Oil and Gas Winter 2021
Business Information. Industry Solutions.
STEEL AS A SUSTAINABLE SOLUTION BE PART OF THE SOLUTION: ONBOARD WASTE HANDLING SYSTEMS
AVOID DRY DOCKING DOWNSTREAM & PROCESSING FOCUS
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Clean energy requires clean sampling. CONG Prima and FAS dew point analyzers can now be installed with zero-emission sampling. Zero-emission technology is another example of Vympel’s commitment to developing and implementing environmentally friendly solutions. Thanks to zero-emission technology we can all breathe easier!
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NEWS BRIEF bp Welcomes Completion of Southern Gas Corridor Mega-Project
fter more than seven years in the making, the ambitious Southern Gas Corridor project, spanning seven nations, has commenced delivering a vital source of energy to Europe. Europe’s energy supplies have received a much-needed boost today as one of the world’s most complex energy projects begins full operations. The newly-completed Southern Gas Corridor (SGC) pipeline system is now transporting natural gas from beneath the Caspian Sea offshore Azerbaijan to European customers thousands of miles away. The mammoth engineering milestone involved seven national governments, 11 different companies and more than 30,000 people. The result is a 3,500-kilometre pipeline system that climbs over mountains, crawls under seas and stretches the entire width of Turkey – opening up a new energy supply route to the European Union. The Shah Deniz field offshore Azerbaijan is the SGC starting point and is expected to supply at plateau 16 billion cubic metres of gas to markets in the region and Europe. Gary Jones, bp’s regional president for Azerbaijan, Georgia and Turkey, said: “The start of gas deliveries to Europe from Azerbaijan is the culmination of years of work by many thousands of people from all the countries involved – the workforce, communities, companies, the government of Azerbaijan and other regional and international governments, and SOCAR and our partners. This is a truly world-class project in all respects. “We are very proud of what we have achieved together. Notwithstanding the complexity of all aspects of the project – engineering, technical, geographical and geopolitical – it has been delivered safely, on schedule
and under budget. This is an historic milestone, with Azerbaijan and Europe now connected with a direct, safe and reliable energy link, that again demonstrates that together we can deliver the most complex mega-scale projects successfully.” “The Southern Gas Corridor is an extraordinary feat of engineering that bp is proud to have been involved with from the start. By connecting Caspian resources to Europe, this technically challenging project will help to meet the energy needs of millions of customers.” Said Gordon Birrell, executive vice president of production & operations. As a former head of bp’s Azerbaijan, Georgia and Turkey (AGT) business, during a seminal phase of the SGC’s history, Gordon Birrell’s personal connections to the project run deep: “This achievement is a reminder of the incredible talent that exists in our industry and a striking example of the power of partnerships and integration. We are grateful to our teams, our partners and the national governments that helped to realize this complex project.” The Southern Gas Corridor is a giant energy project that opens up a new supply route for energy to reach Europe, all the way from the Caspian Sea. This mammoth feat of engineering resulted in a 3,500-kilometre pipeline across complex and varied terrain. The SGC consists of three pipelines – each a mega-project on its own – the expanded South Caucasus Pipeline (SCPx) through Azerbaijan and Georgia, the Trans Anatolian Pipeline (TANAP) across Turkey, and the Trans Adriatic Pipeline (TAP) via Greece and Albania to Italy. bp is proud to have played a leading role from the start, working closely with partners and governments to deliver this challenging and much-needed energy project. •
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COVER STORIES & SPECIALS Be Part of the Solution, Not the Problem
GI sits down with Delitek, a Norwegian company tasked with finding ways to help clean up our oceans and seas. Starting decades ago, Delitek is now recognized as a market leading manufacturer and supplier of complete onboard waste handling systems for the maritime and offshore industries.
Steel as a Sustainable Solution
OGI sits down with Subseatec and their Managing Director, Peter Jansson, to talk about steel as a sustainable solution in our modern world. As a major player in the manufacture and supply of large riser joints for the international oil and gas industry, it’s not lost on Subseatec that they are able to take advantage of helping the industry get to a more sustainable future.
Using Miko Blanks to Avoid Dry Docking
With the help of Norwegian innovation, the high cost of an unscheduled dry docking can sometimes be avoided. It depends on the work needed, but for ship or platform operators with a sea chest or thruster tunnel problem, the name of Oslo-based Miko Marine should be music to their ears.
WORLD INDUSTRY NEWS Europe Africa South America MENA Russia & CIS News Brief
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PROCESSING Reliable Lubrication
OGI sits down with J.-F. Walther CEO, Roesen Lubrication Systems to find out more about lubrication systems and how they work.
High-Temperature Heat Pumps
Steam is one of the most important heat sources in industrial processes. Its thermodynamic properties, (high thermal capacity, high heat of vaporization and high heat transfer coefficient) make it an ideal heat transfer medium.
CONTENTS Tackling Pipeline Contamination
OGI sits down with Paul Stockwell, Managing Director, Process Vision Ltd, to find out more about contamination in gas and the importance of reliable and accurate monitoring. Mr. Stockwell wants to help readers understand the importance of having an alarm system.
EXPLORATION & PRODUCTION The Importance of Flexibility
The Gates company, has introduced countless innovations in power transmission and fluid power that have impacted virtually every industry to the present date.
In These Trying Times, Peace of Mind Helps
Granzow A/S have for the last twenty years delivered numerous air compressors and dryer setups to the offshore industry throughout the world and have become synonymous with a high level of care and quality.
MIDSTREAM & PIPELINES Project Logistics Control Centres
Project Logistics Control Centres (PLCC’s), what are they? How do they operate? XELLZ, a company in-the-know when it comes to using digital solutions to optimise operations, has much to share on the subject including the limitations to technology and the value of the human factor.
HEALTH, SAFETY & ENVIRONMENT Make an Impact
OGI sits down with the Globus Group, based out of the United Kingdom to talk about the importance of safety in the oil and gas workplace. It’s important to note the role that the right gloves can play in ensuring not only the safety of your staff, but the efficiency and ease of their work.
Leading Energy Companies Announce Transition Principles
Leading energy companies, bp, Eni, Equinor, Galp, Occidental, Repsol, Royal Dutch Shell and Total today announced they have agreed to apply six Energy Transition Principles as they play their part in the energy transition.
EVENTS CALENDAR 8
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Be Part of the Solution, Not the Problem OGI sits down with Delitek, a Norwegian company tasked with finding ways to help clean up our oceans and seas. Starting decades ago, Delitek is now recognized as a market leading manufacturer and supplier of complete onboard waste handling systems for the maritime and offshore industries. These systems and their impact on the seas is explained in detail below. OGI: Could you start by explaining Delitek’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? Delitek: Delitek was established in 1992 after the founding owner Mr. Asbjorn Larsen heard a radio programme where the Governor of Svalbard warned about huge amounts of plastic waste that was thrown overboard merchant vessels passing the island and came floating to their coastline and beaches. He decided to do something about the problem and developed what may have been the very first marine waste compactor which today is equivalent to our best seller and medium medium-sized DT-500MC multi chamber compactor model. Back then, the Delitek concept was unique, and due to the stainless-steel design allowed it for outdoor installation on vessels. The compactor model was based on the same concept as todays model are, a robust unit with focus on easy waste logistics and ease of use. Nowadays, the range of products has been extended to include all kinds of dry waste solutions, such as compactors, balers, shredders, glass-crushers, densifiers and several different size-ranges as well as powering options (electric, hydraulic and pneumatic versions). The most recent developments include different WET waste systems – from smaller compact units to bigger and more sophisticated vacuumbased systems for the cruise segment.
Our in-house range is further expanded by professional suppliers and partners for other related waste handling products such as chute systems. Nowadays Delitek is recognized a market leading manufacturer and supplier of complete onboard waste handling systems for the maritime and offshore industries. Delitek is a family run company owned by the founder, his brother and his son.
carried far by currents. 2: Further out in the oceans, the garbage patches contain fragments of objects of unclear origin, as well as items used by cargo ships and fishing fleets: not just the bottles emptied by the ships’ crews, but also nets, ropes, buoys, crates, barrels and floats.
OGI: Could you talk about the marine and shipping industry’s role in the ocean waste problem?
Until recently the problem concerning waste at sea have commonly been divided in 80% coming from land-based sources and 20% from ships. This have been the general way of thinking until the following report with surprising result was published in 2019:
Delitek: Waste at sea can be separated into 2 main categories:
Ocean plastic waste probably comes from ships, report says (phys.org)
1: On the one hand, there are the beaches around urban centres: the plastics that are found there come from coastal areas, and include bottles, bags and packaging. But these things sink easily and are less likely to be
It is no doubt that the maritime industry has been major contributors to ocean waste problems, but we have seen a very positive trend the last years where most ship-owner act, when it comes proper waste handling. OGI: What are the various regulations regulating the pollution of garbage from ships and how effective are they? Delitek: The main international conventions applicable to the enforcement of waste at sea and garbage discharges by ships or vessels include:
Photos - Top left: DT200 series compactors. Top Right: DT-200MC. Bottom Left: Delitek factory. Bottom Right: DT-500MC compactor and DT-575SR shredder
The International Convention for the Prevention of Pollution from Ships 1973, amended by the Protocols of 1978 and 1997 (MARPOL).
The International Convention on the Prevention of marine pollution by dumping of wastes and other matter 1972, amended by the London Protocol of 1996 (London Convention).
International regulations on the control of transboundary movements of hazardous waste and their disposal (Basel Convention).
National rules that exceeds those that are specified under those mentioned above. The regulations for the prevention of pollution from ships entered into force internationally in 1988. Today, more than 150 countries are signatories to MARPOL Annex V. Vessels are obliged to deposit plastic waste at reception facilities ashore and MARPOL requires Port Only a generation ago intentional dumping of waste overboard from ships, was a routine practice, an attitude that has markedly changed since the regulations came into force. The MARPOL regulations have dramatically reduced intentional dumping of plastic and other waste from commercial shipping. Improvements in waste management in general on vessels continue through IMO campaigns and training programs. The challenge is to upgrade and improve land-based facilities to meet the demand for disposal. Denmark has set a good example by providing free disposal of plastics and other litter brought in by fishermen who have collected the waste in their nets. OGI: Given these regulations in place, what are the responsibilities of shipping and marine operators? Delitek: First and foremost, they are responsible for following rules and regulations: Ships produce a huge variety of solid and liquid waste streams, including waste oil from the engine rooms, black water, grey water, bilge water, dry waste, food and galley waste and others. All the waste needs to be processed, initially on board and later to shore. Waste handling in compliance with international and local regulations needs to be easy for the crew with clear procedures for sorting and separating the waste and user-friendly solutions for reducing its volume on board. Much education and training are undertaken on these aspects both internationally and locally, as well as part of on board training and procedures incorporated in safety management systems on ships. Smaller vessel operators are also subject to the discharge requirements of the laws. OGI: What options are available to ship operators to handle their waste? Delitek: The old method – burning waste with incinerators It should be noted that few new builds of ships are being equipped with incinerators. This is because waste accumulates quickly and on-board incineration is being increasingly regulated. Nowadays method based on the 3R philosophy - with compactors, shredders, crushers, densifiers etc Most common method is based on the 3 R philosophy: •
Reduce (volume reduction onboard).
Recycle (segregate waste onboard).
Reuse (deliver waste onshore).
New & forthcoming methods coming These will likley be methods based on Gasification and Pyrolysis. OGI: What are the advantages of storing waste onboard, as opposed to traditional waste management methods? Delitek: The goal should always be segregation of waste for possible recycling, instead of traditional burning of waste in incinerators. The latter is hardly a sustainable waste solution. OGI: Could you talk a bit about the Delitek onboard waste handling system? Delitek: Our design and production philosophy is standardization. i.e. all components are therefore standard (off-shelf) from main European manufacturers which ensures availability on a world-wide basis. No component is manufacturer (Delitek) exclusive. All main components are sourced through dedicated suppliers, but with a redundancy plan in place in case of calamity. Delitek manufactured waste compactors and belonging components & preparation of steel “hot work” is performed in-house by certified welders. All joints are either welded or screwed, rivets are not an option! As for R&D and support services Delitek continuously strives for product improvement – but there have actually not been much change since the original design. The design is made to get the job done quickly, effectively and safely without additional features that may complicate the process which have a tendency to make equipment more expensive and may even lead to costly repairs and/or spare parts deliveries afterwards. The powerful electro/ hydraulic drive, i.e. the heart of the system, is also based on reliable and proven technology that has been used in the marine and offshore industry for decades. This clearly indicates the robustness and fit-for-purpose of Delitek manufactured waste compactors We have received very much positive feedback from our customers & clients in regards to Delitek manufactured waste compactors quality, reliability, user-friendliness etc. Positive feedback have also been received in regards to the uunique concept that follows a waste compactor equipped with a wheeled “interchangeable container” and belonging advantages such as significantly improved waste handling logistics, flexibility, convenience for crew members, simple MARPOL Annex V compliance etc. This is what we are known for and important reasons behind the fact that Delitek manufactured waste compactors has been preferred among maritime & offshore professionals. Our main competitors - Uson from Sweden & Enviropak from USA – found this so hard-to-competewith that both of them launched more or less
direct copies of Delitek manufactured compactors immediately after our patent was not valid anymore. Delitek have always invented and developed new products and of course without copying others. This is something we are proud of, but it was still very frustrating when our competitors launched direct copies of Delitek manufactured compactors. However, we must focus on the positive things as it also represents a clear evidence that we have done something right. As mentioned above we have received very much positive feedback from our customers & clients, but I cannot find any examples from our customers & clients in writing. However, the fact that we already have sold many hundred systems to both the shipping and offshore industry, without receiving any major claims regarding their quality, suitability and functionality for that purpose, should speak for itself. No news is still considered as good news in the maritime & offshore industries. Our reference list is nothing else than very impressive and should from our point of view speak for itself. I have re-attached it hereto for your kind review. Please also note that all Delitek manufactured waste compactors have been audited and certified by reputable class societies (DNVGL) as well as parties that facilitate / endorse and ensure quality of suppliers to the Offshore Oil & Gas Industry (Achilles). However, although already covered by the a.m. DNVGL type approval and / or Achilles certificate we decided in addition to apply for a DNVGL Verification Report for Delitek manufactured waste compactors that certifies their suitability for use in the maritime & offshore industries. OGI: Thank you for your time. • If you would like to know more about how Delitek AS can help your company and its operations, please contact them at: T: +47 76 18 57 60 E: email@example.com W: www.delitek.no
Steel as a Sustainable Solution OGI sits down with Subseatec and their Managing Director, Peter Jansson, to talk about steel as a sustainable solution in our modern world. As a major player in the manufacture and supply of large riser joints for the international oil and gas industry, it’s not lost on Subseatec that they are able to take advantage of helping the industry get to a more sustainable future. Subseatec is a specialist within steel products, which are of course 100% recyclable. Mr Jansson helps our readers understand more about the possibilities, such as fossil free energy production at sea.
OGI: Modern steels are a sustainable solution? Can you explain this? Subseatec: The development towards a sustainable future put high demands on material development and the need for energy-efficient solutions will increase. Steel, in its many variations, is no exception. The big advantage with steel compared to other materials is that steel is 100% recyclable and that the infrastructure of steel recycling has been in place for decades and continues to develop. “Steel is an extremely important ingredient in modern society, and it comes in so many different forms. We simply cannot do without steel and to complete our sustainability journey it is very important that we continue developing steel technologies,” says Peter Jansson, Managing Director and head of material and method development at Subseatec. Subseatec, with its origin in the steel industry in Eastern Värmland (Swedish province), has been an important part of Swedish industry and has created both local and international jobs along with global export. The company started as a
Peter Jansson, Managing Director and head of material and method development at Subseatec. local hammer forge and without losing its Värmland roots the company has evolved into today’s leading player in the manufacturing of large riser joints for the global oil and gas industry. So far, our product and technology development has largely been driven by the world’s demand for oil and gas, but the same knowledge and technology can also be used
for more sustainable purposes like fossil free energy production at sea. Just 20 years ago, this ability did not exist at sea, e.g. Wind and Wave power. Offshore mining is another possibility, accessing metals and minerals required for the green transition to fossil free energy production. “I am optimistic and believe that people’s curiosity is a great driving force for development. This will lead to many great solutions to today’s challenges and Subseatec is ready to take a leading role as a supplier of high-quality steel products for sustainable projects both at sea and on land,” Jansson continues. In Subseatec, our sustainability initiatives are based on the triple bottom line perspective – a framework that examines the company’s social, environmental, and economic impact. This means taking responsibility for both the planet and its people through sustainable and long-term business models. “Striving for a more sustainable future, economic sustainability and social responsibility must go hand in hand with our work for the environment and the climate. To roll over and die is not a solution to the problem”, Jansson states.
Forging of an 18m long stress joint in grade F22.
Subseatec stress joints.
OGI: What are the difficulties companies can face in deep-water operations, and are there any remedies in terms of field development? Subseatec: The seabed is remote in deep water developments and errors can yield large consequences. The industry has developed an extensive inspection procedure to minimize the risk for errors. In many cases this mean that you must control, log, and report all process steps that are involved in the manufacturing in a much more extensive way than the average business practice. OGI: Working with the oil and gas industry comes with unique challenges, often in high pressure and corrosive environments, how important is it to have a reliable partner for steel? Subseatec: When seeking a reliable partner, we always look for the following attributes: •
Quality / safety
Code of Conduct
Finally, it’s worth mentioning that steel is an important part of many oil and gas structures and especially with high pressure environment a reliable partner is critical to give confidence that the steel is delivered with required properties to meet in service requirements. OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? Subseatec: A few years ago, one of the oil majors came to us having a problem with a stress joint design that didn’t meet the required fatigue life.
Subseatec riser joints.
One of the possible solutions to increase the fatigue life was to remove corrosion allowance from the design. We then developed, together with one of our partners, a welding machine for full length ID overlay cladding with CRA that allowed our client to revise the design and meet the criteria for fatigue life. Eighteen months later we delivered six (6) 60ft long stress joints with fully CRA cladded ID in high strength steel that enable our client to complete their field development project. Besides having solved this issue for our client
we are today capable to make full length ID overlay welding of long Specialty joints on ID’s as small as 5”. OGI: Thank you for your time. • If you would like to know more about how Subseatec can help your company and its operations, please contact them at: Subseatec S AB T: +46 (0)70-668 29 21 E: firstname.lastname@example.org W: www.subseatec.se
Using Miko Blanks to Avoid Dry Docking With the help of Norwegian innovation, the high cost of an unscheduled dry docking can sometimes be avoided. It depends on the work needed, but for ship or platform operators with a sea chest or thruster tunnel problem, the name of Oslo-based Miko Marine should be music to their ears.
Cato Stoll, MD, Miko Marine
iko has achieved prominence in this important sector due to its understanding and adaptation of magnet technology. Founded in 1996, when it launched its first magnetic patches, the company has evolved an entire magnetic product range that also includes lifting tools for ROVs (Remotely Operated Vehicles), mooring points, and tool fasteners which all exploit the power and versatility of permanent magnets. Miko employs a team of highly qualified and creative designers and engineers who are continually developing new tools and products to meet the specific needs of customers in the offshore and marine industries. They understand what magnets can and cannot do, how they will perform in a marine environment and how to handle them safely. It’s a hard-won specialism that is now paying dividends for Miko and its customers and for whom the design and manufacture of hull closures has become an important service. Miko’s managing director, Cato Stoll, explained the thinking behind the demand for its hull closures. “Sealing any hull opening for internal repair or maintenance work has always been a technical challenge that invariably involves divers and underwater welding,” he said. “This work is expensive, slow and it can also be dangerous. This is why we are finding increasing
numbers of operators ready to take advantage of what we know about hull closures, the use of magnets and their deployment by ROVs. When they realise that, unless a repair can be made while afloat, the only alternative is to shoulder the expense of dry-docking. If this involves taking a vessel such as an FPSO (Floating Production Storage and Offloading vessel) off-station, there will be a major financial hit. By supplying hull closures that are easy and economical to use repeatedly and are, above all, safe and DNV qualified, we are able to solve some major headaches.” It is this thinking that encouraged Japanese-owned rig and platform builder MODEC to commission Miko to supply four cofferdams and water inlet covers for its latest FPSO, currently under construction in China. On completion it will be operated by Equinor on Brazil’s Bacalhau field where it will be equipped to deal with any emergency relating to its hull openings. Miko’s hull closures and cofferdams are all custom-built and use the most appropriate technology for the vessel. The Bacalhau project Top Right: Miko cofferdam for Njord Bravo. Above: A hull closure with magnetic clamping is tested in dry dock.
A hull closure ready for deployment by ROV on the Njord B. will feature Miko’s unique use of high-power permanent magnets to position and hold the closure in place. Depending on its size, four to ten powerful Miko MAM permanent magnets are used to hold the cofferdam in place. With each magnet being capable of holding up to 2000 kg it is possible to achieve an immediate watertight seal for the closures without the need for any other fastening devices being fitted to the hull. Flotation material is integrated within the blanking plates and this makes them neutrally buoyant and easily handled and installed under water by ROV. Each magnet is attached to its closure by a flexible joint which enables the cover to be placed by the ROV and adjusted to achieve optimum seal. When the repair work is finished the magnets are simply freed by having the ROV rotate their release levers. Enabling the blank to be quickly retrieved by crane and stored on board. The new sea chest inlet covers are scheduled for delivery in March 2021 when they will form part of the new FPSO’s equipment inventory remaining available for use throughout its working life. A different approach was chosen for the Njord Bravo FSO (Floating Storage and Off-loading), refurbishment in Norway during 2019. For this project the curvature of the hull was precisely measured by laser scanner and covers were made for each of the four sea chests. For added safety two cofferdams were also manufactured to cover each pair of hull seals. On this occasion Equinor, which is both the owner and operator, agreed with Miko that magnetic fastenings should not be used for the Njord Bravo but chose instead hull closures that could be quickly attached by ROV to a specially
designed interface fixed permanently to the hull.
engineering and salvage problems where they are not used or needed,” said Cato Stoll.
The covers and the cofferdams were all made from aluminium incorporating neutral buoyancy foam. This enables them to be easily deployed by ROV which benefits from an ingenious system of spring latches that enable it to lock the covers and cofferdams quickly into place against the interface and tighten the seal. Each component was subjected to detailed pressure and stress testing with the customer present to guarantee the integrity of the covers and their latches.
“The Nowegian Coastal Administration frequently invites us to solve specific technical or salvage problems but recently so much of our work has centred on the development of hull closures. Clients have a growing awareness of the time and cost benefits available when using magnetic fastening and we are continuing to expand our technical expertise to meet this demand.” •
“Although Miko expertise is closely associated with magnets, we are used to solving other
Miko Marine AS E: email@example.com T: +47 46 90 50 00 W: www.mikomarine.com
Magnetic Patches Answer Hull Closure Emergency When Miko Marine introduced magnetic patches (named Plasters) in 1996 they provided an immediate solution to hull damage. Flexible and neutrally buoyant, a Miko Plaster, reinforced with additional high-power magnets, can quickly close a hole in a ship’s hull. They are now in regular use with more than 3000 sold world-wide. They have also been used to close sea chests and thruster tunnels in an emergency such as that experienced by the cruise ship Nordlys in 2011. Following an engine room explosion, the damaged ship was tied alongside Ålesund quay, Norway, with a leak and a dangerous 21.7 degree list. Salvage teams needed to seal all of the ship’s thruster tunnels to eliminate them as potential sources of the leak. Four Miko plasters were quickly delivered to the ship with a Miko supervisor who advised divers on how to use them to close the sea chests. Additional Miko high power magnets were also applied to the patches and these guaranteed their adhesion during the subsequent sea transit for repair in dry dock. Cut away image shows double safety of magnetic fastening for cofferdam over sea chest cover.
NEWS - EUROPE Repsol Advances in Digitalization and Development of Talent With Training on Data
epsol has signed an agreement with the digital business school ISDI to launch a training program that will allow its employees to explore and dig deeper into the potential of the use of data and artificial intelligence in the businesses and corporate areas of the company. With this agreement, Repsol continues to move forward in the transformation of the company, with digitalization and development of talent as two key aspects on the way. New information technologies and the digital sphere play a crucial role in the 2021-2025 Strategic Plan, thanks to artificial intelligence, automation of operations, and cloud solutions. The new Strategic Plan envisions a positive impact of the company’s digitalization projects of more than €800 million a year by as early as 2022. Additionally, the Digitalization Program, initiated in 2018 as a key element of the energy transition of Repsol, has now entered more mature phases, with more than 240 digital initiatives underway and over 1,200 professionals involved directly. Therefore, the company has signed an agreement with the digital business school ISDI to continue promoting new training programs that will help the businesses and the areas that need to dig deeper into the advanced analysis of data to offer value to its clients with custommade multi-energy offerings, to improve processes, or to become more efficient. The agreement with ISDI was signed today at the Repsol Campus in Madrid, with the participation of Repsol’s Executive Managing Director of People and Organization, Arturo González, the company’s Executive Managing Director of Technology Development, Resources, and Sustainability, Luís Cabra, the Chairman of ISDI, Javier Rodríguez Zapatero, and the Managing Director of ISDI, Rodrigo Miranda. In the words of Arturo González, with this agreement “we commit ourselves to the most important part of our organization, our people, making the necessary resources available to acquire new analytical competences associated with digitalization and new technologies. Repsol’s Executive Managing Director for People and Organization also mentioned the company’s new roadmap for 2025: “We are facing the current challenges while we promote new ways of working and fulfill the objectives for talent and digitalization in our 2021-2025 Strategic Plan.” Luis Cabra, for his part, highlighted “the importance and competitive advantages for the different businesses of the use of artificial intelligence in all of its processes. Without a doubt, this is reflected in the transformation of our way of operating.” The Executive Managing Director for Technology Development, Resources, and Sustainability at Repsol has assured that, with this training agreement, “we consolidate our commitment to become a data driven organization where analysis of data will allow us to make better decisions and create value and efficiency in all our processes. At the same time, it will give us the opportunity to enhance our professional competences.” “The companies of the future need to develop new models for their businesses and for the interaction with their clients, suppliers, collaborators, and employees, based on processes and new ways of working. Within this framework, the data and the information generated are crucial to increase the efficiency and competitivity in their markets and as the basis for new models of AI and ML. The key factors here are the re-skilling and the up-skilling of the teams and the talent that constitute the nervous system of leading companies like Repsol,” added Rodrigo Miranda. This agreement is part of the Repsol Data School, a custom-made training program for all employees with the objective of becoming a data-driven company and, at the same time, marking a shift in the corporate culture and the ways of working. The program develops the analytical skills and improves the decision-making process, both for the employees who are new to data and for those that are already acquainted with it and want to take their understanding of data science a step further.
The learning programs designed together with ISDI, called #Data4Business and #Data4Digital, will begin in 2021. Around 800 employees from all over the world will participate in between 80 and 100 hours of training. They will get the chance to familiarize themselves with the different areas of this field (Big Data, Artificial Intelligence, IoT, data visualization, data governance) and gain further knowledge of the practical applications and develop a project or a business case, in order to optimize their daily work. A few months ago, the Repsol Data School also launched #Data4Everyone. This series of short courses introduce the employees to the practical applications of these new analytical skills. They are available on the digital learning platform of the company. •
Equinor Awarding Northern Lights Contracts
quinor awards two key contracts worth NOK 1.3 billion in connection with the Northern Lights project.
Kværner AS has received a letter of award for the engineering, procurement and construction (EPC) contract for the onshore plant facilities at Energiparken in Øygarden. The onshore plant will receive and store liquid CO2 before it is exported through a pump and pipeline system for injection offshore. The value of the contract is estimated at around NOK 1.05 billion. The start-up of the work is planned in January 2021, and completion is planned by Q1 2024. Kværner AS is a fully owned subsidiary of Aker Solutions. Aker Solutions AS has been awarded an EPC contract for delivering a subsea injection system for the CO2 well in the North Sea. The contract is awarded as a call-off under the framework agreement signed with Equinor in 2017. The value of the contract is around NOK 250 million. The work will start in January 2021 with installation and completion in 2023. The contract also includes options for equipment for future wells. Northern Lights will be the first of its kind – an open and available infrastructure enabling transport of CO2 from industrial capture sites to a terminal in Øygarden for intermediate storage before being transported by pipeline for permanent storage in a reservoir 2600 meters under the seabed. “These contracts are key to the success of the Northern Lights project. We look forward to working together with Aker Solutions and Kværner to deliver on our part of the solution to reduce industrial emissions,” says project director for Northern Lights Sverre Overå. The pre-fabrication for the onshore facilities will be done at Aker Solutions’ yard at Stord before site installation. The scope includes facilities at jetty for import of CO2 from ships, storage tanks for intermediate storage of CO2 and process systems. “Equinor aims to become a net-zero energy company by 2050. This requires that we together with our suppliers develop new value chains and projects such as offshore wind, hydrogen and carbon capture and storage. These projects will enable the supply industry to build new competencies and will create important activity and spin-offs going forward,” says Peggy Krantz-Underland, Equinor’s chief procurement officer. The Northern Lights project is the transport and storage part of Longship, the Norwegian Government’s full-scale carbon capture and storage project. Equinor is developing the project together with Shell and Total as equal partners. The procurement process for the onshore plant facilities is being performed in accordance with the Public Procurement Act (“Lov om Offentlige Anskaffelser”) and the Public Procurement Regulations (“Forskrift om offentlige anskaffelser”). In line with the requirements all the bidders in the competition were yesterday informed of the award decision and there is a standstill period that expires on 5 January 2021 when the onshore plant facilities contract will be signed. •
EUROPE - NEWS Shell and Equinor Combine Digital Forces to Optimise Inventory
oyal Dutch Shell and Equinor will develop the next generation of Shell Inventory Optimiser, a solution that leverages advanced analytics on historical data to optimise operational spare part inventory levels. Building on news of the recent Strategic Alliance with Shell, Microsoft will be supporting Shell and Equinor with the co-development of the tool, which runs on Microsoft Azure. The goal is for energy companies to have better control over available equipment and to optimise stock levels. Since first deployment in 2017, this proprietary solution has been deployed across Shell’s Upstream, Manufacturing and Integrated Gas assets globally, generating millions of dollars in value through optimized stock levels. In March 2020, Shell and Equinor signed a Digital Collaboration Agreement to work together on digital projects in areas of mutual benefit (and in compliance with all applicable laws and regulations, including competition and anti-trust laws). Next generation solution is the first collaboration to take-place under this agreement. Dan Jeavons, General Manager Data Science at Shell, says: “The collaboration to co-develop the next stage of Shell Inventory Optimiser with Equinor is an important milestone for both our companies; it speaks to the digital cultural and technical strengths we share, and our history of successful collaborations in the supply chain domain and the value we can achieve working in partnership. I look forward to further collaboration with Equinor in the supply-chain and decarbonization domain, with the continued support of our mutual partner Microsoft.” The co-development project will be run through a joint engineering team with digital and discipline specialists from Shell, Equinor and Microsoft all contributing. The tool integrates Microsoft Azure Machine Learning, Azure Databricks and Azure Datalake and will see the tool enhanced with new features to further optimize the algorithm, driving the recommendations and an improved user experience. Both Equinor and Shell users will benefit from these new features. For Equinor, this tool could reduce inventory inflow with as much as 13%, which could save millions. Oddvar Vermedal, VP Emerging Digital Technology for Equinor’s Digital Centre of Excellence, says: “We see many mutual benefits as both companies have applied cloud-based digital solutions as an approach to our industry’s digital transformation. Such collaborations are increasingly important to improve safety, increase value creation, reduce emissions and develop low carbon solutions by applying digital technologies. The first step with the initiative will be to safeguard our operations by rightsizing the inventory level. This will reduce the inventory inflow and establish optimised level of inventory stocks in Equinor. The next step in the co-development will focus on reducing carbon footprint in our supply chain. Therefore, this collaboration is an important step in our digital transformation journey”. Microsoft will be working with Shell and Equinor to the develop the next evolution of Shell Inventory Optimiser, running on Microsoft Azure. “We are committed to supporting the transformation of the energy sector, co-developing solutions with organizations such as Shell and Equinor that aid in the energy transition,” said Darryl Willis, vice president of Energy, Microsoft. “Digital technology is transforming key industry areas such as the supply chain and we’re continuing to provide new digital solutions that support carbon reduction ambitions and advance the transition to a net-zero emissions future.” The collaboration is the first of a series of planned co-innovation initiatives across the wider energy value chain (including themes such as maintenance, production optimisation and supply chain management) which are in development. •
Maersk Drilling’s First Low-Emission Rig Shows Very Promising Emission Reduction Levels
fter successfully being converted to a hybrid, low-emission rig, Maersk Intrepid has entered operations as the first Maersk Drilling rig to feature this set of upgrades. Maersk Intrepid is currently working for Equinor on the Martin Linge field where the ultra-harsh environment jack-up in November this year commenced its first drilling operation with the full low-emission package in use. The full technology package was expected to deliver a double-digit energy savings potential, and this has now been confirmed on Maersk Intrepid where the first month of operations on Martin Linge produced an initial data point of reducing fuel consumption and CO2 emissions by approximately 25% compared to the baseline average for the rig. In addition, NOx emissions were reduced by approximately 95%, an improvement from the original target of 90%. The installation of low-emission technology is one of several initiatives that support Maersk Drilling’s efforts to reach the company’s recently announced target of reducing its CO2 emissions intensity by 50% by 2030. Other initiatives relating to CO2 reductions include operating rigs on shore power and participation in the Project Greensand consortium which is targeting the use of discontinued oil and gas fields for permanent storage of CO2 offshore Denmark. “We’re thrilled to now see the full complement of low-emission technology in use on Maersk Intrepid, and to receive a very promising first dataset on emission reductions. It’s still too early to make any definitive conclusions on average emission reductions over time, but the preliminary results are very promising with reductions around 25% compared to the rig’s baseline, driven by both energy-saving technology and behavioural changes supported by the low-emission package. We want to do our part in the transition towards a sustainable energy future, and we’re thankful for the engagement of our customer Equinor and the NOx Fund in realising this project,” says Caroline Alting, Head of Integrity & Projects, Maersk Drilling. The hybrid, low-emission upgrades installed on Maersk Intrepid are supported by a grant from the Norwegian NOx Fund and by Equinor’s decision to introduce compensation formats to stimulate emission reductions. The upgrades combine the use of hybrid power with NOx conversion units, adding data intelligence to further reduce energy consumption and CO2 emissions. As part of the Master Frame Agreement between Maersk Drilling and Equinor, the parties have committed to exploring further initiatives to limit greenhouse gas emissions from drilling operations. The full package of hybrid, low-emissions upgrades is also being installed on the ultra-harsh environment jack-up rig Maersk Integrator which is expected to start operating in full low-emission mode in early 2021 in Norway. “Maersk Drilling shows that it is technically and financially feasible to retrofit offshore rigs with low-emission solutions. It is also important that the ambitions do not stop there, but, as in this case, that the new technology opens for further reductions towards a zero-emission future. If Norway is to meet its national emission targets, it is crucial that offshore rigs contribute with their share, and with the improvements on Maersk Intrepid, Maersk Drilling is showing the way. The NOx Fund is ready for more applications of similar character and hopes that rig operators and entrepreneurs together can develop new projects,” says Tommy Johnsen, General Manager of the NOx Fund. Maersk Intrepid is an ultra-harsh environment CJ70 jack-up rig, designed for year-round operations in the North Sea. It was delivered in 2014 and has been operating in Norway ever since. •
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EUROPE - NEWS Improving Recovery From Statfjord Øst
Repsol Adapts Its Leadership Structure in Accordance With the Strategic Plan
quinor and its licence partners have decided to invest NOK 3 billion in the North Sea Statfjord Øst field to improve recovery by 23 million barrels of oil equivalent. Written notification of material changes to the Plan for Development and Operation Statfjord Øst was submitted to the Ministry of Petroleum and Energy 16.12.2020. “The decision to improve recovery on Statfjord Øst will add considerable value to society and owners and will create positive effects for suppliers. Our ambition is to maintain safe and profitable production and secure valuable activity from the Norwegian continental shelf (NCS) for several decades,” says Kjetil Hove, Equinor’s senior vice president for Field Life eXtension (FLX). Statfjord Øst is tied back to the Statfjord C platform by pipelines. A total of four new wells will be drilled from existing subsea templates. The project also includes modifications on Statfjord C and a new pipeline for gas lift. “We will be a leading late life operator on the NCS. In order to achieve this, we must work in new ways to reduce costs, thereby offering new opportunities for investments in late life fields ensuring profitable reservoir management. The Statfjord Øst decision is a good example of this,” says Hove. This decision enables an improvement of the recovery factor on Statfjord Øst and gives an important contribution to extending the life of the Statfjord C platform and the Statfjord Øst field towards 2040. The original oil volume in place on Statfjord Øst was 415 million barrels of oil. The current recovery factor is 56 percent. As a result of this project, the expected recovery factor is increased to 62 percent. Plans call for installation of a pipeline for gas lift, modifications on Statfjord C and drilling of new wells in 2022 - 2024. Production start is scheduled for 2024. The Statfjord Øst development comprises subsea installations that include three templates. The field is located five kilometres north-east of Statfjord C. The field came on stream in 1994. The licence partners in Statfjord Øst Unit: Equinor Energy AS (31.6875%), Petoro AS (30.0000%), Vår Energi AS (20.5500%), Spirit Energy Norway AS (11.5625%), Idemitsu Petroleum Norge AS (4.8000%), Wintershall Dea Norge AS (1.4000%). After several extensions of the Statfjord field life, the current goal is to maintain safe and profitable operation until 2040. Statfjord is part of FLX, which was established to meet the strategic opportunities and challenges of late life fields in relation to Equinor’s competitiveness. FLX aims to ensure that Equinor is the leading company in safe and efficient operations with low carbon emissions from late life fields on the NCS. •
epsol has adopted a new organizational structure to roll out the Strategic Plan that was recently presented by the company.
The new organization addresses the objectives of transformation and acceleration of the energy transition, geared to the significant business and corporate challenges that the company will be facing in the coming years. According to Repsol’s Chief Executive Officer, Josu Jon Imaz, “the new leadership structure makes the company more agile in its transformation, increases its capacity to put the customer in the center of its activity, boosts digital development, and enables the ambition to be leaders in the decarbonization process.” In the new organizational structure, Luis Cabra will be Executive Managing Director of Energy Transition, Sustainability, and Technology and Adjunct to the CEO. Juan Abascal, hitherto responsible for M&A, will join the Executive Committee to lead the Industrial Transformation and Circular Economy division. Repsol will maintain its leader-ship in this area thanks to the quality of its assets and its human team, and it will play a key role in the development of advanced biofuels, renewable hydrogen, synthetic fuels, and the decarbonization of the industrial processes. The Executive Managing Director María Victoria Zingoni will be responsible for the Client and Renewables businesses, two of the main growth vectors of the company. As part of its boost of the digitalization processes and the acceleration of the global services model on a company-wide level, Valero Marín, until now CIO/CDO, will be responsible for the Digitalization and Global Services unit. The current Director for the Liquified Petroleum Gas business, Carmen Muñoz, will assume responsibility for the People and Organization area. In the Executive Managing Division of Communication, Institutional Relations, and the Chairman’s Office, the current Executive Managing Director of People and Organization, Arturo Gonzalo, will substitute Begoña Elices who will leave the company after a long and distinguished professional career. The Board of Directors, in the words of its Chairman, Antonio Brufau, has thanked Begoña Elices for her brilliant and successful tenure. Begoña Elices will continue to be a member of the Board of the Repsol Foundation. Arturo Gonzalo will also oversee the Auditing, Control, and Risks area. •
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NEWS - EUROPE Aker Solutions Wins Hook-Up and Commissioning Assistance Contract for Johan Sverdrup
ker Solutions has signed a contract to deliver hook-up and commissioning assistance of the P2 processing platform at Equinor’s Johan Sverdrup field offshore Norway. Onshore preparation work starts immediately. Offshore hook-up work will start in 2022 after the platform has been installed offshore and will commence until production start in the fourth quarter of 2022. The contract has an estimated value of about NOK 500 million. The Johan Sverdrup field with a total of five offshore platforms is one of the world’s largest oil and gas developments in recent years. Aker Solutions has been involved in all project development stages of Johan Sverdrup Phase 1, including hook-up and commissioning assistance to prepare production start of the first phase in 2019. “The productivity in the hook-up and commissioning work we delivered to Equinor in Phase 1 was high. We will build on this performance and implement even further improvements for the new contract for Phase 2, in close cooperation with Equinor’s team. We are glad that our focus on enhancing performance enables us to offer competitive execution models for new contracts,” said Linda L. Aase, executive vice president, electrification, maintenance and modifications at Aker Solutions. The new platform for Phase 2 will be the second processing platform at the Johan Sverdrup field. The scope includes hook-up and commissioning of the systems at the new topside, as well as assistance in making it ready for production start. Work also includes connecting the platform to other systems at the previously installed platforms at the field. The contract will be executed by Aker Solutions’ team for offshore work based in Stavanger, Norway, together with specialists from other parts of the company. The contract will be booked as order intake in the fourth quarter of 2020 in the Electrification, Maintenance and Modifications segment. •
Aker Solutions Wins Bid for Ormen Lange Onshore Scope
ker Solutions has been awarded a letter of intent from Norske Shell for the Ormen Lange Phase 3 (OLP3) onshore project. The scope is to integrate the wet gas subsea compression system with the Nyhamna onshore gas plant in Norway. Subsea compression will enable increased recovery from the Shelloperated Ormen Lange field. Aker Solutions’ scope includes a 500-metric-ton module which will be fabricated at the company’s yard in Egersund, Norway. The contract will have a value of approximately NOK 600 million. The delivery will include both engineering, procurement, construction and installation (EPCI). The awarded contract is a continuation of the front-end engineering and design (FEED) delivered by Aker Solutions. The contract is called off under an established long-term frame agreement for Nyhamna brownfield modifications. Aker Solutions has been present at Nyhamna since start of the development in 2004 and the award is a testimony to the relationship between Aker Solutions and Norske Shell. The Nyhamna plant outside Molde in Mid-Norway receives gas via underwater pipelines from several offshore gas fields, including Ormen Lange. Nyhamna is operated by Gassco, with Shell as the technical service provider. “Aker Solutions has a global business with supporting customers in maintenance and modifications of offshore installations and onshore industrial facilities. For the new scope, we will combine our expertise on what is best practice for safe and cost-effective project execution with our extensive knowledge of the plant at Nyhamna,” said Linda Litlekalsøy Aase, executive vice president, electrification, maintenance and modifications at Aker Solutions. Pre-execution work will start during first half of 2021. Pending final investment decision for the OLP3 project and confirmation from Norske Shell later in 2021, the work will progress into the execution phase. The engineering, procurement and project management will mostly be executed from Aker Solutions’ offices in Stavanger and Kristiansund, Norway. The module will be delivered from the company’s Egersund yard. The contract also involves civil construction and construction of new facilities at the site, which will be managed by a dedicated site team from Aker Solutions with support from partners. The work is expected to be completed in 2024. The contract will be booked as order intake in the fourth quarter of 2020 in the Electrification, Maintenance and Modifications segment. •
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NEWS - ASIA PACIFIC BP and Reliance Announce First Gas From Asia’s Deepest Project
PetroChina wins three “Golden Bauhinia” Awards
eliance Industries Limited (RIL) and bp today announced the start of production from the R Cluster, ultra-deep-water gas field in block KG D6 off the east coast of India. RIL and bp are developing three deepwater gas projects in block KG D6 – R Cluster, Satellites Cluster and MJ – which together are expected to meet ~15% of India’s gas demand by 2023. These projects will utilise the existing hub infrastructure in KG D6 block. RIL is the operator of KG D6 with a 66.67% participating interest and bp holds a 33.33% participating interest. R Cluster is the first of the three projects to come onstream. The field is located about 60 kilometers from the existing KG D6 Control & Riser Platform (CRP) off the Kakinada coast and comprises a subsea production system tied back to CRP via a subsea pipeline. Located at a water depth of greater than 2000 meters, it is the deepest offshore gas field in Asia. The field is expected to reach plateau gas production of about 12.9 million standard cubic meters per day (mmscmd) in 2021.
he winners of the 10th China Securities “Golden Bauhinia” Awards were unveiled on December 3. PetroChina Company Limited won the special award for “Outstanding Listed Company at the 30th Anniversary of the Capital Market”. Duan Liangwei, Executive Director and President of PetroChina, was named “Best Listed Company CEO”. Chai Shouping, Chief Financial Officer and Secretary to the Board of Directors, was awarded “Best Listed Company CFO”. The China Securities “Golden Bauhinia” Awards are hosted by Hong Kong Takung Wenhui Media Group. Awards of all categories are determined by online voting, approval of organizing committee, and panel review. It is widely recognized in the industry as the largest, highest-level and most credible awarding event for listed companies and their executives in both Hong Kong and China’s mainland. •
“This start-up is another example of the possibility of our partnership with Reliance, bringing the best of both companies to help meet India’s rapidly expanding energy needs. Growing India’s own production of cleaner-burning gas to meet a significant portion of its energy demand, these three new KG D6 projects will support the country’s drive to shape and improve its future energy mix.” Bernard Looney, group chief executive. Mukesh Ambani, chairman and managing director of Reliance Industries Limited added: “We are proud of our partnership with bp that combines our expertise in commissioning gas projects expeditiously, under some of the most challenging geographical and weather conditions. This is a significant milestone in India’s energy landscape, for a cleaner and greener gas-based economy. Through our deep-water infrastructure in the Krishna Godavari basin we expect to produce gas and meet the growing clean energy requirements of the nation.” bp chief executive Bernard Looney said: “This start-up is another example of the possibility of our partnership with Reliance, bringing the best of both companies to help meet India’s rapidly expanding energy needs. Growing India’s own production of cleaner-burning gas to meet a significant portion of its energy demand, these three new KG D6 projects will support the country’s drive to shape and improve its future energy mix.” The next project, the Satellites Cluster, is expected to come onstream in 2021 followed by the MJ project in 2022. Peak gas production from the three fields is expected to be around 30 mmscmd (1 bcf/d) by 2023 which is expected to be about 25% of India’s domestic production and will help reduce the country’s dependence on imported gas. •
PetroChina won “Enterprise for Best Practices in Achieving Sustainable Development Goals in 2020” by United Nations Global Compact
he “2020 China Business Summit on Achieving SDGs” hosted by the Global Compact Network China was held on December 10 in Beijing. Thanks to its outstanding performance and contribution in helping to reduce poverty among vulnerable groups and promote women’s rights and interests, PetroChina Company Limited was awarded the “Enterprise for Best Practices in Achieving Sustainable Development Goals in 2020 (Eradicating Poverty and Promoting Prosperity)” by the United Nations Global Compact. Launched at the United Nations headquarters in 2000, the United Nations Global Compact is the world’s largest and highest-level international initiative for corporate social responsibility and sustainable development with nearly 10,000 corporate members from more than 160 countries. It is committed to promoting responsible business behaviors for shared value, and helping achieve the 2030 Sustainable Development Goals. •
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Reliable Lubrication OGI sits down with J.-F. Walther CEO, Roesen Lubrication Systems to find out more about lubrication systems. Trusted by major players in the industry, ROESEN-Bremen has been producing lubrication pumps for over 50 years, we find out more below.
OGI: Could you start by explaining ROESEN GmbH’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? J.-F. Walther: The ROESEN Lubrication systems company was founded 1951 by Mr. Roesen himself in Bremen, West Germany. He improved the previous designs of lubrication systems to make them more reliable. ROESEN - Bremen products were selected as the best and most flexible Pump-To-Point lubrication systems. They were delivered as standard equipment for ship large engines from MAN and large piston gas compressors from BORSIG for the oil and gas industry. After the founder passed away the company was temporarily put on hold over the 90’s but found a new CEO with at least the same passion for ROESEN mechanical lubrication systems.
J.-F. Walther CEO, Roesen Lubrication Systems.
The business was restarted with great success. Since 2014 we have specialized in the overhaul of all kinds of lubrication systems. Our experienced workshop can repair a lubricator box within the customers downtime of 7 working days. This includes a 24h reliability run under load and a measurement protocol according to DIN EN 10204-3.1. Our highly sustainable EZ-lubricators are still in service 24/7, for over 50 years! Customers worldwide can now order spare parts or a spare lubricator box produced with the best materials and to the highest standards. We have experience in engineering and configuring new or retrofit lubricator systems to customers requirements. Our own products or spare parts from other lubricator systems are manufactured, assembled and pre-tested with modern and precise machines in accordance with a documented quality system.
OGI: What is the importance of a reliable partner for lubrication systems? J.-F. Walther: Good communication to avoid misunderstandings and mistakes. Trust in each others expertise. Respect for each others internal operations. OGI: Can you talk about the work you do concerning oil lubrication pumps and lubricators? J.-F. Walther: Coordination; technical documentation; customer relations; design configurations and elaborating offers; quality control and assurance; testing; measurements; assigned measurement protocols. OGI: What different sectors do you operate in? J.-F. Walther: Oil and gas, marine systems. OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? J.-F. Walther: A customer needed a retrofit “One-fits-all” designed lubricator system with respect to space constrictions on three different large compressors. That design also included exchangeability of the lubricator system and all related components and non-corroding materials for outdoor use. These lubricator boxes are directly attached to a Roesen customized 30 litre reservoir including heating and low-level / no-flow alarm with special fittings, electrical connections and signals according to customers standards. OGI: Thank you for your time. • If you would like to know more about Roesen-Bremen, please refer to the contact details on the right.
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High-Temperature Heat Pumps Make Efficiency in Process Heating Come True Industrial Energy Turnaround Leaves No More Room for Inefficient Processes
Steam is one of the most important heat sources in industrial processes. Its thermodynamic properties, (high thermal capacity, high heat of vaporization and high heat transfer coefficient) make it an ideal heat transfer medium. Whether it is used for heat supply, power generation in thermal power plants, as a propellant, for cleaning or a moistening agent, steam powers, in the fullest sense of the word, many industrial processes. Water is available almost everywhere and at low cost. And of course, water steam is not flammable and is not toxic. Steam-based technologies are very mature and have already been used for decades and in some cases even for more than 100 years.
evertheless, this technology is highly topical, especially during times when climate change, the energy transition and questions of energy efficiency are being discussed. The long-established German company, Spilling Technologies from Hamburg, became famous for the construction of the steam piston engine, whose operating principle still forms the basis of its many innovations today. Piston steam compressors as high temperature heat pump (HTHP) Most steam applications require steam with high pressures and high temperatures. By using high-pressure steam, for example, desired high reaction times and substance conversions in chemical processes or high drying rates can be realized. Excess low-pressure steam often results as a by-product of other production processes. For example, during product cooling or drying, in exothermal reactions (where heat is released) and in the combustion of residual material. Since it is often difficult to use low-pressure steam energetically, it is usually re-cooled and liquified using air-cooled condensers or cooling towers. The heat contained in the steam is emitted into the atmosphere and thus lost to the process. At this point piston steam compressors as high temperature heat pump (HTHP), as developed by Spilling Technologies, come into play. At a
relatively low cost, unusable low-pressure steam can be recycled by vapor compression. Low-pressure steam is directed into a piston compressor and compressed to the desired pressure level. In this way, it is possible to generate up to 15 times higher process steam power, compared to the electrical energy required for the compressor drive. The
so-called COP (coefficient of performance) describes this correlation exactly (see figure 1 below). In contrast, generating steam of the same quality with conventional combustion requires considerable higher energy input. That is why steam recycling with piston steam compressors, compared to conventional steam generation, can achieve cost savings of up to 50 per cent or more in practice. Lower costs and lower CO2 emissions The example shown in figure 2 illustrates these achievable savings. In the example, the pressure of the excess steam (its steam flow rate is six tons per hour) is raised by a factor of 2 (from 4.5 to 9.0 bar(abs)). This is done by the piston steam compressor, which consumes in 6,000 full load hours approximately 2,340 megawatt hours of electricity annually. If one were to generate this amount of 9 bar(abs) steam by burning natural gas in a gas fired boiler, one would need 25,200 megawatt hours of natural gas. This would be approximately eleven times as much compared to the electrical power demand.
Figure 1: COP of piston steam compressors as function of the compression ratio.
Accordingly, a COP of factor 11 results from this. This high COP value is a key figure for the high efficiency of the process, with relating: •
High energy savings.
High operation cost savings.
And high CO2 emission savings.
Calculation Basis: Gas demand for conventional steam generation: 700 kWh/ton; electrical power demand for steam compression: 65 kWh/ ton; natural gas costs: 0.03 Euro/kWh; electricity costs: 0.1 Euro/kWh; maintenance costs steam compressor: 30,000 Euro/year; CO2-emission natural gas: 0.2 kg/kWh, CO2-emission electricity: 0.48 kg/kWh; 6,000 full load operating hours per year.
Wide field of applications for high temperature heat pumps Possibilities for the recycling of excess steam can be found in a wide range of industries: in the chemicals, petrochemicals, paper, food and beverage, pharmaceuticals and textiles industries. Here, steam recycling with high temperature heat pumps can make an important contribution to increasing the energy efficiency of the processes. In the case that piston steam compressors shall be used, the following conditions should be met to be effective: •
The low-pressure steam should have at least 1 bar(abs).
The necessary discharge pressure should not be higher than 40 bar(abs), partly up to 65 bar(abs).
The excess steam should be available on a relatively continuous basis - for at least a few hours in one piece. Meanwhile its flow rate can fluctuate, the piston steam compressors have a wide regulation range of 30 to 100 per cent.
Piston steam compressors: The technology behind high pressure steam recycling Basically, the lower the required pressure ratio, the more economically attractive steam recycling is. The pressure ratio is also crucial for how many stages the steam compressor should have. Generally, with a pressure ratio of about 2 to 3, a single-staged design is sufficient. Higher pressure ratios require a multi-staged compressor (please compare figure 1). In high pressure steam recycling, the use of reciprocating compressors has proven itself.
Figure 2: Example of steam recycling with high temperature heat pump (HTHP). These are characterized by the following characteristics: •
Very good efficiencies, also in partial load mode.
Capability of processing steam flow rates of about 1 to 20 tons hourly.
Wide regulation range between 30 and 100 per cent steam flow rate by variable speed drive.
Good controllability, also with quickly changing loads.
High total compression ratios are possible.
High discharge pressures possible – up to 65 bar(abs).
Building block for the energy transition In the case that regenerative electricity (electricity from renewable energy sources) is used for operating the steam compressor, high-pressure steam can even be generated completely CO2-free. In this way, the steam compressor as HTHP is an enabler of sector coupling and thus contributes significantly to the energy transition. Sector coupling is the term used when regenerative electricity is used to reduce the use of fossil fuels in other sectors, and this is precisely what occurs with industrial process steam recycling. The experts at Spilling Technologies develop with their customers individual solutions that are carefully tailored to the process in question so that maximum CO2 reduction and energy savings can be achieved. In order to counter climate change, the governments of many countries have provided extensive support measures for “green energies” and energy efficiency. Here, too, the experts are on hand to provide their customers with advice and support. • About the author: Christof Fleischmann Sales Engineer Spilling Technologies GmbH Hamburg, Germany Web: www.spilling.de Mail: email@example.com Phone: +49-40-789 175-0
Figure 3: Piston steam compressors are high-efficient and extremely variable HTHP.
Hi Vent Air Release Valv e s De s i g n e d F o r T h e O n / O f f s h o re P e t r o c h e mi c a l I n d u s t r y
Air vent - Air release - Vacuum Relief valves
Introduction GA Valves Sales Limited has established itself in the supply of Engineered solutions in a wide range of exotic materials. We meet the diverse demands of the oil industry with the venting or admission of air into or out of pipelines and vertical risers, both wet and dry. We have supplied valves to a wide range of customers and countries throughout the world. Many of which revert back to GA after the valves reach their specified ‘life cycle’ for a new unit to be supplied, these life cycles are determined by the oil companies and can vary widely. All consumable spare parts are stocked on site for despatch around the world.
Documentation The critical nature of fire-fighting systems in the oil industry demands high quality of both material and traceability of components used. Every order is supplied with a document handbook available as electronic and/or hard copy if required. The document includes an arrangement drawing detailing all parts, operation and maintenance Manual, spares recommendation and pressure test certificate. Additional documents are available on request to be added as an extra, this includes but not limited to: material certification, radiography results, ferrite determination, micro examination, G4S/G48A corrosion test, charpy test, integral test block, dye penetrant, pickle & passivation, all to international standards. Due to the diversity of required material specification documentation, these units are custom made for each client, offering an extremely flexible and adaptable supply chain. Specifications for the following materials are available: Aluminium bronze, super duplex, titanium, lnconel, gunmetal and various grades of stainless steel.
GA Valves Sales Ltd Johnstone House, Birds Royd Lane, Brighouse, HD6 1LQ Tel: 01484 711983 Fax 01484 719848 Email: firstname.lastname@example.org Web: www.gavalves.co.uk
Hi Vent Air Release Valve s De s i g n e d F o r T h e O n / O f f s h o r e Petrochemical Industry
Air vent - Air release - Vacuum Relief valves
References Many of our clients require that the details of supply are confidential so we are limited in the specific information we can release, end users include:British Petroleum, Exxon Mobil, Shell, Woodside Petroleum, Nexan Petroleum, Conoco Phillips, Total, Wartsila Oil and Gas.
Available configurations We offer an extensive range of configurations including custom request to suite your deign needs. We can offer the following: - All international or custom flange drilling’s - Threaded or flanged connection on inlet of the valve - Threaded or flanged connection on the outlet of the valve - Cowled outlet - Surge arresters - Inflow/outflow checks - Adjustable Throttled outlet - to control surge created by converging columns
Coatings Where required we can offer a wide range of both decorative and protective coatings with relevant certification, please ensure this is specified at time of enquiry.
GA Valves Sales Ltd Johnstone House, Birds Royd Lane, Brighouse, HD6 1LQ Tel: 01484 711983 Fax 01484 719848 Email: email@example.com Web: www.gavalves.co.uk
Tackling Pipeline Contamination OGI sits down with Paul Stockwell, Managing Director, Process Vision Ltd, to find out more about contamination in gas and the importance of reliable and accurate monitoring. Mr. Stockwell wants to help readers understand the importance of having an alarm system to notify users before it’s too late and the contamination is in the system, which can cause a potentially dangerous and costly event. OGI: Could you start by explaining Process Vision’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? Stockwell: Most of my career has been spent with instrumentation for oil and gas companies. Mainly with dewpoint, H2S measurement and gas chromatography systems. I started International Moisture Analysers (IMA) in 1995. A lot of our equipment is installed at custody transfer points for gas networks. One of the networks highlighted that, despite all the gas analysers, liquid carry-over did not trigger an alarm. After some research, we demerged Process Vision in 2016 to concentrate on solving this problem. It’s been a fascinating journey; the joy and the pain is that nobody else is doing what we do. We discovered that the real world is very different from CFD modelling and high-pressure test loops. We are still learning something new every time we install a contamination detection system. OGI: Could you talk a bit about natural gas monitoring and why it’s so important? Stockwell: It’s down to both safety and cost. We believe it is better to have an alarm system to prevent contamination from entering the
network, rather than cope with a contamination event. This is for good safety reasons, the agreements between the gas network and the gas supplier stipulates maximum values of various parameters such as water vapour and H2S. It also requires that no liquids are supplied to a gas network. While gas quality is monitored to ensure it complies with the entry requirements, very often the first time the network knows of a contamination event is when a gas turbine power station is damaged, or a compressor explodes due to liquids. There was a pipeline rupture in New Mexico a few years ago due to liquid carry-over causing internal corrosion at a low spot in the network. Liquid pools at a low spot in the network and accumulate to a point until it is sufficient to cause a slugged flow that moves rapidly and over-runs filter systems ahead of compressors and other plant and can be very dangerous to be around. If that wasn’t bad enough, contamination within the pipeline breaches the electrically insulating joints between underground and overground pipework sections. This causes failures of the cathodic protection systems that reduce corrosion on underground pipework. Besides safety, flow metering errors caused
Paul Stockwell, Managing Director, Process Vision Ltd
by tiny amounts of contamination (2-3mm) in a pipeline cause flow meters to over-read that, on an average size system would be about $0.5M a year. In every other walk of life the polluter pays for the cleanup but, with pipeline contamination, it’s down to the gas network. Nobody knows which of the gas suppliers had the failure or is continuously allowing liquids through. OGI: What are the different methods available for monitoring gas? Stockwell: Many different techniques are used depending upon which parameter is being monitored. Gas chromatography and spectroscopy are widely used to determine many of the parameters. Dewpoint meters for both water vapour and hydrocarbon (HC) are also common. However, these all sampled from the pipeline with the analyser some distance away. All metering guidelines recommend sampling from the middle of the pipeline to avoid contamination travelling on the pipe wall. So, in the case of HC Dewpoint, the measured value (or the calculated from the gas chromatograph) is based only on the gas phase element of the pipeline. If heavy HC liquids are traveling along the bottom of the pipeline, these are not included in the calculation. There are particle analysis system that can be installed for a survey or temporarily but, again they sample from the pipeline and only look at the liquid entrained in the gas flow. By looking directly into the pipeline, we can capture the complete pipeline activity. OGI: What are the benefits for engineers by being able to make better and more informed decisions?
LineVu Unit: Image Processing Reports Contamination Events.
Stockwell: LineVu can be used to diagnose what the high (or low) flow limits are on a separator. This will vary depending on the
amount of fouling and temperature, so finding the maximum flow rate possible before the liquid breakthrough can make a big difference to productivity. As an engineer, it is always better to make evidence-based decisions. Particularly with safety issues or when the repercussions of that decision result in high financial losses. Being a camera-based system, engineers can have a live video feed of what’s happening in the highpressure pipeline or process. This leads to a better understanding of real-world conditions, particularly useful at start-up, shutdown or flow ramping conditions. Providing operators with this insight allows them to makes sense of the numbers that they see on the DCS or SCADA system. In many systems, it is the separator that limits the throughput of a gas treatment system. The visual feedback from a live video stream can allow operators to establish the maximum flow availability before liquids start to breakthrough. OGI: What is LineVu and its applications? Stockwell: LineVu is a camera system usually mounted on top of a gas pipeline on a standard tapping point. The camera and illumination system look through an isolation valve to the pipeline below. In theory, most of the time, there is just gas moving through the pipe, so we use image processing to create an alarm when contamination is seen. The system records all activity for later playback for investigations. Local operators can get into the system to see a live or historical video and a SIM card allows authorised users to connect via a mobile phone or tablet. Operators are alerted by a relay operation, and they can be alerted via text or email when the alarm activates. One of the big surprises for us was just how
slow some of the contamination moves, so we use a lot of time-lapse videos to show movement. OGI: There are exciting new prospects in monitoring on the horizon, such as technology that would enable the user to inspect inside the pipe, from the outside, are you able to discuss more about that? Stockwell: We have spent the last two years developing a small diameter snake robot that can enter a pipeline or vessel while at high pressure. This is a big step in technology and will allow us to have a more detailed
inspection without shutting the system down. As it is always tethered to the outside world, it has a material extraction system that allows removal of a sample or to remove fouling. We have just completed the proof of concept and have a working system. We are now beginning to engage with industry to find applications. The first one we are looking at is the possibility of cleaning tube and shell heat exchangers (HE) without the need for shutdown. Fouling in HEs is such a big problem, it is estimated to be around 0.28% of GNP. If we can keep these systems online while maintaining their efficiency at a high level, we hope to make a significant impact not to just to oil & gas but to all industries that use Tube & shell HEs. OGI: Finally, could you enlighten our readers of a case study where you helped a client with your solutions? Stockwell: We are working with a number of gas networks in Europe, the Middle East and North America, and we always respect client confidentiality. Videos of contamination events from systems deployed at entry points to gas transmission systems on our website. We have produced an excel spreadsheet that mimics a flow meters systems and calculates the impact of a small amount of solid material deposited on the walls of a flow station has. Once you start looking into the flow assurance errors, its amazing what effect the contamination we have seen in the real world has on uncertainty on flowmeters used for fiscal purposes. OGI: Thank you for your time. • If you would like to know more about how Process Vision Ltd can help your company and its operations, please contact them at: Process Vision Ltd T: +44 (0)1256 883 304 E: firstname.lastname@example.org
A patented secondary containment system ensures no loss of containment, even under fault conditions.
W: www. processvision.com
EXPLORATION & PRODUCTION
The Importance of Flexibility In 1911, Charles C. Gates acquired a tire and rubber company in Denver, Colorado and a few years later the Gates company invented the V-belt, which revolutionized industry and power transmission applications, but this was only the start of things to come from the Gates company, which went on to introduce countless other innovations in power transmission and fluid power that have impacted virtually every industry to the present date.
ver a century later, the Gates Corporation still has the Denver facility, as the Global Headquarters, but the previously small familyowned business has grown into a global leader in power transmission and fluid power products, services and solutions, with more than 15,000 employees and over 100 locations in 30 countries, so a lot has changed over the last hundred years within Gates, but one thing hasn’t: the company remain dedicated to moving the world forward. Gates oil and gas division generates $80m per annum with sales and operations based out of three regional bases in the US (North America), Dubai (MENA) and UK (rest of the world). GESUK is Gates Corporations only hose manufacturing facility and sells hose both externally and intercompany, with all external sales consisting of finished products (i.e. hose and coupling attached). The product range consists of 3 grades of American Petroleum Industry (API) approved hose, with orders customised for every customer, which is supported by a Hose Management service for customers. We speak with Nick Drew, Regional Sales Manager ,Europe & Asia of Gates Engineering & Services UK Ltd to learn more. OGI: Could you start by explaining Gates Engineering’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? Drew: In 2017 the Gates Corporation acquired the former Techflow Flexibles modern manufacturing facility covering over 189,000 sq. ft, which is located in North East of England (Cramlington, Northumberland) UK, including the commercial activities of the planet, to continue the focused product development and manufacture of premium High Pressure Flexible Hoses that are essential for exploration and hydrocarbon production delivery to the oil and gas industry on a Global basis. The Gates Corporation is one of the highest regarded global leaders in providing both power transmission and fluid power products, so the acquisition of the Cramlington plant allowed the cooperation to offer a full range of specialist hoses that cover all forms of drilling applications and will help accelerate Gates market share for API accredited hose assemblies. This allows Gates fluid power product portfolio to be the
fully established industry ‘Go To’ supplier with products in operation on installations throughout the world. The Gates fluid power product division pride ourselves on being experts in manufacturing specialist flexible hose assemblies for a wide variety of applications in the oil and gas industry. Gates aim is to provide the oil and gas industry with a complete solution for flexible hose requirements, and we can assist with all elements of drilling and project activities, from the feasibility stage, through to design, engineering and manufacture, as well as offering ‘after care services’ from the Hose Management Division that can assist with the installation, training and aftercare inspection, testing, repair and recertification of API accredited hose assemblies and low pressure transfer systems. All of our high-performance hose products are certified to all relevant API standards for high pressure rubber hoses and flexible pipes - API 7K, API 16C and API 17K. The compounds used in the manufacturing process are produced in house using top quality raw materials and sophisticated process controls. All materials, compound ingredients and reinforcements are specified to meet the challenging requirements of high-tech applications within the industry for drilling and production operations. Our hose designs assure long service life and outstanding operational and environmental safety for the client, so whatever the
requirement may be, the Gates Corporation can provide a completely bespoke service from the Northumberland facility in the UK. OGI: What are the different applications for your hoses? Drew: Gates strong market position in the oil and gas industry, has made the company a recognised leader in the ‘operational field’ for high-pressure drilling hoses and being the first choice for many major drilling contractors and oil majors worldwide, our comprehensive portfolio covers all drilling applications whether it’s an offshore or onshore application in the most extreme conditions. Gates offer the industry Rotary Mud, Cementing and Leg Jetting hoses, which meet the highest levels of the latest API 7K specification and our Choke and Kill, Well Testing / Acidizing hoses plus the Fire-rated BOP control hoses exceeding the requirements of the demanding API 16C specification. We have extensive product ranges of Chemical and Dock loading hoses for ship-to-shore applications, fully complying with recognised international standards and our Chemical hoses are suitable for approximately 98% of existing chemicals and are designed to withstand the rigours of the oil and gas environment. Gates over the last 12 to 18 months have designed and been at the industry forefront regarding the specialised Frac hoses for the Global and major North America market and can now offer product bore sizes in our portfolio for this application ranging from 2’ to 7’. Due to the size of the Gates Corporation
globally, we can also manufacture and supply a comprehensive range of hydraulic hose assemblies with end fittings in high specifications materials from stainless steel to Inconel and can also offer the industry Low Pressure Bulk transfer hoses, which cover a broad range of mediums including oil, fuel, bulk material, potable water, liquid mud, sea water and methanol, which is vital for drilling contractors and oil majors keeping their operations running on a 24/7 basis and are designed to withstand the most challenging environments of the industry. OGI: Oil and gas operators, and refiners, constantly find themselves working in extreme conditions, could you talk about the importance of a partner that provide security in their hoses? Drew: Gates understand the industry’s current challenges regarding fluid transfer operations with hard pipe work being used on certain rigid applications, which frequently allow the potential for numerous leak paths with high pressure failing to be contained. Operational vibration is one of the main causes to trigger such a potentially dangerous hazard for personal safety and on fluid containment issues for the environment, so for this reason Gates approached a valued customer to discuss a possible solution to remove such hazards on a new market product they were developing where the oil and gas industry is still traditional using iron pipework setups. From initial discussions with the customer it soon became apparent that the solution of replacing iron pipework with a bespoke high pressure / high pulsation hose that Gates Research and Engineering Division could design and develop for such a unique application, a bespoke product was required to offer the customer and the industry increased safety and operational performance. By working with our valued client in a partnership to develop this product together, it soon became clear to both companies that the opportunity we had, would offer the quickest route to market and be a leading innovative step forward for the industry as a whole making our partnership even stronger as we moved forward together. Gates were able to rise to the challenge and was
able to work in a coherent manner with our partner and the FlexConnect high-pressure frac hose was created as a composite hose that can be readily manufactured to multiple lengths of over 30 Meters, with bore sizes from 2” to 7” that can have operational working pressures of up to 15,000 psi to meet the end users individual and industry requirements. This newly developed bespoke hose provides the best possible improved frac medium fluid resistance in the bore for enhanced flow rates, which enables the end user to enhance their frac operation to its maximum potential. The Gates developed FlexConnect hoses for the client reduces the connections down to two instead of the multiple connections needed with traditional iron pipe work products, offering improved performance and an easy solution to rig up and rig down applications in field operations. Within the unique hose carcass design, the hoses are provided with a ‘traffic light’ visual wear indication in the hose body inherent to the hose construction, which allows periodic inspections of the hose bore to determine approximate wear-percentage levels and resultant life remaining in the hose body. Manufactured for extended life, the FlexConnect hose reduces the end user cost related to replacements, recertification, and tracking of equipment, but more importantly it allows for operational time savings and most importantly increases safety for the customer and end user. OGI: How important is it to have a secure and reliable partner for hoses and tubing? Drew: Within the oil and gas industry choosing the right Original Equipment Manufacturer (OEM) is paramount for drilling contractors, oil majors and equipment manufacturers that supply the industry for their hose applications and is not a decision to be taken lightly. These companies try to standardize their hose applications and where they get their hoses from, due to a very small number of European and North American OEM manufactures. There are high risks that come with using lower quality high pressure flexible hose products that can come from Asian markets, so for this reason it is incredibly important for oil and gas companies that rely on High Pressure Flexible Hoses in their critical applications to choose the right OEM and they all tend to use trusted manufactures that have a proven track record. With Gates being recognised as a Global Leader with initiative premium flexible hose products in the industry, we have become the industry ‘go to’ for our flexible hoses that are essential for their applications.
The Gates Corporation not only manufacture, but also offer an after-care market service called Hose Management, that allows customers to get the maximum (extended) operational life from flexible hose products, through highly qualified hose technicians. Gates offer inspection, testing and repair services throughout a hoses operational life to our customers and Gates believe that it is crucial to provide such a service for all clients and vendors to have systems in place to help manage their hoses effectively. The Gates Hose Management Division allows for ‘strengthening partnerships’ to develop with our customers, so we can offer a ‘complete piece of mind’ to our clients and allow Gates to manage their hose integrity programs. A great example of what Gates can offer on our integrity hose management service is the hose tracking register database that compiles clients hose asset information and the system manages these specific hoses from the date of its fabrication to the end of its useful service life. Gates Hose Management Technicians can offer clients various life span limits placed on each type of hose and this helps clients determine when a hose should be taken out of service and replaced. Gates Hose Management offer and strongly recommend that an OEM should perform annual visual and pressure test inspections on all clients high pressure hoses that have seen over 3 years operational service, (when operational time scales allow), to deem that they are still in an acceptable operational condition for the application they are required to operate in. Clients believe that having and independent third-party inspection via Gates Hose Management provides them with integrity and confidence to their operations and if there is any visual defect or pressure issue the hose can be taken out of service for the right reasons. On the rare occasion where flexible hoses may occur a defect or another issue, Gates will work with our clients and offer to investigate the cause; as there are many reasons for hose failures such as being installed incorrectly, overstretching, over pressurisation, or the wrong hose being used to transfer a fluid medium the hose was not designed for. No matter what the cause ends up being, Gates will offer a compiled investigation report, so the client can learn from the failure and take steps to prevent it from happening again by sharing our knowledge with their entire organization. Having this kind of relationship with an OEM Manufacturer like Gates gives a client the ability to strengthen its systems and manage its programs more effectively, so by Gates leading the way in not only hose development of innovative systems for flexible hoses in the oil and gas industry, we also are allowing customers within this industry to have the peace of mind for these most challenging operations they have to operate it. OGI: Thank you for your time. • Gates Engineering & Services UK Ltd. T: +44 (0) 1670 706 210 W: www.gates.com E: Sales_E&S_UK@gates.com
EXPLORATION & PRODUCTION
ABN 53 137 008 247 Unit 4, 6 Hulberts Road, Toormina NSW 2452, Australia
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 and has been further developed over the years to provide a lightweight, portable and extremely reliable sediment sampling solutions. Solutions for any sediment sampling project can be catered for by the experienced SEAS team. 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.
Our lightweight and portable equipment enables us to sample in areas that are inaccessible to many other systems, such as shallow lakes, tidal estuaries and near-shore coastal environments. The various SEAS VC models allow sediment types in to be reliably sampled in environments which can be difficult or prohibitive for outer vibrocoring equipment.
The VC700 4.4Kw system combined with variable frequency control allows the operator to adjust the vibration frequency to suit the sediment type. The ability to vary the frequency provides a range of 5kN – 60kN drive force. In a unit as compact as the VC 700 this is a leader in the field. The VC700 was recently used with reliable success in sampling the dense iron sands offshore northern Luzon, Philippines. The project delivered over 600 core samples to six meters in length with high recovery rates. SEAS also manufacture and operates a number of sediment sampling systems. Box Core systems, Piston core systems and Grab samplers.
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. 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 real-time 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. For further information regarding any of SEAS equipment please contact: email@example.com or visit our website: www.seasoffshore.com
NEWS BRIEF Shah Deniz Begins Gas Deliveries to Europe
On behalf of Azerbaijani oil workers, I congratulate both the people of the European Union and the people of Azerbaijan. We express our utmost gratitude and extend our congratulations to Mr. Ilham Aliyev, the President of the Republic of Azerbaijan, the author and the leader of this initiative!
he Shah Deniz consortium today announced commencement of commercial gas deliveries to Europe from the Shah Deniz gas field in the Caspian Sea offshore Azerbaijan via the newly-completed Southern Gas Corridor (SGC) pipeline system. The start of gas deliveries through the final section of the SGC – the Trans Adriatic Pipeline (TAP) – marks the full integration of the entire SGC gas value chain, stretching 3,500 kilometres from Azerbaijan to Europe.
“Seven years ago, we made the final investment decision together with our partners. We embarked on this journey by signing 25-year gas sales agreements with European gas distribution companies. The construction of three interconnected gas pipelines across continents with a total length of 3,500-kilometres was a highly complex endeavour. Back then, some were sceptical about this project. Now the mission is accomplished – Azerbaijan’s natural gas has arrived in Europe. Coming from a new source through an alternative route, it will contribute to European energy security. We anticipate a growing demand for additional gas volumes on the European market due to the constant local production decline. Our gas will fill this gap for decades to come, and the importance of cooperation between the Old Continent and Azerbaijan will increase.”
“This is an historic milestone, with Azerbaijan and Europe now connected with a direct, safe and reliable energy link, that again demonstrates that together we can deliver the most complex megascale projects successfully.” Said Gary Jones, bp’s regional president for Azerbaijan, Georgia and Turkey Deliveries through this final stage of the system follow safe and reliable gas deliveries to regional markets from the Shah Deniz field via the first two sections of SGC – the South Caucasus Pipeline expansion (SCPx) and Trans-Anatolian Pipeline (TANAP) – that started mid-2018.
Gary Jones, Regional President for Azerbaijan, Georgia and Turkey for bp, the operator of Shah Deniz, said: “The start of gas deliveries to Europe from Azerbaijan is the culmination of years of work by many thousands of people from all the countries involved – the workforce, communities, companies, the government of Azerbaijan and other regional and international governments, and SOCAR and our partners. This is a truly world-class project in all respects.
The Shah Deniz field is the starting point of SGC, which has been built to deliver Caspian energy resources directly to European markets for the first time. The field is expected to supply 16 billion cubic meters of gas to markets in the region and Europe via SGC. Rovnag Abdullayev, President of SOCAR, said: “On this historic day, we express our deep gratitude to the partner companies, specialists and all our colleagues, who participated in TAP, Shah Deniz 2 and the Southern Gas Corridor projects, contributing to the first delivery of Azerbaijani gas to the European market. We thank all financial institutions that supported this project and the residents of the communities where our pipelines pass. As a shareholder in all Southern Gas Corridor segments, SOCAR is proud of the successful completion of this historic mission.
“We are very proud of what we have achieved together. Notwithstanding the complexity of all aspects of the project – engineering, technical, geographical and geopolitical – it has been delivered safely, on schedule and under budget. This is an historic milestone, with Azerbaijan and Europe now connected with a direct, safe and reliable energy link, that again demonstrates that together we can deliver the most complex mega-scale projects successfully.” •
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EXPLORATION & PRODUCTION
In These Trying Times, Peace of Mind Helps Granzow A/S have for the last twenty years delivered numerous air compressors and dryer setups to the offshore industry throughout the world and have become synonymous with a high level of care and quality. The oil and gas industry has extremely high demands when it comes to quality and safety of individual components, and not by chance. Working with high amounts of pressure and flammable materials is no walk in the park, therefore the least you can do to ensure peace of mind, is to find a trustworthy partner with years of knowledge from the industry, so that when things are done, they are done right.
Tailored solutions Throughout the years, Granzow A/S have specialized themselves in delivering tailored solutions that fit the customer’s exact needs. They have for instance provided numerous compressor solutions, that are cooled by sea water. The water flows through the radiator, which will dissipate the heat from radiator into the water. The radiators are mounted in the rig or the FPSO’s hazardous areas/zones. Under normal circumstances salt water greatly reduces the life span of various components inside the compressor, as it corrodes the parts. When choosing which kind of setup to go with, one of the major selling points for choosing an option that utilizes a fresh supply of water, is the fact that it provides a minimal level of flow through the compressor. This translates to fewer spare parts used throughout the lifespan of the system, as well as a lowered need for ventilation in the compressor room – this, too, will save you
money in the long run. Repairs at sea can easily become very costly, so choosing a setup that favors fewer repairs is advisable. When designing a setup, the radiator is usually the most complex thing to consider, as it must be made from materials that can withstand corrosion in a very demanding environment. Granzow A/S solved this problem by using titanium frames as well as titanium cooling pipes with S316 fins mounted. Titanium, as you may know, has the capacity to withstand salt water. As for the electrical motors they use motors with the right level of certification (ATEX). ATEX Higher standards have in recent years been introduced to the ATEX standard. Before the changes to the standard, the compressor itself (as a complete unit) had to be ATEX certified. Now, with the heightened standards, the
compressor and all its individual components must be individually certified. This, furthermore, makes the whole process a lot more time consuming and demanding, as a compressor has quite many parts. In a scenario wherein a customer has placed an order with Granzow A/S, first step is to agree upon what documentation will be needed for the system. If the system is to operate in a hazardous environment, it will have to be classified according to zones, groups, protection, and approval of pressurized receivers. Together with the customer Granzow A/S work out what is required in their case, and then build the system up around these specific requirements. Having one provider manage this process slices time off the clock and provides you with a working solution faster. Have you found a trusted partner yet? Granzow A/S have more than 80 years of experience serving the industry and providing innovative solutions to difficult matters. One thing is getting the right compressor, which meets all the right certifications, another thing is finding a trusted partner to provide continuous service for your system, so downtime never will be an issue. Granzow A/S not only provide you with the right solution when it comes to the hardware but will also provide skilled technicians that are certified and have extensive experience when it comes to the offshore industry. They are always on standby – 24/7/365 – which means they always are within reach if something goes wrong. • Granzow A/S T: +45 43 20 26 00 E: firstname.lastname@example.org W: www.granzow.dk Granzow A/S guarantee spare parts for up to 25 years and an 18-month long warranty.
NEWS BRIEF WITH THE EIC Equinor and YPF Partner With Shell
Exxonmobil Publishes Scope 3 Emissions Data
quinor and YPF have today entered into an agreement with Shell to jointly farm-down 30% non-operated interests in the CAN 100 block, located in the North Argentinian Basin, offshore Argentina. In October 2019, Equinor farmed in to the YPF CAN 100 block and agreed to take over the operatorship. Equinor and YPF currently both hold 50% equity in the license, and will after the transaction hold 35% each, with Shell holding the remaining 30% in the block. The CAN 100 block comprises an area of 15,000 sq km and is the largest block in the North Argentinian Basin. •
Chrysaor Norge Secures NPD Permit to Drill North Sea Well
hrysaor Norge, a subsidiary of oil producer Chrysaor, has been issued a drilling permit by the Norwegian Petroleum Directorate (NPD) for well 15/12-26 located in production licence 973 in the North Sea. The well 15/12-26 is planned to be drilled using the COSL Innovator, a semi-submersible drilling rig designed to operate in water depths up to 750 metres. The rig will commence drilling at well 15/12-26 on completion of the drilling of Chrysaor Norge’s wildcat well 15/12-25 which is also located in production licence 973.
or the first time, ExxonMobil has published data about its Scope 3 emissions, in response to growing investor pressure for transparency on climate issues. Scope 3 refers to emissions associated with the end-user consumption of a product, and is generally considered to account for the majority of a company’s carbon footprint. The Texas-based US oil major estimated that emissions associated with its petroleum product sales in 2019 totalled 730m tonnes of carbon dioxide equivalent. By comparison, UK rival BP measured its Scope 3 emissions at 360m tonnes in the same year, while Royal Dutch Shell counted 576m tonnes. Alternatively, the volume was more than double the entire carbon footprint of the UK in 2019. Exxon said it had taken note that ‘stakeholders have expressed growing interest in Scope 3 data’, and plans to provide annual updates on these metrics from now on. However, the company cautioned that reporting of end-use emissions is ‘less certain and less consistent’ than Scope 1 and 2 – direct emissions associated with a company’s own activities – and comparisons with other businesses can be challenging due to inconsistent reporting methodologies. •
Chrysaor Norge is the operator of the production licence 586 with an ownership interest of 50% while the other licensees include OKEA (30%) and Petoro (20%). •
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EXPLORATION & PRODUCTION
Eni and SNOC Announce Production Start-up From Mahani Field in Sharjah Emirate (UAE) This is the first step in the further evaluation of the discovery, announced last January, that is estimated to hold significant resources of natural gas and associated condensate. The production start-up has been achieved in less than one year since discovery announcement. This is the first start-up from a new discovery onshore Sharjah since the early 1980s, achieved in less than two years from contract assignment and one year since discovery announcement.
an Donato Milanese (Milan), 4 January 2021 - Eni and Sharjah National Oil Corporation (SNOC) are pleased to announce production start-up from the Mahani field, located in onshore Concession Area B of the Sharjah Emirate. This is the first step in the further evaluation of the Mahani gas and condensate discovery, announced last January, that is estimated to hold significant resources of natural gas and associated condensate. The production start-up has been achieved in less than two years from contact signature and less than one year since discovery announcement. Eni holds a 50% stake in the Concession Area B with SNOC holding the remaining 50% and SNOC acting as Operator. Eni acquired Area B in a competitive bid round in January 2019. Production from the Mahani field is sent through a new multiphase trunk line to SNOC’s Sajaa Gas Plant where it is processed utilizing the existing facilities and infrastructure. Field production is expected to increase progressively with the connection of further wells planned to be drilled during 2021-22. Eni Chief Executive Officer Claudio Descalzi
commented: “Production start-up has been achieved in less than two years since Contract Signature and one year since the discovery announcement thanks to the fruitful and continuous cooperation with SNOC. This is a big achievement of which we need both to
be proud of, considering also the exceptional challenges incurred during the year due to the COVID-19 pandemic. Exploration in Sharjah was considered to be over since the 1980s. However, together with SNOC we demonstrated that using state of the art technology and high level competences also areas considered as “mature” can reveal new potential”. Eni will continue its commitment on Sharjah exploration also in the Operated Areas A&C, of which Area C is largely underexplored, with the aim to secure further resources for the benefit and development of Sharjah Emirate. Eni’s presence in the Middle East has continued to grow during the last couple of years. The current exploration acreage in the UAE alone amounts to more than 23,000 square kilometers gross, comprising the onshore of Sharjah and offshore areas of Abu Dhabi and Ras Al Khaimah. Eni has been present in Abu Dhabi since 2018 and today holds three offshore development and production concessions and three offshore exploration concessions. Eni is also a shareholder with a 20% equity interest in ADNOC Refining. •
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MIDSTREAM & PIPELINES
Project Logistics Control Centres: All You Need to Know Project Logistics Control Centres (PLCC’s), what are they? How do they operate? XELLZ, a company in-the-know when it comes to using digital solutions to optimise operations, has much to share on the subject including the limitations to technology and the value of the human factor.
egardless of the technologies or solutions we use today, and no matter how superior AI and automation systems become, in the project logistics industry we all still depend strongly on the human factor. XELLZ believe that all the systems they have created, technological or otherwise, have one basic common drive, “to make things easier for us, our customers, and for the projects we control.” By forgetting this core principle and taking things a bit too far, experts have started to try to implement fully-automated complicated systems as so-called inevitable infrastructural requirements for modern times. When it comes to developing beneficial PLCC’s, there is a fine balance that must be found between human and technological factors. What is a PLCC? The Project Logistics Control Centre is the “mission control” centre that brings all information and communication together into one online location and creates a single point of collaboration eliminating duplication of work. It is a critical environment operated by a team of people with 100% control, productivity, transparency, and efficiency to ensure the success of projects for multi-disciplined organisations.
For O&M, installation and logistics, XELLZ uses these control centres to optimise operations with meticulous planning, control and monitoring. According to XELLZ, the average project has a 35% cost and 7% time overrun rate and delivers 55% less value than expected. By establishing a PLCC, projects can remain 100% in focus, which means less overruns and finishing projects with value and within schedule. “A typical non-stop 365-day 24/7 PLCC is monitoring and controlling the flow of several project logistics information streams at the same time. Communicating with related remote locations and on the ground field
managers, guiding them from the core and taking action if needed.” PLCC’s in Practice Like their other innovations, XELLZ have started using Project Logistics Control Centres for different industrial sectors. The concept can be used for various purposes with one aim: controlling all resources within reach and act when the need arises. In any industry related to capital projects, millions of dollars are allocated to the optimization of the engineering, design and production parts and elements that make up the project. For offshore projects, logistics seems to be a side of the business that is not closely focused on and thus investments in the logistics aspect of the projects are underestimated and underfunded. Control towers are more common in relation to logistics. Attention is given to the control of shipments where planning and track and trace are important. This can, for the most part, be automated through AI and other technological solutions. Project logistics however is never the same. There’s too many variables and controlling them is a whole different discipline altogether. It requires Project Control Centres through which an overview can been be seen centrally and immediate action can be taken if necessary. PLCC’s are the perfect fit to see the big picture through all lenses of the project and leave nothing in the shadows. This enables a safe and timely risk-analysis which is a major factor in getting the “element of surprise” under control.
Peter Bouwhuis, CEO, XELLZ.
PLCC’s Positives PLCC’s provide advantages for many different industry sectors that require logistics monitoring with the ability to take control over in an instant if necessary. Peter Bouwhuis, CEO, XELLZ says, “One of the main advantages of our PLCC’s is the ability to bring many different disciplines together and establish connections between them. That way, project logistics managers can be in control of all different sources at the same time. Without these logistics control centres, every discipline would need a different source to try and collaborate with each other, resulting in a significant loss of time and high costs.” All in Order Even though many companies are able to work the logistics on their own or with a freight forwarder on a daily basis, they still need to constantly check the project logistics operators. The PLCC is there to monitor all movements, actions, documentation, surveys, and other reporting continuously. Production lines need to be under control to prevent unwanted outcomes. Source & inventory control, factory automation systems and all infrastructures should be under control in order for operations to flow. “Many millions are spent optimizing these processes. However, I see too many times that the logistics is not getting as much attention as it should. Logistics is a vital link in any process or project and should never be taken lightly.” says Bouwhuis. PLCC’s direct ships, trucks, aircrafts and any other transport or element that is needed for the project as well as other relevant resources to reach the job site on time. During crisis situations such as natural disasters, coordination between the project logistics centres can potentially prevent project failure and save significant financial loss. Depending on the needs of different sectors and requirements of physical environments and technologies, the devices used in Project Logistics Control Centres can vary. However, many of those core technologies such as ProjeXsmart™, operator stations, security, [route] survey and or inspection reporting protocols stay the same.
Results Results show that control and focus are heightened, and any action taken by the team in charge is proactive instead of reactive. As is the case in most projects, being proactive mitigates risk and avoids a crisis. “Getting a project finished in time and within budget has always and still is the goal that we all strive for, so let’s look at technology as an aid to logistics control and not to automate the control.” Technology is needed and digitization is essential when operating offshore or onshore projects. The logistics is too complex and subject to constant change and outside influences that would easily disrupt a more manual process. A digitalised Project Logistics Control Centre operated by a team is the best approach. Technology helps improve the project focus and control in many ways, but it should never be forgotten that this cannot be achieved without human intelligence. We should think twice about eliminating manpower from complex processes to rely solely on technology. Team of Xellers XELLZ are tackling new challenges and
transitioning project logistics into a smart sector the “XELLZ way” with transparency, trust and technology. Headquartered near Amsterdam, XELLZ provides worldwide project logistics management from their offices in the Netherlands, the U.S., Ireland, Nigeria and Germany. The XELLZ team are currently busy with four upcoming ‘Energy Transition’ projects in Germany and the US, the largest of their kind in these countries. XELLZ is also making headlines with their early involvement in offshore wind farms off the coast of Ireland, where 24shore (a division of XELLZ) has secured over 300.000m2 of land at the port of Rosslare. XELLZ Ireland Ltd. is in discussions with energy companies and others interested in the installation of these offshore wind farms. 24shore will also develop the European Business Park (EBP) on the land connected to the port area with direct access to the quay, and will be used for offshore supply base operations including pre-installation assembly and mobilisation. The area also offers SME’s a space to locate their business during and after the construction and maintenance & repair. • www.XELLZ.com
MIDSTREAM & PIPELINES
Digital Engineering Reduces the Cost of PEEK Composite Pipe Steve Bell, Analysis Manager at Magma Global, explains how simulation analysis has enabled Magma to minimise costs and extend service life in subsea hydrocarbon thermoplastic composite pipe (TCP). The advanced engineering team at Magma continuously refines the design of m-pipe laminate layers to optimise strength and minimise weight, whilst ensuring the PEEK and carbon fibre thermoplastic composite pipe is cost-effective to manufacture. Reducing the amount of material reduces the consumption of the fossil fuels. The lightweight nature of m-pipe means minimises costs as smaller installation vessels are required and installation is simple. Meanwhile its flexibility removes the need for complex metrology and bespoke steel manufacture.
rior to investing in advanced simulation software, Magma’s design process was like most in the industry. Designs for a particular application needed to be physically tested, which very quickly drives up costs and lead times. Simulating service life conditions for TCP Advanced simulation software from ANSYS has drastically altered this process through realistic simulations, where actual test behaviour is replicated in the structural response of a numerical model for service life load combinations. We can produce a qualified product, exceeding customer requirements, throughout the design cycle, all the way through to end of life in an incredibly fast time frame. Numerical simulation with ANSYS Workbench FEA (Finite Element Analysis) changed the process allowing our Computer Aided Engineering (CAE) team to rapidly consider different options through efficient scripts within Workbench. Numerous iterations can be assessed to validate the structural integrity of m-pipe. The number of physical tests has been dramatically reduced and they now have become confirmatory. Each test is also strain gauged to allow correlation against the numerical model. The ability to simulate m-pipe service life conditions is good for clients. We not only share structural analysis results, including stress and strain plots, but we also interface with DNVGL to gain class approval. As a result, we can produce some of the most robust thermoplastic composite pipe in the oil and gas sector, which can cope with extreme operating envelopes, with the least possible material required. This helps to keep product costs as low as possible. Magma’s CAE Process Although the concept of a composite pipe
appears relatively simple, in practice the numerical models are extremely complex. The laminate can comprise over 50 layers with each layer orientated to optimise structural performance while remaining within manufacturing parameters. A metallic end-fitting is secured at either end to provide a robust connection to third-party equipment. The analysis sequence simulates the service life of the product which covers storage, transportation, test, installation and operation. The first step is usually an investigation using Orcaflex to determine the system global response. This is used to extract the local forces and moments for application to the pipe body and end fitting FEA models. Orcaflex is also used to simulate transpooling operations of the pipe around the Magma site as it comes off the manufacturing reels on to
Above: m-pipe behaving as expected in a lifting operation.
storage reels or for lifting operations. Pipe Body FEA We have developed our own pipe body ‘Magma ANSYS Pre and Post Processor’ (MAPPS) interface which provides an easy to use design tool for all Magma engineers without the need for in-depth knowledge of ANSYS. Input data produces a threedimensional FEA model using a twenty-node layered element with quadratic behaviour, which is required for modelling thick composites. MAPPS also allows the input of individual ply properties and the retrieval of stress and strain results.
Key aspects of any composite model are the ply material properties. We have completed extensive physical testing to derive this information. Each solution takes seconds to complete allowing the laminate construction to be quickly optimised using our graphical interface.
Left: Example of pipe body composite ply orientation.
The pipe body is designed in accordance with DNVGL-ST-F119 and DNVGL-ST-C501. As m-pipe is composed of numerous lamina at differing angles and potential different material characteristics, they must be assessed individually to ensure the various failure criteria are not exceeded. We use the maximum strain failure criteria to carefully assess the fibres and matrix within each ply both along the length of the pipe and through the laminate thickness.
Below: Example of pipe body composite ply – strain in the axial pipe direction.
In addition, component results are also orientated into the system to determine axial, hoop and radial values. End-Fitting FEA The end-fitting assemblies are fabricated from super duplex stainless steel. It comprises an arrangement of concentric components that generate a radially compressive pressure sandwiching the pipe body without the need for any bolt or pinned connections which would compromise the laminate integrity. The structural analysis is performed using an FEA assembly model created based on CAD geometry provided by the design team. Minor features, such as threads, non-critical holes and small blend radii are then easily removed. To allow the application of external loads a section of the pipe body is included in the end fitting FEA model. Classical laminate theory is used to calculate the equivalent orthogonal stiffness values for the pipe to simulate thecomposite behaviour without defining the laminate. Sensitivity studies ensure the element density is adequate in the critical areas e.g. stress concentrations. The end-fitting is designed in accordance with Section F100 of DNV-OS-F101 which requires
mechanical connectors to be designed against ASME VIII Division 2. To verify the design of the end fitting the following design checks are performed: •
Protection against Plastic Collapse
Protection against Local Failure
Protection against Hydrogen Induced Stress Cracking (HISC) in accordance with DNVGL-RP-F112
To accurately simulate the load path through the end-fitting assembly contact between individual components including the effect of friction is included. Stress-strain curves are defined for the super duplex material including the effect of temperature. This, in combination with the contact, means the
analyses include the effect of both non-linear material and geometry. To represent each service condition a sequential loading combination is applied to the FE model as a series of non-linear steps. This can mean up to 10 load steps are applied including thermal expansion, pressure, axial tension and bending moment Detailed ASME integrity checks are undertaken to ensure the combination of end fitting and m-pipe body are fit for purpose in accordance with an internationally recognized pressure vessel and sub-sea design code. Presenting virtual results helps oil operators understand the behaviour of m-pipe. Our analysis provides clear and concise information that can easily be interpreted by all parties. The outcome is less risk, greater customer involvement and confidence up front. As part of our ISO 9001 quality assurance system a thorough independent check is undertaken on each new FEA model to ensure the assumptions are correct and the subsequent results are acceptable. A technical report is also submitted to the client or DNVGL for review. Future developments Our investment in digital engineering has enabled the most cost effective yet high performance pipe to be proven at minimal engineering cost. We plan to extend the Magma standard ANSYS material library, further refine integrity checks, automate results post-processing and improve contact behaviour to reduce solution times further. Our engineering tools dramatically reduce testing time and expedite projects efficiently and accurately. •
Example of stress-strain curve for super-duplex F55.
MAGMA GLOBAL LTD www.magmaglobal.com
MIDSTREAM AND PIPELINES
Aramco Continues Progress in Digital Transformation With SAP Strategic Alliance Aramco today announced a strategic alliance with SAP Saudi Arabia to expand the digitalization of its Enterprise Resource Planning (ERP) systems. The agreement with SAP is another step in Aramco’s digital transformation journey, paving the way for further integration of new technologies in a rapidly evolving technological landscape.
he SAP ERP system will deepen the deployment of innovative IR4.0 technologies including cloud-based services, embedded analytics, mobility, machine learning, artificial intelligence, advanced analytics and Internet-ofThings solutions. By extending the strategic alliance with SAP Saudi Arabia, Aramco’s contribution to the inKingdom business ecosystem will be enhanced through job creation, training and by localizing supplier services and R&D. In addition to enabling greater efficiencies, SAP’s Data Center in Saudi Arabia will offer new cloud solutions to Aramco and other companies. Ahmad A. Al Sa’adi, Aramco Senior VicePresident of Technical Services, said: “We are committed to our digital transformation program, which is improving our ability to meet the needs of our customers around the world and setting a new standard for technology deployment in our industry. Technologies and solutions within digital transformation initiatives will touch all facets of our operations. This is just one more example of how we are applying best practice in this space and embracing 4IR solutions. It is an important milestone on our digital journey and also contributes to our iktva target.”Luka Mucic, Member of the Executive Board of SAP SE, Chief Financial Officer, said: “In 23 years of strong collaboration, Aramco and SAP have become strategic partners. With numerous co-innovation initiatives, we have jointly introduced oil and gas best practices, enhanced business operations, and expanded the horizon of opportunities in this industry. Aramco has taken the next step on their digital transformation journey and towards becoming an Intelligent Enterprise, implementing S/4 HANA and the Business Technology Platform amongst others.”
SAP’s new platform will serve the entire Aramco organization, supporting the Company’s Digital Transformation Program and enabling new processes for a majority of the company’s enterprise applications and solutions. The new architecture leverages emerging technologies that will propel Aramco into a new era of Intelligent Enterprise and benefits include faster processing, intuitive user experience, real-time reporting, integration with cloud solutions and system consolidation, which reduces total cost of ownership. •
THE USE OF LNG IS GROWING. DO YOU NEED TO KNOW MORE?
DEVELOP AND STRENGTHEN YOUR LNG KNOWLEDGE AND EXPERTISE GTT Training can provide training in all aspects of LNG operations for ships and terminals, in almost any location, worldwide. Our training portfolio includes approved STCW, introductory and operations courses for LNG Carriers, LNG Bunker vessels and vessels using LNG as marine fuel, along with a range of courses covering FSRUs and LNG terminal personnel. GTT Training uses its own, in-house developed, Liquid Gas Handling Simulator, G-Sim. G-Sim is a simulation platform that allows operators to be trained in all aspects of handling Liquid Gas on board LNG Carriers, LNG Fuelled Vessels and within shore facilities. Approved by DNV GL, G-Sim is also available for purchase by clients for use in delivering their own training programs either ‘Online’ or in their training facilities. GTT Training can also provide support for course development, course delivery and the training of instructors.
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HEALTH, SAFETY & ENVIRONMENT
Make an Impact OGI sits down with the Globus Group, based out of the United Kingdom to talk about the importance of safety in the oil and gas workplace. It’s important to note the role that the right gloves can play in ensuring not only the safety of your staff, but the efficiency and ease of their work. Globus Group is here to help readers understand what to look for in their workplaces and the types of PPE that can be applied to make a safer work environment for everyone. This is very important and employers should take note, because without adequate PPE or personal hand protection, workers can face possible life changing injuries. We learn more below.
OGI: Could you start by explaining Globus Group’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? Globus Group: Globus Group has been active within the oil and gas sector for over twenty years. Starting with North Sea operations in Aberdeen where we were asked for help several major producers and service companies to develop solution-based products that were designed to offer improved protection, comfort, and fit. On the back of this success, we subsequently managed to build the business globally across various territories including the Middle East, Africa, and the USA. Since launching in these jurisdictions, we were able to introduce new ranges and now regularly exhibit to various oil and gas sector exhibitions across the globe. OGI: Globus Group has a few different product lines, what are the products you offer which are applicable for the oil and gas industries?
Globus Group: We offer a wide range of market-leading PPE products including Showa & Skytec gloves, Riley Safety Eyewear, respirators, chemical clothing, and hearing protection from Alpha Solway (part of the Globus group) plus Enha head protection. This year we launched a number of new products including our next-generation Impact glove range “Skytec TORQ”, which is designed to offer improved protection, comfort, fit and dexterity.
Throughout our journey of growth, we have launched various product lines and ranges which have been inspired by the oil and gas sector. Our range of PPE is especially suited to the hazardous environments that come from working in the sector. OGI: From a health and safety perspective, what are some of the things employers should look out for when operating in hazardous environments? Globus Group: Multiple aspects need to be looked at when selecting PPE, however, two of the most important aspects would be to ensure that any product selected is fit for purpose and complies with the relevant standard. Each product category has a particular standard and testing requirement, so as an example when selecting hand protection, you need to detail the potential hazards, whether that be cut, chemical,
temperature etc and ensure that the glove selected has been tested to the relevant standard.
the nitrile coating protects from liquids and ensures grip.
OGI: What are some of the potential problems or dangers workers can get into without adequate hand protection?
The cut and sewn technology are the holy grail for heavy-duty work. Made of multiple layers with resistant palm materials, they offer a high cushioning effect when handling heavy parts. The technology allows the combination of engineered textiles to design the optimal glove for dedicated tasks and risks.
Globus Group: For anyone working within the oil and gas industry, hand protection is key to enabling the wearer to perform in their role safely, giving them the ability to do the best job they possibly can. If a worker fails to wear adequate hand protection, it could result in many long-term, if not life-changing, injuries. These include the impact to pinch point injuries, cuts and punctures of the skin, broken bones within the hand, skin irritation when handling liquids, and a flare-up of any allergies or dermatitis. At Globus Group, we provide a range of gloves, safety eyewear, and hearing protection just to name a few, all of which are specially designed to protect in hazardous environments such as when working in the oil and gas industry. OGI: Can you talk a bit about your SKYTEC TORQ™ line of gloves? Globus Group: Hand protection is integral to prevent hand injuries before they happen. A person’s hand structure is complex and made up of many different components such as bones, joints, ligaments, muscles, nerves, and arteries that enable a wide range of movement and feedback. Gloves not only protect hands against impacts, cuts, scrapes, and scratches but also dangerous chemicals or contaminants. The TORQ impact glove range uses textile innovations and smart designs to help wearers work faster and safer, to the best of their ability. The range is comprised of seamless, knitted, dipped, impact gloves that offer amazing dexterity. With their liner moulded to the natural hand shape, they offer increased sensitivity while undertaking precise tasks. The cut-resistant liners feature 360° protection while
OGI: Could you talk about some of the work Globus Group has done in the fight against Covid-19?
Globus Group: Our group strategy is to manufacture 75% of our products in the UK, which has been accelerated in response to the COVID-19 crisis. When the pandemic hit, Globus Group was awarded multi-million-pound contracts with NHS Scotland and NHS England. For NHS Scotland, we were selected to manufacture 232 million surgical masks and 2 million visors at our facilities at Alpha Solway in Scotland – this included 1.2 million visors which were delivered within just 12 weeks. In addition to the surgical masks and face visors, Alpha Solway has been producing6 million FFP3 respirator masks, fulfilling 87% of Scotland’s health and social care needs. FFP3 masks offer the highest level of protection against fine particles, including viruses and bacteria. Globus Group also opened two additional manufacturing facilities in Scotland and in North West England to produce vital PPE for
frontline NHS staff in the country. The new production plants are capable of the annual production of 200 million FFP3 masks, 100 million FFP2 masks, 1 billion Type IIR medical masks, and 22 million visors. We also amplified the production of single-use gloves following increased demand. Globus Group has also launched a new range of gloves that have been treated with Sanitized® antimicrobial technology, providing longlasting freshness, keeping bacteria and other microbes like viruses such as Coronavirus from settling on the gloves. OGI: Finally, could you enlighten our readers on a case study where you helped a client with your solutions? Globus Group: One of the world’s largest oil and gas drilling contractors was having issues with contact dermatitis. It had been identified that the main cause of this was the impact gloves being supplied offered little to no protection against liquids, predominantly oilbased mud. Globus Group worked alongside Showa to develop the 377IP glove which offered the best of both worlds with resistance to oil-based mud along with impact protection and dexterity for the operators. OGI: Thank you for your time. • Globus Group
The SKYTEC TORQ™ im
T: +44 (0)161 877 4747 E: email@example.com These were created with wearers in mind W: www.globusgroup.com These new products are balanced with high Scan QR code with phone camera to view the range.
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HEALTH, SAFETY & ENVIRONMENT
Leading Energy Companies Announce Transition Principles •
Eight leading energy companies have jointly developed and agreed Principles as a collaborative platform for energy transition. Joint collaborative approach welcomed by investors leading engagement with companies across sector through Climate Action 100+. Principles support collective industry acceleration to contribute to the Paris Agreement objectives by delivering progress on reducing GHG emissions, the role of carbon sinks, and the importance of transparency and alignment on climate change with trade associations. Companies are building further on this collaboration to drive more consistency and transparency in Greenhouse Gas reporting, and in measurement of the emissions which may occur at different points in the value chain.
eading energy companies, bp, Eni, Equinor, Galp, Occidental, Repsol, Royal Dutch Shell and Total today announced they have agreed to apply six Energy Transition Principles as they play their part in the energy transition. The six Principles, agreed and embraced by the companies, are to: •
PUBLIC SUPPORT FOR THE GOALS OF THE PARIS AGREEMENT: publicly support the goals of the Paris Agreement, including international cooperation as a vehicle to ensure these goals can be achieved at the lowest overall cost to the economy.
INDUSTRY DECARBONISATION: In line with each company’s individual strategy, ambitions and aims, work to reduce emissions from their own operations and strive to reduce emissions from use of energy, together with customers and society. Companies may measure their contributions using carbon intensity and/ or absolute metrics at different points in the value chain as determined by their approach.
ENERGY SYSTEM COLLABORATION: collaborate with interested stakeholders, including energy users, investors and governments, to develop and promote approaches to reduce emissions from use of energy, in support of countries delivering their Nationally Determined Contributions (NDCs) towards achieving the goals of the Paris Agreement.
DEVELOPMENT OF CARBON SINKS: continue to support and promote development of emissions sinks such as carbon capture, utilisation and storage technology (CCUS) and natural sinks.
TRANSPARENCY: provide disclosure related to climate change risks and opportunities consistent with the aims of the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD).
INDUSTRY AND TRADE ASSOCIATIONS: report information about their memberships of main industry and trade associations and their alignment with the companies’ key climate advocacy and policy positions.
Stakeholders are asking for more consistency and transparency in the metrics used by industry to report on climate-related performance. Recognising that each company has its own strategy, aims and ambitions regarding the energy transition, many of the companies are collaborating on two further strands of technical work. The first is on increasing transparency and consistency of the definitions and scopes used for data reporting, and acknowledge where differences remain due to the diversity of the companies’ businesses and approaches. The second is to work to develop a consistent methodological framework to measure and report the net carbon intensity of their energy products and emissions reduction activities. “Meeting the challenge of tackling climate
change requires unprecedented collaboration between energy companies, governments, investors and other stakeholders. The principles will act as a framework for actions leading energy companies are taking together, as well as a platform for collaborating with wider stakeholders.” said the CEOs of the participating companies. Adam Matthews, Chair of the Climate Action 100+ European Investor Working Group on a Net Zero Standard said: “This is an important foundational commitment. It represents a significant consolidation of the progress that has been made in Europe whilst also seeing the first US oil and gas company joining with their European peers. As CA100+ investors we are in extensive and detailed dialogue with the oil and gas sector and it is extremely helpful to have a position from these companies that unifies around core principles including on scope 3 emissions and corporate lobbying amongst others.” Anne Simpson, Climate Action 100+ Board Member from CalPERs said: “We welcome the Energy Transition Principles which focus industry attention not just on what each company needs to do alone, but what all must do together. This cross-sector work will be vital to achieving the goal of Net Zero emissions in the real economy by 2050 or sooner.” •
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NEWS - SOUTH AMERICA Total Closes Its Participation in the Energía Costa Azul LNG Export Project
Exxonmobil Discovers Hydrocarbons Offshore Suriname
otal, Sempra LNG and IEnova have signed binding agreements finalizing Total’s equity investment in the Energía Costa Azul liquefied natural gas export project (ECA LNG), located in Baja California, Mexico. Total now holds a 16.6% equity share of the project, for which the final investment decision was taken last November for the development, construction and operation of a single-train liquefaction facility with a nameplate capacity of 3.25 million tonnes per annum (Mtpa) of LNG and an expected start in 2024. Last April, Total also closed a twenty-year offtake agreement for 1.7 Mtpa of LNG. “We are very pleased to further strengthen our partnership with Sempra Energy through our participation in the ECA LNG project, that benefits from brownfield synergies with existing facilities and from the proximity to Asian markets,” said Philippe Sauquet, President Gas, Renewables & Power at Total. “This investment is in line with our strategy to grow our LNG integrated portfolio across the entire gas value chain, which is a key to meet a growing global demand for energy while decreasing the carbon intensity of the products sold to our customers.” ECA LNG is owned by Sempra LNG (41.7%), IEnova, Sempra Energy’s subsidiary in Mexico (41.7%), and Total (16.6%). Total, Second Largest Private Global LNG Player Total is the world’s second largest privately owned LNG player, with a global portfolio of nearly 50 Mtpa by 2025 and a global market share of around 10%. The Group benefits from strong and diversified positions throughout the LNG value chain: gas production and liquefaction, LNG transportation and trading, and contribution to the development of the LNG industry for maritime transport.
xxonMobil and PETRONAS have discovered hydrocarbons at the Sloanea-1 exploration well on Block 52 offshore Suriname, adding to ExxonMobil’s extensive finds in the Guyana-Suriname basin. The well was drilled by operator PETRONAS, and the discovery is being evaluated to determine its resource potential. “Our first discovery in Suriname extends ExxonMobil’s leading position in South America, building on our successful investments in Guyana,” said Mike Cousins, senior vice president of exploration and new ventures at ExxonMobil. “We will continue to leverage our deepwater expertise and advanced technology to explore frontier environments with the highest value resource potential.” ExxonMobil said in November that it is prioritizing near-term capital spending on advantaged assets with the highest potential future value. The Suriname discovery further strengthens ExxonMobil’s industryleading portfolio along with its other recent exploration success in the same basin in Guyana. PETRONAS drilled the well to a total depth of approximately 15,682 feet (4,780 meters) using the Maersk Developer rig. Block 52 covers an area of 1.2 million acres (4,749 square kilometers) and is located approximately 75 miles offshore north of Suriname’s capital city, Paramaribo. The water depths on Block 52 range from 160 to 3,600 feet (50 to 1,100 meters). ExxonMobil Exploration and Production Suriname B.V., an affiliate of ExxonMobil, holds 50 percent interest in Block 52. PETRONAS Suriname E&P B.V., a subsidiary of PETRONAS, is operator and holds 50 percent interest. •
Through its interests in liquefaction plants in Qatar, Nigeria, Russia, Norway, Oman, Egypt, the United Arab Emirates, the United States, Australia and Angola, the Group markets LNG on all world markets. Total is a broad energy company that produces and markets fuels, natural gas and electricity. Our 100,000 employees are committed to better energy that is more affordable, more reliable, cleaner and accessible to as many people as possible. Active in more than 130 countries, our ambition is to become the responsible energy major. •
PGS Delivers Final Products for Santos Vision
GS has completed the final phase of its Santos Vision MultiClient seismic data revitalization project. The latest data covers areas to be included in the Brazil Transfer of Rights Round in 2021. Nearly 49 000 sq. km of seismic data from 13 separate surveys have now been reprocessed into a single, seamless, high-quality broadband product, providing the most comprehensive and geologically sound dataset in the Santos Basin. Santos Vision provides the data oil and gas companies need to screen opportunities, derive analogs, plan wells, and reduce exploration risk with the very latest consistent-imaging technologies from PGS. The recent opening of the presalt play fairway to unitization and new bid rounds makes this prolific basin once again an area of industry interest. Current producing acreage opportunities, that will be included in the next ANP Bidding Round for Surplus Volumes (Cessão Onerosa) in Q3 2021, are revealed in this release of the Santos Vision dataset. The Sepia and Atapu fields will be among those auctioned. The MultiClient products now available from the Santos Vision dataset provide new insights over these producing assets and other fields, such as Lula, Sururu, Berbigao, and south Gato do Mato. •
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NEWS - MENA ADNOC Awards Eni and PTTEP Consortium
he Abu Dhabi National Oil Company (ADNOC) announced, today, the signing of an exploration concession agreement, awarding the exploration rights for Abu Dhabi’s Offshore Block 3 to a consortium led by Eni Abu Dhabi B.V., a wholly-owned subsidiary of Italy’s multinational energy company, Eni, and PTTEP MENA Ltd., a whollyowned subsidiary of Thailand’s PTT Exploration and Production Public Company Limited (PTTEP).
of Offshore Block 3, as well as Offshore Blocks 1 and 2, and lead to a successful discovery. The strategic partnership has been established to jointly contribute to the petroleum development in UAE and be part of the growing industry. Meanwhile, this business progress has also reinforced our presence in the Middle East following the company’s Execute and Expand strategy. Such approach aims to sustainably increase both petroleum reserves and production in the future.”
The award has been approved by Abu Dhabi’s Supreme Petroleum Council (SPC). It follows ADNOC’s award earlier this month of an onshore block to Occidental, highlighting how ADNOC continues to leverage and strengthen its strategic partnerships to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources.
Offshore Block 3 covers an offshore area of 11,660 square kilometers northwest of Abu Dhabi city. New 3D seismic data has been acquired for a part of the block, which, combined with its proximity to the existing onshore oil and gas fields, suggests the concession area has promising potential.
The exploration concession agreement was signed by His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO; Claudio Descalzi, CEO of Eni; and Phongsthorn Thavisin, CEO of PTTEP.
In addition to drilling exploration and appraisal wells, the exploration phase will see Eni and PTTEP leverage and contribute financially and technically to ADNOC’s mega seismic survey, which is already acquiring seismic data within the block area. This world’s largest 3D seismic survey is deploying industry-leading technologies to capture high-resolution 3D images of the complex geology at ultra-deep locations below the surface and will be used to identify potential hydrocarbon reservoirs.
H.E. Dr. Al Jaber said: “This concession award reinforces ADNOC and Eni’s growing partnership across our value chain and deepens our relationship with Thailand’s PTTEP, one of the key markets for our crude oil and products. This again validates our targeted approach to value-add partnerships that contribute the right combination of capital, technology, capabilities and market access to accelerate the development of Abu Dhabi’s hydrocarbon resources. “Despite volatile market conditions, we are making very good progress in delivering Abu Dhabi’s second competitive block bid round, underscoring our world-class resource potential and the UAE’s stable and reliable investment environment. We continue to welcome partners that share our vision to sustainably unlock value from our hydrocarbon resources for our mutual benefit, as we deliver on our 2030 strategy and enable long-term returns to the UAE.” Under the terms of this agreement, Eni will operate the exploration phase of the concession, and PTTEP and Eni will collectively hold a 100% stake in the exploration phase, investing up to AED1.51 billion ($412 million) towards exploration and appraisal drilling, including a participation fee, to explore for and appraise oil and gas opportunities in Offshore Block 3. This award underscores the attractiveness of Abu Dhabi’s huge untapped resource potential and ADNOC’s ability to continue to secure foreign direct investment (FDI) to the United Arab Emirates (UAE), despite the tough market environment. Offshore Block 3 offers the potential to create significant in-country value for the UAE over the lifetime of the concession. Claudio Descalzi said: “This award follows the one achieved by the same consortium in 2019 for offshore exploration Blocks 1 and 2 and represents a further important step towards the realization of Eni’s strategy to become a leading actor in the development and production in Abu Dhabi, a leading region for the oil and gas industry, while contributing through its expertise in exploration to add further resources and exploit all potential synergies with the surrounding fields. It also further strengthen our relationship with our valuable partner PPTEP. Offshore Block 3 represents a challenging opportunity that can unlock significant value thanks to exploration and appraisal of shallow and deep reservoirs”. Following successful commercial discovery during the exploration phase, Eni and PTTEP will, together, have the right to a production concession to develop and produce such commercial discoveries. ADNOC has the option to hold a 60% stake in the production phase of the concession. The term of the production phase is 35 years from the commencement of the exploration phase. Phongsthorn Thavisin said: “This concession award offers another great opportunity for PTTEP to strengthen collaboration with worldclass strategic partners Eni and ADNOC. The consortium will bring capabilities, experiences and technology to accelerate the development
In January 2019, a consortium led by Eni and PTTEP was awarded two offshore blocks in Abu Dhabi’s first competitive bid round. The consortium continues to explore for oil and gas in the blocks known as Offshore 1 and Offshore 2, located northwest of Abu Dhabi city. All exploration activities in Abu Dhabi are carefully planned to mitigate any potential impacts through the implementation of protection measures, the use of advanced techniques and technologies, and stakeholder engagement to minimize drilling activities in populated or environmentally sensitive areas. ADNOC launched Abu Dhabi’s second competitive block bid round in 2019, offering a set of major onshore and offshore blocks, on behalf of the SPC. Based on existing data from detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion cubic feet of natural gas. This award comes about a month after the SPC announced the discovery of recoverable unconventional oil resources estimated at 22 billion stock tank barrels (STB) and an increase in conventional oil reserves of 2 billion STB which boosted the UAE’s conventional reserves to 107 billion STB. •
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NEWS - RUSSIA & CIS First Russian Cryogenic Pump Successfully Tested at Yamal LNG
NOVATEK and Siemens Energy Signed Agreement to Decarbonize LNG Production
AO NOVATEK (“NOVATEK” and/or the “Company”) announced today that the first large-scale cryogenic pump manufactured in Russia was successfully tested at the Yamal LNG project. The cryogenic pump was designed and manufactured by Afrikantov OKB Mechanical Engineering (part of JSC Atomenergomash). The cryogenic pump tests were conducted at Yamal LNG’s current LNG tank storage and the tests confirmed the pump’s performance consistent with its design parameters. The pilot cryogenic pump is presently operating at Yamal LNG. “One of NOVATEK’s key priorities is to develop and foster LNG technologies and capabilities in Russia,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “Our joint work under the agreement we signed with Atomenergomash in 2017 has already yielded significant results. We have jointly developed Russia’s first domestically manufactured large-scale LNG cryogenic pump and commissioned its pilot operations at our Yamal LNG plant. The further use of Russian developed and manufactured equipment at our LNG projects will ensure import substitution and reduce capital costs, as well as contribute to the development of a new industrial sector in Russia”. •
oday, PAO NOVATEK (“NOVATEK” and/or the “Company”) and Siemens Energy signed a Strategic Partnership and Cooperation Agreement (“Agreement”). According to the Agreement, the Parties intend to jointly develop and implement high-tech solutions to produce LNG, electricity, hydrogen and other products to maintain sustainable development initiatives and achieve the Parties’ goals to reduce their carbon footprint and increase environmental efficiency. As part of the Agreement, the Parties will commence implementing a project to replace fuel natural gas used in the production of electricity and LNG with carbon-neutral hydrogen. “We have a long and successful track record of mutual cooperation with Siemens Energy who is a key equipment supplier for both our Yamal LNG and Arctic LNG 2 projects,” noted Leonid Mikhelson, NOVATEK’s Chairman of the Management Board. “Our strategy to expand LNG production in the Arctic region is based on utilizing stateof-the-art technological solutions that meet and/or exceed stringent environmental requirements. Our further collaboration with Siemens Energy to decarbonize our LNG production will contribute significantly to the mitigation of climate change, which is of paramount importance to reduce our carbon footprint in the Arctic ecosystem.” •
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Natural Gas Will Continue to Be Cornerstone in the Low-Carbon Energy Transition
Equinor Drills Duster near Johan Sverdrup Field
he Norwegian company drilled the well around one kilometer west of the Johan Sverdrup oil field and 200 kilometers west of Stavanger.
According to theIn Norwegian Directorate, the objective of thethat was inaugurated and attended by H.E. Tan Sri remarksPetroleum at the 7th Ministerial Gas Forum well was to proveMuhyidden petroleum, asYassin, well as Prime to investigate potential reservoir Minster of Malaysia, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister rocks in severaloflevels: Upper Jurassic (intratheDraupne formation State for Energy Affairs, President and CEO of Qatar Petroleum, said energy will continue to sandstones), Upper (Skagerrak formation), Upper Permian be Triassic key to global growth and development on (the the road to recovery in the post-COVID world, and that Zechstein group) and weathered/fractured basement rock. TechnipFMC Picks President of New Ventures
natural gas will continue to be a cornerstone in the low-carbon energy transition.
The well was drilled about 110 meters into basement rock, of which His Excellency the Minister made the remarks during a virtual Ministerial Roundtable held under the 77 meters of weathered and fractured basement rock with poor to moderate reservoir properties. In the upper part of the basement, the ilfield services company TechnipFMC has appointed a new well encountered traces oil in a zone of about 19 meters. At this time, and arepresident new ventures. title, “Opportunities in of Growing Gas Markets: the global economy, trying toof assess His Excellency the Minister also highlighted it is impossible to determine whetheronthe New oil is producible or simply Producer-Consumer Perspectives the over-reaching brunt TechnipFMC on the energy said sector Qatar’s efforts to keep the environment front on Monday that Catherine MacGregor joined its residual. No encountered in particularly other levels. Realities” as sedimentary part of therocks 7th were Ministerial – and on the gas industry. ” center across the whole LNG value executive leadership teamand as the new president of new ventures. Pending new which information interpretation data, the Gas Forum, was and organized by the of collected chain. H.E. Minister Al-Kaabi said, “Lower His Excellency Minister Al-Kaabi noted Doug Pferdehirt, TechnipFMC chief executive officer, said: “In our preliminary classification is that the well is dry. Government of Malaysia in cooperation with CO2 emissions and carbon capture and that a post-COVID world willchanging be different, rapidly and extremely competitive environment, the ability to TheInternational well was not Energy formation-tested, but and extensive have a new way of thinking the Forum (lEF) the volumes sequestration are part of the basic design of and thatofitdata will require expand our possibilities and to develop our business in new directions been acquiredGas andUnion samples have been taken. It will now be permanently International (lGU). our new LNG facilities being built as part of on how to manage ouriseconomies and our a critical asset for TechnipFMC’s future. plugged and abandoned. The well has yielded important information the North Filed Expansion projects, which In his remarks at the roundtable, His Excellency relationship with the environment. “This is “This is why we have decided to create New Ventures to explore about theAl-Kaabi potentialhighlighted for reservoirthe properties the basement as well will raise our production to –126 million Minister impact ofinthe where, Irock, believe, natural gas plays a pivotal opportunities to expandtons ourper portfolio through innovative models as pressure communication in the area. annum by 2027. Qatar Petroleum COVID pandemic and its heavy toll on world role and displays its most importanteconomic and new business lines. is Catherine will be ain series charge ofof projects defining and implementing and This is the which secondhas exploration in production license 502, whichqualities,” H.E. added. economies, disruptedwell many aspects and environmental implementing this new, promising approach. ” initiatives to reduce gas emissions, and to was awarded in APA 2008. Water depth at the site is 105 meters. of life with an agonizing human toll, and an His Excellency the Minister of State capture andwith sequester more than 7 million MacGregor previously spent 23 years Schlumberger in a succession The well was drilled to a vertical of and 1988 meters below the sea unprecedented disruption to the depth growth for Energy Affairs told the ministerial tons of global CO2 per annum by 2027, placing us of leadership positions involving operational activities. surface, and wascountries terminated the basement rock. The well was drilled prosperity many hadinhoped to achieve. roundtable that “with challenges often firmly on the road to becoming a leader in the by the Transocean Spitsbergen drilling rig, which will now proceed to These included His Excellency said, “While we mark one year come opportunities,” stressing the needbeing for president of Drilling Group, president of the de-carbonization of the LNG value chain. ”• the shipyard before well operations start up on the Snorre field in the Characterization Group, area president for Europe and Africa, president of life with COVID-19, we are still coming to stronger producer-consumer collaboration northern part of the North Sea. • of Wireline and VP of human resources. • terms with its short and long-term impacts on as an important path to recovery.
Equinor Awarding Northern Lights Contracts Equinor awards two key contracts worth NOK 1.3 billion in connection with the Northern Lights project. Kværner AS has received a letter of award for the engineering, procurement and construction (EPC) contract for the onshore plant facilities at Energiparken in Øygarden. The onshore plant will receive and store liquid CO2 before it is exported through a pump and pipeline system for injection offshore. The value of the contract is estimated at around NOK 1.05 billion. The start-up of the work is planned in January 2021, and completion is planned by Q1 2024. Kværner AS is a fully owned subsidiary of Aker Solutions.
ker Solutions AS has been awarded an EPC contract for delivering a subsea injection system for the CO2 well in the North Sea. The contract is awarded as a call-off under the framework agreement signed with Equinor in 2017. The value of the contract is around NOK 250 million. The work will start in January 2021 with installation and completion in 2023. The contract also includes options for equipment for future wells. Northern Lights will be the first of its kind – an open and available infrastructure enabling transport of CO2 from industrial capture sites to a terminal in Øygarden for intermediate storage before being transported by pipeline for permanent storage in a reservoir 2600 meters under the seabed. “These contracts are key to the success of the Northern Lights project. We look forward to working together with Aker Solutions and Kværner to deliver on our part of the solution to reduce industrial emissions,” says projectdirector for Northern Lights Sverre Overå. The pre-fabrication for the onshore facilities will be done at Aker Solutions’ yard at Stord before site installation. The scope includes facilities
at jetty for import of CO2 from ships, storage tanks for intermediate storage of CO2 and process systems.
“Equinor aims to become a net-zero energy company by 2050. This requires that we together with our suppliers develop new value chains and projects such as offshore wind, hydrogen and carbon capture and storage. These projects will enable the supply industry to build new competencies and will create important activity and spin-offs going forward,” says Peggy Krantz-Underland, Equinor’s chief procurement officer. The Northern Lights project is the transport and storage part of Longship, the Norwegian Government’s full-scale carbon capture and storage project. Equinor is developing the project together with Shell and Total as equal partners. The procurement process for the onshore plant facilities is being performed in accordance with the Public Procurement Act (“Lov om Offentlige Anskaffelser”) and the Public Procurement Regulations (“Forskrift om offentlige anskaffelser”). In line with the requirements all the bidders in the competition were yesterday informed of the award decision and there is a standstill period that expires on 5 January 2021 when the onshore plant facilities contract will be signed. •
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13th OPEC and Non-OPEC Ministerial Meeting Concludes The 13th OPEC and non-OPEC Ministerial Meeting (ONOMM), held via videoconference, concluded on Tuesday, 5 January 2021. The Meeting, which reconvened following an initial round of discussions on 4 January, reaffirmed the continued commitment of the participating countries in the Declaration of Cooperation (DoC) to a stable market in the mutual interest of producing nations; the efficient, economic and secure supply to consumers; and a fair return on invested capital.
n addition, the Meeting recalled the decision taken by all DoC participating countries at the 10th (Extraordinary) ONOMM on 12 April 2020 to adjust downwards overall crude oil production, the unanimous decisions taken at the 11th ONOMM on 6 June 2020, and the outcomes of the 12th ONOMM on 3 December 2020. The Meeting highlighted the unprecedented events of 2020 and shocking impact of the COVID-19 pandemic on the world economy and markets, and commended the DoC participating countries for undertaking the largest and longest crude oil production adjustments in history in response to the exceptional challenges and market conditions caused by the pandemic. It pointed out that rising infections, the return of stricter lockdown measures and growing uncertainties have resulted in a more fragile economic recovery that is expected to carry over into 2021. The Meeting recognized that market sentiment has been buoyed recently by vaccine programmes and improved asset markets, but underscored the need for caution due to prevailing weak demand and poor refining margins, the high stock overhang and other underlying uncertainties. The Meeting acknowledged the need to gradually return 2 mb/d to the market, with the pace being determined according to market
conditions. It reconfirmed the decision made at the 12th ONOMM to increase production by 0.5 mb/d starting in January 2021, and adjusting the production reduction from 7.7 mb/d to 7.2 mb/d. The adjustments to the production level for February and March 2021 will be implemented as per the distribution detailed in the attached table. Production adjustments for April and subsequent months will be decided during the monthly ONOMM following the criteria
agreed upon in the 12th ONOMM. The Meeting reiterated the need to continue closely monitoring market fundamentals, including non-DoC supply and its impact on the global oil balance and overall market stability. The Meeting noted that high conformity levels have contributed significantly to market rebalancing and stability. Between May and November, participating OPEC and nonOPEC countries contributed to reducing the global supply by approximately 1.9 billion barrels, including voluntary adjustments, and this has been key to the rebalancing of the market. The Meeting drew attention to the exceptional year of 2020 as an outlier that distorts the latest five-year average of OECD commercial oil stock levels. It recommended retaining the 2015-2019 average as a more representative metric, while keeping the latest five-year average for the time being. Furthermore, the Meeting expressed appreciation to participating countries, particularly the United Arab Emirates (UAE) and Angola, which have performed beyond expectation. At the same time, it reiterated the critical importance of adhering to full conformity, and compensating the
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CONTINUED.. overproduced volumes in accordance with the statements of the 11th and 12th ONOMM, in order to achieve the objective of market rebalancing and avoid undue delay in the process. It requested all underperforming participating countries to submit their plans for implementation of the required compensation for the overproduced volumes to the OPEC Secretariat by 15 January 2021. The Meeting welcomed HE Dr Mohammad Alfares, Kuwait’s new Minister of Oil and Minister of Electricity and Water, and expressed its appreciation to his predecessor, Dr Khaled A. Al-Fadhel, for his dedication to the DoC process. The Meeting decided to hold the next Joint Ministerial Monitoring Committee (JMMC) Meeting on 3 February 2021, followed by a JMMC Meeting on 3 March 2021 and ONOMM on 4 March 2021. HE Mohammad Sanusi Barkindo said that the year 2020 marks the fifteenth Anniversary of the OPEC-China Energy Dialogue. Over the years, cooperation between OPEC and China has intensified across a range of fronts, particularly on the technical level. Multilateralism, international dialogue and cooperation among nations have become more essential than ever. These are the principles that underpin the OPEC-China Energy Dialogue. The Secretary General provided an overview of the actions taken by OPEC and the countries participating in the ‘Declaration of Cooperation’ in response to the unprecedented oil demand contraction due to the COVID-19 pandemic. He explained their subsequent modification at the 11th and 12th OPEC and non-OPEC Ministerial Meetings held in June and December. These decisions have been pivotal in preventing further volatility in an industry integral to the global economy. Ambassador Wang Qun stated that China will be one of the few major economies worldwide to experience economic growth in 2020 and the Permanent Mission of China in Vienna stands ready to contribute to the further enhancement of OPEC-Chinese relations. Experts from both sides shared and exchanged views on the impact of COVID-19 on the global energy market, the ‘Declaration’ and ‘Charter of Cooperation’, China’s energy security supply and energy transition. Both parties are committed to multilateralism and international dialogue to help overcome challenges in the market. Annual energy dialogue meetings will be held to facilitate an increase in the sharing of data, information and outlooks, especially on technological developments and implications. OPEC invited China to participate at the 8th OPEC International Seminar, under the theme ‘Towards an Inclusive Energy Transition.’ This invitation is extended to the NEA, as well as senior executives in Chinese energy companies. •
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SPE/IADC Virtual International Drilling Conference and Exhibition 08.03.2021 - 12.03.2021 Virtual http://www.drillingconference.org AntwerpXL 2021 10.03.2021 - 12.03.2021 Antwerp https://www.antwerpxl.com The 18th Asian Oil, Gas & Petrochemical Engineering Exhibition 08.06.2021 - 10.06.2021 Kuala Lumpur Convention Centre https://www.oilandgas-asia.com/ The 28th World Gas Conference (WGC 2021) 21.06.2021 - 25.06.2021 Daegu, Korea https://www.wgc2021.org/ ADIPEC 2021 08.11.2021 - 11.11.2021 Abu Dhabi, UAE https://www.adipec.com/ CIPPE Beijing March 30th - April 1st 2021 https://en.cippe.com.cn/ European Gas Virtual 2021 26 January 2021 - 28 January 2021 Virtual https://www.energycouncil.com/event-events/european-gas-conference/ 23rd World Petroleum Congress Dec 5-9th 2021 Houston, Texas, USA https://www.23wpchouston.com/ Offshore Technology Conference 16-19 Aug 2021 Houston, Texas, USA http://2020.otcnet.org/ The 28th World Gas Conference (WGC 2021) 21.06.2021 - 25.06.2021 130 Gongpyeong-dong, Jung-gu, Daegu, South Korea https://www.wgc2021.org/