OGV Energy - Issue 48 - September 2021 - International Growth & Diversification by OGV Energy

SEPAUGUST 2021 - ISSUE 2020 48

UK’s No. ENERGY SECTOR

PUBLICATION

INTERNATIONAL GROWTH AND DIVERSIFICATION FEATURING

Craig International - EIC - SDI Arnlea Systems - Proserv - Scotsbridge Whittaker Engineering - QHSE Aberdeen OGA - Johnston Carmichael

GLOBAL ENERGY NEWS WORLD PROJECTS MAP MONTHLY THEME GREEN ENERGY INNOVATION & TECH CONTRACT AWARDS

GROWTH THROUGH DECOMMISSIONING ON THE MOVE AN INTERNATIONAL MINDSET STATS AND ANALYTICS LEGAL & FINANCE

OIL-PRICE P.16

Saudi Aramco’s net income jumped by 288% year over year to US$25.5 billion for the second quarter

EVENTS

INTERNATIONAL GROWTH P.20

Many companies in the industry seek to strengthen their core businesses while diversifying into low-carbon energy sectors

RENEWABLES P.36

To realise ambitious net-zero targets, all renewable energy sectors must be allowed to flourish Scan with OGV APP

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CONTENTS

COVER PARTNER 04 - Craig International: An international mindset Growth and expansion on three continents

GLOBAL ENERGY NEWS 14

9 - UK North Sea 12 - Europe 14 - US 16 - Middle East

WORLD PROJECTS MAP

18 - EIC - World's latest project updates

INTERNATIONAL GROWTH AND DIV. ZONE 20 - The energy sector seeks international growth and diversification 22 - Whittaker Engineering continues growth in Mexico 23 - EIC: Diversification tops charts as key growth strategy 24 - Arnlea Systems: Intrinsix software leads the way to international growth

25 - Namaka Subsea: International growth strategy 27 - QHSE: helping your business achieve global growth 28 - SDI: Repositioning for growth 29 - Re-Gen Robotics gears up to enter the European market

INNOVATION & TECH ZONE 30 - Onboard Tracker™: ensuring the safety of tens of thousands of highly-skilled people around the world

SUBSEA INSIGHTS 32

32 - Proserv: Reliable subsea controls: key to supporting performance and profits

EVERY MONTH 34 - Renewables 36 - Contract Awards 40 - On the Move 42 - Decommissioning 44 - Stats and Analytics 46 - Legal and Finance 48 - Events 50 - People in Energy: Mark Skinner, MD at Scotsbridge 51 - Community Partner: Aberdeen FC

KENNY DOOLEY MAIN EDITOR Welcome to the September edition of OGV Energy Magazine, where this month we will be exploring International Growth and Diversification as our theme. With the UK starting to come out of lockdown, we have been delighted to see Energy supply chain businesses starting to open up again and employees starting to return to work, even if this is on a rotation system. OGV Energy are very excited to be attending our first face to face event this month at Decom Live and can’t wait to meet all of the OGV Community members that will be taking part and there will be a full report on the event next month! We are now focussing on ADIPEC in November and will announce all of the participants for our business breakfast at the Aloft hotel on Monday 15th very soon! There are still a few places left if you would like to exhibit with us on our pavilion so please email: office@ogvenergy.co.uk

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The rest of this month’s magazine as always provides you with a review of the Energy sector in the North Sea, Europe, the Middle East, the US and Australasia along with industry analysis and project updates from Westwood Global Energy Group, the EIC and Renewables UK.

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This month we are delighted to welcome Craig International as our front cover partner for our ‘International Growth and Diversification’ theme and you can hear from Steve Gibson, Bruce Cormie and Steven Craig inside as they discuss how the organisation has spread its global footprint. We also have insights from Proserv, Whittaker Engineering, OGA, Johnston Carmichael, Brodies and QHSE Aberdeen.

Finally, don't miss the networking opportunity with our online panel session on Thursday September 23rd at 2pm, where David Rennie from Scottish development International will be chairing on online panel discussion on the International Growth and Diversification theme along with speakers from the EIC, Proserv, RCP, Whittaker Engineering and more. @OGVENERGY

VIEW THE OGV MAGAZINE ONLINE AT www.ogv.energy/magazine

COVER PARTNER

AN INTERNATIONAL MINDSET

Steve Gibson – Middle East

Growth and expansion on three continents Bruce Cormie – US

Steven Craig – Africa

Leading procurement specialists Craig International continue to thrive and expand, despite a challenging global market. We take a look at recent developments at three key locations. Craig International pioneered the concept of outsourced procurement for the oil and gas industry and have led the way in digital procurement for a number of years. Founded as part of a family business in Aberdeen, the company has prospered by providing exceptional service through innovative cloud-based technology, growing organically on a foundation of local expertise and global reach. Today, CI acts as procurement partner for many of the world’s leading energy companies. Wherever in the world the business operates, Craig International aims to recruit, train and retain the best local talent. The result is detailed local knowledge, which combines with exceptional global buying power to deliver significant efficiencies for clients through digital solutions. The approach also benefits local communities, and contributes to a workforce of all cultures, languages and creeds. Three key centres – in the Middle East, Africa and the Americas – have seen significant and rapid growth over the last couple of years, despite challenges including the global COVID-19 pandemic. MIDDLE EAST CI established offices in Dubai and Qatar in 2015, at a time when outsourced professional procurement was a fairly new idea for the Middle Eastern market. By gaining the trust of leading operators – plus a good deal of positive word-of-mouth – the team has now won the local purchasing community round to the concept. In the six years since setting up in the Middle East, CI have won more than ten significant and essentially open-ended contracts with NOCs and service companies in Qatar, Dubai and Oman. They’re also actively supporting customers in neighbouring countries including Iraq, Kuwait and Saudi Arabia. www.ogv.energy I September 2021

NORTH AMERICA By contrast, CI’s presence in the US has seen a more gradual, organic build. A Houston, TX office opened back in 2005 to serve one single major operator active in Angola, and initial turnover was a relatively modest $4m. Expansion really began in 2013, with a move to new premises, and a second North American office opening in Calgary the following year. By 2020, annual turnover had increased to $70 million, with a staff of 21 across the US and Canadian offices. A great strength for Craig International in the North American market is the ability to support clients during periods of rapid change, particularly where personnel numbers are reduced. CI can fill the gap, taking over the complete vendor management function on the behalf of a client organisation using digital capabilities that provide really value. AFRICA CI’s African operations are based in Cape Town, where the local office is headed up by Steven Craig, the fourth generation of his family to sit on the CI board. The African story is one of opportunity and diversification, with ongoing contracts across the continent, and growth through support for green energy projects, including major solar and wind farm facilities. Ongoing exploration in southern Africa promises more opportunity to come, while CI is collaborating with Scottish companies developing renewables in the region. In South Africa, CI is recruiting young people from disadvantaged backgrounds and giving them the opportunity to shine. This commitment has been recognised by the SA Government, who recently recertified the company at Level One (the highest level) in the BBBEE integration programme.

DIGITAL PROCUREMENT CI have led the way in digital procurement for over ten years offering measurable efficiencies in supply chain management. The eBuy purchasing platform, for example, gives customers instant global access to a managed procurement system on or offshore. The system enables a seamless end-to-end purchasing journey enabling customers to expedite orders through to delivery and even sell surplus stock, realising capital tied up in unwanted equipment or supplies, while cutting down on waste. Smartbuyer, provides access to a dedicated procurement team, 24/7. It’s one way in which CI can offer an extension to a client’s own internal department, while offering exceptional expertise and economies of scale. THE GLOBAL MINDSET While our digital innovation puts the power of advanced procurement into the cloud for use around the world, CI insist there’s no substitute for old-fashioned, fully-grounded local knowledge. That’s why offices like those in the Middle East, Africa and North America will continue to thrive, providing essential hands-on support to local industries. CI attribute their regional success largely to hiring and training the right people, as well as understanding and respecting the culture and expectations of local supply chains and stakeholders. Combined with the company’s technological and systems efficiencies, that amounts to a genuinely international mindset that is hard to beat. For any further information on Craig International’s services or to find out how they could help your procurement activities visit www.criag-international.com.

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Nucore Group continues expansion plans with new Dundee office Nucore Group, a specialist engineering company which provides safety products and services for hazardous environments, has opened new offices in Dundee to support its ongoing company growth and diversification. The Dundee facility, which will create up to a dozen new jobs, is an important next step for the Aberdeen-headquartered company which operates across a number of sectors including renewables, marine, oil & gas, petrochemical and the public and private sectors. Combining the knowledge, expertise and best practice of both OTEAC and HVAC & Refrigeration Engineering, Nucore Group provides safety critical products, services and support from design, manufacture and maintenance to installation and commissioning.

Unique collaboration creates solution to cut inventory management costs Add Energy, a leading international consultancy, service, and software provider has announced a significant collaboration to lead the way in digital transition and full cycle efficiency for inventory and spare part management. Add Energy’s Asset and Integrity Management division has joined forces with Craig International and AH Asset Solutions to create an end-to-end, efficiency-driven inventory, procurement and logistics optimisation solution which provides significant time and financial benefits.

Legasea awarded Subsea Services contract with Harbour Energy Legasea has been awarded a contract, for Subsea Services and Associated Goods, in support of Harbour Energy’s operations in the UKCS. The contract will run for an initial five years, and the award covers a range of electrical, mechanical and hydraulic engineering services, as well as consultation in relation to decommissioning and the circular economy.

www.ogv.energy I September 2021

Key promotion marks 10 year anniversary for ICR CR Integrity has announced the promotion of Alan McQuade to Group Managing Director. Alan joined the company in 2018 as Chief Financial Officer and has played a pivotal role in developing the company’s strategy for the global energy market laterally as Chief Financial & Strategy Officer. His promotion coincides with Chief Executive, Willie Rennie, moving into a consultancy role as he steps down from his position to pursue other interests. Willie commented: “Although stepping away from my role at ICR, I remain completely invested in the business and team who I have worked with over many years.

Marine technology company Seall expands with key global partner, Mackay Marine Seall, has secured a partnership with global marine electronics and service provider, Mackay Marine, to distribute Seall’s suite of innovative software solutions and products to the maritime industry, as they expand their worldwide footprint. Mackay Marine, headquartered in North Carolina, USA, has 50 locations in 16 countries, making it Seall’s largest distribution partnership agreement to-date.

From its base at Prospect 11, Gemini Crescent, in Dundee’s Technology Park it will deliver a range of services including Heating, Ventilation & Air Conditioning, Refrigeration, Fire, Safety & Security solutions. “Dundee is an increasingly important player in the energy industry, and we look forward to supporting companies across the region operating in sectors such as offshore wind, oil & gas and marine as well as businesses working in fast-growing sustainability sectors such as hydrogen,” said Mike Bryant, CEO Designate and Director, Nucore. Nucore Group recently completed a restructure and refinancing deal with Beechbrook Capital to bring in fresh investment to support an ambitious growth strategy which will see it move into new sectors and geographical markets. Nucore Group’s strategic growth will also see it invest in people, R&D, systems and its rental fleet.

Bringing energy to shore – Semco Maritime Ltd. Semco Maritime Ltd. want to play an important role in meeting the world’s growing energy demand in a safe and sustainable way. Based on our extensive experience and world-class engineering, we have developed ways to make sections of the substation into standard proven concepts – while meeting the needs and expectations of our clients. Specialising in all aspects of bringing energy to shore – including telecommunication systems, firefighting systems, manpower and transport solutions. Our in-house specialists cover all elements involved in connecting the offshore wind power plant to the onshore grid.

Rotech Subsea completes 2nd phase cable trenching contract at Taiwan OWF Subsea controlled flow excavation (CFE) and suspended jet trenching innovator, Rotech Subsea, has completed the second phase of major trenching scope of works at a state-owned offshore wind farm in Taiwan. Rotech Subsea returned to Taiwan waters in Q2/3, 2021 for a Tier 1 offshore energy construction giant for Phase 2 post-lay trenching works at the state OWF. Phase 1 works at the site had been successfully completed in Q2/3, 2020.

Join the OGV Community to share your news with our ever-growing energy sector audience Find out more at www.ogv.energy/register

INTERNATIONAL GROWTH & DIVERSIFICATION

Left to right: James Fleming, Beena Sharma, Enas Fleming, Jordan Ferguson.

Are you and your leaders truly equipped to thrive through the energy transition? "Advances in technology and infrastructure mean nothing if you don’t have the right people with the right transitional leadership skills to drive change in your business" By Beena Sharma, Director, The Power Within Training UK

We are experiencing what is arguably the fastest and most challenging energy transition in history - is your business really equipped to manage, adapt and thrive during this time of change? You may have the technology and infrastructure planning and implementation in place. But do your leaders, and your emerging leaders, have the skills they need to deliver for your business during this global transition? So many leaders in the sector are lacking in one essential skill that would transform their ability to take advantage of the opportunities that this period of change will bring. That skill is Motivational Intelligence (MQ) - the third level of intelligence along with Intelligence Quotient (IQ) and Emotional Intelligence (EQ). Put simply, Motivational Intelligence is a person’s ability to identify and manage negative thoughts and self-limiting beliefs in order to overcome obstacles and accomplish goals.

The observable influence of MQ can be seen in five key areas: accountability, adaptability, resilience, initiative, and courage. Simply put, people with higher MQ levels make fewer excuses, adapt quicker, handle adversity more effectively, take productive action and embrace change better - like the kind of global change currently being experienced in the oil & gas and energy sectors. The science behind Motivational Intelligence has won a Nobel Prize and been named as one of the top ten most promising scientific discoveries of the 20th century. To thrive, businesses need to be able to evolve and respond to external change. Our business is the only recognised consultant outside of North America with the ability to deliver registered training in Motivational Intelligence, and we have a team of directors who are experienced within the oil & gas and energy sectors. Our programme, Leading with Motivational Intelligence, is the world’s first accredited Executive Diploma specifically designed to help progressive-minded leaders adapt to today’s dynamic business environment. Focusing on the issues and challenges created by transition, disruption and turbulence, the course addresses topics ranging from leading/managing virtual teams to helping employees more readily orient to an ever-changing world. The programme is: • Delivered by experts in the field of leadership and Motivational Intelligence, and with experience of the oil & gas and energy sectors. • Fully accredited by the Scottish Qualifications Authority (SQA) • Available via fully-funded (for individuals) or part-funded (small businesses) arrangements through a range of industry bodies.

Our business arm The Power Within Training UK - based in Aberdeen - is already helping business leaders in the oil & gas and energy sectors embrace change. One Operations Manager from GE Oil & Gas, who took our Leading With Motivational Intelligence course, said: “I didn’t think I would be provided with so many lessons to better myself as a leader inside and outside of the workplace. Yet that is exactly what happened.” Maybe you’re an individual looking to boost your skills to get back into work or progress your career. Or maybe you’re a business looking to up-level your leadership team, and secure your succession planning by up-skilling your emerging leaders. Either way, we can help. We have a range of programmes - some bespoke to the specific nature of the energy transition - and the businesses we work with benefit hugely in terms of preparedness for the future, delivering dynamic change, equipping their management teams with vital leadership skills and most importantly, building their business success. Co-founder and Managing Director of The Power Within Training & Development Ltd, James Fleming said: “Over just a few decades, countries around the world are working to replace fossil fuels with zero-carbon energy from clean sources. This is something that we know businesses and their management teams will need extensive support in order to prepare and train leaders that are fit for the future………. and at The Power Within Training UK, we have the experience and expertise to successfully guide them through this journey.” Visit our website for client reviews and for more information on how we can help your business thrive through this transition www.thepowerwithintraining.com/mq-et/

The Power Within Training is laser-focused on helping you and your business become more accountable, more resilient, and better able to respond to tomorrow’s challenges - whatever they are. For more information visit: www.thepowerwithintraining.com

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ENERGY NEWS

SEPTEMBER 2021

UK NORTH SEA

Energy Review By Tsvetana Paraskova

Updates on field developments, licences, farmouts, and drilling contracts, as well as the state of the UK offshore industry and its workforce featured in the North Sea oil and gas sector this past month.

UK Government Ministers showed support for the offshore oil and gas industry and reiterated support for the North Sea Transition Deal, attending a formal opening of the leading representative body’s new office in Aberdeen on 9 August, OGUK said. “Through our landmark North Sea Transition Deal, we are backing the decarbonisation of the oil and gas industry, while supporting workers both here in Scotland and across the UK, as we work to build back greener and eliminate our contribution to climate change,” Energy and Climate Change Minister AnneMarie Trevelyan said. “The Northeast of Scotland has a reputation for excellence in the oil and gas industry, and as we move towards a greener future, the UK Government is supporting the area to become a global centre of excellence in the energy transition,” said UK Government Minister for Scotland David Duguid. “The Deal will safeguard and create highly-skilled jobs in the Northeast, boosting the economy while helping us realise our net zero ambitions,” Duguid noted. OGUK published in August its Workforce & Employment Insight Report 2021, which showed that almost 34,000 fewer direct and indirect jobs were supported by the oil and gas industry in 2020 than before the pandemic. “While it’s important not to shy away from this reality, it’s also worth noting that we are seeing some very tentative and small indications of recovery. These include the more promising figures announced by OGUK in June, showing that the number of personnel working offshore had returned to pre-March 2020 lockdown levels, as industry continues to focus efforts on keeping people well and safe, while recovering activity and investment levels,” OGUK chief executive Deirdre Michie said in the foreword to the report.

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ENERGY NEWS

“UK oil and gas companies are global pioneers of low carbon technologies, and through the work of the North Sea Transition Deal and the implementation of the new Energy Services Agreement, we are creating a landscape where people will be able to work right across the UK’s diverse energy mix – from oil and gas to hydrogen, CCUS, wind and tidal,” Michie said.

James McAreavey, Concept Development Manager at Xodus, said in a statement. United Oil & Gas signed at the end of July a nonbinding agreement to sell two licences in the UK Central North Sea to Quattro Energy Limited for a headline consideration of up to £3.2 million. The divestment of these licences will see United Oil & Gas exit activities in the North Sea region. The company said it would use the proceeds from the transaction to grow its low-cost production business in Egypt and the Greater Mediterranean area, complemented with selected high-impact exploration opportunities in the Caribbean and Latin America.

OGUK now estimates that the activity from the industry supported 117,400 direct and indirect jobs in 2020, representing a decline of 34,700 compared with 2019. Overall, including induced employment – jobs supported by the expenditure of income from the oil and gas sector such as accommodation and services – of 61,100, the industry is estimated to have supported 178,500 jobs in 2020.

Gas company IOG plc announced on 3 August the spudding of the Blythe development well. Following Elgood, Blythe is the second development well in IOG’s Phase 1 project and is expected to take under three months to drill and complete, after which the rig will move on to Southwark.

OGUK also published a first-of-its-kind report, The Impact of Digitalisation on Data Professionals, produced by Robert Gordon University, which highlights the growing range of skills required to work successfully in data in the oil and gas industry, and the challenge of finding all these skills in one individual. The study found that the roles of data professionals are complex and unclear. Many professionals perform a mix of many different roles in their daily lives, requiring an everincreasing range of skills, and increasingly challenging expectations of delivery. In addition, the report highlighted the fact that increasing data fluency and data dependency within organisations is challenging established organisation and leadership models. “To date, our industry has depended on data professionals to be jacks of all trades – as the complexity of our digital environment continues to grow, this model appears increasingly difficult to sustain,” the authors of the repot wrote. A key recommendation in the report is a general move away from treating digitalisation as a homogenous activity that can be passively layered over existing staff and staff structures. The Oil and Gas Authority (OGA) launched two investigations in the middle of August. OGA opened an investigation into a possible breach of field Production Consents, and another investigation into a possible breach of a flare consent, contrary to the requirements of the licences.

In company news Xodus said it was assessing the infrastructure and modifications required to enable electrification of Harbour Energy’s Central North Sea assets. The assessment follows the successful delivery of a power optimisation study examining the opportunities available to rationalise the generation systems on the Everest and Lomond assets. “This study has the potential to provide essential input to the wider oil and gas community within the North Sea to enable a significant reduction of carbon emissions from offshore operations,”

“We have a very clear collective focus on ensuring safe and efficient performance leading successfully to First Gas in Q4 2021 from the Blythe Hub before continuing into 2022 at Southwark,” IOG’s chief executive Andrew Hockey said.

Deirdre Michie, OGUK Chief Executive

“UK oil and gas companies are global pioneers of low carbon technologies"

IOG has committed to Scope 1 and Scope 2 NetZero status as of 2021, the company said on 4 August, after completing an emissions assessment in collaboration with Genesis. IOG expects to have one of the lowest emissions profiles in the industry throughout this decade. Over their economic life, the projected cumulative average intensity of the Phase 1 Blythe and Southwark platforms is just 0.4 kg CO2e/boe. IOG’s estimated Phase 1 lifetime Scope 1 and 2 average emissions intensity is estimated at 3.97 kg CO2e/boe, compared to the North Sea average of 20.2 kg CO2e/boe. “We know how important it is to all our stakeholders that IOG’s contribution to UK gas supply is consistent with a successful UK energy transition and the Paris Accord objectives. That is why we have committed to Scope 1 and 2 Net-Zero, not as a future pledge but starting right now in 2021,” CEO Hockey said. Summit Exploration and Production Limited announced the farmout of UK Central North Sea Licence P.2382 (Block 22/14c) to Dana Petroleum E&P. OGA has already approved the deal, where Dana will acquire a 50% working interest in the license and Summit will retain 50% along with operatorship. The new joint venture will now be working towards making a decision to drill the K2 prospect as soon as practicable, Summit said. i3 Energy plc said on 16 August that discussions continue with potential farm-in partners for the Serenity field appraisal drilling programme. Deltic Energy Plc has entered into a binding, conditional farm-out agreement for five of its gas licences in the Southern North Sea with Cairn Energy. The buyer Cairn Energy will acquire a 60% interest in each of Licences P2428 (Cupertino Area) and P2567 (Cadence) and a 70% interest in each of Licences P2560, P2561, and P2562 which are located between the Breagh and Tolmount Gas Fields. Following completion, Cairn will become operator of all five licences. Tekmar Group, a provider of technology and services for the global offshore energy markets,

UK NORTH SEA REVIEW sponsored by www.ogv.energy I September 2021

UK North Sea

BRENT OIL PRICES OVER THE YEARS September review

YEAR AGO

- BRENT OIL PRICE 2020 - $40.91 Trump’s trip to west Texas included a visit to rig of world oil editorial advisor. Latshaw Drilling and Double Eagle Energy hosted a rig site event, where President Trump reiterated that oil and gas E&P is a centre piece of his energy and economic policy.

and DeepWater Buoyancy, a producer of subsea buoyancy products for offshore oil & gas, energy, oceanographic, and technology companies, formed a partnership to enhance their offshore energy project capability. The partnership is focused on the new and emerging floating offshore wind market. Baron Oil Plc raised its interest in UK Offshore Licence P2478 in the prospective Dunrobin area from 15% to 32%, conditional on approval from the OGA. Baron Oil evaluates Dunrobin as one of the few remaining targets yet to be drilled in the UK North Sea. “This Agreement, in keeping with our corporate strategy, more than doubles Baron’s interest in the prospective Dunrobin area at a modest cost, whilst at the same time accelerating the subsurface evaluation towards a decision regarding the potential drilling of an exploration well evaluated to have a sizeable resource target. The 3D seismic reprocessing is aimed at reducing the range of volumetric uncertainty and subsurface risk, as well as providing drilling location candidates, during 2022,” said Jon Ford, Technical Director of Baron. Scotland-based Legasea was awarded a contract for Subsea Services and Associated Goods in support of Harbour Energy’s

Morten Kelstrup, COO of Maersk Drilling

operations in the UKCS. The contract, which will run for an initial five years, covers a range of electrical, mechanical, and hydraulic engineering services, as well as consultation in relation to decommissioning and the circular economy. Harbour Energy also awarded a contract to Maersk Drilling for the jack-up rig Mærsk Innovator to drill three subsea development wells in Block 28/9 on the UK Continental Shelf. The contract is expected to commence in December 2021. Mærsk Innovator is currently warm-stacked in Grenaa, Denmark, after ending its previous contract in the UK in May 2020. “We’re excited to secure this contract with Harbour Energy which will see Maersk Innovator go back to work in the UK,” said COO Morten Kelstrup of Maersk Drilling.

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Identifying economically viable wells for a recovering brent crude price. As E&P operators recover from Covid-19, digital transformation has brought new levels of well analysis not possible before. The latest in subsurface data visualisation brings disparate data sets together—from oil price to well characteristics—to give operators ultimate confidence in their recovery plans.

YEARS AGO

- BRENT OIL PRICE 2016 - $46.57 The oil producers cartel Opec has agreed a preliminary deal to cut production for the first time in eight years, sending crude prices surging. Brent crude, the international benchmark for oil, rose almost 6% to nearly $49 a barrel on the news. While oil saw only small gains in early Asian trade, energy firms across the region soared. Production from UK oil and gas fields in 2016 increased for the first time in 15 years, but investment in exploration hit a record low as companies cut spending in response to low energy prices. The 10.4% rise in output compared with the previous year was the result of a spate of new North Sea developments and technological innovations to maximise extraction from existing fields.

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YEARS AGO

- BRENT OIL PRICE 2011 - $112.83

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Cyprus says it has begun exploratory drilling for oil and gas in the eastern Mediterranean Sea risking escalating tensions with Turkey. Turkish PM Recep Tayyip Erdogan said Turkey would "very soon" start drilling for gas off the Cyprus coast. He added the Turkish military would monitor the eastern Mediterranean with aircraft, frigates and torpedo boats. The Cypriot government is recognised internationally but not by Ankara. The European Commission had urged both sides to exercise restraint over the issue and seek ways of resolving their longstanding dispute over northern Cyprus.

ENERGY TRANSITION

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ROBOTICS & AI

ENERGY NEWS

New oil and gas projects offshore Norway amid high activity on the Norwegian shelf this year, as well as plans and forecasts for emission reductions in the UK, were the highlights of Europe’s energy markets in the past few weeks.

By Tsvetana Paraskova

Europe

Energy Review

Oil & Gas Despite COVID-related challenges, activity in offshore Norway was high during the first half of 2021, the Norwegian Petroleum Directorate said in July. Oil and gas production has stayed high, eight discoveries were made, and many new development projects are on the drawing board, the directorate said. Exploration activity is set to remain high for the rest of the year, with around 40 exploration wells expected to be drilled in 2021, compared to 31 exploration wells spudded in 2020, the NPD said. “Exploration has enormous significance for longterm value creation on the shelf. The addition of oil and gas resources from new discoveries, like we have seen so far this year, is necessary to prevent a sharp decline in petroleum industry activity after 2030. Without new discoveries,

www.ogv.energy I September 2021

production could fall by more than 70% in 2040 compared with 2020”, said Torgeir Stordal, director of Technology and coexistence at the Norwegian Petroleum Directorate. The directorate approved at the end of July the start-up of the Duva field in the North Sea, where the operator Neptune Energy estimates the reserves at about 71 million barrels of oil equivalent. The Duva oil and gas field, discovered in 2016, is ready for start-up with a subsea installation comprising four wells, three oil and one gas producing well. The field is located 14 kilometres northeast of the Gjøa field and the subsea template is tied into existing subsea infrastructure on Gjøa. On 23 August Neptune Energy and its partners announced the safe and successful start-up of production from the Duva development. Equinor and its partners installed a pump on the seabed to give the Vigdis oil field in the

North Sea a boost that increases production by around 16 million barrels. The Vigdis subsea field has produced oil via the Snorre field for 24 years. When the field came on stream in 1997, it was expected to produce 200 million barrels. So far, it has produced twice as much, and new estimates suggest the recoverable resources are 475 million barrels. The Norwegian authorities granted in August Repsol consent for a new start-up of the Yme field in the North Sea, which was shut down in 2001, when continued operation was not considered to be profitable. Yme is one of the first oil fields on the Norwegian shelf to be redeveloped. Lundin Energy announced in August first oil from the Extended Well Test (EWT) at its operated Rolvsnes field, the first subsea tie back development for the Edvard Grieg platform. The resource estimate for the Rolvsnes field is between 14 and 78 million barrels of oil equivalent gross.

Europe Low-Carbon Energy & Net-Zero Ambitions

Ports need a new partnership approach to be ready to support projects coming out of the current ScotWind leasing round, according to the report.

After the alarming report by the Intergovernmental Panel on Climate Change (IPCC) that the world is warming faster than expected, the UK called for greater ambition and urgent global action to tackle the effects of climate change.

“Scotland will be one of the first countries in the world looking to deliver floating offshore wind at scale. If Scottish companies are involved in this first generation of floating offshore wind projects, then they will be in a position to sell this expertise around the world,” said the independent report lead, Professor Sir Jim McDonald.

“We can do this together, by coming forward with ambitious 2030 emission reduction targets and long-term strategies with a pathway to net-zero by the middle of the century, and taking action now to end coal power, accelerate the roll out of electric vehicles, tackle deforestation and reduce methane emissions,” COP President Alok Sharma said. The UK government launched in early August a new £5-million research programme to help the UK adapt and become more resilient to the impacts of climate change. The research will inform the UK’s strategy to prepare for and protect against the impacts of climate change, such as heatwaves, flooding, and extreme storms. The government also published the UK’s first-ever Hydrogen Strategy, which aims to kick start a world-leading hydrogen economy expected to support over 9,000 UK jobs and unlock £4 billion investment by 2030. A government analysis suggests that 20-35% of the UK’s energy consumption by 2050 could be hydrogen-based. This new energy source could be critical to meet the UK’s targets of net-zero emissions by 2050 and cutting emissions by 78% by 2035 – a view shared by the UK’s independent Climate Change Committee. “With the potential to provide a third of the UK’s energy in the future, our strategy positions the UK as first in the global race to ramp up hydrogen technology and seize the thousands of jobs and private investment that come with it,” Business & Energy Secretary Kwasi Kwarteng said. In Scotland, the government announced on 23 August the launch of the Green Jobs Workforce Academy, delivered by Skills Development Scotland. The Academy is aimed at helping people take a greener approach to their careers, from accessing training and learning new skills, to finding a new green job. “The Green Jobs Workforce Academy will make it easier for people from a broad range of backgrounds to consider how their skills and experience can be built upon to launch a green career,” said Frank Mitchell, Chair of Skills Development Scotland. A cluster of ports suitable for floating offshore wind fabrication and development could deliver as much as £1.5 billion in economic benefit to Scotland, according to the independent Strategic Investment Assessment (SIA) report commissioned by the industry-government group Scottish Offshore Wind Energy Council. This initial investment could help underpin longer-term growth in port space, and further investment in port capacity could grow to £4.5 billion, the report found.

“The Firth of Forth area is Scotland’s major industrial cluster. The area is responsible for more than 10% of Scotland’s emissions but is critical to the Scottish economy,” said Malcolm Forbes-Cable, vice president, consulting, at WoodMac.

Scotland could advance its netzero ambitions by establishing a net-zero hub on the Firth of Forth, according to Wood Mackenzie research from mid-August.

“Establishing a net-zero hub on the Firth of Forth would complement the development of Scotland’s Net-Zero Roadmap, and become a key element of national efforts to deliver net-zero,” Forbes-Cable added. The UK government said at end-July that all five carbon capture, storage and utilisation (CCSU) clusters submitted for eligibility were approved. These are DelpHYnus, East Coast Cluster, Hynet, Scottish Cluster, and V Net-Zero. Investment of more than £260 million from the UK government and the private sector will help develop next-generation wind turbines in the Humber region. Offshore wind manufacturers Siemens Gamesa and GRI Renewable Industries will receive grant funding from the government’s £160 million Offshore Wind Manufacturing Investment Support scheme to further develop manufacturing facilities in the Humber region. “These two key announcements are a massive boost for the Humber region and provide further proof that the UK’s cutting-edge offshore wind supply chain is scaling up at a terrific pace, creating job opportunities in coastal communities which need levelling up,” RenewableUK’s Chief Executive Dan McGrail said.

Dan McGrail, CEO of RenwableUK

Ireland published in mid-August its Maritime Area Planning Bill 2021, which will help offshore wind development. “Our offshore wind resources represent a real opportunity for us to break free from fossil fuels and reach our ambitious climate goals,” said Minister for the Environment, Climate, Communications and Transport, Eamon Ryan.

Company deals in low-carbon energy Seven major UK companies – bp, BT, Direct Line Group, Royal Mail, ScottishPower, Severn Trent, and Tesco – pledged to work together to help accelerate the mass adoption of electric vehicles (EVs) across the UK. bp also bolstered its hydrogen plans in the UK by signing preliminary deals with a series of new potential customers for its proposed clean hydrogen production facility in Teesside in northeast England. Project partners Equinor, RWE, Shell, and Gasunie agreed to boost collaboration on the AquaSector project - the vision of the first large-scale German offshore hydrogen park. A study will investigate the potential for the first large-scale offshore hydrogen park in the German North Sea, Equinor said. Energy firm St1 Nordic Oy and Norwegian clean energy company Horisont Energi AS will jointly develop a green ammonia project in Finnmark, northern Norway. The partnership will aim to produce green ammonia for a wide variety of renewable energy products for transport and industry. INEOS Energy, Wintershall Dea, and a consortium of 29 companies, research institutes, and universities, signed on 17 August an agreement to support the next phase of the Greensand pilot project in Denmark to demonstrate the safe and permanent storage of CO2. The Greensand consortium will now file a grant application with the Energy Technology Development and Demonstration Program in Denmark. If the application is successful, the consortium targets the start of work by end 2021, with the offshore injection pilot taking place in late 2022.

ENERGY NEWS

By Tsvetana Paraskova

ENERGY REVIEW

Over the past month, the US Administration called on the OPEC+ alliance to ramp up production to ease the upward pressure on petrol prices, while US production rose to its highest level in 15 months. Employment in the US oilfield services sector increased for yet another month amid slow but steady recovery in activity, the consolidation wave in the US shale patch continued, while the industry continues to fight the Administration’s federal lease moratorium. .

US administration urges OPEC+ to boost production The US Administration said on 11 August that the price of crude oil this summer had been higher than the prices seen in December 2019, before the start of the pandemic.

The energy technology and services sector in all of the US added an estimated 6,082 jobs in July

“Although we are not a party to OPEC, the United States will always speak to international partners regarding issues of significance that affect our national economic and security affairs, in public and private. We are engaging with relevant OPEC+ members on the importance of competitive markets in setting prices. Competitive energy markets will ensure reliable and stable energy supplies, and OPEC+ must do more to support the recovery,” the national security advisor noted.

Administration will just stay out of the way. Allow American workers—not OPEC—produce the oil that can reduce the price of gasoline. Don’t make us dependent on foreign sources of energy,” said Texas Governor Greg Abbott. Energy Workforce & Technology Council CEO Leslie Beyer said:

Despite the OPEC+ group’s agreement to ramp up production, the pace of the increases will not fully offset the cuts until well into next year, according to the US.

OPEC+ didn’t reply to the US call for higherthan-planned production increases, while the US industry’s response was one of criticism aimed at President Joe Biden’s Administration for wanting more foreign oil on the market while stifling domestic output with a federal leasing moratorium.

“The White House’s encouragement of OPEC to boost oil production runs counter to the Administration’s stated environmental and economic goals, and would only serve to damage the US economy, our energy security and overall efforts toward a lower-carbon future. Since taking office, the Biden Administration has aggressively sought to curtail domestic production, which occurs safely and efficiently under the world’s most stringent environmental framework.”

“At a critical moment in the global recovery, this is simply not enough,” Sullivan said.

“Dear White House: Texas can do this. Our producers can easily produce that oil if your

“Rather than banning oil and gas development on federal lands and targeting oil and gas

“Higher gasoline costs, if left unchecked, risk harming the ongoing global recovery,” US National Security Advisor Jake Sullivan said in a statement issued by the White House.

www.ogv.energy I September 2021

US companies with punitive taxes and fees, the Biden Administration should partner with industry by investing in innovative technologies already in development and spanning energy systems,” Beyer added.

while direct upstream employment in Texas – operating and producing jobs, oilfield service jobs, and drilling company jobs – climbed back above 160,000 in June. That suggests the addition of about 14,200 of the nearly 81,500 jobs lost over the course of the entire contraction, the Texas Petro Index showed.

Restrictive domestic policies regarding oil production have compounded the challenges for the US oil and gas industry after the pandemic, Dean Foreman, chief economist at the American Petroleum Institute (API), said.

Data from the Texas Workforce Commission suggests that Texas upstream oil and natural gas employment expanded by 3,100 jobs in June – the fifth best single-month performance in over five years, the Texas Oil & Gas Association (TXOGA) said at the end of July.

“Pleading with OPEC to come to the rescue this summer doesn’t make sense, not even to OPEC. It’s an import-more-oil strategy that could seriously harm U.S. energy security and push American jobs overseas,” Foreman wrote.

The energy technology and services sector in all of the US added an estimated 6,082 jobs in July, a fifth straight month of growth, an analysis by the Energy Workforce & Technology Council based preliminary data from the Bureau of Labor Statistics (BLS) showed in August. Gains over the past five months bring the sector to a net increase of an estimated 38,255 jobs so far this year, the Council said.

At the same time, the API and 11 other energy industry trade groups filed a lawsuit in mid-August in the U.S. District Court for the Western District of Louisiana challenging the U.S. Department of the Interior’s indefinite pause on oil and natural gas leasing on federal lands and waters. “As our industry takes action to preserve our legal rights, we will continue working with the Biden administration on policies that support a lower-carbon future while providing access to the affordable, reliable energy our economy needs to recover,” API Senior Vice President and Chief Legal Officer Paul Afonso said.

US industry: slow but steady recovery Meanwhile, for several months, the US shale oil operators have been depleting their inventory of drilled but uncompleted wells (DUCs). Drilling is slower than fracking, so the number of ‘live’ DUCs in the shale patch slumped to 2,381 wells in June 2021, the lowest level since 2013, Rystad Energy said in an analysis in early August. “Looking at the number of remaining ‘live’ DUCs, a significant oil supply response from the US onshore industry to the $70-$75 per barrel WTI market is practically impossible before the first half of 2022. Any further increases in fracking, and subsequently well completions, will now require producers to first expand drilling by adding more rigs,” said Artem Abramov, head of shale research at Rystad Energy. In Texas, the biggest oil-producing state in the US, mid-year indicators show a slow but steady recovery from last year’s pandemicdriven slump, according to the Texas Petro Index Midyear Update. Upstream oil and gas indicators in Texas showed through June 2021 that the slow but steady recovery was already underway. The Texas Alliance of Energy Producers Texas Petro Index (TPI) has now increased for three straight months, and four of the last five months, signaling a new cycle of expansion in statewide exploration and production activity. The statewide rig count improved to 219 in June compared to 105 on average in May 2020. Estimated crude oil production in Texas averaged 4.82 million barrels per day in June,

Meanwhile, US weekly crude oil production reached 11.4 million bpd in the week to 13 August, data from the Energy Information Administration showed on 18 August. This was the highest US crude output level in 15 months.

“Dear White House: Texas can do this. Our producers can easily produce that oil if your Administration will just stay out of the way. Allow American workers—not OPEC—produce the oil that can reduce the price of gasoline. Don’t make us dependent on foreign sources of energy,” said Texas Governor Greg Abbott.

Consolidation in US oil & gas sector continues Higher oil and gas prices and increased activity have also supported the consolidation in the US shale patch. For example, Chesapeake Energy – one of the most prominent names to file for bankruptcy in 2020 – emerged from restructuring with a new management and announced in August a large acquisition in the Haynesville shale gas basin. The reinvented shale gas pioneer Chesapeake Energy struck a deal to acquire Vine Energy in a zero premium transaction valued at around $2.2 billion. The acquisition will make Chesapeake Energy the top gas producer in Haynesville, with around 1.5 billion cubic feet per day of production. “By consolidating the Haynesville, Chesapeake has the scale and operating expertise to quickly become the dominant supplier of responsibly sourced gas to premium markets in the Gulf Coast and abroad,” said Mike Wichterich, Chesapeake’s Board Chairman and Interim CEO. The deal was announced two months after Southwestern Energy said it would buy Indigo Natural Resources for around $2.7 billion, suggesting that consolidation in the Haynesville basin has started. “Adding Vine brings Chesapeake full circle in the Haynesville. The company sold off a large portion of its ArkLaTex portfolio in multiple deals five years ago. But now with Vine, Chesapeake will return to being the largest Haynesville producer, at over 1.5 bcfd,” Wood Mackenzie analysts said, commenting on the deal, which makes Chesapeake one of the US shale firms with a ‘basin dominance’ growth strategy, alongside Pioneer and EQT.

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MIDDLE EAST

Energy Review By Tsvetana Paraskova

Saudi Arabia’s state-owned oil giant Aramco reported bumper profits for the second quarter, while a new Iranian president was sworn in amid a rise in tensions in the Middle East in the past month.

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Saudi Aramco’s net income jumped by 288% year over year to US$25.5 billion for the second quarter. Last year in Q2, the oil giant had booked US$6.6 billion in net income. For the first half of 2021, Saudi Aramco posted a net income of US$47.2 billion, a 103% surge compared to US$23.2 billion booked for the first half of 2020. The significantly higher profits in 2021 were primarily driven by higher crude oil prices, improved downstream margins, and the consolidation of SABIC’s results, partially offset by lower crude oil volumes sold and higher crude oil production royalties, Aramco said in a statement. Second-quarter net income was also the result of the recovery in global oil demand, supported by the easing of COVID-19 restrictions, vaccination campaigns, stimulus measures, and accelerating activity in key markets. The company declared US$18.8 billion dividend for the second quarter, keeping the annual US$75 billion dividend to shareholders, the largest of which with over 98% is the Kingdom of Saudi Arabia. “We continue to move forward on a number of strategic programs, which focus on sustainability and low-carbon fuels, maximising the value of our assets, and advancing our downstream integration and expansion journey. For all these reasons and more, I remain extremely positive about the second half of 2021 and beyond,” Aramco’s president and chief executive officer Amin Nasser said, commenting on the results.

Saudi Aramco, the world’s largest oil firm by production and market capitalisation, also joined the biggest solar power project in Saudi Arabia, while the state oil and gas firm of the United Arab Emirates (UAE), the Abu Dhabi National Oil Company (ADNOC), awarded engineering services contracts and signed deals to supply ammonia to Japanese customers.

Saudi Aramco also said that its crude oil increment programs at the Marjan and Berri oil fields are in the final stages of detailed engineering, and construction activities continue to progress. The two projects are expected to add oil production capacity of 300,000 barrels per day (bpd) and 250,000 bpd, respectively, by 2025.

Saudi Aramco’s Q2 profit soars as oil prices rally

The Saudi oil firm also dismissed in early August media reports that it would start Bitcoin mining.

Aramco reported surging profits and cash flows for the second quarter, much like all international oil majors which benefited from the significantly higher oil and gas prices this year compared to the pandemic-induced price collapse in the spring of 2020.

www.ogv.energy I September 2021

“With reference to recent reports claiming that the Company will embark on Bitcoin mining activities, Aramco confirms that these claims are completely false and inaccurate,” the Saudi oil giant said.

New Iranian president sworn In amid rising tension in Middle East Iran’s new President Ebrahim Raisi was sworn in on 5 August, days after a drone attack on the commercial vessel Mercer Street offshore Oman killed two crew members. The attack on the Israeli-linked Mercer Street tanker most likely came from Iran, according to statements from the governments of the UK, the US, and Israel. “UK assessments concluded that it is highly likely that Iran attacked the merchant vessel MV Mercer Street in international waters off Oman using unmanned aerial vehicles,” the UK Foreign Office said. “We believe this attack was deliberate, targeted, and a clear violation of international law by Iran,” Foreign Secretary Dominic Raab said, adding “Iran must end such attacks, and vessels must be allowed to navigate freely in accordance with international law.” “Upon review of the available information, we are confident that Iran conducted this attack, which killed two innocent people, using one-way explosive UAVs, a lethal capability it is increasingly employing throughout the region,” US Secretary of State Antony Blinken said in a statement. Days after the attack on Mercer Street, another tanker, Asphalt Princess, was a target of an attempted hijacking, an incident that ended with no casualties or injuries. The incidents with the tankers in critical shipping lanes in the Middle East raised the tensions between Israel and Iran, and the West and Iran, while the Iran nuclear talks continued to be on hold awaiting the transfer of power in the Islamic Republic. The stalled nuclear talks pushed the timeline of a potential return of Iranian oil to the global market to 2022 at the earliest.

Middle East to lead global gas capacity growth in medium term The Middle East is expected to lead growth in capacity in the global gas processing industry from planned and announced projects between 2021 and 2025, data and analytics company GlobalData said in a report. The Middle East is set to account for around 37% of the global gas processing capacity growth

Middle East by 2025. The region will have a new-build gas processing capacity of 21.0 billion cubic feet (bcfd) by 2025, including 19.4 bcfd from planned projects that have already received approvals, GlobalData forecasts. “In the Middle East, a total of 26 planned and announced gas processing plants are expected to start operations by 2025. Of these, the planned Ras Laffan-NFE plant in Qatar has the highest gas processing capacity of 4.6 bcfd. It would process gas from the giant North Field East project and helps Qatar to maintain its status as one of the leading producers and exporters of LNG in the world,” said Nachiket Kaware, Oil & Gas Analyst at GlobalData. Qatar and Iran will be among the leading offshore gas producers through 2025, GlobalData said in another report identifying Malaysia as the leader. Iran is set to have the second highest offshore gas production globally with 2.70 bcf of natural gas production in 2025 or about 11% of the total global natural gas production in the year. Qatar follows with natural gas production of 2.67 bcf from planned and announced offshore projects in 2025.

Oil, gas, renewables projects The Abu Dhabi National Oil Company (ADNOC) signed on 23 August a framework agreements for Concept and Front-End Engineering Design (FEED) services for major projects across its full value chain to support the delivery of its 2030 strategy. The framework agreements were signed with eight top-tier global engineering contractors and have a combined scope worth up to $1 billion (AED 3.67 billion). ADNOC signed the framework agreements with AMEC International Ltd (part of the Wood Group), Fluor, McDermott, Mott MacDonald, SNCLavalin International Arabia Limited – Abu Dhabi (part of the Kentech Group), Technip Energies, Worley, and a joint venture between Tecnicas Reunidas and NPCC. ADNOC also announced in August that, in partnership with Fertiglobe, it had sold its first cargo of blue ammonia to Itochu in Japan, for use in fertilizer production. The sale builds upon recently announced joint efforts to enhance industrial cooperation between the UAE and Japan and support the development of new UAEJapan blue ammonia supply chains.

The Middle East is expected to lead growth in capacity in the global gas processing industry

Saudi Aramco Power Company (SAPCO) joined a consortium led by ACWA Power and the Water & Electricity Holding Company (Badeel) developing the largest solar PV project in the Kingdom. The project, the 1,500 MW Sudair Solar plant, reached financial close in August. Total investment is estimated at 3.4 billion Saudi riyals (US$906 million / £660 million).

WORLD PROJECTS

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

The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally. It is renowned for excellence in the provision of services that unlock opportunities for its members, helping the supply chain to win business across the globe. The EIC provides one of the most comprehensive sources of energy projects and business intelligence in the energy sector today.

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AUSTRALIA - Chevron Greater Gorgon Gas Project Expansion – Jansz-Io Compression Project US$4bn

USA - Beacon Offshore Shenandoah Oil Field US$2.7bn

Chevron and partners have reached a final investment decision on the Jansz-Io compression (J-IC) project with work expected to take five years to complete. Two major contracts have been announced recently. Aker Solutions picking up the all-electric subsea gas compression system EPC, and Baker Hughes being awarded the EPC for the subsea compression manifold structure.

Hyundai Heavy Industries has been awarded the contract to undertake the design, procurement, construction, and delivery of a semi-submersible FPS and its installation for the project. HHI will spend the first year on engineering and the construction is expected to start during Q3 2022.

MALAYSIA - Petronas Kasawari Phase 2: Carbon Capture and Utilisation Project Est US$100mn

HONG KONG - CLP Group Offshore Wind Farm Hong Kong Southeastern Waters (CLP) US$500mn

AZERBAIJAN - SOCAR Bulla-Deniz Further Field Development US$200mn

CANADA - Shell Canada Ltd Polaris Carbon Capture and Storage US$746mn

Petronas has awarded a contract to Xodus, for the conceptual engineering design of the Kasawari carbon capture and storage (CCS) project. Xodus' experience with CCS includes designing and operating systems to capture, process, transport, inject and store CO2. The final investment decision for Kasawari phase two is likely to be in 2022. This CCS scheme will be the first in Malaysian waters.

CLP Power has appointed Ramboll as the owner’s technical engineer and advisor for the pre-development phase of its Hong Kong offshore wind farm.

SOCAR is planning to drill 17 new wells at the Bulla-Deniz field to increase production as part of full field development.

CLP Power has started the preliminary engineering studies, collection of environmental data and stakeholder communications for the project as part of the ongoing feasibility study.

According to the company's data, drilling of well No. 117 is currently under way at the field from offshore platform No. 6. In addition, SOCAR plans to drill an exploration well at the Bulla-Deniz field in 2022 to estimate the oil and gas potential of another layer.

Shell Canada ltd plans to build a new carbon capture and storage facility near Edmonton, Alberta. The project will be developed in phases, with the first phase aiming to capture and store up to 750,000 tons of carbon annually.

www.ogv.energy I September 2021

The emissions sources will be from Shell's Scotford refinery and chemical plant. Shell aims to make a final investment decision in 2023, with commercial operations scheduled for 2025.

WORLD PROJECTS

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8 4 10

NETHERLANDS - Wintershall Nordzee Q4-A Platform, Q4-B Platform, and P9 Subsea Installations Decommissioning Campaign Est US$100mn

Wintershall Noordzee has started a decommissioning campaign for its P9 and Q-4 assets in the Southern North Sea. The programme will be carried out in two stages, with the plug and abandonment of 24 wells during the first stage and the removal of two subsea installations at P9 and the removal of two platforms at the Q4 fields, during the second phase. These activities should start in spring of 2022, with the entire first campaign set to be completed by Q4 2022.

CHINA - CNOOC Lufeng 12-3 Oil Field US$700mn

CONGO (BRAZZAVILLE) - NewAge Marine III Block – Nene Extension Field Development US$500mn

TAIWAN - Swancor Renewable Offshore Wind Farm Formosa 4 and 5 US$2.6bn

CNOOC Energy Technology & Services (CenerTech) has contracted the Marine Design & Research Institute of China (Maric) to conduct detailed hull design for the FPSO to be deployed at the Lufeng 12-3 field.

NewAge has disclosed plans for its Marine III block.

Swancor has partnered with Tien Li Offshore Wind Technology, Yeong Guan Energy and J&V Energy Technology to establish a consortium dubbed Taiwan Team which will focus on the development of Formosa 4 and Formosa 5 projects. Formosa 4 will be developed first, followed by Formosa 5 which will utilise bottom-fixed and floating foundations, respectively.

The floater is scheduled for completion in July 2023.

The operator is planning to initially exploit an extension of Eni's Nene field via an FPSO and two wellhead platforms to exploit 200 MMboe of recoverable reserves. The extension has the potential to flow about 20,000 b/d and will likely be developed through 10 wells.

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INTERNATIONAL GROWTH & DIVERSIFICATION

By Tsvetana Paraskova

The Energy Sector Seeks International Growth and Diversification

Faced with uncertainty over future global oil and gas demand in the energy transition, many companies in the industry seek to strengthen their core businesses while diversifying into low-carbon energy sectors where their technological and operational competencies could shine.

and gas and the profits generated from it that will help fund the pledged growth in investment in renewables, transport electrification, hydrogen, and carbon capture technologies. The oil and gas supply chain, especially in the UK, is also looking to grow and diversify as it tries to navigate the challenges of the energy transition and the North Sea Transition Deal to slash emissions from one of the world’s most mature offshore basins.

Majors grow core assets and boost low-carbon energy investment

International oil and gas majors have started to invest more in low-carbon energy sources

The increased global focus on emissions reductions and technologies that could help the world achieve net-zero has prompted many energy firms to start thinking of allocating more capital to renewable energy and low-carbon energy solutions, expecting soaring demand for clean energy in the coming decades. In addition, the COVID-19 pandemic has highlighted, yet again, the volatile nature of the oil and gas prices and boom-andbust cycles, pushing more firms in the upstream and many in the supply chain to future-proof their revenues, profits, and operations with diversification into alternative energy sectors. Some of the world’s largest oil and gas firms – including bp, Shell, TotalEnergies, Equinor, Eni, and Repsol – have already pledged to become net-zero energy businesses by 2050. All those majors are set to invest growing shares of their capital budgets in low-carbon energy sources. They still prioritise core oil and gas projects and LNG and acknowledge that oil and gas will be needed for decades to come. But it will also be oil

www.ogv.energy I September 2021

International oil and gas majors have started to invest more in low-carbon energy sources, while developing their key profitable oil and gas assets. In recent weeks, bp and Shell, for example, have shown some of that diversification strategy of “performing while transforming,” as bp’s chief executive Bernard Looney says. bp started up in June the Manuel project in the US Gulf of Mexico, the fourth of five major projects it expects to delivered globally in 2021. Manuel includes a new subsea production system for two new wells tied into the Na Kika platform. The wells are expected to boost gross platform production by an estimated 20,100 barrels of oil equivalent a day (boe/d).

At the same time, bp teamed up with EnBW and submitted a bid in the ScotWind offshore wind lease. The consortium has applied for a lease area off the east coast of Scotland that could support offshore wind projects with 2.9 gigawatts (GW) generating capacity. Shell also bid in ScotWind—in a partnership with ScottishPower, the major proposes to develop the first large-scale floating offshore wind farms in the northeast of Scotland. Shell also announced at the end of July an agreement to buy Inspire Energy Capital LLC, a US renewable energy residential retailer with joint headquarters in Santa Monica, California, and Philadelphia, Pennsylvania. Also in the United States, Shell announced the final investment decision (FID) to develop the Whale deepwater oil project in the Gulf of Mexico. Whale, expected to begin production in 2024, is planned to reach peak production of around 100,000 boe/d and currently has an estimated recoverable resource volume of 490 million boe.

INTERNATIONAL GROWTH & DIVERSIFICATION “The supply chain has a key role to play in the UK’s energy transition. There’s a clear opportunity to maximise our supply chain’s resilience, experience and expertise in creating a cleaner, greener future globally,” Gordon noted.

The recent 5th Survive and Thrive Insight Report by the Energy Industries Council (EIC), which surveyed more than 60 energy supply chain businesses, found, for the second consecutive year, the most popular growth strategy in challenging markets was to move away from oil and gas and into other areas in order to ‘survive’. Diversification was high in the UK, and low overseas, according to the report. A total of 45% of UK companies used diversification to spread their risk and explore opportunities in As of January new sectors, while only 21% of non-UK companies chose 2021, offshore to pursue this strategy. As renewables with last year, three quarters accounted for of this diversification is into non-energy sectors, with only 25% of all subsea one quarter being from oil & revenues gas to renewables.

UK supply chain looks to diversify to thrive Diversification and growing on international non-oil and gas markets are also key goals of many of the UK supply chain firms which want to be prepared for the energy transition and a world striving for net-zero emissions. OGUK’s latest Economic Report from December 2020 found that 85% of OGUK members throughout the supply chain expect to increase their diversification into non-oil and gas activities during the next 12-24 months due to the market conditions after the pandemic. “Utilising the expert technical knowledge that exists within the substantial UK oil and gas supply chain is fundamental if we are to evolve toward a lower-carbon future,” Michie added. According to OGUK’s Business Outlook 2021 report published this spring, the emergence of new diversification and export opportunities will also help to support more jobs in time, supported by

The report “highlights that we have a unique opportunity for the transition towards a lower-carbon future to be homegrown in this country and potentially exported across the world,” OGUK’s Chief Executive Deirdre Michie said.

the North Sea Transition Deal’s aim of helping advance opportunities and support workers and businesses to transition into new work areas. OGUK’s Business Sentiment Survey showed that within the supply chain, 62% of companies reported that they provide goods and services which can help reduce their clients’ carbon footprint, supporting the industry drive to reduce operational emissions by half by 2030 and become a net-zero basin by 2050. A total of 82% of supply companies also said that they planned to advance their diversification efforts over the next two years, and offshore renewables, carbon capture, utilisation, and storage (CCUS), hydrogen, and utilities are all identified as key new markets. The UK subsea industry – which is worth £7.8 billion, employs around 45,000 people, and generates £3.3 billion in exports annually – is a strong contender to employ more of its underwater engineering capabilities to the offshore wind market. “Underwater engineering capabilities, honed in North Sea oil and gas and increasingly in demand in offshore wind, are eminently transferrable into both established and emerging sectors of the blue economy,” Neil Gordon, CEO of industry body Subsea UK, said at the beginning of this year. As of January 2021, offshore renewables accounted for 25% of all subsea revenues. Subsea firms report increasing diversification, particularly into defence, marine science, and aquaculture, Subsea UK says.

“Diversity and sustainability are no longer policies that remain on the shelf and are increasingly becoming key drivers in sustained cultural change. It used to be stated in energy circles that the safest businesses were the best businesses to work for, and were the most profitable too. It is now becoming clear that the most diverse, sustainable and safest businesses will be the best and most profitable,” the authors of the report said.

INTERNATIONAL GROWTH & DIVERSIFICATION

SCOTTISH FIRM

CONTINUES GROWTH IN MEXICO Whittaker Mexico & background

Some recent political changes with the Mexican government being less open and friendly towards international energy players has dampened the mood a little, but as with everything there is nothing surer than change so it will change again. The large international energy companies have made major commitments to Mexico and are currently drilling and getting ready to operate. The Mexican energy market will continue to be strong as it is geographically well placed, with a large border with the USA as well as strategic Atlantic and Pacific coastlines and ports. This allows access to Asian & European shipping routes and being the centre of the LATAM region won’t change regardless of which party is in power.

In April 2011 we took the bold step of starting our entity in Mexico, Whittaker Mexicana SA de CV. We decided to go it alone with no local partner and so registered as a new start business, using trusted local staff and our in-country Everything we Ex-Pat manager, we have always had a UK Country produce at Whittaker Manager to date. Our current country manager is designed to Anthony Childers has been order for a specific in the post for 2 years, all other staff members application and a including the general unique client manager are local Mexicans. Our base is in Ciudad del Carmen, Campeche State, which was the main operations hub for Pemex’s offshore operations. We also work regularly In Villahermosa and Tabasco State which are major Oil & Gas hubs, and certainly the main support base for land-based operations in Mexico. We have continued to work in areas like Altamira, Tampico, Veracruz City, in the states of Tamaulipas & Veracruz. The local Mexican labour is skilled, hardworking, and generally happy and engaged, with a zest for learning and personal development. Mexico, like many countries, has its challenges, political changes, underlying crime, and social imbalance but these factors are, on average, manageable. After the energy reform of 2013 and the subsequent arrival of international oil and gas super majors the landscape has changed, and the future looks good for the Oil & Gas supply chain.

www.ogv.energy I September 2021

International Growth

We have recently been successful with an international EPC based in Europe who came to us to deliver tertiary steel work for a project in Angola. That is a first for us, and an unusual shipping route, but the cost point and quality of our work in Mexico is competitive and high quality, meaning it is good for all parties. This model will see good growth in our operations in Mexico and we are looking to repeat this with other clients. Typical cost savings over Europe and North America are generally 20%. Key lessons: learn your market, adapt your processes to the local rules and guidance, work with trusted locals, and get to grips with the language, all seem obvious, but all are required. Even with these key steps in place success is not guaranteed.

Diversification

The question of whether to make a business international is very much down to the individual company but we would advocate that the Energy industry is one of the most internationally spread sectors in the world, so the answer is maybe best phrased as “Why not?”

All companies must embrace diversification. We are of the opinion that SME’s do this the best, but all companies must do this across all sectors. As the energy transition ramps-up, the energy supply chain will have to make changes to adapt. There are great opportunities as much of the skill sets that we all have can be transferred to a multitude of applications, in Offshore wind, Hydrogen, carbon capture utilities & mining, etc. It’s clear it won’t be easy, and the work may be harder for less return, but that doesn’t mean it’s still not good business.

Whittaker’s international growth has not been simple and has been a long process with hard work and challenging regulations, language, local market changes, not to mention a low oil price and COVID - but the rewards are there it’s a long game option. As the UKCS changes and matures, the environmental changes take place and so the energy supply chain must look to different markets as part of their diversification, plan and adapt to suit.

At Whittaker we are currently working on a floating renewable power project and a hydrogen project. These opportunities are at an early stage but offer a glimpse into the exciting future that may lie ahead for all of us. We have been working on a concentrated solar project in mainland Europe for four years, and we have an internal “Heat Pump” under development which is going well and will be coming to fruition within two years.

Whittaker UK History & background Whittaker Engineering has been an integral part of the North Sea Oil & Gas sector for over 37 years, our unique blend of practical solutions backed up by first principal engineering means we have been one of the “go to” companies since our inception in 1983. Whittaker offers a wide range of engineering, manufacturing, and offshore construction services in the UKCS and internationally.

At Whittaker Engineering we design, build, supply, fit, maintain and repair components and equipment for the marine and offshore industries. We embrace challenge, solve problems and develop technologies to provide viable solutions. Learn more at www.whittakereng.com

INTERNATIONAL GROWTH & DIVERSIFICATION

DIVERSIFICATION TOPS CHARTS AS KEY GROWTH STRATEGY EIC’s CEO Stuart Broadley explains why diversification is so popular, and shares success stories featured in 2021 Survive & Thrive report. I am privileged to interview many of the world’s top energy supply chain business leaders for EIC’s annual Survive & Thrive reports, the fifth edition of which was recently published, studying business growth strategies employed in challenging market conditions, of which 2020-21 was as hard as it gets. Diversification is, for the second year running, the number 1 growth strategy employed by leaders to survive and thrive their way out of the market and pandemic crisis. This is especially true for British companies, of which 45% used diversification to spread their risk and explore opportunities in new sectors, while 21% of non-UK companies chose to pursue this strategy. Diversification is still seen as the easiest growth strategy as it potentially brings faster ROI and allows direct access to lucrative domestic capital projects, energy and non-energy. But this brings the frustrating consequence that companies are once again postponing investments in new export markets, which business leaders feel attract too much risk. Developing new export markets is once again, for the fifth year running, the least used growth strategy, indeed the hardest growth strategy. Export-shyness is a growing disease in the UK and the EIC believes intervention will be needed to reverse this worrying trend. The research unearths another telling aspect to diversification, that the majority of

energy supply chain businesses, although diversifying actively, are still more than 50% reliant on oil & gas for their revenues. This reduced somewhat in 2020, offset by a like-for-like increase in mature renewables, but this is expected to revert in 2021-22 as the pandemic subsides and the bow-wave of postponed oil & gas projects hits the market again. Seemingly and perhaps surprisingly, all this fevered focus on decarbonisation and moving away from oil & gas during 2020-21 has not yet resulted in material changes to supply chain revenues. And what about companies diversifying into the new energy transition markets (hydrogen, CCUS, energy storage, etc.)? While 30% of participants are exploring new energy transition technologies (34% for UK companies and 14% for non-UK), investment levels are still normally relatively low. Although everyone is talking about energy transition, few have managed to convert this exciting new opportunity into revenues so far. In summary, companies are diversifying more and more widely, which is to be encouraged. However, companies when diversifying should be careful not to over invest in new energy transition technologies while the market is still over-hyped and under-fed. They should remember that the oil & gas market is still, in value terms, by far their largest feedstock for the foreseeable future. For those reading this and considering their own diversification journeys, here are some brief snippets of just a few of the many amazing and inspiring diversification stories that are featured in the full 2021 EIC Survive & Thrive report.

2021 EIC Survive & Thrive report AIS - A trilogy of diversified triumphs – Expanding beyond oil & gas into buoyancy, offshore wind cable management, and automotive fire protection, with £8m investment in new, state of the art facilities. Aker Solutions – A cleaner, greener mission – In February 2021, Vattenfall announced that Aker together with Siemens would be their preferred bidder if Vattenfall starts the development project for the Norfolk Offshore Wind Power Zone, valued at approx. £1bn. Aubin Group – A new low-carbon future – Repurposing its proven oil & gas chemical technology for renewable and water markets, while also developing new solutions to provide more cost effective and lower carbon options for decommissioning oil & gas wells. Hunt Thermal – Securing a scalable future in multiple markets – Securing their future, building on strong history in oil & gas engineering solutions, into chemical, power generation, nuclear and defence markets, with £1.5m investment in state-of-the-art manufacturing. JoBird – A drive towards diversification opportunities – Award-winning life safety storage solutions specialists turn attention towards renewable power, securing a £900k Orsted contract, championing the use of recycled materials. NRL – Delivering NDT expertise to nuclear new build – With start-up mentality, striving to disrupt, they successfully moved beyond reliance on radiography, a move which has opened up significant project awards and helped to futureproof the business. Petrofac – Meeting changing global energy needs – Embracing new expertise, upskilling their workforce and establishing a dedicated new energy services team, the company is making inroads in CCUS, hydrogen and waste to energy, ranging from Scotland to Australia. TP Group – Gaining traction in the UK rail sector – Applying 50 years’ experience supplying submarines with carbon capture, electrolyser and fuel cell technologies, now successfully diversified to win first rail sector contract, to deliver hydrogen fuel solutions. TÜV SÜD National Engineering Laboratory – Aiding the UK’s transition to clean power – As UK’s industrial strategy shifted towards clean growth and away from oil & gas, they successfully developed new flow measurement tools and techniques to secure their future. Full EIC Survive & Thrive reports found here https://www.the-eic.com/MediaCentre/ Publications/SurviveandThrive Stuart Broadley, CEO of the EIC, is executive author of the acclaimed EIC Survive & Thrive series of annual research reports focused on successful growth strategies used by energy supply chain bosses in challenging markets

The EIC supports companies that supply goods and services to the energy industries in a variety of ways. For more information visit: www.the-eic.com

INTERNATIONAL GROWTH & DIVERSIFICATION

Intrinsix

leads the way to international growth Arnlea Systems Ltd is the global leader in industrial mobile software for tracking, inspection and maintenance for the oil & gas industry. As a SaaS provider, Arnlea works with a wide range of energy and other global operators across Europe, Asia and the Americas providing IntrinsixEX, its hazardous ATEX inspections and reporting software.

Intrinsix is the culmination of over 25 years of customer intelligence integrated within Arnlea’s solutions, making us a trusted partner for our clients. The past two years has seen the products emerge as leading branded software in the marketplace, and Arnlea taking its place as market leader on the UK continental shelf, punching above its weight worldwide.

Allan Merritt, CEO, Arnlea Systems Ltd

Intrinsix is available as a complete solution or in separate modules – Intrinsix for Inspections & Maintenance (IntrinsixIM), Intrinsix for Materials Management (IntrinsixMM) as well as Intrinsix for the inspection & maintenance of hazardous area equipment (IntrinsixEX). The international focus of the business is evident; Arnlea’s website carries an interactive map to highlight the global reach of the business as it grows, showcasing the scale and scope of our Intrinsix suite of cloud-based software in use worldwide. The last twelve months have seen a number of international clients sign up or renew their contracts, often upgrading to the latest handsets or to cloud-based applications, including Oman & Ireland (Arnlea wins onshore opportunities in 3 different markets); Guyana (SBM Offshore) and the USA (TOTE Services). Clients deploying Intrinsix are experiencing multi-million-pound savings and payback of the system well within a year, whilst improving operational excellence, compliance, asset integrity and reducing their OPEX. The software’s Risk-Based Inspection (RBI) strategy can reduce inspection campaigns by up to 50%, freeing teams to focus on other areas of responsibility, giving inspectors a full picture of RBI alarms and thresholds for individual tags, areas and work orders, automatically improving their recognition and efficiency. This track record has meant Arnlea is now also working with a number of global onshore plant operators who have deployed IntrinsixEX, demonstrating the cloud-based software’s flexibility for onshore and plant inspection and asset management, as well as its traditional offshore base. In addition, they’re providing IntrinsixEX to LNG operators in the Middle East and traditional oil and gas operators in the AsiaPacific region, as well as commercial vessels converting to LNG in the US. IntrinsixEX uses auto-ID mobile technology to increase compliance and decrease costs in Ex inspections and maintenance activities and is compliant with IEC 60079 standards and ATEX directives. This makes it highly desirable for businesses seeking to improve or streamline their compliance into their overall operating systems. IntrinsixEX materially improves operations across a host of different profit centres, including Finance, Deployment, Data & Reporting, User and HSEQ levels,

www.ogv.energy I September 2021

and will continue to bring together many cost and productivity efficiencies to benefit oil & gas inspection operations and other commercial on and offshore teams. We became a Gartner client mid-2020 to strengthen our strategic planning for business growth. This decision has enabled access to unrivalled market and competitor information, and also helps support clients and future clients make positive decisions about deploying their Intrinsix inspection, maintenance and inventory software. Arnlea is a tried and trusted partner for many global oil & gas clients, with more than 25 years’ expertise in supply chain management and operational management activities, providing software solutions to the oil & gas industry. There’s no resting on our laurels; because there’s always that question: how can we improve our SaaS offering to our customer? The senior team has led the charge to add better functionality to our software so that it is available on different platforms. As the android and iOS worlds have grown, we’ve been stepping in tandem with that progress. Arnlea has formally set out its cloud-first strategy and is actively marketing its cloud-based web applications for international growth. With the market more willing to listen, we have a far more receptive audience. In addition, we’re a Microsoft Silver Partner, our formalised cloudbased applications possess the additional benefit of Microsoft’s security architecture for all our customers who take this next step. We’ve made sure that we’re continually improving our systems, processes and software brands. This in itself is a highly innovative approach in our part of the industry; constantly looking at how we can improve and the way that we do things. By formalising our SaaS strategy, we’re demonstrating that we’re a serious partner for our customers for the next decade and beyond. The global pandemic has prompted many Oil & Gas operators to embrace digital transformation such as cloud-based Office 365 and by taking that step, moving inspection software and its data to cloud-based platforms suddenly becomes a more natural move forward. We’re excited about the possibilities that this holds for Arnlea and the opportunities that lie ahead.

Arnlea, the global leader in industrial mobile software for tracking, inspection & maintenance for the global energy industry. For more information visit www.arnlea.com

INTERNATIONAL GROWTH & DIVERSIFICATION Namaka Compliance USP’s are Competence Management and Local Content assistance to a variety of organisations, in addition to HSEQ and Training services.

Namaka Compliance's

international growth strategy

Namaka Compliance as part of their internationalisation strategy are targeting Central America with their partners Presco, which is part of the larger Mexican owned CEMZA Group. The partnership has seen engagement with many organisations, particularly in Guyana, having involved engagement with all manner of organisations within the country to assist with Local Content.

Namaka Compliance has been utilising our partnership with Presco as they are currently on the ground in Guyana and engaged with all the contracting bodies of the Oil and Gas development. Not only is Guyana a vital area, but the entire Central American region is seen as critical. Namaka has an office and legal entity in Trinidad, which shows our commitment to working internationally and establishing ourselves in the country. With so many major energy projects beginning to commence again after restrictions, Namaka Compliance sees this as a crucial time to instil Local content at the very onset of the projects. Our programme ‘Bridging the Skills Gaps’ allows for knowledge transfer, mentoring support and defined objectives and methodologies. This also allows the development of Local Nationals to participate in major energy projects allowing for knowledge and wealth to be retained in their respective country. In Central America, these programmes will be jointly run with our partner Presco, as they have local knowledge, skills and cultural understanding of the region.

Managing Director of Namaka Compliance Jamie Murphy said, “Unfortunately due to COVID restrictions I have been unable to travel to Central America, but due to our partnership with Presco, with their in country presence I have been able to present our Local Content programme ‘Bridging the Skills Gaps’ to a variety of key individuals. With restrictions easing worldwide, this will allow me to now follow up on these discussions. Internationalisation has always been at the forefront of what we look to achieve”.

Namaka Compliance deliver innovative Compliance services encompassing Digital and Virtual Reality Technology to ensure that the Energy Sector For more information visit www.namakacompliance.com

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INTERNATIONAL GROWTH & DIVERSIFICATION

Could QHSE ABERDEEN help your business achieve global growth? QHSE ABERDEEN was founded in 2015 and since this time they have been helping their clients to put processes and standards in place that have laid the foundations for their clients to grow.

We operate internationally with clients from all corners of the world!

With the increase in remote working over the last 18 months, QHSE Aberdeen identified a gap in the market for helping organisations to implement ISO management systems and other certifications remotely. Attaining these important credentials has meant that their clients have been able to increase the number of tenders that they were qualified for completing and therefore attain more business.

Director, Angela Scott commented: “We live in an international marketplace now and with technology making it possible for us to communicate with customers in any geographical location, there are multiple routes to market available for us. In an increasingly riskaverse energy sector, we are able to provide management systems that give our clients the edge over their competitors and that is extremely valuable!”

INTERNATIONAL STANDARDS can bring a certain prestige to a company and certification can pay huge dividends for your business in improved efficiency, productivity and customer satisfaction due to a guarantee of the quality of processes and products as well as a reduced cost base. By implementing ISO standards an organisation could be in a far better position to grow their service offering and when in the possession of an International Certificate, it increases the probability of a successful tendering process and makes the chance of

gaining International interest in their services and products much greater. QHSE Aberdeen have benefited greatly over the last 12 months as a direct result of helping more clients to achieve ISO certifications and in an increasingly challenging market, QHSE ABERDEEN continue to increase their staff levels and their client base, proving that their strategy is paying dividends. QHSE ABERDEEN can help your organisation gain ISO certification, assist with any tendering process and independently carry out Internal and Vendor Audits, Training, GDPR Compliance & Risk Assessments.

Diversifying into new international territories is also a new challenge for QHSE ABERDEEN, but it one that has given them the opportunity to provide solutions to new challenges. Managing Director David Rusling noted: “Many of our clients have an understanding of ISO management systems, but just don’t have the time to develop and implement a new system from scratch. We have therefore developed ready-made ISO Management Systems that can be tailored and enhanced to fit their business model and get them to the ISO certification stage quickly and efficiently. These conversations can of course be had remotely and increasingly we are helping a wide variety of companies in different geographical locations”. ISO Conformance affords opportunity to all businesses who achieve certification.

QHSE Aberdeen provide a Consultancy and Advisory service to organisations of all sizes and sectors that require assistance in the development & implementation of robust Management Systems. For more information visit: www.qhseaberdeen.com

INTERNATIONAL GROWTH & DIVERSIFICATION

By David Rennie, Head of Global Trade - Energy, Scottish Development International. Contact: David.m.rennie@scotent.co.uk

REPOSITIONING FOR GROWTH

emissions and reach net-zero while ensuring that we continue to provide energy and jobs to people around the globe while also developing new technologies and solutions to meet the challenges and opportunities of the future.

David Rennie

It is an obvious fact but one which is always worth repeating that Scotland’s Energy sector is one of our true international success stories over the decades. For example, international activity accounts for around half of all supply chain sales from the Scottish Energy sector. And while oil and gas has been at the heart of that success story, it is an energy story that is changing, reflecting the global drive to reduce

www.ogv.energy I September 2021

Scotland is well placed to play an important role in that future. An increasing number of Scottish companies who may have described themselves previously as oil and gas companies would now describe themselves as energy companies. And the cross-sectoral opportunities in areas such as offshore wind, hydrogen, and carbon capture to name just a few will have significant opportunities for our supply chain. Many of the companies we work with have already been busy winning business in these emerging sectors. Scottish Development International is the Trade and Inward Investment agency of the Scottish Government. Over the years we have assisted hundreds of companies to win business overseas, either through helping them to attend missions and exhibitions, providing market intelligence, making connections, or indeed getting advice from our Globalscots network. Indeed, some of you reading this article will (hopefully!) will have benefited from such support. With people based both in Scotland and overseas locations in a number of our key

markets, from China to Mexico and numerous points in-between, we provide support and advice to hundreds of companies each year. In February this year, the Scottish Government through its Trade Vision document announced its intention to cease government support for fossil-fuel based activity internationally by the time COP26 takes place later this year. And while there are exemptions to this, such as support for decommissioning for example, this does mean that in SDI we will need to evolve our focus and the type of projects we can support. It is important to state that this policy does not mean we cannot work with ‘oil and gas’ companies – what it does mean is that for companies who operate in both oil and gas and renewables/low carbon markets they would be able to receive our support for the latter, and in limited and defined areas for the former. There are significant market opportunities across the world which offer prospects for our supply chain. So, for example, Offshore Wind provides significant opportunities in a number of locations including the Americas, Asia, and Europe regions. That is just one example, and these are many others. Such markets will grow significantly over the next few decades. So, the overall message is that while our focus is changing in terms of the areas of energy we will focus upon, International remains at the heart of our energy success story but it is one that is going to look very different in the future and much more diverse – but we should be excited by that. If you are interested to see what we can do to help, please contact myself to see what we can do to assist.

INTERNATIONAL GROWTH & DIVERSIFICATION

Powerful team skills and communication driving success at Re-Gen Robotics

As Re-Gen Robotics gears up to enter the European market, Managing Director Fintan Duffy says the skills, experience and effective communication of his team has been a key driver of the company’s success so far.

Since the launch of the company in 2019, we have invested £7million to develop a game changing solution to service oil tanks, unparalleled in terms of safety and delivery. So far, we have eliminated over 10,000 hours of CSE in tank cleans performed. Man hours are reduced, leading to an overall reduction in both accidents and health and safety incidents on site. As the sole authorised provider of this innovative technology and service in the UK, what we have created is a market leading offering, supported by a fully equipped team with the expertise and confidence to take our business to global markets.

Following years of intensive research, representing the culmination of the teams’ skill, dedication, and commitment to safety, in May we were awarded Grant of Patent for our mobile tank cleaning apparatus by the UK’s Intellectual Property Office. The patent covers our atmospheric sealed operator workstation, all in one mobile vacuum tanker and apparatus, integrated cranage system, custom designed external and internal, adjustable hydraulic ramps and ancillary equipment for our robots. It is personally rewarding and exhilarating to work with a group of people with the talent, passion and determination to develop the technology and service that is leading to the design of the next generation of class leading robots, in our sector.

Our system can be adapted to suit individual client needs and time frames - a one stop shop for safer, faster, and cheaper tank cleaning with measurably better results than traditional methods along with intelligent in-reporting capabilities to evaluate and improve the process for future cleans.

At the end of the clean, clients receive CCTV and intelligent performance reporting that helps monitor energy consumption and waste generation, vital for We stay close to both conserving funds and running a cleaner, our customers to greener business.

ascertain what additional features we can create to provide the most value for them.

At Re-Gen Robotics we have a very collegiate approach. Feedback is valued from all members of staff from Design Engineers, Robot Operators, Project Managers, Environmental Health & Safety Officers to the Marketing Team. These inputs are fundamental to the design of a system and service adapted to the variability of situations and to our operators’ and our clients’ requirements. The designs are based on existing and evolving customer needs, where our new technology can bring them the highest returns, as well as provide competitive advantage. We stay close to our customers to ascertain what additional features we can create to provide the most value for them. So not only do we value the team’s expertise on robotic design and operations, but we also prize their ability to build relationships and keep the lines of communication open with clients throughout the entire process.

Since we entered the market, we have created a growing demand for reliable, affordable and automated tank cleaning and monitoring solutions, but it is only through innovators, like the oil majors we work with that we can change the status quo in tank cleaning, making it a safer, faster and smarter process. Following a year of sustained growth, we’ve built state of the art headquarters and created five more jobs in Admin and Design at our Newry head office. We’ll also be taking on an additional three crew members, who will be based permanently in England. And we are not standing still with the development of our technology; we are working hard on several new patents that will allow us to carry out more and more diverse tasks remotely. By Q1 next year we’ll be in a robust position to roll out our tank cleaning service and technology to customers around the world. For more information visit: www.regenrobotics.com

Fintan Duffy, Managing Director, Re-Gen Robotics

Re-Gen Robotics is the first and only Zone 0 EX certified, remote controlled, 'No Man Entry' robotic tank cleaning company, in the UK and Ireland. For more information visit: www.regenrobotics.com

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“As a SME in offshore personnel and logistics I was really excited to be shown Onboard Tracker™, and it has not disappointed. From purchasing the system, we went live globally within a month. Logistics are a tough audience with so many cultural and regional differences, but all areas love the system and what it can do for them. The Onboard Tracker™ team aren’t sitting still either and we are continually in contact with ideas to expand what the software can do for our business. Onboard Tracker™ has been hailed our best IT success”

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Onboard Tracker™ records vital day to day operations data to ensure the safety of tens of thousands of highly skilled people around the world.

“Our reporting has been transformed with Onboard Tracker™. It’s instant and available for management and has clearly enhanced our training & competency processes whilst reducing the admin burden – the system is so quick and slick. Onboard Tracker™ is so intuitive and ever evolving. We continue to benefit from the ongoing development enhancements. For any training and competency teams out there considering a new system, you should absolutely seek an Onboard Tracker™ demo. Anyone using old, traditional methods of recording and spreadsheets, you need to get with the times and move away from this.”

“Onboard Tracker™ transformed the way we did business overnight. No longer did we need to lose time tracking down data – it was right there, and we could access it when needed.” The tailored, affordable approach delivered by Onboard Tracker™ allows logistics teams to input, track, and administer all crew rotations, absences, and holidays on a robust system. Training and Competence can be centrally

managed to encapsulate all training matrices, expiries, and related documentation to ensure compliance, whilst HR requirements such as employee contracts, personal information, appraisals and more are also ably covered. In line with the needs of any modern business, the system is a single online, mobile and portable platform meaning that it can be used safely and easily from anywhere. Users can access real-time data and easily upload information as required from a range of devices including a mobile phone, laptop or tablet from an office, vessel, offshore platform, or whilst on the move. Thanks to enterprise class design and a monthly subscription format, a core product can be developed module by module using add ons which takes the system to exactly where your business needs it to be – right at the heart of your operations. With almost three decades of experience, Solab is a leading Aberdeen based IT support company with a proven and enviable track record in supporting, training and developing a whole host of businesses across Scotland and beyond by delivering the very best in IT services and solutions. Over the years, the Solab software development experts saw recurring themes among client Operations, Logistics and Training requirements. All were experiencing similar challenges with poor visibility, reporting, duplication of effort, inaccuracies, human error, lost data and failed automation. They needed an innovative, flexible system that would grow with their business. One which would simultaneously manage a workforce and enhance operations.

It was time for smarter technology to drive their businesses forward - that’s when the revolutionary Onboard Tracker™ was born. Kevin Coll, Solab’s Managing Director and Graeme Miller, Onboard Co-Founder, used the team’s deep industry and technological experience to develop a single, integrated, online platform that enables any highly regulated industry to banish their log-jam of paper, email, spreadsheets and legacy systems and truly embrace the future of digital transformation.

Functions and Benefits • Workforce Planning, Crewing, Training and Competence in one enterprise class system. • User friendly, fast, portable online system giving up to date and accurate information safely and efficiently. • Records vital day-to-day operations data ensuring highest safety standards are met. • Intuitive, progressive technology that cuts the need for spreadsheets and transforms business processes. • Users can access real-time data from a mobile, laptop or tablet, vessel, offshore platform or whilst on the move. • Simultaneously manages a workforce and enhances operations.

INNOVATION & TECH SPONSORED BY

SUBSEA INSIGHTS

By Katie Milne

Reliable subsea controls:

key to supporting performance and profits

Katie Milne reveals how industry research shows the subsea sector demanding better technology to optimise production and maximise its brownfield assets.

As the business world continues to wrestle with a pandemic that has brought about a radically altered way of life for everyone around the planet for 18 months, the oil and gas sector has displayed its typical resilience. After oil prices plummeted in the spring of 2020 as global industrial activity and day-to-day travel fell off a cliff, they have now rallied, and operators have reverted to their de facto position of maximising returns and protecting their margins.

Nowhere is that better illustrated than in the subsea sector where, considering the relative expense of extracting every barrel and the fact equipment is located at the very bottom of the ocean, extending life of assets and demanding better efficiencies and reliability of performance are clearly paramount. This May, the latest Subsea Life of Field Services 2021 Supplier Performance Report was released.by Kimberlite International Oilfield Research, a US based oil and gas market research and consulting company. Kimberlite uses data collected from oneto-one interviews with industry professionals to assess current market trends and establish performance benchmarks for global oilfield equipment and Tore Erntsen, service suppliers. CTO,

Turning to tiebacks

Proserv

Its findings suggest that the subsea space is very much influenced by caution around investment in new developments, alongside a desire to drive profitability by further exploiting its brownfield assets. Approximately 40% of the operators surveyed believe that they receive a high return on investment on subsea tiebacks – effectively adding new wells on to the existing subsea production infrastructure. Iain Smith, Senior Vice President at Proserv, a prominent global supplier of controls technologies, and previously the leader of the Aberdeen based firm’s entire subsea business, explains the thinking: “When you have an industry looking to save money and protect margins, tiebacks make perfect sense. Development costs are many times lower when compared to new greenfield sites – you’re looking at millions versus tens of millions of dollars.

You’ve already got much of the infrastructure in place, so timeframes are also more rapid for an operator to get that extra oil into production and start earning revenue.” Kimberlite’s Subsea Equipment & Services Supplier Performance Report, released last year, had already painted a picture of reduced sentiment around development expenditure with Covid-19 starting to impact all aspects of life and the oil price in retreat. The study predicted that through this year into 2022, strategy would focus principally on brownfield enhancement and expansion by “exploiting opportunities within existing fields”.

Reliability and obsolescence But this is where the crux issue of the reliability of the vital controls technology kicks in. One major headline statistic from the latest Kimberlite release is that 80% of the operators interviewed presently own subsea wells requiring equipment maintenance or repair in 2021, with their subsea control systems being the most likely piece of equipment to fail. Kimberlite states “…operators report having to change out subsea control systems on average 2.34 times over the life of their typical subsea well. 65% of operators face obsolescence issues with subsea equipment and again subsea control systems lead the way as being the component most often experiencing obsolescence issues.” Iain Smith says this is a core fundamental problem in the subsea industry and something Proserv has been warning about for years: “It’s all very well operators planning to expand their existing brownfield assets after five or ten years with a few additional wells to maximise returns if, by the time they want to make that investment, their subsea control system has become unreliable and is now obsolete as the manufacturer they bought it from no longer supports the product, because it has released an upgraded, newer system in the meantime.” Proserv’s Chief Technology Officer (CTO) Tore Erntsen observes that some operators subsequently abandon their extension strategies, as they believe their only remedial option is an expensive and time intensive full system upgrade, rendering their plans unviable. “We have focused much of our own coexistence technology development on mitigating this exact problem via affordable retrofit capabilities, as it is such a regular occurrence.

Iain Smith, Senior Vice President, Proserv

www.ogv.energy I September 2021

“Right now, with prices and sentiment improving, operators are looking to leverage their known reserves through tiebacks but having to manage failing and unreliable controls can be a serious hurdle to achieving this.”

SUBSEA INSIGHTS

Environmental factors Tore Erntsen says the subsea market is like any other with new technological enhancements such as remote operations and real-time monitoring continually pushing the envelope around capabilities but “the need for reliability from the control system is an over-riding consideration” otherwise strategic planning and the bottom line can be severely dented. But Proserv’s CTO offers another intriguing thought for the future, with environmental, social and governance commitments front and centre of boardroom policies and strategy right now: “One of our own key USPs is the fact, with our backwards compatibility and faster bit rates, we can solve those reliability problems affordably and quickly with limited intervention, and even supply increased functionality. What that means is more refurbishment and reuse of existing equipment and far less wasteful replacement. “We can then enable additional instrumentation and sensors like leakage detectors to be fitted on to existing assets, by utilising our open communications infrastructure.”

"Operators report having to change out subsea control systems on average 2.34 times over the life of their typical subsea well."

Targeting the tree But there are clear signs that the subsea segment is now starting to look beyond conventional, established thinking to detect advantages that could boost its margins moving forwards. For instance, a further eye-catching finding from last year’s Kimberlite Subsea Equipment & Services Report is that well over two thirds of operators see no differentiators in the performance, or even offering, of subsea trees. The Report states: “The majority of subsea operators view subsea trees as becoming commoditized and that there are really no major differences in the suppliers’ offerings and equipment performance. This observation is revealed in that 69% of the respondents interviewed cite that subsea tree are becoming commoditized.” Proserv’s Smith isn’t at all surprised and reveals that operators have admitted procurement has previously been directed in the wrong areas, saying that convenience and lack of foresight were factors:

“It is easy to buy a subsea tree and then get the controls thrown in from the same supplier to speed everything up before a well is brought on stream. But a few years later these same operators seriously regret it when their controls start to break down.

Erntsen emphasises that retrofitting a subsea electronics module on any existing system is clearly less of an environmentally intrusive option for an operator needing to improve performance on a failing subsea field, than ripping out and replacing much of the vital infrastructure. “As customers think more and more about their carbon footprints, and we all seek to address global warming, the environmental costs of full subsea system upgrades will become a significant deterrent. Saving money and time, alongside greater environmental responsibility, will become the persuasive offering.”

Proserv's Artemis 2G (A2G) Subsea Electronics Module.

“Subsea electronics are the key area where most problems can emerge, not the tree, but a lot of the initial investment decisions just don’t consider that eventuality. In the end, operators can needlessly waste money having to replace this equipment.” Smith believes more of the bigger players are recognising the reality that optimised performance and extended life of assets (two major issues for subsea operators) ultimately come from making smarter, more forwardthinking decisions around their procurement of high-quality subsea control systems. Kimberlite’s Subsea Equipment & Services Report certainly seems to support Smith’s point of view with concerning figures for operators around subsea control system average mean time between failures, with problems developing after just 22 months of operation. Furthermore, the subsea control module, and the electronics within it, account for more than 70% of component failures.

Providing leading controls technologies to enhance performance, optimise assets and extend life right across the energy sector. For more information visit: www.proserv.com

RENEWABLES SPONSORED BY

Step into a safer environment High quality, industrial anti-slip safety products.

www.scotgrip.com

OPTIMISING

SAFETY

A NECESSARY

INVESTMENT RenewableUK is delighted to work with Global Wind Organisation (GWO) to explore the topics surrounding safety and workforce training in offshore wind.

Safety is a priority in any offshore industry. It is one of the key standards by which companies are judged, recommended, and used, making safety records a vital part of any portfolio. For organisations looking to transition from offshore oil and gas into offshore wind – including manufacturers, project designers, developers and organisers, transport providers and more – applying the same commitment to safety is paramount. Global Wind Organisation (GWO) is a non profit body owned by the world’s largest manufacturers and owners of wind turbines who are keen to highlight that safety protocols and standards are not the same across the two industries. This means domain-specific training will be critical for a successful transition.

An accelerated transition There is a growing number of traditionally oil and gas companies now moving into the offshore wind sector, with several major players investing heavily to enter the market in 2020/21. Net zero targets and government initiatives are encouraging and facilitating this move towards renewables, with many organisations looking to secure the future of their business in this new and highly prosperous sector. To streamline and therefore further enable this transition, some re-training of the workforce is essential. Of course, many workers will already have some very useful knowledge and many applicable skills from their experience in offshore oil and gas – while these are certainly transferable, the domain of a wind turbine and one’s knowledge of how to work safely are necessarily different.

www.ogv.energy I September 2021

For over 30 years, we’ve designed and manufactured market-leading anti-slip safety products that hugely improve safety standards on stairways, walkways, decks, ladders, ramps, gangways and pipes, in a range of industrial settings.

A safe workforce is a productive workforce To realise ambitious net zero targets, all renewable energy sectors must be allowed to flourish. In offshore wind – as in all other areas – establishing, building and inspiring an effective workforce is crucial for significant and rapid industry growth. Specialised training is just one of the potential answers to the challenges we may face, but it will be an important one for on-going productivity and success.

Domain-specific training Of course, there is no need to start from scratch; workers simply need to build on their existing knowledge and skills to better understand how these relate to their new surroundings when moving into offshore wind. There are important differences between oil and gas and offshore wind sites that must be considered carefully when moving to the latter sector, which make tailored workforce training crucial for a successful transition. The message from the GWO is that any concerns regarding the cost of this training are far outweighed by the potential safety risks of not sufficiently educating and supporting the transitioning workforce. Indeed, among the top incident areas as reported by G+ Offshore Wind Health & Safety Organisation’s 2020 incident data report was the turbine itself, which would be the main environment to differ most between offshore oil and gas and offshore wind sites. Similar findings were published by SafetyOn in onshore wind, who found that 65% of high potential incidents occurred on a turbine. For greater insight into safety issues and common hazards across the sector, there are calls for a system to collect data on a global scale using standardised methodologies, for which early-stage developments have begun. To strengthen the message in the industry and communicate the importance of training designed especially for offshore wind, GWO is promoting a new white paper which clarifies how the known risks are assessed by the wind industry HSE community and how these

translate into training standards to help mitigate the potential hazards. All GWO standards are created by the industry, for the industry, so evidence like this is imperative to ensure that guidance and educational programmes are constantly optimised for the sector. To date, more than 200 safety professionals from around the world have contributed in some way to GWO guidelines since they were first published in 2011. This is a tradition that the organisation plans to retain, continuing to use the latest risk and hazard data from the industry itself to create practical training for the next generation of offshore wind workers.

Significant potential Not only does this ensure crucial safety standards across the offshore wind industry, but it also provides reassurance for the thousands of workers entering the market. Many more individuals will be looking for new opportunities as their old industries begin to slow down and the potential of offshore wind will offer an attractive allure for some years to come. GWO has published forecasts for workforce training needs in target countries up until 2025, which predict that an additional 100,000 individuals will require GWO standard training to carry out a variety of roles in construction and installation, operations and maintenance of offshore wind projects. These forecasts demonstrate the level of support and investment in training needed to facilitate the anticipated growth in offshore wind around the world.

RENEWABLES

TECHX CLEAN ENERGY START-UP ACCELERATOR

Net-Zero Technology Centre launches applications for TechX Clean Energy Start-up Accelerator The Net-Zero Technology Centre has today [23 August 2021] opened applications for its TechX Accelerator. Now in its fourth year, the award-winning programme looks to accelerate an entrepreneurial ecosystem of technology start-ups, who are paving the way in the clean energy space. Up to £100,000 grant funding and expert support will be provided to the successful companies that gain a place in the programme. The TechX Clean Energy Accelerator supports companies developing innovative, transformative technologies that can accelerate the transition to a net-zero energy industry. The Centre particularly seeks to support start-ups with diverse founder teams. Technology focus areas for the accelerator include renewable energy technologies, green and blue hydrogen and other clean fuels, carbon capture, usage and storage (CCUS), digitalisation and technologies that reduce greenhouse gas emissions from the oil and gas industry.

VESTAS INSTALLS V155-3.3MW PROTOTYPE IN DENMARK

The 15-week intensive programme will offer up to 12 start-ups access to the Centre’s extensive industry network. Start-ups will receive support in a range of areas; from creating a minimum viable product and testing the value proposition, to securing field trials and pitching to potential customers. Additional guidance comes from the programme’s diverse range of mentors which include entrepreneurs, industry leaders and investors. The accelerator will continue to be delivered in a virtual format allowing for more flexible participation. This year, we would like to see 30% of shortlisted start-ups to be led by female founders or co-founders. It is an exciting time to build companies and technologies which can close the gap to affordable net-zero energy. To date, the programme has delivered three successful cohorts, with 50% of last year’s cohort represented by start-ups developing clean technologies including a novel electrolyser that uses sea water to produce green hydrogen (sHYp) and bio-inspired, ultra-efficient direct air capture to remove CO2 from the atmosphere (Mission Zero). Over 33 start-ups have graduated from the programme, with more than 20 field trials completed and five companies having commercialised. The online application process is now open for the TechX Clean Energy Accelerator, which will begin in February 2022. Applications will close on 28th November 2021, with places confirmed in January 2022. Find out more and apply here. https://www.netzerotc.com/techx-programmes/clean-energy-accelerator/

Following the V155-3.3MW turbine’s first kWh, expected in early September, the prototype will undergo an extensive test and verification programme to ensure reliability before serial production begins in the first quarter of 2022. Leveraging its continued focus on innovation and product development, Vestas has upgraded the variant to a 3.6MW standard rating. The upgrade delivers an increase in energy production of more than 4% on turbine level depending on site-specific conditions, while maintaining siteability parameters. It also features improved reactive power during dynamic frequency and voltage events. Vestas chief technology officer Anders Nielsen said: "With this upgrade, we once again underline how we continue to optimise our technology offering with our commitment to innovation and product development." Built on the well-proven 4MW platform, the V155-3.6 MW offers an excellent business case for our customers in the low and ultra-low wind segments globally." The V155-3.3 MW turbine was launched in late 2020 as a 4MW platform variant optimised for the low and ultra-low wind segment. The upgraded V155-3.6 MW has been design-optimised to enable an expanded market applicability, and it will predominantly be targeting low-wind sites in India and USA as well as a number of European and Latin American markets. The V155-3.3 MW prototype turbine at Østerild will be upgraded to 3.6MW in the fourth quarter of 2021.

RENEWABLES

SPONSORED BY

CONTRACT AWARDS SPONSORED BY

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

www.infinity-partnership.com

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

Ampelmann signs 13 new contracts in European offshore wind in the first half of 2021 “Securing these projects has brought us new opportunities to deliver the highest level of safety to offshore operations,” said Bob Rollerman, Business Developer for Europe at Ampelmann.

Subsea 7 today announced the award of a sizeable contract in the Middle East. The offshore wind industry continues to grow in 2021, and so does the need for safe and efficient offshore access. Ampelmann, the Dutch offshore access provider, has signed 13 contracts in European offshore wind in the first half of 2021. With these contracts, the company enables the installation and maintenance of wind farms by providing motion compensated gangway solutions for both personnel and cargo transfer.

“It has been a true team effort, with colleagues from across the region working hard to bring those contracts in. We are also happy to be working with both recurring and new clients to make their operations easier on the open sea.” For all 13 campaigns, Ampelmann relies on its A-type and E1000 systems, both with a stellar track record in the industry. Two of the projects will make use of the company’s A-hoist add-on, a recent innovation that enables its flagship system, the A-type, to lift and transfer cargo up to 240kg in a safe and efficient manner. This is particularly important in operations where tools and parts need to be brought to and from the offshore platform.

For larger cargo operations, Ampelmann is using the E1000, which can transfer loads up to 1 ton and fully compensate for the motions of the vessel in high sea states. “Safety and efficiency are at the core of what we do at Ampelmann and the E1000 delivers on both. It significantly improves the efficiency of our client’s operations, with its ability to switch between cargo and personnel transfer in less than a minute and with the push of a button,” Rollerman said. The A-type and E1000 systems are supporting the installation of several new windfarms, among which the Horn Sea Two, Moray East and Hollandse Kust. Among the recently secured projects is one in France, a new market for Ampelmann, where it is supporting the installation of the foundation of a wind farm. This also happens to be the company’s first commercial offshore wind project in France.

iSURVEY signs contract with Nexans worth NOK 150 million Nexans recently awarded iSURVEY a multi-year contract with options to be extended, initially worth in the order of NOK 150 million.

installation vessel, CLV Nexans Aurora and other installation/support vessels engaged by Nexans, including the well proven C/S Nexans Skagerrak.

iSURVEY, a leading provider of survey and positioning services for the offshore energy sector, will support Nexans’ offshore high voltage cable installation projects on a global basis.

iSURVEY CEO, Øivind Røegh commented: “When Nexans wishes to renew their contract with iSURVEY, a contract that iSURVEY has held since 2007, it shows the value of our efforts to build specialist competence, capacity and develop new technology to support their operations.”

The new contract will cover survey support for the newly launched, state of the art, cable

iSURVEY signs contract with Nexans worth NOK 150 million Bermuda-based Valaris Ltd, the offshore drilling services company, has been awarded one-well contracts with Shell Namibia Upstream B.V. and Shell Sao Tome and Principe B.V. offshore Namibia and Sao Tome and Principe, respectively, for the drillship, Valaris DS-10. The company said the precise timing of the first contract is to be confirmed, but is expected to commence in the fourth quarter of 2021.

www.ogv.energy I September 2021

The Sao Tome and Principe contract will follow on directly from the Namibia contract. The contracts have an estimated duration of 60 days each. Valaris operates a diverse rig fleet of 11 ultradeepwater drillships, five semi-submersibles and 44 shallow-water jack-ups across six continents.

CONTRACT AWARDS

Xodus Awarded Contract for PETRONAS’ CCS Project in Malaysia Global energy consultancy Xodus has been awarded the conceptual engineering design contract for PETRONAS’ first complete Carbon Capture and Storage (CCS) project, offshore Malaysia. The Kasawari CCS project, off the coast of Sarawak, will comprise the capture and processing of carbon dioxide (CO2) from the sour gas field development, which will then be injected in a depleted gas field. This project is a key element of PETRONAS’ aspiration of achieving net-zero carbon emissions by 2050. Xodus has extensive experience across all aspects of CCS including designing and operating systems to capture, process, transport, inject and store CO2. In delivering for Kasawari, Xodus will also enable knowledge and expertise exchange with its Malaysian client and contractor communities.

The work with PETRONAS was secured as part of Xodus’ contract to provide engineering services for the operator’s Malaysian and international developments. Under the agreement, Xodus is delivering feasibility studies and conceptual design. Simon Allison, Xodus’ Regional Director for Asia Pacific (APAC) said: “This is a significant step for PETRONAS and Malaysia and aligns with our own ethos of delivering a responsible energy future. The award of this contract is a demonstration of the success of our expansion and recognition of our growing footprint across the APAC region. “CCS will be a key part of a global transition to net-zero carbon emissions and our international experience and expertise will support PETRONAS in delivering sustainability across future projects. We are proud to be working together.”

DOF Subsea and Aker Solutions JV awarded decom contract by DNO Norwegian partners DOF Subsea and Aker Solutions have, through their joint venture KDS JV, secured a subsea decommissioning contract from compatriot oil and gas operator DNO on the Norwegian continental shelf. The contract, with an undisclosed value, includes engineering, preparation, removal and disposal of subsea infrastructure, including template, manifold, production spools, umbilical, covers and associated hardware. The project will be delivered by DOF Subsea’s 2008-built construction support vessel Skandi Acergy, and Aker Solutions will use its disposal site at Stord for recycling. Offshore work is planned for Q1 2022, but with a possibility of an earlier start in Q4 2021.

Baker Hughes to Deliver Subsea Compression Manifold for Chevron Subsea Compression Project Baker Hughes, a global energy technology company, has been awarded a contract from Chevron Australia Pty Ltd to deliver subsea compression manifold technology for the Jansz-Io Compression (J-IC) Project. Driven by Baker Hughes’ Subsea Connect early engagement approach, Baker Hughes will provide Chevron with a subsea compression manifold structure (SCMS) including module and foundation, as well as the latest optimised version of its horizontal clamp connector system and subsea controls for the manifold structure. “We continue to transform the core of our subsea business by delivering reliable life-offield solutions designed to drive efficiency and productivity,” said Graham Gillies, vice president of Asia Pacific at Baker Hughes. “Our Subsea Connect business model has enabled early

engagement, allowing us to combine the best of our technology with engineering and project management localisation.” Baker Hughes’ Subsea Connect business model seamlessly brings together life-of-field expertise and technical capability, enabling customers to accelerate time to production, reduce total cost of ownership and maximise recovery over the life of the project. The Jansz-Io gas field is located around 200 kilometres offshore the north-western coast of Western Australia, at water depths of approximately 1,400 meters. The Jansz-Io field is a part of the Chevron-operated Gorgon natural gas facility, one of the world’s largest natural gas developments. Baker Hughes has previously provided 23 subsea trees, 12 subsea manifolds, 45 subsea structures and

a subsea production control system for the Gorgon natural gas facility. The Chevron-operated Gorgon natural gas facility is a joint venture between the Australian subsidiaries of Chevron (47.3%), ExxonMobil (25%), Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and JERA (0.417%).

CONTRACT AWARDS SPONSORED BY

CONTRACT AWARDS

Aberdeen's North Star Renewables lands £96 million to build fleet for giant wind farm The secured loan from Allianz Global Investors supplements North Star’s own balance sheet and equity commitments from its 100% shareholder, Basalt Infrastructure Partners. The funds will go towards the construction of three new service operations vessels (SOVs), which will be delivered to the vast Dogger Bank offshore wind farm in the North Sea on long-term contracts.

www.ogv.energy I September 2021

Once completed, Dogger Bank will become the world’s largest offshore wind farm, capable of powering some six million British homes. It is currently under construction by joint-venture partners Equinor, SSE Renewables and Eni. The contract with Dogger Bank will create 130 long-term jobs in Scotland and the Northeast of England during the operations phase of the wind farm.

North Star chief executive Matthew Gordon said: “This investment from Allianz GI is a first for our industry and attracting project finance from such a well-respected, global investor demonstrates the confidence in our capabilities to deliver and operate our new SOVs which have been a transformational step for the company in terms of our energy transition.

CONTRACT AWARDS

“This is the beginning of a third phase for our business. North Star started out in the fisheries industry 135 years ago before diversifying into the oil and gas sector in the 1970s. “Our new, unique SOV design has kick started this very exciting new chapter for the business in renewables and we plan to continue building on this momentum,” he added.

CONTRACT AWARDS SPONSORED BY

"Infinity Partnership is an awardwinning, multi-disciplinary accountancy and business advisory practice, with a proactive approach to customer service."

www.infinity-partnership.com

ON THE MOVE SPONSORED BY

www.ducatuspartners.com

Ducatus Partners Ducatus Partners is an industry leading executive search and leadership advisory firm operating across the global energy and infrastructure industries.

www.ducatuspartners.com

With decades of experience in our specialist sectors, the breadth and depth of our networks, coupled with a meticulous approach to research and consulting, provide us with reach and insight few other firms can offer.

By Sean Buchan

Manageing Partner - EMEA at Ducatus Partners Mark Holstein

Citgo Hires Former Deepwater Horizon Lawyer as General Counsel

Citgo Petroleum, a United States oil refiner once controlled by Venezuela’s state-owned oil and gas company, has announced the appointment Mark Holstein as General Counsel. Mark is a 25 year veteran BP’s America legal team.

Alan Walsh

Emma FitzGerald

Seplat Energy Announces Board Appointment

Seplat Energy have announced the appointment of Emma FitzGerald as an Independent Non-Executive Director of the company. Most recently Emma served as Chief Executive Officer of Puma Energy International, a global energy company owned by Trafigura and Sonangol. She was also formally a Director with the National Grid where she ran gas distribution and water and waste networks.

Wiens van Zeil

ANSA Appoints Managing Director

ANSA, a leading provider of independent data analytics solutions to the global energy industry, has appointed Alan Walsh as its new Managing Director to spearhead the company’s next phase of growth. Alan joins from READ Cased Hole where he most recently served as Service Delivery Director. Prior to this he worked at Halliburton for more than 16 years, holding a number of senior service and engineering roles across international locations.

www.ogv.energy I September 2021

Neptune Energy Appoints Director of Subsurface

Neptune Energy has named Wiens van Zeil as the company’s new Director of Subsurface. He joins the business from Ithaca Energy where he was most recently Subsurface Manager for the Captain Field. Prior to this, Wiens spent over 15 years with Chevron in a number of senior roles including Technology Manager for Upstream Europe, Project Manager for Clair South and Major Capital Project Engineer for Deepwater Operated Assets.

Gehan Talwatte

Anthesis Appoints Deputy Chairman and NonExecutive Director

Anthesis, the largest group of dedicated sustainability professionals globally, has appointed Gehan Talwatte to the Board as Deputy Chairman and NonExecutive Director. Gehan has founded and run a number of ventures including Ascend, Hoovers Online, eccelerate.com and Cognizant Technology Solutions; all of which made strong trade or public market exits.

Emily Reichert

Forum Energy Technologies Announces Board Appointment

Forum Energy Technologies has announced the appointment of Emily Reichert to its board of directors. She will serve as a member of the nominating, governance and sustainability committee. Emily currently serves as Chief Executive Officer of Greentown Labs, North America’s largest climate tech startup incubator. She has led the rapid growth of Greentown Labs into a global center for climate tech solutions innovation.

ON THE MOVE

www.ducatuspartners.com

Ivan Van der Walt

Vera de Gyarfas

NextDecade Announces Key Executive Appointments

NextDecade has announced that the appointment of Ivan Van der Walt as Chief Operating Officer and Vera de Gyarfas as General Counsel and Corporate Secretary. Ivan will hold responsibility for all project management, engineering, construction, commissioning, and operations of the Company’s LNG and carbon capture projects. He holds nearly thirty years of experience in the global energy industry, including senior roles with Chicago Bridge & Iron Company and Chevron. Vera brings extensive legal experience in the global energy industry to NextDecade and was previously a partner in Mayer Brown’s Houston office and a member of the firm’s Oil & Gas industry group. Vera has strong LNG industry experience, including representing Anadarko as operator and developer of an LNG project in Mozambique, as well as leading other activities in support of project developers, buyers and investors. She is the Regional Director for the Association of International Petroleum Negotiators in the United States and Vice Chair of the International Committee of the Institute for Energy Law.

Derek Thomson

Suki Gill

Global E&C Makes Leadership Appointment

Global Engineering and Construction (Global E&C) the engineering, procurement and construction service provider to the oil and gas industry, has appointed Derek Thomson as its new Director of Projects to support the strategic growth plans of the company. Derek joins Global E&C from Worley, having held various positions with the company, most recently serving as Operations Director where he played a leading role in projects and contracts for the upstream, midstream and LNG integrated solutions business. Prior to Worley, he held senior project and engineering positions with Dana Petroleum, Fairfield Energy, Amec, Total and Wood. As well as his current role with Global E&C, Derek is also currently Co-Chair on the Safe Working Essentials workgroup within Step Change in Safety.

Aker Carbon Capture Names New Head of United Kingdom and Investor Relations

Aker Carbon Capture has announced that David Phillips has been appointed as Head of United Kingdom and Investor Relations. David joins the company from HSBC’s Global Banking and Markets business, where he worked in London as Head of Equity Research for Europe and before this in New York as Global Head of Resources and Energy Research. His previous experience also includes roles at Aker Solutions, where he was responsible for Industry and Investor Relations.

Enteq Upstream, the oilfield services technology and equipment supplier, has announced the appointment of Suki Gill as Vice President Business Development. In this role, Suki will be responsible for driving the development of existing and emerging portfolio by collaborating with customers to ensure industry needs are being accurately identified and addressed.

12 Khalid Al Qubaisi

David Phillips

Enteq Upstream Hires New Vice President Business Development

Jay Grewal

New Chief Executive Announced for Abu Dhabi Energy Services

Abu Dhabi National Energy Company (TAQA) has announced the appointment of Khalid Al Qubaisi as Chief Executive Officer of the company’s Abu Dhabi Energy Services (ADES) subsidiary. He has more than 15 years of diversified experience in the investments and energy sectors. Prior to this appointment, Khalid served in several leadership positions at Mubadala Investment Company, most recently as Vice President of Information Communication and Technology. Before joining Mubadala, Khalid worked as Chief Investment Officer at International Capital and was the Head of Corporate Finance & Business Development at the National Bank of Abu Dhabi, where he focused on developing the bank’s investment banking capabilities.

Michael Montelongo

Civeo Corporation Announces Two New Board Appointments

Civeo Corporation has announced that Jay Grewal and Michael Montelongo will join the business as members of its board of directors Jay will serve on the company’s audit committee and finance and investment committee and Michael sits on the compensation committee and nominating and corporate governance committee. Jay serves as President and Chief Executive Officer of Manitoba Hydro, one of the largest integrated electric and natural gas utilities in Canada, She joined Manitoba Hydro from the Northwest Territories Power Corporation where she held the position of President and Chief Executive Officer. Michael is the Chief Executive Officer of GRC Advisory Services, a board governance firm. He was previously Chief Administrative Officer and Senior Vice President, Public Policy and Corporate Affairs for Sodexo. He is a former George W. Bush White House appointee serving as the 19th Assistant Secretary for Financial Management and Chief Financial Officer of the United States Air Force. Michael is a lifetime member of the Council on Foreign Relations and was an executive with a global management consulting firm and a regional telecommunications company.

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www.wellsafesolutions.com

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

Indonesia set for massive offshore decommissioning push environmental restoration, as required in cooperation contracts. The implementation of decommissioning of seven platforms is also a part of the strategic plan of SKK Migas which placed decommissioning as one of the pillars for the implementation of environmental conservation through the dismantling of equipment that is no longer used, both on offshore. Indonesian upstream regulator SKK Migas will conduct a decommissioning program for seven platforms no longer used to support upstream oil and gas operations. SKK Migas said that this step was part of the industry’s obligation to carry out post-operation

There are currently 634 platform units in waters offshore Indonesia. A total of 527 platforms are still actively used to support operational activities while 100 units are not operating and seven platforms have been decommissioned in previous periods for other upstream business activities.

Head of the communications division of SKK Migas Susana Kurniasih, said: “Currently, we are re-evaluating 100 platforms that are no longer used to support production activities in preparation for demolition which will be carried out in stages. “SKK Migas has prepared a decommissioning roadmap which will be completed within seven years. For the time being, seven platforms are ready to be dismantled in 2021. We received an offer from the Government of South Korea to decommission the Attaka I, Attaka UA, and Attaka EB platforms. This assistance is provided to carry out a pilot project to demolish platforms that are no longer in use through cooperation between countries."

Decom solutions company expands into Aberdeen Decommissioning solutions specialist, Decom Engineering, is expanding its operations with a new base near Aberdeen, which will improve access to key oil and gas clients. The £200 000 investment will establish a test centre and office facility on the doorstep of Europe’s oil capital, as part of a strategy to win major decommissioning projects. Established in 2011, the Northern Ireland-based engineering company has developed technologies which provide greener, faster and safer solutions for decommissioning in the energy sector. The company’s Pipe Coating Removal (PCR) equipment can strip and clean decommissioned or surplus pipelines of multiple coatings so they can be repurposed for use on other projects, while its range of cold cutting saws are in demand on international decommissioning projects as oil and gas operators replace or remove ageing infrastructure and redundant assets. In the last year Decom Engineering has hosted a number of technology showcases and equipment trials in and around the Granite City which has led to securing contracts with major energy sector contractors. The new facility will strengthen its position to win further work in the UK and further afield with clients who have global operations, and it is

www.ogv.energy I September 2021

anticipated up to six new engineering, design and administration posts will be created. Decom Engineering Chief Executive Officer, Sean Conway, said: “Aberdeen is a hotbed of technology companies who support the traditional oil and gas sector - and now the renewable energy industry - by innovating and developing cleaner, greener and safer ways of satisfying global energy demand. “My family have close links to the oil and gas sector and Aberdeen, and the early part of my career in the decommissioning sector was spent in the Northeast of Scotland, so it is an area which has had a strong influence on how we have grown the business. “Our focus is on the decommissioning sector and with many of the oil and gas majors increasingly focussed on the transition from hydrocarbons to renewable energy, opportunities for us to win new business in the UKCS will undoubtedly grow. “Previously we have rented premises or test facilities to showcase our products and expertise to North Sea clients, but having a local facility and staff is the next logical step, and we have identified a site and hope to be up and running by Q4 of this year.” Decom Engineering has completed contracts in mainland Europe and Asia Pacific, and is

tendering for new workscopes in Thailand, North America, Brazil and India. The company continues to invest in R&D and with its own in-house design and build capability, it means tools and equipment can be adapted to bespoke client requirements. Mr Conway added: “We have invested more than £700,000 in ongoing research and development as we devise decommissioning technologies which are more environmentally friendly and cost effective. Aberdeen and the UKCS is an important market for us, but it can also be a gateway to international projects which will add to our track record in mainland Europe and the Asia Pacific region.”

DECOMMISSIONING Oil and gas industry facing $60 billion clean up costs for their own rigs New laws to force big gas producers to pay the cost of removing their offshore rigs from the ocean are expected to pass parliament this week, sparking an unlikely division between the federal government and the petroleum industry. Resources Minister Keith Pitt said the total industry bill for decommissioning oil and gas rigs would hit $60 billion and his reform is needed to prevent a repeat of the Northern Endeavour incident, in which the decommissioning cost for an aging production vessel ended up on the Commonwealth’s books. “I’ve been very clear with industry that we need to make sure who is responsible and who is paying [for decommissioning],” Mr Pitt said. Offshore petroleum companies sign binding decommissioning commitments to gain approval for their developments, but a loophole in the law allows them to pass on the liability if a production facility is sold before their statutory end-of-life. The small company that was funded by Woodside to take on the title for Northern Endeavour and operate its last years of production entered liquidation in February, after the industry regulator shut down production due to workforce safety concerns. Mr Pitt said at the time taxpayers would not foot the clean-up bill and he imposed an unpopular levy on the entire offshore petroleum industry of 48¢ a barrel, payable from July 1. The Offshore Petroleum and Greenhouse Gas Storage Amendment Bill includes a trailing liability provision that gives government call-back powers to force previous owners of an asset to pay for decommissioning if the current owner cannot

– as in the case of the Northern Endeavour. The peak industry lobby the Australian Petroleum Production and Exploration Association is opposed to trailing liabilities, arguing in consultation it would “potentially encourage the final titleholder ... to walk away from the property and reallocate decommissioning costs to former titleholders”. Companies should instead be required to prove financial capacity to pay the cost of decommissioning their offshore rigs, APPEA said. Mr Pitt ultimately rejected this proposal but agreed with another industry concern to limit trailing liabilities to transactions made from January this year. “The reform is not retrospective and we are striking the right balance,” he said, adding that the vast schedule of decommissioning work due by 2040 “will be $60 billion worth of work for Australia”. Labor Resources spokeswoman Madeleine King said Labor will support the “pivotal reform” but criticised the government’s “lackadaisical approach to decommissioning”. She said it had resulted in more than $200 million of taxpayer money being spent to keep the Northern Endeavour from becoming a marine hazard before the industry levy was imposed. “This is necessary reform to genuinely regulate the safe removal of all equipment, infrastructure and wells,” Ms King said. Wilderness Society policy and strategy manager Tim Beshara said the industry had “brought this on themselves” by failing to meet decommissioning responsibilities. “I don’t think there’s much that I’ve heard or seen from Keith Pitt that the Wilderness Society could support, but we support his bill to overhaul Australia’s offshore oil and gas decommissioning laws,” he said. Labor, the Greens and the crossbench may have the numbers to delay passage of the bill in the Senate but will face scrutiny due to broad support for the reform.

New Australian law makes offshore energy companies pay for cleanup Earlier this month, the minister told Australia's parliament that the cost of removing offshore rigs from the ocean would be approximately $43 billion over the next 30 years. Although offshore energy companies sign binding commitments to gain government approval at the start of production, gaps in the law have allowed them to pass liability to another company if the production facility is sold before their statutory end-of-life. Under the new Offshore Petroleum and Greenhouse Gas Storage Amendment Bill, the government gains callback powers to force previous owners of an asset to pay for decommissioning if the current owner cannot. The law also creates a trailing liability for the energy giants, which applies retrospectively from January 1, 2021.

The Australian parliament this week passed a law to force big oil and gas producers to pay for the cost of decommissioning offshore rigs, with Keith Pitt, the federal minister for Resources and Water, stating the law was to ensure taxpayers are not left to foot the bill.

“The trailing liability provisions will be an action of last resort when all other safeguards have been exhausted and will reduce the risk that the financial costs of decommissioning will be left to Australian taxpayers,” Minister Pitt said. “It also sets the expectation that sellers will undertake appropriate due diligence before selling assets, titles and infrastructure, so they can avoid being called back to decommission and remediate title areas.” The law is largely drawn from recommendations of Steve Walker, who last year was appointed by Pitt to look into circumstances leading up to the liquidation of Northern Oil and Gas Australia Ltd (NOGA). The company owned the Northern Endeavour FPSO moored in the Timor Sea, some 300 nm northwest of Darwin City. It is currently being decommissioned by the Australian government.

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Offshore Energy Services Dashboard July / August 2021 Offshore Energy Services Offshore Energy ServicesDashboard DashboardAug Aug//Sep Sep 2021 2021

available from available from

STATS & ANALYTICS PROVIDED BY

SubseaLogix SubseaLogix

Westwood Westwood GlobalEnergy Energy Global Group Group

SubseaLogix PlatformLogix SubseaLogix PlatformLogix

PlatformLogix PlatformLogix

OffshoreO&G O&GEPC EPCAwards Awards $billions Offshore 8080

Expected Expected Sanctioned Sanctioned

7070 6060

www.westwoodenergy.com

Field Development Update July saw continued positive momentum across the offshore O&G sector with EPC investment estimated at $4.6 billion, driven by SBM Offshore’s contract award from Petrobras for a 26.25-year "lease & operate" contract for the Almirante Tamandare FPSO unit to be deployed on the Buzios development offshore Brazil. Other major awards in July included TechnipFMC’s iEPCI contract from Tullow Oil for its Jubilee South East development offshore Ghana, whilst North Oil Company also awarded Vietnam’s PTSC the engineering, procurement, construction, installation and commissioning (EPCIC) for two wellhead platforms for its Al-Shaheen phase 3 project which is part of its wider Gallaf development offshore Qatar. During the period under review, Shell also sanctioned its long-awaited Whale development in the US Gulf of Mexico, however, subsea EPC contracts are yet to be officially awarded. A further $19.9 billion of EPC value is expected to be awarded over the balance of the year. Key projects to watch in 3Q 2021 include Siccar Point’s contentious Cambo (UK), Shell’s Crux offshore (Australia) and Beacon Offshore Energy’s Shenandoah development in the US Gulf of Mexico. Offshore Rig Update July offshore rig counts increased by seven units in total across the jackup, semisub, and drillship segments. Southeast Asia accounted for much of this month-on-month growth with three jackups and one drillship added from June levels. Monthly utilisation for both jackups and drillships continued their recovery with 69% and 58% utilisation respectively, while semisubs registered a decline of 2% from June levels to settle at 55%. Effective utilisation for the global jackup fleet edged closer to 80% in July, a level not seen since the onset of the 2020 pandemic.

50 50

19.9 19.9

40 40 30 30 20 20 10 10 0 0

73.5 73.5 42.5 42.5

31.1 31.1

39.0 39.0 14.3 14.3

2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Westwood’s 2021-22 outlook assumes a $60/bbl Brent oil price Westwood’s 2021-22 outlook assumes a $60/bbl Brent oil price

Subsea Tree Awards #XTs Subsea Tree Awards #XTs

2021

138

2021 2020

138

190

2020

30 7 Sanctioned

Firm Probable Sanctioned Possible Firm Probable Possible

190

FPS Throughput Additions by Year of Sanction

kpoepd FPS Throughput Additions by Year of Sanction

kpoepd 3000 2500 3000 2000 2500 1500 2000 1000

LNG Gas Liquids LNG

Gas Liquids

1500 500 1000 0

2018

500 0

2018

2019

2020

2021

2019

2020

2021

2022

Offshore O&G EPC Awards 2021-25 by E&P $billions to be awarded

Offshore Wind Update [Updated 19/8/2021 by MG]

Offshore O&G EPC Awards 2021-25 by E&P

No additional turbine orders have been placed in August thus far, with awards stagnating at 378 year-to-date. A further 1,452 turbines are expected to be awarded over the rest of 2021 and 2022, with key upcoming awards associated with the Dogger Bank C, Vineyard Wind 1 and Borkum Riffgrund 3 projects. Whilst turbine orders appear to have gone on a two-month hiatus, permitting as well as installation activity is seeing continued momentum.

$billions to be awarded

www.ogv.energy I September 2021

8.7

7.1

35.0

CNOOC CNOOC

TotalEnergies TotalEnergies

Others

9.9

9.1

Chevron Chevron

10.1

9.9

ExxonMobil ExxonMobil

11.0

9.9

Saudi Aramco Saudi Aramco

10.1

Qatar Qatar PetroleumPetroleum

16.9

11.0

Shell

16.9

Woodside Woodside PetroleumPetroleum

Equinor

18.5 Equinor

29.7

18.5

Shell

35.0

29.7

Petrobras Petrobras

Chinese Turbine OEM, MingYang, has now completed the delivery of ten MySE 3.0-135 turbines for the 30MW Italian Taranto offshore wind farm. Taken into conatext, this presents the first entry point for a Chinese turbine OEM into the European offshore wind market.

9.9

9.1

8.7

7.1

Others

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

Offshore Energy Services Dashboard July / August 2021 45 Westwood Westwood Global Energy Offshore Global Group Energy Offshore Energy Energy Services Services Dashboard Dashboard June June // July July 2021 2021 Group available from available from

RigLogix RigLogix

Month 1 vs vs July July 1) 1) Month on on Month Month Backlog Backlog (Aug (Aug 1

May May Rig Rig Counts Counts Semisubs Semisubs 21.3 21.3

US US GOM GOM

SE SE Asia Asia

July 1 July 1

30,719 30,719

41,890 41,890

Latin Latin Arab Arab Gulf Gulf America America

Global Global

NW NW Europe Europe

US US GOM GOM

0.1

May-21 May-21

-2.2 -0.8

Mar-21 Mar-21

Sep-20 Sep-20

Jul-20 Jul-20

2.2 2.2 May-20 May-20

0.9 0.9

Jan-20 Jan-20

-0.7 -0.7 NW NW Europe Europe

40,608 40,608

Regional Regional Month Month on on Month Month Rig Rig Counts Counts (August (August vs vs July) July)

Sep-19 Sep-19

0.7 0.7

July 1 July 1

211,439 211,439

Stacked Stacked

Nov-19 Nov-19

6.8 6.8

Available Available

Jul-19 Jul-19

85.00% 85.00% 80.00% 80.00% 75.00% 75.00% 70.00% 70.00% 3.4 3.4 65.00% 65.00% 60.00% 60.00%

August 1 August 1

29,015 29,015

55 53 55 53

16 16

Contracted Contracted

Global Global

95 Drillships Drillships

58 58

27 27

341 341

August 1 August 1

106.3

106.3 Semisubs Semisubs

Jan-21 Jan-21

54 54

19 19

495 Jackups Jackups

August 1 August 1

201,865 201,865

24 24

Mar-20 Mar-20

24 24

495

90 90

Drillships Drillships

Nov-20 Nov-20

Jackups Jackups 64 64

RigLogix RigLogix

0.6 0.6

-0.1 -0.3 SE SE Asia Asia

Latin Latin Arab Arab Gulf Gulf America America

Global Global

NW NW Europe Europe

US US GOM GOM

SE SE Asia Asia

Latin Latin America America

Arab Arab Gulf Gulf

Global Rig Utilisation

70%

80% 80%

65%

75% 75%

60%

Jul-19 Jul-19 Sep-19 Sep-19 Nov-19 Nov-19 Jan-20 Jan-20 Mar-20 Mar-20 May-20 May-20 Jul-20 Jul-20 Sep-20 Sep-20 Nov-20 Nov-20 Jan-21 Jan-21 Mar-21 Mar-21 May-21 May-21

65% 65%

45% 40%

Jul-19 Jul-19 Sep-19 Sep-19 Nov-19 Nov-19 Jan-20 Jan-20 Mar-20 Mar-20 May-20 May-20 Jul-20 Jul-20 Sep-20 Sep-20 Nov-20 Nov-20 Jan-21 Jan-21 Mar-21 Mar-21 May-21 May-21

55% 50%

70% 70%

60% 60%

Effective 80% 75% 70% 65% 60% 55% 50% 45% 40%

available from from available

Jul-19 Jul-19 Sep-19 Sep-19 Nov-19 Nov-19 Jan-20 Jan-20 Mar-20 Mar-20 May-20 May-20 Jul-20 Jul-20 Sep-20 Sep-20 Nov-20 Nov-20 Jan-21 Jan-21 Mar-21 Mar-21 May-21 May-21

Total 75%

85% 85%

WindLogix WindLogix

Offshore WTG WTG Awards Awards by by Status Status (exc. (exc. Mainland Mainland China) China) Offshore #WTGs #WTGs 1,200 1,200 1,000 1,000

General General Electric (GE) Electric (GE) 14% 14%

Expected Expected Awarded Awarded

800 800

Others Others 3% 3%

Awarded by by Awarded OEM OEM

600 600 Vestas Vestas 26% 26%

400 400 200 200 -

Goldwind Goldwind 4% 4%

2018 2018

2019 2019

2020 2020

2021 2021

2022 2022

Siemens Siemens Gamesa Gamesa 53% 53%

Asia Asia 26% 26%

Western Western Europe Europe 55% 55%

Expected by Expected by Reigion Reigion

North America North19% America 19%

LEGAL, FINANCE & ESG

CLIMATE CHANGE LITIGATION – Fixing the focus on current and future obligations

By Vanessa Castillo, Senior Solicitor, Brodies LLP

Recent legal challenges brought against the OGA are a reminder of the scrutiny that the oil and gas industry is coming under in respect of current obligations and decisions made in respect of energy transition.

In May, campaign group Paid to Pollute applied to the High Court for judicial review of the decision by the Oil & Gas Authority (OGA) and the Secretary of State for Business, Energy and Industrial Strategy (BEIS) to adopt the OGA Strategy, as well as challenging its legality. The claim was brought against the OGA and Business Secretary Kwasi Kwarteng, with backing from environmental groups including Greenpeace UK, Friends of the Earth Scotland, and Parents for Future.

The revised OGA Strategy The revised OGA Strategy came into force on 11 February 2021, and expanded on its original main objective. Now, in addition to the maximising of economic recovery, the OGA Strategy also requires action to achieve net-zero carbon by 2050. This includes, as part of the central obligation, the requirement to take necessary steps to assist the Secretary of State in meeting the net-zero target, including the reduction of greenhouse gas emissions from sources like flaring and venting, and encourages and affirms support for carbon capture and storage projects. The new OGA Strategy was supplemented by the revised Decommissioning Strategy, published by the OGA on 9 May 2021, which provides, among other things how decommissioning can deliver maritime restoration as part of the UK's energy transition to net-zero.

Challenge against OGA strategy Paid to Pollute allege that the OGA Strategy's purpose of maximising economic recovery of oil and gas is "irrational" and will encourage more oil and gas to be extracted, thus jeopardising the UK's climate targets and commitment to netzero emissions.

www.ogv.energy I September 2021

They allege that by not including the tax breaks available to the industry in the definition of "economic recoverability", the OGA Strategy fails to take account of the fact that the OGA itself is not maximising the revenue available from taxing the industry, which is not economically beneficial to the UK as a whole and is, therefore, unlawful. They argue that it is anticipated that the UK taxpayers will cover £18.3 billion of decommissioning costs. These costs will allegedly increase if more oil and gas is extracted in the UK. The group states that its goal is for the government to implement policies to instead invest in green industries.

OGA RECOMMENDS DISCLOSURE of key environmental metrics to bolster the sector’s already strong reporting

The OGA and BEIS have not publicly commented.

What next? The outcome of the review is yet to be published, but at the end of 2020, the High Court was also asked, in a separate legal challenge, to consider the OGA's role in issuing letters of comfort as part of acquisition transactions and whether the OGA was fully considering the financial implications for acquirers, against the burden of decommissioning costs. The claimant, Mr. Edward Thornton, argued that insufficient consideration was being given to ensuring the taxpayer was protected from the burden of decommissioning costs. The 2020 case was unsuccessful but that action, when considered alongside the current judicial review, highlights shifting social awareness and reaffirms the need for oil and gas companies to closely consider all their current obligations, alongside planning for the wider energy transition. The industry needs to be conscious that any action taken in respect of energy transition or as part of any plan for net-zero emissions, is being closely observed by activists who have shown they will resort to litigation if they deem such actions to be insufficient, contrary to law or non-transparent.

The growing awareness of climate change and the need to respond, the increase in shareholder resolutions on environmental policies, the recent IPCC report, and the extreme weather events occurring around the globe, have placed companies under close scrutiny to report on how they are meeting their environmental, social and governance responsibilities. The oil and gas industry’s social licence to operate has come under threat as the sector’s environmental credentials are examined and the industry needs to demonstrate how it will support the transition to net-zero by 2050 and beyond. As a result of this increasing focus on the environment and sustainability, financial institutions are increasingly aware of the impact a business has on people and the planet, and the Oil and Gas Authority (OGA) is working with industry and the investor community to promote the importance of ESG and influence best practice. Investors can benefit from investing in businesses that report well on ESG, as clear reporting provides both resilience to, and oversight of, the changes which may be required in the event of stricter disclosure practices being enforced by governments. Many G20 nations have already stated they will make climate-related disclosures

FIT FOR THE FUTURE?

It’s time the oil and gas industry had a tax health check By Jane O’Berg, Johnston Carmichael’s director of Global Mobility

To say that the oil and gas industry has had a lot to contend with over the past year would be putting it lightly.

mandatory, in line with the framework and recommendations of the Taskforce on Climate-Related Financial Disclosures (TCFD), and leaders at the UK-hosted June G7 summit said they too “supported moving towards mandatory climaterelated financial disclosures”. The UK has announced that TCFD-aligned reporting will be mandatory across the economy by 2025, and has published a set of “Sustainability Disclosure Requirements” which will be put in place as part of its role in providing green finance leadership. During its regular investor and industry engagement, the OGA queries approaches to platform electrification, carbon storage and internal carbon prices, as well as seeking to understand the views of lending banks. ESG will continue to be a core consideration in its engagement. During such engagement, it was apparent that common reporting standards were needed, so we set up an ESG Taskforce comprised of representatives from industry and the investor community. The Taskforce focused on the ‘E’ of ESG and looked at key environmental metrics to improve comparability of environmental performance and to ensure that our industry continues to be supported by the investment community. The Taskforce recommended a set of qualitative and quantitative climate-related metrics which we expect industry to report against, over the course of Q1 2022. Medium to longer term recommendations, such as linking senior management KPIs to emissions targets, will be rolled out thereafter. Following successful communication of, and response to, the recommendations, the Taskforce will reconvene, review work so far on environmental disclosure and consider where next to focus its efforts, such as evaluation of the industry’s performance on the often-overlooked social aspect of ESG.

With pressure mounting to align with the Paris climate agreement and unlock an affordable net-zero energy future, coupled with the logistical chaos and unpredictable trading conditions caused by coronavirus, there’s been a lot on the minds of CEOs looking to ensure their people and companies are fit for the future. Although the sector is already balancing a number of priorities, one it can’t afford to overlook is tax compliance - particularly as the industry continues to deal with a distributed workforce following the pandemic and navigates new commuting patterns for employees against the backdrop of new UK immigration rules. Back in March 2020, there was an understandable rise in requests for remote working, especially from non-UK nationals living and working in the UK for UK-based companies who wanted to go home to be with their families. Employers had staff dispersed in different countries for longer periods than originally anticipated, creating unexpected tax implications. The oil and gas sector is one example of an industry still dealing with this hangover. Having employees stranded overseas not only causes considerable welfare concerns, but from a tax perspective it can also create an element of risk and exposure for both the employer and the displaced individual. Issues may include the requirement for a new payroll on the employer’s behalf, the employee creating a tax liability for themselves and questions around the individual’s tax returns and social security position. Many of the industry’s contractors work overseas which has an impact on their individual UK income tax liability. Social security has always been a complex issue for offshore workers, with a number of factors having to be taken into consideration to determine where contributions are paid. With the events of the last 18 months, which may have seen employees stranded out of the UK or vice versa, the position for both employee and employer could have changed, impacting both parties in a variety of ways, including potentially increasing costs for the employer.

Due to the complex social security rules offshore workers face, it’s good practice for the industry to regularly review the position of its employee population to check employer and employee contributions are being paid in the correct jurisdiction. We are seeing an increasing number of queries from individuals who have made Class 1 UK National Insurance Contributions (NICs) but who now believe they are due a refund due to the length of time they have been out of the UK and the country in which they have been working. After a review, the employee may well be due a rebate, but if they’re not making NICs in the UK, do they have a liability arising in the overseas location where they’re currently based and if so, how is this going to be settled? Equally the same considerations have to be given to the employer contributions. Have they been paid in the correct location and if not, how can this be rectified and contributions made in the correct jurisdiction going forward?. We would always recommend the employer and employee positions are examined together to ensure a consistent approach is taken and obligations for both parties are fulfilled. To navigate further avoidable costs, oil and gas employers need to take stock of the new UK immigration rules post-Brexit. A recent survey from Sterling found only 23% of UK businesses were comfortable with the new regulations, but with travel restrictions between the UK and Europe set to ease and regular commuting between platforms and company offices on the horizon, the oil and gas industry needs to ensure it keeps abreast of the changes associated with work travel. There are more legalities with potentially different documentation being required from an immigration perspective and companies should also be aware of the EU Posted Worker Directive. The latest revision to the directive had to be transposed into national laws by last July, and as that was the only mandate, there are variations on how each EU country has adopted the rules and processes. Some countries have opted for a ‘belt and braces’ approach, applying the legislation to all workers entering their country no matter how short a period of time. While the energy transition must remain the priority, the industry needs to ensure it has robust processes in place for its globally mobile employees to monitor and manage any compliance, financial and reputational risks and exposures resulting from their travel - particularly as the sector is in focus now more than ever.

5th - 6th October 2021

1ST HOIS WORLD CONFERENCE FOR DIGITALISATION OF INSPECTION AND ASSET INTEGRITY IN THE ENERGY INDUSTRY:

A 3-D VIRTUAL EVENT Join us on 5th and 6th of October 2021 for the 3D virtual 1st HOIS world conference that aims to explore the digitalisation of inspection and integrity within the Energy Industry. This 3D Virtual event will allow exhibitors to simulate all of the benefits of a physical exhibition and to enjoy all of the branding recognition and networking capability, without any of the downside of travel and at a fraction of the cost. You will be able to personalise your own avatars and engage with delegates using video conferencing and instant messaging technology and discuss the benefits of your products and services in real time! Your virtual pavilion can be used to communicate your company’s value proposition to senior energy professionals using the latest high-resolution imagery and video technology and you can enhance your package by ensuring your branding is also available on other key physical spaces in the reception/ networking area and conference hall to maximise your exposure.

We aim to deliver an inspiring 3D virtual event that provides both exhibitors and delegates with an enhanced engagement experience! You can also expect participation from some of the largest operators and supply chain companies globally, and technical presentations by some of the leading global specialists.

WWW.OGV.ENERGY/ESR-TECH

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Though they cannot travel does not stop ourselves from working within those country borders even though we cannot cross them regionally yet. The separate teams within each country we are working in need managerial support and takes up most of the day. Meeting new potential clients has been tough within the UK but online networking events, various business platforms and social networking has been the go-to for most companies. We can only hope more live and in person events will come on tap soon.

What are main barriers to international growth for ambitious companies and what advice do you have for them?

MARK SKINNER Managing Director, Scotsbridge

Background: Mark Skinner Managing Director of

Scotsbridge started the business in late 2017. Having its offices in Singapore & Aberdeen, Scotsbridge assist UK companies develop market entry strategies regards the South East Asia region, focusing on Oil & Gas, renewables and other manufacturing and service sectors.

How did you get into the Energy sector and how long have you been working in it? My career within the energy sector started in 1982 when I worked as a labourer / machinist for a well- known pipe, flange and fitting company. I must have shown some aptitude and after a couple of years I progressed to the office to handle sales and technical support. Those were very informative years which allowed me to then advance my career into sales and business development with a UK valve producer. A cyclical boom and bust of the industry made it all the more exciting to succeed and push oneself further. I then returned to the company I started my Oil & Gas career with. In 1992 through to 2017. As Sales Manager, Director, Managing Director and in 1997 co-owner of the business via management buy-out.

What does your job involve on an average day? Due to the time zones in South East Asia my day can often start from 0600 regards calls and video conference with our Singaporean office and delivery partners in Malaysia, Vietnam, Thailand & Indonesia regards status on new opportunities and development of ongoing projects. The pandemic has been difficult for us initially but once we came out of the initial shock of the implications we devised strategies that could ensure we can still operate on behalf of our clients. We enjoy the interaction with our clients when they visit the region and we can introduce them to potential in country partners and providers. That is what we missed most these past 18 months.

www.ogv.energy I September 2021

It’s a cliché I know but by failing to prepare you should then prepare to fail. Companies need to take more time identifying why any specific international market would want to buy the product or service they are offering. The USP I suppose but I prefer the phrase ‘uncommon offering’ which is more defined when we dig deeper. International growth requires a great deal of resource, including commitment and patience. Resource does not just mean cash. Many managers, directors and owners can be TIME POOR. Can you support an international initiative with the staff you have? Are some of those staff key to domestic opportunities thus the ebb and flow can often dilute the initial international efforts gained? Most international growth opportunities will need to have an in-country partner. The selection process for this needs to be pin point accurate so to eliminate any false starts and potentially costly legal wrangling. Best to spend the time upfront regards appropriate due diligence and fresh in-country market intelligence.

What has been the highlight of your career so far? Some of the large project wins for piping and valve packages were immense during the 2000’s. My team at John Bell Pipeline surpassed all expectations and were at that time part of the largest UK independent company within its field. Being able to assist with the development and opportunities for my colleagues then was really the highlight. Seeing them grow in confidence and ability was the real game changer for me.

What ambitions have you still got to fulfil professionally in your career? My focus is for Scotsbridge to assist as many companies as possible so they can ensure a successful outcome of sustained and regional growth within South East Asia that is one of the most exciting and diverse global regions. Personally, I’m not adverse to a bit of training and knowledge transfer. This last year I have been studying with Entrepreneurial Scotland & Babson Business School, Boston USA. I would like to think I may expand into other courses and new learning over the next few years.

Who has been the most influential person in your life professionally? It would be unfair to mention only one. The person that really saw something in me was Brian Reidy. Brian sadly passed away to soon but he managed me through my informative business years and installed values and discipline that I still hold dear to this day. I would like to mention also Colin Grant, Arthur Watt and John Bell who gave me opportunities and encouragement. Also, my friend and business partner Brian Thomson who is a great leveller offering advice and wisdom.

Given the experience you have now, what advice would you give a graduate just starting their career in the Energy sector? Maximise every opportunity that comes your way and learn as much from the people you are working with as possible. That includes life skills too. Be a better listener. Be positive about change and transition as the energy sector is always evolving. My advice relates to any young adult regardless of qualifications starting a career within the energy sector. Be a participant, a change maker not a spectator.

COMMUNITY PARTNER

Dons announce multi-year partnership with Gary Walker Wealth Management

Gary Walker Wealth Management (GWWM), which helps plan financially secure futures, has agreed a multi-year partnership with Aberdeen Football Club to become the Club’s first Official Financial Planning Partner. An ardent supporter of the Dons over a number of years, GWWM will work collaboratively with the Club to provide expert financial guidance to staff, players and the community in a partnership which will showcase the importance of planning for the future to achieve financial success. Managing Director Gary Walker, who specialises in the personalised provision of financial advice to individuals and businesses, said:

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“AFC and Gary Walker Wealth Management hold similar corporate values that are the foundation of this partnership. How the Club supported the local community through the pandemic and the exciting plans they are now putting in place for the future really marries up with how we support local businesses and individuals in our community to plan for a successful future.” “After such a difficult period during Covid I wanted to step up my support for the Club to help them fulfil their ambitions. We will also be working closely with Aberdeen FC Community Trust to deliver financial education in their partner schools. We believe this type of learning is crucial for young people in their pursuit of a bright and successful future.”

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AFC Commercial Director, Rob Wicks, is buoyed to see a valued commercial partner increase its support of the Club. “Gary has been a long-time supporter over many years so to formalise his association with AFC into an official partnership was the natural evolution of our relationship.

“We know how important future planning is to achieve success and having GWWM on board as a key partner to support us will only strengthen our ambitions to grow the Club on and off the pitch.”

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OGV Energy - Issue 48 - September 2021 - International Growth & Diversification

Articles inside

People in Energy - Mark Skinner

FIT FOR THE FUTURE?

OGA Recommends Disclosure

Climate Change Litigation - Fixing the Focus on Current and Future Obligations

RENEWABLES

Reliable subsea controls: Key to Supporting Performance and Profits

Get Onboard with Solab!

Powerful Team Skills and Communication Driving Success at Re-Gen Robotics

Repositioning for Growth

Could QHSE Aberdeen Help Your Business Achieve Global Growth?

Namaka Compliance's International Growth Strategy

Intrinsix Leads the Way to International Growth

Diversification Tops Charts as Key Growth Strategy

Scottish Firm Continues Growth In Mexico

The Energy Sector Seeks International Growth and Diversification

Middle East Energy Review

US Energy Review

Europe Energy Review

UK North Sea Energy Review

Are you and your leaders truly equipped to thrive through the energy transition?

AN INTERNATIONAL MINDSET