OGV Energy-Issue 86 - International Growth

NOVEMBER 2024 - ISSUE 86

INTERNATIONAL GROWTH GLOBAL ENERGY NEWS ENERGY PROJECTS MAP INTERNATIONAL GROWTH LEGAL

Vulcan Completion Products Expands in Asia with New Kuala Lumpur Office

RENEWABLES CONTRACT AWARDS

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DECOMMISSIONING STATS & ANALYTICS EVENTS

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VULCAN

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TWMA

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ENERQUIP

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EIC PROJECT MAP

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ROTECH

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DRÄGER

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NEWLAND OILTOOLS

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ELEMENTAL ENERGIES

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THREE60 ENERGY

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OCEANEERING

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PETRASCO | KCI

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J+S SUBSEA

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A WORD FROM OUR EDITOR Welcome to the November edition of ‘OGV Energy Magazine’ where this month we are very excited to once again be attending ADIPEC in Abu Dhabi - the world's largest energy conference and exhibition and with this in mind, this month we are rightly exploring the theme of ‘International Growth’ and championing the supply chain businesses who are increasing their footprint in new global markets.

A big thank you to our front cover partner Vulcan Completion Products and you can read all about the launch of their brand new office in Kuala Lumpur on pages 4-5 inside.

We are also delighted to welcome contributions from GDI, Petrasco Energy Logistics, TWMA, Newland Oil Tools, Rotech, Elemental Energy, KCI, Westerton Access, The Impulse Group, Drager, THREE60 Energy, J&S Subsea, Kent, Brodies and ABB. The rest of this month’s magazine as always provides you with a review of the Energy sector in the North Sea, Europe, Middle East and the US, along with industry analysis and project updates from Westwood Global Energy Group, the EIC and Renewables UK.

Warm regards, Dan Hyland - Director

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COVER FEATURE

Vulcan Completion Products Expands in Asia with New Kuala Lumpur Office Global oil and gas completions specialist, Vulcan Completion Products, has strengthened its presence in the Asia-Pacific (APAC) region by relocating to a significantly larger office in Kuala Lumpur.

T

he move, which quadruples the size of the company’s original office just a few months since its initial opening, reflects Vulcan’s growing influence in and commitment to increasing its reach in Asia and Australia.

The boosted Kuala Lumpur office now houses four full-time employees, with three additional team members based in Indonesia and Vietnam, all working to serve a growing number of customers across the APAC market.

Far from resting on their laurels, the team is now seeking to expand Vulcan’s corporate horizons even further and has set its sights on onshore and offshore growth in Africa. Here, from Guinea-Bissau, Kenya to Sth. Africa are among the countries where significant inroads are being made in growing Vulcan’s presence thanks to the securing of a clutch of key contracts.

Malaysia, which joined Vulcan’s global network earlier this year, has quickly become an important hub for fostering client relationships and deepening the company’s foothold in the region as well as becoming an essential contributor to overall company growth.

Supporting this brisk international growth across the board is Vulcan’s newly established ISO9001-accredited research and development hub at its global headquarters in Westhill, Aberdeenshire. The eight-strong R&D team based there is awash with more than 140 years combined experience and is focused on innovation, enabling Vulcan to continue leading the market with new products and technological advancements.

Since 2023, Vulcan has expanded its workforce by 50%, and now employs over 30 people across key international locations including the UK, US, Dubai, Baku, Saudi Arabia, Vietnam and Jakarta.

Recent investment in well design software ensures the perfect marriage of experience and resources to offer a bespoke service which is unparalleled, and 57 worldwide patents mark Vulcan’s products out as truly

www.ogv.energy I November 2024

unique, trailblazing solutions in a class of their own.

Ian Kirk of Vulcan Completion Products commented on the Kuala Lumpur expansion: “The APAC region has always been a key market for us, and its future potential is undeniable. Moving to a larger office in Kuala Lumpur positions us well for continued growth, and we’re eager to leverage this new space as a launchpad for further expansion in this exciting part of the world.”

Vulcan Completion Products (VCP) draws on more than 200 years of combined industry experience to offer bespoke, innovative, and ground-breaking solutions.

From centralisation, reamer, and guide shoes to float equipment, cement plugs, collars, and cable protectors VCP has an unmatched record of success, with the emphasis firmly on being a quality service provider who consistently exceeds client expectations. 

COVER FEATURE

To find out more about Vulcan Completion Products, visit www.vulcan-cp.com email Sales@Vulcan-CP.com or visit stand #CN23 at ADIPEC in Abu Dhabi, UAE from November 4-7, 2024.

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UK North Sea

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“Aberdeen's entrepreneurial and innovative energy businesses have the people, the experience, the skills, and the business knowhow in leading the energy transition worldwide,” Yuill and Allard said.

The future of Great British Energy and prospects of the offshore industry in the UK’s changing fiscal environment were key themes in the UK North Sea industry in the past month.

Offshore Energies UK, the leading trade body, also welcomed the announcement that GB Energy will be located in Aberdeen.

“The city has been Europe’s energy capital for the last fifty years and with the right energy policies in place to back firms and their workers, it can continue to spearhead the UK’s homegrown energy transition,” OEUK said.

David Whitehouse, CEO Offshore Energies UK commented: “Aberdeen is an energy powerhouse and home to brilliant British engineering. It must and should be part of the UK’s energy future. The people of this city are rightly proud of their energy heritage and it’s imperative GB Energy helps to safeguard their jobs and build on their world class expertise to benefit the whole UK.” At OEUK’s Annual Conference in September, CEO Whitehouse said that the offshore industry needs long term planning and stability.

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reat British Energy (GB Energy) will be based in Aberdeen, the UK government announced at the end of September.

Aberdeen City Council Co-Leaders, Councillors Ian Yuill and Christian Allard, commented, “As the energy capital of Europe, Aberdeen is best placed in Scotland to be home to the UK Government’s GB Energy headquarters.

Aberdeen has been a magnet for energy investments for decades and the city has already established itself as a renewables hub with businesses investing in offshore wind and green hydrogen.”

GB Energy’s base in Aberdeen will help secure future investments in the sector and will help confirm Aberdeen as the Net Zero Capital of Europe.

www.ogv.energy I November 2024

“The North Sea, its people, skills, and companies, are a strength and remain a vital part of our energy ecosystem. Our world class supply chain companies use the revenue from oil and gas activity to invest in our energy future. A homegrown energy future,” Whitehouse noted.

operator improvements such as modifying power systems used to extract oil and gas from reservoirs deep under the seabed, or introducing new systems to capture unused gas under pressure that was previously burned off for safety reasons.

Emissions from these so-called flaring and venting processes have also fallen by more than half in the past five years.

Assessments by OEUK also showed the North Sea still has the potential to unlock the equivalent of 13.5 billion barrels of domestic oil and gas.

“Oil and gas will remain essential for decades to come. It is better from all points of view – financial, environmental and social that energy comes from our own homegrown North Sea supplies,” said Mark Wilson, HSE & Operations Director at OEUK. At OEUK’s Wells Conference in early October, Wilson warned of the widening gap between UK energy production and consumption.

The UK is producing less energy than ever before – the equivalent to only 60 percent of demand, Wilson said.

Well drilling activity has also significantly reduced, dipping by nearly 60 percent in the last ten years as oil and gas reserves have declined, but also as a consequence of lack of investment, according to OEUK. “As the UK’s oil and gas production declines, the chasm between the energy we create and the energy we consume grows,” Wilson said.

The UK oil and gas industry has more than halved methane emissions since 2018 and reduced overall emissions associated with the production of oil and gas by 28 percent in the same time frame, new figures in OEUK’s 2024 Emissions Reduction Report showed.

“The government acknowledges that we need oil and gas for decades to come. We must mind the gap between the UK’s energy consumption and falling levels of production, or risk becoming more reliant on imports than ever before.”

This reduction means the UK will achieve targets agreed with the government for methane reduction seven years ahead of the 2030 deadline and exceed the 25-percent reduction target for production emissions four years ahead of schedule.

Added Wilson, “The UK, its politicians, people, and businesses must be conscious of this energy gap and the implications it has for our energy security, economy, supply chain and skills.”

OEUK analysis shows that almost 70 percent of the reductions have been achieved through

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Stuart Payne, chief executive of the North Sea Transition Authority (NSTA), told OEUK’s annual conference in Aberdeen the oil and

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gas industry can rise to the challenges posed by the energy transition and make the North Sea’s next chapter its best chapter. Payne also urged industry to maintain a sharp focus on the basics: safety, emissions cuts, timely well decommissioning, and greater diversity. This could help the industry to get the energy transition right and “the UK can be a shining example of how to transition an oil and gas province into a clean energy super basin,” Payne added.

The NSTA has published new guidance to help multi-million-pound transactions complete more smoothly. The regulator has finalised a set of recommended principles and practices which will encourage buyers, sellers, and interested third parties to work together to ensure that transactions go through quickly and the full potential of the North Sea is met.

The guidance has been created to help industry minimise transaction delays which increase costs, prolong uncertainty, hold up operational and strategic decisions, damage trust and working relationships among companies working in the Basin, and erect real barriers to investment, the regulator said.

The NSTA and The Crown Estate have published a new Statement of Intent to confirm joint aspirations in ensuring a more sustainable and closely co-ordinated management of the seabed.

The statement of intent is aimed at building on close collaboration to date and now proactively share data between the two organisations, where possible. While not legally binding, this agreement represents a shared commitment to fostering sustainable marine development and supporting the UK's energy transition, the NSTA said.

“This will enable marine development and support a co-ordinated approach to the leasing and licensing of carbon storage, helping to make the UK a worldleading destination for CCUS project investment and the supply chain,” the regulator noted.

The UK North Sea’s oil and gas future hangs in the balance amid the recent ad hoc changes in fiscal policy, energy consultancy Wood Mackenzie said in an analysis in October.

The UK government must implement, as soon as possible, a more predictable tax regime that provides greater long-term stability to the North Sea oil and gas sector, the analysis found.

Despite recognizing that oil and gas will be needed for decades to come, the UK government’s recent and proposed modifications to the Energy Profits Levy (EPL) – currently set to end in 2030 – have created “unparalleled sector uncertainty and consternation”, the report states.

“North Sea oil and gas operators are trying to make long-term financial decisions beyond 2030, but the current fiscal regime does not allow for such clarity,” said Graham Kellas, Senior Vice President, Global Fiscal Research at Wood Mackenzie.

“Price responsiveness, predictability, fairness, simplicity and transparency must all be considered to ensure the correct outcome is reached at what is a crucial juncture for the sector.”

In company news, Eni completed in early October

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the combination of substantially all of its upstream assets in the UK, excluding East Irish Sea assets and CCUS activities, with Ithaca Energy plc.

The merger reaffirms the commitment of Eni in the UK, where it is engaged across the entire energy value chain, including upstream oil and gas, renewables, CCS projects, and potential future development of magnetic fusion projects.

“Following the Combination, Eni is a fully committed, long-term and supportive shareholder of Ithaca, that is now positioned as the largest resource holder in the UK North Sea with a diversified portfolio of production and development opportunities, that has the ability to underpin material long-term organic growth, delivering the oil and gas essential for energy security while supporting the UK’s decarbonisation targets,” the Italian company said.

Deltic Energy recognised an impairment of £18.0 million for the first half of 2024, resulting from the decision to notify the partners of Licence P2252 of the company’s intention to withdraw from the Pensacola licence.

In the outlook for the near term, Deltic said that it continues to engage in and support industry lobbying efforts, and “it is hoped that the new Government's first budget will provide an element of clarity and much needed stability if the UK oil and gas industry is to avoid an accelerated decline.”

The fact that we are in the second half of the year and Selene is the first exploration well to be drilled in the UKCS clearly demonstrates the impact that political and fiscal instability has had on levels of activity and investment, Deltic said.

“Therefore, until further clarity exists Deltic intends to limit further investment in its UK portfolio (other than Selene) and will look to pursue opportunities overseas in jurisdictions that are more favourable and supportive of the oil and gas industry,” the company added.

At the beginning of October, Serica Energy plc confirmed that the B6 well on the Bittern field, which commenced initial flowback to the Triton FPSO on 11 September, is now producing at a stable rate.

The well is producing oil and gas at a combined gross rate of around 8,000 boepd, a total of around 5,200 boepd net to Serica.

Meanwhile, drilling and completion activities on Serica’s 100-percent held Gannet GE-05 well have now concluded. Data collected during drilling have shown encouraging results, and production is expected to commence around the start of November, the company said. The COSL Innovator rig is now moving to drill the next well in the campaign, on the Guillemot NW field, in which Serica has a 10-percent interest. 

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Europe Energy Review

By Tsvetana Paraskova

Oil & Gas

Exploration activity, discoveries, and project advancement offshore Norway, the UK’s clean energy strategy and policy, and milestones in renewable projects featured in Europe’s energy market over the past month.

In Norway, the Norwegian Offshore Directorate said that it believes new innovations within hydraulic fracturing should lead to the development of more discoveries in tight reservoirs. The Directorate is now challenging the industry to have a go at one of the largest puzzles of all – the Victoria discovery in the Norwegian Sea. At the time when it was discovered and explored in the 2000s, existing technology indicated it would be challenging to develop.

With the advances in fracking in recent years, the Norwegian regulator is now challenging operators to take a new look at the Victoria discovery.

“This is one of the largest remaining gas discoveries on the Norwegian continental shelf (NCS) that is still not covered under a production licence,” said Arne Jacobsen, Assistant director of Technology, analyses and coexistence at the Norwegian Offshore Directorate.

“This is acreage that the companies can apply for in the next APA (Awards in Predefined Areas). Previous work on the discovery has shown around 140 billion standard cubic metres of gas in place, and the study reveals that four wells could yield production of 29 billion cubic metres.”

Exploration activity offshore Norway has been profitable in all areas in the shelf over the past two decades, an analysis by the Norwegian Offshore Directorate showed.

www.ogv.energy I November 2024

The directorate has found that the discoveries are valued at three times the costs expended.

Moreover, all exploration investments between 2004 and 2023 have already been repaid by the discoveries that have come on stream. About 50 of 190 discoveries have been developed and are producing oil and gas.

“This means that around three-quarters of the resources discovered during these years have yet to be produced. These investments will remain profitable as more fields come on stream,” the directorate said.

Continued exploration offshore Norway is necessary for a sustained production in the long term, the regulator noted. Large discoveries contribute the most to value creation, but are also crucial for establishing new infrastructure in new areas that makes it possible to develop smaller discoveries, according to the directorate.

Norwegian oil and gas operator DNO ASA has confirmed the size of the pay-opening Heisenberg oil and gas discovery in the Norwegian North Sea made in 2023.

After completing in late September 2024 the second well delineating the discovery, DNO said that the well encountered a six-meter oil-filled Eocene sandstone reservoir. The well confirmed the Heisenberg volume estimate of 24 to 56 million barrels of oil equivalent (MMboe) with mean of 37 MMboe.

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The license partnership, which in addition to DNO Norge AS (49 percent) includes operator Equinor Energy AS, is studying a tieback of Heisenberg to nearby infrastructure, potentially jointly coordinated with the development of other recent discoveries in this highly prolific area surrounding the Troll and Gjøa production hubs.

Equinor has announced that the floating production, storage and offloading vessel (FPSO) is now securely anchored on the Johan Castberg field in the Barents Sea. The FPSO is now being hooked-up to the subsea facilities, preparing it for production start-up towards the end of the year.

Johan Castberg, with estimated recoverable volumes of between 450 and 650 million barrels, is expected to produce for 30 years, and at its peak, the field may produce 220,000 barrels per day.

Eni, which secured UK government funding for Liverpool Bay CO₂ Transport and Storage Project, a significant milestone in the development of the HyNet CCS project, said that the allocation of funding marks the launch of the UK’s CCS industry.

The funding includes investment for Track 1 industrial emitters and is a key milestone towards the execution phase of HyNet, which will unlock significant investment in the area.

“HyNet will become one of the first lowcarbon clusters in the world and the project will decarbonise one of the key energyintensive industrial districts as well as unlock significant economic growth in this region of the UK,” Eni CEO Claudio Descalzi said.

“This commitment is clear evidence of how governments "HyNet will become and industry can work one of the first lowtogether to implement carbon clusters in the pragmatic and effective industrial policies, in world and the project will order to accelerate decarbonise one of the key decarbonisation.” energy-intensive industrial

districts as well as unlock significant economic growth in this region of the UK,”

Aker Solutions has been awarded a sizeable EPCIC contract by Equinor to prepare the topside of Troll A for accelerating production from the Troll West gas reservoir in the Troll Phase 3 stage.

The Troll field in the North Sea is Norway’s largest gas producer, supplying 10 percent of Europe’s total gas needs. Troll Phase 3 involves producing the gas cap overlying the oil column in Troll West, while also continuing the production of oil.

Low-Carbon Energy The UK government confirmed in early October up to £21.7 billion of funding available, over 25 years, to make the UK an early leader in two growing global sectors, CCUS and hydrogen, to be allocated between these two clusters.

The government confirmed the funding to launch the UK’s first carbon capture sites.

The UK will be among the first to deploy CCUS technology at scale in Teesside and Merseyside – capturing CO2 emissions before they reach the atmosphere and storing them away safely.

The projects are expected to create thousands of jobs, attract £8 billion of private investment, and accelerate the UK towards net zero in 2050, the government said.

Eni, Equinor, and bp will be among the first beneficiaries of funding for these projects as they are developing the CCUS hubs.

“This announcement represents another step forward for the Northern Endurance Partnership and East Coast Cluster,” said Louise Kingham, SVP Europe and head of country, UK for bp.

The UK is sitting on a £12 billion a year investment opportunity to develop offshore wind, with a highly skilled domestic workforce and world-class engineering capability to win wind energy development work abroad, offshore industry body OEUK says.

Currently, OEUK members are building 13 GW of the government’s production target of 55 GW of wind energy by 2030, Offshore Energies UK director Katy Heidenreich said at the 2024 Celtic Sea FLOW (Floating Offshore Wind) summit. The UK offshore wind sector needs to pull together investors and businesses with the capacity to make this ambitious energy production target a reality, Heidenreich added.

RenewableUK Cymru is calling on the Welsh Government to take urgent action to expedite decision-making, following news that three onshore wind farms with a combined capacity of over 200 MW have been delayed yet again.

Norway’s energy major Equinor has bought 9.8% of Denmark-based Ørsted, the world’s biggest offshore wind farm developer. Equinor thus becomes Ørsted’s second largest shareholder after the Danish State, which holds a controlling stake in the company.

SSE now expects the completion of Dogger Bank A offshore wind farm in the second half of calendar year 2025, later than the previously guided first half 2025, the company said in a trading update in early October.

“Whilst completion of Dogger Bank A offshore wind farm is now expected in the second half of calendar year 2025, project returns are not expected to be materially impacted,” SSE noted.

Octopus Energy’s generation arm has announced plans to invest £2 billion into UK clean energy projects by 2030 in a

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move to help turbocharge the UK’s green energy revolution.

Octopus seals the deal on four new solar farms being developed by BayWa r.e. in Bristol, Essex, East Riding of Yorkshire, and Wiltshire. The solar projects will have a combined capacity of 222 MW, in addition to a 30 MW battery located on one of the sites.

With the latest additions, Octopus now backs 16 onshore wind farms, 3 offshore wind farms, 3 battery projects, 138 solar farms, and thousands of rooftop solar projects in Britain, the company said.

Germany-based RWE, which is the UK’s leading power generator, has announced the start of construction of a further four of its solar projects in the UK. It brings the total number to 11, and marks another step in the growth of the company’s renewable energy footprint in the UK. The Menter Môn-led Marine Characterisation Research Project (MCRP) has said that Natural Resources Wales successfully completed the environmental plan for the Anglesey tidal energy project. Menter Môn Morlais Ltd owns and manages Morlais, including the recently completed landfall substation on the outskirts of Holyhead. It also holds the Marine Licence, which means they are legally responsible for the project. The first tidal energy devices will be deployed in the sea in 2026. The project is funded through the Crown Estate and Nuclear Decommissioning Authority.

Statera Energy has submitted plans for the UK’s first utility-scale green hydrogen project to be built in Aberdeenshire. Kintore Hydrogen will help balance a renewables-led power system by using surplus renewable energy to produce green hydrogen. Once constructed, Kintore Hydrogen will be the largest project of its kind in Europe. The first 500 MW of operational capacity is expected to be online by 2028, and when operating at its full, 3 GW capacity Kintore Hydrogen could save up to 1.4 million tonnes of CO2 per year.

Equinor has announced that the world’s first cross-border CO2 transport and storage facility has been completed and is ready to receive and store CO2. In late September, the Northern Lights CO2 transport and storage facility was officially opened in Øygarden, near Bergen. The Northern Lights facility is a joint venture between Equinor, Shell, and TotalEnergies.

The full-scale project includes capture of CO2 from industrial sources and shipping of liquid CO2 to the terminal in Øygarden. From there, the liquefied CO2 will be transported by pipeline to the offshore storage location below the seabed in the North Sea, for safe and permanent storage. 

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USA

Energy Review

By Tsvetana Paraskova

Higher Uncertainty, Lower Activity

US oil and gas activity has slowed in recent months as the outlook on international oil and gas prices becomes increasingly uncertain while the upcoming US presidential election is also raising uncertainty among American energy producers. .

Oil and gas sector activity in Texas, northern Louisiana, and southern New Mexico fell slightly in the third quarter of 2024, according to the latest quarterly Dallas Fed Energy Survey of company executives.

The business activity index, the survey’s broadest measure of the conditions energy firms face in the area, slumped from 12.5 in the second quarter to -5.9 in the third quarter. The business activity index was 0 for exploration and production (E&P) firms compared with -18.1 for services firms, suggesting activity was unchanged for E&P firms but declined for service firms, the survey found.

In terms of production, the oil production index increased from 1.1 in the second quarter to 7.9 in the third quarter, suggesting oil production slightly rose during the quarter.

But the natural gas production index fell from 2.3 to -13.3, suggesting natural gas production decreased in the quarter.

Costs for companies continued to increase, but at a slower pace compared to the previous quarter, according to the survey.

The company outlook index turned negative in Q3, plunging by 22 points to -12.1, suggesting that firms are now modestly pessimistic about their future business. Uncertainty soared, with the overall outlook uncertainty index jumping by 25 points to 48.6.

On average, company executives polled in the survey expect a West Texas Intermediate (WTI) oil price of $73 per barrel at year-end 2024, with responses ranging from $55 to $100 a barrel. Longer-term expectations point to average forecasts of a WTI oil price of $81 per barrel two years from now and $87 per barrel five years from now.

Survey participants expect the US benchmark natural gas price Henry Hub to rise from current levels, expecting $2.62 per million British thermal units (MMBtu) at year-end, $3.24 per MMBtu two years from now, and $3.89 per MMBtu five years from now. For reference, WTI spot prices averaged $70.82 per barrel and Henry Hub spot prices averaged $2.23 per MMBtu during the survey collection period, 11-19 September.

The low prices for natural gas in the Permian, at the Waha hub, are weighing on gas production and plans for future drilling, according to respondents in the survey.

Most companies, or a total of 80 percent of executives, said they are not planning to ramp up well completion activities in the Permian Basin once the natural gas pipeline bottleneck clears. The remaining 20 percent said their firm plans to do so.

There are no bottlenecks in crude pipelines, executives said. A total of 92 percent of executives do not expect their firm’s crude oil production to be limited between now and the end of 2026 due to crude oil pipeline capacity constraints in the Permian. Only 8 percent said that they expect constrained production.

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Challenges to Electrification of Oilfield Operations in the Permian Electrification of oilfield operations has gathered momentum as companies look to cut emissions from operations and diesel use. Eighteen percent of executives said their firm’s oilfield operations are already fully electrified. Another 6 percent of executives said they aim to completely electrify oilfield operations for their firm, and an additional 31 percent said they expect to partially electrify operations. The remaining 45 percent said they do not plan to do so.

However, companies face challenges in electrifying their oilfield operations.

Among firms focused on the Permian and aiming to electrify oilfield operations, or that have already done so, the top selected challenge was “uncertainty about future access to the grid” (29 percent). Among firms primarily focused outside the Permian, the top selected challenge was “too expensive” (30 percent), followed by “lead times for equipment” (26 percent).

Among respondents not looking to electrify, the most-cited response was “too expensive” (48 percent), followed by both “uncertainty about future grid stability” and “other,” which were each selected by 17 percent of respondents.

the election uncertainty and the anticipated impact on the overall market.”

An oilfield services firm executive said that “The consolidation and shutting down of oilfield service firms will hurt the ability of the U.S. to ramp up in the face of international supply disruptions.”

Lower Natural Gas Prices Hit US Oil Producers Lower natural gas prices in the US in early 2024 weighed on the cash flows from operations of the oil-focused public companies, according to an analysis of the financial results for 36 publicly traded US oil exploration and production (E&P) companies by the US Energy Information Administration (EIA).

In the first quarter of 2024, lower crude oil and natural gas prices reduced cash from operations for these companies by 12 percent compared with the first quarter of 2023, to $23.3 billion. Although West Texas Intermediate crude oil prices fell by 2 percent over this period, US crude oil production by these companies rose by 5 percent to nearly 4.2 million barrels per day (bpd), the EIA said.

Natural gas prices slumped by 26 percent from the first quarter of 2023 to the first quarter of 2024 and reached their lowest average monthly inflation-adjusted price since at least 1997.

“Most of our rigs are capable of running off Although the companies in the analysis grid power, but the logistical (regulatory and focus on crude oil production, natural gas permitting) hurdles that our customers have still typically makes up around to go through to bring power to the rig is 30 percent of what they formidable and expensive,” an executive "Mergers and at an oil and gas service firm said in acquisitions in the US comments to the survey’s special question on electrification. oil and gas industry

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produce because of associated natural gas present in crude oil deposits and more diversified operations by some of the E&P companies in the group, according to the administration.

API Poll Shows Swing State Voters Want Answers on Energy Policy In early October, a month ahead of the presidential election, the American Petroleum Institute (API) released new polling showing nearly 9 in 10 voters in key battleground states are looking for details from presidential candidates on energy issues.

The poll conducted by Morning Consult for API also found that 9 in 10 battleground state voters are concerned about inflation and more than 4 in 5 voters agree producing more oil and natural gas in the US could help lower energy costs for American consumers.

Battleground state voters see the domestic production of natural gas and oil in the United States as a positive influence on American energy independence and national security.

Moreover, a bipartisan majority of voters oppose government mandates that would ban gas stoves, gas furnaces, or new gasoline, diesel and hybrid vehicles, the poll showed.

Finally, 9 in 10 voters agree producing oil and natural gas in the US makes the country more secure against actions by countries such as China and Russia. 

continued their momentum

Another executive at an oilfield in the second quarter as services firm said, “To add the pressure grew on some additional costs to electrify producers to boost equipment, the returns have scale and production to to be there through higher compete with peers." prices or reduced costs. That is not the case in our segment.”

Additional comments also signalled that suppliers are not manufacturing electrical options for many types of machinery being used in drilling and well services.

The general comments of the survey respondents continue to reflect frustration with the current US policies in the sector and increased uncertainty about domestic politics and geopolitical developments.

“Recent volatility has started to impact planning discussions for 2025. We have not adjusted our plan yet, but we are starting to work on potential drilling plans for a lower commodity environment,” one E&P company executive said.

Another one noted, “There is greater uncertainty surrounding the economy and the oil market. Much of this has to do with

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MIDDLE EAST Energy Review

By Tsvetana Paraskova

lot of spare capacity right now. This capacity could offset the potential loss of oil supply from Iran.

After months of simmering tensions, the Middle East was inflamed again at the end of September with an escalation of the standoff between Israel and Iran. Israel killed leaders of Hezbollah and Hamas in Lebanon as the war expanded, while Iran sent a barrage of missiles on Israel in retaliation.

War Premium The oil market started to price in a higher war premium, awaiting a response from Israel to the Iranian missile attack. Oil price volatility soared again, as prices moved higher, rising by 13 percent in one week and Brent crude prices reaching $80 per barrel, the highest level since August.

One of the reasons why prices did not shoot up much higher was that the major Middle Eastern oil producers Saudi Arabia and the United Arab Emirates (UAE) are sitting on a

www.ogv.energy I November 2024

The worst-case scenario would be Iran attempting to block the Strait of Hormuz, which handles 21 percent of the daily global petroleum consumption. This scenario is however seen as a low-probability event. If the worst comes to the worst, disruption to traffic in the most vital oil shipping lane could send oil prices well above $100 per barrel and to new record highs, analysts say.

The threat to oil supply could be potentially large if energy infrastructure is targeted in an escalation, analysts at Wood Mackenzie said in early October.

If a supply outage were to occur, WoodMac estimates that OPEC has roughly 6 million barrels per day (bpd) of spare productive capacity readily available to come to market should it be required.

However, a further risk for the oil market would be if the Strait of Hormuz were to become inaccessible. Around 20 percent of global crude trade passes through the Strait, as would much of the spare capacity, the analysts noted.

Oil prices haven’t jumped too much due to concerns about global oil demand, especially in China, and to the relative complacency that OPEC’s spare capacity could offset potential losses to supply, unless the mother of all oil shocks – a closure of the Strait of Hormuz – were to occur.

“It looks as if oil and gas traders are betting that supply disruptions can be avoided, in spite of the escalation of the conflict. But if military activity between Israel and Iran intensifies, the upside could be substantial,” according to Wood Mackenzie’s Ann-Louise Hittle, Head of Macro Oils, and Massimo Di Odoardo, Head of Global Gas and LNG Research.

OPEC+ Confirms Plans to Start Easing Oil Output Cuts Amid escalating tensions in the Middle East, the OPEC+ group led by the major OPEC producers in the region affirmed its intention to begin unwinding the production cuts from December 2024.

The Joint Ministerial Monitoring Committee (JMMC) of the OPEC+ alliance reviewed the crude oil production data for the months of July and August 2024 and current market conditions at a meeting in early October.

OPEC+ had already announced in early September that they would extend their additional voluntary production cuts of 2.2 million bpd for two months until the end of November 2024, after which these cuts would be gradually phased out on a monthly basis starting 1 December 2024.

OPEC+ initially planned to add a combined 180,000 bpd to their production in October.

Now this supply addition has slipped to December and the group confirmed the latest plan during the October meeting.

At the meeting, Iraq, Kazakhstan, and Russia confirmed that they had achieved full conformity and compensation according to the schedules submitted for September, OPEC said.

“The three countries reiterated their strong commitment to maintaining full conformity and compensation throughout the remaining period of the agreement,” the organization noted.

The final assessments of September crude oil production levels will be based on the secondary sources approved by OPEC which provide data on production of countries participating in the Declaration of Cooperation (DoC), the official label of the OPEC+ alliance.

The JMMC panel also “emphasized the critical importance of achieving full conformity and compensation,” adding that it would continue to monitor adherence to the production adjustments.

Major Deals Involving Middle East’s NOCs Several significant deals involving the region’s national oil companies (NOCs) have been signed in recent weeks.

ADNOC, Abu Dhabi’s national oil company, signed in October an investment agreement to buy German chemicals giant Covestro.

MIDDLE EAST ENERGY REVIEW

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The agreement stipulates, among other items, that the bidder, ADNOC, will make a public takeover offer for all outstanding shares of Covestro at a price of 62.00 euros per share. The entire deal is worth 14.7 billion euros ($16.3 billion) including debt.

“The offer will be subject to a minimum acceptance level of 50 percent plus one share and customary closing conditions, including merger control, foreign investment control, EU foreign subsidies clearances,” Covestro said.

The deal would be one of the largest cash transactions in the chemicals industry ever, as well as the first time a company part of the DAX 40 blue-chip index in Germany would be acquired by a state company from the Gulf.

“This strategic partnership is a natural fit and aligns seamlessly with ADNOC’s ongoing smart growth and future proofing strategy and our vision to become a top 5 global chemicals company,” said Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, has chaired a meeting of the Executive Committee of the ADNOC Board of Directors, at which His Highness endorsed ADNOC’s innovative Artificial Intelligence and Digital Technology (AIDT) strategy, ENERGYai. The strategy aims to harness the power of AI to drive efficiency, sustainability, and growth across the group’s operations. The crown prince commended ADNOC for its ambition to become the world’s most AI-enabled energy company and for emerging as a global leader in AI, setting new benchmarks for use of the technology in the energy sector.

In Saudi Arabia, state oil giant Aramco completed in early October a $3 billion international sukuk issuance, comprised of two US dollar-denominated tranches. The first tranche of $1.5 billion is maturing in 2029, carrying a profit rate of 4.25% per annum, and the second tranche of $1.5 billion matures in 2034, carrying a profit rate of 4.75% per annum. The offering received strong demand and was six times oversubscribed.

“Building on the strong investor reception from our July 2024 bond issuance, this sukuk offering represented an opportunity to engage with a broader investor base,” Ziad T. AlMurshed, Aramco Executive Vice President and CFO, said.

Saudi Aramco also announced new agreements with key Chinese partners during a visit to the Kingdom of Saudi Arabia by a senior delegation led by Chinese Premier Li Qiang.

The agreements include preliminary documentation relating to a Development Framework Agreement with Rongsheng Petrochemical Co. Ltd. and a Strategic Cooperation Agreement with Hengli Group Co., Ltd. With Rongsheng, Aramco plans the potential joint development of an expansion of Saudi Aramco Jubail Refinery Company (SASREF) facilities. This includes Rongsheng’s potential acquisition of a 50-percent stake in SASREF, the development of a liquids-to-chemicals expansion project at SASREF, Aramco’s potential acquisition of a 50-percent stake in Rongsheng affiliate Ningbo Zhongjin Petrochemical Co. Ltd. (ZJPC), and participation in ZJPC’s expansion project.

The agreement with Hengli Group advances talks relating to Aramco’s potential acquisition of a 10-percent stake in Hengli Petrochemical Co., Ltd., subject to due diligence and required regulatory clearances. It follows the signing of a Memorandum of Understanding in April 2024 regarding the proposed transaction.

QatarEnergy, the state firm of Qatar, has signed an agreement with China State Shipbuilding Corporation (CSSC) for the construction of six additional state-of-the-art QC-Max vessels, bringing the total number of LNG vessels on order under its fleet expansion program to 128, including 24 QC-Max mega vessels.

The QC-Max vessels which will be built at CSSC’s wholly owned subsidiary, HudongZhonghua Shipyard, are the largest LNG vessels ever built with a capacity of 271,000 cubic metres each. The new carriers are scheduled to be delivered between 2028 and 2031.

“The signing of today’s agreement is underscored by the strategic importance of QatarEnergy’s historic LNG fleet expansion program and its commitment to maintaining a leadership position in the global LNG market,” said Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, who is also president and CEO of QatarEnergy. 

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Australia Energy Review

By Tsvetana Paraskova

The government has also found that new sources of gas supply are needed to meet demand during the economy-wide transition.

Australia, one of the world’s top LNG exporters and a major lithium and nickel producer, is looking to become a clean energy powerhouse while maintaining security of energy supply.

The gas strategy identified that Australia needs to prevent gas shortfalls by working with industry and state and territory governments to encourage more timely development of existing gas discoveries in gas-producing regions.

“The Strategy makes it clear that gas will remain an important source of energy through to 2050 and beyond, and its uses will change as we improve industrial energy efficiency, firm renewables, and reduce emissions,” said Madeleine King, Minister for Resources and Northern Australia.

“But it is clear we will need continued exploration, investment and development in the sector to support the path to net zero for Australia and for our export partners, and to avoid a shortfall in gas supplies,” the minister added.

Currently, natural gas supplies 27 percent of Australia’s energy needs and accounts for 14 percent of Australia’s export income, the government said.

Gas will also have an important role to play in firming renewable power generation and is needed in hard-to-abate sectors such as manufacturing and minerals processing until viable efficient and cost-effective alternatives are available, it noted.

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ustralia’s Labour government is backing exploration and higher production of natural gas to provide domestic energy supply and export LNG to allies. At the same time, the country is investing billions of US dollars in incentivising renewable energy generation and critical minerals production and processing.

Future Gas Strategy The government unveiled in May this year its Future Gas Strategy in which the country would continue to support exploration and increased production of natural gas. The fuel is set to play a key role in Australia’s transition to a net-zero economy by 2050 and help provide a reliable source of energy to Australia’s allies, the government said.

www.ogv.energy I November 2024

“Gas is crucial for A Future Made in Australia as it supports manufacturing, food processing and refining of critical minerals which will help Australia and the world to lower emissions,” the government said.

Gas Supply Shortfall Looming without New Gas Developments Australia will have sufficient supply to meet demand for gas in the east coast in 2024 to 2026, the Australian Competition and Consumer Commission (ACCC) said in its latest interim update on the east coast gas market from June 2024.

The recently-announced extension to the life of Eraring Power Station has improved the outlook in the east coast market in 2026 and

2027, but the fundamental trajectory of supply has not altered and is projected to decline and lead to growing annual shortfalls from 2027 unless new gas supply is not available, ACCC warned.

Gas shortfalls are expected to emerge from 2027 unless new sources of supply are made available. This is earlier than the previous ACCC forecast from December 2023 of a possible shortfall from 2028, and reflects lower forecast supply due to delays in anticipated regulatory approvals for new projects and problems with legacy gas fields.

“Long term solutions to gas market shortfalls will require a range of policy and market responses. Amongst these, there is an urgent need to develop new sources of gas production and supply,” ACCC said.

“Ensuring efficient supply to the east coast market would also be supported by increased competition in upstream production.”

Some companies are already boosting investments in Australia’s energy supply.

In August, Arrow Energy, a 50/50 joint venture between Shell and PetroChina, announced plans to develop Phase 2 of Arrow Energy’s Surat Gas Project in Queensland, Australia.

The expansion of the coal seam gas project in northeast Australia will boost supply to domestic customers and long-term LNG shipments, Shell said.

The gas from the project will flow to the Shelloperated QCLNG liquefied natural gas facility on Curtis Island, near Gladstone, to meet long-term contracts and supply domestic customers. This is part of an existing 27-year gas sales agreement between Arrow Energy and QGC. Phase 2 is expected to contribute around 22,400 barrels of oil equivalent per day (or 130 million standard cubic feet per day) at peak production.

Investments in Renewables Alongside bolstering near- and medium-term energy security, Australia looks to boost investment in and deployment of renewable energy and critical minerals production.

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Investment in renewable energy projects in Australia bounced back in the first quarter of 2024 from the lows in 2023. Yet, the country needs to further increase its annual investments to meet the government’s 2030 clean energy target, industry body Clean Energy Council said in a report in June.

Q1 2024 was the best quarter for electricity generation projects reaching financial commitment since the end of 2022, with five projects totalling 895 MW being financially committed, the report noted.

However, investment levels in generation projects will need to significantly improve with financial commitments of at least 6-7 GW of new large-scale generation projects needed this year (and in successive years) for investment to get back on track to meet the Federal Government’s target of 82 percent renewables by the end of 2030, the industry body said.

Government Support for Clean Energy Powerhouse Australia plans to invest as much as US$15.6 billion (AUS$22.7 billion) over the next decade to help the country succeed and remain an indispensable part of the global economy as the world undergoes the biggest transformation since the industrial revolution, the government said in May. This plan will help Australia build a stronger, more diversified and more resilient economy powered by clean energy, the government said unveiling the Future Made in Australia plan.

Apart from a clean energy boost, Australia will look to increase production and processing of minerals vital for the energy transition. The country is a major producer of lithium, the key mineral in the current leading global battery technology, and of nickel, which is also crucial for battery manufacturing.

The government is helping secure Australia and the world’s renewable energy supply chains by backing the Kathleen Valley Lithium Project in Western Australia. Early this year, the government extended funds from the Clean Energy Finance Corporation (CEFC) and from Export Finance Australia

(EFA) to help battery minerals producer Liontown Resources secure the final stages of construction of the company’s Kathleen Valley Lithium Project. Liontown Resources in July announced that first spodumene concentrate had been produced at Kathleen Valley.

Hydrogen Strategy Australia’s government has also recently unveiled a new national hydrogen strategy as it aims to become a “renewable superpower.”

With the new strategy published in September, Australia will aim to develop new domestic clean energy manufacturing capabilities and capitalise on massive export opportunities for clean, secure energy supply chains through becoming a hydrogen world leader.

The National Hydrogen Strategy, finalised by joint work by state, territory, and federal governments, looks to create an Australian hydrogen industry at scale.

Key to these efforts is the green Hydrogen Production Tax Incentive programme and the expanded green Hydrogen Headstart programme, which the government is funding through an estimated US$5.5 billion (AUS$8 billion) allocation made in this

year’s Federal Budget as part of a Future Made in Australia.

Both programmes have been designed with industry to most effectively drive economies of scale, accelerate investment, reduce the cost gap, and help major projects reach financial close faster, thegovernment said.

It also estimates that these hydrogensupporting programmes could unlock US$34.2 billion (AUS$50 billion) in private sector investment and see Australia’s annual domestic production capacity exceed 1 million tonnes of green hydrogen by 2030.

The strategy “sends a clear signal to trading partners about the future marketplace in Australia for hydrogen and hydrogen-based fuels,” Minister for Climate Change and Energy Chris Bowen said.

“Having this blueprint also informs future infrastructure planning and investments across all Australia’s governments, and outlines how Australia can take advantage of the global transition to net zero, by underpinning new domestic manufacturing such as green metals and chemicals, as well as energy exports to our international partners.” 

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BRENT OIL PRICES

OVER THE YEARS Brent Oil Column November 2024

1

YEAR AGO

1 Year Ago - $81.74 The Brent crude oil benchmark reached above $80 a barrel after demand concerns and a fading war-risk premium triggered a sell-off. The onset of the Israel-Hamas war did fuel volatility and bring additional risks but it did not affect underlying oil market fundamentals. Oil prices remained below the first Hamas attack in September.

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YEARS AGO

5 Years Ago - $62.46 Oil prices fell amidst rumours that OPEC’s leading members weren’t willing to deepen output cuts. Oil prices held firm in recent weeks on the understanding that Saudi Arabia was willing to extend the production quota through to next year.

Saudi Arabia’s priority was to keep the price around the $60 mark but was facing some resistance from other members.

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YEARS AGO

10 Years Ago - $77.39 The price of oil slumped after the OPEC oil producers cartel decided not to cut output at its meeting in Vienna. Crude oil prices had fallen 30% since June on sluggish global demand and rising production from the US. This fall in price had been causing concern for several members but OPEC’s secretary general claimed that there was no need to panic and cut output.

*Price correct at time of going to print.

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ENERGY PROJECTS MAP

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Energy projects and business intelligence in the energy sector

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The EIC delivers high-value market intelligence through its online energy project database, and via a global network of staff to provide qualified regional insight. Along with practical assistance and facilitation services, the EIC’s access to information keeps members one step ahead of the competition in a demanding global marketplace.

The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally.

It is renowned for excellence in the provision of services that unlock opportunities for its members, helping the supply chain to win business across the globe.

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World Projects Map

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www.ogv.energy I November 2024

ENERGY PROJECTS MAP 1

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SURINAME

USA

NORWAY

$10.5 billion

$500 million

$140 million

TotalEnergies

Shell

Equinor

BLOCK 58 FIELD DEVELOPMENT (GRANMORGU FPSO)

ROME OFFSHORE OIL PIPELINE

TROLL A PLATFORM MODIFICATION

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6 QATAR $4 billion

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MARJAN OIL FIELD

SEPIA OIL FIELD (PHASE 2 – P-85 FPSO)

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JURASSIC FIELD – NON-ASSOCIATED OIL AND GAS RESERVES – PHASE 3 KOC has awarded a $140 million EPC contract for flowline and associated works for exploratory and Jurassic wells in North Kuwait to Mechanical Engineering and Contracting Company. Construction is set to commence in November 2024, with an expected completion date in Q4 2026. It is understood that the third phase of the programme is aimed at producing condensate, 400 MMcf/d of gas, and 100,000 b/d of crude oil.

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SAUDI ARABIA

Saipem has awarded a new offshore contract worth around $2 billion. Saipem's scope of work includes the engineering, procurement, construction, and installation of topsides for wellhead platforms, jackets for wellhead platforms, a tie-in platform jacket and topside, rigid flowlines, submarine composite cables, and fibre optic cables.

Fabrication will take place at the Saudi-based Saipem Taqa Al-Rushaid Fabricators Co. Ltd. (STAR) yard in Dammam.

McDermott has been awarded an EPCI contract to deliver approximately 250 km of offshore and onshore gas pipelines, linking five new offshore wellhead platforms to two new onshore LNG trains. The scope of work also includes subsea composite power and control cables. The project will be overseen from McDermott's office in Doha, with fabrication support provided locally by the QFAB fabrication yard and will utilise McDermott's in-house marine assets for installation.

Kuwait Oil Company

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FALKLAND ISLANDS

$6 billion

$8 billion

QatarEnergy

$1.5 billion

Aker Solutions has been awarded a contract by Equinor worth $140.2m for modification work on the A platform. The company will be responsible for the EPCIC process of topside modifications. The construction and prefabrication process will be executed at the company’s yard in Egersund. Aker Solutions' Stavanger office handles project management, detailed engineering, procurement, and shop engineering, with support from the teams in Bergen and Mumbai. Work will commence immediately, and completion is expected in 2027.

Shell has announced a positive Final Investment Decision (FID) for the project. The 161km pipeline will follow the path of existing corridor pipelines, starting from Shell’s GC-19 hub and linking to major crude oil markets in Texas and Louisiana. Subject to required permits and regulatory approvals, the pipeline is expected to begin operations in 2028. Shell and bp have formalised an agreement for the Rome pipeline to transport 100% of the oil output from bp’s newly approved Kaskida project.

A final investment decision has been made for the GranMorgu FPSO. The 220,000 b/d GranMorgu FPSO is to be connected to a system of subsea wells about 150km off the coast of Suriname.

The project will include a drilling campaign entailing 32 development wells (including oil production, water reinjection and gas reinjection). The FPSO will be all-electric and designed for zero flaring, with associated gas either being use as fuel onboard the platform or being reinjected into the reservoirs.

KUWAIT

$1 billion

Navitas Petroleum

SEA LION FIELD (PHASE 2)

TechnipFMC has signed a new contract with Petrobras entailing the supply of subsea equipment to the Atapu, Sépia and Roncador fields. The latest contract covers the design, engineering and manufacturing of subsea production systems, as well as installation support, life-of-field services and the option for additional equipment and services. SLB has been awarded a contract that entails well construction services at Atapu, Sépia and Búzios.

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Navitas and Rockhopper have revealed the second phase of the Sea Lion field will entail the drilling of 12 additional development wells to increase capacity by 10,000 b/d to achieve a production of 55,000 b/d. Completion of Phase 2 is expected up to two years after first oil of Phase 1.

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NAMIBIA

IRAQ

AUSTRALIA

INDONESIA

$800 million

$2.8 billion

$500 million

$100 million

BW Energy

TotalEnergies

Mineral Resources

Pertamina

KUDU GAS FIELD BW Energy will submit the final development plan in February 2025. Following the results of new 3D seismic data, the company is also looking to drill a $100 million exploration well as part of the plan.

RATAWI FIELD DEVELOPMENT

LOCKYER DEEP GAS DISCOVERY

The engineering design by KBR for the Artawi field is now 99% complete. Once the designs are finalised, the project will proceed to the detailed engineering phase, which involves multiple contracts.

These include a contract for pipeline equipment and a contract for gas compressors, among others. These contracts are integral to the overall engineering design of the project.

MinRes reported that the project has now been proven through successful drilling and record flow tests across a 6 well program.

Gas resources indicate it is one of the largest onshore gas discoveries in Western Australia with resources estimated of total more than 1.4 Tcf of gas.

Planning for the development of the project has progressed with approvals submitted for a Central Processing Facility.

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MANPATU-1X GAS DISCOVERY According to SKK Migas, first oil is anticipated in 2026. FID could be seen in H2 2025. The development plan involves constructing an offshore platform at the well location and a 3-kilometre, 14 -inch diameter pipeline to connect to the existing MD-1 platform.

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Energy Firms Vie for International Growth Major oil and gas companies are looking to expand their operations to the world’s most promising basins as energy investments are rising and demand for hydrocarbons and electricity is growing with the advance of AI and data centres.

By Tsvetana Paraskova International oil and gas majors are moving to explore prospects offshore Namibia, Guyana, and Suriname, while the national oil companies in the Middle East are looking to establish a presence in the growing global LNG market and low-carbon projects.

Energy Investment Rising This year, global energy investment is expected to top $3 trillion for the first time, with $2 trillion of this going to clean energy technologies and infrastructure, the International Energy Agency (IEA) said in its World Energy Investment 2024 report in June.

Global upstream oil and gas investment is set to increase by 7 percent in 2024 to reach $570 billion, following a similar rise in 2023. This year’s investments are expected to return to the 2017 levels.

The growth in upstream spending in 2023 and 2024 is led by the national oil companies in the Middle East and Asia, the IEA noted.

Lower cost inflation suggests that the headline rise in spending results in an

www.ogv.energy I November 2024

even larger rise in activity, up by around 25 percent compared with 2022. Existing fields account for around 40 percent total oil and gas upstream investment, while another 33 percent goes to new fields and exploration.

The remainder goes to tight oil and shale gas, the IEA said in its report.

Offshore Investments Take Centre Stage Within the oil and gas industry, the dynamics of investments is shifting from US shale to international offshore, Rystad Energy said in a report in August.

US tight oil investments are set to decline by Moreover, a significant wave of new about 10 percent in 2024 compared to investment is expected in LNG last year, and thus US production in the coming years as new is forecast to grow by only liquefaction plants are built, around 400,000 barrels per “Our sixth multi-billionprimarily in the United day (bpd) this year and next dollar project in Guyana States and Qatar. The – the lowest level of growth concentration of projects will bring the country’s for the sector since the looking to start operation Covid-19 pandemic-affected production capacity to in the second half of this years of 2020 and 2021, approximately 1.3 million decade could increase Espen Erlingsen, Head of competition and raise costs barrels per day,” Upstream Research at Rystad for the limited number of Energy, wrote. At the same time, specialised contractors in this investments in the offshore sector area, according to the agency. are rising and expected to grow by Meanwhile, while investment in clean energy technologies is now nearly double the spending on fossil fuels, the world needs to double investments in renewables in order to reach the target of tripling renewables capacity by 2030, the IEA said.

about 5 percent both this year and next.

Offshore – and the deepwater sector in particular – was heavily affected by the growth of tight oil in the last decade. Total upstream offshore investments fell from $340 billion in 2014 to $140 billion in 2021.

INTERNATIONAL GROWTH

But offshore investments began to increase in 2022, thanks to high oil prices, improved economics for offshore projects, and lower tight oil growth.

Rystad Energy estimates total offshore investments will reach nearly $250 billion next year, suggesting that the offshore sector will most likely be the source that will drive the growth in oil production for the rest of this decade, Erlingsen says.

New Exploration Hotspots With more investments offshore and renewed risk appetite from supermajors to explore for advantageous resources, the South Atlantic margins in South America and West of southern Africa have gained prominence.

Guyana and Suriname in South America and Namibia off Africa’s southwest coast have emerged as the newest exploration hotspots in which major international oil companies, including ExxonMobil, Shell, and TotalEnergies, have been investing in drilling and production in recent years.

Exxon earlier this year made a final investment decision for the Whiptail development offshore Guyana, its sixth offshore project there, after receiving the required government and regulatory approvals.

The $12.7 billion Whiptail project, the sixth project on the Stabroek block, is expected to add approximately 250,000 barrels of daily capacity by the end of 2027.

“Our sixth multi-billion-dollar project in Guyana will bring the country’s production capacity to approximately 1.3 million barrels per day,” Liam Mallon, president of ExxonMobil Upstream Company, said in April.

European majors Shell and TotalEnergies are looking to explore and potentially develop the large oil discoveries they have recently made offshore Namibia in West Africa.

Shell has drilled with its joint venture partners exploration and appraisal wells across its license in deep water more than 250 km from Namibia’s shore. Shell has made five discoveries in the Orange basin, including the large Graff discovery.

TotalEnergies, for its part, has raised its interests in offshore blocks 2913B and 2912 offshore Namibia, both of which it operates.

“This transaction not only increases our share in the Venus discovery and remaining prospectivity on these blocks, but also represents a key step toward the development of Venus by consolidating the partnership and securing financing of all partners which will add value to all stakeholders”, said Patrick Pouyanné, Chairman and Chief Executive Officer at TotalEnergies.

On the other side of the Atlantic, TotalEnergies announced in early October the Final Investment Decision (FID) for the “GranMorgu” development located on Block 58 offshore Suriname. TotalEnergies is the operator of Block 58 with a 50-percent interest, alongside APA Corporation with the other 50 percent.

The GranMorgu project will develop the Sapakara and Krabdagu oil discoveries, on which a successful exploration and appraisal campaign was completed in 2023. The fields, located 150 km off the coast of Suriname, hold recoverable reserves estimated at over 750 million barrels.

The project includes a 220,000 barrels of oil per day Floating Production Storage and Offloading (FPSO) unit, which replicates a proven and efficient design. Total investment is estimated at around $10.5 billion and first oil is expected in 2028. The GranMorgu FPSO is designed to accommodate future tie-back opportunities that would extend its production plateau, TotalEnergies said.

The French supermajor has also acquired shale gas assets in the Eagle Ford Basin in Texas, US, to boost its gas value chain integration and supply for LNG exports.

With over 10 million tons (Mt) exported in 2023, TotalEnergies is the largest exporter of US LNG, thanks to its 16.6-percent stake in the Cameron LNG plant in Louisiana and several long-term purchasing agreements.

“This acquisition further strengthens our upstream gas position in the United States and contributes to our integrated LNG position with a low cost upstream gas supply”, Nicolas Terraz, President, Exploration & Production at TotalEnergies, said in September.

Middle East NOCs Grow International Downstream Footprint The national companies of the biggest oil and gas producers in the Middle East are expanding their export capabilities and looking to secure LNG and downstream deals abroad.

QatarEnergy is working on the world’s largest LNG expansion project to tap additional gas resources from the North Field and build liquefaction and export plants. The Qatari state company has already signed a number of agreements with big international oil and gas firms to have them as minority partners in each of the new trains under construction.

QatarEnergy has also recently signed an agreement with Chevron to acquire a 20-percent working interest in a production sharing contract for block 5 offshore Suriname.

“This agreement highlights our continued commitment to exploring the promising basins of Suriname and marks an exciting new

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partnership with Chevron in the international upstream sector,” Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said in July.

Also in international upstream, QatarEnergy has signed a farm-in agreement with ExxonMobil to acquire a 40-percent participating interest in two exploration blocks offshore Egypt.

In May, QatarEnergy announced that the consortium partners in the Sepia joint venture have taken the final investment decision (FID) for the second development phase of the Sepia field, located in the prolific pre-salt Santos Basin offshore Brazil. The Sepia joint venture is a partnership between QatarEnergy, TotalEnergies, Petronas, Petrogal Brazil, and Petrobras, which is the operator.

The world’s largest crude oil exporter, Saudi state oil firm Aramco, continues to seek acquisition opportunities in the downstream and LNG, Aramco’s Executive Vice President for Products and Customers, Yasser Mufti, told Reuters in an interview in September.

At the end of 2023, Saudi Aramco entered Pakistan’s downstream market by acquiring a 40% stake in Gas & Oil Pakistan Ltd, one of the country’s largest retail and storage companies, as the oil giant seeks international downstream expansion.

Aramco has also signed a non-binding Heads of Agreement (HoA) for a 20-year sale and purchase agreement for LNG offtake of 5.0 million tonnes per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project in the United States. The agreement includes the option for Aramco to buy 25 percent in the project-level equity of Phase 2.

Abu Dhabi’s national oil and gas company ADNOC is also expanding with deals in the United States.

In September, ADNOC signed an agreement with ExxonMobil to buy a 35-percent equity stake in Exxon’s planned low-carbon hydrogen and ammonia production facility in Baytown, Texas.

Contingent on supportive government policy and necessary regulatory permits, the facility is expected to be the world’s largest of its kind upon start-up. It will be capable of producing up to 1 billion cubic feet (bcf) daily of lowcarbon hydrogen, which is virtually carbonfree with approximately 98 percent of carbon dioxide (CO2) removed and more than 1 million tons of low-carbon ammonia per year. A final investment decision is expected in 2025 with anticipated start-up in 2029, ADNOC and Exxon said. 

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Multi-million Dollar Contracts Secured For Market Leader

Wang Beixing

Newland Oiltools is honored to be featured in the November edition of OGV Energy Magazine, a publication that highlights innovation and excellence within the energy sector. This issue spotlights our advanced manufacturing techniques, the exceptional technical expertise of our team, our commitment to developing next-generation talent, and our steadfast dedication to serving the Eastern Hemisphere market.

Distinguished Team: A Foundation of Expertise At the heart of Newland Oiltools' success is our distinguished team, whose collective experience forms the backbone of our operations. Led by Wang Beixing, President and Owner, our leadership team also includes David Li, VP of Sales; Li Yang, Director of Sales; Jason Kent, EVP of the Americas; and Martin Pirie, EHO Vice President. Each member brings extensive industry knowledge, with many having over 25 years of experience in the oil and gas sector, particularly in the Middle East. This wealth of expertise not only fosters our company's development but also enables us to attract and retain top talent in the completions sector.

Our team’s background spans various specialties, including drilling operations, engineering, and project management, ensuring that we have the right skills and insights to address the diverse challenges faced by our clients.

A Sustainable Future: Commitment to Growth We take immense pride in our seasoned professionals and partners who uphold Newland’s reputation for excellence. Recent expansions— including key hires in the USA—demonstrate our commitment to growth.

Under the visionary leadership of Wang Beixing, Newland Oiltools is making significant strides on a global scale. He emphasizes, “Our recent global successes have firmly established Newland Oiltools as a leading manufacturer and supplier of high-quality equipment. We are designing and producing innovative tools that facilitate quicker market entry and tackle bespoke operational challenges for clients worldwide.”

www.ogv.energy I November 2024

To support this growth trajectory, we have expanded our team of design engineers at our primary facility in China, which is recognized for its technological innovation and research and development (R&D) in well completions and manufacturing processes. This bolstered engineering team is crucial as we continuously refine our product offerings to meet evolving industry needs.

Commitment to the Eastern Hemisphere: Strategic Investments Newland Oiltools has demonstrated a strong commitment to the Eastern Hemisphere, particularly in the Middle East and the Caspian region. With a substantial inventory of equipment readily available, we are well-positioned to support existing contracts and seize emerging opportunities. Our recent contractual achievements in Southeast Asia—including multimillion-dollar contracts with leading operators— have solidified our status as a premier provider of casing accessories in this region.

These long-term contracts have not only expanded our operational footprint but have also allowed us to offer our “world-class” testing facilities to new clients, further enhancing our ability to provide tailored solutions for their operational requirements. Our strategically located facilities in the United Arab Emirates, China, the USA, and Malaysia enable us to deliver agile and responsive service to our clients.

As part of our ongoing success, we are actively exploring the establishment of a new manufacturing facility within the MENA region.

This facility will serve local clients and enhance our global production supply chain, ensuring we remain competitive and responsive to market demands.

Innovative Solutions: The ASLO PRO A standout achievement in our product development is the significant evolution of the ASLO PRO, originally requested by a global operator in Azerbaijan. This innovative solution for “under-reamed” applications exemplifies our commitment to delivering exceptional performance and quality solutions. By working closely with our clients, we ensure that our products not only meet but exceed their expectations.

For more information please visit: www.newlandoiltools.com

INTERNATIONAL GROWTH

Exclusive Access to Cutting-Edge Technology Wang Beixing underscores Newland’s leadership in manufacturing and technological innovation: “Our expertise in technology and production is widely recognized. We are committed to exploring new technologies and opportunities within the industry. Our research and development team is focused on delivering rapid and efficient product solutions tailored to our clients' needs.”

Our commitment to advancing manufacturing techniques is crucial for adapting to evolving operational demands. We prioritize modernizing our production processes, enhancing efficiency, stabilizing quality, and promoting environmental sustainability.

Lean Manufacturing: A Path to Excellence Aligned with our strategic approach, lean manufacturing plays a pivotal role in enhancing operational efficiency and minimizing waste across our production processes. This methodology focuses on systematic improvements to workflows, reduction of cycle times, and the elimination of non-valueadding activities. By implementing key lean practices such as value stream mapping, just-intime production, and standardized work procedures, we achieve notable cost savings, improved product quality, and a more responsive approach to customer needs.

Our ongoing commitment to manufacturing excellence significantly enhances the energy industry by improving operational efficiency, reducing costs, and elevating product quality. This dedication drives innovation, resulting in more effective and sustainable solutions for exploration, drilling, and production processes.

In summary, Newland Oiltools stands at the forefront of the oil and gas industry, ready to tackle the challenges of today and tomorrow. With a commitment to excellence, a focus on sustainability, and an investment in cutting-edge technology, we are poised for continued growth and success in the global energy market. 

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INTERNATIONAL GROWTH

Oceaneering is Revolutionising Asset Maintenance with INFORMTM Vision In the evolving field of asset management, the ability to anticipate potential failures is critical for optimising operational efficiency and minimising downtime.

5. Reporting Reporting is carried out in an agreed client template, in accordance with specified criteria for each area. Reports are integrated with INFORMTM Vision and include the necessary checking and approval following Engineering’s Check & Approval procedures. Reporting also allows for remediation actions to be grouped by client-specific criteria.

6. Anomaly Management & Site Inspection

Scan station view before Remote Condition Assessment

With constant bedspace limitations and an everaccumulating number of inspection scopes, a reliable and remote toolset is necessary to improve efficiency, streamline inspection processes and reduce operational costs.

requirements are specified. The work areas are defined to allow focused remediation scopes, and equipment lists (such as Structures and Pressure Systems Register) are imported.

INFORM Vision is at the forefront of this digital transformation, employing advanced technology and sophisticated data analytics to deliver precise asset condition assessments.

As a cloud-based visual asset management system, INFORMTM Vision provides instant desktop access to the asset, facilitating simplified detection and evaluation of anomalies reducing inspection activity on site. External surface conditions are evaluated directly within the software using highresolution 360-degree images and dense point cloud data for detailed analysis.

Existing anomalies are reviewed and positioned within immersive software imagery.

The INFORMTM Vision API allows live anomaly data to be ingested directly from the clients preferred Anomaly Management System.

TM

INFORM™ Vision Workflow 1. Review of Scope The process begins by planning the scope in accordance with client requirements and their Anomaly Procedure. Inspection deliverables are determined, and necessary data capture

2. Plot Existing Anomalies

3. Condition Assessment A remote asset condition assessment is conducted by experienced inspection engineers allowing quantification and visual representation of conditions. Point cloud accuracy is provided for each location, and defects are categorised using client-specific criteria.

4 Tagging Indications that break specified defect criteria are tagged within INFORMTM Vision, with the boundaries of the defect clearly defined. This stage allows the creation of a comprehensive catalogue of tags within INFORMTM Vision.

Real-World Case Studies CONDITION ASSESSMENT OF A SMALL FIXEDJACKET PLATFORM The condition assessment of this asset involved tagging 30 areas with corrosion tags and delivering 30 comprehensive reports.

Over 600 anomalies were identified during the assessment, which was completed within a 60day timeframe.

OPTIMISED FPSO ASSET INTEGRITY PROCESS In collaboration with a data mining specialist, a comprehensive FPSO external condition assessment has been conducted. By utilising INFORMTM Vision, the inspection process has been streamlined and executed remotely, allowing for efficient data management and stakeholder collaboration. The assessment resulted in 115 detailed area reports and the cataloguing of 7,055 corrosion tags, with recommendations for quick remedial actions.

Client has been thoroughly advised on the inspection and priorities in fabric maintenance, ensuring a robust process across equipment typically assessed individually.

By leveraging INFORMTM Vision cutting-edge solutions, organisations can not only enhance asset reliability and streamline maintenance processes but also achieve tangible reductions in operational costs. Moreover, with the added benefits of minimising human exposure to hazardous conditions and reducing CO2 emissions, INFORMTM Vision empowers companies to foster a safer and more sustainable operational environment. These advancements position organisations to accelerate their digital transformation journey, driving innovation and long-term success. 

Scan station view after Remote Condition Assessment – Corrosion Identified and Classified

www.ogv.energy I November 2024

The inspection output enables complete anomaly management within INFORMTM Vision. Anomalies are tagged, visualised, and managed from the initial identification stage through assessment to final resolution. This stage defines further inspection scopes and identifies on-site inspection points within the software.

For more information please visit: www.oceaneering.com

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Shaping the Future of Drilling Operations through Innovative Waste Management Solutions Committed to providing clean, safe and operationally efficient drilling waste management solutions, TWMA continues to deliver innovative technology across the globe, enabling operators to turn waste into value.

Recognising the industry’s drive for sustainability in drilling operations, TWMA strives to deliver solutions by pioneering technologies and implementing methods to support operators to reduce well costs and carbon emissions, while improving safety and remaining compliant with local legislation.

To meet ambitious targets of reducing emissions by 45% by 2030 and achieving net zero by 2050, it is increasingly important for operators to adopt effective methods for decarbonising drilling operations.

TWMA’s safe and efficient solutions for the transfer, storage and processing of drilling waste enhances operational efficiency and promotes the circular economy. By helping operators achieve environmental targets, TWMA contributes to global efforts for a more sustainable energy future.

Drilling Waste Management Solutions TWMA offers a comprehensive range of drilling waste management solutions, including drill cuttings treatment with our RotoMill technology, ship to shore and solids control. This provides operators with flexible options tailored to well specific, regional and legislative requirements, ensuring optimal performance for operators.

TWMA’s signature technology is the RotoMill® which is deployable directly at source. Using a process of thermal desorption, the RotoMill separates drill cuttings into their three constituent parts – oil, water and solids – for recycling and reuse or safe on-site disposal.

This innovation not only eliminates the need to transport drilling waste but also reduces

operators carbon emissions by up to 90% by removing the logistics and emissions associated with off-site treatment solutions.

Additionally, reusing base oil significantly reduces costs, promotes a circular economy and enhances safety by reducing the need for lifting operations, which are typically required with traditional methods.

TWMA continues to develop its technology through a strategy focused on automation, digitalisation and electrification.

First deployed in Abu Dhabi in 2024, TWMA’s RotoMill 2.0 is the most recent advancement in its technology portfolio and is engineered for the future of drilling waste operations, with increased unit efficiency, throughput and electric drive option. It features the XLink™ system, a new hardware and cloud-based software solution that provides real-time operational insights, and enables users to monitor and modify operational parameters live from anywhere in the world.

Expanding Middle East Operations Following a $70million Contract TWMA recently secured a significant contract with a leading UAE operator. The initial contract, valued at up to $70 million, underscores TWMA’s capacity to support large-scale energy projects globally while further solidifying its presence in the region.

The two-year contract, which includes options for renewal, covers 100% of Abu Dhabi’s thermal treatment operations. The contract renews TWMA’s long-standing offshore processing commitment on four offshore Islands, which it has serviced since 2012, and now expands the scope to include

10 additional jackups with ‘Skip and Ship’ operations, as well as a newly constructed onshore treatment facility. This new facility is expected to process over 50,000 metric tons of waste annually, generated by more than 100 land rigs operating in the UAE. As part of this partnership, TWMA will deploy its advanced drilling waste management technologies, including the RotoMill. To support this contract, TWMA will increase its workforce in the region by over 100, further strengthening its local footprint with a headcount of nearly 500.

TWMA continues to implement its waste management solutions successfully across the globe, with a strong presence throughout the UK, Norway, Africa, USA and the Middle East. The latest awarded projects follows contract extensions and recent awards from some of the world’s largest operators. This further cements TWMA’s place as a global leader and demonstrates the increasing demand for low carbon drilling technologies, delivering exceptional value to both clients and shareholders.

In the Middle East, TWMA’s impact has been particularly significant. Last year, the company secured a $100 million contract for a major sour gas development in Abu Dhabi.

This five-year agreement highlights TWMA’s significant growth throughout the Middle East and reinforces its commitment to delivering cutting-edge technologies that support operators to achieve sustainability targets.

Global Business Development Manager, Sandy Wood, commented: “Our expansion is a testament to TWMA’s dedication to innovation and sustainability in waste management. We are proud to enhance our service offerings with the latest in low-carbon technologies, like the RotoMill, supporting operators to not only meet but exceed their sustainability goals. As we continue to grow our global presence and impact, these new contracts and awards underscore our ability to deliver exceptional value to our clients and contribute meaningfully to their success in the evolving energy landscape.

As the energy transition drives operators to focus on their carbon footprint, TWMA continues to deliver its innovative technology portfolio worldwide, empowering operators to turn waste into value. 

twma.com

THE WORLDS DRILLING WASTE SPECIALIST

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Rotech Subsea – A Record Year for Growth and Diversification

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ith sector-leading controlled flow excavation (CFE) and suspended jet trenching technologies - and a reputation to match - Rotech Subsea, is on track to deliver a record year, fittingly coinciding with its 30 year anniversary in the subsea sector. Throughout 2024, Rotech has witnessed over 40% growth, bolstered by a growing team, equipment fleet and sustained global demand.

Rotech Subsea - whose in-house research, development and engineering team has created a suite of cutting-edge non-contact trenching, excavation and cable/boulder grab & cutting tools - has long been the partner of choice for European operations in pre-commissioning, commissioning, IRM & decommissioning. However, increasingly the company is experiencing demand from clients across Asia, the Americas, the Middle East and beyond, with Global Business Development Director, Stephen Cochrane, describing the spike in global demand as ‘phenomenal’.

Adding to the Team “Rotech is growing, and as such we are continuing to add additional talent, and resource to our team,” explains Cochrane.

“In April, we took our headcount past the 80 mark, with the addition of Ross Johnston and James Skinner to our business development team. Ross spent over 10 years in strategic business development and marketing roles across the marine, aviation and energy sectors, and James spent 4 years as an Analyst at Piper Sandler within its Energy and Power Division, and holds a First Class BA (Hons) degree in Management with Marketing from Robert Gordon University. Ross will be leading our BD efforts in Europe and North Eastern USA.” “In May we welcomed Bill Hare as our business development representative for Australia.

Bill has built a solid reputation and extensive professional network in the energy sector over his 16 years as the organiser of AOG Energy, Australia’s largest energy event. Bill introduced a Decommissioning Hub in collaboration with the Centre of Decommissioning Australia and established the Future Energy Forum along with the Western Australian Government,

major energy operators, project developers and service providers.”

expect to see our activity grow exponentially as the market there gathers pace.”

Having successfully completed multiple specialist work scopes to date, Rotech Subsea’s service offering has strong applicability across the decommissioning sector. This was demonstrated by a recently completed rock removal scope for a major oil and gas contractor in the UKCS. With significant decommissioning activity expected across key regions such as Australia, Rotech is positioning itself as a key enabler to support these operations.

Equipment Evolution

Market Expansion With a strong order book running well into 2025, Rotech has continued to establish a strong international presence across key emerging regions, notably Taiwan and the USA. A first mover in the rapidly developing offshore wind market in Taiwan, Rotech has continued to benefit from sustained activity across the region. Contributing to a notable percentage of this year’s revenues, Rotech has seen record levels of demand, with five equipment spreads mobilised at one time within the region. Having first established roots incountry in 2020, the company significantly increased the size of its service offering this year to keep up with local demand.

This global expansion has been triggered by the evolution of a suite of 32 trenching, excavation, cable grab, cutting and boulder removal tools which have successfully completed over 600 jobs between them.

Highlighting the increased scale of Rotech’s fleet, this Summer saw 10 equipment spreads on different vessels mobilised across the globe, a huge milestone for the company.

New to the portfolio is the unrivalled ‘RS3’, which was purpose-designed and built for cutting narrow trenches in harder soils and has soil cutting capabilities of 350 kpa. The RS3 can be paired with Rotech’s wide range of tooling, providing hybrid solutions tailored to clients’ needs.

“We have always listened to the market to deliver the most efficient and effective tools” continues, Stephen Cochrane. “Like our other trenching and excavation tools, the RS3 fluidises and excavates soils on the seabed in a controlled manner with powerful jet trenchers allowing us to cut deep and very narrow trenches. The flexibility to have a hybrid tool set up increases productivity.”

Having worked on every major operational windfarm to date, Rotech has already established a strong operational track record in the US. Following the announcement of its newly incorporated US entity, Rotech Subsea LLC, the company is now well positioned to support its client base with equipment spreads based in-country. Based out of the Cambridge Innovation Centre in Providence, Rhode Island, Rotech has joined the largest cluster of offshore wind companies in the US. Continuing to build on its existing cable trenching successes, the US market offers another huge opportunity for global growth.

Record levels of demand and equipment utilization also meant the return of Rotech’s electric CFE solution, demonstrating the company’s versatility. While typically favoring hydraulic drives for the reasons of power, reliability and robustness, this summer saw all of Rotech’s hydraulic power units out on hire. Having owned several electric power units dating back to as far as the early 2000’s, Rotech is no stranger to the technology.

Strategically engineered to be compact for smaller vessels, a single RS2 system was deployed off of a small multi-cat vessel, with all remedial burial operations completed in 45 hours with no issues.

“Breaking into the Americas with the major subsea cable installation and maintenance operators is a huge coup for us,” adds Cochrane.

“The offshore wind sector in North America is in its infancy compared to Europe so we

As Rotech closes out a record year, the company is looking forward to continuing to support its current and future client base across the globe with safe and efficient excavation solutions. 

Scan the QR code now to find out more about Rotech Subsea

rental equipment Diesel Hydraulic Power Units Electrical Hydraulic Power Units Pneumatic Hydraulic Power Units Marine Crane Lifting Equipment Spoolers, Reelers & Winches Overboard Chutes and Sheaves Filtration Equipment Flushing Equipment Pump Packages

Got a project? Get in touch: Tofthills Avenue, Midmill Business Park, Kintore, Aberdeenshire, Scotland, AB51 0QP, UK +44 (0) 1467 633805 sales@brimmond.com www.brimmond.com

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The Internationalisation of the Global Decommissioning Market: A New Era for Energy Transition

By Britney Houvet, Head of Business Development, Elemental Energies

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he global energy landscape is evolving rapidly, and decommissioning is no longer just a regional challenge. What began in the mature basins of the UK and Norway is now expanding globally, with the Gulf of Mexico, Brazil, and Australia emerging as significant markets. This shift is being driven by regulatory pressures, ageing infrastructure, and a global push to reduce carbon emissions.

In my role as Chair of Women in Decommissioning, I’ve seen first-hand how the sector is transforming, and at Elemental Energies, we see this as an opportunity to redefine the approach to managing oil and gas assets and support a responsible energy transition.

The North Sea: Leading the Way in Decommissioning The UK and Norwegian sectors of the North Sea were the first to tackle large-scale decommissioning. With decades-old fields, this region had to address the environmental and logistical challenges of retiring offshore infrastructure. Companies operating here have developed innovative technologies and best practices, which are now being applied worldwide.

Strict regulations require operators to restore sites to their original condition, with a strong emphasis on environmental protection.

This has created a highly specialised decommissioning sector where collaboration between operators, regulators, and service providers is key.

With decommissioning work expected to continue for decades, North Sea operators need partners who can provide long-term support and scale. To address this need, we

recently acquired Norway’s Well Expertise AS, forming one of the world’s largest specialist wells, subsurface, and project management companies. This acquisition enhances our ability to deliver decommissioning well management that meets the region's unique demands.

There is potential for international companies to bring their expertise in project management, engineering, and environmental services to the region. As Brazil develops its decommissioning strategies, it is likely to become a key player in the global decommissioning market.

The Gulf of Mexico: Preparing for LargeScale Decommissioning

Australia: Preparing for the Future

The Gulf of Mexico is also at the forefront of the global decommissioning market. With thousands of platforms across shallow and deep waters, the scale of the challenge is immense with a new wave of infrastructure reaching the end of its life.

Decommissioning in the Gulf is particularly complex due to the size of the region, the variety of water depths, and the fact that many platforms are located in hurricaneprone areas. This also includes the pressing issue of orphaned wells, requiring advanced engineering solutions whilst creating opportunities for collaboration with companies experienced in North Sea decommissioning.

Our ongoing work in the Gulf of Mexico, for the U.S. Bureau of Safety and Environmental Enforcement (BSEE), has given us first-hand experience in tackling these complexities. By focusing on both platform decommissioning and the safe closure of orphaned wells, we work to implement engineering solutions that prioritise safety, regulatory compliance, and environmental protection.

Brazil: A Growing Decommissioning Market Brazil is an emerging decommissioning market, with its offshore oil industry facing its own set of challenges. While Brazil is still in its growth phase, much of its offshore infrastructure, dating back to the 1980s, is approaching the end of its life. The country is now working to establish a regulatory framework for decommissioning, drawing on the experiences of mature markets.

Australia is also gearing up for a wave of decommissioning activity as its offshore oil and gas infrastructure nears the end of its operational life. Although Australia’s industry is younger than those in the North Sea or Gulf of Mexico, it is taking a proactive approach to ensure that decommissioning is done responsibly.

The Australian government is working closely with industry to create a framework that protects its diverse marine ecosystems while also fostering partnerships with international decommissioning experts. By learning from global best practices, Australia is positioning itself for the future of decommissioning.

Decommissioning as a Global Opportunity The internationalisation of decommissioning marks a pivotal shift for the energy sector, as regions like the Gulf of Mexico, and Australia increasingly draw on the expertise developed in more mature markets like the North Sea. This expansion underscores the need for global collaboration, bringing together specialised knowledge in subsurface and wells consultancy, environmental protection, and regulatory compliance.

As decommissioning becomes a critical component of the energy transition, Elemental Energies is working to ensure that we can provide a well management solution that can share best practices from across regions, prioritising safety, innovation, and scale to meet the evolving demands of this growing market. 

Scan the QR code now to find out more about Elemental Energies

INTERNATIONAL GROWTH

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Your trusted logistics partner delivering international growth With extensive knowledge of the Middle East energy market, Petrasco is well placed to guide companies through market entry and allow them time to establish their business, personnel and equipment on the ground before committing to expensive longterm commitments that may not be suitable for future growth.

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specialist provider of international logistics solutions for the energy industry, Petrasco has operated in the

country experience.

Petrasco offers a one-stop-shop for equipment, backed up with specific, local knowledge. Through its purpose-built UAE facility, it helps companies access equipment and mobilise cost-effectively across the Middle East by providing:

Celebrating its 50th anniversary in 2024,

- 3PL supply base and storage

UAE for over 20 years, while its management team possesses significant regional and in-

Petrasco has operations in the major energy hubs of Dubai, Houston and Aberdeen, providing expert knowledge on emerging markets to energy companies around the world.

- International logistics services - Access to technical and manpower services - Introduction to network of support services, such as administrative, legal and commercial

Unique well integrity solutions lead the way to success in the Middle East for KCI. 2024 has been a transformative year for KCI as we have expanded further into the global market. In addition to existing partnerships in Australia, Brunei, Nigeria, Norway, and across the Middle East, this year, we have united with Oilfield Services Company in Vietnam, Asia Serv in Indonesia, and Engineered Market Solutions in Denmark. This strategic alignment means that we can support our customers across the globe.

We see the Middle East as a critical market, which is why we have a presence in Abu Dhabi, Algeria, Azerbaijan, Egypt, Kuwait, Oman, Saudi Arabia, Turkmenistan and Qatar. Through these numerous vital partnerships, we can give our customers confidence that we can support their well integrity project at whatever scale is required.

Now, more than ever, it is critical for our business to be adaptable and continuously evolve to increase the value we are bringing to our clients.

T

o do this, we endeavour to have the highest-quality products and the people with the best skills to deliver on our customers’ projects.

The clue is in the name; Kinetics Controls and Innovation (KCI). Part of our success is our relentless focus on innovative solutions to well integrity challenges faced by oil and gas industry operators. At our onsite research and development facility, we continually revisit our current approach and products, eager to find new and improved ways to address emerging problems within the industry.

From rigless well intervention and integrity solutions to a range of sealants designed for ageing wells, our solutions support operators in managing integrity risks, avoiding costly downtime and supporting their sustainability goals.

www.ogv.energy I November 2024

Our expertise in this region has significantly grown as we have become more established. For example, we completed over 1,000 applications for a single customer in the Middle East by deploying several of our unique products. In addition, with a focus on efficiency, we have introduced innovative solutions such as packer leak repairs through both the tubing and annulus sides, ICV control-line leak repairs, hybrid data cable leak repairs, and flowline isolations.

By collaborating with our client, we can provide the most efficient solution to their well integrity challenges. This has allowed us to save our client in the UAE an estimated USD 200 million across 20 wells so far.

Additionally, as part of a strategic review, we recently decided to transition to an employee-owned company. This shift reflects our focus on sustainability and long-term investment in our workforce.

Despite being in the early days of this transition, this new structure already demonstrates successful collaborations within our team, further enhancing service delivery and client satisfaction. 

We’re proud of how far we’ve come and excited about where we’re headed.

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Navigating the Offshore Energy Transition: The Role of ROV Technology in a Net-Zero Future

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As the global energy industry transitions from fossil fuels to renewable energy, the offshore sector faces unprecedented challenges.

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ig managers, operators, and asset owners must balance operational efficiency with stringent environmental targets. This shift is further accelerated by technological advancements and global commitments to net-zero emissions.

The International Energy Agency (IEA) estimates that oil and gas operations contribute over 5.2 billion tonnes of carbon dioxide and methane emissions annually.

Countries like the UK have committed to ambitious targets, including a 78% reduction in emissions by 2035 and full netzero compliance by 2050. These evolving demands are driving innovation in offshore asset management, where technological solutions are addressing the challenge of maintaining ageing infrastructure while minimising environmental impact.

Westerton Access, now celebrating its tenyear anniversary, embodies this spirit of innovation. Starting as a rope access firm, Westerton Access seized the opportunity presented by the industry downturn to shift focus to developing ROV-based Underwater Inspection in Lieu of Drydocking (UWILD) services. This transition allowed operators to conduct inspections with minimal disruption, significantly cutting costs and reducing environmental impact.

The energy transition also compels operators to rethink traditional asset management strategies. While carbon offsetting is often used as a mitigation strategy, it is seen by critics as insufficient. Instead, the offshore sector must embrace technologies that reduce emissions at the source while maintaining the integrity of existing infrastructure.

Looking ahead, further integration of augmented reality (AR) and virtual reality (VR) technologies will enhance ROV capabilities, enabling operators to conduct inspections using immersive tools. This will reduce training times and improve the precision of critical tasks.

One such solution is the rise of Remotely Operated Vehicles (ROVs). Traditionally, asset inspections required large-scale operations— dive support vessels (DSVs) and extensive manpower. While essential for ensuring platform safety, these methods came with significant financial and environmental costs. However, the increasing deployment of smaller, more agile ROVs is changing the landscape. These ROVs, equipped with advanced tools for non-destructive testing and structural inspections, are revolutionising how routine maintenance is conducted.

Since then, Westerton Access has expanded globally, offering a full suite of specialist subsea services—from small observation ROV UWILDs to Work Class ROV campaigns.

As Westerton Access enters its second decade, the company remains committed The company’s ability to evolve has to being at the forefront of been key to its success, adapting innovation. The energy transition Westerton Access, to the shifting technological presents challenges, but also demands of the industry. with its decade of tremendous opportunities.

By continuing to leverage pioneering innovation, Artificial Intelligence (AI) is cutting-edge technology, will continue to provide now a major driver of this offshore operators can technological evolution. transformative subsea navigate this shift, ensuring ROVs integrated with AI the longevity of their assets services, from small ROV and machine learning will while aligning with global UWILD inspections sustainability goals. increasingly perform complex to large underwater tasks autonomously.

In this rapidly evolving environment, Predictive maintenance, powered collaboration and innovation are more

by AI, will allow operators to foresee crucial than ever. As AI, ROVs, and digital equipment failures and schedule repairs technologies converge, the offshore industry is before issues escalate, reducing downtime poised to lead the way in creating a sustainable, and repair costs. cost-effective future.

ROVs' smaller footprint means they can be deployed directly from offshore platforms or small support vessels, eliminating the need for large-scale mobilisation. This reduces both operational costs and emissions, offering a solution to the offshore industry's emissions paradox: how to continue essential operations while meeting carbon reduction goals.

Incorporating real-time data analytics, ROV technology promises not only improved operational efficiency but also enhanced safety and reliability of offshore assets.

Frequent, lower-cost data collection, combined with less environmental impact, offers operators a clear pathway to balancing financial and environmental priorities.

Westerton Access, with its decade of pioneering innovation, will continue to provide transformative subsea services, from small ROV UWILD inspections to large Work Class ROV campaigns. By embracing new tools and strategies, the company exemplifies how technology can reshape offshore inspections, ensuring a prosperous future for the offshore energy sector. 

To learn more, scan the QR code and download our latest whitepaper on Efficient Asset Inspections.

Innovation engineered: The Impulse Group is your partner for growth

WHERE SERVICE IS THE PRODUCT We know our customers rely on us as people, not just as a solutions provider.

“Our service isn't an afterthought – it's at the heart of everything we do.” Mark Westerhof, BD Manager at The Impulse Group

At The Impulse Group, we believe that real innovation in the energy industry isn't just about products; it's about people, expertise and precision - engineering solutions to exceed expectations.

Service as a competitive edge From flexible riser an d flowline integrity management and subsea inspection systems to our agile consulting services, we ensure you're not just keeping up with change — you're driving it.

Our engineers and experts partner with you to anticipate challenges and solve problems.

We understand the high stakes of the oil and gas industry, where performance matters more than ever. That's why our clients trust us with their projects – they value our expertise to engineer resilient solutions and provide innovation in every step.

Visualising the future of energy Our focus is on wha t comes next — how we can continue pushing the boundaries of what's possible in oil and gas.

Our service is your competitive advantage, and our team is your partner in navigating the complexities of the energy landscape.

www.ogv.energy theimpulsegroup.com I November 2024 Explore and contact our team of experts today

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Middle East commitment places EnerQuip in pole position Multi award-winning torque specialist EnerQuip is celebrating its position as the market leader in its field since taking the bold decision to make six-figure investment in the Middle East.

Long held but pandemic-hampered plans to significantly uplevel the company’s presence in the Middle East finally came to fruition exactly a year ago with the investment of £750,000 in the project. This comprised a1500 sq. ft. base that is now home to a team of six and their efforts have placed EnerQuip in pole position as the dominant market leader in the UAE market when it comes to offline horizontal makeup systems.

Central to this is the company’s Mobile Torque Unit (MTU) which was created thanks to a drive to innovate despite the global pandemic. When it launched in 2021, this ground-breaking MTU for the rig side mobile torque makeup of drill pipe and casing in the Middle East took the market by storm with ten of the 15 systems now in use in the region originating from EnerQuip.

This latest addition to the product line is in demand not least because it can make up range three casing doubles and drillpipe triples and is able to run fully automated thereby reducing labour and improving safety and efficiency, including by notably reducing hands-on time. With a clamp range from 2.3/8” up to an optional 22” and a climatecontrolled operator cabin, the MTU is torque capable up to 130,000 ft.lbs and can hit the ground running due to its remarkable ability to be operational in under two hours from equipment arriving onsite. It can be paired with any manufacturer’s catwalk for delivery of casing and drillpipe to drill floor and is capable of rig side teardown of drill string components, and BHA makeup.

Recent focus on the region has placed the Middle East high on the list of top performing areas for the ambitious company which prides itself on delivering flexible solutions backed by the best in the business. The team is light on its feet when it comes to giving customers what they want, where and when they want it – and they’re in increasing demand, not only in the Middle East but in all four corners of the globe. The highly skilled team delivers 24/7, 365 support and works with a growing client base in an increasing list of locations that includes Africa, North and South America, Canada, Europe, the Far East, and Australia too.

Strategically placed service centres across the globe ensure prime positioning which capitalises on growing UK export opportunities, the company consistently exceeds the expectations of the evolving demands of the energy industry in both mature and developing markets. This is thanks to a winning blend of support for existing fleets of equipment through service activity, and the design and manufacture of cutting edge, innovative equipment which seamlessly solves customer challenges whilst complying with all the latest industry regulations and operational demands.

In addition to enhanced provision in the Middle East, EnerQuip has also expanded its global headquarters at Findon on the outskirts of Aberdeen in a bid to cope with growing demand.

The extended facility increases indoor floor space dedicated to manufacturing by 60% with a new welfare facility and stores also added.

In addition to this expansion at the company’s headquarters, the business has announced significant expansion in another key market, thanks to the purchase of larger premises in Houston. EnerQuip has moved from sublet, shared accommodation to a purchased building in the Humble area, located in North East Houston and strategically closer to several regional customers. The 6,000sq ft base comprises 1,500sq ft of office space and 4,500 sq. ft. laydown/yard space. It will initially house a team of five personnel with the headcount expected to grow in the coming months, as the business actively looks to recruit across several positions.

The move will increase EnerQuip’s capacity to handle refurbishment and life extension projects of torque equipment throughout the Western Hemisphere, removing the need for equipment to be shipped back to the company’s global HQ near Aberdeen, thus reducing lead times and adding value by being closer to a growing customer base. 

Further boosting growth in the Middle East was the acquisition of the AMC product line from Forum Energy Technologies, taking ownership of the intellectual property, people and assets in a move which further consolidated its market leading position and brought on board additional products which continue to help fulfil adventurous growth plans.

To find out more, call +44 (0) 1224 608628 email Sales@EnerQuipTorque.com or visit www.EnerQuipTorque.com

Dräger X-am® 8000

Dräger PSS® 4000 Dräger FPS 7000

Dräger X-PID

Dräger X-am® 2800

BR EA

GAS DETEC TI

APPARA T U S ING TH

N O

Dräger X-Zone®

Dräger Compressed Air Breathing Cylinder

Dräger PAS® AirPack 1

Decommissioning

Dräger X-Dock®

with Dräger S E RV

Dräger PAS® Colt

IC ES

Dräger X-plore® Respiratory Masks

Accessories Training

Service Personnel

Dräger FaceFit Testing

Protecting lives against all hazards From gas detection to breathing apparatus, we can offer you a complete solution for your decommissioning requirements. Our dedicated team are on hand to offer servicing, training and facefit testing to make sure that you not only have the products to keep you safe, but you also have the skills and know how to ensure you and your team can get the job done without stress!

www.ogv.energy I November 2024

INTERNATIONAL GROWTH

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Paul Davidson

Safety Solutions for North Sea Decommissioning As the North Sea faces an increase in offshore decommissioning projects, attention to safety, efficiency, and cost management for decommissioning is more prevalent than ever. The North Sea has over 500 installations with an average age of 30 years.

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he challenge for operators and specialist contractors lies in decommissioning these assets in a safe, cost-efficient and environmentally responsible manner.

Dräger, a leader in marine and offshore safety solutions and the only safety equipment manufacturer based in Aberdeen, provides the comprehensive support necessary for operators and specialist contractors serving this market to manage these challenges effectively.

The Hazards of Decommissioning Decommissioning often involves issues such as the management of hazardous waste fluids, and the presence of toxic and flammable gases like methane, hydrogen sulphide (H2S), and benzene. In some cases, historical record-keeping may be inconsistent, adding to a lack of clarity over operational conditions.

Before a project begins, it's important to conduct a thorough assessment of the asset and its risk potential. For example, Dräger collaborates with customers and Health, Safety, and Environment (HSE) officials to develop comprehensive hazard management plans. These are designed to meet HSE guidelines, ensuring compliance with regulations and preparing operations through method statements and response protocols.

Gas monitoring is often a critical component of decommissioning support. Dräger deploys teams offshore to conduct continuous gas testing, using advanced detection equipment to monitor for harmful substances. Personnel are equipped with the appropriate Personal Protective Equipment (PPE) and breathing apparatus, ensuring they can respond quickly to changes in the environment. Additional

options such as installing extraction systems may also be required to maintain safe working conditions.

Technological Innovation: Safe Made Simple Technology improves the efficiency of decommissioning projects. Dräger’s Gas Detection Connect (GDC) digital solution integrates detection device data for real-time monitoring, enabling quicker responses to hazards. With timestamped audit trails and live updates, it means potential hazards can be identified faster and more effectively​.

Dräger’s X-pid provides selective gas measurement and is ideal for frequent tests of hazardous toxic substances such as Benzene and Butadiene. The intuitive sensor unit identifies multiple gases without the need for specific sensors, providing versatility and efficiency. Similarly, the Dräger X-act 7000 opto-electronic analysis device can monitor hazardous substances like benzene and mercury with one device utilising Drager MicroTubes in the low ppb range and providing precise results onsite - replacing slow expensive lab analyses.

Digital solutions enhance information transfer, providing onshore teams with real-time data for decision-making and continuity.

Cost Efficiency Reducing costs without compromising safety is a priority. Traditionally, safety equipment was purchased outright by operators.

However, Dräger offers flexible safety equipment hire as a cost-effective alternative, allowing customers access to the latest technology while preserving capital.

Hire packages cover not only the equipment but also maintenance, certification, and user training. This approach ensures that workers can handle the equipment, while also providing the latest safety innovations.

Dräger’s rental fleet, which includes over 9,500 items, is capable of rapid mobilisation, ensuring that operators have the necessary equipment on-site when they need it.

Protecting Lives Against All Hazards Dräger’s North Sea experience underscores its commitment to safety. In one project, Dräger encountered unexpected hazards beyond the initially identified benzene risk, including H2S. The team deployed a portable gas extraction system, which not only monitored but removed the hazardous gases, allowing work to continue.

In another case, Dräger solved a methane issue by conducted a survey, identifying the leak, and installing a portable extraction system to manage gas levels, allowing operations to resume safely.

Your Safety Partner Dräger integrated safety solution combines equipment and expert teams for hazard identification, gas testing, and monitoring.

All the equipment is manufactured by Dräger, ensuring the highest quality and reliability. This streamlined approach allows for immediate deployment of equipment and personnel, minimising lead times and ensuring compliance with safety standards.

Dräger’s comprehensive training programs ensure offshore teams are competent and equipped for any situation.

Your Safety is Our Passion Decommissioning requires a combination of advanced technology, expertise, and flexibility.

As a leader in offshore safety solutions, Dräger offers a comprehensive solution to ensure the safe, efficient, and cost-effective execution of decommissioning projects.

Through its innovative technology, flexible equipment rental solutions, experienced personnel and training expertise, Dräger makes sure that when it comes to decommissioning, everyone can breathe easier. 

CONTACT paul.davidson@draeger.com.

Abu Dhabi Intervention Rentals International Growth INTERVENTION REN RENTTALS

Middle East Flowline Rentals

At Intervention Rentals, we view our Abu Dhabi operation as an extension of our Lunan base, embodying the same high standards, certifications, and commitment to excellence. Our global expansion is driven by a shared vision, underpinned by the service company values that define us: • • • • •

Ethics & Integrity: Upholding transparency and trust in every operation.

Client Focus: Prioritizing your needs with unwavering dedication.

Knowledge & Expertise: A team equipped with deep industry insight and domain expertise.

Product Availability: Full suite of innovative equipment and solutions now available in Abu Dhabi.

Support: Seamless operational support and collaboration from our U.K. headquarters.

By extending our practices, policies, and resources, we ensure that our clients in Abu Dhabi benefit from the same exceptional service and reliability they’ve come to expect from Intervention Rentals in the U.K.

www.interventionrentals.com

sales@interventionrentals.com

INTERVENTION REN RENTTALS

INTERNATIONAL GROWTH

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THREE60 Energy: Establishing a New Entity in the UAE to Drive Regional Growth Since establishment, THREE60 Energy has been on an upward growth trajectory, with new entities established in key energy hubs around the world and strategic acquisitions to add to an already attractive complete asset life cycle offering.

For several years, the Middle East region has been a key growth area identified by the group’s CEO, Walter Thain. With ambitious targets under its Net Zero by 2050 strategy, the United Arab Emirates (UAE) has positioned itself as a leader in the global energy transition being the first country in the Middle East and North Africa (MENA) region to commit to net-zero emissions by 2050.

THREE60’s decision to prioritise this region and establish a new entity in the UAE aligns with our mission to support that transition, create jobs and reduce emissions, all whilst enhancing the country’s capacity to meet its energy needs in line with the Paris Agreement.

As a major energy services company with strong presence in Europe and Southeast Asia, we are committed to exporting our

engineering, operations and technology expertise, to support key players in the UAE achieve their energy diversification goals.

In today's rapidly evolving energy landscape, diversification is not just a strategy; it's a necessity and has been the cornerstone of our growth in recent years. We have focussed on three key areas: geographical expansion through a combined organic and acquisition strategy, the energy transition and digital transformation.

Over the past few years, THREE60 has successfully entered several new markets, including North and South America. This expansion has not only increased our market presence but also allowed us to better serve our global customer base. By establishing a

local presence in key regions, we have been able to provide tailored solutions that meet the unique needs of each market. Moving forward we see huge potential and opportunities for growth in the Middle East and Africa with the UAE being our key entry point into the region.

In the UAE, we are enhancing our presence to support the country’s ambitious energy projects. The focus on solar, wind, nuclear, hydrogen and carbon capture align with our expertise, particularly in CCUS and renewable energies. Our work on the Hinkley Point C nuclear power plant in the UK, positions us to contribute to initiatives like the Barakah Nuclear Energy Plant which aims to supply up to 25% of the UAE’s electricity.

Our recently established Digital Transformation team has been working with our customers to digitalise and streamline raw data into useful management information. For example, we’ve made daily operational data easily accessible to drilling engineers by replacing static formats like PDFs, emails, Word documents and Excel spreadsheets with digital webbased applications. This automation of data pipelines has fully digitalised daily drilling reports, providing immediate time, cost, HSE and performance tracking.

These digital advancements, aligned with ADNOC’s ongoing digital transformation goals to leverage artificial intelligence to enhance efficiency, have saved drilling engineers significant time and effort, allowing them to focus on planning new wells. Additionally, this information has made complex domain science accessible to more stakeholders, improving decision-making during critical drilling operations.

Organic growth has been another critical component of our diversification. At THREE60, we believe that growth should be sustainable and driven by our core values: Integrity, Collaboration, Challenge and Ownership. By continuously improving our service offerings and investing in our people, we have created a scalable platform for future growth.

At THREE60, we value our team as our most important asset; by fostering a culture of continuous learning and development, we have empowered our employees to drive innovation and excellence. We recently committed to a program of training and skills development for our employees, to educate and inform on key topics in the industry including CCUS. This investment in talent development has not only enhanced our technical capabilities but also ensured that we remain agile and responsive to market changes. 

To find out more, visit www.three60energy.com

INTERNATIONAL GROWTH

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subsea battery and a J+S Subsea control unit, housed in a DNV-compliant steel frame.

A critical factor in the timely delivery of this project was J+S Subsea’s Legacy Locker, a portal for the re-use and refurbishment of subsea equipment, promoting sustainability and shortening lead times.

This success aligns with J+S Subsea’s broader growth strategy in subsea controls, renewables, and decommissioning sectors.

The company is targeting revenues of over £10 million, following its largest contract since a management buyout.

Milestone project puts new pin on the map for subsea controls specialist J+S Subsea has completed its first project in Canada, marking a significant milestone in the company’s international expansion.

T

he Kintore-based subsea controls specialist provided three battery-powered control systems to maintain the integrity of subsea electrical infrastructure when topside power is unavailable.

Delivered in collaboration with Viper Innovations, Verlume, Richmond Mills Fabrication, and others, the project involved designing, engineering, manufacturing, and

testing systems that support Viper’s V-LIFE technology. This technology maintains electrical integrity 350 km off the coast of Canada during scheduled maintenance of a Floating Production, Storage & Offloading (FPSO) vessel.

The systems, which can be recharged onshore or on a Construction Support Vessel (CSV) and redeployed for 90 days, include a Verlume

Commenting on the achievement, J+S Subsea Managing Director Phil Reid said: “Our Legacy Locker and in-house technical expertise were pivotal in accelerating turnaround time for this bespoke project, supporting our sustained growth strategy.”

Richard Knox, CEO of Verlume, added: “Integrating our Charge compact subsea battery with technologies from J+S and Viper Innovations allowed us to collaboratively solve client power challenges, ensuring reliable subsea power delivery.”

Viper’s Sales (Subsea) and Delivery Director, James Carnegie, remarked: “Working with J+S Subsea on this project highlighted the benefits of collaboration and innovation. It also offered a unique opportunity to diversify our V-LIFE and V-SLIM technology into a new application.”

To find out more, visit www.jands.co.uk

Navigating the Growth and Diversification of the Global Energy Industry As the world moves through an accelerating and deep energy transformation, the conversation has shifted towards how we transition from traditional energy sources to new, sustainable forms of energy.

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he energy transition is not just about moving from fossil fuels to renewables; it’s about reshaping our entire energy landscape, to deliver long term secure, reliable and economic solutions for industries and everyday life. At Kent, we see this challenge from a unique vantage point, understanding both the intricacies of the existing infrastructure and the complexity and diversity of future energy systems.

The Energy Transition is More Than Renewables Global attention is rightly focused on renewables—offshore wind, solar, hydrogen, and carbon capture. These technologies are not only essential to meeting decarbonisation targets but also represent the future of energy. Offshore wind, in particular, has shown tremendous potential, and we can now capture vast amounts of clean energy from turbines sited around our coasts. But as anyone in the industry will tell you, generating energy offshore is only part of the story.

The real challenge lies in the next step— making this clean energy available to end users, typically through an energy grid. This is where diversification goes beyond technology.

Existing oil and gas infrastructure, as well as the power networks connecting our cities and towns, need significant upgrades to meet the dynamic needs of tomorrow’s energy landscape. The road to energy diversification involves adapting, repurposing and enhancing our aging systems, while building new infrastructure capable of supporting a future dominated by renewables.

Adapting Existing Infrastructure One of the most underappreciated aspects of the energy transition is the continued

importance of oil and gas. While the global push towards renewables is gaining speed, oil and gas will remain a critical part of the energy mix for the foreseeable future. But this doesn’t mean business as usual. The focus is on adapting existing assets to be more efficient, safer, and cleaner using a wide range of approaches to reduce greenhouse gas emissions.

coal, natural gas, and nuclear plants. Wind and solar are intermittent by nature, requiring a grid that is far more flexible and resilient, with the ability to store and synchronise many energy sources including storage.

At Kent, we work with clients across the globe to retrofit and upgrade oil and gas facilities to ensure they can operate with lower emissions while maintaining their role as reliable energy sources. This work includes carbon capture and storage (CCS), increasing the efficiency of energy extraction, by capturing fugitive emissions, and improving safety and environmental standards.

In recent years, geopolitical tensions have highlighted how energy can be wielded as both a strategic asset and a pawn in international conflicts. Disruptions in supply chains, sanctions, and energy dependencies have underscored the vulnerabilities of relying too heavily on foreign energy sources. As a result, regional energy security has become a top priority for many nations. Governments have accelerated efforts to diversify their energy portfolios, investing in domestic renewable energy projects like offshore wind, and reducing their reliance on imported oil and gas. At Kent, we support these initiatives by delivering resilient, flexible energy solutions that enhance regional security while driving the global energy transition forward.

In addition, oil and gas platforms are being considered as staging points and demand for offshore wind projects, or even being integrated into hybrid systems that generate and store energy. This diversification strategy not only extends the life of these assets but also bridges the gap between traditional and new energy systems.

Building Resilient and Flexible Power Grids When we talk about transitioning to renewables, it’s easy to focus on the generation of energy and overlook the distribution challenge. But bringing large amounts of offshore wind power onshore and integrating it into existing grids is a monumental task.

Our cities and towns rely on electrical infrastructure that was not designed to handle the demands of large-scale renewable energy.

The grid, as it stands, is built for steady, centralised power generation—primarily from

Changing Geopolitical Dynamics and Energy Security

Conclusion: A Holistic Approach to Energy Growth At Kent, we understand that the energy transition is not just about adopting new technologies but rethinking how we generate, store, transport and use energy. The growth and diversification of the energy industry are as much about modernising existing infrastructure as they are about embracing renewables. A sustainable future requires a holistic approach—one that integrates oil and gas, offshore wind, smart grids, and decarbonisation into a cohesive strategy. 

To find out more, visit www.kentplc.com

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Discover how Digitising Reality is transforming the future of energy. Our advanced drone-based emissions monitoring solutions, powered by AI and digitalisation, enable businesses to reduce their carbon footprint, enhance operational efficiency, and stay ahead of environmental regulations. By providing real-time insights and data-driven decisions, we empower organisations to operate more sustainably while driving long-term growth.

Partner with us to unlock the potential of smarter, cleaner energy solutions for a better tomorrow.

Digitising Reality is transforming asset and infrastructure management by synergising innovative technologies and software into a revolutionary and seamless management solution.

Hazard and Emissions Monitoring – Digital Twins – Asset Surveys and Inspections

Learn more at ADIPEC 2024. Visit us at the SDI Pavilion (Hall 8: Stand 8450)

WWW.DIGITISINGREALITY.COM ABERDEEN | LONDON | HOUSTON CERTIFIED BY:

INNOVATION & TECHNOLOGY

SPONSORED BY

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The UK’s largest innovation funding consultancy Leyton is an international consulting firm that helps businesses leverage financial nondilutive incentives to accelerate their growth and achieve long lasting performance.

We simplify your access to these complex incentives. Our combined teams of highly skilled Tax and Technical specialists, enhanced with cutting-edge digital tools developed internally, maximise the financial benefits for any type of businesses.

www.leyton.com

With compliance always front of mind, we have been delivering optimal services for our clients for over 24 years. This provides peace of mind that you will always receive the maximum benefit, without taking risks.

Leveraging Existing Infrastructure to Accelerate Transition: One of the oil and gas industry’s most significant advantages is its extensive infrastructure network, which spans across continents, facilitating the storage, transportation, and distribution of energy resources. This infrastructure can be repurposed to support renewable energy sources, including the transmission of electricity generated by solar and wind farms or the transportation and storage of hydrogen. The industry’s access to deepwater ports and drilling capabilities can also be harnessed for the development of offshore renewable projects, such as offshore wind farms and tidal energy installations. Such initiatives not only foster collaboration but also enable effective and economical use of existing infrastructure for the benefit of the energy transition.

Fuelling International Growth: The Pivotal Role of the Oil and Gas Industry in the Energy Transition The global energy landscape is undergoing a profound transformation, marked by a growing emphasis on sustainability and the urgent need to address climate change.

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he oil and gas industry, as the backbone of the world’s energy supply, finds itself at the epicentre of this transition. While some may view oil and gas as antiquated relics of the past, this article postulates that the industry, with its vast resources and expertise, has a critical role to play in driving the energy transition and propelling international growth.

Recognising the Dual Nature of the Oil and Gas Industry: It is crucial to acknowledge that the world’s energy transition cannot happen overnight. The oil and gas industry, despite its environmental challenges, remains an essential component of global energy systems, satisfying more than half of the world’s energy demand. The industry’s vast infrastructure, established supply chains, and technological advancements can be repurposed to accelerate the growth of sustainable energy sources while fulfilling the

Jessica McGlynn, PhD

Assistant Manager - R&D Tax Incentives, Leyton UK

interim energy needs of developing nations.

By embracing this dual responsibility, the oil and gas industry can lay the foundation for a successful energy transition.

Investing in Renewable Energy Technologies: Forward-thinking oil and gas companies have recognised the great potential of renewable energy sources and have begun investing in innovative technologies. With their extensive research and development capabilities, they can capitalise on their experience in complex science and engineering projects to drive substantial progress in wind, solar, hydrogen, and carbon capture technologies. The effective deployment of these technologies, coupled with their existing knowledge in project management and operational efficiency, allows the industry to facilitate widespread adoption and integration of renewables, leading to a cleaner and more sustainable energy mix.

Powering International Growth and Economic Stability: The energy transition presents an opportunity for the oil and gas industry to expand its global reach and drive economic growth. By diversifying their portfolios and adopting a more holistic approach, companies can position themselves as leaders in both fossil fuel extraction and renewable energy production. This will subsequently attract investments, create job opportunities, and bolster local economies, particularly in regions heavily reliant on traditional energy sources. The industry’s know-how in project management and technical expertise can be shared with developing nations to aid their energy transition journeys, promoting international co-operation, and fostering sustainable development.

The oil and gas industry, far from being a hindrance to the energy transition, can be a catalyst for change. Its extensive resources, expertise, and infrastructure serve as valuable tools to steer the world towards a sustainable energy future. By embracing the dual nature of the industry, investing in renewable energy technologies, leveraging existing infrastructure, and fuelling international growth, the oil and gas industry can play a pivotal role in shaping a cleaner and more prosperous world for future generations. 

For more information visit: leyton.com

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LEGAL

Supplying Upstream Oilfield Equipment And Services To Abu Dhabi – Who, What And How

While statistics fluctuate about the discovery of new reserves, the United Arab Emirates is consistently recognised as the custodian of one the largest concentrations of hydrocarbon reserves in the world.

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ithin the U.A.E, approximately 96% of the proven oil reserves are located in the Abu Dhabi Emirate. The Abu Dhabi National Oil Company (ADNOC) is a fully integrated energy company and the U.A.E.'s largest oil and gas producer, operating a series of affiliated group companies across the entire hydrocarbon value chain - upstream, midstream and downstream.

For new and existing suppliers of goods and services, Abu Dhabi is an attractive place to do business. The key to that opportunity is knowing how the process works.

Supply Chain For Upstream Oil And Gas Activities In Abu Dhabi To drill, construct, test, complete, operate and produce oil and gas wells in Abu Dhabi, the ADNOC Group and IOC concession partners procure from domestic and international providers of oilfield equipment and services.

For international oilfield equipment and services providers looking to do business in the upstream sector of Abu Dhabi's hydrocarbon value chain, this can be achieved by participating in procurement and tendering activities with: • ADNOC, the headquarters of the Group; • the ADNOC Upstream Group Companies, including ADNOC Drilling, ADNOC Offshore, ADNOC Onshore, ADNOC Sour Gas, Al Dhafra Petroleum and Al Yasat Petroleum; and/or • International concession holder companies.

Parties may also look to subcontract to other oilfield and equipment services providers and/ or partners, on the basis of a principal and agent relationship for the importation of equipment.

New Business Set-Up In The U.A.E. At the end of 2020, the Federal Government of the U.A.E. introduced a number of historic and positive shifts in policy relating to foreign ownership and investment (through legislative changes to the Commercial Companies Law (Federal Law No. (2) of 2015 on Commercial Companies). Most notably, the amending law annuls the requirement for commercial companies to appoint a U.A.E. national agent or majority shareholder for certain business activities. This enables 100% foreign ownership of certain onshore companies in the U.A.E. However, there are some important caveats and restrictions: • the Abu Dhabi Department of Economic Development (ADDED) and the Dubai Economic Department (DED) have a list of business activities that are eligible for 100% foreign ownership; • companies carrying on activities with a “strategic impact” will continue to be subject to foreign ownership restrictions, including for example, certain oil and gas activities; and • the Federal Decree Law in 2020, which amended the Commercial Companies Law, authorises the UAE Cabinet to set up a committee that includes representatives of the relevant authorities with a view to proposing activities of strategic impact and the measures required to license companies that operate in such areas. Upon the recommendation of the committee, the Cabinet will stipulate the activities considered to be of strategic impact and the required measures for licensing such companies.

Josh McFadzen is a partner in Brodies Middle East LLP, specialising in oil and gas.

Supplying Goods And Services To The ADNOC Group For new suppliers with an operational presence in the U.A.E, the first step is to obtain a commercial licence issued by the designated authority, such as ADDED, with the concerned business activities on the licence.

U.A.E-based manufacturers will have an industrial licence issued by a competent authority in the Emirate where the plant is located. For international equipment or service providers without operations in the U.A.E, they can partner or be represented by an Abu Dhabi-based supplier.

Overseas manufacturers (principals) can register through their local agent (a company based in Abu Dhabi with a relevant commercial licence), with a valid and attested agency agreement between the agent and the manufacturer.

The second step is supplier registration in the ADNOC supplier hub - a single platform covering the entire procure-to-pay value chain. The registration process is centralised for the entire ADNOC Group, which means that registered suppliers can do business with all ADNOC Group companies.

Once a company has successfully registered, the third step is for suppliers to prequalify against a material/product group (for supply of goods) or work groups (for supply of services), in order to be entitled to invitation to future tenders for those sub-groups. 

Want to know more?

ADIPEC 2024 www.ogv.energy I November 2024

Energy experts from Brodies Middle East LLP and Brodies LLP will attend ADIPEC 2024. Use the QR code to find out how to get in touch during or after the conference.

RENEWABLES

Offshore wind Your partner in the energy transition Optimizing the performance of your offshore wind assets to generate and transmit clean power efficiently and sustainably. abb.com

ORE Catapult welcomes Great British Energy commitment to invest in UK supply chains and infrastructure

Kent Secures Contract for Concept Design of Offshore Substation for Five Estuaries Offshore Wind Farm Kent has secured a new contract with RWE Renewables UK for a Concept Design study of an HVAC Offshore Substation Platform for the Five Estuaries Offshore Wind Farm.

This project will extend the operational Galloper Wind Farm and is expected to power hundreds of thousands of homes upon completion.

The Offshore Renewable Energy (ORE) Catapult has expressed its enthusiasm following the recent announcement by Ed Miliband on 17th October 2024.

The announcement highlighted a new partnership between the UK and Scottish Governments for Great British Energy to collaborate with Scottish public bodies.

This partnership aims to support clean energy supply chains and infrastructure and accelerate the delivery of a ‘skills passport’ to facilitate the transition of oil and gas workers into the offshore wind sector.

The announcement was made during a tour of ORE Catapult’s Floating Wind Innovation Centre (FLOWIC) in Aberdeen, the world’s first facility dedicated to floating offshore wind innovation. Energy Minister Michael Shanks and Great British Energy Chair Juergen Maier joined the Secretary of State on this tour,

which included a look at the state-of-the-art testing facilities and virtual reality training simulators.

Ronnie Bonnar, Chair at ORE Catapult, emphasised the importance of developing supply chains for the successful deployment of offshore renewables across Scotland and the UK. He noted that FLOWIC, being the only dedicated floating offshore wind innovation centre globally, is crucial to maintaining the UK’s leadership in this sector. ORE Catapult looks forward to collaborating with Great British Energy to enhance the UK innovation ecosystem, strengthen supply chain capabilities, and solidify the UK’s position as a Clean Energy Superpower. 

Cerianne Cummings, Offshore Wind Market Director at Kent, expressed, “We are extremely proud to be part of this journey with RWE and Five Estuaries.

Our team is committed to working collaboratively to ensure the success of the project, now and as it progresses."

Kent, a global integrated energy services provider, is pleased to announce the new contract, led by RWE, a leading renewables developer. The Five Estuaries Offshore Wind Farm is a sister extension project of the existing £1.5 billion, 353MW Galloper Wind Farm, located off the coast of Suffolk. First power from Galloper was generated in November 2017, becoming fully operational in March 2018. Each year, Galloper Wind Farm’s 56 turbines generate enough green electricity to power the equivalent of more than 444,000 UK homes. The proposed wind farm is situated approximately 37 kilometers off the Suffolk/Essex coast and is planned to be fully operational by 2031. 

OGV Renewables Sponsored by: new.abb.com/process-automation/energy-industries

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CONTRACTS

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Infinity Partnership: Your Partner in Business Infinity Partnership is an award-winning, multi-disciplinary accountancy and business advisory practice, with a proactive approach to customer service.

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Infinity has been a five-time winner at the British Accountancy Awards and has been a three-time finalist at the Scottish Accountancy Awards in recent times.

Transocean announces $193 million ultra-deepwater drillship contract in Gulf of Mexico Transocean Ltd. today announced a one-year contract for the Deepwater Conqueror with an undisclosed operator in the U.S. Gulf of Mexico. The contract is expected to commence in October 2025 and contribute approximately $193 million in backlog, including additional services.

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultradeepwater floaters and eight harsh environment floaters. 

ADC Energy awarded 2-year contract by Totalenergies E&P Suriname B.V.

Part of ADC’s bid outlined a commitment to providing continuity from the previous contract held between 2020 and 2022 where ADC Energy assisted TotalEnergies with the selection, reactivation and acceptance of the Noble Developer, Noble Valiant, Noble Gerry de Souza and the Transocean Development Driller III MODUs. The 2020 contract also included onshore monitoring of Factory Acceptance Testing (FAT) and onboard installation and commissioning of the Kinetic Pressure Control “K-BOS” system.

The collaboration is poised to enhance operational efficiencies while maintaining stringent safety protocols. ADC Energy’s seasoned subject matter experts will conduct thorough evaluations and inspections of the drilling rigs to ensure they are fully compliant with industry regulations and tailored to the specific needs of the GranMorgu development, which aims to enhance TotalEnergies’ exploration and production capabilities in Suriname and expected to contribute substantially to the region's energy landscape.

Following a commercially competitive tender where ADC was able to demonstrate its added value through utilising cutting-edge technological approaches to operational assurance and over 38 years of expert experience, ADC was awarded the 2 years contract, with 1 year option.

This significant collaboration will see ADC Energy playing a pivotal role in the selection and acceptance of up to three offshore drilling rigs for TotalEnergies’ ambitious GranMorgu development project offshore Suriname. ADC will service the contract with support from both its headquarters in Aberdeen and from its US business unit, ADC Rig Inspection Americas Corp. in Houston.

www.ogv.energy I November 2024

Early this month, Offshore Energy reported that the French energy giant has now sanctioned the GranMorgu development, which is interpreted to mean both “new dawn” and “Goliath grouper” in the local language called Sranan Tongo.

The GranMorgu project will develop the Sapakara and Krabdagu oil discoveries, on which an exploration and appraisal campaign was completed in 2023. The fields are located 150 km off the coast of Suriname and hold recoverable reserves estimated at over 750 million barrels in water depths between 100 and 1,000 meters.

According to TotalEnergies, the project leverages technology to minimize greenhouse gas emissions, with a scope 1 and 2 emissions intensity below 16 kg CO2e/boe, thanks in particular to an all-electric floating production, storage, and offloading (FPSO) unit configuration. 

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McDermott secures FEED contract in Mozambique McDermott, through a consortium with Saipem and China Petroleum Engineering and Construction Corporation, has been awarded a frontend engineering design (FEED) contract for the Rovuma LNG Phase 1 project in Mozambique, it said on September 30.

The Rovuma LNG project will include an LNG plant with a production capacity of 18mn tonnes/year, made up of 12 fully modularised LNG trains, each capable of producing 1.5mn tonnes/year. MRV is a joint venture of ExxonMobil, Eni, and CNPC. The project includes liquefaction and export of natural gas extracted from the Offshore Area 4 fields off the Afungi Peninsula in Mozambique.

The FEED contract scope of work includes the modular design of a greenfield LNG production facility in Afungi, all associated gas pretreatment units and the utilities and offsite systems to support the LNG production.

Rovuma LNG is expected to strengthen Mozambique's position as an energy-producing nation, a role already highlighted by the recent startup of the Coral South project. Mozambique shipped its first LNG cargo in November 2022, with Eni’s Coral Sul FLNG offering a liquefaction capacity of 3.4mn tonnes/year. 

TechnipFMC pick up two contracts with Petrobras UK-headquartered energy technology provider TechnipFMC has landed two new subsea assignments with Brazil’s state-owned energy giant Petrobras, allowing it to work on three offshore oil fields in the Brazilian pre-salt area.

TechnipFMC describes its first award as a substantial contract, enabling between $250 million and $500 million to be included in inbound orders in the third quarter of 2024, for the design, engineering, and manufacturing of riser flexible pipe and the supply of associated services, including packing and storage.

The UK player has presented its second award, which followed a competitive tender, as a significant contract, bringing between $75 million and $250 million in inbound orders, to design, engineer, and manufacture subsea production systems for deployment on the Atapu 2, Sepia 2, and Roncador projects.

In addition, the deal entails installation support and life-of-field services, alongside the option for additional equipment and services. TechnipFMC claims that all equipment and products will be manufactured and serviced locally, leveraging core capabilities in Brazil that make the continued development of pre-salt reserves possible.

Jonathan Landes, President of Subsea at TechnipFMC, commented: “These awards underscore our leadership position in flexible pipe technology, and the proven success of our standardized equipment platform that was effectively deployed for Petrobras on the Buzios 6-9 fields.

“Our nearly 70-year legacy in Brazil reflects our deep commitment to the region and highlights our continuing support of Petrobras’s strategic vision. We will draw on our extensive in-country operations to deliver on these contracts.”

The deal with TechnipFMC comes weeks after Petrobras hired OneSubsea to deliver pre-salt subsea production systems and related services for the second development of the Atapu and Sepia oil fields in the strategically important Santos Basin. The Brazilian giant and its partners in the Atapu and Sépia consortiums made the final investment decision (FID) for the second development phase of these fields at the end of May 2024.

The projects will enrich Brazil’s floating production, storage, and offloading (FPSO) vessels’ pool with two new all-electric FPSOs,

P-84 (Atapu) and P-85 (Sepia), being built by Seatrium, thanks to an $8.16-billion contract. These FPSOs are expected to start their jobs in 2029.

While the Atapu field has been producing since 2020 through the FPSO P-70, with a production capacity of 150,000 barrels of oil per day (bopd), the second development phase, Atapu-2, will comprise a new-built FPSO of 225,000 bopd capacity. Petrobras owns an interest of 65.7% in the Atapu field, in partnership with TotalEnergies (15%), Shell (16.7%), Petrogal (1.7%), and PPSA (0.9%).

The Sépia field, which has been producing since 2021 through the FPSO Carioca with a production capacity of 180,000 bopd, is also getting its second development phase, Sépia-2, which will comprise a new-built FPSO of 225,000 bopd capacity. The Brazilian heavyweight has an interest of 55.3% in the Sépia field, in partnership with TotalEnergies, (16.9%), Petronas (12.7%), QatarEnergy (12.7%), and Petrogal (2.4%).

On the other hand, Petrobras, as the operator with a 75% equity in the Roncador field, started production from the first two wells of the increased oil recovery (IOR) project in April 2022. This field is considered to be Brazil’s fifth largest producing asset and has been in production since 1999. The Brazilian energy giant’s partner is Equinor, which has held a 25% equity since 2018. The FPSO P62 works at the Roncador field.

These projects show Petrobras’ determination to continue its hydrocarbon growth story in Brazil and elsewhere as confirmed within its strategic plan for 2024-28. Following the start-up of Mero-2 in late 2023, more oil and gas projects are in the Brazilian giant’s pipeline, including the start-ups of Mero-3 in 2024 and Mero-4 in 2025.

Meanwhile, TechnipFMC recently completed its work for ExxonMobil at a gas-to-energy (GtE) project off Guyana’s Atlantic coast. The project aims to enable infrastructure buildout for natural gas transport from an oil field in the Stabroek Block to an integrated natural gas liquid (NGL) plant and a 300 MW combined cycle power plant at Wales on the West Bank of Demerara.

The development plan outlines that an ExxonMobil-led consortium is in charge of constructing a 12-inch diameter pipeline network and footing the bill of around $1 billion to connect the pipeline to the Liza Phase 1 and 2 projects in Guyana’s ultra-deep waters.

After the gas-to-energy project suffered a six-month setback, the total cost estimate rose from $1.7 billion to about $1.9 billion, with the first gas bumped to 2025. 

CONTRACT AWARDS SPONSORED BY

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DECOMMISSIONING

SPONSORED BY

SAFE, SMART & EFFICIENT The complete package for well decommissioning

www.wellsafesolutions.com

Well-Safe Solutions provides a ground-breaking approach to the safe and cost-efficient decommissioning of on and offshore wells. We offer a specialist well abandonment service that allows operators to meet the challenges and regulatory imperatives around decommissioning, while significantly reducing costs.

North Sea regulator threatens to name oil groups for decommissioning delays Oil and gas companies face the threat of being named and shamed in the UK for failing to meet decommissioning deadlines for empty wells, Britain’s North Sea regulator has warned.

The regulator warned that a lack of available work will disrupt supply chain stability and cause specialist decommissioning vessels “to literally sail away” from UK waters.

North Sea decommissioning is currently estimated to cost £10bn between 2023 and 2032. Supply chain disruption could raise costs further, the NSTA warned.

Payne described decommissioning as “a huge bridge opportunity” from oil and gas into future projects, such as carbon capture and storage.

“But if the rigs continue to leave the basin because industry can’t trust that the work is actually going to happen, then we make the transition harder,” he added.

Glenn Kangisser, a partner at law firm Haynes and Boone, who specialises in offshore energy, said a transparent register would “help the supply chain by providing clarity around upcoming projects”.

The North Sea Transition Authority has opened a consultation over plans to impose more transparency on an industry that has fallen behind targets for “plugging and abandonment” as reserves run dry.

“Not only do missed deadlines knacker the credibility of the industry — and they do — they cause a huge problem for the supply chain,” Stuart Payne, chief executive of the NSTA, told an industry conference.

Investigations have already been opened on two companies for failing to meet deadlines, Payne said, but their identities have not been disclosed.

The consultation will decide whether to name those under investigation, to publicise those behind schedule on decommissioning, and issue a league table of performance.

While an average of 120 wells each year have been decommissioned between 2018 and 2023, there are still 940 inactive wells outstanding and more than 500 have slipped behind their original deadline, the NSTA said.

But he added: “I suppose you will also have to look at how the public and investor community react towards the publication and publicity around breaches. And you can consider whether NGOs might seek to amplify publication of breaches, which might in itself prompt action.”

Oil and gas operators in the North Sea, many of which have been putting off plugging wells in the hope of passing on the cost to others, also face an uncertain fiscal regime.

The UK’s new Labour government has said it will increase a levy on energy profits and end investment allowances.

The government is also consulting on a plan to halt the issuance of new exploration licences.

The oil and gas industry has warned that an overly aggressive tax regime will cut investment into the North Sea offshore sector, jeopardising jobs and damaging the supply chain needed to accelerate renewable energy. 

More new decommissioning news available @READ MORE DECOMMISSIONING NEWS ON OUR WEBSITE https://www.ogv.energy/news/decommissioning

www.ogv.energy I November 2024

DECOMMISSIONING

Solan Oil Field Decommissioning, North Sea, UK The Solan oil field, discovered in the early 1990s, is situated in the northern part of the North Sea, west of the Shetland Islands on the fringes of the Atlantic Ocean.

The decommissioning programme of the Solan oil field is anticipated to commence in 2026.

The Solan oil field, discovered in the early 1990s, is situated in the northern part of the North Sea, west of the Shetland Islands on the fringes of the Atlantic Ocean.

The field is wholly owned and operated by Premier Oil UK, a subsidiary of Harbour Energy.

It is anticipated that production at the Solan field will become sub-economic by late 2024, leading to the cessation of operations.

The environmental impact assessment for the decommissioning process was issued in May 2024.

Decommissioning activities at the Solan field are expected to commence in 2026 and continue until 2031.

Project location The Solan field lies 129km west of the main island of Shetland and 165km north of mainland Scotland. It is positioned in Block 205/26a of the United Kingdom Continental Shelf.

Solan field details

The field includes three production wells, P1, P2 and P3, supported by water injection wells W1 and W2, which are connected to the Solan platform.

The Solan platform has an integrated topside mounted on a four-legged jacket substructure, which is anchored to the seabed with 16 piles. The jacket stands at a height of 158.5m, with dimensions of 20m by 20m at the top and 45m by 45m at the base.

Surface installation decommissioning The Solan topsides will be entirely removed and transported onshore to a recycling and disposal facility, where waste

will be processed in accordance with the waste framework directive. The removal will be executed using a single lift by a semi-submersible crane vessel (SSCV) or single lift vessel (SLV), or by dismantling the topsides into smaller sub-units with a crane vessel or support vessel, such as a monohulled crane vessel.

The jacket will have its legs cut to install lifting aids, aiming for removal in a single lift with the piles being cut internally to a target depth of 3m below the average natural seabed level.

The entire jacket will be transported onshore for recycling and disposal in line with the Waste Framework Directive, with the lift performed by an SSCV or SLV.

Subsea infrastructure decommissioning A fleet of vessels with varying crane capacities will be deployed to support operations such as lifting seabed structures, cutting, backfilling, excavation, rock placement and surveys. Remotely operated vehicles or divers will be deployed to disconnect and cut subsea installations, with vessel cranes lifting them onboard for recovery.

Pipelines, flowlines and umbilicals will be disconnected from subsea and surface structures, with any covering mattresses and grout bags retrieved by the vessel. These lines will then be prepared for decommissioning.

All subsea installations, including the subsea oil storage, single anchor loading, five wellhead protection structures and two wet-stored trash caps, will be fully removed and transported onshore for recycling or disposal. Piled subsea infrastructure will have their piles cut internally where possible and fully recovered.

A post-decommissioning debris survey will be conducted within all 500m safety zones and 50m on either side of PL3095 where it intersects the two 500m safety zones. Any oil and gas debris will be recovered for onshore disposal or recycling, following established disposal methods. 

DECOMMISSIONING SPONSORED BY

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Offshore Field Development Update Offshore O&G-related EPC contract award value year-to-date is estimated at US$40bn (excluding letters of intent), with an additional US$23bn of EPC contract awards still anticipated for the remainder of 2024. During the period under review, TotalEnergies announced FID for its GranMorgu Block 58 development offshore Suriname. The project will develop the Sapakara and Krabdagu oil discoveries and requires a total investment of approximately US$10.5bn, with first oil scheduled for 2028.

Major EPC contract awards recorded in the last 30 days include the integrated engineering, procurement, construction and installation (iEPCI) award to TechnipFMC for BP’s Kaskida development in the US GoM, while Enbridge secured the contract for the project’s export pipeline. TechnipFMC was awarded two contracts across six Petrobras fields offshore Brazil. The OneSubsea JV was awarded a contract to supply two subsea production manifolds, subsea control systems, one electro-hydraulic distribution unit, and tool kits for Petrobras’ Roncador project offshore Brazil.

In the Middle East, McDermott secured the EPCI contract for QatarEnergy’s North Field South – Phase II development offshore Qatar. The project consists of nearly 250km of offshore and onshore gas pipelines. Saipem was awarded work relating to Package-3 for QatarEnergy’s North Field Production Sustainability (NFPS) project offshore Qatar. The award is valued at US$4bn and covers the EPCI of six platforms, approximately 100km of corrosion resistance alloy (CRA) rigid 28-inch and 24-inch subsea pipelines, 100km of subsea cables, 150km of fibre-optic cables and several other subsea facilities. Saipem was also awarded an EPCI contract valued at US$2bn for Saudi Aramco’s Marjan field offshore Saudi Arabia.

Another key contract awarded during the period under review is the announcement

by Golar LNG that it had signed an EPC contract with CIMC Raffles (CIMC) for the conversion of the Fuji liquefied natural gas (LNG) carrier into a floating liquified natural gas (FLNG) unit.

Offshore Drilling Rig Update The global committed jackup count further sustained at 410 units in September.

Marketed available and cold-stacked jackup counts now stand at 35 and 55 respectively, with marketed committed utilisation and total utilisation at 92% and 82%, respectively. During the month, a total of four contracts were awarded, amounting to 1,356 days (3.7 rig years) of backlog added. The Shelf Drilling Achiever that was suspended by Saudi Aramco in April was transported to West Africa to commence a multi-year campaign in October.

The global committed semisubmersible count stayed at 65, with 11 available and 12 cold-stacked rigs remaining in the fleet. During the month, marketed committed remained at 85% with total utilisation growing to 74%. Hercules will be drilling Equinor’s Cappahayden South well at a dayrate of $500k after the rig completed drilling the Sitka discovery well. The rig will remain engaged with the operator through 2024.

Finally, the global drillship count dropped to 80 units during the month, leaving 10 marketed rigs available plus 13 cold-stacked units. Marketed utilisation dropped to 89% with total committed utilisation remaining at 78%. Eight fixtures were recorded in September, of which 47% of awarded days are for drilling activities in Brazil by the Laguna Star and Tidal Action at an estimated dayrate of $450k/day.

Offshore Wind Update Since the last update, Vestas has signed a firm contract to supply 54 V236-15.0 MW turbines for the 810MW Empire Wind Phase 1 project located offshore New York, USA. The contract includes a five-year comprehensive service agreement, designed to ensure optimised performance of the turbines followed by a long-term service support agreement. The turbines are scheduled to begin being delivered in 2026 and completed in 2027. This is the first order that Vestas has received for an offshore wind turbine in the USA. Dominating headlines was news that Equinor has acquired a 9.8% stake in Orsted at a price of approximately US$2.5bn. The transaction establishes Equinor as the second largest shareholder in Orsted, after the Danish State. Equinor has stated it intends to increase its ownership to 10% subject to obtaining regulatory approvals under applicable Foreign Direct Investment regulations.

Finally, the Southern Ocean leasing round in Australia concluded with Alinta Energy and Parkwind being awarded a preliminary feasibility licence for their 1.2GW Spinifex project. Finalisation of the preliminary licence is contingent upon successful consultations with First Nations group. The bid was the only one received across the 1,300km2 area according to Australia's Ministry for Climate Change and Energy. 

www.ogv.energy I November 2024

STATS & ANALYTICS PROVIDED BY

Westwood Global Energy Group are specialist providers of detailed market intelligence for the offshore energy sector, covering; offshore rigs, production facilities, subsea equipment, subsea services, offshore marine and offshore renewables and power.

www.westwoodenergy.com

Offshore Energy Services Dashboard September/October 2024

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UPCOMING HEADER GLOBAL EVENTS

Your Trusted Global Travel Partner

Your Trusted Global Travel Partner

Green Energy Africa Summit 7-11 November 2024 Cape Town, South Africa Web Summit 2024 11-14 November 2024 Lisbon, Portugal

‘International Growth and Diversification in the Middle East’ In the seven years since I came to the Middle East with ATPI, I am immensely proud of the journey we have been on and the success we’ve experienced. needs, and the potential for new partnerships and client relations. At ATPI, we have a longstanding track record of supporting international energy operators through our specialised travel services - many of whom operate globally and where the demand takes them. Our client-led approach ensures that we are motivated to enter new markets proactively, based on the demand from our clients and the industry.

Energy Decentral 12-15 November 2024 Hanover, Germany Utility Week Forum 19-20 November 2024 London, UK ASEAN Clean Energy Week 21-22 November 2024 Manila, Philippines World Hydrogen Latin America 25-27 November 2024 Santiago, Chile

Lynn Coutts Managing Director - Middle East When appointed as Managing Director for the Middle East in 2020, I knew that this was a region with incredible potential for us and one where we wanted to strengthen our presence and cement ourselves as the go-to regional TMC.

MSGBC 2024 3-4 December 2024 Dakar, Senegal

Over four years later, we are well on our way to achieving that.

Energaïa Forum 11-12 December 2024 Montpellier, France

In that timeframe, we have tripled our regional headcount with a team of over 100 incredible individuals in, delivering a full-service offering to the whole GCC from our offices in Dubai. This growth has been made possible because of the talent we attract - and their commitment to ATPI as a company and our goals of making a difference to crew and corporate travellers in the Middle East and globally.

We are proud to have a remarkably low attrition rate of 1.5%.

World Future Energy Summit 14-16 January 2025 ADNEC, Abu Dhabi MEOS Geo 2025 4-6 February 2025 Manama, Bahrain

Regional Growth

E-world energy & water 11-13 February 2025 Essen, Germany

Our internal structure and team culture have translated into higher productivity, creating a framework that has led to a new benchmark of success. In the first two quarters of 2024, we achieved a new record performance in the Middle East thanks to internal expansion and exciting new contracts and developments.

India Energy Week 2025 11-14 February 2025 New Delhi, India

As we demonstrate globally, we’ve shown that prioritising workplace culture and the health and well-being of your team aligns with the strategic goals of our business.

KEY - The Energy Transition Expo 5-7 March 2025 Rimini Expo Centre, Italy Future of Utilities 19-20 March 2025 SugarFactory, Amsterdam

Why the Middle East?

As the travel partner of choice for the global energy industry, we are always looking for regions where we can expand our reach and diversify our offering in line with global energy demand. The Middle East provided us with the opportunity to get involved in a rapidly evolving and exciting market - and we haven't looked back since.

Our strategy for entering new markets is driven by the needs of our established clients, their ongoing travel

VIEW ALL EVENTS AT www.ogv.energy I November 2024 www.ogv.energy/events

Ultimately, this has been the case for the last decade of our presence in the Middle East.

Now, we are experiencing the benefits of this customer-led approach.

Our expansion across the GCC has left our team with the capability to manage complex taxation, invoicing, and localization requirements from DXB and in each service country locally, while providing a seamless, real-time service and full access to all ATPI technologies developed through our expansion and business diversification.

Collaboration To establish ourselves in the market and capitalise on its potential, collaboration has been – and will continue to be – essential. Over the years, we have demonstrated an acute awareness of how the local Middle East market operate. Offering all our leading technologies and service lines, business gateways have allowed us to address and overcome in-country complexities such as tax, invoicing, content,exchange rates, and more specific regulatory requirements.

Since researching the intricacies of the Middle East market, we have demonstrated our commitment to its preferences by partnering with local firms. Creating strategic alliances with local partners and business gateways allows us to expand our network, continue to develop, meet regional customers on their terms, and provide greater support to local travellers, crew, and corporate clients.

ADIPEC presents a key date in the diary to celebrate these collaborations, as well as the ongoing potential of the Middle East market, and the inspiring trailblazers who are driving growth and innovation. By inviting leaders and industry peers across the industry value chain, ADIPEC presents a unique platform to learn, grow, and connect. For ATPI, we look forward to meeting with major operators and showcasing the proven support we can provide. If you would like to find out how ATPI can help streamline your travel management, email:

atpienergytravel@atpi.com

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ELECTRONIC DRILLING RECORDER

The RCP EDR is designed to give operators a clear, unambiguous overview of critical drilling and mud data processes. The system has been developed by RCP to greatly improve how information is presented using the latest industrial technologies and user-friendly interfaces.

The RCP EDR offers a quick and cost-effective solution for clients considering a new installation or a partial upgrade to their existing drilling instrumentation systems. Our highly experienced engineers and software developers allows us to tailor each new system to meet your exact needs meaning that you do not pay for functionality you will never use.

The RCP EDR utilizes a variety of sensing technologies to monitor the drilling processes, (typically: Level, Pressure, Height, Temperature and Flow). Sensor output signals are received by the distributed I/O racks and are then processed by the EDR. Processed information is then transmitted through network communication modules to each of the user interfaces including remotely networked PC’s and local HMI’s. System and operator interface communications may utilize either: Fibre-Optic, Profinet, Profibus or Industrial Ethernet connection.

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