail: contact@attensi.com

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COVER STORY

Scaffolding: Safety and Efficiency Are Not Mutually Exclusive Oil and Gas Innovation sits down with Wilhelm Layher GmbH & Co KG to learn more about the importance of scaffolding, and the role it plays in the oil and gas sector. Layher is the leading manufacturer of system scaffolding, and explains to us how to quickly and safely assemble working scaffolds, while reducing downtime. It’s very important for a construction project to choose the right scaffolding solution, because it can give you a competitive advantage. Safety and efficiency are not mutually exclusive at Layher. Layher also talks about the increasing digitisation of the industry and their Scaffolding Information Modeling (SIM) software, LayPLAN SUITE, which helps users throughout the entire life cycle of the project.

OGI: Could you start by explaining Wilhelm Layher GmbH & Co. KG’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?

Layher: For 75 years now, Layher has stood for innovation, safety and quality “made in Germany”, and for a strong partnership with its customers from scaffolding, construction and industry’s such as the oil and gas sector.

This is how the family-owned company grew to become the leading manufacturer of system scaffolding. Tried and tested, and continually improved, the Layher solutions, SpeedyScaf as a frame scaffolding for facades and Allround Scaffolding as the synonym for modular systems are today the global standard for scaffolding construction: Quick to assemble and dismantle, safer in operation and flexible in their use.

Assembly times can be considerably reduced in this way, while occupational safety is greatly increased.

This is also assured by the extensive services provided by Layher as a dependable partner – competent advice, training and seminars, plus a high delivery capacity. Every day, more than 1,900 employees are creating “more possibilities”.

Whether at the highly automated main plant in Güglingen-Eibensbach, or at sales subsidiaries in 42 countries all over the world.

Up with safety, down with costs: Allround Scaffolding is used successfully worldwide, especially in the oil and gas sector, as well as chemical and power plants.

1 system, various solutions: Layher Allround Scaffolding Lightweight.

OGI: What are the different solutions you provide the oil, gas, petrochemical and chemical industries?

Layher: Efficiency and safety are important keywords in the oil industry. To reduce downtime due to maintenance work, the focus should be on the quick and safer assembly of access and working scaffolds. Ideal for this task is the Allround Scaffolding in the Lightweight generation. With its unique selflocking wedge head connection “AutoLock” and unsurpassed quick and flexible assembly,

it has established itself as the synonym for modular scaffolding. The extensive product range and continuous development ensure unlimited versatility - always state of the art.

Wood and gap-free possibilities include work scaffolding - in form of supported, suspended and rolling structures - as well as shoring and reinforcing scaffolding, stairtowers and bridging, plus site protection, i.e. roofs or protective enclosures.

OGI: Why is it so important for a project to choose the right type of scaffolding solution?

Layher: Choosing the right scaffolding solution can ensure a genuine competitive advantage because safety and profitability aren’t contradictions at Layher. On the contrary: Allround Scaffolding in the Lightweight generation offers improved safety and at the same time reduces the assembly and logistic costs as the precision of all components and weight-optimised parts guarantee a reduction of assembly time and safer handling. Downtimes and production losses are minimised considerably. All good reasons why Allround Scaffolding is used successfully worldwide, especially in the oil and gas sector, but as well as chemical and power plants.

Made by Layher means made in Germany: the highly automated Layher headquarters in Gueglingen-Eibensbach.

OGI: Safety is of prime importance in any construction project. Could you talk about how Layher can keep projects safe and profitable at the same time?

Layher: Layher Allround Scaffolding offers economical and at the same time safer solutions, based on the philosophy of the Integrated System. Allround Scaffolding consists of just three basic components: standards, ledgers and diagonal braces. Thanks to lightweight and optimally designed components plus the boltfree connection system, they can be assembled quickly and ergonomically while their varying standard lengths enable them to be flexibly matched to different building geometries, ground plans and terrains and matching supplementary components – structurally and dimensionally integrated – ensure almost unlimited possibilities on site. And: safety is also assured.

Suspended scaffolding including non-trip and gap-free decking with Layher standard steel decks.

OGI: Can you elaborate further on how efficiency and safety are not mutually exclusive at Layher?

Layher: Sure. Allround Scaffolding has a self-locking wedge head connection called AutoLock that permits assembly of ledgers from a secured position. If a site crane is available, crane-movable solutions following preassembly on the ground are also possible thanks to high fitting precision. System decks and matching toe boards made of steel or aluminum help to reduce the risk of fire, which is also a requirement frequently expressed for scaffolding in refineries, chemical factories and other fire-sensitive industrial plants. Gap-free solutions can generally also be used without additional expense or effort. And not to mention the major impact that quality has on safety when working in heights. Our quality management encompasses the entire production process: for outstanding quality and precision coupled with a long service life, confirmed internationally through independent certifications, inspections and approvals.

OGI: Can you talk about what Scaffolding Information Modeling is, and how it helps construction companies efficiently use their time and material?

Layher: Digitalisation affords many advantages at construction sites and also in the field of safety when working. In addition to a high degree of

Right: To comply with the quality requirements and the legal basis for high-grade Layher products, they are routinely monitored with both in-house and external inspection measures.

certainty in planning and scheduling, plus cost control at construction sites, digital processes also facilitate precise adaptation to the geometry for upward accesses and also coordination in advance with Health and Safety Executives (HSE). Scaffolding Information Modeling provides assistance here. Layher SIM is specifically tailored to temporary scaffolding structures and covers all the main factors in scaffolding construction, from planning, to logistics and assembly. The integrated software solution LayPLAN SUITE also provides you with a powerful tool with practical modules, to cater

for every requirement. For more about Scaffolding Information Modeling on YouTube at yt-sim-de.layher.com.

OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions?

Layher: Tried and tested, and continually improved, Layher solutions are today the global standard for scaffolding construction: Quick to assemble and dismantle, safer in operation and flexible in their use. Assembly times can be considerably reduced in this way, while occupational safety is greatly increased.

Success stories of our customers can be found on the website www.scaffoldingstories.com, for instance a scaffold in a boiler in Duvha, near Johannesburg. The use of the Layher Allround System and digital planning as part of Scaffolding Information Modeling was a major factor in saving 3 weeks of downtime. Another interesting project was the construction of a safer working platform at a height of almost 40 metres for refurbishing the ceiling and the hot face of a boiler in Russia. Thanks to Layher Allround Scaffolding, professional planning software LayPLAN CAD and materials logistics planned right down to the very last component, the scaffolding was able to be erected extremely efficiently, even through manholes with a diameter of just 50 centimetres. • If you would like to know more about the solutions discussed in this article, please contact:

Based on the integrated software solution LayPLAN SUITE, Scaffolding Information Modeling from Layher not only offers planning and scheduling certainty at the site, transparency in all work steps and cost control but also an increase in safety and profitability for every project as well as an access to BIM.

Wilhelm Layher GmbH & Co KG W: https://www.layher.com/ T: +49 (0) 71 35 / 70-0 E: info@layher.com

COVER STORY

The Port of Tomorrow Oil and Gas Innovation sits down with Geert De Wilde, CEO of NxtPort, to learn more about the work they do in conjunction with the Port of Antwerp. It’s important for readers to understand that industry is heading in a certain “digital” direction and NxtPort is here to help us understand more about the power of data in shipping and port logistics, and how it can help your operations. Preparedness can mitigate potential supply chain disruptions, and ultimately save time and money. Sharing data is key to being prepared, and it can also create fresh revenue streams. We delve deeper into these subjects with Mr De Wilde.

OGI: Could you start by explaining NxtPort’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?

Nxtport: Nxtport started as an initiative of the private port community in the Port of Antwerp back in 2017. End of 2019 the Port of Antwerp became the majority shareholder. Today we work with a trusted virtual vault system to connecting the different stakeholders in the supply chain.

App builders, independent software vendors, and startups can offer their solutions to the market.

There are no borders on the use of a data platform. The first virtual community on the platform is eCLIC. We are the platform for members of the community of chemical companies offering a digital tank cleaning certificate. Recently, the International Port Community System Association appointed Nxtport as a technical solution to share data

Liquid bulk, Antwerp.

between 70 ports and 13 airports worldwide.

Our ambitions go further, we believe chemical and petrochemical companies are ready to share data to increase safety and security. Cost reductions, better planning, increased

visibility will lead to efficiency gains and a better time to the market.

OGI: Could you talk about the power of data in relation to the offshore, marine and shipping industries?

“Visibility is key.”

Nxtport: In contrast to an airplane, an arrival or departure of a vessel is more difficult to predict.

choosing the applications needed from the marketplace.

Huge costs are involved in delays and waiting times. Supply chains can be disrupted. Visibility is key. But as shipping is a very fragmented world, data from within your own company is not sufficient. You will need data from other stakeholders. Nxtport enables this thanks to a trusted, neutral data backbone. Port Authorities and Belgian customs are sharing data on the platform, which shows confidence and trust.

OGI: What is an application program interface (API), and what are the ways NxtPort applies these technologies?

Private companies can benefit from sharing customs data. A vessel arrival can trigger a process in which customs clearance is done digitally. Within seconds a consignment is cleared without retyping. Errorfree! With the overseas activities increasing, the datasets will become enriched.

OGI: Could you go into further detail about the NxtPort Data Utility Platform?

NxtPort: Trust between the different stakeholders is a must, and technology is an enabler. A robust governance model is in place; only the data provider can decide whom data is being shared. Via our console, the data user requests the data provider to make a digital handshake. After approval, the information starts flowing. The data provider remains in control.

In the Qronoport a data engine is predicting events thanks to historical data.

One single connection with the platform is sufficient to retrieve data securely. This opens up a world of possibilities for the connected companies. Once you are a subscriber, you can use, within your specific community andaccording to the governance rules set, data from your suppliers, and customers. Each company can have his vault on the platform,

NxtPort: An API (Application Programmable Interface) is the door to a company’s data and applications. It is a standard way for applications to connect and talk to each other over the internet. Just like human users use websites and apps, machines use API’s. Before API’s companies used EDIFACT or web services to integrate their systems. Most of the time, these integrations were very tightly coupled meaning that integration between X and Y could not be easily reused between X and Z. It also meant that once systems were integrated they could no longer easily evolve independently. API’s solve this by loosely coupling systems so that organizations can evolve their systems at various speeds. At NxtPort, we follow an API-first strategy.

OGI: How does the NxtPort console work?

NxtPort: The console is the main dashboard of the NxtPort platform and has several functions. Once registered to NxtPort, as a data provider or a data user, companies are able to subscribe to several use cases (API’s) and obtain their keys for secured access to the data platform. Data providers can define which use cases can access their data and data users can request access from one or more data providers. Once a data provider and data user have a “digital handshake” they both can determine and negotiate a data sharing fee from within the platform. Next to these commercial functionalities, the console also gives an overview on data usage, organization information, and user management.

Community managers are able to approve memberships and define the roles members can play in the different API’s that are linked to their community.

OGI: How can NxtPort open fresh revenue streams for the port community?

NxtPort: Nxtport can collect data fees from data users, which are set between the data user and data provider directly via the console. We don’t intervene in this part. In most cases, the operational gains are the primary driver rather than collecting extra revenues.

In the end, efficiency gains will lead to a better market position for the users of the platform.

This will bring new business opportunities in a world where uncertainty is the new normal.

An easy import or export process, including data, money, and physical flows in a digitized supply chain, is available today.

OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions?

NxtPort: Port+ and Nxtport created ‘Qronoport’. Thanks to data sharing between the different partners, we optimize the port call of liquid vessels. Reducing idle time is saving money and increases safety. Waiting time of a ship is reduced once the chain of surveyors, agents, terminal operators, receivers, amongst others. Share their part of the chain. Thanks to Qronoport, the receiver of the goods can receive goods faster and safer with an economic and ecological benefit.

OGI: Thank you for your time. • NxtPort contact details: Web: https://www.nxtport.com E-mail: mail@nxtport.com Phone: +32 3 246 02 30

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HAZARDOUS ENVIRONMENTS FOCUS

Pipe Strain Effects on Machinery (Shaft) Alignment

By Mikael Terner, Easy-Laser AB and John Lambert, Benchmark PDM.

Installing new machinery There are many things you, as part of the installation crew, need to take care of in order to install the machinery in a way so that you give it the right prerequisites to run smoothly for its designed purpose and life span.

At the point of installation, you have the opportunity to “make or break” the reliability which the equipment has been designed for.

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t is important to have, and follow, a standardized process for the installation. A “reliable machinery installation procedure” if you will. You will have to take care of (measure and confirm) things such as foundation flatness/level, pipe fitting, soft foot, machinery (shaft) alignment etc. In this article I will focus on the specific part of pipe strain and its effects on machinery alignment.

If we assume that the foundation has been checked for flatness (never assume, off course check the documentation first), pipe flanges have been lined up and the machinery has been dropped down ready for initial alignment. If done by the book your next step would be to move forward with the machinery alignment process.

You may wonder why I keep writing machinery alignment instead of shaft alignment? Although the end goal is to line up the rotational centre of the shafts you are actually aligning the whole machinery before you even get to the point of precision alignment.

Using the term shaft alignment implies that, that is where the focus should be and encourages the mechanics to go straight for precision aligning said shafts. If you do not take care of the whole machine during the installation, you are going to introduce stress into it. With stress I mean applied forces that can cause, for example, bearing failure, overheating or abnormal power consumption. John Lambert, of Benchmark PDM in Toronto Canada, dubbed it “Stress - the silent killer”. With that, he meant that stress in the machinery casing will eventually “kill” your asset.

Pump/Motor alignment in the field In this example (below), Brian Franks of JetTech Mechanical LLC based out of Goodyear AZ, was commissioned to install a 3250 hp induction motor (Toshiba) driving an SPX ClydeUnion pump in a natural gas liquids pipeline project stretching from Colorado to Northern Texas.

Laser shaft alignment system mounted using magnetic axial brackets.

The coupling is a 12-inch (304.8 mm) spacer. The first thing you need to do is check for soft foot. Soft foot is a term that is used rather carelessly in the industry as it implies that something is going on with the machine feet. This could off course be true, but often there is something else causing this, such as the base being out of flat, or pipe stress. I am not going to delve deeper into this topic as there are many good articles out there already.

In this example (below) JetTech has loosened (opened) the coupling as well as disconnected the pipes. This is the correct way of performing the initial soft foot check as this will allow you to pinpoint any soft foot issues without seeing any influence from coupling or pipe strain. The base shall at this point have been checked for flat and level (before the pump/motor are mounted) ruling out any soft foot caused by the frame being twisted.

Soft foot is measured on both pump and motor. It is not uncommon to focus only on the motor side. An argument we often hear, not to check soft foot on the pump, is that it is stationary and will not be moved (aligned) anyway. Consider the cost replacing the equipment.

If you must replace a motor, we are speaking hours. Replacing a pump is a much more complex process that could go on for days. Even if you won’t be moving the pump, you still want to make sure you do not have a soft foot condition as this would distort the casing, and thus induce stress in the pump. Remember, stress is the silent killer.

According to ANSI/ASA S2.75-2017 (Shaft Alignment Methodology, Part 1) allowable tolerances for soft foot is two thousandths (0.05 mm). In this example we are staying below that, at 1.6 mils (0.4 mm) at foot three of the pump. Once soft foot condition has been ruled out, and documented, the team proceeds with initial shaft alignment check.

Calculated soft foot results from measurement with a laser shaft alignment system. Numbers in mils (1/1000 of an inch).

Picture 3

As a spacer coupling allows for two points of flexure, tolerances (measurements) are expressed as two angles. Picture 3 (right) shows the horizontal alignment, and picture 4 (right middle) shows the vertical. The current setup runs at 3575 rpm. This is important why?

The speed of the rotation sets the tolerances for the alignment. At 3575 rpm and spacer coupling the tolerances for shaft alignment are: ANSI/ASA S2.75-2017 (spacer coupling type) Offset

Angle

N/A

1 mil/ft (0.06 mm/m)

Table 1. Shaft alignment tolerance as per ANSI/ ASA S2.75-2017 Both horizontal and vertical angles are well within tolerance (thus the green colour in the result pictures). However, remember that we left coupling and pipe flanges unbolted? The true test of an installation (besides starting it up off course) will be in bolting up the pipe flanges.

This should be done under strict supervision (measurement) and should be documented and handed over to the asset owner as proof of a job well done afterwards.

Picture 4

In this case (picture below) the crew left the laser shaft alignment system mounted on the coupling as they proceeded to torque the bolts.

The alignment system has a feature to monitor movement and graph it, in horizontal and vertical direction, as the flange bolts are being tightened. This allows the crew to determine if there is any pipe strain affecting the pump, ultimately adding stress to the machines.

As you can see in the picture with the graph there is quite a lot of movement both vertically and horizontally with 7.1 mils (1.8 mm) in vertical offset and 19.5 mils (4.9mm) in horizontal offset. Going back to the ANSI/ASA S2.75-2017 standard: “External forces from piping strain, flange strain, conduit strain, attached ductwork, etc., applied to machine cases shall not be sufficient to cause changes in the shaft alignment of magnitude greater than 50 micrometers (2 mils) vertical or horizontal measured at the coupling.”

If the crew would have proceeded with final alignment under these circumstances, they would have seen all kinds of issues, likely manifesting themselves as soft foot. However, this is not a condition you could have fixed using the soft foot playbook (step shims etc). The pipe stress would have been there, adding distortion to your pump case, possibly shaft deflection, causing vibration and ultimately you would see bearing damage because of this.

If you want to make sure your assets run for their entire designed life span, you make sure to take out pipe strain before proceeding to final precision alignment during the installation process. •

Tightening flange bolts as the laser shaft alignment system measures any shaft deflection.

If you would like to know more about the solutions discussed in this article please contact: Easy-Laser AB T: +46 31 7086300 W: www.easylaser.com E: info@easylaser.com

Graph illustrating movement both vertically and horizontally as the pipe flange bolts are tightened.

HAZARDOUS ENVIRONMENTS FOCUS Enaex and Sasol Announce the Conclusion of Deal to Establish Explosives Joint Venture

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ntegrated chemicals and energy company Sasol and Enaex, a subsidiary of the Sigdo Koppers Group, have announced the start of operations in Southern Africa. The new explosives joint venture Enaex Africa starts operating today, 1 July 2020.

In 2017, Sasol commenced with a detailed asset review to ensure all assets in the company’s global portfolio deliver against stringent financial metrics and where aligned with the company’s growth strategy.

In line with this review, Sasol’s explosives business was identified as having substantial growth potential that could be unlocked through collaboration opportunities, including the possibility of partnering with a world-class explosives brand.

Mining Industry,” said Sasol President and CEO Fleetwood Grobler.

Founded in 1920 in Chile, Enaex brings to the Southern Africa industry a century’s experience in the global explosives market with their core business being Ammonium Nitrate production – Enaex is the third-largest industrial grade ammonium nitrate producer in the world – explosives production and blasting services. •

In June 2019, after a robust evaluation process, Enaex S.A. was selected as Sasol’s preferred strategic partner to create a world-class explosives business on the African continent.

The new company will operate under the name of Enaex Africa. Enaex will be the majority shareholder and will take over management and operational control of the entity from 1 July 2020. Enaex in association with Sasol will comprise certain assets and associated activities spun off from the current explosives and rock fragmentation value chain of the base chemicals business of Sasol South Africa. This JV includes the associated business activities in both South Africa and other countries in Southern Africa.

“We are delighted to announce that on 1 July 2020, Enaex Africa in association with Sasol, will officially start operating in South Africa and on the African Continent. Enaex is a Chilean company celebrating a 100 years of history and leadership in the explosives business in South America and together with Sasol will be a force to be reckoned in the

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ubseaPartner delivers subsea services specialised in air and saturation diving through state-of-the-art equipment and performing safety measurements to improve the operational efficiency at the highest International diving standards such as NORSOK U-100.

The subsea contractor is a Subsea Installation and IRM specialist providing the full range of EPCI workflow mainly focusing on manned underwater intervention.

SubseaPartner charter vessels on case by case basis aiming an operational optimization and filling the individual project needs. Our LEAN way to comply with the value chain give clients full transparency in the entire project workflow.

The main sales product provides full turnkey solutions for operators of any Floating Storage Units or Floating Production Storage and Offloading units in partnership with our strategical partners. Throughout the life of field, our service starts at the early front-end engineering to mooring hook-up and station keeping - towards riser pull-in, installation & marine operations and commissioning support.

We even provide contingency service in case the need for manned underwater operations are needed.

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subsea installations as well as executing the operations in harsh ocean environment.

Computational Fluid Dynamics is utilized by SubseaPartner for advanced fluids calculations that otherwise cannot be performed without model tests. We have experience calculating vessel motion, slamming on subsea equipment, current/towing drag, thruster efficiency and more.

Using advanced dynamic and static analyses of various installations by using sophisticated software in combination with in-depth marine

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Advanced hydrodynamic analyses for fixed and floating marine structures are methods SubseaPartner uses to verify the stability and weight control. The motions and forces acting on single or coupled, fixed or floating structures due to waves are determined. The results of the analyses can be transferred to the structural analyses package for detailed analyses, simulation, and design.

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SubseaPartner’s statement is that manned underwater operation will encounter against an unmanned operation concept if there’s diving friendly depths. This statement remains unchallenged when it comes to determine the project total cost by the calculation of engineering, fabrication and installation cost. • SubseaPartner W: https://subseapartner.no E: commercial@subseapartner.no P: +47 91 91 15 90

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HAZARDOUS ENVIRONMENTS FOCUS Natural Gas Pipeline in Kentucky, USA, Had Several Defects

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federal report has revealed that a natural gas pipeline in Kentucky, US had several defects which its operator had missed during nine years of self-inspections prior to it suffering an explosion in August 2019. The pipeline, which is operated by Enbridge subsidiary Texas Eastern Transmission LP, exploded in the early hours of the morning, killing one person and injuring six others.

Although the federal officials who have been investigating the incident did not say the defects caused the explosion, the findings meant that Texas Eastern has been ordered to review 20 years of tests and figures to see if similar defects are likely to be present in other parts of the 775mile (1247km) long Line 15.

Texas Eastern’s Line 15 ruptured and exploded in the early hours of August 1, 2019 in Moreland, around 40 miles (65 km) south of Lexington. The blast destroyed railroad tracks and several homes in a nearby mobile home park where a woman was killed, and six people were hospitalised. It was the second incident to occur on Enbridge’s Texas Eastern natural gas pipeline in 2019 after two people were injured by an explosion in Ohio on January 21. The Texas Eastern pipeline measures 30 inches (76 cm) in diameter and runs from the Mexican border in Texas up to New York City.

The National Transportation Safety Board is still investigating the incident and is yet to determine the exact cause of the blast.

The details of undetected defects in Texas Eastern’s pipelines were revealed in a corrective order which was amended by the Pipeline and

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Hazardous Materials Safety Administration (PHMSA) in April 2020.

The order was first given shortly after the August 2019 explosion and aimed to ensure that the rest of Texas Eastern and Enbridge’s pipelines were safe.

The PHMSA’s order showed that Texas Eastern inspected the inside of the pipeline in 2011 and found no evidence of ‘hard spots’ which can develop into failure points. However, a review of the data from that inspection by the PHMSA showed that there were in fact 12 hard spots in the section of the pipeline which failed in 2019.

In another inspection in 2018 conducted by Texas Eastern, the pipeline operator found a “small dent with metal loss” on the part of the pipeline which failed a year later in August 2019. However, federal pipeline safety regulations meant that the defect did not require corrective action because too few people lived in the vicinity of the pipeline, the PHMSA order shows.

Following the review of the hard spots, the PHMSA said that continued operation of the line would result in the likelihood of harm to life, property, and the environment. As well as resulting in the review of 20 years’ worth of pipeline inspection data, the amended corrective order also requires surveying for leaks along the entire line and for Texas Eastern to report all actions that it is taking to fix the problems.

A spokesperson for Enbridge said that neither Enbridge not Texas Eastern will comment on the investigation or corrective order while the National Transportation Safety Board’s investigation continues. •

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NEWS - EUROPE Awarding framework contract for engineering and installation services on Statfjord

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quinor has, on behalf of the licence partners, awarded Apply a framework agreement for engineering and installation services on the North Sea Statfjord field. According to the agreement the parties will collaborate in new ways while carrying out the work on Statfjord safely and efficiently.

The agreement covers overhaul, replacement and modification deliveries on the three Statfjord platforms. The period of agreement is seven years, plus a three-year option. The agreement will take effect on 1 September 2020.

“Our ambition is to become a leading late-life operator on the Norwegian continental shelf. In order to succeed, we must apply new working methods to reduce costs. This will create opportunities for new investments in late-life fields, so that we can extract the last resources in a profitable way and with low carbon emissions,” says Kjetil Hove, senior vice president for the new business area Field Life eXtension (FLX), that was established on 1 April this year.

New collaboration model The supplier will be integrated in the FLX organisation in new premises at Forus. The companies will collaborate on the design and planning of the work to be carried out. Common drivers for the parties have been established to support the ambitions of Equinor FLX. “With this award we are establishing a closer collaboration with the supplier. Together we will drive simplification and standardization to perform the work safely and cost-effectively. We will also involve sub-suppliers early to achieve optimal solutions and common value creation. If we are to succeed on FLX’s ambitions, we must radically change the way we work together,” says chief procurement officer Peggy Krantz-Underland.

The companies will focus on simplified work processes, standardised products and solutions, and at the same time benefit from digital technology, such as 3D printing.

Creating higher value and extending field life Production from Statfjord will be extended by maturing new reserves for recovery and upgrading platforms as required. Around 100 new wells will be drilled in the period up to 2030. They will help maintain the current Statfjord production level beyond 2025, strongly increasing the activity level on the field and requiring considerable investments.

Statfjord A was scheduled for decommissioning in 2022, however, it has been decided to extend the field life to 2027. The lives of the Statfjord B and C platforms will be extended from 2025 to 2040. This will sustain high value creation from the field and secure profitable jobs. During 40 years of production, Statfjord has generated NOK 1 600 billion in gross revenue for the owners and Norwegian society.

The licensees on Statfjord are Equinor Energy AS (operator), Vår Energi A/S and Spirit Energy. •

PGS Starts Acquisition on 2020 Hammerfest Basin Extension Survey

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cquisition has begun on PGS’s latest ultra-high-density seismic survey in the Barents Sea. The survey extends Hammerfest Basin coverage further west and north into the southern Loppa High. The first data will be available Q4 2020.

The acquisition geometry builds on the innovative configuration previously applied on the PGS18004NBS survey, applying a wide-tow source configuration in combination with a tailored ultra-high-density GeoStreamer setup.

This season, PGS promises to obtain even more near offsets by extending the survey geometry used on the 2018 acquisition to push the towing limits achievable from a single vessel.

This technical set-up, which includes wide-source spread, highdensity streamers, and long tails for FWI, has been tailored for the precise imaging of extremely shallow targets without compromising illumination of targets at deeper levels.

“Efficiency and accuracy are required for successful exploration in the Barents Sea. The advanced design and technology offered by the Ramform Tethys will deliver both, and result in a superior dataset for this challenging and prospective area,” says Gunhild Myhr, VP New Ventures Europe at PGS. The survey area includes open acreage included in the APA2020 and held acreage.

Tailored Technology The Ramform Tethys seismic acquisition vessel is operating a highly effective, dense, 16-streamer spread of variable lengths, with 56.25 m separation, including a sparse set of 10 km long streamers for FWIbased velocity model building.

Through thorough planning and modeling, acquisition and imaging of this survey have been tailored to address known exploration challenges in the Barents Sea. •

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Shaping together a bright energy future

www.dunkerquelng.com www.newsletterdunkerquelng.com

NEWS - EUROPE Engie Announces Today Its Commitment to Embrace the B Team’s Responsible Tax Principles.

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he B Team is a non-profit organisation bringing together business and civil society leaders from around the world, with the aim of promoting a more sustainable economy with a positive impact on planet and people.

Launched at the Taxation and Sustainable Development Goals conference at the United Nations New York headquarters in February 2018, The B Team’s responsible tax principles articulate the best policies in seven key areas: accountability and governance, compliance, business structure, relationships with tax authorities, seeking and accepting tax incentives, supporting effective tax systems, and transparency.

ENGIE is thus confirming its commitment to contribute to best tax practices and to encourage the emergence of responsible taxation around the world.

Judith Hartmann, Executive Vice President, CFO and Member of ENGIE’s executive leadership team, says: “As a global player in the energy transition, ENGIE implements its values of responsibility and exemplarity towards society and the planet. The Group has made the transition to a carbon-neutral economy the core of its purpose. Its corporate responsibility must obviously be expressed to all its stakeholders. Thus, ENGIE’s tax policy responds to a renewed requirement to reconcile economic performance with the fair application of tax law in all the countries where it operates.” •

Aker Solutions’ Second Quarter of 2020 Developed Positively

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ker Solutions ASA: Improved Financial Results in the Second Quarter.

Aker Solutions’ second quarter of 2020 developed positively compared to expectations earlier this year when the COVID-19 pandemic started.

This has resulted in significant improvement of revenue, earnings and order intake in the quarter, due to faster-than-expected implementation of cost-saving measures, higher activity than first anticipated on existing projects and several new contract awards.

In the second quarter, the company expects operating revenue of about NOK 5.4 billion and EBITDA of about NOK 230 million. Excluding special items, EBITDA is expected to be about NOK 350 million. Special items mainly relate to restructuring costs of about NOK 115 million as the company adjusted the organization following lower activity levels.

The result improved as Aker Solutions made good progress on its previously announced NOK 1 billion cost saving program. The company also experienced increased activity in existing projects during the quarter, as the company and operators managed to keep activity levels up, despite restrictions imposed to manage the COVID-19 pandemic.

Sanctioning activity increased after Norwegian authorities introduced temporary tax incentives for oil and gas companies to start new projects. Aker Solutions won several new contracts for projects on the Norwegian Continental Shelf in June, and the order intake is expected to be about NOK 7 billion in the quarter.

Order intake in the second quarter includes about NOK 2.5 billion for the Breidablikk and Askeladd projects awarded by Equinor, excluding options. The company also experienced a significantly higher than anticipated order intake growth across several ongoing projects and frame agreements, particularly in the Brownfield area. •

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BASF Group: Operating Result in the Second Quarter of 2020 Above Market Expectations

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ASF has released preliminary figures on business development in the second quarter of 2020. Sales declined by 12.4 percent in the second quarter of 2020 to €12,680 million (Q2 2019: €14,478 million).

EBIT before special items, which reflects the development of the BASF Group’s operating business in the second quarter of 2020, amounted to an expected €226 million, above market expectations and in the range indicated by BASF, but considerably below the figure for the prior-year quarter (Q2 2019: €995 million). The decline in EBIT before special items is the result of significantly lower earnings in the Materials, Surface Technologies, Chemicals and Industrial Solutions segments compared with the prior-year quarter. This was mainly driven by lower demand from the automotive industry – the company’s most important customer industry. Year-on-year earnings growth in the Nutrition & Care segment and in Other had an offsetting effect. Earnings in the Agricultural Solutions segment were at the level of the prior-year quarter.

The BASF Group’s EBIT in the second quarter of 2020 amounted to an expected €59 million, considerably below the figure for the prior-year quarter (Q2 2019: €507 million).

The BASF Group’s net income is expected to amount to minus €878 million due to a non-cash-effective impairment of the shareholding in Wintershall Dea, considerably below current analyst estimates and the figure for the prior-year quarter (Q2 2019: €5,954 million). The impairment of around €800 million is the result of lower oil and gas price forecasts and changed reserve estimates. In the prior-year quarter, net income included a book gain of €5,684 million on the deconsolidation of Wintershall following the merger of Wintershall and DEA as of May 1, 2019. •

NEWS - MENA ADNOC Announces $20.7 Billion Energy Infrastructure Deal

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he Abu Dhabi National Oil Company (ADNOC) announced today that it has entered into an agreement with some of the world’s leading infrastructure investors and operators, sovereign wealth and pension funds. A consortium of investors comprising Global Infrastructure Partners (GIP), Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board (Ontario Teachers’), NH Investment & Securities and Snam (the Consortium), will invest in select ADNOC gas pipeline assets valued at $20.7 billion.

In one of the largest global energy infrastructure transactions, the Consortium will collectively acquire a 49% stake in ADNOC Gas Pipeline Assets LLC (henceforth referred to as “ADNOC Gas Pipelines”), a newly formed subsidiary of ADNOC with lease rights to 38 pipelines covering a total of 982.3 kilometers, with ADNOC holding the 51% majority stake. The innovative transaction structure allows ADNOC to tap new pools of global institutional investment capital, whilst at the same time maintaining full operating control over the assets included as part of the investment.

Under the terms of the agreement, ADNOC will lease its ownership interest in the assets to ADNOC Gas Pipelines for 20 years in return for a volume-based tariff subject to a floor and a cap. The transaction will result in upfront proceeds of over $10 billion to ADNOC and is subject to customary closing conditions and regulatory approvals.

The gas pipeline network connects ADNOC’s upstream assets to local UAE off-takers. Ownership of the pipelines, management of pipeline operations, and all responsibility for associated operational and capital expenditures will remain with ADNOC. For ADNOC’s partners, this transaction represents a unique opportunity to invest in quality energy infrastructure assets with a low-risk profile that generate stable cash flows.

Commenting on the transaction, His Excellency Dr. Sultan Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “We are pleased to once again partner with some of the world’s leading global infrastructure and institutional investors in what marks the region’s largest energy infrastructure investment. This milestone transaction demonstrates the trust and confidence placed in ADNOC by the global investment community and unlocks significant value from our pipeline portfolio, following last year’s groundbreaking oil pipeline infrastructure investment partnership. Today’s landmark investment signals continued strong interest in ADNOC’s low-risk, incomegenerating assets, and sets another benchmark for large-scale energy infrastructure investments in the UAE and the wider region. It solidifies ADNOC’s position as an attractive partner and reinforces the UAE’s track record as the region’s go-to foreign direct investment destination, even during the current unprecedented circumstances.”

Adebayo Ogunlesi, Chairman and Managing Partner of GIP commented: “We are delighted to be entering into this strategic partnership with ADNOC, one of the world’s leading energy companies.

ADNOC’s gas network is a core piece of midstream infrastructure in the UAE and this transaction presents a unique opportunity to invest in an asset of this quality and importance, while also supporting ADNOC in their smart growth strategy. This transaction underscores GIP’s strategy of investing in high quality infrastructure assets and developing long term strategic partnerships with industry leaders.”

“We are pleased to invest in this strategic pipeline system, which serves as the critical link between UAE low-cost natural gas supply and robust in-country demand,” said Bruce Flatt, CEO, Brookfield Asset Management. “This transaction aligns with our strategy of investing in high quality, essential assets generating stable and predictable cash flows in a sector we know well. ADNOC has established itself as one of the world’s leading natural gas producers, with an exemplary operational record. We look forward to partnering with them in support of this critical asset and sector.”

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“This strategic transaction is attractive to Ontario Teachers’ as it provides us with a stake in a high-quality infrastructure asset with stable long-term cash flows, which will help us deliver on our pension promise,” said Ziad Hindo, Chief Investment Officer, Ontario Teachers’.

“This new partnership with ADNOC and a group of world-class institutional and infrastructure investors expands our global presence and provides further geographic diversification to our portfolio.”

“Investing into ADNOC’s gas infrastructure and supporting Abu Dhabi’s energy initiatives reinforces our investment diversification strategy and demonstrates Korea’s growing presence in the global infrastructure space. I am confident this milestone transaction can become a stepping-stone to broaden Korean investments in the region,” remarked Young-Chae Jeong, Chairman & CEO of NH Investment & Securities.

Snam CEO, Marco Alverà, said: “With this strategic transaction, we strengthen our international footprint by entering a country and a region that are key to our sector. Our aim is to promote further cooperation opportunities, particularly in the energy transition. We will work with ADNOC and the Consortium partners by leveraging our industrial skills, know-how and innovative solutions in natural gas infrastructure management and provide our contribution to the UAE’s energy system. This transaction was carried out remotely over the past months, testifying the resilience of our company and its willingness to continue its growth path.”

This agreement is the largest transaction since ADNOC announced the expansion of its partnership and investment model in 2017, which aims to unlock value for ADNOC. Since then, ADNOC has entered the debt capital markets for the first time, issuing a $3 billion bond backed by the Abu Dhabi Crude Oil Pipeline; partially floated ADNOC Distribution, the first-ever IPO of an ADNOC Group company; and entered into several strategic partnerships in its drilling, refining, fertilizer and trading businesses, amongst others. These transactions and today’s landmark announcement are part of ADNOC’s ongoing delivery of its value creation strategy.

This milestone agreement reinforces ADNOC’s focus and role as a catalyst for responsible and sustained investment and value creation for Abu Dhabi and the UAE in this challenging period. The partnership unlocks significant capital that can be deployed into strategic initiatives to support ADNOC’s smart growth strategy.

The strategic joint venture will see ADNOC pay ADNOC Gas Pipelines a volume-based tariff for the use of pipelines that transport sales gas and natural gas liquids (NGL) from ADNOC’s upstream assets to Abu Dhabi’s key outlets and terminals. The tariff will be charged on the total volumes transported through the pipelines, together with liquefied natural gas (LNG) flows, subject to a volume cap. The new subsidiary will distribute 100% of free cash to the investors in the form of quarterly dividends.

Bank of America Securities, First Abu Dhabi Bank and Mizuho Securities acted as financial advisors to ADNOC while Moelis & Company acted as an independent financial advisor to ADNOC. ADNOC’s Gas Strategy The UAE holds the world’s sixth-largest natural gas reserves. ADNOC’s gas strategy aims to meet in-country gas demand and support the UAE in achieving gas self-sufficiency. Dynamics for the UAE gas market are attractive, driven largely by domestic utilities and growing industrial production, in addition to the demand created by ADNOC’s own upstream and downstream activities.

ADNOC’s Sustainability Strategy ADNOC has a legacy of responsible oil and gas production and longstanding commitment to environmental stewardship. Earlier this year, it announced a comprehensive set of sustainability goals, which included plans to decrease its greenhouse gas (GHG) emissions intensity by 25% by 2030, strengthening its position as one of the least carbon-intensive oil and gas companies in the world. •

NEWS - NORTH AMERICA Schlumberger Introduces Symphony Live Downhole Reservoir Testing

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echnology platform enables well testing control to deliver real-time downhole measurements

Schlumberger introduced today Symphony* live downhole reservoir testing, a technology platform that enables operational control of the downhole testing toolstring to deliver real-time downhole measurements. Symphony testing reduces operational time and improves safety and efficiency while enabling informed decision making for better reservoir understanding and reduced field development planning uncertainty.

Symphony testing unites Muzic* wireless telemetry with the downhole string, creating a digital solution that enables real-time control of the dynamic range of conditions during well testing operations. The digitally enabled toolstring is customized for the test objectives to position, isolate, connect, measure, control, sample, select and profile the reservoir with real-time verification.

“Symphony testing’s digital enablement significantly increases operational control to acquire actionable data in real time, saving our customers operational time and achieving well test objectives more efficiently,” said Aparna Raman, president, Reservoir Performance, Schlumberger. “Our Symphony testing platform is supported by our Performance Live* digitally connected service that leverages domain expertise, cloud-based applications and automated data workflows to enable faster, more informed decision making.”

Extensive qualification of Symphony testing has been conducted offshore Asia, the Middle East and the North Sea. In offshore Asia, Symphony testing delivered perforating and well testing services in a challenging shallow reservoir. Using wireless control, Symphony testing eliminated the potential pumpout of a conventional drillstem testing (DST) toolstring that operates with pressure pulses. By quickly modifying test sequences guided by real-time data, Symphony testing helped avoid sand production while maintaining a single run, saving the operator 24 rig hours. •

Valero Energy Announces CFO Transition

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alero Energy Corporation (NYSE: VLO) today announced that Jason Fraser, who has served as Valero’s Executive Vice President and General Counsel since January 2019, has been appointed by Valero’s Board of Directors to serve as the Company’s Executive Vice President and Chief Financial Officer, effective July 15, 2020. Mr. Fraser will succeed Donna Titzman, who will remain as Executive Vice President and Chief Financial Officer until her retirement from the position on the same date, and will continue with the Company for a transitional period thereafter.

Richard Walsh, Valero’s current Vice President and Deputy General Counsel, will be promoted to Senior Vice President and will succeed Mr. Fraser as General Counsel, effective July 15, 2020.

“We are extremely excited to have Jason move into the CFO role with Rich taking on the General Counsel position, and are confident in their ability to help Valero execute on its strategic objectives and ensure its continued financial strength,” said Joe Gorder, Valero’s Chairman and Chief Executive Officer. “We are also grateful to Donna for her contributions to Valero during her tenure as CFO. Donna has played a key role in the growth of our Company since she joined us in 1986. We appreciate her continued support while Jason transitions into the role, and we wish her the very best in the future.”

Mr. Fraser said, “It is a great privilege for me to accept the CFO role. I look forward to continuing to work closely with the rest of our excellent management team, the Board and our dedicated employees. The capital discipline that has been a constant in Valero’s strategy, including the prudent management of our strong balance sheet and delivering on our commitment to stockholders, will remain an uncompromising priority while we proactively address the uncertainties that we face in the current environment.”

Mr. Fraser has significant leadership experience at Valero, having served as Valero’s General Counsel since January 2019 and previously serving as a Senior Vice President with oversight of Valero’s Public Policy, Strategic Planning, Governmental Affairs, Investor Relations and External Communications functions. Previously, Mr. Fraser also served as President of European Commercial Operations, overseeing the Company’s European commercial businesses, and Vice President of Specialty Products Marketing. Mr. Fraser began his career with Valero in 1999. Mr. Fraser earned his Bachelor of Business Administration degree from the Business Honors Program at the University of Texas at Austin, and his Juris Doctor from Harvard Law School. Prior to attending the University of Texas, Mr. Fraser served in the U.S. Army from 1986-1990.

Mr. Walsh currently serves as Valero’s Vice President and Deputy General Counsel, with responsibility for Valero’s litigation, regulatory and employment law departments, as well as the Company’s ad valorem tax and environmental, health and safety groups. He has previously served in many different leadership roles within Valero’s legal department. Mr. Walsh earned his Bachelor of Arts and Juris Doctor degrees from the University of Oklahoma. •

26

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PIPELINES

BP Signs Gas Supply Agreement With ENN bp has signed a gas supply agreement with ENN Group (ENN) to jointly support the growing energy needs of China’s southern Guangdong region.

Under the terms of the agreement, bp will provide ENN with 300,000 tonnes per year of pipeline gas regasified from LNG for two years from 1 January 2021 in Guangdong. The LNG will be received and regasified through the LNG receiving terminal of Guangdong Dapeng LNG Company Limited (GDLNG) where bp holds regasification capacity.

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ev Sanyal, executive vice president of bp gas & low carbon energy, said: “Our strategy is to integrate energy value chains and, with this transaction, we have created an innovative model that integrates upstream gas resources, transportation and trading, into downstream markets in China. This is the first time an international energy company will regasify LNG through a Chinese terminal and also directly supply gas to customers. We look forward to further cooperating with ENN and contributing to China’s ever-growing energy demand.”

Wang Yusuo, chairman of ENN Group, said: “Today’s cooperation will enable ENN to provide better resources and services to our customers. It will also empower the energy industrial reform and development in China.

Looking into the future, bp has announced its respected ‘Net Zero’ ambitions. ENN is also dedicated to building a modern energy system by adopting digital technologies. These visions to better build our planet, will need support from all aspects. It’s a great beginning. We hope to deepen cooperation with innovative outcomes, together contributing to the development of global clean energy.”

According to bp’s 2020 Statistical Review of World Energy, global natural gas consumption grew by 2% in 2019, with a 54 billion cubic metres increase in LNG exports. The strong growth was boosted by China, where the

country’s LNG imports rose by 11.3 billion cubic metres, making it the biggest increase in a single country.

“As China progresses the coal to gas switch and advances the energy transition, bp is committed to being a trusted and valued partner, bringing smart and low carbon solutions to contribute to a net zero future,” added Simon Yang, bp China president and bp senior vice president, regions, cities & solutions for China.

To date, bp is the first international energy

company to invest in an operating LNG terminal in China. GDLNG, which bp has a 30% stake in, is China’s first pilot LNG import and regasification terminal. Dongguan ENN is an important customer of GDLNG, cooperating more than ten years. For the past decade, GDLNG has delivered approximately 50% of the accumulative gas consumption to its customers in Guangdong region, making it one of the most utilized terminals in China.

Zheng Hongtao, senior vice president of ENN Group gas business, said: “The cooperation has enriched gas supply in the Guangdong region, providing support to the development of ENN’s gas business. Meanwhile, the innovative business model of LNG import, processing and transportation, sets a good example for China’s LNG industrial market reform.” bp is one of the leading foreign investors in the Chinese oil and gas sector. bp’s business activities in China include oil and gas exploration and development, petrochemicals manufacturing and marketing, aviation fuel supply, oil products retailing, lubricants blending and marketing, oil and gas supply and trading, LNG terminal and trunk line operation and chemicals technology licensing.

Building on its business successes in China, bp has also expanded partnerships with Chinese national energy companies internationally. •

28

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MIDSTREAM & PIPELINES

Interview with Alexey Miller, Chairman of Gazprom Management Committee Mr. Miller, the outcomes of Gazprom’s Shareholders Meeting were announced today. Could you please tell us what are your five highlights from last year?

It was an extremely eventful year for Gazprom. If you want me to choose just five highlights, I would certainly start with the development of the resource base. We expanded our capacities at the new gas production center in Yamal, which is of key importance to our country. In 2019, we followed up the development of the Bovanenkovskoye field by starting to develop the Kharasaveyskoye field, which is located farther north and is unique in terms of reserves.

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second highlight was the successful operation in the autumn/winter season.

Our performance was confident as usual, thanks in large part to underground storage facilities.

In 2019, we brought their deliverability to an alltime record of 843.3 million cubic meters per day. As a result, the reliability of our gas supplies in winter reached a new level.

Clearly, a third highlight goes to our projects in external markets. We enhanced our export potential and launched not one but two new export corridors – TurkStream and Power of Siberia. This means even more reliable supplies to the West in parallel with the implementation of long-term strategic agreements with China in the East.

Russian gas processing projects are the fourth highlight. Their significance for Gazprom has been growing tremendously in recent times.

Last year, we passed the halfway point in the construction of the Amur Gas Processing Plant and kicked off the project in Ust-Luga. Both of those facilities will join the ranks of the largest facilities in the world. I would also like to single out the successful project finance deal for the Amur GPP. The EUR 11.4 billion transaction is the largest deal in the history of Gazprom.

My fifth and, I suppose, last highlight is our financial performance. Gazprom remains steady in its work. The Company is very durable, as evidenced by our dividends We are going to pay out RUB 360.8 billion, essentially the record-breaking level of last year, despite the challenging situation that is currently facing the global economy at large and the energy sector in particular.

Has this challenging situation affected the Company’s projects in any way? What are the current plans and what is Gazprom working on?

Gazprom has a clearly outlined goal-setting system. Among our goals is the annual replenishment of the resource base. Thanks to geological exploration activities, our reserve replacement ratio consistently exceeds 1. It has been like this for the past 15 years, and it will remain so in 2020. Yamal accounts for the bulk of the new reserves. This year has already seen a discovery of another major field in the region, which we named 75 Years of Victory.

At present, Gazprom’s investment activity is primarily focused on Yamal and the East.

In Yamal, we continue the pre-development of the Kharasaveyskoye field: in June, as planned, we started production drilling there.

Recently, we began building a comprehensive gas treatment unit. We welded and laid one-fifth of the connecting gas pipeline to Bovanenkovo. As early as 2023, first gas from the field will be fed into the Unified Gas Supply System.

We have a very heavy workload at the Kovyktinskoye field in the Irkutsk Region.

We continue to build wells. This year, we are starting to construct the first CGTU and the section of Power of Siberia stretching from Kovyktinskoye to the Chayandinskoye field.

Active work is being done at the Sakhalin gas production center: this year, two wells will be hooked up at the Kirinskoye field.

As our geographic reach keeps expanding, the gas we are extracting keeps changing in composition. We are producing increasingly more multi-component, ethane-containing gas. This refers to not only the new eastern fields – Chayandinskoye and Kovyktinskoye – but also the deeper-lying deposits in the Nadym-Pur-Taz region of Western Siberia.

This is the tangible reason for the significant enhancement of our processing activities.

In the East, we are building the Amur Gas Processing Plant. In the West, we are constructing the complex in Ust-Luga. These facilities will be among the largest in the world.

Moreover, the Amur GPP will be the biggest global producer of helium, while the complex in Ust-Luga will have the largest output of liquefied natural gas in Northwestern Europe.

And, of course, processing generates added value, which means a sizable additional monetary flow.

As regards our work in the European market, we continue providing reliable gas deliveries to our consumers. We hold our position as the largest exporter there. The period the gas market is going through today is not an easy one. There are difficulties for all of its participants, but we have a larger reserve to withstand any challenges. Gazprom has a whole range of significant advantages, such as

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a robust resource base, a well-balanced trading portfolio, along with flexible conditions of supplies and modern tools for trading. That is why we step up our cooperation activities even at this time; for instance, we have just signed a new long-term contract for gas supplies to Greece.

Speaking of the financial situation, Gazprom maintains a high level of stability and reliability.

By the beginning of this year, we accumulated a significant liquidity cushion amounting to over USD 22 billion across the Group. Investors show a great deal of trust in us; this year, we placed two issues of bonds in US dollars and euro, and two ruble bonds, all of them on very favorable terms. On Monday, we are going to close one more deal in US dollars.

According to all of the “Big Three” international agencies, i.e. S&P, Moody’s and Fitch, Gazprom’s long-term credit ratings remain unchanged, whereas the ratings or the rating outlooks for many foreign oil and gas companies have been lowered by at least one of those agencies.

By the way, a decline in gas demand is not a universal trend for foreign markets. For instance, China is continuously ramping up both gas consumption and gas imports.

In general, how would you assess the potential for cooperation between Gazprom and China?

The potential is very high. China’s demand for gas will grow at a very high pace. Last year, gas consumption in China grew by almost 10 per cent, thus exceeding 300 billion cubic meters. In 15 years, the demand for gas in the country may double.

Today, Gazprom is supplying gas to China via the Power of Siberia gas pipeline. In just a few years, we will increase the supply volume to 38 billion cubic meters. The supplies via Power of Siberia will grow faster than both the imports of LNG and the gas supplies from Central Asia to China.

I would like to note that Gazprom and its Chinese partners are currently negotiating an increase of gas supplies via the Power of Siberia pipeline by 6 billion cubic meters, i.e. to 44 billion cubic meters of gas per year, as well as the ways to arrange gas supplies from Russia’s Far East, along with the construction of Power of Siberia 2 and the western route.

Considering all of this, we can say that in the foreseeable future the volume of pipeline gas exported to China will exceed 130 billion

cubic meters, which is comparable with our supply volumes to the traditional markets.

As for gas grid expansion in Russian regions, what is the main item on your agenda?

The main item, of course, is the task set by the President of Russia as regards the implementation of the gas supply and gas grid expansion programs in Russian regions. We have been given totally clear timeframes for the stages and completion: the years 2024 and 2030.

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NEWS - MENA Al-Bader: First Crude Shipment to Reach Refinery August 19

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uwait Petroleum Corporation (KPC) hosted a press conference in August 3, 2017 to announce the first shipment of crude to the Nghi Son Refinery and Petrochemicals Complex in Vietnam, in preparation for the start of operations. Waleed Al-Bader, Deputy Managing Director for Crude and Derivatives Marketing at KPC, and Ghanim AlOtaibi, Deputy Chief Executive Officer for Asia at Kuwait Petroleum International (KPI) spoke during the press conference.

The shipment carries two million barrels and is expected to reach the refinery in August 19th, Al-Bader said, adding that an additional two million barrels are set to be shipped in August 11th.

A shipment carrying four million barrels will be sent to the refinery in September, he said, adding that six more shipments carrying 12 million barrels will be sent to Vietnam during the fourth quarter of this year.

The refinery has a processing capacity of around 200,000 barrels of Kuwaiti crude a day, he noted.

The refinery was established in Nghi Son, which is located around 200 kilometers south of Hanoi, Al-Bader said. It was designed to process Kuwaiti crude by 100%, with a capacity of up to 200,000 barrels a day.

The project started in July 2013 and was completed in 43 months, he noted.

The refinery targets improving Kuwait’s oil relations with Vietnam and other global partners, Al-Otaibi said, adding that the project is one of the most important oil projects that embody the vision of KPC and its subsidiaries to reach a leading global position in the downstream industry and marketing.

Iran Calls for Resumption of Gas Exports to Turkey

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n a meeting with his Turkish counterpart Mouloud Chavosh Oglu, Iranian Minister of Foreign Affairs stressed the need to resume Iran’s gas exports to Turkey, and to repair and rebuild the damaged section of the gas pipeline.

Mohammad Javad Zarif, who is visiting Turkey at the helm of a delegation, met with his Turkish counterpart to express solidarity and support in the fight against the coronavirus pandemic and its aftermath.

He also discussed ways to compensate for the decline in trade between the two countries over the past four months due to lockdowns caused

by COVID-19.

During the meeting, the Foreign Minister also stressed the need to resume Iran’s gas exports to Turkey and repair and rebuild the damaged section of the gas pipeline.

Agreeing to hold the Astana Summit virtually in the coming weeks and then holding a summit in Tehran at the earliest opportunity, issues regarding Syria, Yemen, Libya and the fight against terrorism were other topics discussed by the Foreign Ministers of the Islamic Republic of Iran and Turkey in two rounds of talks. •

The refinery and petrochemical complex project in Vietnam, which is affiliated with KPI, will realize KPC’s strategic goals and provide a safe long-term outlet for the Kuwaiti crude, he added.

Meanwhile, Al-Otaibi applauded the role of Kuwaiti young people working in the project, and their contributions which helped push progress forward. He indicated that safe operation for all producing units to achieve maximum capacity and commercial operation as soon as possible is currently the most prominent challenge, noting that KPC started retail marketing inside Vietnam with strategic partners through five stations that were built as part of a retail stations’ network to cover the local market’s demand. Al-Otaibi said that he is looking forward for long-term partnerships with other global companies similar to the Vietnam refinery project.

Notably, a joint company was established as the owner of the refinery and petrochemical complex project in Vietnam, where KPI owns a 35.1% share, Japan’s Idemitsu Kosan owns a 35.1% share, PetroVietnam owns a 25.1% share and Japan’s Mitsui owns a 4.7% share. •

Updates on Oil Spills South of Kuwait’s Territorial Waters

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he official spokesman of the oil sector Sheikh Talal Al-Khalid AlSabah gave an update on the latest developments regarding the oil spills south of Kuwait’s territorial waters. Kuwait Oil Company’s (KOC) and Kuwait National Petroleum Company’s (KNPC) emergency teams are currently working on containing the spills in coordination with Kuwait Gulf Oil Company (KGOC), Petroleum Industries Company (PIC), Ministry of Electricity and Water (MEW) and Environment Public Authority (EPA), he said. All material available were harnessed, and efforts were taken to control the oil spills, he indicated, adding that Saudi Arabian Chevron provides assistance to emergency teams, while Oil Spill Response Limited (OSRL) were called to provide consultancy regarding plans to handle the spills.

An emergency team comprising members from the oil sector and the Ministry of Electricity and Water, supported by the Interior Ministry, carry out periodic air surveys to follow up and assess the oil spills’ status.

The team is currently focusing on cordoning the area and securing seawater entrances for the north and south Zoor plants, while beaches will be cleaned after MEW plants are secured and making sure that the seawaters are not contaminated with other spills. Meanwhile, oil spills near the coastline are being removed, while coordination is ongoing with the relevant departments to identify the source of the spills. •

32

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NEWS - NORTH AMERICA Enterprise Ramps up Ethylene Exports; Commissions Ethylene Storage and Pipeline

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nterprise Products Partners L.P. (NYSE:EPD) today announced that the company’s ethylene export terminal at Morgan’s Point, Texas, a joint venture with Navigator Holdings Ltd. (NYSE: NVGS), has exceeded design interim loading capacity and expects to export more than 175 million pounds for the month of June. The terminal is in the process of loading a record-sized ethylene cargo of 44 million pounds on the Navigator Eclipse. The partnership expects to complete the construction of an aboveground ethylene storage tank, which will bring the total loading capacity of the marine terminal to 2.2 billion pounds per year, by the end of 2020.

The marine terminal volumes are supported by Enterprise’s highcapacity ethylene storage hub and pipeline system, which is connected to four ethylene pipeline systems. Enterprise expects to complete three additional connections by the end of 2020, linking its system to a majority of ethylene production capacity in Texas. Enterprise’s open access ethylene storage hub and pipeline system provides domestic ethylene producers access to both domestic and global markets.

“To meet the growing demand for petrochemical products, Enterprise built the world’s first fully open access global hub for polymer grade propylene; now, we have developed the first global hub for ethylene,” said A.J. “Jim” Teague, co-chief executive officer of Enterprise’s general partner. “These hubs are transforming how ethylene and propylene markets transact and will create a true marketplace for the world’s primary petrochemical producers, consumers and traders. These hubs provide the essentials for an efficient market: reliable supplies, price transparency and access to domestic and global markets.”

Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Our services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and export and import terminals; crude oil gathering, transportation, storage and export and import terminals; petrochemical and refined products transportation, storage, export and import terminals and related services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership’s assets include approximately 50,000 miles of pipelines; 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 Bcf of natural gas storage capacity. •

Rystad: FPSO Awards Are Set to Recover to Seven Vessels Next Year

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it by the second industry downturn in five years, global awards for floating production, storage and offloading (FPSO) vessels will likely be limited to a single unit in 2020, Rystad Energy believes, as exploration and production firms slash budgets and activity. Similar to the previous downturn, awards are set to recover next year, with seven projects likely to be sanctioned.

Modec won the only contract so far awarded in 2020 and will supply a new-built FPSO for Woodside’s Sangomar development in Senegal.

The vessel, which will be the first FPSO to operate in Senegal, will be supplied on a turnkey basis and feature topsides capable of handling 100,000 barrels per day (bpd) of oil and 130 million cubic feet per day (cfd) of gas. Rystad Energy estimates that the total greenfield capex for Sangomar phase 1 will be around $4.2 billion.

For the remainder of 2020, we don’t expect to see any new FPSO contracts being awarded. Over the last 10 years, only 2016 saw a lower level of activity when not a single FPSO contract was awarded. However, from 2016 activity quickly rebounded with 27 awards in the three-year period from 2017 to 2019.

“This time too, we expect to see a speedy comeback in FPSO sanctioning with seven projects expected next year, including Bacalhau and Mero 3 in Brazil and Payara (Prosperity) in Guyana,” says Aleksander Erstad, energy research analyst in Rystad Energy.

Aside from new FPSO contracts, three charter contract amendments were disclosed in the second quarter of 2020.

The first contract amendment was for Altera Infrastructure’s (previously Teekay Offshore) Petrojarl Knarr, which has been on contract with Shell since 2015. The amendment extends the charter period from March 2021 to March 2022. Under the previous agreement, Shell would pay a penalty if they terminated the contract before 2025. Now, this termination penalty has been removed in return for a new production and oil price tariff. The day-rate is also set to fall from March 2021 as low oil prices hurt the field’s profitability. It now seems likely that Shell will shut down the field a few years down the road. Liquids production at Knarr averaged 12,000 bpd in 2019.

In India, Bumi Armada and Shapoorji Pallonji Group received a notification from ONGC about their intention to extend the charter contract for the Armada Sterling FPSO. The seven-year fixed portion of the charter contract expired on April 19 and ONGC now has six annual extension options that can be exercised. The length of the current extension is not yet disclosed as contract formalizations have stalled due to the Covid-19 lockdowns in India. Bumi Armada and Shapoorji Pallonji Group also own and operate Armada Sterling II for ONGC, and a third FPSO for KG-DWN-98/2 is currently undergoing conversion work at Sembcorp’s Tuas Boulevard Yard in Singapore.

BW Offshore received a charter extension for the BW Cidade de São Vicente FPSO which will keep the vessel employed until October 9, 2020. The FPSO operates as a well testing facility and has performed tests on multiple locations in Brazil since it started working for Petrobras in 2009 as the first production unit in the massive Lula (previously Tupi) field, kickstarting the field’s production. Ten years later, the Lula field went on to produce 1 million bpd from nine FPSOs. BW Cidade de São Vicente is currently conducting an extended well test at Farfan in the Sergipe-Alagoas basin. •

34

PROJECT LOGISTICS MANAGEMENT THE “XELLZ WAY”

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EXPLORATION & PRODUCTION

From Your Mind to Market Oil and Gas Innovation sits down with Bjørn Brekne, Petroleum Technologist and Business Developer, of Bebekon AS to learn more about what it takes to get a great idea to market, and turn it into a successful business. Many issues arise for a new startup, often unforeseen, so it can be quite useful, even essential for such a company to gain the knowledge and experience from a consultant such as Mr Brekne. We delve deeper into these issues, to help inform how to mitigate risk factors and costs, and make sure you are prepared for the road ahead.

OGI: Could you start by explaining Bebekon 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?

Bebekon: The Norwegian company, Bebekon AS, has been operating its current model since 2008 and has participated in several innovation enhancement, idea captures, incubator and business development projects. Bebekon offers small, medium, and big O&G related companies, its commercializing experiences gained as innovation manager and business developer for a major O&G company.

The founder and only employee holds a more than 40 years old degree in petroleum engineering. Broad experience from all segments of the industry, gives Bebekon the overall picture in evaluating idea potentials.

Seed funds and private equity players, all values experiences when making decisions.

The skill of early pinpointing and idea’s potential often allows Bebekon to work on “no cure, no pay” basis.

OGI: What are some of the difficulties that companies face when trying to bring a new product to market?

Bebekon: Say you have secured funding and the development goes well; the product will do no good without piloting. Finding the first user is often more difficult than finding investors. Have an oil company to see the potential in investing. If so, it is in their interest to contribute to the industrialization, by being the first user.

The costs offshore are high, so is the risk. That is why operators hesitate to implement “not proven” technology. A big hurdle: If no one dare to take the risk, the technology will never be proven and will never come to use. This is a contradiction the industry needs to fight:

“What comes first, the hen or the egg…”

If the innovation is disruptive, the chance of implementation is low: The industry has lost “an ocean” of opportunities. It is said that the offshore business is conservative, that is true, but it is actually the risk-allergy that is ruling.

Sometimes it only takes one person’s disbelief to stop implementing ground breaking technology innovation. If technology decision makers do not feel involved from the start, they may fight the idea on principle basis.

OGI: What are the different areas (sectors) that Bebekon assists companies with, and could you give examples Bebekon: Drilling and well technology are closest to home. Even though, Bebekon has advised innovation projects all the way from up- to down-stream to land.

Lately, material technology has taken some time; composites: Replacing steel subsea and downhole with composites.

Composite shields to protect flowlines, hoses and cables on the sea bottom is a new ongoing product category. A new trend, or more correctly, a reestablished trend, is to implement composite in the well design, particularly for deep waters.

Oil companies have long focused on green technology and work procedures. Bebekon assists a multi inventor in his effort to remedy implementing a cost effective, safer and environmentally friendly, digital and automated way to transfer and dispose high viscous oil contaminated drill cuttings.

OGI: Could you talk about the resistance

36

people can face when pitching an idea internally in a corporation?

Bebekon: “it will never work, tried it before, what makes you so sure, what do you know?” are typical comments when pitching an idea in a corporation. Sadly, people that should know better often have one agenda point: How to shoot down the idea, how to get the person or persons down from their pedestal.

The industry misses a lot of ground-breaking technology that could discover and exploit new reserves and extend existing fields. Big corporates have big sectors mitigating risks. But no one have sectors mitigates opportunities.

What if you could receive a business card saying: Manger technology opportunity?

New ideas are often met with: “We are happy and comfortable with the way we are doing it today. We do not want any changes, good luck to you”.

The more polite variant: “Come back when the idea is more mature”. What they really mean: When someone else, a competitor, is onboard.

Then, the fear of being outdistanced clicks in, and they may want to listen.

Hierarchy organisation models are resistance put into system. The best experiences in fast track innovation projects are results from flat organizational charts.

OGI: Could you talk about some of the difficulties that arise in relation to securing venture capital as an unexperienced person?

Bebekon: Investors see through you. If you are not prepared, if you have not thoroughly thought through your case in advance, they have other fish to fry.

“It’s Not What You Do, It’s Why You Do It”, is a saying. (Sinek’s theories).

If you do not convince the venture capitalist that you have established a company with IPR for a technology with acceptable TRL, that you understand development risks, represent a team

with sufficient technology and economical skills, understand the market and the state of the art, doors are closed.

Freedom to operate and time to market are often problematised. Likewise, if the technology need is insufficiently established.

Pitching an idea is demanding. You want to tell everything in a few minutes, (if you are lucky, 10), explain the problem solved, and finally you’ll need to convince that it is worthwhile investing. Focus on value proposition, what the product is worth for the user – are the customers willing to pay the cost compared to the user benefits? Market understanding and competitors, and, the magnitude of return of capital vs. time to marked - explain the business potential.

OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions?

Bebekon: An oil spill clean-up association had the need for new and better equipment for

harsh environment. Bebekon facilitated an innovation campaign and harvested several sustainable ideas, some of them disruptive innovations.

Bebekon may challenge creative people showing “how we do things in our business”.

For example, tripping operation on a drilling unit. Crazy ideas may pop up in the head of people not fastened in established procedures.

That was the background for the company behind the multiuse, multidiameter, sitting constantly around the drill string - type iron roughneck that also are used as a work platform and lifting device.

The idea and the people behind the fully robotised drill floor were challenged by environmental matters in demanding exploration areas. Securing interest and funding from established O&G project organisations with a goal to comply with political restrictions, was the breakthrough puzzle piece to get the development going.

Today, the system is available through a multinational drilling company.

Innovative use of suction anchors, was an idea captured, adopted and, as for the mentioned examples, financed by a major oil company.

OGI: Any other examples?

Bebekon: Along with typical “from idea to business” cases, Bebekon also has case histories within accusation & mergers. Primarily small companies in need for a broad network to find new owners or investors.

OGI: Thank you for your time. • If you would like to know more about the solutions discussed in this article please contact: Bebekon AS T: +47 916 23 067 W: www.bebekon.no E: bb@bebekon.no

37

EXPLORATION & PRODUCTION

Paradigm Group’s Revolutionary Extreamer® The Revolution Series Paradigm’s range of tools are all focused on torque reduction and improving drilling efficiency in today’s demanding wells. They deliver better quality wellbores, while reducing the costs and risks associated for the operator, drilling contractor and service companies.

All the Paradigm drilling tools are manufactured to the latest API.7.1 specifications and standards; with a large fleet of BHA rental tools, hole openers, under reamers, and diamond enhanced drilling tools. Their latest technology is focused on torque reduction and innovative BHA weights transfer for improving horizontal drilling performance and extending lateral reach.

The Extreamer® Paradigm’s Extreamer® is a hydraulically activated expandable reaming tool that can be used to increase hole size while drilling ahead or after a pilot hole has been drilled. The tool can withstand high side loads often seen in highly deviated wells, however, the three blocks close when pumps are stopped to ensure clean and efficient retrieval from the wellbore.

The Extreamer® is designed to provide top quality hole opening from a robust and versatile tool design. Float equipment can be drilled out prior to activating the tool or it can drill a preexisting hole. Once activated, the cutter blocks are held open geometrically when weight on bit is applied. Due to the nature of their patented opening mechanism, the cutter blocks are not susceptible to side load closure in highly deviated or horizontal applications.

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•

Blades will retract on retrieval.

When circulation pressure is reduced and the Extreamer® is pulled back (WOB is removed) the internal return spring pushes the blocks into the tool body.

•

Blocks held open using hydraulics and/ or set down weight.

•

The tool assembly is integral within the body of the tool and all hard metal components are retained via an API service connection rated above the end connections.

Can support assembly weight without collapsing blocks.

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PDC cutting structure, series of nozzles to cool and clean the cutter blocks.

•

Integral assembly locked by service connection.

Paradigm Drilling Services (PDS) based in Inverurie, Aberdeenshire is part of Paradigm Group B.V. which is headquartered in GrootAmmers, the Netherlands. In their eleventh year, Paradigm Group have established four stand-alone companies, all with the remit to develop and commercialize innovative upstream oil and gas technology products and services. With a broad width of market participation, the four companies include: Paradigm Drilling Services Paradigm Flow Services Paradigm Intervention Technologies Paradigm Technology Services Each of the operating companies is a standalone unit with unique technologies supported by strong intellectual property positions. The group is known for its pioneering technology and services in the drilling, well intervention and flow remediation sectors. Even in this particularly challenging business climate, an aggressive R&D effort continues. This includes multiple joint development partnerships with major oil and gas operators, an area of business innovation that has historically been requested and utilised by the major oil and gas operators.

Paradigm Cutting Blocks.

Paradigm Drilling Services team manufacturing cutting blocks.

Julian Manning, Paradigm Group’s CEO explains; “We are privileged that, even during these challenging times, our customers recognize the value our technologies offer in reducing the overall cost of operations.

Across the group we remain laser focused on developing and implementing new technologies and ways of working that have an immediate impact and payback for the customer in terms of cost saving and carbon impact. Our drilling business, along with our other companies have emerging technologies that are on the pathway to full commercialisation in the near future to supplement their existing offering.

The clear change in public sentiment towards the environment is accelerating the value proposition and interest in our technologies when considering smart, right first-time, automated operations; all enabling a lower carbon way of working.”

The global group has bases in NL, Houston, UK, China and last year (2019) expanded their teams in the Middle East and Mexico to cope with increasing demand for their innovative drilling equipment. Local technical professionals in the Middle East, a presence in KSA and in Mexico were sourced and joined the organization to support with the increase in demand.

Kevin Langan, Managing Director, PDS explains, “Due to our significant gains in market share and increased tool usage in these regions we are pleased to demonstrate our commitment and confidence in these markets by not only aligning closely with local partners and operating companies in the requisite country but also ensuring we prioritize support via recruitment of national technical experts in their field and partnering with organisations that facilitate local, in-country support to optimize operational efficiency.”

He continues, “These new additions have helped us to manage the massive increase in our fleet of downhole tools which supply our major

Extreamer® tools.

clients in these regions. As a result, interest in the new tools has increased over the past twelve months and have meant we are able to constantly deliver the superior service quality we are known for whilst ensuring we provide application specific technology that meets and exceeds the clients requirements.”

Paradigm had plans to provide services and support to over 250 wells in Mexico this year and despite the global situation with COVID-19 and the global oil market impact, operations are continuing, and planned market activity remains scheduled to increase.

PDS are diligently steadfast in their support in country and confident they have the resources available for the increase in drilling activity.

Digital Revolution Last year the company launched an online store to offer their range of drilling tools and services.

The online shopping experience has been pioneered by the company to make it easier

for their clients to not only order products and support their projects but also as a digital tool to request information and support.

Langan, elaborates, “The web shop has brought a new customer facing dynamic to our offering, we know our client’s needs and we know this helps them to be more efficient.

We are continuously looking at ways to assist and discuss with our clients to further improve overall project economics.”

Case Study: Extreamer® Latin America Overview: A Latin American customer required to under-ream a 5 7/8” hole with 65.29° of inclination to 6 ½” to subsequently run a formation test and conduct a log in tertiary formation.

Result in summary: Paradigm’s Extreamer® 563 successfully completed 764m of hole enlargement at over 65° of inclination, from 5-7/8” to 6-1/2”, in an exploratory well in a single run.

Challenge: The higher inclination observed in the section to be enlarged results in additional operational force on the cutter blocks, this can cause the arms not to open completely or collapse during operation. The operator required the service to be completed in a single run, in gauge, to ensure success in the subsequent formation testing operation.

Solution: Paradigm`s Extreamer® 563, Premium PDC cutter under-reamer.

Result Using the Paradigm Extreamer® 563, the 764 m of 5 7/8” hole was successfully underreamed to 6 ½”. The operation required 77.3 hours of drilling and 99.3 circulating hours.

Post-operational analysis of the run and the 3rd party electrical caliper log confirmed that the under-reamer met all objectives successfully. Post run inspection confirmed the Paradigm Extreamer® with Premium PDC cutters remained fully functional, and the cutters dull graded just 1/32” under-gauge on the secondary cutters.

For more information about Paradigm’s Extreamer® or their Revolution Series of tools, please contact info@paradigm.eu •

39

EXPLORATION & PRODUCTION

Rystad: Oil Demand in 2020 Could Lose Another 2.5 Million BPD As the number of confirmed new Covid-19 cases surges to new global highs of beyond 200,000 per day, a second wave of the pandemic is increasingly apparent in several countries – most notably in the United States. Modelling the effect of a wider ‘second wave’ scenario, Rystad Energy finds that global oil demand in 2020 could be knocked down to 86.5 million bpd, compared to our current base-case estimate of 89 million bpd.

I

n the second wave scenario, we don’t expect the oil demand impact to be as strong as was seen in the first outbreak, as restrictive measures will be limited to particular regions and sectors.

We would expect these “smart lockdowns” to lower the negative demand impact, so as not to repeat the absolute low of 73.7 million bpd in April. The maximum negative demand impact in April 2020 was -26 million bpd, and the peak month in the second wave could come close to this at -18 million bpd, compared to the levels projected prior to the pandemic. We will be revisiting and updating these assumptions as data becomes available.

North America (notably the lower US states), the Middle East and Southeast Asia will be hit relatively harder, Rystad Energy’s modelling shows.

The rise of Covid-19 cases in the US is of particular concern for the oil market given the country’s high oil consumption under normal circumstances, as this second wave could paralyze road fuel demand. In China, the authorities’ response to the recent case resurgence in Beijing shows that re-imposing radical lockdown measures is still a viable option.

“Covid-19 will also re-emerge in other regions in our ‘second wave’ scenario when the flu season starts in the northern hemisphere in September and October. In general, however, new waves of lockdowns in regions such as Europe, South America and Russia are expected to be more targeted and less strict as health systems will be better prepared than they were in April,” says Rystad Energy’s senior oil market analyst Artyom Tchen.

The demand for total oil products would not be shared equally. Similar to the current status quo, jet fuel and gasoline would be dealt the most painful blows. But with more testing and smarter lockdowns, a lot of this destruction can be avoided – international borders and travel can gradually reopen, with travel restrictions on certain countries and regions being imposed as new Covid hotspots appear.

More work from home (perhaps as much as 15% of the workforce in developed countries) and less leisure travel will still pinch gasoline demand. But as the economic risks mount, we believe there will be creative solutions for the healthy and not-at-risk parts of the population to return to work and keep the economy going.

The second wave scenario assumes a prolonged recovery in the aviation sector due to the downside risk of such a wave occurring in the second half of 2020 and a second negative demand impact spike in all regions in the period from August to October 2020.

It is in essence an expansion of a downside scenario that we previously modelled called a “mitigation scenario”.

In the base-case that we use for our projections, which we call the “effective retainment scenario”, the spread of Covid-19 is plotted under the assumption that drastic social distancing measures are initially taken, which often means strict quarantines.

This scenario suppresses the virus so that the number of cases drops to a low level.

Governments can then reopen society in a controlled manner. Any new outbreak will be again nipped in the bud with strict measures.

The difference between the two scenarios by the end of the year shows a 5 million bpd gap in December’s oil demand in the case of a second Covid-19 wave. If the second wave materializes, global oil demand will recover much more slowly in 2021, landing between 4 million and 5 million bpd lower per month than it would under our current base case, thus dragging the pandemic’s market effect further in time.

Demand is still very much in the driver’s seat in setting the oil price agenda – an unexpected dip of any magnitude will send the oil price into a tailspin, whether swift and sharp, or long and painful. At this point, OPEC+ is the single supply tool to materially tighten the market, but it faces massive storage buildups as an adversary. And if there is a second wave, that storage headache is going to greatly worsen as implied builds again rise.

40

A significant oil price boost cannot occur until the massive crude stock builds of recent months are neutralized. This means that oil prices will continue to carry considerable downside risk as long as the supply and demand dynamics are moving in opposing trajectories. •

DECONTAMINATION WATER JETTING WASTE MANAGEMENT

SPECIALIST INDUSTRIAL SERVICES T: + (0) 1467 629 933 E enquires@denholm-macnamee.com

Leading the way in specialist industrial cleaning solutions WWW.DENHOLM-MACNAMEE.COM

Working to exacting standards, even in the most challenging and hostile environments, Denholm MacNamee are able to answer to the needs of the oil and gas, petrochemical and utilities industries, both offshore and onshore, in any region in the world.

Committed to continuous innovation and improvement within all our operations, we have become a trusted, critical supplier and a leader in our field by applying extensive experience and knowledge to the development of bespoke solutions to answer the ever-changing requirements of demanding environments.

24 36 30 22 30

FPSOS PLATFORMS DRILLING RIGS

HP / UHP WATER JETTING ABRASIVE WATER JET CUTTING TANK / VESSEL CLEANING NORM DECONTAMINATION TUBE BUNDLE CLEANING CHEMICAL DECON / CLEANING FUEL, OIL AND WATER RECOVERY SUBSEA JETTING CCTV INSPECTION SURFACE PREPARATION EQUIPMENT SALE / RENTAL CHEMICAL DISINFECTION FOGGING

REFINERIES AND OIL TERMINALS YEARS OF GLOBAL SERVICE DELIVERY

EXPLORATION & PRODUCTION

Exploration Cable With UL/CSA Approval The SAB 755 Exploration is a highly flexible control and supply cable for the use with extreme climatic conditions among others in Topside-Drilling-Loops of oil, gas and geothermal rigs. Furthermore, the cable can be applied in wet areas of machine tools as well as for assembly and production lines. The new TPE sheath material guarantees a high flexibility and a wide temperature range from -50°C up to +90°C. Moreover it is resistant against mud, UV radiation and ozone. The small outer diameter and the space-saving construction combined with a high robustness make this cable construction a perfect solution for many outdoor applications. This new cable type is also available as various hybrid types with communication and power cores.

Cables for high mechanical Stress

Special solutions for special applications The production possibilities of SAB range from basic types and standard dimensions to special cables according to the individual requirements of our customers. New productions are already possible for small quantities, which are especially interesting for small and pilot productions.

S 755 - Exploration robust and highly flexible control and power supply cable

C

BRÖCKSKES · D-VIERSEN · S 755-Exploration 7x1,5mm²

Marking for S 755 - Exploration 07550715: S BRÖCKSKES · D-VIERSEN · S 755-Exploration 7x1,5mm² cxus AWM Style 21233 80°C 1000V AWM I/II A/B 80°C 1000V FT1 FT2 0755-0715 C

Cable manufacturer.

Application: Halogen-free, screened connection and control cable applied for drilling equipment, compressors or pumps in especially rough and wet environments of machine tools and production lines.

Construction: Conductor:

Technical data:

bare copper strands acc. to IEC 60228, VDE 0295, class 5

Nominal voltage:

Uo/U 0,6/1 kV

Insulation:

S

Voltage UL/cUL:

1000 V

Colour code:

coloured acc. to HD 308 (VDE 0293-308), from 5 cores black cores with consecutive numbers acc. to EN 50334 + VDE 0293-334 and a green-yellow earth wire

Testing voltage:

core/core 4000 V core/screen 4000 V

Current-carrying capacity:

acc. to VDE 0298-4

Min. bending radius fixed laying: flexible application:

16 x d 15 x d

Temperature range fixed laying: flexible application*:

DIN VDE -50/+90 °C -45/+90 °C

Cold resistance:

-50°C acc. to DIN EN 60811-506

Screen:

tinned copper braiding

Supporting screen:

high-tech yarn

Sheath material:

PUR, TMPU acc. to EN 50363-10-2 + VDE 0207-363-10-2

Sheath colour:

black (RAL 9005)

Outstanding features: ●

UL/cUL recognized

●

extremely large temperature range

●

small outer diameter

●

small cable weight

●

application in Topside Drilling-Loop

Hybrid cable on request! item no.

07550715 07551215 07551515 07551815 07552515 07550525 07550725 07551225 07550340 07550440 07550540 07550360 07550460 07550560 07550361 07550461 07550561 07550362 07550462

no. of cores x cross section n x mm2 7 x 1,50 12 x 1,50 15 x 1,50 18 x 1,50 25 x 1,50 5 x 2,50 7 x 2,50 12 x 2,50 3 x 4,00 4 x 4,00 5 x 4,00 3 x 6,00 4 x 6,00 5 x 6,00 3 x 10,0 4 x 10,0 5 x 10,0 3 x 16,0 4 x 16,0

largest single wire ø mm 0,26 0,26 0,26 0,26 0,26 0,26 0,26 0,26 0,31 0,31 0,31 0,31 0,31 0,31 0,41 0,41 0,41 0,41 0,41

outer-ø ± 5% mm 11,3 13,2 15,2 15,9 19,0 11,0 13,0 15,8 11,1 12,2 13,3 13,2 14,3 15,7 16,0 16,6 19,1 19,5 21,2

SAB Bröckskes is a worldwide leading manufacturer of cables and wires, cable harnessing and temperature measuring technique. More than 70 years of experience in cable manufacturing as well as in temperature measuring technique have made out of a one man business a company with almost 500 staff members.

copper figure kg/km 149,0 232,5 313,0 356,9 472,0 179,5 228,9 396,5 136,5 207,6 245,6 221,2 278,3 374,3 374,6 471,9 569,7 551,0 706,6

UL/cUL: up to +80°C

Halogen-free:

acc. to IEC 60754-1 + VDE 0482-754-1

Fire performance:

flame retardant and self-extinguishing acc. to IEC 60332-1-2 + VDE 0482-332-1-2, cUL FT1 FT2

Oil resistance:

very good - TMPU acc. to EN 50363-10-2 + VDE 0207-363-10-2

MUD resistance:

very good - acc. to IEC 60092-360, IEC 61892-4, NEK TS 606

Tensile strength:

max. 20 N/mm²

Sunlight resistance:

acc. to HD 605 S1

Ozone resistance:

acc. to DIN EN 50396

Salt water resistance:

acc. to UL 1309

Absence of harmful substances:

acc. to RoHS directive of the European Union see chapter N „Technical Data“

G 25

*protected installation in tubes *with slow, occasional movements

cable weight ≈ kg/km 208 288 387 436 575 221 295 452 203 271 321 305 387 471 480 561 714 694 859

item no.

07550562 07550363 07550463 07550563 07550364 07550464 07550564 07550365 07550465 07550565 07550164 07550165 07550166 07550167 07550168 07550169 07550170 07550171 07550172

no. of cores x cross section n x mm2 5 x 16,0 3 x 25,0 4 x 25,0 5 x 25,0 3 x 35,0 4 x 35,0 5 x 35,0 3 x 50,0 4 x 50,0 5 x 50,0 1 x 35,0 1 x 50,0 1 x 70,0 1 x 95,0 1 x 120,0 1 x 150,0 1 x 185,0 1 x 240,0 1 x 300,0

largest single wire ø mm 0,41 0,41 0,41 0,41 0,41 0,41 0,41 0,41 0,41 0,41 0,41 0,41 0,41 0,51 0,51 0,51 0,51 0,51 0,51

outer-ø ± 5% mm 23,4 22,9 25,0 27,6 26,3 28,8 31,3 29,3 32,2 35,5 15,5 17,3 19,8 23,1 24,6 27,0 29,0 34,3 37,5

copper figure kg/km 863,0 813,8 1056,6 1300,3 1106,4 1455,1 1797,8 1551,3 2037,3 2531,9 421,8 577,9 784,0 1051,5 1318,2 1611,0 1952,1 2493,2 3077,6

cable weight ≈ kg/km 1061 1016 1275 1569 1426 1764 2160 1934 2443 3007 467 646 862 1179 1420 1748 2077 2805 3445

Other dimensions and colours are possible on request.

The strength of SAB Bröckskes is not only the manufacturing of standard cables but also the construction of special items. Every year SAB manufactures more than 1500 special cables on customer´s request.

Every single product is a challenge for their technical team. SAB Bröckskes see themselves as manufacturers and service providers, in the sense of real partnership and customer oriented work.

The quality of SAB products are known in more than 40 countries of the world.

Customers have tested their products intensively and confirm that they have a longer service life than others. • If you would like to know more about the solutions discussed in this article, please contact: Sacir Adrovic adrovic@sab-broeckskes.de Tel. 02162/898146 Fax 02162/898147

www.sab-cable.com

42

www.sab-cable.com

EXPLORATION & PRODUCTION

SEAS Offshore Pty Ltd - State of the Art SEAS Offshore Pty Ltd is a leading provider of state-of-the-art sediment sampling equipment. The company is based in Coffs Harbour, Australia and services clients worldwide. Our vibrocoring equipment was originally developed in the early 1980’s by Dr Charles Phipps and has been further developed over the years to provide a lightweight, portable and extremely reliable sediment sampling solutions.

A

ll equipment can be made ready for deployment worldwide. Our team of experienced personnel provides a comprehensive suite of vibrocore, box core, piston core and other sampling services tailored to the clients’ requirements. At SEAS we understand that every sampling job is different, so we work with our clients to design each program for best effect to meet our clients’ specific requirements.

which can be difficult or prohibitive for other core system is designed for core samples vibrocoring equipment. to 24m when deployed via a purpose-built The VC700 4.4Kw system combined with LARS. This equipment has been used with variable frequency control allows the operator exceptional results for Oil & Gas industry to adjust the vibration frequency to suit the pipeline surveys and site surveys over the past sediment type. This additional capacity allows years when set up for 6m core samples. The greater penetration in sediment types that can Australian Government research organisation prove difficult to sample with other equipment. (CSIRO) has a SEAS 24m piston core system The VC700 was recently used with reliable included in the RV Investigator’s equipment Our lightweight and portable equipment enables success in sampling the dense iron sands inventory. us to sample in areas that are inaccessible to offshore northern Luzon, Philippines. The When piston core equipment is used in many other systems, such as shallow lakes, tidal project delivered over 600 core samples to six conjunction with vibrocore systems, both estuaries and near-shore coastal environments. meters in length with high recovery rates. equipment suits provide the client with The various SEAS VC models allow sediment SEAS also manufacture and operates a number reliable samples from the varied seafloor types in to be reliably sampled in environments of sediment sampling systems. The SEAS Piston sediment types.

BC500 Skandi Hercules, Barossa.

The SEAS Large Box core system provides a box sample 50cm x 50cm x 50cm (0.125m³).

The Box core samples provide large undisturbed sediment samples suitable for environmental studies, macro benthic fauna analysis and geotechnical analysis.

SEAS VC-700 on LARS, Aparri, Philippines.

Our deep water vibrocore system pushes the limits of vibrocore sampling to 3000m, well beyond the capabilities of most of our competitors. When coupled with our multicore MPS3000 platform our deep water VC2000T provides a unique opportunity to acquire samples in an efficient and cost-effective manner. The MPS3000 system can collect 10 core samples from one deployment off the vessel. This capability considerably reduces winch time required to and from the sea floor making the equipment very cost effective. The MPS3000 system can host numerous additional sensors to meet client specifications. With realtime video feedback the coring procedure can be closely monitored. The cameras fitted with pan & tilt function can be turned outward to monitor the seafloor surface environment enabling valuable benthic habitat assessment.

The MPS3000 has both low light black & white cameras in addition to a colour focus and zoom camera with additional lighting.

The MPS3000 is fitted with 6 vectored thrusters to assist in sea floor positioning and maintaining the equipment in a vertical orientation whilst the coring procedure is completed. The MPS3000 is designed to be integrated with vessel existing ROV winch and umbilical removing the costly mobilisation of additional winch equipment and occupying valuable vessel deck space.

All SEAS staff are highly skilled and will be able to help our client get the best result out of our equipment with the best information gleaned from the samples, either via onboard analysis or onshore laboratory testing. We have a qualified geologist on staff with 15+ years’ experience in the offshore oil and gas sector who is qualified to provide technical support. SEAS can provide environmental personnel and benthic infauna identification through expert staff at Western Australian and Northern Territory Museums.

Our products are routinely used in harbours, near shore and offshore for a range of tasks such as: •

Site Surveys

•

Pre-Dredge surveys

•

Anchor site survey

•

Pipeline feasibility studies

•

Environmental sampling

•

Acid sulphate soil

•

Mineral exploration

•

Marine research

•

Contaminated site surveys … and more.

For further information regarding any of SEAS equipment please contact: info@seasoffshore.com or visit our website: www.seasoffshore.com • 24m Piston Corer - ‘RV Investigator’.

45

PROCESSING

Investment Protection and a Basis for Innovative Applications For 30 years, the BASF Group has been using the I&C-CAE system ProDOK by Rösberg for the planning and operational support of its production plants. User acceptance in day-to-day work is high, but there is also a new demand for the inclusion of innovative applications. For this reason BASF decided to switch to the new system generation ProDOK NG. This involved a Europe-wide migration of the I&C data of about 300 plants with approximately 1.3 million loops at locations as far apart as Antwerp, Basel, Ludwigshafen, Schwarzheide and Tarragona. Without disturbing day-to-day operating processes, within two years the historically-grown, partly heterogeneous data formats were brought up to a unified international standard (eCl@ss Advanced) so as to enable analysis and the use of applications on both a plant-wide and a cross-locational basis.

“Spring Clean” for documentation During the switchover it was also planned to check up on the existing data. Where had unnecessary data and documents accumulated?

Where were the data inconsistent? Where were there reports, forms and documents with almost identical content but differently formulated?

Where were links that were now inaccurate or irrelevant? In a consulting process the experts from Rösberg gave BASF intensive support in answering these decisive questions. Thus not only did they deliver their I&C-CAE system ProDOK NG – they also supported the migration process throughout, from beginning to end.

Here it proved a big advantage that Rösberg’s employees are continually planning and supporting new plants and the modernization of existing plants. They understand the planning processes represented by the software and are familiar from their own experience with the typical challenges. Before transferring database contents they were first checked for data consistency and integrity by adapted ProDOK standard tools, without changing the engineering technology. Any discrepancies were then removed semi-automatically before migration. Even without migration, this would have been a useful step in itself.

Standardization and future security The migration involved all the big BASF

At the BASF location of Ludwigshafen alone, around 200 plants were migrated from ProDOK to ProDOK NG (Copyright: BASF). locations in Europe. Over the years various different data formats were used there. In some cases, several different documentation standards were even in use at the same location.

The migration was taken as an opportunity to consolidate the individual master data records throughout Europe and reduce the number of I&C device specification forms used from around 250 originally to about 60. The unified basis for these device specifications is now eCl@ss Advanced. This standard, which is cross-sectoral and compliant with ISO and

The I&C-CAE system supports the planning and documentation of large process plants.

Copyright: Rösberg).

IEC standards, is ideally suited to describe process data and is unrivaled at present – at least in Europe. Ralph Rösberg (Fig. 5), Managing Partner of Rösberg Engineering GmbH, explains: “To my knowledge ProDOK NG is the only I&C-CAE system now on the market that comprehensively supports this future-oriented standard for the process industry. Yet in our view significant parts of Industry 4.0 can only be realized if the devices used in plants can also be consistently described in a standardized way. Thus eCl@ss Advanced will be indispensable to enterprises in the medium term if they want to build and operate plants that are future-proof.”

The Europe-wide reduction of the master data together with the unified use of eCl@ss Advanced provides more clarity and facilitates location-wide and cross-location comparisons and analyses for I&C planners, plant operators and production workers.

Of course, the accesses by many different users in the individual plants at the various locations require basic regulations regarding data and information protection to be observed. For this purpose the BASF Group operates a central administration system for accesses to all its IT systems. Both the I&CCAE system ProDOK NG and the as-built documentation system LiveDOK NG are connected to this central system.

Trouble-free I&C data migration in production plants The migration in Europe was carried out gradually over two years. It was important not to let it interfere with operating processes, so to achieve this a unified migration plan and realistic time schedules were drawn up for all BASF’s production plants in Europe. After exhaustive testing of the whole migration process at selected pilot plants, it was implemented successively.

Each weekend the data of about 20 plants at a time were transferred: to do this, at the end of the week the plant operators blocked access to the databases of the old system generation ProDOK 9.5, started the automatic checking of the database contents for consistency and integrity, performed any corrections, and stored the pre-checked data contents in a standard format. These were then made available to Rösberg by remote access. Then, each Friday evening, the IT specialists loaded the data packages onto high-performance servers. There, they were automatically migrated and compared with the predefined standard format for the results, any discrepancies that occurred were analyzed and semi-automatically corrected.

Additional support by BASF personnel was not required for this. On each Monday morning the migrated databases were then installed by BASF on new central database servers. The employees in production and technical units at the BASF locations, who had been trained beforehand, were able to start working with the new system straight away. Of course, Rösberg had prepared a fallback plan in case at any point the migration did not run smoothly over the weekend – but they never had to use it.

The external costs of Rösberg for the Europewide migration project were manageable.

Expressed in terms of the individual loops in the 300 or so production plants, they worked out at approximately half a euro per loop.

The use of ProDOK ensures security of investment. For decades the software has been upwardly compatible and future-safe (Copyright: Rösberg).

The benefits for users in production and technical units The cost and effort of the migration is demonstrably worthwhile – as evidenced by the many advantages of the unified databases for the whole of Europe that were created during the migration: The new system architecture of ProDOK NG now fulfills the current requirements of BASF’s IT for a centralized server, IT installations as unified as possible and Europe-wide accesses compliant with general information protection regulations. This makes it possible to conduct analyses and integrate new applications both on both a plant-wide and a cross-locational basis. The unified datapool based on standards like eCl@ss Advanced also helps avoid “uncontrolled growth” in future, thus minimizing the necessary maintenance effort in the long term.

Thanks to the standardization of reports and

forms in ProDOK NG it is largely irrelevant which big location within Europe employees are assigned to – they will quickly find their way around the I&C plant documentation there. Thus personnel can be deployed more flexibly, and the same flexibility extends to contract partners, further simplifying the outsourcing of individual work steps. This also applies to all work with I&C documentation based on the web application LiveDOK. web, which can be used independently of the operating system on all the usual mobile devices on the market.

Asset management also benefits from this.

For the first time, information can be called up at the touch of a button about which technical components/devices are installed in which plants throughout the whole of Europe. This is advantageous, for instance, if there are faults relating to a specific device, as well as in failure analyses and the preparation of DCS migrations. As equipment suppliers are required in future to deliver device data in eCl@ss Advanced format, these device specifications can be directly integrated into the I&C-CAE system, making the as-built documentation even better.

The switch to an I&C-CAE system is definitely worthwhile

eCl@ss Advanced is an ISO- and IEC-compliant, cross-sectoral standard ideally suited to describe the technical data of devices. It is unrivaled at present, at least in Europe (Above). In future, suppliers of equipment to BASF will have to supply the data for their devices in eCl@ ss Advanced format. This will further improve the asbuilt documentation(Right).

(Copyright: Rösberg).

Companies who have not yet acquired a modern I&C-CAE system can also benefit from all these advantages. In this way they can avoid the problems that crop up in everyday work again and again without an efficient I&C planning and documentation tool. In such cases inconsistent documentation, as typically produced with the use of Office tools for planning, is a standard point of criticism with audits by customers, supervisory authorities and internal revision management. In the worst case, if safety problems occur in the plant and it needs to be demonstrated that all relevant regulations have been observed, reliable documentation can be extremely important for an enterprise. • Rösberg Engineering GmbH W: www.roesberg.com, www.LiveDOK.com E: info.ka@roesberg.com T: +49 721 95018-0

47

PROCESSING

VympelCare – Maintenance and Calibration Version 2.0 All day, every day, hundreds of thousands of analyzers around the world are measuring the dew point of water and the condensation temperature of hydrocarbons in natural gas. These values are primary indicators of the gas quality. Because gas quality is a large component in the price of the gas, measurement inaccuracies that are as small as ¹0.1 °C can result in a loss of millions of Euros for one stakeholder or another. To reduce the risk of financial loss due to inaccuracies in measurements, stakeholders seek the best solutions with the most advanced technology based on the most sound measurement principles that they can find.

O

nce a solution is in place, it must be relied upon to operate continuously and accurately. The best way to ensure that this happens is to carry out regular preventive maintenance and calibration. This may seem an obvious truth, but theory is often not reflected in the real world. Any kind of maintenance almost always means a disruption in service and, unfortunately, all too often preventive maintenance is put off or delayed. This can occur for a variety of reasons but the end result is the same, maintenance does not take place at optimal intervals. In many, if not most instances, such a delay will not have immediate observable consequences, and this only adds to the likelihood that appropriate regular preventive maintenance may not be carried out in a timely manner.

In the absence of regular maintenance, the risk of an unexpected failure increases. Should such a failure occur, it will undoubtedly result in a much greater interruption in service and cause much greater expense than would have been the case if a proper schedule of preventive maintenance had been adhered to. Regular maintenance also ensures that equipment is operating efficiently.

Over time if a regular program of inspection and repair is not followed, reductions in efficiency can result in increased operating expenses

CONG Prima 2M online automatic chilled-mirror dew point analyzer.

and significant losses due to measurement inaccuracies - as mentioned at the beginning of this article!

One way to help owners and operators to avoid unexpected failures and losses due to inefficiency is for equipment suppliers to offer services designed to help ensure that regular maintenance is carried out. The Vympel company, a leading supplier of advanced quality control instruments, offers just such a service, known as VympelCare.

Beyond regular preventive maintenance, instrumentation used in quality control measurement must be regularly calibrated and verified, to ensure that the reported measurement results are accurate. Continuous use of these devices necessitates that they be calibrated and verified on a regular basis, and this service is also provided for by VympelCare.

Hygrovision BL portable automatic/ manual chilled-mirror dew point analyzer.

As is the case with preventive maintenance, delays in calibration and verification can occur for a number of reasons. As long as the information being reported by the instrument seems to be in line with what is expected, and

the device seems to be operating normally, it is easy to understand why taking a unit off line to have this confirmed may seem like a low priority. In some cases, it may even seem unnecessary and nothing more than an added expense. The issue here, of course, is that these devices are in place to measure actual conditions, not merely to confirm what is expected.

If an instrument’s calibration is no longer within tolerance limits, what looks like a confirmation of expected results could really be a misrepresentation of conditions that are outside of acceptable limits. This can result in costly negative consequences.

As is the case with preventive maintenance, the best way to ensure the accuracy of the calibration is to adhere to a regular calibration and verification schedule.

Hygrovision mini and mini SL semi-automated manual chilled-mirror dew point analyzer.

VympelCare is designed to address both of these aspects of equipment operation: preventive maintenance and calibration / verification – tasks that should be carried out on a regularly scheduled basis even when there does not appear to be an immediate need. In the best case, these two activities would be done at the same time, minimizing the downtime of the instrument involved and ensuring the device, when calibrated, is in optimal condition. This approach ensures the least interruption in service. In fact, this is a pretty good description of VympelCare: a program that provides regular maintenance as well as the best calibration / verification of Vympel instruments.

More specifically, VympelCare is a regularly scheduled service provided by Vympel GmbH and OGE, designed to make it easy for the owners and operators of Vympel instruments to follow through on carrying out regular preventive maintenance and calibration.

Three times a year, Vympel sets aside a week to provide VympelCare at its facilities in Düsseldorf, Germany. Customers that intend to take advantage of this service simply register in advance that they wish to reserve one of the slots available for an upcoming VympelCare session.

The instruments are then sent to Vympel on the appointed date. Active promotion of VympelCare is intended to remind the owners of Vympel instruments of the importance of regular preventive maintenance and calibration, while offering an easy and economical way to carry out these tasks. By optimizing the logistics involved, a device is usually sent back to its owner in a week to ten days, ready to go back into service.

The devices covered by VympelCare are Vympel’s state-of-the art chilled-mirror hygrometers of the CONG Prima, FAS, and Hygrovision series. These instruments incorporate cutting-edge technology to measure the water dew point (WDP) and hydrocarbon condensation temperature (HCT) in natural gas.

These analyzers can all measure both the water dew point and the hydrocarbon condensation temperature. This type of instrument is an important quality control device that is used for a number of applications at many points along the natural gas delivery chain, from production

to processing and transportation.

Measurement of the water dew point is a way of directly measuring the moisture content in natural gas as well as establishing the temperature at which water will condense out of the gaseous phase to form liquid droplets in the gas stream. Moisture content is an important indicator of gas quality. Gas that is too wet can result in the formation of clathrate hydrates in the pipeline, which can obstruct the gas flow and may lead to catastrophic accidents. An accurate measurement of the water dew point is critical to ensuring the quality of the gas and protecting the pipeline and other equipment.

Similarly, measurement of the hydrocarbon condensation temperature provides information about the temperature at which hydrocarbons will begin to precipitate out of the gaseous phase, forming hydrocarbon liquids. The presence of these condensates in the gas flow can cause significant damage to equipment such as gas fired turbines. In addition, accurate measurement of the gas flow requires that it remain in a single phase (gaseous). As is the case with liquid water, hydrocarbon liquids in a natural gas pipeline can cause a number of problems, so knowing the temperature above which the gas must be maintained is essential information.

Apart from the operational imperatives, these two measurements are also important for contractual and regulatory reasons. Failure to conform to specified water dew point and hydrocarbon condensation temperature values can result in fines, fees, or other financial penalties.

VympelCare is intended to help keep these

critical analyzers online and operating with as little interruption as possible, while ensuring that they provide not only accurate information, but also the “best” information.

Upon arrival at Vympel GmbH in Germany, maintenance service is provided by Vympel technicians, helping to ensure that once they are returned to their owners, the analyzers will operate well without interruption.

VympelCare service includes comprehensive inspection of the analyzer, cleaning of the measurement chamber, updating the software if a new version has been released, making any minor adjustments to optimize performance, and preparing the analyzer for calibration.

Then these units are sent to the Open Grid Europe (OGE) lab in Essen, Germany for calibration / verification. Calibration at OGE ensures that the analyzers will provide the best information.

To explain what is meant by the term “best information” it is necessary to understand that when it comes to chilled-mirror analyzers, all calibrations are not created equally. The Open Grid Europe (OGE) lab in Essen developed a method for the harmonized calibration of automatic hydrocarbon condensation temperature analyzers with different levels of sensitivity, for the GERG Project 1.64. This method establishes 5mg/m3 of hydrocarbon condensate as the threshold for reporting the condensation temperature. In other words, the temperature at which 5mg/m3 of hydrocarbon liquids have condensed onto the chilled mirror’s surface is considered to be the hydrocarbon condensation temperature.

Measurements taken by an analyzer calibrated to this standard will be much less influenced by changes in gas composition,

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Vympel engineer using computer-based diagnostics as part of VympelCare service for a Hygrovision BL portable dew point analyzer. for example, and will be more comparable to measurements taken by other instruments.

In addition, the calibration gas used by OGE is a representative multicomponent gas essentially similar to pipeline natural gas. As a result, the calibration is made using gas that behaves essentially similar to the way pipeline gas behaves, by slowly building up a layer of condensation. It is this condensation behavior that makes it possible to establish the 5mg/m3 threshold. This is opposed to a single component calibration gas, such as propane, which is often used to calibrate this type of instrument. Propane has a very different condensation behavior that results in so much condensate forming at once that it is not possible to limit the condensation to 5mg/m3.

Because of this, it is not possible to discern the beginning of condensation.

In other words, calibrating to 5mg/m3 ensures that the analyzer is set to the level of “best” evidence for registering the start of condensation. It is worth noting that ONLY Vympel instruments are sensitive enough to actually resolve 5mg/m3. Competitor devices can only discern a film that corresponds to 40mg/m3 or more, depending on the instrument. This lack of sensitivity represents a level of uncertainty that will not ensure the required degree of measurement accuracy. For these devices, the GERG calibration requires the incorporation of a correction factor, adding to measurement uncertainty. Vympel instruments are not subject to this uncertainty!

The calibration for the water dew point

measurement channel is also not as straightforward as one might expect. Water vapor in a hydrocarbon matrix, such as natural gas, does not behave in quite the same way that it does in regular air.

In 1995, the GERG group carried out a project for developing a mathematical correlation between the water content and water dew point in natural gas in order to more accurately define the behavior of water

condensation in hydrocarbon gas mixtures.

GERG also realized that it was necessary to build a comprehensive and accurate database relating measured water content to water dew point values for a variety of representative natural gases. It was shown that there was a need to improve the existing correlation values.

As a result, a more accurate, compositiondependent correlation was developed on the basis of GERG’s database. This research is the basis for the current ISO standard 18453:2004 “Natural gas — Correlation between water content and water dew point” which also incorporates. And it is this standard that OGE uses when calibrating the water dew point channel for VympelCare units.

After calibration VympelCare analyzers are returned to the Vympel facility in Düsseldorf for a final check before being returned to their owners. The whole procedure usually is completed within seven to ten days, and the analyzer that is returned to service can be relied upon to operate well for another 12 months at least.

From the beginning VympelCare was developed in response to three basic needs: to provide timely prevent maintenance to Vympel analyzers; to provide those analyzers with the best calibration; and to make it easy and economical for owners to take advantage of these services. The ultimate goal of VympelCare is to ensure that Vympel instruments in the field provide accurate quality control information for the entire service life of the instrument. •

Dr. Markus Wolf, Head of the Gas Quality Department at OGE delivering a presentation about calibration of dew point analyzers according to the GERG* project 1.64. * Groupe Européen de Recherches Gazières (European Gas Research Group).

If you would like to know more about the solutions discussed in this article please contact: SPA Vympel +49 211 21077391 info@npovympel.ru

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PROCESSING

Process Transformation: Amazon Filters Launches Coalescer for Oil and Gas Industry Running an efficient oil and gas company post-Covid is going to require the tightest control of operational costs in a generation.

Already reeling from price levels at 30-year lows, the industry is grappling with rock-bottom demand, excess refining capacity and headaches over storage availability.

Finding ways to innovate will be key to ensuring a sustainable operating model that combines transformation with health and safety, process efficiencies, cashflow preservation, environmental issues and compliance with regulatory standards.

Filtration and separation: a critical factor One of the most critical processes in worldwide oil and gas production is filtration and separation. It’s a pivotal contributory factor to protect process equipment and guarantee the final purity and specification of output.

Implemented and managed successfully, a welldesigned purification system can help to avoid costly unscheduled downtime by solving many complex challenges.

They include the removal of liquids and solid contaminants, protection against liquidaerosol contamination and the safeguarding of machinery and equipment.

The UK filter maker Amazon Filters, one of the leading manufacturers of meltblown depth filters, has long supplied the oil and gas industries with bespoke water filtration solutions. These involve filter housings, depth and pleated cartridge filters and other essential products.

Client demand over many years has made the 35-year-old company adept at applying its expertise in fibre technology to the development of polymer fibre-based coalescing.

SupaSep LG Both liquid/liquid and liquid/gas polishing processes are heavily dependent on high quality coalescing cartridges for optimal performance, along with appropriate design and sizing of the separator vessel. Key to this is the relationship between filter design and housing configuration.

Amazon Filters has long added value here by creating solutions tailored directly to each customer’s application.

These prevent the risk of an otherwise highly efficient coalescer being rendered useless because of inappropriate, off-the-shelf or poorly designed housings. Amazon Filters is now launching the latest evolution in its liquid-gas coalescer range, SupaSep LG. Product development has been based directly on the experience of working with oil and gas operators and process package providers.

The launch follows the recent completion of a rigorous laboratory testing programme conducted in partnership with the worldrenowned Faculty of Chemical and Process Engineering at Warsaw University of Technology. Experts there are at the very forefront of meltblown fibre technology and coalescer research and design.

Among its many applications, SupaSep LG is ideal for protecting gas turbines and natural gas compressors, lube oil recovery, and protection of catalyst beds. It also supports the recovery of fluids involved in the sweetening and dehydration of natural gas.

Applying industry knowledge Neil Pizzey, Amazon Filters Managing Director said: “Our extensive knowledge in designing pressure vessels for the oil and gas sector means we are fully conversant with the appropriate regulations and approvals

allowing us to streamline the manufacturing process.

“Between us, our team has more than 100 years’ experience in coalescer design. By working in parallel with industry customers and our academic colleagues in Warsaw, we are pooling a range of market-leading insight to achieve the very best combination of performance and cost.”

SupaSep LG is underpinned by a £0.75 million investment in manufacturing capacity at Amazon Filters’ international production centre in Camberley, Surrey.

Processes there are all governed by a range of ISO-accredited Quality Management Systems.

Neil adds: “Our investment programme is all about creating and maintaining a quick and able capacity to meet customer need for innovative, bespoke and highly cost-effective solutions.

“SupaSep LG is a prime example. We can manufacture both pleated and meltblown depth configurations, selecting the most appropriate by application.

“The ability to vary filtration efficiency throughout the filter depth, as well as conferring additional properties such as oleo and hydrophobicity, further enhances our capability to develop high performance coalescers such as SupaSep LG. “Manufacturing technologies allow us to vary filtration fibre diameters, providing us with additional tools to improve coalescing performance.

The financial impact of Covid is set to mean challenging times ahead for oil and gas producers and contractors.

Every day a project implementation date is delayed, potential revenue will be lost.

We stand ready to play our part by providing the oil and gas industry with reliable products such as SupaSep LG as part of bespoke solutions that drive efficiencies and transform operational performance.”

Above: Neil Pizzey, MD, Amazon Filters. Right: SupaSep LG.

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For more information on SupaSep LG and other Amazon Filters’ solutions for the oil and gas sectors, visit www.amazonfilters.com/ coalescers or call +44 (0) 1276 670 600.

PROCESSING

Aramco completes its acquisition of a 70% stake in SABIC from the Public Investment Fund (PIF) Aramco today announced the successful completion of its share acquisition of a 70% stake in Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, for a total purchase price of SAR 259.125 billion (US$ 69.1 billion), equating to SAR 123.39 price per share.

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he completion of the transaction enhances Aramco’s presence in the global petrochemicals industry, a sector expected to record the fastest growth in oil demand in the years ahead. Combined, in 2019 Aramco and SABIC recorded petrochemicals production volume of nearly 90 million tonnes, including agri-nutrient and specialty products.

The acquisition of the SABIC stake is consistent with Aramco’s long-term Downstream strategy to grow its integrated refining and petrochemicals capacity and create value from integration across the hydrocarbon chain.

It specifically enhances Aramco’s chemicals strategy by transforming Aramco into one of the major global petrochemicals players; integrating upstream production with SABIC feedstock; expanding capabilities in procurement, supply chain, manufacturing, marketing and sales; complementing geographic presence, projects and partners; and increasing the resilience of cash flow generation with synergistic opportunities.

SABIC expects also to benefit from Aramco’s Downstream chemicals feedstock production, and ability to invest in and execute major growth projects at a very large scale.

H.E. Yasir Othman Al-Rumayyan, Governor, Public Investment Fund (PIF) said: “This is a significant milestone for three of Saudi Arabia’s most important entities. It provides capital for PIF’s long-term investment strategy as it drives the economic transformation and growth of Saudi Arabia, further benefitting the people of our country; it supports Aramco’s continued growth in Downstream and enhances

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its international footprint; and, it provides SABIC a new strategic energy industry focused shareholder with the ability to support growth projects.”

Amin Nasser, President & CEO, Aramco said: “We are excited to complete this transaction. It is a significant leap forward which accelerates Aramco’s Downstream strategy and transforms our company into one of the major global petrochemicals players.

The strategic integration of our Upstream production and Downstream chemicals feedstock production with SABIC’s chemicals platform is expected to create opportunities for selective integration synergies that support growth and add value for shareholders.”

“Despite the COVID-19 pandemic forcing many companies to rethink or revise their long term strategies, our long-term focus,

financial strength and resilience have enabled us to complete this historic deal. It marks the beginning of a new chapter in the history of both companies and is an important marker in delivering our long term Downstream strategy.”

Abdulaziz Al-Gudaimi, Senior Vice President of Downstream, Aramco said: “The completion of this transaction marks an important step in Aramco’s continuous drive to develop a global integrated Downstream business designed to add value across the hydrocarbon chain. As SABIC joins the Aramco family of companies, we expect to create synergies and add value through integration in procurement, supply chain, manufacturing, marketing and sales.”

Yousef A. Al-Benyan, Vice Chairman and CEO, SABIC said: “SABIC’s relationship with PIF and Aramco goes back to our inception in 1976. SABIC is grateful to His Excellency Yasir Al-Rumayyan for the strong and constant support we have received from both him and PIF. The global scale and presence of SABIC, one of the world’s most significant diversified chemicals companies, brings significant enhancements to Aramco.

As the chemicals growth platform, SABIC expects to benefit from the additional scale, technology, investment potential, and growth opportunities Aramco will bring in integrated energy and chemicals production. We look forward to contributing to global chemicals growth, while continuing to support Saudi Vision 2030.”

Port+, an Antwerp based digital Port solutions provider developed Qronoport as a shared, collaborative platform that endeavours to make the port call of a liquid bulk vessel more efficient by combining data from various sources (open data sources, Port+ and Nxtport data, machine learning algorithms and data directly from participating companies).

The combination of these data sources gives stakeholders of the port call process a highly accurate overview of the different activities taking place – both planned and completed – increasing the efficiency of their planning and operations.

This results in a decrease in waste in between powered by activities and hence a decrease in turnaround times for vessels through the port.

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THE ANALYSIS IS ONLY AS GOOD AS THE SAMPLE

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Contaminated or ‘off-spec’ liquid cargoes are a perennial problem for oil tankers and terminals. the company offers three ATEX and IECEx approved closed sampling systems in order to meet industry applications and requirements. All of these have the following unique features: • • •

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HEALTH SAFETY & ENVIRONMENT

ADNOC Wins Sustainability Manager of the Year 2020 for Efforts to Conserve the UAE’s Precious Water Resources Abu Dhabi Sustainability Group has recognized ADNOC’s environmental stewardship by naming Shayma Al Mazrouei, an employee at ADNOC Gas Processing, Sustainability Manager of the Year Award 2020 for her contributions to environmental conservation through an innovative water reduction program.

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he announcement was made today as part of the Abu Dhabi Sustainable Business Leadership Awards 2020. Launched in 2015, they are the region’s only independent annual awards dedicated to raising awareness about the benefits of sustainable resource management practices for the organizations based in the GCC. Ms. Al Mazrouei was recognized for her work as the Environment Department Team Leader in ADNOC Gas Processing’s Health, Safety and Environment (HSE) Division. She is responsible for ensuring compliance with relevant environmental regulations and enhancing ADNOC Gas Processing’s environmental performance.

In her work, Ms. Al Mazrouei has made a notable impact both within and outside the organization through the implementation of various sustainability programs that have encouraged positive environmental and social impact. In particular, her water reduction program not only reduced organizational costs, but also lowered stress on the UAE’s precious water resources.

Huda Al Houqani, Director of the Abu Dhabi Sustainability Group said: “I would like to congratulate Ms. Al Mazrouei for winning the Sustainability Manager of the Year category of the ADSG Sustainable Business Leadership Awards 2020 and ADNOC Gas Processingfor their continued excellence in water conservation leadership. We are very proud to showcase and recognize sustainability achievements in Abu Dhabi. As a member of the Abu Dhabi Sustainability Group, ADNOC has demonstrated thought leadership, engagement as well as collaborative work to contribute to the innovative, sustainable future of the Emirate.’’

Dr. Saif Sultan Al Nasseri, CEO of ADNOC Gas Processing, said: “Through her work at ADNOC Gas Processing, Ms. Al Mazrouei has made significant contributions, with the support of our HSE team, to reach ADNOC’s sustainable

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water management goals, including the implementation of new wastewater treatment efficiency measures as well as an expansion of ADNOC Gas Processing’s water reuse capabilities for cooling and irrigation to our on-site greenspaces.”

“A safe and sustainable water supply remains critical for Abu Dhabi’s economic, social and environmental well-being, and we are proud to follow the guidance of our Founding FatherSheikh Zayed and his vision for environmental stewardship. Our continuing focus on water conservation represents a core pillar of ADNOC’s 2030 sustainability commitments. Over the next decade, ADNOC seeks to achieve the lowest ratio of potable water use in the industry, keeping the freshwater consumption ratio below 0.5 percent across our business.”

Wastewater generated at all ADNOC Gas Processing sites is treated in wastewater treatment plants for use in cooling of equipment as well as irrigation for plants and greenery at ADNOC Gas Processing sites. The treatment plants are designed to ensure that all treated wastewater meets critical company guidelines and environmental standards. In 2019 alone, water used in landscape irrigation at ADNOC Gas Processing sites from either recycled or treated wastewater, along with other conservation measures, translated into a savings of more than 850,000 m3 of potable water.

Water conservation initiatives also deliver significant benefits for ADNOC Gas Processing’s business, as reduced water consumption limits the need for capital investment on supply and treatment sides.

Inefficient water usage similarly affects air resources by increasing the need for energy production. Significant energy is required to desalinate seawater, pump water from source to treatment facility, treat water that is used inefficiently at the tap or for irrigation and

pump wastewater generated from inefficient water use back to a treatment plant.

Expressing her gratitude for the accolade, Ms. Al Mazrouei said: “I am proud to work for an organization which consistently prioritizes environmental stewardship, HSE excellence and the growth and development of young female leaders in STEM-focused roles. The UAE’s rich heritage of resource conservation lives on today at ADNOC, and I am grateful for the opportunity to support ADNOC Gas Processing’s water efficiency measures, just one of the many successful sustainability initiatives taking place across ADNOC Group.”

Established in 1978 through a joint venture agreement between ADNOC (68%), Shell (15%), TOTAL (15%) and Partex (2%), ADNOC Gas Processing’s first plant opened in 1981.

ADNOC Gas Processing is a major supplier of gas and related products. Its plants are located in the Western Region of Abu Dhabi and Ruwais, and are connected to a 3000km pipeline network. We operate 26 processing trains, and an NGL distillation complex at Ruwais. ADNOC Gas Processing distributes gas and other products throughout the UAE and also export them from Ruwais, serving international markets, including China, Japan, Singapore, Morocco, Brazil, South Korea, India, Malaysia, Indonesia, Senegal, Jordan, Thailand, Madagascar, Australia, Pakistan, Vietnam and the United States.

ADNOC Gas Processing sits strategically at the heart of the ADNOC value chain, connecting its Upstream and Downstream businesses. It operates one of the world’s largest gas processing plants, which has a capacity of more than 8 billion standard cubic feet per day, providing critical energy to support the UAE’s power grid and enable water desalination As part of the ADNOC Group, ADNOC Gas Processing aims to build a legacy as a responsible oil and gas producer in order to maximize value for the UAE and reinforce its longstanding commitment to environmental stewardship. •

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HEALTH SAFETY & ENVIRONMENT

Plan for World-Leading Clean Hydrogen Plant in the UK Equinor is leading a project to develop one of the UK’s – and the world’s – first at-scale facilities to produce hydrogen from natural gas in combination with carbon capture and storage (CCS). The project, called Hydrogen to Humber Saltend (H2H Saltend), provides the beginnings of a decarbonised industrial cluster in the Humber region, the UK’s largest by emissions.

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2H Saltend supports the UK government’s aim to establish at least one low carbon industrial cluster by 2030 and the world’s first net zero cluster by 2040. It also paves the way for the vision set out by the Zero Carbon Humber alliance, which Equinor and its partners launched in 2019.

The project will be located at Saltend Chemicals Park near the city of Hull and its initial phase comprises a 600 megawatt auto thermal reformer (ATR) with carbon capture, the largest plant of its kind in the world, to convert natural gas to hydrogen. It will enable industrial customers in the Park to fully switch over to hydrogen, and the power plant in the Park to move to a 30% hydrogen to natural gas blend.

As a result, emissions from Saltend Chemicals Park will reduce by nearly 900,000 tonnes of CO2 per year.

In its later phases, H2H Saltend can expand to serve other industrial users in the Park and across the Humber, which employs 55,000 people in the manufacturing sector alone, contributing to the cluster reaching net zero by 2040. This will enable a large-scale hydrogen network, open to both blue hydrogen (produced from natural gas with CCS) and green hydrogen (produced from electrolysis of water using renewable power), as well as a network for transporting and storing captured CO2 emissions. It is estimated that fuel switching to hydrogen could create 43,000 new job opportunities in energy-intensive industrial sectors across the UK.

“The world continues to need more energy at lower emissions so we can achieve the ambitions of the Paris Agreement. This necessitates a substantial decarbonisation of industry, in which we believe carbon capture & storage and hydrogen can and must play a significant role. With private and public investment and supportive UK policy, the H2H Saltend project will demonstrate the potential of these technologies. Together we can make the Humber and the UK a world-leading example that others can learn from,” says Irene Rummelhoff, executive vice president for marketing, midstream and processing at Equinor. “px Group is delighted to be supporting H2H Saltend, a landmark project for UK energy transition. We are fully committed to helping industry reach net zero and both CCS and hydrogen will play a huge part in that. We’re looking forward to collaborating with all the project partners as we work towards this common goal,” says Geoff Holmes, chief

executive officer of px Group, which owns and operates the Saltend Chemicals Park.

“As the UK’s leading supplier of energy, we’re proud of the role our natural gas and offshore wind has played in reducing carbon emissions in power. Now we want to go further by bringing hydrogen to the Humber region.

With our partners, we plan to transform the UK’s largest industrial cluster into its greenest cluster,” says Al Cook, executive vice president and Equinor’s UK country manager.

H2H Saltend will be part of the Zero Carbon Humber alliance’s application for public cofunding in the second phase of the Industrial Strategy Challenge Fund, which launched on 23 June 2020. Subject to supportive UK policy, Equinor and its partners will mature the project towards a final investment decision during 2023 with potential first production by 2026.

In 2018 Equinor, Northern Gas Networks and Cadent, published the H21 North of England report showing how blue hydrogen could be produced and supplied to millions of homes and business across the north of England. Equinor is also a partner in the Net Zero Teesside development which proposes to build a new-build gas-fired power station with carbon capture, and extending the CCS infrastructure to the neighbouring industrial cluster.

In May, Equinor and its partners took a final investment decision on Northern Lights, Europe’s first commercial-scale carbon transportation & storage project off the coast of Norway. If the Norwegian government makes a positive final investment decision in 2020, the first phase is expected to be operational by 2024. •

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Protect the safety of your workforce Deliver tepid water first time, every time The effects of solar radiation experienced in the Middle East can make the provision of tepid water to emergency safety showers a challenge. Water outside of the tepid range (16-38C) can scald a casualty and injure them further. Hughes emergency tank showers are available with a choice of 3 cooling options, all retrofittable to existing units. The latest addition to the range, the Hughes Zero Power Cooler® requires no electricity or maintenance making it ideal for even the most remote locations.

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NEWS - ASIA PACIFIC

ONGC Organizes Webinar on Workplace Hygiene Management During Pandemic

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webinar on a contextual theme “Workplace Hygiene Management during Pandemic” was organized jointly by ONGC Foundation and ONGC on 2 July 2020, the second day of Swachhta Pakhwada 2020. Participated by eminent speakers on the subject, the proceedings of the webinar was webcast on reports.ongc.co.in for all ONGCians.

The renowned panel of speakers comprised ONGC Director (HR) Dr Alka Mittal, ED- Chief CSR Mr S S C Parthiban, ED-Chief ER Mr S K Wadhwani, CEO, Babasaheb Ambedkar Vaidyakiya Prathisthan (BAVP) Dr Ananth Pandhare, Director Workplace Resources, CISCO Mr. Praveen Vasudeva and Regional Manager - Food Safety and Hygiene, Taj Hotels, Karnataka region Ms. Champavai J. The session was moderated by CEO, ONGC Foundation Mr. Kiran DM. Dr. Alka Mittal, Director (HR), while addressing the Webinar panelists and participants, appreciated the inputs provided by the panelists from Healthcare, IT, Hospitality and E&P industries. She flagged ONGC practices on Swachhta and how it has assumed renewed significance to contain the spread of the virus in current times. Emphasizing the importance of infrastructure, she said, “ONGC, through Information, Education and Communication activities, has created awareness among school children about importance of personal hygiene. Observing strict personal hygiene practices will definitely play a significant role in the fight against this virus.”

Earlier, the Webinar commenced with the introduction of panelists and a brief on the topic by CEO, ONGC Foundation.

ED-Chief CSR welcomed the panelists and participants and highlighted the importance of Swachhta and ONGC contribution to Swachh Bharat Mission. Major CSR projects for Swachhta like construction of toilets (IHHLs, community toilets, school toilets), Solid Waste Management project- Green Rameswaram, Restoration of ancient stepwells at Sawai Madhopur, Rajasthan, Revival of Ancient River Saraswati, Clean Himalayas campaign and Project Bandicoot- installation of robotic manhole scavenging machine were shared with the panelists and participants. Mr. Parthoban shared, “ONGC has been investing around 180-190 crore every year for Swachhta-related projects.”

Dr. Ananth Pandhare, CEO, BAVP presented a perspective on hygiene practices and protocols in hospitals to contain spread of the coronavirus. He showcased how hospitals have adapted to a battery of new habits in the wake of the current pandemic outbreak.

Mr. Praveen Vasudeva, Director - Workplace Resources, CISCO highlighted CISCO’s HR practices to tackle the pandemic. He emphasized how client interests were taken care of without compromising employee safety. The process of prioritizing roles was undertaken and job roles were segregated into those requiring inevitable physical presence in office and those which can be managed remotely working from home.

Ms. Champavai J, Regional Manager- Food Safety and Hygiene, Taj Hotels, Karnataka region brought out the hygiene protocols observed in their hotels, both for employees and guests. The entire process from welcoming of guests to services provided to them till their exit from premises have all undergone significant changes to manage the pandemic.

ONGC ED - Chief ER Mr. S K Wadhwani shared ONGC’s efforts in tackling the situation by sanitizing office premises, installations and rigs, designing staggered working hours, maintaining social distancing at every workplace and effective crew changes at installations during these trying times. •

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2020 OTC Asia Spotlight on New Technology Awards

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eading offshore technologies recognized as industry innovators

The OTC Asia Spotlight on New Technology Awards recognize the most innovative and most advanced technologies that are leading the industry forward.

Two technologies from Schlumberger are named as 2020 OTC Spotlight on New Technology Award recipients: IriSphere look-ahead-while-drilling service The IriSphere look-ahead-while-drilling service combines deep directional measurements with advanced automated inversion to accurately detect formation features ahead of the bit while managing drilling risks, optimizing casing placement and coring location. The look-ahead capability is delivered while drilling in real time by using multifrequency transmitter and multireceiver directional subs.

Subsea Modular Injection System The Subsea Modular Injection System, from OneSubsea, a Schlumberger company, is a hydraulic intervention package that combines an injection conduit of openwater coiled tubing with a subsea injection skid or barrier package, complete with dualbarrier valves, integral fail-safe control system, and weak-link connector. •

PETRONAS Invests In Renewable Energy Start-Up

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ETRONAS through its corporate venture capital arm, PETRONAS Ventures, recently inked an agreement with SOLS Energy Sdn Bhd to invest in the solar photovoltaic (PV) system start-up that provides sustainable energy for residential and small-to-medium enterprise (SME) sectors in Malaysia.

This is PETRONAS’ second venture capital investment initiative which aims to strengthen its commitment in the renewable energy space as a solutions partner. The transaction is expected to be completed in end July this year.

SOLS Energy is an innovative one-stop solution company that designs, distributes, maintains and installs high quality solar energy system at a competitive rate. It also runs the first Solar Academy in Malaysia that offers technical skills in the solar industry and personal development training to local youth.

Head of PETRONAS Ventures Mohd Azli Ishak said: “We believe that this investment will complement PETRONAS’ New Energy business growth in the solar market, as the SOLS Energy team has the passion and determination to propel the sustainable industry.”

The initiative with SOLS Energy is in line with PETRONAS’ Sustainability Agenda and the United Nations’ Sustainable Development Goals (SDGs) 4, 7, 8 and 13 that focus on the provision of quality technical education to youths, promotion of sustainable economic growth as well as reduction in greenhouse gas emissions through generation of clean energy.

SOLS Energy’s Chief Executive Officer Raj Ridvan said the company aspires to future-proof the world through the power of technology and sustainable energy.

“Our mission is to connect people and businesses to real sustainable energy solutions. We believe solar PV system adoption is at an inflection point in Malaysia, and with the Government’s regulation on Net Energy Metering and lower equipment cost, we see a huge potential market size in Malaysia and South East Asia.”

A graduate of PETRONAS’ FutureTech Accelerator programme in 2019, SOLS Energy also counts 500 Startups, a global venture capitalist, as one of its investors.

PETRONAS Ventures actively scouts for visionary entrepreneurs in Malaysia and around the globe to solve critical problems in industrial and energy space through breakthrough technology and innovative business models to support its business growth and sustainability agenda. •

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NEWS - LATIN AMERICA PTTEP Announces New Oil Discovery Offshore Mexico

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TTEP and its joint venture partners made two successful deepwater oil discoveries in Block 29, offshore Mexico, with good quality reservoirs. Commercial potential of the new discovery will be assessed in the next phase.

Mr. Phongsthorn Thavisin, President and Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP) disclosed that PTTEP Mexico E&P Limited, S. de R.L. de C.V., a wholly-owned subsidiary of PTTEP, together with its consortium announced successful discoveries with two exploration wells in Block 29 located in the Salina Basin, offshore Mexico. The first exploration well, “Polok-1”, was drilled to a depth of 2,620 meters and encountered approximately 200 meters of net oil pay, followed by the second exploration well, “Chinwol-1”, which was drilled to a depth of 1,850 meters and encountered net oil pay approximately 150 meters. Both exploration wells show promising high potential. Together with its joint venture partners, PTTEP will be working on obtaining approval from the Mexican regulators and preparing appraisal as well as further development plans.

The Polok-1 and Chinwol-1 wells are located in water depths of 583 meters and 464 meters, respectively. The two wells are around 88 kilometers from the Mexican coastline of Tabasco. The joint venture partners of this project are comprised of PTTEP Mexico E&P Limited, S. de R.L. de C.V. with 16.67% interest, Repsol Exploración México, S.A. de C.V. (Operator) with 30% interest, PC Carigali Mexico Operations, S.A. de C.V. which is the Mexican subsidiary of PETRONAS with 28.33% interest, and Wintershall Dea with 25% interest.

PTTEP invested in the Mexico since 2018, following the company’s strategic move to expand its investment in petroleum prolific areas.

PTTEP currently holds two exploration blocks in Offshore Mexico; Block 29 and Block 12 where it has also carried out exploration activities. •

Pemex Celebrates 82 Years as a State-Owned Company

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n the 82nd anniversary of its creation as a State-owed productive company, today, Petróleos Mexicanos (Pemex) is the largest oil company in the country, source of national pride and one of the most important oil companies in the world. On the 7th of June 1938, through a Decree issued by Mexican President Lázaro Cárdenas del Río, Pemex was created. This was a historically significant decision that has become synonymous with development and progress in the country.

In spite of the difficulties that the year 2020 has wrought on Mexico because of the current pandemic that has affected the entire world, in addition to the historic drop in international oil prices, today Pemex has a solid management and a new energy policy, spearheaded by the current President of Mexico, Andrés Manuel López Obrador, who has focused government efforts on bailing out the country’s energy sector after an extended period of neoliberal governments riddled with corruption that nearly sank the company in debt.

The current management at Pemex, with the unyielding support of oil workers, is performing a series of management and operating changes to take advantage of this crisis and reemerge as a more efficient, more agile company, free from non-transparent practices and corruption.

There is a clear course towards the financial leveling-out of the company, increasing crude oil production, as well as to attain energy sovereignty through the rehabilitation of all six existing refineries and the construction of a seventh in Dos Bocas, Tabasco. The company also works closely with the armed forces to fight fuel theft, a crime that has been reduced by more than 90 per cent, going from an average of 56,000 barrels per day to 3,000 over the past few months.

Pemex wishes to recognize the work of the oil workers’ community, who, with their discipline, talent, and knowledge are working to bail out the oil company that belongs to all Mexicans. •

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NEWS - AFRICA Rystad: OPEC+ Compliance Doomed to Fall Short of Target as Costs Too High to Bear

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raq produced more than 650,000 barrels per day (bpd) above its target output level in May and is now being asked to make up for its non-compliance in future months. Rystad Energy estimates Iraq’s actual ability to cut more barrels is limited to between 300,000 and 500,000 bpd. Achieving any output target below 4 million bpd is overambitious given Iraq’s dire economic need for oil revenues right now.

Out of the 650,000 bpd, Iraq has asked international companies such as BP, ExxonMobil, and Lukoil to help out with 350,000 bpd of cuts in the Basrah region, and the state operator – Basra Oil Company (BOC) – to cut the remainder 300,000 bpd.

Iraq committed to OPEC to produce 57,000 bpd below its target production level of 3.75 million bpd in July and then go deeper and come in 258,000 bpd below in August and September against the slightly higher target production level of 3.96 million bpd. There is even talk of trying to get Kurdistan to contribute with 100,000 bpd of production cuts – an effort we believe to be futile.

Rystad Energy estimates Iraqi oil production reached 4.8 million bpd in October 2018, the month used as a reference in estimating the production cuts for the OPEC+ member nations. Iraqi oil production reached 4.6 million bpd in April 2020 and the compliance level was set at 3.7 million bpd.

Now, Iraq plans to cut 650,000 bpd from southern Federal Iraq (FI) and has directed the Kurdistan Region of Iraq (KRI) to cut about 100,000 bpd. If Kurdistan doesn’t “hand over the barrels”, Iraq will be forced to hatch a new plan and look at other fields that can fill the gap.

“Even before Covid-19 hit, Iraq and the rest of OPEC+ were cutting

production to manage the market. Then, after the group failed to renew the agreement in March it was an all-out production war. But Iraq failed to ramp up production, so when the deeper cuts started in May, most BOC fields were already at near-compliance levels, leaving little to cut,” says Rystad Energy’s senior analyst Aditya Saraswat.

There are many points of contention on oil resource management between Federal Iraq (FI) and the Kurdistan region of Iraq (KRI).

Economic strategies are not aligned and revenues flow into separate budgets, which makes it unlikely that KRI will acquiesce to the request of FI to cut 100,000 bpd. The KRI controls about 450,000 bpd of oil production and over 90% of volumes are exported through a pipeline to the Ceyhan terminal in Turkey.

FI demands a bigger share from the pipeline exports. On the other hand, KRI operates as an independent government entity with an independent fiscal regime and growth ambitions that do not fall in line with OPEC. Like most of the oil-dependent economies, KRI’s financials are struggling which has led to deferrals in oil payments to IOCs and salaries for public employees. Thus, the tightening gridlock with vulnerable oil prices poses a risk to that KRI will be able to contribute with cuts.

Lower oil demand amid Covid-19 has forced about 300,000 bpd in production cuts in Iraq, as buyers in lockdown in Asia either canceled orders or storage became limited. PetroChina had to halve production at Halfaya field down to 200,000 bpd. Petronas had to shut down 100,000 bpd of production capacity at Garraf due to quarantine measures taken to protect workers. In short, Covid lockdowns are a natural force in keeping oil in the ground and bringing Iraq closer to compliance. A swifter return to the ‘normal’ would adversely affect the country’s compliance.

A reason for Iraq’s under compliance is its very urgent need to use oil export revenues to help build up its gas production potential to meet surging demand. The need to become self-sufficient in natural gas stems from the fact that Iraq’s main gas supplier – Iran – is under all sorts of sanctions and the US is encouraging Iraq to halt Iranian imports or potentially face sanctions.

Iraq gas reserves are primarily associated gas – extracted alongside with oil. But due to limited infrastructure, Iraq flares most gas it produces.

The country was relying on the giant Akkas and Mansuriya gas field developments to feed demand, but international operators have had to declare force majeure due to worsening security conditions north of Baghdad.

Citing the above, Iraq has opposed the process to decide its quota with OPEC as it points out that it doesn’t take its fiscal situation and regional issue with KRI into consideration. To address this, Saudi Arabia and Russia have signed a memorandum of understanding to develop the Akkas and Mansuriya fields, respectively, to help ease Iraqi investment obligations.

As both time and cuts are of the essence, a mere initial gas agreement won’t help Iraq address peak gas demand for the upcoming summer season, again putting another kink in Iraq’s motivations to comply or fill up its budget.

“It will be a very tall order for Iraq to lower oil production below 4 million bpd, given the reference level of 3.7 million bpd combined with the fact that cut contributions from BOC and KRI will only be marginal.

The country would have to think of a ‘Plan B’ if they want to go for complete compliance,” adds Saraswat.

Additional measures could include forced shutdowns as well as including other state operators like North Oil Company (NOC) and Dhi Qar Oil Company (DQOC) in the cut agreements. These two operators can at least provide 100,000 bpd of additional cuts but this might not be a sustainable option as most of this production feeds regional refineries.

But the question that remains at large is – for how long? Former oil minister Thamir Ghadhban recently said in an interview to Argus Media: “With a lower price and reduced production, the petroleum cost repayments… could exceed 40% of Iraq’s total oil revenue which has to be paid to international oil companies, and which Iraq cannot afford.” •

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