Managing Compliance through the Project Lifecycle – Bureau Veritas by Global Business Media

SPECIAL REPORT

Managing Compliance Through the Project Lifecycle

Managing Compliance Through the Project Lifecycle Decommissioning in the Continental Offshore Shelf The Asset Integrity Challenge Digital Technology – Empowering Project Lifecycle Development Big Data – The Key to the Future of the Offshore Industry

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Introducing AIM Providing You with the Inside Knowledge Enhancing Your IT Environments Making the Most of Your Design Future Proofing Your Assets

Decommissioning in the Continental Offshore Shelf

Tom Cropper, Editor

The End of an Era Counting the Cost A Golden Opportunity Regulatory Issues Forming a Plan

The Asset Integrity Challenge 8 Jo Roth, Staff Writer

The Aging Oilfield Into the Depths Money Worries

Digital Technology – Empowering Project Lifecycle Development

James Butler, Staff Writer

A Tough Challenge Cutting Edge Technology

Big Data – The Key to the Future of the Offshore Industry

Tom Cropper, Editor

The Age of Big Data Predictive Analytics Making it Reality Machine Learning Cyber Crime

References 15

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SPECIAL REPORT: MANAGING COMPLIANCE THROUGH THE PROJECT LIFECYCLE

Foreword T

HE LIFECYCLE of an offshore project is

end of their lives, decommissioning will be a major

incredibly complex. From initial design to

issue with enormous costs and a spider’s web of legal

launch, operation and finally decommissioning, it

and compliance issues.

incurs huge costs and substantial risks. However,

Jo Roth will then look at the main issues surrounding

a new generation of technologies is improving

asset management. In a world in which operating

access to information and making it easier for

budgets are coming under strain and operators

operators to address all their lifecycle management

face enhanced regulatory scrutiny, effective asset

and compliance issues.

management is crucial for those companies looking

One of the most advanced is Veritas AIM which uses 3D modelling technology to provide real-time

to meet their obligations and ensure continued sustainable operations.

updates on the actual condition of equipment. It is

Finally, we’ll cast our eye to the future and one of the

helping offshore operators to reduce costs, improve

biggest trends impacting businesses of all kinds: Big

safety and extend asset lifespans.

data. Technology is increasing dramatically the amount

Later in this report James Butler will take another

of data companies collect and this could prove to be

look at the technology and see how this and other

a major bonus for the offshore sector. If companies

digital technologies are transforming the offshore

adopt the optimal strategy, big data could prove to

sector. The challenges of the future are immense,

be the next transformative piece of technology for the

but with good use of technologies, operators can

offshore sector.

increase the visibility of information and reduce their exposure to risks. Elsewhere, we’ll look at one of the big markets of the future – decommissioning. As oil fields reach the

Tom Cropper Editor

Tom Cropper has produced articles and reports on various aspects of global business over the past 15 years. He has also worked as a copywriter for some of the largest corporations in the world, including ING, KPMG and the World Wildlife Fund.

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SPECIAL REPORT: MANAGING COMPLIANCE THROUGH THE PROJECT LIFECYCLE

Managing Compliance Through the Project Lifecycle

Share your business challenges with us and let us help you manage compliance.

Bureau Veritas

STABLISHED IN 1828, Bureau Veritas is a global leader in testing, inspection and certification (TIC), delivering high-quality services to help clients meet the growing challenges of quality, safety, environmental protection and social responsibility. As a trusted partner to clients across the globe, the French-based professional services company offers expertise, advice and support that extends beyond ensuring simple compliance with regulations and standards, to advancing risk reduction, improving performance and promoting sustainable development. Recognised and accredited by major national and international organisations, Bureau Veritas works across a wide range of industries. This includes consumer products, property, commodities and oil and gas, using innovative tools and technologies to support clients in managing and meeting a wide and exhaustive range of industry compliances, standards and procedures.

Introducing AIM Recently, Bureau Veritas developed further support for ship owners and offshore operators in relation to the definition and deployment of Asset Integrity Management (AIM). New Bureau Veritas

VERISTAR AIM3D system assists companies to maximise the return on their assets whilst maintaining stakeholder value and minimising the business risks associated with accidents and loss of production. Expertly developed by a Bureau Veritas team of specialists, VERISTAR AIM3D delivers safety and reliability improvements, while optimising maintenance and inspection activities. VERISTAR AIM3D is a comprehensive and flexible asset integrity management software solution that includes the following features and functions: 1. Inspection, planning and scheduling, definition of scope of survey as well as area to be inspected. Definition of inspection strategy for improved inspection performance. 2. Inspection and measurement campaign preparation, survey findings collection and reporting, issuance of unscheduled inspection, repair or maintenance. 3. Anomaly management and marking on the 3D model for easy and future reference, allowing early identification of potential issues, hence minimising operation downtime. 4. 3 D visualisation of thickness/gauging measurement, inspection locations and automatic reporting.

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SPECIAL REPORT: MANAGING COMPLIANCE THROUGH THE PROJECT LIFECYCLE

In 2016, Bureau Veritas entered into an exciting partnership agreement with French multinational software company Dassault Systèmes

FLOATING STORAGE REGASIFICATION UNIT 3D MODEL

5. Hull condition assessment capability, coating and corrosion status review and forecasting of future corrosion. 6. Estimation of steel renewal and coating renewal if needed. Preparation for repair planning assessment. 7. Two-way data exchange with analysis and evaluation tools (structural analysis software and models, qualitative risk assessment tools and spreadsheets).

Providing You with the Inside Knowledge The support of Bureau Veritas Asset Integrity Management Services for hull life cycle management (the Bureau Veritas tool to simplify hull structural management during the lifetime of the vessel) provides inspection and maintenance decision makers with knowledge of the as-built structural condition of the hull. It also represents a reliable source of information – compiling all the data produced by previous inspections – and includes all necessary information pertaining to maintenance or modification already undertaken. In 2016, Bureau Veritas entered into an exciting partnership agreement with French multinational software company Dassault Systèmes, which specialises in the development of 3D design, 3D digital mock-up and product lifecycle management software. Working collaboratively, the partnership has developed the next generation Asset Integrity Management System for marine and offshore units, based on Dassault Systèmes 3D experience platform. Led by Bureau Veritas Marine and Offshore Operating Group, this new solution combines a digital twin of any marine or offshore assets with smart data in a collaborative environment. VERISTAR AIM3D is used in the design, development and implementation of the operational lifecycle, to reflect and predict the condition of any asset, or fleet of assets. This solution supports risk-based inspection and 4 | WWW.MULTIPLATFORMPUBLISHING.CO.UK

condition-based maintenance approaches. The innovative and smart tool provides asset management dashboards for individual ships, rigs or facilities - or for whole fleets. This enables smarter decisions based on better visibility of actual asset condition and performance. It can also reduce costs during operations and uses return of experience data to better inform design and construction, helping address the twin challenges of capital expenditure (CAPEX) and operational expenditure (OPEX). Commenting on the partnership, Paul Shrieve, Chief Executive Officer of Bureau Veritas North Sea Offshore Operations, Marine and Offshore Division, said: “This technology is taking the industry forward, connecting surveyors, drones, experts with data through mobile applications, cloud-based systems and enterprise software solutions, all to reduce risk and to improve safety and financial performance. “In an increasingly cost conscious industry, our priority is to support operators’ CAPEX and OPEX challenges while either raising or maintaining safety standards. Our VERISTAR AIM3D solution helps operators minimise risk and maximise return on their assets. And it means that assets can now be designed and operated using digital capability.”

Enhancing Your IT Environments With this solution Bureau Veritas is also addressing the challenge of fragmented IT environments. VERISTAR AIM3D is asset adaptive and, while offshore operators were originaly the primary market for the investment, the solution is suitable for operators and fleet managers of conventional ships, particularly if classification requirements, as well as ship management systems, are integrated. The VERISTAR AIM3D platform has been developed with potential different users in mind, with each unique user having their own role requirements and the smart technology solution matched with the ability to provide

SPECIAL REPORT: MANAGING COMPLIANCE THROUGH THE PROJECT LIFECYCLE

Share your business challenges with us and let us help you manage compliance. the relevant data in the most suitable device. There is no need to install new apps or software – a normal web browser allows the user to access the relevant information on the go at any time. When used to its full potential, VERISTAR AIM3D leads to a complete change in how inspection, maintenance and repair activities are prepared and reported. The data, presented in concise dashboards, is immediately available to all stakeholders accessing the asset VERISTAR AIM3D platform. This solution enables quick, real-time access to information, supporting wellinformed decision-making and the ability to take preventative measures and achieve cost savings.

Making the Most of Your Design Before construction, during the design stages, plan approval on 3D models can be carried out directly with designers. These can then be used throughout an asset life with the new service creating a reliable, single accurate source for better decision making about actual and future asset condition. Accumulated data across asset types and throughout their lifetime should also enable a combination of predictive responses and feedback into better designs. The individual 3D objects represent the actual structural and equipment items that are present in the physical asset. This includes hull structure plating, hull structure secondary stiffeners, primary members, manholes and hold hatches as well as optional items – means of access, piping, pumps and valves and sacrificial anodes. Alain Houard, VP, Marine & Offshore Industry, Dassault Systèmes said, “Bureau Veritas continues to deliver new products

and services that leverage digital technology to address operators’ safety, quality and reliability challenges. “The 3D Experience platform connects assets, data and people in a unified digital environment that enables Bureau Veritas to improve the asset integrity management experience for its customers.”

Future Proofing Your Assets This latest service offering from Bureau Veritas forms part of the forward thinking company’s digital transformation of its business and services. Future development of the solution, by collaboration between Bureau Veritas, Dassault Systèmes and customers, will help meet specific and evolving requirements in a perfect circle of continual improvement, feedback and refinement. The global company is continually identifying new ways to utilise the large data sets collected as a result of increased monitoring of assets, to enhance customer understanding and operation of their facilities. This approach allows operators to optimise and extend their operations to realise maximum value from their assets. Paul Shrieve added: “Moving ahead with digital technology has been part of the company’s growth plan for a number of years. We hope to introduce a wider range of compliance service technologies and best practice procedures across the whole project life cycle from concept to decommissioning. “Despite current market conditions, it is essential that we continue to invest in our industry and that is exactly what Bureau Veritas plans to do.”

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SPECIAL REPORT: MANAGING COMPLIANCE THROUGH THE PROJECT LIFECYCLE

Decommissioning in the Continental Offshore Shelf Tom Cropper, Editor Decommissioning offshore Infrastructure will be an enormous challenge. How can operators minimise the cost and maximise safety?

If the life of the European Continental Shelf is, indeed, coming to an end, it will spark the emergence of a new market for decommissioning – one which could be a major source of jobs and economic growth

HE TASK of successfully decommissioning offshore infrastructure on the European Continental Shelf is a major undertaking. For many years it has been ignored, and only recently has discussion truly picked up. The challenge for operators appears relatively simple to articulate: decommission infrastructure safely, efficiently and as affordably as possible. Doing so, though, is anything but.

The End of an Era The North Sea has been the powerhouse of Europe’s offshore oil production for many years. However, it now stands at a crossroads. In October, a new £5bn oil field was uncovered in the Moray Firth Basin. The Norwegian Energy Giant Statoil states that it could contain up to 130million barrels of oil1. It offers compelling evidence for those who believe the North Sea still has more to give. Even so, it is likely that much of the region’s potential will be left untapped as volatility in global oil prices makes offshore exploration and production a less commercial proposition. The move towards renewables will see emphasis on projects such as wind and wave power. As the Guardian put it in an article earlier this year, the industry is ‘in its death throes’, which is why thought is now turning to the issue of decommissioning2. This could present a major challenge.

Counting the Cost The cost of decommissioning rigs will be enormous. The UK’s Oil and Gas Authority has estimated the total cost of infrastructure decommissioning on the UK Continental Shelf at slightly less than GBP£60bn. However, it has also set what looks to be an incredibly ambitious goal of bringing that cost down. It hopes to see this work completed for less than £39bn a reduction of 35%3. It’s a big target and begs the question: how can it be done? 6 | WWW.MULTIPLATFORMPUBLISHING.CO.UK

The usual answer to this question in the offshore environment is technology. The latest innovations have helped the industry push into deeper areas which were previously out of reach, increase production and extend the life-expectancy of aging rigs, reduce accidents, eliminate spills and introduce efficiency savings which have allowed offshore operators to continue functioning in a low oil price market. Technology will have to play a major role in driving down costs – as will collaboration between partners – but to date this market has shown little sign of growth. The problem is that in the exploration and production world, technology delivers savings and revenue enhancements which quickly produce a return on investment. The same return is not immediately apparent when it comes to decommissioning. The purpose here is not to open up new oil reserves and to drive revenue – but to bring the life of oil production safely and economically to an end. The market, therefore, is nascent and it’s not easy to convince operators about the business value of any such investment.

A Golden Opportunity Decommissioning infrastructure in a way which ensures the safety of personnel and protects the environment should be seen as a major priority. It could also be seen as tremendous opportunity. Oil and Gas UK have suggested that £17bn could be spent on decommissioning in the North Sea between now and 20254. If the life of the European Continental Shelf is, indeed, coming to an end, it will spark the emergence of a new market for decommissioning – one which could be a major source of jobs and economic growth. To achieve this, though, the industry must make certain changes. The first is in its attitude. The approach to decommissioning has often been the same as exploration and production, but these are two very different operations – with their own goals

SPECIAL REPORT: MANAGING COMPLIANCE THROUGH THE PROJECT LIFECYCLE

Share your business challenges with us and let us help you manage compliance.

and performance metrics. Operators will have to adjust their mindset accordingly. They must adjust procurement and supply chain strategies to meet the demands of the decommissioning market. At the same time, they must encourage innovation and the development of a clear regulatory framework to set best practice guidelines for operators. The opportunities are very real. Scottish Enterprise believes that decommissioning activities in Scotland alone could be valued at between £8.3bn and £11.3bn over the course of the next ten years5. Furthermore, lessons learned here, could put companies in pole position to provide services and consultancy as growth opportunities open up around the world. No matter how long global offshore supplies last, therefore, the sector does still have one last grand act left. This will be a massive and global market. Older oil fields such as the North Sea, will lay the foundation of what is to come.

Regulatory Issues One of the most difficult issues will be how decommissioning is managed from a legal and regulatory perspective. Questions will need to be asked such as: •W hich state is responsible for the decommissioning? •H ow is the liability for costs spread between varying partners? • Who must form a decommissioning plan? Once the state responsible has been identified. Operators will need to be aware of the regulatory requirements for decommissioning in that country.

For example, in the UK stakeholders will have to familiarise themselves with the current status of the UK Oil and Gas Authority, the latest guidelines and stay up to date with future developments. They will also need to focus on issues surrounding the issuance of Section 29 Notices. These will be notices sent out by the Secretary of State in the UK to a number of different participants notifying them of their obligation to set out a decommissioning plan. Operators may also want to know how they can appeal if they believe liability has been unfairly apportioned. For example, if a company is a former owner of a site, could they still be liable to contribute to the decommissioning? Also, can a Section 29 notice be withdrawn, and can they appeal it?

Forming a Plan Once all these questions have been addressed, participants will have to turn their attention towards the formulation of a decommissioning plan, of which we’ll have more later in this Report. There are numerous issues to consider. The costs are enormous and, with no revenue at the end of it, companies will be tempted to do the bare minimum. However, doing so could be expensive. Effective use of technologies, innovation and partnerships can drive down costs and reduce exposure to regulatory issues. One way or another this is going to be a major issue over the next few decades. Just how big a challenge it becomes will depend on how successful players are in adjusting their attitude to cater to the decommissioning landscape.

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The Asset Integrity Challenge Jo Roth, Staff Writer From the Gulf of Mexico to the Middle East, asset integrity is a major challenge for offshore operators.

Equipment will have to withstand rough seas and extremely cold conditions. Reliability will be crucial. An accident so far from shore would be incredibly dangerous for personnel and the environment

HE OFFSHORE environment has always been challenging, but the future brings a host of issues which will place ever-greater strains on vessels and offshore structures. Equipment is aging, and operations are taking place in more demanding environments. At the same time, marine companies are coming under pressure from regulators and the public to improve safety and reduce the threat to the environment. In doing so, asset integrity, becomes critical.

The Aging Oilfield Age is an issue around the world. In the Middle East, asset integrity is becoming an increasingly important problem. Anupam Ghosal, newly appointed regional manager for Middle East and India, DNV GL – Oil & Gas, said: “Of the 700 to 800 fixed platforms and bridges in the region, we believe more than 70% are older than 25 years and some even exceed 40 years. The United Arab Emirates alone has about 4506.” In the North Sea, approximately 50% of the platforms have exceeded their 25-year operating lifecycle7. Given the harsh operating environment, the risk of failure is a very real danger. The HSE estimates that approximately half of incidents reported which involve significant containment loss have age as a contributing factor. While operators can make predictions about degradation and when components will require inspection, the undeniable truth is that predictions are difficult when conditions are so harsh and changeable. New technologies have increased significantly the life-expectancy and production life of oil fields. However, these push assets beyond their originally designed parameters – both in terms of their operational life and in the conditions they face. Enhanced recovery techniques inject water or chemicals into the wellhead, and can introduce infrastructure to stresses and strains which were not originally factored into the design process.

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Into the Depths Technology is also expanding the boundaries of exploration and production. Areas previously thought of as being unreachable, are now being explored. In March 2017, China launched its ultraDeep Water semi-submersible rig, Bluewhale l. Its sister rig, Bluewhale II, is due to be launched next year8. A report from Westwood Energy expects global deepwater spending to total $126.9bn between 2017 and 2021. The main focus will be Africa and the Americas, which will account for more than 70% of the total expenditure9. Operating at extreme depths will subject equipment to intense stresses and strains. Operators will have to deal with higher levels of pressure than ever before, corrosive elements and extreme temperatures. They will also be working at depths which make it difficult to monitor the condition or manage leaks if they occur. As well as the depth, exploration is pushing further from shore and into more hostile environments, which creates its own challenges. President Trump has given the green light to new drilling in Arctic waters10. Russia is also keen to exploit the potentially vast reserves which may lie in the Arctic Circle. A 2008 geological survey found that it may hold up to 90bn barrels of technically recoverable oil and 44bn barrels of natural gas liquids11. Exploring such areas would present enormous technical challenges. Equipment will have to withstand rough seas and extremely cold conditions. Reliability will be crucial. An accident so far from shore would be incredibly dangerous for personnel and the environment. Greenpeace has stated that it may be impossible to clean up an oil spill in the Arctic Ocean . Environmental considerations place a limit on expansion. In October, Chevron announced that it had shelved plans to drill in the Great Australian Bight – an area of immense potential, but with a valuable and fragile ecosystem13. BP also shelved plans of their own in 2016. The area has been likened to the Gulf of Mexico, which already

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has thousands of rigs in place, but an inability to entirely safeguard the environment keeps oil companies away. The impact of offshore operations on the environment is a major and growing issue. The world is moving towards ambitious carbon reduction goals and, as some of the heaviest polluters in the world, offshore drilling companies are coming under scrutiny. Fines are rising for spillages and new regulations are coming into force to improve performance. Compliance demands are increasing and drilling companies must work hard to stay abreast of their latest requirements. Doing so requires an evolution of attitude. Companies must adjust their thinking about asset integrity issues and make it a primary driver of business strategies. However, the industry is making progress. A report from Oil and Gas UK found that the industry is making headway in a number of ways14. Sharing and learning is more widespread, which helps reduce the variation in asset management. Lessons learned in the UK are being shared in seminars around the world. Engagement from all stakeholders and participation at board level is on the rise. Companies are developing asset integrity strategies and engaging the entire workforce from the CEOs to engineers on the ground. Performance monitoring measures are improving as the industry becomes collectively better at setting goals and achievable metrics.

Money Worries A final issue is cost, and this can prove to be both a driver and a threat. The recent volatility in the global oil price has had an impact on companies around the world. Jobs have been lost and plans scaled back. Even so, exploration continues and offshore companies must find a way of operating sustainably in the new environment. As such, they are more cost-sensitive than ever. This can create problems. A desire to cut corners was implicated in the Deepwater Horizon accident in the Gulf of Mexico and remains a serious cause for concern around the world. At the same time, it is driving innovation and development. Operators are keen to invest in technologies and innovations which can reduce their running costs and enable them to operate in a more cost-effective way. This creates an opportunity for businesses which can provide innovative software solutions. In many ways, though, there is nothing new in the industryâ€™s desire to protect assets. Operators have been searching for ways to improve safety and reliability ever since the first rigs set to sea. Whatâ€™s changing is the pressure they are under to protect lives and the environment, and to do so in a financially sustainable way. Technology is also coming to the fore which can deliver greater levels of insights than ever. These will be crucial in providing a clearer view of the status of equipment and helping operators to make better, more informed, decisions.

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Digital Technology – Empowering Project Lifecycle Development James Butler, Staff Writer The offshore industry faces a host of challenges over the coming years. Harnessing digital technology could prove to be a game changer.

The key to all of these issues is knowledge – understanding the current condition of equipment, monitoring degradation over time and establishing more accurate forecasts for how it will degrade in the future

OMPLIANCE AND asset management teams are the great unsung heroes of the offshore world. Praise is alien and blame all too common. When they do their jobs well, nobody notices, but when things go wrong the entire organisation comes down on their backs. As such, a good compliance management regime is like a good referee in sport. If they are doing their job well, nobody should notice they are there. However, the flip side is that companies can take them for granted, and let project lifecycle management slide. However, now is the time when it needs to be front and centre.

A Tough Challenge First it pays to reiterate what the sector is up against. The industry faces a collection of headwinds which are altering the landscape. The offshore environment is increasingly cost sensitive. The days of easy oil are long gone. In 2014, before the oil price collapsed, analysts were warning that offshore operators needed an oil price in the region of $100 per barrel in order to survive. Today though, the calculation has to be in the region of $50 or $60. In an uncertain economic world, operators must find a big step forward in efficiency. At the same time, the industry is coming under increased scrutiny. BP’s Gulf of Mexico disaster illustrated the dangers that stem from cutting corners with safety in order to save costs. Regulators have moved to tighten oversight and pressurise offshore operators to up their game. In many ways this has been an opportunity. It has forced the industry to take a long hard look at itself and address areas of poor performance and inefficiency. The good news is that smarter operators have uncovered plenty of room for growth and have found a way to prosper in this more challenging economic landscape. What sets the successful operators apart from the rest is their ability to identify areas of

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inefficiency and reduce operating costs as much as possible. Key areas include: •S upply chain management: More effective oversight of supply chains optimises processes, minimises waste and improves visibility of asset location. •A sset management: Improved data on the location and condition of equipment enables operators to optimise maintenance scheduling. •A sset lifespan: Improved monitoring of equipment helps avoid major problems and extend the life expectancy of equipment. Taking account of these factors can address some of the key costs threatening businesses including maintenance costs, disaster recovery and downtime. The key to all of these issues is knowledge – understanding the current condition of equipment, monitoring degradation over time and establishing more accurate forecasts for how it will degrade in the future. Delivering these insights is a new generation of digital technologies. BP have been one of the forerunners. Their ‘digital oil field’ strategy has seen them deploy 4D seismic technology, fibre connectivity, allowing swift communications between teams on and offshore, real-time wellhead monitoring and much more. They are pushing for a future in which infrastructure is connected and information is mobile – what they call the ‘connected upstream’15. Key to this, is the ‘internet of things’ (IoT). In the North Atlantic, Songa Offshore is using IoT technology to connect 6,000 assets, which harness vast quantities of data about every aspect of operations16. It enables them to gather information which would have previously been inaccessible or taken many manhours to collate and analyse. All that data can be then stored for analysis in a central hub. The challenge for operators is two-fold. First, they need to capture data. For that they need reliable sensors capable of delivering accurate

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real-time information and withstanding harsh offshore environments. Secondly, they need to analyse the data. This requires a secure central hub and a sophisticated piece of software capable of presenting the information in a clear and accessible way for all relevant parties.

Cutting Edge Technology A breakthrough piece of technology comes from Bureau Veritas and their VERISTAR AIM3D system, a digital asset management platform which allows real-time monitoring of assets via a clear digital 3D model. In a promotional video they claim it can cut maintenance costs by 25%17. It can be used throughout the lifecycle from design to inspection and change management. It creates a single source of information including details such as equipment data and inspection information. This can be transferred into a central system which can be accessed by key decision makers wherever they are based in the world. They have partnered with the Dassault Systèmes to incorporate its ground-breaking 3D modelling experience. This allows users to create a 3D model which offers a clear view of equipment status at every stage of the process from design to ongoing testing. Users benefit from a 3D model of their entire fleet, viewable from any angle, with all the latest information updated in real-time. The system gives operators the one thing they need: a completely up-to-date view of the true condition of an asset. They are not relying

on inaccurate predictions based on out-ofdate information. They see a clear image of the project’s status – what equipment needs inspection, where maintenance is required and any problems which may be looming further down the line. Armed with better and more up-to-date information, they can take a more proactive approach and review strategy based on the real condition of the project. They say it is possible to save up to 9,000 manhours every year and reduce unnecessary downtime and the risk of emergency repair. Using a secure online hub, they can improve the mobility of information, sharing key data between different members of the team. It saves time compiling reports, ensures all information is correct in real-time, and reduces the risk of duplication, confusion or data error. By delivering more information to remotely-based personnel, it can also reduce the need for on-site visits, which not only saves money but also reduces the risk of hazard. This and other digital technologies focus on increasing the visibility of information. By so doing, operators have better information at their fingertips and work on the basis of real-time information rather than predictions which may, or may not, prove to be accurate. The results will be better information, better decisions, increased safety and lower costs of operating. It’s a key weapon in the drive to ensure offshore operations remain safe and economically viable.

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Big Data – The Key to the Future of the Offshore Industry Tom Cropper, Editor The offshore industry must face some big challenges over the next few decades and big data could determine whether they meet them.

Companies are developing systems which can gather large quantities of data about an asset and use it to predict future developments

OW LONG will the world’s oil and gas reserves last? It’s a question the world has been asking itself for decades and the answer keeps shifting. Improved technology allows companies to increase yields from existing fields and tap sources which were previously out of reach, but this will only go so far. The future of offshore energy will depend on how much of the potential fossil fuel resources companies can reach, and whether they can do so in a commercially sustainable manner. Whether or not they can will depend on many things, but an increasingly vital factor appears to be the rise of big data.

The Age of Big Data The offshore industry is not alone in embracing big data. It is transforming industries of all kinds from retail to manufacturing and insurance, but it’s in the offshore sector that it can truly make its presence felt. The industry operates on increasingly fine margins, works in high-risk areas, and relies on thousands of pieces of equipment working well. Because of this demanding atmosphere, problems can have enormous consequences. Downtime can cost a company millions of pounds, and accidents can put lives in jeopardy. The industry has worked hard to improve its performance. To do so, they need to gain greater visibility of asset status, which is where big data comes into its own. An offshore operation generates vast quantities of information, but until now it has been impossible to capture and analyse every piece of data. The game-changer has been digital technology which has dramatically increased the amount of information companies are gathering. For example, a business can harvest information from vehicles, equipment tracking RFID tags and social media to deliver all sorts of insights into the 12 | WWW.MULTIPLATFORMPUBLISHING.CO.UK

status of their operations. Offshore companies, meanwhile, can use it to gain insights into the status of their business. They might be able to track flow rates, production levels, manage supply chains, track the location or condition of a part, schedule maintenance and monitor wear and tear. Pumps can analyse the content of oil. They may also be able to harvest information about employees. Digital technology makes it easier for people to see and share their medical information. In an offshore environment, where physical fitness is an important factor, operators can use that data to improve the healthcare of workers on board. It helps to identify problems before they arise and minimises the amount of time workers need off for illness or recuperation.

Predictive Analytics A key use for big data will be in predictive analytics. Companies are developing systems which can gather large quantities of data about an asset and use it to predict future developments. This is already being put to use in forecasting future maintenance requirements more accurately. It could also potentially be used to analyse customer demands and market sentiment. Companies can look at market data and buying behaviour to predict what their customers want even before they themselves know. One popular way of doing this is by taking an asset such as a gas turbine and mapping out a digital twin. This can be loaded with historical data to predict how it might behave. The real asset can then be compared with its digital twin to see how it might deviate from normal operations in the future. It’s an effective way of taking information and viewing it in a way which delivers real and lasting insights.

Making it Reality The challenge for the offshore industry is how to take this potential and make it reality. The

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good news is that technology exists to help this to be done – both from other industries and the consumer sector. Cloud computing will play an important role. This allows companies to store and process much larger quantities of data and analyse it on a real-time basis. This data can then be shared and viewed by multiple participants in disparate locations. For the offshore industry, in which operations routinely require input from multinational stakeholders, this can be highly beneficial. Teams can log in and see a single version of the truth which gathers data from multiple sources. Collaboration between remotely-based teams becomes much easier, reducing the need to be onsite. Operators can take tasks which once required engineers to physically travel to a location and move it to a remote onshore environment. This reduces operational cost as well as the inevitable risk to personnel.

Machine Learning Another important technology for the future will be artificial intelligence. 2017 has been the year of AI in almost every industry, but the technology remains in its early stages. It’s gaining rapid traction in the consumer market with products such as Amazon’s Alexa, Apple’s Siri and many others. Financial institutions are also turning to AI for customer services and fraud prevention. Chatbots can help customers with simple requests while AI algorithms can sort through vast quantities of information to identify trends and opportunities as well as potential threats. Here is why AI can be most helpful to the offshore sector. Oil and gas exploration can be an incredibly data rich process. It produces enormous amounts of data on all aspects of operations. Gathering and analysing this information is more than human data analysts can handle. However, AI systems using machine

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Companies will have to improve their awareness and introduce cyber security training for all employees

learning can process through the data spotting information which an individual might miss. Operations which would take a human operative hours or even days to complete can take minutes. If used correctly, this can realise opportunities which companies never knew existed, or reveal threats they would not have identified. Systems can be automated, flagging up alerts and adjusting maintenance plans.

Cyber Crime It all helps to drive down the cost of doing business, but there is of course, a fly in the ointment. Data mobility opens up opportunities, but it also creates vulnerabilities. With more data being stored in the cloud and widely shared, cyber criminals spot a tempting opportunity. Corporations of all kinds are being targeted and as they rush to take advantage of big data, not all of them take adequate care of their information. According to a report early in 2017, cybercrime cost the global economy $450bn18 in 2016. Companies will have to improve their awareness and introduce cyber security training for all employees. While technology is improving on both sides of the cyber security war, it is often individual error which creates the most problems. Helping people to understand the threats they

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face and what action they must take will be important in safeguarding systems. Operators will also need to establish an effective system to manage access. A survey from endpoint security company, Avetco, found that employees represented a major security threat to business19. Their study revealed that IT staff were the biggest threat, according to 22% of respondents, while disgruntled former employees and C-Suite professionals followed close behind. It is common for even relatively junior levels of staff to have access to highly sensitive information. Companies can also be slow at revoking access rights after an employee has left the company. Ensuring staff only have as much or as little access as they require – and that access rights are managed promptly after departure – will plug a major vulnerability. Big data represents the future, but can offshore companies make it work? That will be a key question for the future. For many it will involve a major shift – not just in terms of technology and infrastructure, but also in culture and attitude. Security will be a major issue. Cyber-crime is constantly evolving and it’s not easy to keep abreast of changes. Even so, the benefits far outweigh the challenges and the risks. With the right technology partners, offshore operators can open up a bright future.

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References: 1

New £5bn Oil Field Found in Moray Firth Basin: http://www.dailyrecord.co.uk/news/business-consumer/new-5billion-north-sea-oil-11311380

North Sea Oil is in Its Death-throes, but Has One Grand Act Left:

https://www.theguardian.com/commentisfree/2017/apr/08/north-sea-oil-death-throes-rigs-decommission-industry 3

UKCS Decommissioning Report:

https://www.ogauthority.co.uk/news-publications/publications/2017/ukcs-decommissioning-2017-cost-estimate-report/ 4

£17bn Due to be Spent on Decommissioning:

https://www.eveningexpress.co.uk/news/scotland/17bn-forecast-to-be-spent-on-decommissioning-in-uk-north-sea-by-2025/ 5

Decommissioning Action Plan: https://www.scottish-enterprise.com/knowledge-hub/articles/publication/oil-gas-decommissioning-action-plan

Asset Integrity in the Middle East: http://www.offshore-mag.com/articles/2015/11/offshore-asset-integrity-a-growing-issue-in-the-middle-east.html

Further Information on Aging Oil Fields: http://www.hse.gov.uk/offshore/ageing/background.htm

China Launches Ultra Deep-Water Rig: http://www.offshoreenergytoday.com/china-launches-ultra-deepwater-semi-sub-rig-bluewhale-i/

Deepwater Project Sanctions on the Rise: http://www.offshore-mag.com/articles/2017/10/deepwater-project-sanctions-on-the-rise-report-finds.html

Trump Administration Greenlights New Drilling: http://www.huffingtonpost.co.uk/entry/spy-island-arctic-drilling_us_5a1dd740e4b0d724fed450bb

Petroleum Exploration in the Arctic: https://en.wikipedia.org/wiki/Petroleum_exploration_in_the_Arctic

Why Cleaning up an Arctic Oil Spill Would be Impossible: http://www.greenpeace.org/usa/cleaning-arctic-oil-spill-impossible/

Chevron Abandons Plans to Drill in Great Australia Bight:

https://www.theguardian.com/environment/2017/oct/13/chevron-abandons-plan-to-drill-for-oil-in-great-australian-bight 14

Asset Integrity: A Progress Report: https://oilandgasuk.co.uk/wp-content/uploads/2015/05/HS056.pdf

BP Digital Technology: https://www.bp.com/en/global/corporate/what-we-do/technology/digital-innovation.html

How IoT is Helping this Driller Gain Efficiencies: http://www.zdnet.com/article/iot-helping-offshore-driller-gain-efficiencies/

Veristar AIM: https://www.youtube.com/watch?v=tVtUIOCS4oc

Cyber Crime Could Cost Global Economy Billions: https://www.cnbc.com/2017/02/07/cybercrime-costs-the-global-economy-450-billion-ceo.html

Disgruntled Employees and IT Professionals are Top Security Risks:

https://www.avecto.com/news-and-events/news/disgruntled-employees-and-it-admins-are-top-security-threats-to-the-enterprise

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Notes:

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Bureau Veritas optimise inspection and maintenance costs with a new generation Asset Integrity Management Solution.

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