OGV Energy - Issue 30 - March 2020

MAR 2020

UK’s No

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ENERGY SECTOR

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PUBLICATION

REGIONAL REVIEWS Europe & US

THE ‘PANDEMIC’ PROBLEM

FOSSIL FUELS

How world health impacts the Energy Industry

News & industry updates

RENEWABLES Energy transition

GREEN ZONE

PROUDLY FEATURING

Rystad Analytics

The intelligent environmental answer to underwater explosive operations

INNOVATION Featuring the ‘Energy Observer’

DIGITALISATION News & industry updates

PROJECTS MAP CONTRACTS

The Gas Issue

NEWS EVENTS

IMI Critical Engineering announce partnership with Control Valve Solutions for Scottish oil and gas market READ MORE ON PAGE 4

THE GLOBAL PROVIDER OF INTEGRATED INSPECTION, MAINTENANCE & REPAIR SOLUTIONS

CONTENTS

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REGIONAL REVIEWS 8 Europe 10 US

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GREEN ZONE

32 Orkney’s decarbonisation efforts reach new heights 33 Avoiding the ‘Big Bang’- The Intelligent Environmental Answer to Underwater Explosive Operations

SPECIAL FEATURES

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11 Subsea Review 12 The Pandemic Problem: How world health impacts the Energy Industry 34 The Digitalisation of Diving

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RENEWABLES

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14 Hydrogen: one of the solutions towards energy transition 15 Facebook goes green in new partnership with Dominion Energy

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TECH & INNOVATION

36 Energy Observer and CMA join forces to make hydrogen one of the energy sources of tomorrow 38 Anything but ordinary: The power of ‘gel’ technologies

DIGITALISATION

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16 Dell super-computer heralds new dawn for ENI’s Energy Transition

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FOSSIL FUELS

19 UK North Sea Oil & Gas Review 22 How can structural integrity management data help decommissioning? 23 Q&A on well decommissioning 24 Contract Awards 28 Rystad Analytics 31 UKCS Status Report

EVERY MONTH

4 Cover Partner: Control Valve Solutions World Project Maps 6 34 On the Move People in Energy 42 45 Events 46 Legal and Finance

SHELLEY MILNE EDITOR

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The darkness of the winter months is receding, and as we enter March, it’s clear that 2020 is gaining pace with every day that passes. With a raft of new technologies and developments featured, it seems, that for the moment at least, the industry is working hard to keep pace with the ever-changing world we live in and rise to the challenges it presents. One of these challenges is the current Coronovirus epidemic. Set to have a significant impact on energy demand and supply due to China’s role as ‘the world’s workshop’, this was a fascinating article to write and, I hope, to read. As March 8th is International Woman’s Day, we have dedicated our OGV People Magazine to celebrate the many amazing women who are breaking glass ceilings and plotting new courses for the industry. It would be remiss to go without a mention in OGV Energy so we have dedicated our People In Energy feature to Rachel Meacock; an environmental scientist and beauty queen, who is turning pre-conceptions on their head and reshaping the way we categorise people based on their looks, hobbies and interests. As a younger member of the developing workforce, her voice is important in shaping the industry of tomorrow. I’d love to hear more about your thoughts on these types of features, so please feel free to drop me a line at newsdesk@ogvenergy.co.uk. Wishing you a healthy and productive start to the spring.

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COVER PARTNER

IMI Critical Engineering Announce Partnership with Control Valve Solutions for Scottish Oil and Gas Market

IMI Critical Engineering has announced a partnership with Control Valve Solutions (CVS) to better serve their customers in the oil and gas sector in Scotland. Effective immediately, CVS will be the representative and approved field service supplier for the IMI CCI, IMI Orton, IMI Truflo Rona and IMI STI brands.

IMI Critical Engineering are confident that this new partnership will provide significant added value to their customers as they benefit from the local presence and CVS’s excellent workshop capabilities, closely supported by the engineering and application experience and manufacturing capability of IMI Critical Engineering. Andrew Pearson, Regional Manager, IMI Critical Engineering, Northern & Western Europe said “We’re really excited to be working with Control Valve Solutions across the IMI Critical Engineering businesses. Together we feel we can offer even more to our customers; really understanding their problems, reacting quickly to their needs and supplying industry leading solutions. Having a local partner in Aberdeen will make it easier for our customers here to access the expertise and

www.ogvenergy.co.uk I March 2020

decades of experience that IMI has. I am looking forward to a long and fruitful partnership.” Ryan Machado, Sales Manager, CVS added “We are delighted to have been chosen to partner with one of the leading manufactures of severe service valves and associated products. CVS can now provide a local presence and expertise on IMI Critical Engineering scopes, has the ability to utilise our state-of-the-art workshop to assist in delivering a best in class service to both IMI and our customer base. This further strengthens CVS’s expertise and knowledge within the industry and assists in our quest in becoming leading industry valve specialists.”

IMI CCI has been a leading provider of critical flow control technologies across the nuclear, power, oil and gas industries for over five decades. We have the design, manufacturing, commercial and after service expertise to provide tailored valve solutions for extreme operating environments. They are able to deploy their bespoke engineering expertise to maximise system performance and customer profit.

IMI Truflo is a leading provider of specialised valves for the oil, gas, chemical and petrochemical industries. Customers use their valves in the most severe service applications, where safety integrity and performance are critical. Their engineers have the skills and experience to advise on complex flow control issues.

IMI Orton is an international leader in the manufacture of triple offset metal-seated valves, large diameter double-eccentric butterfly valves and concentric rubberlined valves, for on-off and control service. They have over 50 years’ experience of designing customised valve solutions for their customers, combining efficiency and reliability with the highest safety standards for use in extreme operating environments.

IMI STI is an international leader in valve actuation. They design and manufacture complete actuation systems, which can be fully customised to meet customer needs to operate industrial valves for the most demanding applications and processes. They offer a diverse range of valve actuation products including linear and quarter turn actuators, smart and traditional positioners, and a full range of accessories.

BMW Business Partnership

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Journalists

Shelley Milne Tsvetana Paraskova Katie Milne Sean McHardy

Design

Ben Mckay Fara West

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Fuel economy and CO2 results for the BMW 320i M Sport Saloon: Mpg (l/100km): Combined 39.2 (7.2) – 40.4 (7.0). CO2 emissions: 132g/km. Figures are for comparison purposes and may not reflect real-life driving results, which depend on a number of factors including the accessories fitted (post-registration), variations in weather, driving styles and vehicle load. All figures were determined according to a new test (WLTP). Only compare fuel consumption and CO2 figures with other cars tested to the same technical procedure. John Clark BMW Aberdeen is a credit broker. *Business users only, prices exclude VAT at 20%. Initial rental £1,407. Prices shown are for a 36-month Contract Hire agreement for a BMW 320i M Sport Saloon with a contract mileage of 8,000 miles annually and an excess mileage charge of 8.13 pence per mile. Applies to new vehicles ordered between 01 January 2020 and 31 March 2020 and registered by 30 June 2020 (subject to availability). At the end of your agreement you must return the vehicle and vehicle condition, excess mileage and other charges may be payable. Available subject to status to UK residents aged 18 or over. Guarantees and indemnities may be required. The amount of VAT you can reclaim depends on your business VAT status. Terms and conditions apply. Offer may be varied, withdrawn or extended at any time. Hire provided by BMW Group Corporate Finance. BMW Group Corporate Finance is a trading style of Alphabet (GB) Limited, Alphabet House, Summit Avenue, Farnborough, Hampshire GU14 0FB. We commonly introduce customers to BMW Group Corporate Finance. This introduction does not amount to independent financial advice. BMW (UK) Ltd, Summit ONE, Summit Avenue, Farnborough, Hampshire GU14 0FB. Registered in England and Wales 1378137. Authorised and regulated by the Financial Conduct Authority for credit broking activities.

105mm x 285mm

WORLD PROJECTS

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WORLD PROJECTS MAP

1 MOZAMBIQUE Mozambique Rovuma Venture US$22.4bn Construction of an LNG liquefaction plant which will be fed by the Mamba fields located in the Area 4 block offshore Mozambique. The project will have two liquefied natural gas trains that will each produce 8.2 million tons per year (16.4 mtpa).

FEBRUARY 2020

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. The EIC 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.

WORLD PROJECTS SPONSORED BY

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USA Motiva Enterprises LLC US$9.7bn

NORWAY Equinor/Aker BP US$6bn

POLAND - Equinor / Polenergia US$2bn

GERMANY TenneT US$11bn

A project to expand Saudi Aramco into the petrochemical business. Plans include the construction of an ethane cracker, a polyethylene unit and an aromatics complex.

A joint concept entailing five platforms, four subsea templates and up to 46 production wells is in development as part of a wider Noaka development. It includes development and installation of a processing, drilling and quarters platform for Aker BP’s Fulla, Froy and Frigg-Gamma-Delta fields with subsea tie-backs to surrounding discoveries.

Development of two offshore wind farms with an overall capacity of up to 1,440MW. The projects will be located in the Baltic Sea and could feature up to 220 turbines. Poland represents a key emerging offshore wind market in Europe.

The SuedLink project comprises construction of approximately 700km of HVDC line with 4GW capacity. The HVDC connection comprises two line segments. The first runs from Wilster in SchleswigHolstein to Grafenrheinfeld area in Bavaria and the second runs from Brunsbüttel in Schleswig-Holstein to Großgartach (Leingarten) in BadenWürttemberg.

www.ogvenergy.co.uk I March 2020

WORLD PROJECTS

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6 NETHERLANDS Neptune Energy Norge US$200mn A project to develop a pilot project to create the first green hydrogen plant in the Dutch sector of the North Sea. Under the project, three energy systems will be integrated on one platform: offshore wind, offshore gas and hydrogen. A megawatt electrolyser will be placed within a sea container and installed on Neptune’s Q13a-A platform. The hydrogen produced by the electrolyser on the Q13a platform will be transported via an existing pipeline to an offshore structure where it will be used to generate electricity.

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NORWAY Equinor / Gassnova US$1.5bn

CANADA Suncor Energy US$400 mn

CHINA Invista US$1bn

Development of a full-scale CCS facility to store CO2 captured from onshore industrial facilities for shipping to a receiving Terminal for pipeline distribution to injection wells east of the Troll field on the NCS. Phase one of the project could reach a capacity of approximately 1.5 million tonnes per year.

A 403.2 MW onshore wind farm located in south-eastern Alberta, Canada will consist of up to 89 wind turbines, meteorological towers, turbine access roads, a 34.5 kV electrical collection system, and temporary construction facilities. The generated electricity will be delivered to the grid via two proposed substations each connected separately to the nearby 240kV transmission line.

Construction of a butadiene-based 400,000 tonne per annum (tpa) adiponitrile (ADN) plant at the Shanghai Chemical Industrial Park, China. ADN is used to make nylon polymer, fibres and other specialty materials such as hexamethylene diisocyanate (HDI) for coatings. Project is to meet the country’s growing demand for the product in the nylon 6,6 production chain.

WORLD PROJECTS SPONSORED BY

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The European Green Deal What is it and what’s next By Tsvetana Paraskova

Political and business leaders around the world have started to take action to fight climate change and prepare for the energy transition. Companies have pledged significant cuts in their carbon footprint and set goals to become carbon neutral over the next two to three decades.

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eyond corporate-level commitments to a netzero carbon footprint, governments in advanced economies pledge reduction in emissions in a oncein-a-lifetime opportunity to mitigate the already evident impact of climate change.

at least 50percent and towards 55percent compared with 1990 levels. This compares to the previous goal of 40percent decrease in emissions by 2030, while the target for 2050 is carbon neutrality. Current policies, however, are expected to only reduce greenhouse gas emissions by 60percent by 2050, according to the European Commission (EC) estimates.

In June 2019, the UK became the first major economy in the world to enshrine in law, its target to reduce greenhouse gas emissions to net-zero by 2050. This target will require the UK to reduce all greenhouse gas emissions to “After several tough net-zero by 2050, compared with the Under the Deal, years, theGreen sun may previous target of at least 80percent the EU will support finally be ready to reduction from 1990 levels. “We’re pioneering the way for other countries to follow in our footsteps driving prosperity by seizing the economic opportunities of becoming a greener economy,” said Energy and Clean Growth Minister Chris Skidmore.

investments green shine again oninthe UK offshore market,” new Audun technologies, Martinsen, head of businesses, and oilfield services research sustainable solutions. at Rystad Energy

What is the European Green Deal Several months after the UK passed the net-zero emissions target into law, the European Union (EU) unveiled its European Green Deal in December 2019, aiming to make Europe the first climate-neutral continent by 2050. The transition to carbon neutrality is both a challenge and an opportunity, the European Commission said, as it presented its most ambitious package of measures to date to help European citizens and businesses benefit from the transition to a greener future and economy.

“Much remains to be done, starting with more ambitious climate action in the coming decade,” the Commission said in the plan. To achieve carbon neutrality by 2050, the European Union will need the support of all stakeholders and ‘greener’ legislation in national governments.

The European Green Deal includes; boosting offshore wind power generation and nuclear power at the expense of fossil fuels; stricter standards for vehicles running on petrol and diesel; a move to smarter and increasingly electric mobility and; a Just Transition Fund to support with money packages the regions reliant on coal and carbon-intensive industries to diversify away from the heaviest carbon-emitting sectors.

Under the Green Deal, the EU will support investments in green technologies, new businesses, and sustainable solutions.

The European Green Deal also includes the possibility of introducing the so-called ‘carbon border adjustment mechanism’ to reduce the risk of carbon leakage if EU partners do not share the same ambition as the EU.

The European Green Deal is a response to the climate challenges the world faces and calls for raising the target for EU’s greenhouse gas emission reductions for 2030 to

“Should differences in levels of ambition worldwide persist, as the EU increases its climate ambition, the Commission will propose a carbon border

www.ogvenergy.co.uk I March 2020

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REGIONAL REVIEWS: EUROPE adjustment mechanism, for selected sectors, to reduce the risk of carbon leakage,” the Commission said. The European Parliament supported the Green Deal and called for even higher ambitions at a session in January 2020. “MEPs welcome the European Green Deal and support an ambitious sustainable investment plan to help close the investment gap. They also call for an adequately funded just transition mechanism,” the Parliament said in a press release. MEPs want the upcoming Climate Law to include higher ambitions for the EU’s 2030 goal of emissions reductions - 55percent in 2030 compared to 1990, instead of “at least 50% towards 55%”- as proposed by the Commission. MEPs also want to include an interim target for 2040 to ensure the EU is on track to reach climate neutrality in 2050.

What’s Next for Europe in the European Green Deal To help carbon-intensive industries across the EU to transition to lower-carbon economies, the EU launched the Just Transition Mechanism (JTM) to provide targeted support to regions and sectors that are most affected by the transition towards the green economy. The EU will mobilise at least €100 billion in investments over the period 2021-2027 to support workers and citizens of the regions that will be most impacted by the transition. “We must show solidarity with the most affected regions in Europe, such as coal mining regions and others, to make sure the Green Deal gets everyone’s full support and has a chance to become a reality,” said Frans Timmermans, Executive Vice-President of the European Commission.

What the Green Deal Means for Energy Firms and Carbon-Intensive Industries But there are rebels in this Green Deal among countries dependent on fossil fuels, especially coal. For example, Poland, an EU member state heavily reliant on coal which accounts for nearly 80percent of electricity generation and where the coal industry is a major employer, has opposed the deal.

Wind energy is ideally placed to help Europe achieve its ambitious targets and ensure that the Green Deal works for all Europeans, the association said.

The Green Deal is “an incredibly ambitious commitment,” WoodMac said in a report which described the pledge “a very deep line in the sand for climate change.”

Europe’s Progress in Reducing Emissions So Far

However, energy firms could come under pressure from the Green Deal, according to Valentina Kretzschmar, Wood Mackenzie’s director of corporate research.

“The transformation ahead of us is unprecedented. And it will only work if it is just - and if it works for all. We will support our people and our regions that need to make bigger efforts in this transformation, to make sure that we leave no one behind,” the President of the European Commission, Ursula von der Leyen, said.

The road to becoming the first climate-neutral continent by 2050 must be paved with significant investment from both the public and the private sector, the European Commission says. “Public finance needs to lead the way, private actors need to provide the scale,” the Commission said in its brief on the necessary investments in a climate-neutral and circular economy.

“Decarbonising Europe represents a unique opportunity for a more prosperous, healthier and greener continent. And offshore wind energy in the northern seas plays an important role in a decarbonised European energy system,” Martin Neubert, CEO, Ørsted Offshore, says in the company’s white paper on the Green Deal.

The European Union reduced greenhouse gas emissions by 23percent between 1990 and 2018, while the economy grew by 61percent during that period, the European Commission has estimated. In 2019, energy-related emissions in Europe declined, according to the new emissions report from the International Energy Agency (IEA) in February 2020. Last year, energy-related CO2 emissions in the European Union, including the UK, dropped by 160 million tonnes, or 5percent, driven by reductions in the power generation sector. Natural gas produced more electricity than coal in the EU for the first time. Meanwhile, wind-powered electricity nearly caught up with coal-fired electricity, the IEA noted.

Alongside the Just Transition Mechanism, the European Commission unveiled in January the European Green Deal Investment Plan to mobilise at least €1 trillion of sustainable investments over the next decade.

“The Green Deal comes with important investment needs, which we will turn into investment opportunities. The plan that we present today, to mobilise at least €1 trillion, will show the direction and unleash a green investment wave,” von der Leyen added.

“renewables-based electrification will be central to a climate-neutral, competitive and secure energy system,” says nonprofit association WindEurope, which groups 400 member companies, including the biggest renewable energy firms and suppliers in Europe.

“Pressure on European fossil fuel producers to follow Repsol’s lead in committing to netzero carbon by 2050 will continue to ramp up,” Kretzschmar said. “And oil and gas exporters to Europe, including Russian gas and US LNG, could face a diminishing demand outlook and an impact on their revenues from carbon taxes,” she noted. While the oil and gas industry would be under pressure to make stronger carbon reduction commitments, providers of renewable energy and their associated supply chain are set to benefit from the European Green Deal.

Germany led the emissions decline in the EU as its emissions dropped to levels last seen in the 1950s when Germany’s economy was ten times smaller. With a share of over 40percent, renewables generated more electricity than Germany’s coal-fired power plants in 2019, for the first time ever, according to the IEA. In the UK, the share of power generation from coal dropped to just 2 percent of all electricity generation, thanks to the rapid expansion of output from offshore wind from new projects in the North Sea, the IEA said. Despite the progress in emissions reductions in major economies in Europe, the European Union and the United Kingdom have a lot more work to do to reach carbon neutrality by 2050. Support from all stakeholders will be crucial to ensure the success of the transition to sustainable greener economies.

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REGIONAL REVIEWS: US

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hevron, one of the largest U.S. producers, reported a $6.6 billion loss for the fourth quarter of 2019, much of it from a $10.4 billion writeoff primarily related to shale-gas production in Appalachia. Its profit for the year slid 80percent. For Exxon Mobil, the largest U.S. oil company, things didn’t look much better. It reported fourth-quarter earnings per share fell 70percent, and its net income of $5.69 billion was the weakest in three years. Its shares have tumbled 30percent since late April 2019, as oil companies as a group turned in the worst performance in U.S. equity markets. Now, the industry is facing global pressures as well. As the coronavirus scare spreads and China’s economy essentially shuts down in response, global oil demand appears headed for its first quarterly decline in more than a decade, according to the International Energy Agency. The IEA cut its growth forecast for the year by 30percent, to 825,000 barrels a day, a nine-year low. Ironically, the only bright spot in the wave of industry financial reports has been the service companies such as Schlumberger and Halliburton, who have been the biggest performance laggards in the Oil Patch during the past year. Both beat analysts’ estimates and indicated they see improvement in the second half of the year — but only because of gains in their international and offshore operations rather than a resurgence in U.S. shale plays. While many companies are struggling to make money, U.S. oil production continues to rise. A February report by Rystad Energy found that production from Texas, the biggest oil-producing state, is expected to increase steadily each month this year. The state’s production was 5.4 million barrels a day at the end of last year.

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U.S. Producers

Face Tumultuous Year

After years of relying on cheap financing and investors’ appetite for energy, U.S. oil produc-ers are now focusing on profitability, and the numbers don’t look right. They are scrambling to instil financial discipline and reassure anxious investors amid signs of softening global demand.

After creating about 100,000 jobs in 2017 and 2018, industry employment began declining last year, and most labour analysts expect the trend to continue through the end of 2020. Todd Staples, president of the Texas Oil and Gas Association, says that as long as oil prices remain at or below $50 a barrel, the industry is likely to continue struggling.

“With production strained by prices, we may have additional bankruptcies and mergers and acquisitions as This reflects a broader national trend that will companies work to maintain see U.S. production surging through a competitive,” Staples the end of next year, according told reporters during to the U.S. Energy Information a conference call Administration. in February. “Job growth may At the same time, companies’ Companies’ capital continue to lag capital budgets are tightening, budgets are further than we’ve and rig counts are at a enjoyed in recent three-year low after falling tightening, and rig years.” 25percent last year.

counts are at a

Weaker prices for oil This has been the ongoing three-year low and natural gas are conundrum for shale producers also affecting another — balancing high production area of the U.S. energy volumes against weak operating landscape: renewables. cash flows. Investors have grown While 2020 is expected to be weary of the growth-at-any-cost model a record year for solar and wind power pursued by many shale companies. Producers developments across the country, the have focused on improving efficiencies, reducing ready availability of cheap natural gas costs and boosting profitability, but so far, the may slow the advance. efforts to improve financial discipline have not appeased investors. Natural gas has long been seen as a complement to renewables, because Last year, oil company bankruptcies rose gas-fired power plants could turn 50percent from 2018, according to a report on and off quickly, offsetting the released in January by the Dallas law firm Haynes intermittency of renewables. The and Boone. Forty-two producers in the U.S. and abundant supply of gas, unleashed Canada filed for bankruptcy compared with 28 a by the development of hydraulic year earlier. In the past five years, more than 200 fracturing, has helped bolster the oil companies have gone bankrupt. Falling rig spread of renewables in the U.S. counts also mean lower employment levels.

www.ogvenergy.co.uk I March 2020

At Craig International, procurement isn’t just about processes, products and numbers. We promote a culture of ownership among our people, who are trusted to get on with the job on your behalf. We’re proud of how we serve clients. We’re always looking for new ways to add value and routinely introduce new technological solutions to make service delivery even simpler, smoother, faster. When it comes to procurement, we get it. Adding value, innovation and efficiency at every turn in your supply chain.

In addition, low gas prices have prompted a move to shift more electricity generation away from dirtier sources such as coal. However, some industry observers say that because gas prices have remained so low, the fossil fuel is now directly competing with renewables, rather than supporting them. “The fact that there’s an abundance of it makes the move to complete decarbonisation much harder,” Ravina Advani, head of energy, natural resources and renewables at BNP Paribas SA, recently told Bloomberg News. Gas is a tough competitor. “It’s reliable, and it’s cheap.” Investments in U.S. renewables rose by 28percent last year, to a record $55.8 billion, according to Bloomberg New Energy Finance. That’s expected to continue, with renewables becoming the fastest-growing source of electricity during the next three decades. By 2050, renewables will account for 38percent of the country’s power generation, the EIA predicts. And at least some of that growth is going to require cheap supplies of natural gas to balance grid reliability on cloudy or calm days when solar and wind power are ineffective. The rise of renewables, of course, has long-term implications for fossil fuels, but in the short term, the U.S. oil industry’s biggest challenge is still its own success.

In the past decade, the surge of U.S. production from hydraulic fracturing upended the global oil markets and turned America into the world’s biggest energy producer. This year, however, is shaping up to be a difficult one as the industry struggles to regain its footing amid growing supply,

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weaker demand and lower prices.

SUBSEA REVIEW Mood upbeat as Subsea Expo attracts record attendance numbers

Subsea UK’s flagship event hailed huge success More than 6,600 delegates gathered at Europe’s largest subsea event, Subsea Expo, in Aberdeen this week, one of the biggest attendances on record in the event’s 15 year history.

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rganised by industry body Subsea UK, the event welcomed delegates from all corners of the world, including the United States, Mozambique, India, Kurdistan and Azerbaijan. Neil Gordon, chief executive of Subsea UK, said: “This year’s Subsea Expo has been one of the biggest and best in the show’s history. Our largest delegation of international visitors underlines the demand for and interest in UK expertise and technology and reinforces our industry’s world-leading position. “The mood was much more upbeat than previous years, from the exhibition floor to the conference plenary and the technical sessions. This reflects the renewed optimism in oil and gas, our main market sector and the increasing potential in offsore wind, which is fast becoming a key sector for the subsea industry.

“But it also demonstrates the excitement and potential around our role in the energy transition and the Blue Economy.” This year’s event boasted almost 200 exhibitors and 70 speakers and welcomed 180 school children.

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ENPRO SUBSEA WINS SUBSEA UK’S COMPANY OF THE YEAR AWARD

Tim Sheehan, global business development and strategy director at Boskalis, said: “Having the opportunity to meet directly with the supply chain is extremely valuable and the reason we keep coming back to Subsea Expo. This year has been no exception and the optimistic mood of vistors to our stand suggests that the industry really is moving in the right direction.” Rob Kennedy, digital programme manager at Wood, said: “Subsea Expo has been the ideal event for launching our automated design - pipeline platform. We have been really encouraged by the level of engagement both at the technical sessions and with our live demonstrations on the stand. Overall the atmosphere has been really positive.” Craig Mann, director at Balgownie Limited, added “This is our first time exhibiting at Subsea Expo and we’ve generated some very worthwhile leads. The subsea market is one we are breaking into just now and this has been an amazing platform to get us in front of the right customers.” Martin van Onna, chief operating officer, Airborne Oil & Gas, said: “We secured our first sale here in 2014 and have always been very impressed by the level of engagement at Subsea Expo. “This year, we’ve enjoyed discussions around the development of new technology, and how our thermoplastic composite pipe (TCP) can support operators towards a lower carbon future. We’re heading back to our HQ in The Netherlands confident that there is real appetite to innovate and disrupt the subsea sector, and we’re proud to play our part.”

Neil Rogerson, John Reid, Ian Donald, Tom Bryce, Declan Slattery

Production optimisation specialist Enpro Subsea has been named Company of the Year during the Subsea UK Awards gala dinner last night (Wednesday, 12th January 2020) celebrating the very best of the sector’s businesses and stand out individuals. The accolades are awarded during the organisation’s Subsea Expo event, Europe’s largest subsea focused exhibition and conference. This year, the ceremony took place at the P&J Live venue in Aberdeen, with over 600 people in attendance hosted by Olympic silver medallist, Kriss Akabusi. The Subsea UK Awards judging panel recognised the Aberdeen headquartered business for its successful development of technologies which provide ‘smart standardisation’, allowing operators to reduce development schedule and costs by using standard subsea hardware while still enabling project specific technology. The firm’s Flow Access Module (FAM) essentially acts as an enhanced production ‘USB port’ within the jumper envelope. It means that throughout the life of field, customers have a flexible way of integrating functions such as flow measurement, flow assurance, data acquisition and hydraulic intervention. Since the first FAM was installed subsea in the Gulf of Mexico in 2016 over Seventy have been adopted globally. In the last year, the company has continued to secure business in key Deepwater regions, including the Gulf of Mexico and West Africa. The company was also acknowledged for expanding their Flow Intervention Services (FIS) offering, launching their ‘next generation’ 15,000psi Hydraulic Intervention System. The new higher rated system is an evolution of their earlier 10,000psi FIS which has completed 19 subsea intervention operations to date, including scale squeeze and acid stimulation, for multiple clients and from a range of vessels in West Africa. Ian Donald, Enpro Subsea’s CEO said: “Our longterm approach has been to develop differentiated technologies which return tangible cost savings and operational flexibility to customers. This Subsea UK Company of the Year Award recognises the team’s continued commitment in delivering this. As an SME to be considered in this category alongside the key global organisations and ultimately win this award is a great recognition of our technologies and the team’s efforts.”

Neil Gordon, Chief Executive of Subsea UK

Enpro Subsea has grown from a team of three in 2011 to currently employing 50 people across the three offices in UK, US and Ghana.

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SPECIAL FEATURE

By Shelley Milne

The ‘Pandemic’ problem how world health impacts the Energy Industry

China is in trouble – and, potentially, so are we. Under the looming threat of a global pandemic, the impact of China’s curtailed industry is unquestionably having an impact across the energy sector.

As Taqa actioned its offshore containment strategy to quarantine an offshore crew member in the North Sea, many other operators in the North Sea area were forced to curtail travel and impose restrictions on crew who have recently returned from known hotspots. From manufacturing and supply to manpower, logistics and energy demand, the challenges to industry are slowly, but surely, making themselves known in a variety of ways. As officials work to contain the spread of the virus, Global energy markets are reeling, prompting OPEC and allied producers to consider tightening supply as China, the world’s top consumer of oil and natural gas and Asia’s largest oil refiner, slashes energy output by 10%.

Why does it matter? The question of a global flu-based pandemic is not a question of if, but when. In 1918, the Spanish Flu pandemic killed more than 50million people worldwide. At this time, people were travelling internationally, but on a much smaller scale than today and the impact on individual industries was limited.

The IHS report said “any slowdown in the Chinese economy sends not ripples but waves across the globe,” highlighting that China’s oil demand constituted 7% of world oil demand 17 years ago, compared with 14% today. As concerns grow, reports from the International Energy Agency (IEA) predict that demand is set to fall year-on-year in Q1 for the first time since the 2009 financial crisis, while OPEC has also cut forecasts through 2020.

With Brent crude, down roughly 15% since first reports of the virus spread, global commodity trader Trafigura Group predicted cuts Today however, Industry is, to global demand growth by approximately 300, 000 barrels per unquestionably, mobile – and this day (bpd) to around 1million bpd. holds true for the Energy sector. While the Coronavirus is, at IHS Markit also predicted that industrial energy this time, a mild pandemic demand may decline by up to 73Billion kWh. This by comparison, our cut equates to around 1.5% of industrial power workforce, tools, parts consumption in China, but as the world’s and products travel largest consumer of electricity, this loss can extensively and Around 90% of the be equated to the power used by Chile, a often, exposing silicon “wafers” South American country with a population of the industry to used in the United 19.12million people, underscoring the scale the unpredictable, of the disruption. States originates and uncontrollable in China impacts of global While supply and demand are key economic health emergencies. factors, the threat to the workforce is also a humanitarian concern. With the first case now Since first reports began confirmed in Africa, one of the fastest growing circulating, oil prices have energy economy regions, operators and service stumbled, liquified natural gas companies working in this area, will need to consider how has gone undelivered, solar panel best to protect their workforce. production has slowed and motor vehicle manufacturing has languished As China remains a global manufacturing giant, let’s take a look at or halted completely. some of ways which Coronavirus is impacting the energy sector at this time. In early February, analysis by Rystad Energy suggested that “As the spread of the Coronavirus does not yet appear to be slowing down, concerns are rising among LNG sellers,”. Early reports of reduced travel and economic activity in China pushed down oil prices to their lowest level in a year. OPEC+ Group Similar concerns were echoed in struggled in late January to agree deepening cuts to joint production reports from IHS Markit which in efforts to tighten markets, with Russia agreeing in principle, but predicted a much larger impact on refusing to sign off on the deal at that time. Further output cuts are the global economy of Coronavirus expected to be announced at the OPEC+ Group meeting in March, than the previous SARS outbreak, and analysts are optimistic of Russia’s support this time. due to China’s current position as second largest economy today – “The Russians have pretty much signalled that everyone is on notably increased in importance board for OPEC+ delivering deeper production cuts,” said Edward from its previous position as sixth Moya, senior market analyst at OANDA Corporation in New York largest in 2003. adding “As long as the Coronavirus does not show strong signs that the spreading of the virus is intensifying, WTI crude could make a run towards the mid-$50s,”

OIL

This optimism of deeper cuts from the worlds biggest producers fed industry confidence and by mid February, Brent crude increased 32 cents, (0.6%) to $56.11 a barrel, with United States’ West Texas Intermediate crude oil (WTI) up 14 cents to $51.31 a barrel. OPEC’s lowering of its 2020 demand forecast by 200,000bpd, citing the Coronavirus outbreak in China as the world’s largest crude consumer, contributed to a steadying of pricing across the market. However, Price Futures Group appear keen to manage expectation around this. Oil Analyst Phil Flynn is quoted in US media saying that traditionally, the Russians are known for playing “hard to get” and that there is a seasonal element to these discussions, due to the fact that Russian Oil export drops over winter, while they retain it for domestic use. This may make the Russians more amenable to a deal but raises questions regards what the Plan B might be, should they refuse, saying; “If that’s the case, now you’re going to be talking about 500,000 bpd of oil more on the market, and that’s definitely going to depress prices again.”

www.ogvenergy.co.uk I March 2020

SPECIAL FEATURE

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Wind & Solar Simply put, China is the world’s largest solar equipment manufacturer, and consultancy Wood Mackenzie has reported that work at several module plants is unlikely to resume until late February or later. Around 90% of the silicon “wafers” used in the United States originates in China, so it is inevitable that these stoppages will impact the solar Industries word wide. South Africa in particular, is bracing for some tough times ahead. The South African solar industry has been booming over the last two years with several mega-projects underway, many of which rely on the global supply chain for the provision of photovoltaic (PV) systems – where China is a significant Industry player. A significant liability, Africa’s reliance on the Chinese market is a source of concerns for Investors, particularly in Kenya, South Africa and Nigeria. Investment banking firm ROTH Capital warned that glass for PV modules and a shortage of solar wafers is likely to drive price increases of components in the solar supply chain in the near term, due to limitations on China’s current production. ROTH also noted that further impacts to the supply chain may result from the extended work stoppage in the eight key solar manufacturing provinces, most notably Jiangsu province, home to a number of ‘Solar Module Super League’ (SMSL) member’s major manufacturing hubs, including LONGi Group, Trina Solar, Canadian Solar and JA Solar. Continued stoppages are also being monitored by US wind and solar agencies. While many South East Asian companies provide many of the solar panels used in US installations, the raw materials to manufacture them are procured from China. Analysts say that, to date, the stoppages haven’t had a dramatic effect on suppliers of wind and solar parts but, this may well change if quarantined and factory closures continue to cause disruption. Due to its reliance on China, the effect of this will be more pronounced in solar, in comparison to the supply chain for wind. The effects of any shortfall are likely to take a few weeks to show themselves as it is likely that producers have stockpiled enough raw materials to meet supply over the next few weeks. However, should the pandemic increase in severity, manufacturers may not be able to produce, impacting price and availability. Wind is expected to fare slightly better due to a more geographically diverse supplier base. Yet, Kim Clifford, senior Credit Officer at Moody’s Investor Services cited Vestas Wind Systems as one of the most exposed wind manufacturers, due to the fact that they manufacture wind blades and other components within the eight affected regions at the epicentre of the outbreak where the company has around 3000 employees.

“We all appreciate if China is remaining closed for weeks or even worse, months, then I think it is the whole world that will have a pandemic force majeure,” said CEO Henrik Andersen, speaking on a call with US Journalists. Industry reports suggest that other large wind companies are keeping a close eye on the outbreak in attempts to predict its long term impact, and some, such as Siemens Gamesa Renewable Energy are starting to develop India as a global hub to reduce their reliance on China.

Natural Gas/LNG Perhaps the hardest hit sector at this time, the outbreak has caused a number of Chinese companies to declare force majeure on gas production, defined as a set of unforeseen or unpredictable events which would hinder fulfilment of the original contract. Bloomberg reported that CNOOC has declined to accept cargoes of liquefied natural gas because its ability to import the fuel is inhibited, a trend which may well continue as Chinese companies face a choice between stockpiling the LNG offshore, at significant expense, or alternatively, refusing deliveries outright. The impact of any cancellations will ultimately have a direct impact on the bottom line of US exporters of LNG, predicted Neil Bhativa, Associate Fellow for Energy and Economics at the Centre for New American Security. “They are going to have to try to find, if they can, a different market for it, and it’ll probably be at a lower price than what they had initially contracted out,” Bhatiya said “They’re basically trying to chase a price level that keeps going down as more and more orders are cancelled.” Further complicating the issue is the unknown severity of the virus and how far and wider it may spread. Revising it’s growth estimate for expected Chinese LNG demand for 2020, Rystad Energy limited growth to 4.7% when compared with 2019 figures – a notable difference from their earlier estimated rise of 10-13%

“If more Chinese companies cancel or defer importing LNG volumes from term contracts, and if the spot price then falls further, sellers may face even greater pressure from buyers wanting to renegotiate existing contracts or hesitating to sign new ones,” the report said. Counting the Cost. As the death toll continues to rise, there are currently 70,548 confirmed cases at time of writing and while the industry attempts to mitigate the economic impact, the Coronvirus remains first and foremost a humanitarian concern. With such startling levels of infection, the global nature of the energy industry underscores the need for clear-headed preparation, education and communication. The 2014 Ebola outbreak, which bore an estimated cost of $53billion to the affected economies, had the potential for a “cataclysmic” impact on workers families and communities in West Africa, according to the Journal of Infectious Diseases. As a result, many international companies have been forced to consider their preparedness for dealing with a major pandemic. This outbreak, in conjunction with the 2014 downturn in Oil & Gas, made health security a strategic priority in a now streamlined workforce. As businesses continue to compete for global growth, so to, will the number of mobile workers on international assignments – and with it, an increased risk to workers and employers. On a positive note, a swift reaction from industry at various stress-points in recent years suggests both preparedness and resilience to manage the increasing number of health threats it faces but it’s clear that ensuring long term health security will be an ongoing challenge for the sector and it’s workforce. What mitigations affected countries will implement in the aftermath and the impact this may have on workers rights and movement in troubled times remains to be seen while the question of how long, how far and how wide, echoes around the world. The answer, however, is less forthcoming.

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RENEWABLES

By Leanne Bloor, energy storage and hydrogen lead, Xodus Group

Hydrogen: one of the solutions towards energy transition

RENEWABLES ZONE SPONSORED BY

Here at Xodus we have charged into 2020 with a true sense of determination and pride. I’m incredibly excited that most of our work utilises skills from across the business; from offshore wind supply chain experts to commercial analysists (and many more!). We know this works and that it adds value for clients. But we also know that this approach is fit for purpose in a world where the focus is on a broad energy mix and meets increasing demand. We are leading and guiding our Clients through the energy transition, and working together to deliver a responsible energy future.

Peter Tipler Renewables Director, Xodus Group

anticipated costs of electricity and hydrogen produced offshore, based on geographical locations. This tool allows us to support our clients with independent advice on designing a comprehensive application for the Scotwind leasing rounds.

Leanne Bloor

Hydrogen is considered a zero-emission energy carrier that can be used as part of the energy mix for heat, transport and electricity and as feedstock for important chemical processes. Production can be ‘green’ via electrolysis and renewable energy meaning no carbon emissions or ‘blue’ through separation of natural gas and subsequent carbon capture and storage (CCS). At Xodus, we see both ‘green’ and ‘blue’ hydrogen as one of the many solutions that will be a part of the energy transition towards a net-zero future.

www.ogvenergy.co.uk I March January-February 2020 2020

From our Aberdeen headquarters, we have supported pioneering North Sea projects including the Hywind floating wind project and working with the European Marine Energy Centre on hydrogen from marine renewables. The EMEC project began when we examined various options for power export from EMEC’s tidal test site and nearby onshore wind turbine, including the production of green hydrogen and the viability of a hydrogen economy. Now Orkney is considered a world leader of islanded hydrogen production with projects such as ‘surf and turf’ and ‘big hit’ delivering energy security to local communities. We believe the next logical step for green hydrogen production is offshore. Either by utilising curtailed energy or as a dedicated hydrogen generation centre, green hydrogen can be produced by offshore wind generation. The North Sea has an abundance of resource and space to produce the scale of hydrogen required to decarbonise the UK’s energy requirements and to be used as an export product. Internally, we have developed detailed tools to assess and compare the

With blue hydrogen, the oil and gas industry has an opportunity to utilise commercially ready technology for new applications. The process for blue hydrogen produces the greenhouse gas carbon dioxide as a by-product which should not be released to the environment. This technology has proven benefits for the oil industry, as it assists with enhanced oil recovery through CO2 re-injection. Hydrogen production could potentially be made more cost effective by the reuse of existing infrastructure for both the generation and transmission of the gas. Work we completed last year for the OGTC investigated the suitability of the existing pipeline infrastructure for hydrogen. It identified that many gas pipelines are suitable for hydrogen injection. Our work also outlines that existing infrastructure can be utilised for carbon dioxide transportation and storage, which is key for blue hydrogen as a net-zero solution. With the extensive experience already in place within the oil and gas industry, blue hydrogen is now technologically ready for large scale production and reuse of existing infrastructure helps to prolong the economic life of petroleum assets. Beyond the UK, we see the Asia-Pacific region as leading the way in utilising a hydrogen economy. Japan is one of several countries moving towards a low-carbon future including renewable energy such as offshore wind and a hydrogen. We are currently working with several

RENEWABLES aimed at preparing for energy transition in the blue and green hydrogen spaces. Hydrogen is not without its technical, economic and regulatory challenges. As an example, the elements that make Beyond the UK, we up blue hydrogen are technologically see the Asia-Pacific mature and exist at region as leading scale, whereas green hydrogen production the way in utilising a exists as small-scale hydrogen economy. projects and as such, is more expensive. The transition towards a hydrogen economy will not happen overnight. It will be a slow transition, likely occurring over the next few decades.

Japanese clients on projects geared at unlocking the potential for offshore wind and the local supply chain. Japan has ambitious plans for hydrogen, including powering the Olympic Flame and athlete village with hydrogen for the games in Tokyo later this year. However, as an islanded nation with a dense population and little natural resource, much of this energy needs to be imported from other countries, including Australia.

Australia has a large resource for renewable energy and natural gas. This, coupled with the launch of a national hydrogen strategy, leaves the country well positioned to supply the Asian region with hydrogen as well as decarbonising their own energy sector. Australia already has pilot projects in place for both green and blue hydrogen and we are working with our Australian clients to provide technical services

By Shelley Milne

Facebook goes green in new partnership with Dominion Energy. Dominion Energy, one of the US largest producers and transporters of energy, announced a new partnership agreement with social media giant Facebook as part of their ambitious strategy to become 100% renewables reliant within one year.

Our hydrogen service line is expanding its reach across Europe and the Asia Pacific region this year as interest in hydrogen as an enabler continues to grow. We will continue to support our clients during the energy transition to net-zero using a collaborative approach, drawing on our experience across the oil and gas, environmental and renewables businesses. There is huge potential for the existing oil and gas industry to be a key component of the future international hydrogen economy.

In the agreement, Dominion Energy will build and operate the 100MW Sadler Solar Facility, which will provide Facebook with the clean energy it generates. Having received approval from the Virginia State Corporation Commission earlier this year the facility is expected to be operational by the end of December. This development, located in Greensville Country, Virginia, will build on Dominion Energy’s portfolio and will become the eighth addition to Dominion’s Solar Facilities in Virginia and North Carolina, supporting Facebook operations. The new facility is key to Facebook’s ambitious sustainability strategy, which aims to transition the global corporation to 100%renewables for their operational energy requirements by the end of 2020. Speaking of the deal, Emil Avram, VP Of Business Development at Dominion Energy said: “Partnerships with companies like Facebook help drive the addition of renewable energy to the grid. We are honoured to work with them to help meet their sustainability goals as well as continue to expand renewable energy across the Dominion Energy service area.” Urvi Parekh, head of Renewable Energy at Facebook said “We are proud to continue to grow our partnership with Dominion Energy by adding this new 100-MW project to the grid. Since 2017, this partnership has resulted in over 690 MW of new solar energy in Virginia and North Carolina and has helped strengthen the renewable energy market in the region.”

T

he partnership agreement, along with strong Q1 reporting saw Dominions stock hit a 52week high in early Feb.

As well as enabling Facebook to deliver the megacorps energy transition strategy, this strategic partnership is also key to meeting Dominion Energy’s own goal of having 3,000 MW in new solar and wind energy operational or under development in Virginia by 2022.

RENEWABLES SPONSORED BY

03 15

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Dell Super-Computer Heralds New Dawn for Eni’s Energy Transition Italian energy group, Eni officially launched its new supercomputer HPC5, a GPU-accelerated system capable of performing 52 million billion operations per second, in early February in a bid to accelerate research and development of clean energy sources, while supporting exploration and oilfield monitoring. With server efficiency and data storage connection built into its design, the HPC5 system comprises of 7,280 NVIDIA V100 GPUs. The first of its kind in the oil and gas industry, as well as the most powerful supercomputer infrastructure in the industrial sector[sm1] , its operational status allows Eni to achieve another milestone in its digitalization process. Supporting the previous HPC4 system, HPC5 has tripled its computing power from 18 to 52 petaFlop/s, equivalent to 52 million billion mathematical operations per second, allowing Eni’s supercomputing ecosystem to reach a total peak power of 70 PetaFlop/s. Speaking at the launch, CEO of Eni, Claudio Descalzi said: “Today Eni unveils a supercomputing system with key features which are unique in the industrial world. This system is able to boost and even further refine the highly complex processes that support Eni’s people in their activities and therefore accelerate our digital transformation” He continued “This is an important time in the path toward the energy transition. It’s another step forward to the global goal that we share with our research and technology partners: making tomorrow’s energy an even closer reality”. This remarkable increase in computing power, obtained thanks to the use of hybrid architectures, assists Eni in the achievement of multiple strategic targets: enabling Eni’s record in further acceleration of the company’s transformation and the

www.ogvenergy.co.uk I March 2020

development of new energy sources and related processes, such as the generation of energy from the sea, the magnetic confinement fusion, as well as other climate and environmental technologies, developed in collaboration with the many prestigious partnerships formed with research centres. Also, HPC5’s capability of processing big data and Artificial Intelligence systems will lead to further improvement in work processes, safety, performance, planning of exploration activities, enhanced precision in reservoir simulations and supporting the workforce – and speeding up decision-making. “If we disregard experimental supercomputers and consider only true supercomputing systems, HPC4 is the leading computer in the world in terms of energy savings. A single watt of electricity enables it to perform almost twenty billion operations per second. The performance level of this computer means it can use extremely sophisticated in-house algorithms to process subsoil data. The geophysical and seismic information we collect from all over the world is sent to HPC5 for processing” said an Eni Spokesperson “Using this data, the system develops extremely in-depth subsoil models, and on the basis of these, we can determine what is hidden many kilometres below the surface: indeed, this is how we found Zohr, the largest gas field ever discovered in the Mediterranean,” he continued. As exploration shifts to increasingly remote locations and deeper wells, global energy demand calls for rapid response times. The need to quickly identify and bring new resources to production becomes a serious challenge. The use of HPC5 enables Eni to increase the accuracy of studies on underground rocks, thereby de-risking and reducing the margin for error during prospecting operations while reducing the time between field identification and production launches. The benefits of this are two-fold as this also has a positive impact on sustainability, through streamlined use of energy and resources.

DIGITALISATION SPONSORED BY

EDRMedeso is at the forefront of providing digital prototype and digital twin simulation technology to organisations who are in the business of delivering reliable products, in some of the most hostile and challenging environments. Using our best tools means you can be confident in predictions about future product performance and reliability, reduce the cost and risk of unplanned downtime and improved future product development processes. EDRMedeso provides a comprehensive suite of engineering simulation tools and services. With offices across Northern Europe and working with over 1000 organisations, our experience spans nearly every field of engineering and design.

Eni’s Green Data Center, that houses all of the company’s supercomputing systems and data, is the ideal location for the HPC5 presentation: it has been developed to be a cutting-edge technology hub and to achieve world-leading energy efficiency results also thanks to the nearby photovoltaic plant that is partially powering HPC5. This technology means that the supercomputer is also one of the ‘greenest’ infrastructures, with the lowest electricity consumption per petaFlop. HPC5 and HPC4 offer several benefits to Eni’s operations. These include discovering new deposits, modelling existing discoveries and improving refining, but the real potential for this lies in their ability to harness and progress the energies of tomorrow. According to reports, the two supercomputers both run original programs for research into magnetic confinement fusion: are capable of theoretical modelling of photoactive molecules and polymers at the core of new technologies for capturing solar and also can be used to build advanced mathematical models combining meteorological and marine information with information on the behaviour of MaREenergy technologies, such as ISWEC or Power Buoy, which generate electricity from wave motion.

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MOST RUGGED JOBS Dell is celebrating the Most Rugged Jobs with a Top 20 List recognizing those whose job it is to encounter the most extreme physical and environmental elements – all in a hard day’s work. The world’s most challenging jobs require endurance, high performance equipment, and some of the most strenuous training. Each job on the Top 20 list was scored against 3 key factors, including physical labor, fatality/injury risk, and environmental exposure. Dell builds rugged notebooks and tablets to withstand the world's most extreme environments, so we understand the need to get the job done - faster and smarter.

3 KEY CONSIDERATIONS INCLUDE:

Physical

Injury risk

OIL & GAS ENGINEER

POLICE OFFICER

MINING MACHINE OPERATOR

COMMERCIAL FISHER

CONSTRUCTION WORKER

MILITARY PERSONNEL

Oil & Gas Engineer Ranks Highest in Dell's Deadliest and Toughest Jobs in the World

Environment

LUMBERJACK

FIREFIGHTER/ EMT

ELECTRICAL LINE TECHNICIAN

DEMOLITION EXPERT

RESCUE WORKER

FARMER

PAINTER

STORM CHASER

GEOLOGIST/ VOLCANOLOGIST

WAREHOUSE LOGISTICS OPERATOR

MARINE BIOLOGIST

INSURANCE CLAIM ADJUSTER

PILOT

MANUFACTURING WORKER

Hanging from a 3-storey building. Being 700 metres underground. Working out at sea for 36 hours straight. These scenarios aren’t for the faint-hearted, but for a brave few, it’s just another day at the office. Those people are in some of 2020s Most Rugged Jobs in the World, according to Dell Technologies Most Rugged Job List. Reviewing the ultimate in challenging careers, Dell Technologies scored those which required endurance of the most extreme physical and environmental elements, in combination with the highest performance equipment. Each job was scored against five key factors, including physical labour, fatality/injury risk, environmental exposure, speciality training required and years of education. Ranked in first place, Oil and Gas Engineers undertake a mentally and physically demanding role, working around highly combustible products and operating heavy machinery. Due to the 24/7 nature of Oil Installations, incumbents were subject to extreme working conditions, including waves and weather for the duration of their contract, making this profession The Most Rugged 2020.

DIGITALISATION

Copyright© 2020 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

SPONSORED BY

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DIGITALISATION

OGV BUSINESS BREAKFAST AT OTC 2020 Tuesday 5th May 7:00-9:00am The Post Oak Hotel at Uptown Houston Chaired by Matthew Abraham

SIGN UP NOW AT

www.oilandgasvisionjobs.com/events

OGV Transition: Digital Leadership In Energy Join OGV Transition for a showcase of the latest digitalisation and innovative technology impacting the energy sector, 10th September 2020, TECA, Aberdeen.

Now entering its second year, OGV Energy introduces a new innovation event- OGV Transition. Following the success of Innovate 2019, OGV Transition 2020 will be a bigger and better digitalisation and technology conference and exhibition which welcomes global delegates and industry leaders to Aberdeen, Scotland,

www.ogvenergy.co.uk I March 2020

for a showcase of the latest digitalisation and innovative technology impacting the energy sector. Sponsored by Librestream, a company with a vision to empower workers with technologies that help them rapidly diagnose, inspect and maintain assets anywhere in the world, this pivotal event will feature expert speakers debating relevant and timely topics as well as exhibitors including Intelligent Plant, Bureau Veritas, TAAP, ANSYS and Geoforce; all showcasing a variety of digitalisation and innovative technologies. Expert speakers, from the fields of technology, innovation and digitalisation, will be announced shortly through OGV Energy social media channels and will include participation from companies such as BP, ORE Catapult, Neptune Energy, TAQA, Stena Drilling and OGTC. They will be considering the sector’s preparedness to align the cultural and technological balance required for digitalisation, the impact of data-sharing, big data, IP and share price as well as strategic leadership and Integration. Digitalisation is impacting every aspect of the Energy sector; this has been seen in the

fundamental shift into the digital age and the emergence of a digital oilfield market predicted to exceed $30.7 billion by 2020. As digital transformation expands its reach across the industry, bringing with it digital drilling and production technology, operational efficiency, data-driven operating models, distributed ledger solutions, lower per barrel production costs and revolutionised supply chains, now is time to embrace the digital oilfield. OGV Transition will serve as a platform to discuss and promote this rapidly evolving digital landscape, bringing together CEOs, CIOs, VPs of Operations & Production, Heads of IT, Engineering Solutions & Advanced Analytics Directors and Asset Managers.

FOSSIL FUELS

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MARCH

UK North Sea Oil & Gas Review By Tsvetana Paraskova

Energy transition plans, industry reports, and several company contracts and updates were the highlights in the UK oil, gas, and energy industry between the middle of January and mid-February.

Roadmap 2035:

OGUK, the leading representative body of the UK offshore industry, outlined its transition plans at the end of January. “The facts are that the climate is changing, and we must all change if we are to protect our planet for future generations. It will require constructive, collective and coordinated action to decarbonise a largely fossil fuel-based society which has, in relatively few years, helped to dramatically improve the living standards, health outcomes and quality of life that many of us so freely enjoy today,” OGUK Chief Executive Deirdre Michie told an audience of politicians, policymakers, and campaign groups in Edinburgh. OGUK pledged that the UK offshore would be a net-zero oil and gas basin by 2050 in terms of domestic production emissions. The association will aim to reduce emissions from 14 million tonnes – currently 3% of the UK’s total greenhouse gas emissions – to 0.5 mt – in line with the Climate Change Committee outlook. “It will require significant investment, new technology and close working with the renewables sector in Scotland and across the UK,” Michie noted.

Deirdre Michie, Chief Executive, OGUK

FOSSIL FUELS

Carbon Capture Utilisation and Storage (CCUS) and hydrogen are two of the opportunities on the path to achieving netzero emissions, the offshore association says.

Colour code #222a68

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FOSSIL FUELS and a British project, ScottishPower Renewables’ East Anglia ONE, accounts for 102 such turbines, Rystad Energy’s analysis showed.

UKCS Mediation Pilot The Oil and Gas Authority (OGA) launched on 3 February a year-long ‘UKCS Mediation Pilot’, aimed at testing the extent to which mediation can resolve individual disputes between oil and gas licensees, operators, and infrastructure owners in the UK Continental Shelf. According to the OGA, disputes often arise because of entrenched licensee behaviours or communication breakdowns that could be time and resource-consuming for the companies involved in those disputes.

“The higher share of jacket foundations follows the trend of offshore wind farms being placed in deeper waters in more mature regions. As shallow-water areas get more populated, countries that look to increase their offshore wind capacity must look to deeper waters,” said Alexander Flotre, Rystad Energy’s Vice President & Product Manager Offshore Wind.

Oil & Gas In company news and contracts, BP announced on 4 February first oil from Alligin field west of Shetland. Alligin, a 20-million barrels of oil equivalent field, was originally expected to produce 12,000 barrels gross of oil equivalent a day at peak. The project’s performance has been better than expected, however, reaching 15,000 barrels gross of oil equivalent a day at peak since start-up in late December, BP said.

Subsea UK Business Activity Review In early February, Subsea UK launched it’s Business Activity Review 2019 which showed that the total value of UK subsea output rose to nearly £7.8 billion in 2019 fiscal year from £7.5 billion in 2017. Over the past two years, employment has remained relatively unchanged at around a 45,000 workforce, but Subsea UK expects employment in the industry to rise to over 54,000 by 2022 as nearly 80% of firms expect to recruit more staff in the future.

A week later, BP unveiled a net-zero aim to become a net-zero company by 2050 or sooner and halve the carbon intensity of the products it sells by 2050 or sooner. Prosafe said in its operational update in January that Safe Caledonia would begin a 162-day contract for Total at the Elgin complex in the UK North Sea in mid-April 2020, with one 30-day option. In addition, Safe Zephyrus will mobilise for the 80-day Shell Shearwater contract in the second quarter of 2020, with one 30-day option in the contract.

“The findings in this report reveal that this decline has been arrested with a clear upturn in activity, largely due to an increase in output from subsea SMEs and more activity in renewables, particularly offshore wind,” Subsea UK said in its report.

Carbon Storage Site Identification A new study of the Heriot-Watt University will focus on identifying the best sites for potential carbon storage sites among the gas fields in the southern North Sea, to help the UK reach its net-zero target. The £1.4-million study to map the carbon storage potential received funding from the Oil and Gas Technology Centre (OGTC) and support from the OGA, offshore operators, and data owners. The southern North Sea is one of the most promising options for large-scale carbon capture and storage in the UK, Professor John Underhill from Heriot-Watt University says. The OGA called on decommissioning professionals to increase their usage of the OGA’s interactive Decommissioning Learning microsite to capture and promote late-life and decommissioning learnings. “It is so important that industry continues to share learnings and there are a huge number of examples where companies are working differently to save time and costs, so this microsite offers an excellent platform for promoting these examples,” Pauline Innes, Head of Decommissioning at the OGA, said on 13 February.

New Offshore Wind Projects Galvanise Manufacturing On the same day, independent energy research and business intelligence company Rystad Energy published a new analysis, which found the global offshore wind projects that are set to start up this year will make 2020 the year with the highest ever use of steel jacket foundations for new developments, and this trend will be led by the UK. A total of 258 turbines which will be installed this year will have a jacket foundation,

www.ogvenergy.co.uk I March 2020

The OGA called on decommissioning professionals to increase their usage of the OGA’s interactive Decommissioning Learning microsite to capture and promote late-life and decommissioning learnings.

Servelec Controls said on 16 January that Centrica Storage had hired the company to help prepare Easington Terminal to process gas from Tolmount in the Southern North Sea, a new development which is set to extend the site’s lifespan by 10 to 15 years. The Tolmount field development is expected to produce enough gas to supply around 2.5 million homes and is scheduled to come on stream in winter 2020. To facilitate the additional gas, modifications must be made to the Easington site and this will include an upgrade and rationalisation of the existing functional safety systems, Servelec Controls, a provider of safety and control systems, said. Egdon Resources said on 21 January it had signed a farm-in deal with Shell under which the supermajor will buy a 70% working interest in two licences in the North Sea, which contain the Resolution and Endeavour gas discoveries, respectively. Egdon currently holds 100% in the two licences. After buying 70% in each of them, Shell will be appointed licence operator, while Egdon will keep a 30% non-operated interest in both licences. Dana Petroleum has awarded Ocean Installer a contract for work at the Triton Area Development in the Central North Sea around 190 km east of Aberdeen. Under the contract, Ocean Installer will work on the installation and trenching of a Flexible Production Flowline at the Guillemot field, with offshore operations scheduled for Q2 2020, Ocean Installer said on 22 January. Jersey Oil & Gas plc has signed a conditional agreement to buy operatorship of and an additional 70% working interest in Licence P2170 from Equinor UK. The consideration for the acquisition consists of two milestone payments and a royalty based on potential future oil volumes produced from the Verbier field, Jersey Oil & Gas said on 27 January. Vroon Offshore Services announced on the same day that platform-support vessel (PSV) VOS Prelude had been chartered to Eni UK Limited to support a plug and abandonment/decommissioning campaign in the southern North Sea. The VOS Prelude is fixed for 31 months firm, with further options if required, and will operate out of the port of Great Yarmouth.

FOSSIL FUELS

21

located offshore Norway, the UK, or the wider EEA region, and to be producing or nearing production to provide cash flows to fund organic growth in a low oil price environment, Longboat Energy said on 6 February. Thailand-based offshore services provider Mermaid Maritime said it incorporated an indirect wholly-owned subsidiary, Mermaid Subsea Services (UK) Limited, in the UK on 7 February. Mermaid Maritime will use the new company as a vehicle to expand its subsea and related services into the North Sea sector.

Neptune Energy announced on 28 January plans for a digital subsurface programme, aimed at discovering hydrocarbons 70% faster, reducing exploration costs, and bringing discoveries into production up to three years earlier than current industry standards permit. Offshore engineering solutions provider Aquaterra Energy has signed a Memorandum of Understanding (MoU) with Oceaneering International Services to cooperate in offering complete decommissioning and late-life solution packages to the North Sea oil and gas industry. The companies will offer tooling and services in four areas: platform well abandonment, subsea well abandonment, topside and jacket removals, and subsea removals. Serica Energy said on 30 January that the Bruce, Keith, and Rhum fields were temporarily shut down and would not produce for around 2 months, due to engineering work to ensure that a caisson, which had parted below the water line, is properly secured.

the sanction of the Phase II Captain enhanced oil recovery (EOR) investment programme for the first half of the year. Ithaca Energy and a global investment company have signed a non-binding letter of intent to set up a new infrastructure company that would be held 40% by Ithaca and 60% by the investment company, Ithaca’s parent Delek Group said on 9 February. If the non-binding LOI leads to forming a new company, the new firm will buy part of Ithaca’s production facilities from Ithaca as part of a sale and charter agreement. EnQuest expects its 2020 production at between 61,000 and 68,000 boepd, down from the 2019 output, due to shutdowns at the Thistle and Heather fields, expected to be partially offset by new wells drilled at Magnus and Kraken, the company said in an operations update on 4 February.

BP unveiled a net-zero aim to become a netzero company by 2050

The consortium PBS was awarded on 30 January a contract to deliver General Maintenance & Operations Support services to Total Exploration & Production assets in the North Sea. Under the terms of the fiveyear contract, PBS (Ponticelli, Brand, and Semco) will manage asset integrity, maintenance and reliability, fabric maintenance, shutdowns and modification projects for all of Total UK’s operated assets, which currently produce over 250,000 barrels of oil equivalent per day.

Commercials, Contracts, M&A Ithaca Energy said in its operations update on 3 February that it was exploring potential options to optimise its capital structure, including a potential initial public offering (IPO). Ithaca also plans

RockRose Energy has signed a deal to buy the Cotton gas field in the UK Southern North Sea from Speedwell Energy. The Cotton field is located 100 km east of Scarborough between the Kilmar and Garrow fields in both of which RockRose holds 15%.

“This acquisition gives RockRose the option of a significant amount of production and reserves in an area of the Southern North Sea Gas Basin in which we already have other producing assets. We look forward to carrying out further evaluation of the discovery prior to committing to FID,” said RockRose’s Executive Chairman Andrew Austin. Subsea systems technology specialist Interventek announced on 5 February an award of a multimillion-pound contract to supply three 7.375” 10,000psi in-riser landing string completion systems for an international OEM client. Interventek has won contracts worth over £10 million over the last twelve months, and has relocated to larger premises in Aberdeen, to better service the growing demand for its specialist Revolution valve technology. Longboat Energy, the new company set up by the former management team of Faroe Petroleum, targets an initial acquisition to deliver near-term cash flow. The initial targets are expected to be

Mocean Energy, Chrysaor, subsea energy storage experts EC-OG, and AUV specialist Modus have teamed up to look at the potential of using renewables for subsea power. The project is funded by the partners together with the Oil and Gas Technology Centre (OGTC), and will look to use Mocean Energy’s Blue Star wave energy converter and EC-OG’s HALO subsea energy storage system to power subsea tiebacks or residential AUVs. Premier Oil’s creditors approved on 12 February the proposed acquisition of North Sea assets from BP. In early January, BP agreed to sell its interests in the Andrew area in the central UK North Sea and its non-operating interest in the Shearwater field to Premier Oil for US$625 million. i3 Energy plc said on 13 February it was making good progress in its farm-out process to fund a 2020 appraisal drilling program in Blocks 13/23c in the UK North Sea. The data room is now open and companies are actively evaluating the opportunity, said the company, which also plans to list its shares on a secondary exchange. The listing is not being done in preparation for an imminent equity placing as indicated by market talk, i3 Energy noted. Well-Safe Solutions announced on 13 February the award of work to Schlumberger for the provision of Plug and Abandonment Well Services. Schlumberger will supply cementing service, wireline services, wellbore fluid services and fishing, milling and swarf recovery services.

RockRose Energy has signed a deal to buy the Cotton gas field in the UK Southern North Sea from Speedwell Energy.

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By Yang Guo, Aaron Zigeng Du and Manish Patel, DNV GL – Oil & Gas

How can structural integrity management data help decommissioning? More than 400 oil and gas fields have stopped producing in the last five years and, during 2018-22, analysts estimate USD32 billion to be spent on decommissioning.¹ Shell, for example, is expected to book GBP1.152 billion on decommissioning in the North Sea before 2025, with the Brent field being the main driver, along with Pierce and Curlew.²

For ageing assets no longer producing at economically sustainable rates, identifying the right time, method and model for decommissioning is critical in managing the cost. Given there is no return on expenditure, it is now widely appreciated that procedure optimisation with early account for decommissioning can help to reduce the inevitable financial burden.

Weight Control

Knowledge of Structural Condition

For any asset to be decommissioned, adopting and maintaining a robust weight control procedure as early as possible can be vital in choosing the right decommissioning method, avoiding schedule delays and preventing cost escalation

For integrity issues that are difficult to identify from a decommissioning survey, a sound anomaly management system and the resulting anomaly database can be a useful reference for any decommissioning project. Being a centralised database registering anomalies from all past inspections, it provides insight into the evolving history of an anomaly which can fed into the development of regular inspection plans as well as decommissioning planning.

For instance, when lifting methodology needs to be developed, if the weight of an asset is close to the capacity of the crane or the removal vessel, the completeness and credibility of existing weight records can play a vital role during the decision-making process. DNVGL-RP-N102 is DNVGL’s latest code of practice for marine removal operations, providing guidelines on the level of allowance to be introduced for weight information.

As an example, during early consultation for the removal of a North Sea jacket, various possible methods were considered against the cost and schedule. Without the existence of an anomaly database, the asset owner would need to commission and wait for the results of a pre-decommissioning survey, which can cause lags in efficiency. In another instance, loose bolts for a section of a J-tube close to the seabed were recorded in the anomaly database but missed from the commissioned subsea survey. Apart from safety implications, this margin of error can be reduced by an anomaly database, saving hundreds of man-hours, if not more. Information Management Asset-specific knowledge, together with the weight database, can help minimise the efforts associated with weight reviews and offshore surveys. Most aging assets have experienced modifications. For decommissioning, SIM providers are uniquely positioned to verify the records of all implemented modifications and identify key information relevant to the decommissioning exercise. Forward looking, SIM practitioners can review, justify and close-out incoming changes and make simultaneous updates to DMS components and structural model. This way, an up-to-date asset profile is ready-made for decommissioning.

Fig. 1

Sharing SIM data for decommissioning A structural integrity management (SIM) system is already widely adopted by offshore assets’ operators. It ensures that assumptions made in the design phase of an asset are safely monitored and assessed from conception through to end of life. The assessments, according to API RP 2SIM, are continual with interactions broadly falling into four key areas: data collection, data evaluation, SIM strategy, and the inspection programme. Over the past two decades, DNV GL’s Fixed and Floating Structures (FFS) team has been using the SIM system on more than thirty offshore assets worldwide.

Adopting and maintaining a robust weight control procedure as early as possible can be vital in choosing the right decommissioning method

A data management system (DMS), as shown in Figure 1, is the backbone of the SIM system. It is set up for archive and retrieval of structural and inspection data, collected during design, construction and operational stages of an asset. Boxes highlighted in blue are DMS components highly relevant for decommissioning. Fig. 1: Typical Components of a Data Management System

Comparing tasks commonly associated with a decommissioning project, such as removal, lift and transportation, there are many areas in SIM DMS where efficiencies can be targeted during an asset’s operational life. Key areas such as weight control, knowledge of structural conditions, and information management are assessed.

www.ogvenergy.co.uk I March 2020

Digital Decommissioning Digital innovation is expected to play a stronger role in decommissioning projects. DNVGL is working with Rolls-Royce and the Norwegian University of Technology Science (NTNU) to develop the concept of Digital Twins, aiming for a cloud-based virtual representation of marine assets. The creation of a global weight library is also underway to provide a valuable benchmark tool for decommissioning weight assessment. This will be available on Veracity3, an open and secure platform built by DNV GL, facilitating the exchange of datasets, APIs, applications and insights.

FOSSIL FUELS

Q&A well

decommissioning An interview with Gary Smart, CEO at Unity

With the Oil and Gas Authority (OGA) striving to reduce offshore decommissioning costs by at least 35% from 2017 to 2025, the sector is challenged to ensure efforts are made to meet this target. The latest OGA report (July 2019) estimates that the total cost of decommissioning remaining in UK offshore oil and gas production, transportation and processing infrastructure has reduced by 17%, on a like-for-like basis, from 2017 – 2019, from £59.7bn to £49bn.1 A 17% reduction in just two years is good news for the industry, but there is still a way to go. Gary Smart, CEO of Aberdeen-based Unity, discusses the future of the well decommissioning sector and how technology plays a vital role in meeting cost reduction targets.

Q

What do you think is the biggest challenge facing the decommissioning sector?

It’s no secret that well decommissioning is an expensive process, with zero return for operators. Drilling projects, for example, have a defined journey and the operator knows the strategy from FEED through to first oil. When discussing well decommissioning however, there are numerous operational challenges, some of which remain unknown until after well reentry and P&A operations commence. The supply chain is undergoing a transition, with larger players emerging and smaller, more specialist suppliers drawn in to provide the most appropriate expertise for each project. This is where we are seeing efficiency gains, but often this approach is being led by the operator, rather than the supply chain proactively forming alliances. There needs to be more co-operation and a willingness to work together to help share knowledge and learnings and deliver more streamlined solutions. The supply chain, along with its clients, is still being educated so there is some way to go before it matures.

Q

What role does new technology play in supporting decommissioning projects?

With operators such as Shell planning to spend $1.5bn on UK decommissioning by 2025, this level of expenditure demands the best practices and technology to deliver the most efficient solutions. Investing in R&D is vital to ensure appropriate technology is brought to market in time. Two examples from Unity include their Temporary Abandonment Cap Test Tool (TACTT), used as a pressure verification technology for suspended mudline wells, and the Surface Intervention System (SIS), both industry firsts. Whilst the SIS is already wellproven, Unity is about to launch an application for wellhead decommissioning. As the only multi-functional, rigless system for shallow well intervention, with integral well barriers and rapidly interchangeable tools, it can be used as a low-cost alternative to conventional methods. The SIS can quickly inspect the well, set plugs and remove the Xmas tree in a single deployment requiring only two operators. Its innovative ‘elephant’s foot’ tree jack, combined with a powerful but finely controlled push, pull and vibrate function, safely removes end of life wellhead equipment. While the development of new technology is important, it’s crucial that the supply chain understands the operator’s challenges and can identify solutions to improve efficiency and reduce cost. Through close collaboration we can ensure new systems are developed to tackle issues head-on.

Q

How do you see the well decommissioning sector progressing in the next five years?

Extending the life of assets is still a major priority for operators and ourselves. With a focus on ensuring that all reserves have been recovered, I don’t foresee a sharp rise in the number of decommissioning projects right away. However, over time, the curve will rise more steeply. We may see further government assistance for operators to meet their statutory obligations, building on recent initiatives such as the Scottish Government’s Decommissioning Challenge Fund. The programme, delivered by Scottish Enterprise and Highlands and Islands, provides funding and assistance to enhance the capability of the Scottish supply chain and has already commissioned several successful projects.

Q

23

What do you think is key to delivering robust decommissioning projects?

The industry has made significant strides to become more collaborative in recent years, but I feel this is an area in which decommissioning is still lagging. There are huge benefits to be garnered by involving multiple experts, with an aligned strategy, to deliver significant cost and time efficiencies. This is particularly true when combined with new technology. By bringing such important factors together, I believe the UK will be in an extremely strong position to deliver world-class decommissioning projects for many years to come.

BRENT OIL PRICES OVER THE YEARS

1

YEAR AGO

- BRENT OIL PRICE 2019 - $66.15 Coal has historically been at the foundation of the UK’s electricity mix, but the first three months of 2019 saw the electricity grid clock up 650 hours of coal-free generation – more than was achieved during the entirety of 2017.

5

YEARS AGO

- BRENT OIL PRICE 2015 - $55.89 Chancellor George Osborne announced major changes to the North Sea tax regime, in response to difficulties facing the UK oil and gas sector. An independent survey commissioned by industry body Scottish Renewables showed that almost four in five Scottish adults (79%) believe the next UK Government should implement policies to continue to develop renewable energy

10

YEARS AGO

- BRENT OIL PRICE 2010 - $78.83 Modec selected Siemens Water Technologies to provide Seawater Reverse Osmosis (SWRO) systems for a number of Floating, Production, Storage and Offloading. Oerlikon Leybold Vacuum, a German supplier of vacuum systems, has developed a new range of dry vacuum pumps for PV applications.

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CONTRACT AWARDS Diamond Offshore wins £39million rig extension on North Sea with Apache A new £39million extension with Apache has been announced by Diamond Offshore in the North Sea, following the £480million of new work that was secured in 2019.

In 2018, Diamond secured £1.5bn total, and then secured £480m of backlog in 2019, taking the total to £1.2b which ran slightly short from the previous year.

The Ocean Patriot vessel has since obtained a 12-month extension with the US company, which is currently working in the Beryl Area, north-east of Aberdeen.

Revealing its outcomes for the year ending December 31, pretax losses stood at £311million, increasing the shortage from 2018’s year-end loss of £175million.

On top of this, Diamond won an extension with Shell contracted until March 2021 on the Ocean Valiant rig.

Incomes dropped by £96m to £723m as average day rates also declined from £244,000 to £204,000 between the fourth quarters of 2018 and 2019.

In the meantime, the world’s largest semisubmersible rig, the Ocean Great White, is currently being warm-stacked after having carried out work for Siccar Point and another operator, which remains unnamed, in 2019.

www.ogvenergy.co.uk I March 2020

For Now, the company additionally took other losses related to foreign currency exchanges and the sales of mooring equipment.

Contract Awards

25

26

FOSSIL FUELS Schlumberger to provide downhole services for Well-Safe Solutions Well-Safe Solutions has announced the award of a significant work scope to Schlumberger for the provision of Plug and Abandonment Well Services. The scope includes the supply of cementing service, wireline services, wellbore fluid services and fishing, milling and swarf recovery services. The appointment of Schlumberger was the result of a highly competitive selection process through which Schlumberger demonstrated a highly attuned and complementary strategy for well decommissioning. The work will be aboard the Well-Safe Guardian; Well-Safe’s flagship decommissioning asset.

Phil Milton, CEO at Well-Safe Solutions, said: “We are delighted to award this contract to Schlumberger following an extensive tender process. Achieving this major milestone within the timeframes we committed to, will give us access to the necessary technology and ensure our operational readiness for 2Q20.” Donald McKay, Business Development Manager at Schlumberger, said: “Schlumberger is pleased to deliver our services for well abandonment to our clients in the North Sea. The appointment of these fully integrated services shall enable significant benefit to the P&A market.”

BP awards Oceaneering two light well intervention projects offshore Angola BP has awarded Oceaneering a contract to provide comprehensive riserless light well intervention (RLWI) services offshore Angola in Blocks 18 and 31. In connection with this contract, Oceaneering has agreed to provide personnel and equipment related to its RLWI services, ROVs, survey services, and communication services integrated onto a chartered multi-purpose vessel. These services are contracted to support a multi-well campaign designed to include mechanical well interventions, well stimulations, and tree change-outs. Oceaneering’s work scope also includes project management, engineering, systems integration, offshore management, and project crews. Offshore operations are scheduled to begin in the second quarter, with completion anticipated in the late fall of 2020.

This contract follows a successful intervention campaign by Oceaneering in the same region in late 2018 and early 2019 for this supermajor and its co-developers. Jim O’Leary, VP Wells, Africa and Middle East, BP, stated, “Oceaneering has a proven track record of providing us with a much-needed RLWI rapid response solution to help restore and improve production in Angola. We look forward to working with Oceaneering on this campaign.” Rod Larson, president and CEO of Oceaneering, stated, “We appreciate BP’s continued trust in our ability to provide them with reliable, cost effective, ultra-deepwater intervention solutions in Angola. The award of this project reinforces Oceaneering’s position as a leading RLWI service provider in deepwater environments.

This is the latest example that performing RLWI from a multi-purpose vessel is a viable, more efficient alternative for production enhancement compared to performing similar services from a rig or purpose-built intervention vessel.”

Interventek secures contracts in excess of £10M and relocates to new premises. safety valves; a further two (six already delivered) 6.375” 15,000psi Revolution valves to PRT Offshore in the US, to support well completion and intervention operations in the Gulf of Mexico; and three 6.375” 15,000psi open water Revolution valves to Trendsetter Engineering in the US, that will form a critical part of their new Lightweight Intervention System.

Subsea systems technology specialist, Interventek, is celebrating continued success with the award of a multi-million-pound contract to supply three 7.375” 10,000psi in-riser landing string completion systems for an international OEM client. With this and other new business wins over the last twelve months valued in excess of £10M, Interventek has relocated to larger facilities to better service the growing demand for its specialist Revolution valve technology. Several significant contract awards have included the qualification and supply of a number of Revolution PowerPlus fail-safe shear-and-seal

www.ogvenergy.co.uk I March 2020

Less than a year ago, Interventek announced its first phase of business expansion, adding office space, in-house testing facilities and new staff, but recent success has demanded a relocation to larger, modern premises at ABZ Business Park in Aberdeen, providing circa 20,000 square foot of office and workshop space, plus additional yard space, effectively tripling their footprint and dramatically increasing capacity. The young, technology driven business was established by technical entrepreneurs, Gavin Cowie and John Sangster, during the downturn of 2014, after seeing a gap in the market to supply an innovative subsea safety valve solution which would address critical industry requirements. More recently, and with industry backing, Interventek has diversified its product range with the addition of a unique, compact control system

and a full subsea in-riser landing string completion and intervention system – resulting in this most recent supply contract. The company now employs twenty-five staff at their Aberdeen headquarters and expect these numbers to increase to thirty by the summer. Gavin Cowie, managing director of Interventek said: “With innovative in-house engineering, our core valve technology uniquely addresses critical performance issues faced by other shear-and seal well control valves. For the first time, it offers operators a reliable safety solution whilst reducing the component size, complexity and cost of subsea intervention and completion systems. This will also enable deeper water and higher temperature applications and will increase industry efficiency and production for many more years to come. “We have been well rewarded with commercial success since our core technology was qualified and are very grateful to the operators and service companies that have supported us throughout the process. But this is just the start, and we are excited about what is to come in future, with a forecast increase in product manufacture and supply, plus further technology development in the pipeline.”

Contract Awards

27

Saipem awarded EPCI offshore contracts Saipem has been awarded several engineering, procurement, construction and installation (EPCI) contracts in various countries around the world worth over US$500 million.

production flowlines, jumpers and the installation of a Subsea Production System (SPS) in water depths ranging between 400 and 600 m to be carried out by Saipem vessels FDS and Saipem 3000.

The first EPCI contract has been awarded by Saudi Aramco in the Kingdom of Saudi Arabia as part of the Long-Term Agreement in force until 2021.

In the same region, specifically in Equatorial Guinea, Saipem has also signed a contract with Noble Energy for the offshore installation of a 70 km gas pipeline connecting the Alen Platform to Punta Europa on the coast.

The scope of the offshore work encompasses the design, engineering, procurement, construction and installation of a 36 in. carbon steel pipeline onto the existing network around the Ju’aymah area and brownfield services at the associated offshore platform. Furthermore, in West Africa, Saipem has been assigned a contract by Eni Angola S.p.A. related to Cabac¸a and Agogo Early Phase 1 developments. The scope of work includes the EPCI of risers,

Additional minor contracts awarded are related to the decommissioning of existing infrastructures located in the Thistle Field of the North Sea to be executed by the Saipem 7000 and two other offshore transportation and installation contracts in the Middle East and the Gulf of Mexico. Francesco Racheli, Saipem E&C Offshore Division COO, commented: “These new contract awards

confirm the diversified nature of our core market segments and contribute to consolidating the historic relationship with our clients who know they can constantly rely on our support in order to pursue their safety, efficiency and reliability targets. A good start to the year for the E&C Offshore division and confirmation of the strategic positioning of the company in the Middle East and West Africa”.

Sparrows Group’s cranes to support Qatargas’ North Field expansion North Field is the world’s biggest single non-associated natural gas field, located offshore north-east Qatar peninsula. The field has recoverable reserves of more than 900 trillion standard cubic feet, or approximately 10% of the world’s known reserves. The expansion project includes the development of four new LNG trains and eight wellhead platforms, where 80 new wells will be drilled.

Sparrows Group has secured a contract to manufacture three cranes for Qatargas’ North Field expansion project. The project, awarded through engineering firm McDermott International, will see the firm deliver two of its EC750 cranes for installation on wellhead platforms, as well as an EC1000 crane for a riser platform.

The cranes, which will be manufactured to API specification 2C 7th edition, are expected to be completed in Q4 of this year. On delivery to Batam, Indonesia, where the platform topsides are currently being constructed, Sparrows will oversee installation and commissioning of the cranes. Once on-location in the North Field, Sparrows’ local team in Qatar will support the continued operation of the cranes. Spare parts will be stored locally, ensuring future maintenance work can be carried out efficiently.

Stewart Mitchell, Sparrows Chief Executive officer, said: “We have a strong presence in Qatar and our ability to provide ongoing support in-country for safety critical equipment was a key factor in us securing this project. The award is a testament to our experienced local workforce who continue to deliver operational excellence for our customers. “The North Field expansion is a key project for the Middle East and will see LNG production capacity increase by 43% upon completion. We’re excited to be part of this key development in Qatar and look forward to working closely with Qatargas and McDermott.” Sparrows currently employs approximately 300 people across the Middle East at its bases in Qatar, Saudi Arabia, Abu Dhabi and Dubai.

Petrofac awarded US$1.65 billion contracts for Abu Dhabi mega project Petrofac Emirates has been awarded two contracts, together worth around US$1.65 billion with Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates. The engineering, procurement (including novated long lead items), construction, transportation, offshore installation and commissioning contracts are for ADNOC’s Dalma Gas Development Project. The work scope encompasses offshore packages at Arzanah island and surrounding offshore fields, located around 140 km off the north-west coast of the Emirate of Abu Dhabi. The first package, valued at US$1.065 billion, is for gas processing facilities at Arzanah island. Under the terms of the 33-month lump-sum contract awarded to Petrofac, the scope of work includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure.

For the second package, valued at US$591 million, Petrofac is leading a Joint Venture with SapuraKencana HL Sdn. Bhd. Abu Dhabi. Under the terms of the 30-month lump-sum contract, the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables. The Dalma project is a key part of the Ghasha ultra-sour gas concession which is central to ADNOC’s strategic objective of enabling gas selfsufficiency for the UAE. George Salibi, Chief Operating Officer – Engineering & Construction, commented: Petrofac has a strong track record in the UAE, with a presence here since 1991 and around 3,000 staff in country. We are fully committed to supporting continued and sustainable investment in Abu Dhabi’s oil and gas industry

through our strategic focus on maximising local delivery, and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner.

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Conducted by Craig Jamieson and Oddmund Føre @ Rystad Energy

RYSTAD ANALYTICS

Database version: Rystad Energy Databases February 2020

RYSTAD ANALYTICS SPONSORED BY

Rystad offer global and regional tools tailored specifically for in-depth analysis of the upstream, oilfield service, energy markets and renewable energy industry. The consistency of data is a result of our systematic research by combining publicly available information and Rystad Energy’s estimates and models. Our analysts gather data from company reports, investor presentations and press releases, governmental sources, as well as public institutions such as IEA, OPEC, USGS, and NPD.

www.ogvenergy.co.uk I March 2020

RYSTAD ANALYTICS

Database version: Rystad Energy Databases February 2020

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PROUD TO BE IN PARTNERSHIP WITH

OGV Energy is delighted to be working in partnership with global energy knowledge house, Rystad Energy, to bring industry insights and analytic detail to our readers in Oil & Gas. As the sector continues to digitise operations on a project and company basis, this high-level monthly data aims to provide key information in context from an industrywide perspective and demonstrate the technology available for those seeking deeper insights to enhance strategic planning and development.

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30

FOSSIL FUELS

Conducted by Craig Jamieson and Oddmund Føre @ Rystad Energy

www.ogvenergy.co.uk I March 2020

RYSTAD ANALYTICS

Database version: Rystad Energy Databases February 2020

P

Decommissioning Projects

Current (Fields)

OPERATOR

P EXPLORATION (Don - Miller)

(Cheviot)

Decommissioning Projects (Fields)

UK HOLDINGS

BP EXPLORATION - Vorlich - ETAP ) DANA PETROLEUM E&P ONOCOPHILLIPS

ANA PETROLEUM E&P ENQUEST (Hudson)

PLC (Sullum Voe Terminal -Thistle - Magnus and SVT All Assets - Ninian - All UKCS)

NI UK LIMITED EQUINOR ASA (Big Dotty - Little Dotty - Dawn - Hewett)

(Utgard) NQUEST PLC (EnQuest Producer) FAIRFIELD

REMIER OIL PLC (Lancaster)

ENQUEST PLC (EnQuest Producer)

(Glamis - Huntington - Balmoral - Rita & OIL HunterAND - Caledonia) INDEPENDENT GAS

INEOS INDUSTRIES (Cavendish)

Blythe - Elgood)

INEOS INDUSTRIES OCKROSE ENERGY (Brae Bravo - East(Breagh) Brae)

NEPTUNE E&P (Minke - Juliet)

OYAL DUTCH SHELL ITHACA ENERGY INC. (Various - Brent - Atlantic and Cromarty - Curlew - Goldeneye)

PIRIT ENERGY

(Captain)

PERENCO OIL & GAS (Guinevere - TYNE - Pickerill)

(Ensign - South NEPTUNE Morecambe - Audrey E&P- Annabel - Ann & Alison Markham - York - Trees)

(Seagull)

PREMIER OIL PLC

AQA EUROPA B.V

PARKMEAD GROUP PLC (Eider - Tern - North Cormorant - Cormorant Alpha)

(Glamis - Huntington - Balmoral - Rita & Hunter - Caledonia)

WALDORF PRODUCTION (Perth) (Renee / Rubie)

PERENCO OIL & GAS Discovery&Projects (Leman Indefatigable - Wollaston)

P EXPLORATION PING PETROLEUM (Andrew - Murlach (Avalon) - Clair South)

LIMITED

OIL PLC (Catcher - Tolmount)

REPSOL SINOPEC RESOURCES

QUINOR ASA (Tain - -Montrose) (Peik - Bressay - Rosebank Frigg - Mariner East)

ROYAL DUTCH SHELL URRICANE ENERGY (Lincoln, Warwick) (Gannet D Pipeline Replacement

HARIS ENERGY LTD (Pilot)

Jackdaw - Penguin Area - Fram)

SERICA ENERGY (Columbus)

s and contact details, follow the link SICCAR POINT ENERGY m/project-pathfinder

(Suilven - Tornado - Cambo)

TAQA EUROPA B.V. (Harding North)

TOTAL UPSTREAM UK LIMITED (Edradour - Glenlivet) WHALSAY ENERGY (Bentley) WHALSAY ENERGY (Sillimanite)

REPSOL SINOPEC RESOURCES (Tartan - Buchan - Beatrice - Fulmar)

ROCKROSE ENERGY (Brae Bravo - East Brae)

ROYAL DUTCH SHELL (Various - Brent - Atlantic and Cromarty - Curlew - Goldeneye)

NOOC LIMITED PREMIER (Blackhorse)

NQUEST PLC (Eagle)

CONOCOPHILLIPS (Caister CM - Murdoch - CMS - MacCulloch)

ENI UK LIMITED (Big Dotty - Little Dotty - Dawn - Hewett)

ENERGY

EPSOL SINOPEC RESOURCES (Southwark (Tartan - Buchan - Beatrice - Fulmar)

CNR INTERNATIONAL (Ninian)

DNO NORTH SEA (Schooner)

HIBISCUS PETROLEUM (Marigold & Sunflower)

ERENCO OIL & GAS HURRICANE (Guinevere - TYNE - Pickerill)

BP EXPLORATION (Don - Miller)

DANA PETROLEUM E&P (Hudson)

ENERGY LIMITED INDUSTRIES (Darwin - Skye)

EPTUNE E&P (Minke - Juliet)

(Fields)

CNOOC LIMITED (Ettrick/Blackbird)

(Caister CM - Murdoch - CMS - MacCulloch) (Platypus)

NEOS (Cavendish)

OPERATOR

CENTRICA STORAGE HOLDINGS (Rough)

NR INTERNATIONAL (Alligin (Ninian)

NO NORTH SEA (Schooner)

31

Date Generated: 18-02-2020

Projects

OPERATOR

ENTRICA STORAGE HOLDINGS ALPHA PETROLEUM (Rough)

NOOC LIMITED (Ettrick/Blackbird)

UKCS STATUS REPORT

ATHFINDER - UKCS Status Report Date Generated: 18-02-2020

Project - Arran -

SPIRIT ENERGY

(Ensign - South Morecambe - Audrey - Annabel - Ann & Alison Markham - York - Trees)

TAQA EUROPA B.V

(Eider - Tern - North Cormorant - Cormorant Alpha) WALDORF PRODUCTION (Renee / Rubie)

Discovery Projects BP EXPLORATION (Andrew - Murlach - Clair South) CNOOC LIMITED (Blackhorse) ENQUEST PLC (Eagle)

EQUINOR ASA (Peik - Bressay - Rosebank - Frigg - Mariner East) HURRICANE ENERGY (Lincoln, Warwick) PHARIS ENERGY LTD (Pilot)

For additional project summaries, locations and contact details, follow the link www.oilandgasvisionjobs.com/project-pathfinder

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GREEN ZONE

One of the projects paving the way towards decarbonising the marine sector is HyDIME.

Orkney’s decarbonisation efforts reach new heights The hydrogen eco-system on Orkney, an archipelago off the north coast of Scotland, has been steadily evolving over recent years, harnessing wind and tidal energy resources for conversion to green hydrogen for use across power, heat, and transport applications.

Taking transport as an example, Orkney’s roads have seen the integration of a small fleet of hydrogen-powered vans operated by the local council and the community is now looking to the sky and sea for further opportunities to decarbonise the local energy system. The Orkney Islands are served by a fleet of ferries and small aircraft. These forms of transport provide a lifeline service to islanders and a gateway for visitors, yet they are substantial contributors to the carbon footprint of the region. The European Marine Energy Centre (EMEC) has been working with partners on a number of pioneering green hydrogen projects to enable the transition from fossil fuels to net zero and support the decarbonisation of these lifeline transport services. One of the projects paving the way towards decarbonising the marine sector is HyDIME. Using green hydrogen as an alternative fuel source, a hydrogen / diesel dual fuel injection system has been retrofitted on board the MV Shapinsay, a car ferry operating between the island of Shapinsay and town of Kirkwall on the Orkney mainland. Once commissioned, this technology could help displace up to 50% of the ferry’s use of diesel and it is expected to be trialled later this year. In addition to the technology integrated, a core focus of this project has

www.ogvenergy.co.uk I March 2020

been to overcome regulatory barriers enabling the wider use of hydrogen in the marine sector and it is hoped it will serve as a stepping-stone to more hydrogen projects in a marine environment. Orkney is also at the centre of developments in decarbonising aviation using hydrogen after the announcement of the HyFlyer project late last year. Awarded £5.3 million of government funding via Innovate UK and the Aerospace Technology Institute programme, the HyFlyer project aims to revolutionise regional air travel by demonstrating hydrogen fuel cell powertrain technology for zero-emission aviation. The project will culminate with the demonstration of a 250–300 Nautical Mile (NM) zero-emission flight out of Orkney which is expected to be carried out in 2020. HyFlyer aims to decarbonise medium range small passenger aircraft by integrating powertrain technology, replacing conventional piston engines in propeller aircraft. The conventional powertrain in the aircraft will be replaced with electric motors, hydrogen fuel cells and gas storage. Led by ZeroAvia, developers of hydrogen fuel cell powertrain solutions, the project will demonstrate a phased approach from battery power to hydrogen power, integrating the new technology aboard a Piper M-class six-seater aircraft. During the test flight programme, the aircraft will be fuelled airside with green hydrogen using a custom-made mobile refuelling vehicle designed by Fuel Cell Systems Limited (FCSL). Julian Renz, HyFlyer Project Manager at ZeroAvia, said: “Performing our long-distance demonstration flights from Orkney really gives us two advantages: First, because of the islands’ green hydrogen production, we can show end-to-end zero-emission operations for a sector that’s usually considered “hard-to-decarbonise”. Second, we believe the powertrain we develop can be key to improved regional connectivity and zero-emission lifeline services, so flying from Orkney demonstrates the first commercial opportunities for us.” Commenting on the hydrogen innovation taking place in Orkney, Richard Ainsworth, Hydrogen Projects Specialist at the European Marine Energy Centre, said:

“These exciting projects are supporting Orkney’s commitment to decarbonise our local energy system. Air and ferry transport are lifeline services for islanders and, like all our energy needs, require a shift towards becoming zero-emissions. Being able to share both our knowledge and experience from our green hydrogen projects can help make this transition a reality.”

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Image 2

Avoiding the

‘Big Bang’The Intelligent Environmental Answer to Underwater Explosive Operations Image 1

Seabed operations to locate, classify and safely dispose of UXO have in-creased significantly following the global surge in exploitation of the seabed in response to the demand for renewable energy development programmes and the associated cabling requirements.

EODEX is a new company who are collectively driven by a desire to bring unique military capabilities to the commercial arena and shape the fu-ture of specialist subsea operations. In a world where there is an increasing demand for innovative solutions, they stand at the forefront of the specialist niche market for the safe clearance of maritime UXO. EODEX methodologies provide solutions that significantly re-duce any UXO disposal effect on the subsea environment. EODEX is partnered with Alford Technologies who lead the world in providing niche low order disposal capabilities to militaries. Jointly progressing and commercialising this specialist military system, the collaboration has enabled commercial maritime UXO clearance to be achieved safely and gently. Alford Technologies has for many years, developed and manufactured excep-tional military-grade explosive tools. With a proven track record, 2 Queen’s Awards for Innovation and over 50 + patents, the company has established themselves as the gold standard in the provision of the best equipment to support the most challenging of projects. It is through the ‘Alford Innovation Hub’ that new ideas are conceived, new equipment developed, tested, manu-factured and ultimately deployed. Using Alford shaped charge technologies, EODEX can undertake UXO clear-ance without inflicting a devastating impact on the marine environment for each munition cleared. Using low order deflagration techniques munitions can be neutralised without a destructive ‘big bang’ thereby safeguarding marine ecosystems, protecting people and valuable subsea assets.

Image 3

In UXO clearance operations it is widely accepted ‘High Order’ detonation of UXO causes unmitigated stress on the marine environment. The industry urgently requires a safe and cost-efficient maritime UXO disposal solution which significantly reduces any negative impact on the subsea environment. Using specialist ‘Low Order’ deflagration methodologies, nuisance UXO can be explosively neutralised without a destructive ‘big bang’ (the explosive is burnt out rather than blown up) thereby safeguarding marine ecosystems, protecting people and valuable subsea assets. EODEX-Alford undertook a UK Government BEIS trial in October 19 with the National Physical Laboratory to determine the magnitude of difference be-tween a high order detonation and a low order deflagration; the results of this trial have been remarkable and should now be able to properly inform the in-dustry on why deflagration should be considered as the default for future mar-itime UXO clearance operations.

The advantages of using Low Order deflagration are significant: • No harmful blast noise negatively impacting on the marine environ-ment. • No unwanted second-order effect on the seabed changing its state/ structure for follow on construction activity. • No oily explosive residue pollutants and toxins in suspension in the wa-ter that follow a high order detonation. • Tried and tested military technology used by 17 nations for the last 15 years. • No metallic fragmentation over the survey area. • Cost-effective when compared to High Order disposal. • Increased safety to both people and high-value assets. Likewise using precision explosive engineering for non-UXO tasks such as decommissioning, modern explosive methodologies can give a genuinely viable alternative that takes advantage of this extremely efficient, safe and costeffective capability. Alford cutting edge explosive technologies can support the most challenging decommissioning and abandonment programmes; this modern capability now sits as a genuine alternative to current ‘cold cutting’ techniques. These systems afford maximum safety and minimise any negative impact on the marine environment, and also have the ability to develop bespoke systems in-house to overcome complex problems. These solutions are delivered by teams of experienced former Royal Navy underwater explosive specialists and together using Alfords world-leading ex-plosive systems the EODEX teams are able to provide outstanding safe, reli-able and cost-effective solutions which can be tailored to meet the most challenging subsea programmes.

GREEN ZONE

Image 1: the disposal of an identical 500kg bomb in 25m of seawater

Image 2: when subjected to a bulk charge a high order detonation results.

Image 3: when subjected to the specialist low order shaped charge, deflagra-tion results.

EODEX modern process of deflagrating a UXO, recognised as a specialist military technique, enables the explosive fill to be ‘burnt out’ and the munition to be rendered safe enabling its metal casing to be subsequently recovered as scrap. Colour code #222a68

The Digitalisation of Diving

The Digitalisation of Diving

However, what if the equipment in question actually houses and supports the life of its operators and users? What if every aspect of your life relied upon these routine processes? Wouldn’t you want these processes to become automated? Sounds like something of the future; but within the modern dive support vessel (DSV) this is becoming far more common place. When a diver enters a diving system or deploys to their subsea worksite, then supporting life itself becomes increasingly process critical. Over the last 10 years the process of controlling the divers’ life support functions have seen an increase in the use of automation. This process of “digitalising” these, historically manual controlled, functions has had a clear benefit to the safety and wellbeing of those within the systems with the expected increase in productivity. The most common way in which the diving industry has seen this introduction of automation has been by the application of process logic controllers (PLCs). These units have actually become the general term for the introduction of advanced command and control within these types of “PLC diving systems”. But what does that actually mean?

W

hen it comes to the everyday routine, no one can deny that automating processes within our daily work lives, greatly improves productivity. It has been a technological development that has seen great strides in production and safety in almost every industry across the globe. The use of automation to carry out the basic processes primarily reduces the risk of human error with mundane repetitive tasks. When you look further into the safety benefits you can see that by automating functions you can limit operator and user exposure, to inherently dangerous processes and direct equipment control, by moving command and control to safer and centralised locations.

Well to begin with, the correct term for this advanced command and control is an “automated function”. The term “automated function” derives from a series of internationally applied standards that have been employed across various industries and grown over the years as technology has advanced. The sector which has seen the biggest and most successful introduction, is that of the process sector. Automated functions have been used within process control from the early years and from the most basic of functions to the massive complex systems we have today. These systems became so common place and relied upon, that they have taken control of critical safety operations. This is where the process sector overlaps with the diving industry. The safety critical

nature of the process sector and its lessons learned, from the likes of the Buncefield incident, have allowed for the application of its “functional safety” approach. By applying this approach, all the interested parties from the client and diving operators all the way through to the end users such as divers and dive supervisors, are given the assurance that the automated life support functions of the modern DSV have met these strict safety standards. But how to we do this? The original governing standard that applies to complex system functional safety is BS EN 61508 and its full suite of supporting documents. This standard has been primarily written to give guidance on the application of electrical, electronic and programmable electronic safety based systems (abbreviated to E/E/PE within the standard) and the life cycle of how this automation is managed to ensure the safest possible application. However, as part of the full assessment and realisation of functional safety, the standard allows for the application of other technologies and also includes other factors which it refers to as “conditional modifiers” which, in turn, all attribute to the final functional safety assessment outcome. The methods and framework of the safety evaluation of safety critical processes outlined within BS EN 61508 have, since its original publishing, been adopted across a number of other standards when introducing functional safety systems, while BS EN 61508 itself is also responsible for generating a number of other “daughter” standards. These other standards are typically generated to allow for harmonisation of the BS EN 61508 processes with other specific standards and sectors. A few examples of such other standards are “BS EN 62061 - Safety of machinery”, “BS EN 9541 - Safety of machinery, Safety related parts of control systems”, “BS EN 61511 - Functional safety - Safety instrumented systems for the process industry sector” and “ISO 222011:2017 Lifts (elevators), escalators and moving walks — Programmable electronic systems in safety-related applications”.

SPECIAL FEATURE

Advertising feature

Within the BS EN 61508 standard, there are 16 defined phases in the structure of a flow chart that form the safety lifecycle of an automated function. From this lifecycle chart, the process of functional safety begins from initial concept and specification of the dive system, with 13 of the steps being completed before divers are committed to the system. Each step has its own outcomes and supporting documentation which either defines the rationale for applying E/E/PE safety related systems or understanding the mitigation that negates the need for them.

35

INTERNATIONAL ELECTROTECHNICAL COMMISSION., 2010. Figure 2 – Overall safety lifecycle. Switzerland: International Electrotechnical Commission.

When applying the BS EN 61508 framework to a dive system, the first 13 steps (which are primarily aimed at the design, build, installation and verification steps of a system) ultimately outline the responsibility of the diving contractor to ensure that the dive system manufacturer has met the expectations for safety when introducing automated functions to a safety critical process. The company will expect to have an array of documentation that supports the assessment of the automation as part of the dive system such as:

Dive System Functional Specification detailing the level of automation. Automation Functional Specification – detailing how functional safety is to be achieved. Automation based Hazard Observation (HazOp) & Layer of Protection Analysis (LOPA) with respect to Overall Safety System Specification etc.

In recent years, there have been a number of reported undesired events that have been attributed to the erroneous use, or misunderstanding, of automated functions within dive systems. During the review of these events the primary causes have typically NOT been attributed to the failure of the equipment but actually in a failure of how the automated functions have been managed. It has therefore been made clear that the most important step of the lifecycle is indeed the management step (step number 14 “Overall Operation, Maintenance and Repair” from the flowchart).

Over the last 10 years the process of controlling the divers’ life support functions have seen an increase in the use of automation.

As part of the management step, it is ultimately the responsibility of the diving contractor to ensure that they meet the various expectations of safety with each automated function. The company will typically have (but certainly not be limited to) the following: • Company specific policy for life critical automation management (this will typically differ from other forms of automation policies). • Management procedures for normal, emergency and maintenance modes (including modes for bypass, testing, etc.). • Maintenance planning, including the management of component obsolescence as technology advances. • Various registers to allow for reference by unfamiliar parties to the specific system automated functions and BS EN 61508 supporting documentation. • Proof testing procedures and results including details on percentage cover of the system functionality. • Various other details such as periodic testing, obsolescence, cyber security, software version management, managing technical changes, etc. Namaka Subsea are positioned to support, not only in the auditing and assurance of these automated systems in line with the standards, various industry guidance and company procedures, but we also have the ability to support our clients in achieving functional safety compliance and its management throughout the dive system lifespan. Namaka Subsea can support the process of functional safety compliance on existing systems, assisting to fill the gaps where steps may have been missed and also on complete new build projects.

Namaka Subsea are now also offering training courses aimed at awareness for the importance of the management systems required for life critical automated function dive systems.

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INNOVATION ZONE ENERGY OBSERVER AND CMA CGM JOIN FORCES TO MAKE HYDROGEN ONE OF THE ENERGY SOURCES OF TOMORROW * A common ambition: zeroemission shipping * A shared challenge: to deploy hydrogen on a large scale in the shipping industry * Combining the innovation of our floating laboratory with the expertise of a world leader in shipping and logistics

The CMA CGM Group, a world leader in shipping and logistics and a pioneer in the field of energy transition, is joining forces with Energy Observer, the first hydrogen vessel around the world.

A common ambition: zero-emission shipping Energy Observer, formerly a legendary race boat, is now a genuine experimental platform for tomorrow’s energy sources. It is sailing round the world in order to speed up development of the most innovative solutions for the environment. This partnership with CMA CGM deals with the development of cleaner and more sustainable energies to eliminate CO2 emissions,

greenhouse gases and air pollutants. It aims to experiment, test and develop energy solutions based on hydrogen, solar, tidal and wind power.

A shared challenge: to deploy hydrogen on a large scale in the shipping industry Hydrogen is a limitless energy source that generates up to 4 times more energy than coal, 3 times more than diesel. The green hydrogen used by Energy Observer is made from seawater using on-board renewable sources of electricity (solar, wind and hydropower). Producing and burning hydrogen does not result in any greenhouse gas or fine particle emissions. CMA CGM will contribute its industrial expertise to our floating lab, in order to promote the use of hydrogen as a zero-emission fuel source for the shipping industry in the years to come. A unifying partnership that is speeding up the development of innovative environmental solutions Energy Observer and CMA CGM R&D experts will pool their expertise and knowledge to develop technological solutions capable of limiting the environmental impact of shipping. The mobilization of CMA CGM will make possible the industrialization of new concrete energy solutions tested on board our floating laboratory. CMA CGM will also contribute its shipping and logistics expertise to Energy Observer. The Energy Observer village will be made from containers converted and transported by CMA CGM with the large-scale operational support from the whole CMA CGM network around the world. It will travel

the globe, presenting the latest technological innovations to the largest possible number of people and raising awareness about ecological transition issues among all audiences. CMA CGM: a world leader in shipping and logistics and a pioneer in the field of ecological transition CMA CGM has long been committed to protecting the environment and reducing its carbon footprint. Between 2005 and 2015, the Group reduced its CO2 emissions per container transported by 50%, and it has set itself the target of reducing it by a further 30% between 2015 and 2025.

INNOVATION ZONE

SPONSORED BY

Innovation plays a role in every economy, and many UK firms remain unaware of the full range of Government incentives available to them in support of their product or service developments. Leyton is Europe’s largest R&D Tax Consultancy, having assisted over 8,000 UK clients and returned over £500million in reliefs and incentives. The challenges and opportunities faced within Oil & Gas mean that now, firms are thinking differently and are continually improving their products and services. Leyton is proud to have returned over £35million in R&D Tax Relief, R&D Allowances, Patent Box Relief and Grant Funding to our Oil & Gas and supply chain clients.

www.ogvenergy.co.uk I March 2020

INNOVATION ZONE CMA CGM has made many pioneering decisions: * A commitment to the use of liquefied natural gas (LNG) for large capacity vessels. LNG reduces sulphur oxide and fine particulate emissions by 99%, nitrogen oxide emissions by up to 85% and CO2 emissions by around 20%; * The decision that none of its vessels will use the Northern Sea Routes in order to preserve the fragile and unique ecosystems of the Arctic; * The world’s first partnership to successfully test a latest-generation biofuel, made from recycled vegetable oils and forest residues, that reduces CO2 emissions by 80% over the entire life cycle; * The development of numerous advanced eco-technologies on the Group’s fleet to improve its performance and reduce energy consumption: optimization of bows’ shape for better hydrodynamic efficiency, innovations on the propellers and the engines to reduce fuel and oil consumption;

About Energy Observer Energy Observer is the first energy self-sufficient vessel, with zero CO2 emissions, zero fine particles, and zero noise, producing its own hydrogen onboard from seawater using a mix of renewable energies. This vessel of the future has already traveled more than 18,000 nautical miles around the world.

* The creation of a Fleet Center to which all the Group’s vessels (506) are connected 24 hours a day, 7 days a week. This unique system in the maritime transport industry makes it possible to optimize shipping routes (including by reducing speeds) in order to combine operational efficiency, safety and fuel consumption optimization, thus reducing CO2 emissions.

Next to its innovation program, Energy Observer is developing a mission of general interest to help raise awareness on the challenges of the ecological transition among all audiences, through its audio visual productions, exhibitions, and meetings with scientists. Like as modernday Calypso, the boat and her crew relate their journey around the world, in an original documentary series called « The Odyssey for the future ». Energy Observer also produces a web-series “Solutions” with a permanent focus on the 17 Sustainable Development Goals, allowing as many people as possible to discover new concrete solutions for the future.

About CMA CGM Led by Rodolphe Saadé, the CMA CGM Group is a world leader in shipping and logistics.

Tanya Saadé Zeenny, Executive Officer of the CMA CGM Group, said:

Victorien Erussard, Energy Observer’s Founder and Captain, added: “CMA CGM is a key partner in our quest for clean transport. With CMA CGM’s huge experience in the shipping industry, our respective engineers and our technology partners, we have every chance of achieving our goals, which are ambitious but increasingly realistic. We are all driven by the same passion for technology and the desire to develop alternative energy solutions. The sea is something we can all share, and it is time to share our skills in order to protect the ocean, our favourite environment. We are delighted to be joining the 500-plus vessels in the CMA CGM fleet.”

She sails around the world, stopping in many iconic cities to meet the pioneers of the ecological and solidarity transition, but also elected officials, decision-makers, shipowners and major economic players. Energy Observer demonstrates on a daily basis that fully carbon-free, decentralized and digitized energy has become a reality within everyone’s reach, applicable at various scales (remote sites, districts, cities...).

Energy Observer has received the High Patronage of Mr. Emmanuel Macron, President of the French Republic. French ambassador for the UN’s sustainable development goals, supported by the Ministry for Ecological and Inclusive Transition, UNESCO, the European Union, Irena, Ademe, and all the institutions concerned with ecology, Energy Observer is the inspiring and positive voice of the vital ecological transition.

* The launch of an international coalition for the energy of tomorrow in order to federate all transport and logistics players. Supported by the French President, this high-level coalition is working on the development of clean energies for carbon-free transport.

“CMA CGM is joining forces with Energy Observer to accelerate the development of tomorrow’s energy solutions, particularly hydrogen. Our partnership will mobilize all of CMA CGM’s know-how. Our teams of engineers and R&D experts are already working and our network around the world will be strongly mobilized to ensure the logistical support of Energy Observer’s worldwide ports of call.”

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Designed as a floating laboratory, Energy Observer experiments and validates all sorts of embedded soft mobility innovations. This real floating smart-grid, prefiguring the energy networks of tomorrow, draws its energy from nature without damaging it or wasting its resources.

Its 506 vessels serve more than 420 ports on five continents around the world and carried nearly 21 million TEUs (twenty-foot equivalent units) in 2018. With CEVA, a world leader in logistics services, CMA CGM handled more than 500,000 tons of airfreight and 1.9 million tons of inland freight in 2018. CMA CGM is constantly innovating to offer customers new maritime, inland and logistics solutions. Present on every continent and in 160 countries through its network of 755 offices and 750 warehouses, the Group employs 110,000 people worldwide, of which 2,400 in Marseille where its head office is located.

INNOVATION ZONE SPONSORED BY

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INNOVATION ZONE ANYTHING BUT ORDINARY: THE POWER OF ‘GEL’ TECHNOLOGIES

Since inception in 2005, Alchemy Oil has developed a successful reputation cleaning and removing debris from pipelines, as a result of the skills, expertise and foresight of founder, gel technologies specialist and industry veteran Jim Murray. An experienced Chemist with over 30 years in the Oil & Gas Industry, Jim made a name for himself perfecting the concept of making Gels onshore in sterile tanks, before transporting them offshore where it was cross-linked upon application to a pipeline – a first in the industry at the time. Now in its fifteenth year, Alchemy’s main product lines consist of Pipeline Gels, both aqueous and glycol-based – for use in a variety of applications-, solid Gel Pigs and a range of specialist sealants and coatings. Known for their excellence at cleaning and removing debris from pipelines, both in a base gel format or crosslinked to provide a more viscous gel which acts more like a traditional pipeline pig, Alchemy products offer a viable option to conventional pigs for a fraction of the cost.

Using different materials, Alchemy can precisely place the barrier to ensure the integrity of access ports is maintained while completely sealing an annulus, wellhead or pipeline. With demand for these products increasing, Alchemy’s HDCeal®️ is routinely used for sealing leaking control lines with great success and a recent case study, saw the product, formulated, transported and deployed in West Africa within three days and the well back in production after 24 hours - at a fraction of traditional intervention costs to replace or remove the leaking component.

Deployed from topside using available ports, Alchemy Gel products reduce the need for costly intervention and diving activity as well as reducing the requirement for traditional mechanical pigs, launchers and receivers to remove debris from the pipeline. Alchemy Gel products lift and suspend debris, allowing it to be moved up the riser and through barred Ts and other obstructions. Standard production separators and equipment topside easily handle the Gel and once cleaning operations are complete, it can be broken down to a water-based liquid through the simple application of Alchemy breaker products as and when required. Where traditional mechanical pigs cannot be used, Alchemy has developed a range of solid gel pigs, which are formulated for both high and low temperatures, adapting to any changes in the pipeline geometry and diameter as required. Suitable for multiphase lines. Gel pigs prevent hydrate formation while providing a solid interface for dewatering, or to prevent water ingress. When combined with Alchemy Aqueous or Glycol Gel series, this unique solution provides effective cleaning, debris removal and isolation capability. Ongoing development of this product line includes a novel range of Silicon-based Pigs to expand the company’s capability further. Alchemy also provides a range of specialist sealants which offers a chemistry-based solution to clean, flush and seal unpluggable pipelines. Alchemy’s HPS (High-Pressure Sealant) range comprises HDCeal®️ and LDCeal®️, which are high and low-density variants, respectively. These sealants can sink or float as required to provide a solid barrier within pipelines and wellheads at specific locations.

www.ogvenergy.co.uk I March 2020

Duncan Murray & Jim Murray

Alchemy’s other sealing product, DynaCeal®️, is virtually unique in the market. A two-part liquidbased system DynaCeal is made to set as a solid within a pipeline or valve, but which can be broken back to a liquid on demand. This allows the establishment of a temporary barrier within leaking systems such that emergency repairs, or scheduled replacements and maintenance, may be carried out.

Alchemy can be defined as the process of taking something ordinary and turning it into something extraordinary, sometimes in a way that cannot be explained – an apt description for Aberdeenshire-based Alchemy Oilfield Services and its range of unique, innovative and cost-effective pipeline solutions.

The solid plug formed to create the seal can be broken down through the application of Alchemy specially formulated DynaBreak product, which allows the seal to be dissolved and flushed out of the application area as a liquid. The plug can also be made to self-release from the pipe wall after a set period, or in other cases may be removed mechanically. The DynaCEAL®️ range is bespoke to customer requirements regarding pumping and setting times, and both HD/LDCeal®️ and DynaCeal®️ products are supplied in kit form for simple mixing and deployment at the work location by the client’s personnel. No specialist equipment or additional personnel are required, making Alchemy solutions very cost-effective. Building on their extensive experience and technology, Alchemy is now actively developing new product lines while expanding into vertical markets in the Energy and Pipeline Sector. As part of this new growth strategy, Duncan Murray, Jim’s eldest son, has recently joined the company as Managing Director to focus on expanding the Company’s client base and taking over the day to day operations. This will allow Jim, and Alchemy Oil Chemist and Quality Manager Jamie Percival, to continue developing bespoke, new and innovative products. Duncan has extensive experience within the Oil & Gas sector having spent over 20 years at Board level within Orion Group as IT Director, and latterly as Managing Director of Orion’s Commissioning and Completions division, OCCMS providing solutions to a variety of industries. Speaking of his son’s appointment, Jim said; “I’m very proud to be bringing Duncan on board this journey with me, as Alchemy continues to expand its products, markets and industrial footprint. It’s an exciting time in the Scottish chemicals sector, with Scottish Enterprise predicting increased growth, employment and international exports, and we stand ready to embrace those opportunities. Duncan’s appointment gives us the chance to continue developing our product base to ensure we are playing our part in the energy transition. The products Alchemy supply for use in the North Sea associated with oil well drilling and production are environmentally friendly and registered with CEFAS, an agency of DECC, but the work doesn’t stop there. Even with the most successful product, there is always room for refinement and improvement, and we look forward to continuing to find new and innovative solutions to industry challenges”.

INNOVATION ZONE sponsored by

COMPANY NEWS

The shifting sands of recruitment Leading oil & gas recruitment specialist firm Prodrill has experienced a significant shift in demand for personnel as the employment landscape changes. Over the last 12 months, permanent staff roles have increased by 85% across its eight key divisions in the upstream environment.

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ith a delay in decision making due to Brexit and uncertainty around forthcoming changes in legislation, this has certainly made an impact on client recruitment processes. With improved confidence in the oil and gas sector and projects now being sanctioned, companies are able to move forward and recruit talented individuals whether this be permanent, temporary or contract opportunities.

Drew Alexander

Recently published by KMPG & REC (Recruitment & Employment Confederation) UK report on jobs – in December 2019, data from UK recruiters signalled the first rise in permanent staff appointments for a year, with a further increase being recorded in January 2020. Although the rate of growth was modest, it marked the first upturn in permanent staff appointments for one year. However, in January 2020, temporary billings fell for the first time since April 2013, with several recruiters blaming this on upcoming changes to off-payroll working (IR35 reform). Drew Alexander, client relationship director of Prodrill, says all businesses have had to diversify at some point, whether it’s due to economic, political or operational demands and Prodrill, a leading name in technical oil and gas recruitment has adapted to changing recruitment landscapes that the oil and gas industry has faced over the years. This recent national report affirms what is happening across the UK’s oil and gas industry with similar trends and patterns emerging from local and national employers that we support. “We have experienced a substantial increase in interim temporary workers (PAYE) and permanent

roles, which represents the change in recruitment patterns from our clients over the past 12 months compared to the same period the previous year. We are seeing new temporary worker assignments now being issued for a longer period of time, some up to 24 months as opposed to previously shorter work scopes ranging from 6-12 months. This will give the temporary labour market some stability and offer workers longer term security of work projects. “Prodrill, has always been recognised as a recruitment partner of choice, leading the way within the contractor market. Over the past several years, we have expanded our service offering to clients by supporting their future talent acquisition plans across permanent engineering and executive level positions; our staffing division, Prodrill Permanent People, is one of the fastest growing areas of the business. Knowing our market and identifying highly skilled individuals has always been our strength, we continue to deliver the best personnel solutions to meet the demands of clients’ technical requirements and cultural values. “The imminent changes in legislation is unsettling for companies and contractors alike. Once all end user clients consider their corporate strategy, risk assessments and resource requirements, we should begin to see a level playing field and the options for workers both permanent and interim will become clearer. Strategy dependent, this may give a competitive edge for some companies subject to the terms offered to individuals, one thing is clear the industry shall always have a requirement for a flexible workforce due to the cyclic and project driven nature of the oil and gas industry.”

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7.1GW but is set to catch up to Europe’s lead at a more rapid pace; 200% growth is anticipated over in the same time frame. Today, the United States lag far behind with just 0.03GW installed, but considering 2024 operating expectations are 4.9GW, an aggressive ramp up will also be witnessed here, with capital expenditure in offshore wind likely surpassing that invested in offshore oil and gas by midway through the decade.

ON THE MOVE Sean Buchan

Managing Partner - EMEA at Ducatus Partners

As the energy mix continues to evolve, the oil and gas industry is increasingly taking a role in spearheading this transition, with the lead major oil companies have assumed in recent years gaining momentum in filtering further down the supply chain. Whilst diversification will come in many forms for those exploring greener markets, a key area of growth will be in offshore wind. A meaningful cost reduction has been achieved in recent years through increasing competition and margin deflation in the supply chain, dramatic leaps in technology and the application of learnings from previous projects being applied and refined, whetting investor appetite in forging ahead with further activity. As proof of the increasing confidence, spend on offshore wind activities over the next four years is estimated to amount to $195 billion across all parts of the supply chain. Europe is leading the way in the sector for now, with a current capacity of 22GW, expected to rise by over 50% in the next four years. The Asia Pacific region presently has

On a global scale, these figures add up to a very tangible opportunity for oilfield services companies with a track record in the offshore projects as the stream of upstream spend slows. With the firepower of a targeted approach, considered commercial strategy, deep technical expertise and a leadership team with the drive and vision to execute diversification efforts, companies can position themselves at the forefront of the energy transition. The subsea and marine sector in particular can demonstrate a highly synergistic capability in development and commissioning project components in offshore wind such as cable and foundation installation, surveying, support vessels and seabed trenching. As installed capacity grows,

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Henk van den IJssel

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project management and maintenance providers will be in line to seize a considerable position of market share, with 40% of the lifetime spend on wind farms linked to operating costs. Closer to home, the revenue stemming from activities outside of exploration and production for oilfield services firms in the North Sea has grown relatively slowly, increasing by just under 5% over the past five years, however this trend is expected to advance more rapidly over the coming decade as pressure mounts to achieve climate targets. Companies including Tekmar, Global Energy Group, DeepOcean and 3sun Group have already made headway into offshore wind in the United Kingdom and many more businesses are making a concerted effort to break into this space to proactively take hold of the prospect renewables presents in terms of growth and risk mitigation. For those that lag behind in diversification efforts, the fact that the largest FID in the North Sea by far in 2020 is pitched to be Equinor and SSE’s $11 billion Dogger Bank project will likely be a wake-up call to the potential that exists in diversifying.

Bill Bayliss

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Kevin Langan

SNC-Lavalin appoints Chief Financial Officer SNC-Lavalin has announced the appointment of Jeff Bell as Chief Financial Officer. Jeff was previously Group Chief Financial Officer at Centrica. He joined Centrica’s Direct Energy business in Toronto in 2002 where he held various senior finance positions before moving to the company’s head office in in 2008.

Jeff Bell

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There he held the positions of Executive Assistant to the Chief Executive Officer, Head of Group

Oceanteam Names New Chief Executive Officer

Netherlands based offshore services company Oceanteam has appointed a Henk van den IJssel as Chief Executive Officer. He succeeds Leidus Bosman, who resigned from Oceanteam to pursue a career opportunity outside the company. Henk most recently served as Chief Commercial Officer at DeepOcean, prior to which he led Africa operations as Managing Director. He previously held senior roles with Allseas and Acergy with a primary focus on business development, commercial management and strategy.

www.ogvenergy.co.uk I March 2020

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Strategy and Director of Corporate Finance and Group Financial Controller before being appointed Chief Financial Officer in 2015. Prior to joining Centrica, Jeff worked for The Boston Consulting Group and KPMG in Canada. He is also a current Non-Executive Director of Spirit Energy and chairs the company’s audit committee.

Optilan Appoints Chief Executive Officer

Bill Bayliss has been announced as the new Chief Executive Officer of Optilan, the global communications and security technology integrator. He will succeed Richard Buckland who founded Optilan over 30 years ago. Bill joins Optilan having previously been Group Chief Executive Officer of ICR Integrity. Prior to that he was Group Chief Executive Officer of Viking SeaTech. He is an engineer by background and has held senior leadership positions with Halliburton, Petrofac and Topaz.

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Paradigm Drilling Appoints New Managing Director

Paradigm Drilling Services has appointed Kevin Langan as Managing Director to boost growth in the global oil and gas market. Kevin has over 18 years experience and joins Paradigm in Inverurie after a nine year period in the Middle East where he held senior roles with Ulterra Drilling, Nabors Industries and OilSERV. Prior to this, Kevin worked across Saudi Arabia, Norway, Libya, Ghana and Iraq with ReedHycalog and Gyrodata.

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Ocean Installer Appoints New CEO Ocean Installer has announced the appointment of Odd Strømsnes as the company’s new Chief Executive Officer as company enters new growth phase and addresses offshore wind market.

Odd Strømsnes

Stuart Black

New Global Director Appointed to Well-SENSE Well-Sense have appointed Stuart Black as Director to assist with the company’s strategic growth plans. Stuart has 12 years experience within the energy and fast-moving consumer goods sectors, specializing in strategic planning and corporate development. Based at the company’s Aberdeen headquarters, Stuart joins Well-SENSE from Baxter’s Food Group where he held the role of head of corporate and strategic projects reporting to the group board. Prior to this he worked in the energy sector, specialising in corporate finance, business development and strategy, working with Johnston Carmichael, Evercore and Simmons Energy.

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STATS Group Appoint Chief Operating Officer

STATS Group have announced the appointment of Gary North as Chief Operating Officer. Gary has more than 40 years’ experience in the engineering and oil and gas industries. He has held senior operational management roles in Europe, North America and the Middle East in industry and gained considerable turnaround experience from his consulting career, holding executive positions in the aerospace, defense, petrochemicals and manufacturing industries, where he achieved significant business improvement and increased profitability.

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Lightsource BP announces Chief Executive Officer for its Digital Innovations Arm

Lightsource BP has announced Benjamin Kott as the new Chief Executive Officer for its in-house digital innovations arm, Lightsource Labs. Lightsource Labs was established in 2016 and has since developed a number of smart energy software and hardware systems. It has grown through acquisitions, such as of Internet of Things specialist ubiworx in 2018, which has allowed the group to improve its connectivity offerings. He will be the first person to hold this position, as the company seeks to become a digital leader and commercialize its Tribe intelligent energy management system. Benjamin joins from smart building software company Frabriq, which he founded in 2011.

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Interim incumbant Kevin Murphy will continue as Deputy Chief Executive Officer. Odd was most recently managing director at TIOS, a TechnipFMC and Island Offshore joint venture, and has more than 25 years of experience from the global subsea industry holding various senior executive and board roles.

National Subsea Centre Appoint Director

Chris Pearson has been appointed to spearhead a new, multi-million-pound Aberdeen centre for the research and development of pioneering subsea energy technologies. The centre is a match-funded partnership between the Oil and Gas Technology Centre and Robert Gordon University. Chris is currently the Solution Centre Manager for the Oil and Gas Technology Centre and prior to this held senior positions with Hydroatum, EMAS and Acegery, coving projects and operations in the oil and gas and marine renewable sectors.

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Gary North

Sparrows appoint Regional Director

Sparrows have announced the appointment of Dave Morrow as Regional Director to oversee operations in the Middle East, India and Caspian. The Middle East, India, Caspian and Asia Pacific operations had previously been managed jointly under the supervision of one single director but the recent upsurge in demand for Sparrows’ services led the company to split responsibility for the geographies. Dave has more than 20 years experience in the drilling sector, specializing in the development and implementation of business growth strategies.

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Dave Morrow

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Benjamin Kott

Chris Pearson

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PEOPLE IN ENERGY

By Shelley Milne

Rachel Meacock

Raising

bar the

Bridging two of the most prominent divides in the energy industry, Environmental Scientist Rachel Meacock is tackling the sticky issue of diversity in the Energy sector headon while simultaneously undertaking the competition for the Miss Galaxy UK title.

Although a newcomer to the industry, Rachel knows all too well the often conflicted approach people hold towards the dichotomies of beauty and science but feels her unique past-time presents an opportunity to help “push forward” the industry in shaping a culture which allows women to express their full selves, regardless of which area of the industry they work. A marine biologist with a keen interest in marine planning for sustainable development Rachel is clear about her objectives as a scientist; “my goal is to get behind the energy transition and help push it forward; the UK has such amazing policy to work with and is in a strong position to help balance carbon emissions in comparison to other countries.” But, as pragmatic as she is optimistic, Rachel acknowledges that there is yet an abundance of work to be done to propel the UK’s sustainability sector forward to make the transition from oil and gas a reality.

www.ogvenergy.co.uk I March 2020

Reflecting on her journey to date, Rachel has found her determined expression of her personal choice and identity a challenge, but this is not an issue exclusive to the Oil and Gas sector; “Many of the girls studying sciences at university believed that they needed to be plain to be taken seriously…. There was a perception, [among fellow students] that because I was doing my hair and putting on makeup that, somehow, this was time was wasted. Society puts these big divides in the middle, and it’s hard to see where they cross over.” She said, Her career as an Environmental Scientist has given her a different perspective to both equality and the Energy Transition explaining that “energy and sustainability aren’t seen to go together, but they can.” The same rules, she explains, can also apply to accept women in the industry regardless of the external choices they make.

Her foray into beauty pageantry stemmed from her pristine appearance and her love of hair and makeup. Rachel never expected pageants to become such a big part of her life. Yet, the unexpected opportunities it has created has given her greater fulfilment than she could have ever imagined. The stark contrast of beauty and science in a world which seemed determined to make her choose left many struggling to understand why she would choose to do both; “People are surprised that, as a scientist, this is something I am interested in, but for me, there is absolutely no reason for a woman to be told she can’t be both beautiful and a scientist.” Rachel also found a strong support group within her colleagues saying; “Unlike my experience at university, I am very lucky. I work with amazing women, and we do stand together, we share our frustrations and celebrate together when we can.” Despite the complexities of her role as a scientist, the occasional prejudice she, unfortunately, faces from some sectors of the industry, means that getting up on stage for pageants can be intimidating, noting the vulnerability that results from voluntarily putting yourself up for judgement. Despite this, Miss Aberdeen Galaxy is rightly proud of her contribution to the city, and it’s resident population, undertaking a wide array of charity and community work, which is, she maintains, the greatest reward for the challenges that the role creates in her professional life. “It’s all about representing my city and giving something back for all its given me.” Currently, Rachel is working towards becoming a STEM Ambassador, further bridging the divide between her two roles; as a role model for young girls and encouraging diversity in the next generation of scientists. She is also working alongside local cancer charity, CLAN to fundraise for their vital cancer support services. Regardless of others’ views and opinions, Rachel continues to find value in her work, whether volunteering as a STEM ambassador, helping our energy become more environmentally friendly, or being a leading light on the stage. With such a diverse set of challenges, Rachel relies on her hopes and ambitions to be the common thread weaving them together. Her aim to inspire other girls and women in the industry is underpinned by her determination to lead by example; a demonstration that having uncommon interests should by no means set you apart. “Never give up on something that makes you entirely who you are” She continues with undeniable optimism. “Never let anyone pressure you into thinking you will be taken less seriously by being yourself. Address things as they happen and challenge them. And, most importantly, be supportive of the women around you. We need to stick together.” ‘Transition’ may be the latest buzz word in the industry but it’s delivery lies in the hands of the developing workforce to create a cultural shift that will support it. Rachel’s contrasting roles in society is just one of many examples of positive change that can result from encouraging a greater sense of self-worth and identity, of ourselves and each other. Rachel is already tomorrow’s woman, setting the pace for a changing world. It’s the industry’s job to keep up.

SPECIAL FEATURE By Shelley Milne & Sean McHardy

Methane Hydrates: A controversial new fuel source. Scientists from Scotland and Russia claim to have identified a new method of extracting Methane Hydrate, a potentially revolutionary energy source, but one which offers challenges to those hoping to capitalise on it’s potential.

T

he methane hydrate is found primarily on the edge of continental shelves typically 500 metres below the water, contained within permafrost where it presents as ice crystals with the gas trapped inside.

According to some reports, the methane gas within the hydrate could be the next significant energy source with studies suggesting there is more energy in the methane hydrates than in the world’s oil, coal and gas put together. Therefore, it is unsurprising that countries worldwide are looking for methods to extract the gas with scientists at the University of Southampton finding indicators of the gas at several European sites. UoS Professor, Tim Minshull, said: “We found the gas hydrate is particularly widespread around Svalbard, off Norway and the black sea, but the hydrate systems have only been well investigated in a few areas, so there could be much still to discover.” Unfortunately, extraction has proved difficult due to the specificity of the conditions required for hydrates to form. These conditions are affected by several factors including pressure, temperature and the stability of surrounding liquid and gas compositions for extraction. Further to conditional challenges, the process also presents environmental and technical issues.

However, Scientists from a joint-project between Heriot-Watt University in Scotland and Skoltech Centre for Hydrocarbon Recovery in Russia have developed a new method which, they say, could reduce the environmental concerns and increase the amount of methane gas extracted. Leading research scientist at the Skoltech Centre for Hydrocarbon Recovery (CHR), Evgeny Chuvilin, said: “Our approach not only helps extract methane and prevent its free release into the atmosphere but reduces carbon dioxide emissions. I would say our method offers a double dividend in terms of environmental safety.”

Japanese scientists were among the first to begin trials with methane hydrates...

Japanese scientists were among the first to begin trials with methane hydrates, to reduce their reliance on imported energy. However, early tests in 2013 were abandoned due to mechanical issues caused by sand getting into their machines. In 2017, further Hydrate tests were conducted by Japan and China, which resulted in small breakthroughs, but experts fear mass availability remains many years away. There are also several environmental challenges related to the current extraction process, which lowers the gas pressure, potentially destabilising the seabed. This destabilisation and water release from the methane also increases the risk of landslides and, as a consequence, may create Tsunamis.

The method was tested to find the optimum pressure for extracting the gas, and the process involves injecting flue gas, created by fuel combustion, into the permafrost areas to form a new hydrate – the flue gas contains carbon dioxide which means it is contributing to the reduction of greenhouse gases in the arctic atmosphere as well as helping extract the methane gas. They use waste gases to make the flue gas with the primary sources coming from coal-burning plants, metal refineries and other industrial plants.

The team found that by maintaining the necessary conditions, they were able to use carbon dioxide in the flue gas to replace the methane hydrate and form the hydrate. As well as the challenges, harvesting Methane Hydrates also presents the industry with an opportunity; to capitalise on this new natural gas and reduce its potential for devastation as a result of climate change. Studies suggest that methane gas is 30 times more damaging to the environment than carbon dioxide, therefore, as oceans continue to warm, the risk of an uncontrolled natural release of seabed gasses to surface becomes an increasing reality. Extracting the methane is one way of proactively controlling this threat – if we can balance the risks caused by its extraction.

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COMMUNITY PARTNER Graduate Apprenticeships (GAs) provide fully-funded structured training to degree level for employees – a great way to mould new recruits from the outset and/or upskill your staff to make your business more productive.

David Bowmam and Lee Forsyth

RGU was one of the first universities in Scotland to deliver GAs and continues to be at the forefront of work-based learning across a range of disciplines. The university has already delivered successful GAs in partnership with more than 150 businesses in a range of sectors, covering the length and breadth of Scotland. Graduate Apprenticeships enable participants to earn their degree while working and are delivered in partnership with their employers over the course of four years.

Aberdeen Football Club takes education seriously One institution that has proven popular is Robert Gordon University (RGU); the Club’s Official Education Partner. A number of Club staff and players have attended RGU in different capacities, across a variety of study and course options, most recently a handful of these have been through the Graduate Apprenticeships scheme.

www.ogvenergy.co.uk I March 2020

The Club values the development of staff and players; with regular Performance Development Discussions and an ‘Investors in Young People’ accreditation alongside a dedicated member of staff to support and guide football operations; players of all ages and stages, through their education options and pathways.

Professor John Harper, Principal of RGU, commented: “Graduate Apprenticeships represent a major stepchange in learning, and were introduced to address future skills shortages in key areas. As we move into the fourth year of offering GA opportunities, it is clear these provide a solution to many business needs, equipping workforces across Scotland with the expertise and skills to navigate changing working landscapes.

David Bowman has been IT Manager at AFC since 2003 and was a mentor to the Club’s Senior IT Support Analyst, Lee Forsyth, during his IT Management for Business course.

“This latest award cements our position as a leading provider of GAs and we look forward to working with many more businesses as we drive this innovative work-based learning model forward.”

On the GA programme David said: “I think there are definitely benefits for the employer. ..staff gain graduatelevel qualifications … applying their developed knowledge and skills directly into the workplace.”

To find out more about Graduate Apprenticeships with RGU visit www.rgu.ac.uk/ga or email: gaemployer@rgu.ac.uk. For more information on the partnership and Club affiliation opportunities available with Aberdeen FC and Aberdeen FC Community Trust contact: Sarah McColl, Partnership Manager AFC: sarah.mccoll@afc.co.uk. Robbie Hedderman, Partnership & Business Development Manager AFCCT: robbie.hedderman@afccommunitytrust.org

Lee added: “To be able to study towards a degree while on the job is invaluable, and the staff at the club and RGU have been incredibly supportive. “Although I’ve managed to progress in my career without a degree so far, it’s always been on my agenda to attain a degree level qualification as I believe it is a great way to demonstrate to current and future employers my ability and to give yourself credibility.” At the beginning of this year, RGU announced 175 Graduate Apprenticeship (GA) opportunities, which will be funded by Skills Development Scotland (SDS). These GA places will start in September 2020, across a range of disciplines including accountancy, construction, engineering, data science, IT management for business and business management.

Lee Forsyth

GENERAL EVENTS MARCH Offshore Achievement Awards 19th - Aberdeen, UK OGV Transition 11th - Aberdeen, UK Australasian Oil & Gas Exhibition & Conference 11th-13th - Perth, Australia OGV Recruitment Fair 17th - Aberdeen, UK

Gas Indonesia Summit & Exhibition 10th-12th - Jakarta, Indonesia Energy Exports Conference 17th-18th - Aberdeen, UK

EVENTS CALENDAR 2020

OGV Asset Integrity 29th-30th - Aberdeen, UK JULY Mexico Oil and Gas Summit 15th-16th - Mexico City, Mexico Nigeria Oil & Gas Conference & Exhibition (NOG) 29th Jul - 2nd Aug - Abuja, Nigeria

Offshore Achievement Awards 19th - Aberdeen, UK 3rd CWC Japan LNG & Gas Summit 24th-25th - Tokyo, Japan

OGV Business Breakfast - OTC 5th - Houston, USA

The 11th International Petroleum & Natural Gas Summit 27th-28th - Beijing, China

Offshore Technology Conference - OTC 4th-7th - Houston, USA

APRIL

Topsides 12th-13th - Aberdeen, UK

International Conference For Oil, Gas & Energy Industry Conference 1st-03rd - Lahore, Pakistan

Canada Gas & LNG Exhibition and Conference 12th-14th - Vancouver, Canada

LDC Gas Forums Southeast 06th-08th - Atlanta, USA Atyrau Oil & Gas 8th-10th - Atyrau, Kazakhstan International Mining & Oil Expo 8th-10th - Ulaanbaatar, Mongolia

AUGUST LDC Gas Forum 3rd-5th - Denver, USA Roseland South Texas Oil and Gas Convention 12th-13th - San Antonio, USA Symposium on Fuel Cells and Electrolysis: Promising Energy for the Future 30th Aug - 4th Sep - Belgrade, Serbia SEPTEMBER

International Fair Petrol Station 13th-15th - Warsaw, Poland

2020 IADC Advanced Rig Technology Conference & Exhibition 1st-2nd - Texas, USA

JUNE International Caspian Oil And Gas Exhibition And Conference 2nd-4th - Baku, Azerbaijan

World Heavy Oil Exhibition & Congress 1st-3rd - Muscat, Oman

The Future of Latin America Oil & Gas Digital Transformation Summit 3rd-4th - Rio de Janeiro, Brazil

LDC Gas Forums Mid-Continent Forum 14th-16th - Chicago, USA

Oil & Gas Kenya 3rd-5th - Nairobi, Kenya

NOVEMBER

MAY

Future Oil & Gas 9th - Aberdeen, UK

ADIPEC 2020 9th-12th - Abu Dhabi, UAE

OGV Open 2020 - OTC 3rd - Houston, USA

Global Petroleum Show 9th-11th - Calgary, Canada

Lithium Latin America 25th-26th - Buenos Aires, Argentina

Hydrogen + Fuel Cells EUROPE 20th-24th - Hanover, Germany OGV Recruitment Fair 28th - Newcastle, UK

For more information about all events visit www.ogvenergy.co.uk

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LEGAL & FINANCE

Retaining and Attracting Talent – Flexibility is Key We know what the problem is, but how good will we prove to be at fixing it? By Adam Brooks, Brodies LLP

The Skills Shortage The shortage of key skills necessary to sustain and decommission the oil & gas industry is an issue focused in the minds of many business leaders. Worldwide, it is projected that the greatest shortages will emerge in the engineering discipline and there will be a significant loss of problem solving and leadership capabilities. As the industry seeks to fulfil MER and transition into the late-life phase of the North Sea basin, it knows that it can ill-afford to lose its workforce to other sectors or find that the youth talent pool has dried up. Detailed analysis of the reasons behind this shortage have identified a range of factors, including better career prospects elsewhere and the impact of a reduction in graduate recruitment schemes during the 2008 world financial downturn. Additionally, a perception of instability due to fluctuations in global oil and gas prices and associations with environmental damage/climate change have diminished the appeal of the industry, particularly for those just starting their

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professional life. The latest Global Energy Talent Index (“GETI”) Report this year indicated that of the respondents who were employed in oil & gas, 73% would consider switching to an entirely new employment sector, with the most popular motivation behind this being cited as better career progression. However, with an estimated £15 billion expected to be incurred in the decommissioning of the North Sea, it is clear that long-term career opportunities remain plentiful. Some encouragement can be generated from the fact that 81% of the respondents aged 18-24 in last year’s GETI Report said that if they were starting their careers afresh, they would pursue a career in the industry.

the traditional office-based employee mould. Indeed, last year’s GETI Report indicated that approximately 30% of respondents believed that a more flexible working culture could attract more talent to the industry. Flexible working has provided an opportunity for many (including this author) to continue to pursue careers in oil & gas from decentralised locations. Notwithstanding the direct benefit of staff retention, the spread of the workforce across different population centres provides opportunities for their employers to expand into new markets, diversify their business streams and reach out to potential new employees who otherwise did not view a career in oil & gas as realistically in keeping with the needs of their personal lives. The embracing of remote working on a permanent basis can also reduce business costs (not least office space), reduce wasted time (commuting) and mitigate risk associated with travel. As the industry battles to reduce its carbon footprint, driving ways to positively affect the industry’s environmental impact, including emissions reduction in any form, is a chance to show development and transition at a time when the industry needs it most, in order to attract and retain the next generation of talent.

What can be done? Fit the Business Around the People, not the People Around the Business The ability to adapt to shifting working patterns will be a key criterion in the attempt to recruit and retain individuals who do not fit

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Adam Brooks, Brodies LLP

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www.ogvenergy.co.uk I March 2020