OGV Magazine - Issue 75 - The Risk & Safety Management Issue by OGV Energy

DECEMBER '23 - ISSUE 75

RISK & SAFETY MANAGEMENT

GLOBAL ENERGY NEWS WORLD PROJECTS RISK & SAFETY MANAGEMENT OUR DIGITAL INDUSTRY RENEWABLES CONTRACT AWARDS LEGAL DECOMMISSIONING STATS & ANALYTICS EVENTS

ENGINEERED TO TRUST READ ON PAGE 4 u

risk & safety management In this issue...

BRIMMOND

P.04

CEGAL

P.26

ROTEX AUTOMATION

P.34

ENERGY REVIEWS

P.10

ENERQUIP

P.29

SWORD GROUP

P.35

RISK & SAFETY MANAGEMENT P.22

INTERVENTION RENTALS

P.31

ASCO

P.36

VIPER INNOVATIONS

QHSE ABERDEEN

P.33

BRODIES

P.41

P.25

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CONTENTS

@OGVENERGY

OGV COMMUNITY NEWS P.08 GLOBAL ENERGY NEWS P.10 WORLD PROJECTS MAP P.20 4

RISK & SAFETY MANAGEMENT P.22 OUR DIGITAL INDUSTRY P.35 RENEWABLES P.36

CONTRACT AWARDS P.38

LEGAL P.41 DECOMMISSIONING P.42 STATS & ANALYTICS P.44 EVENTS P.46

A WORD FROM OUR EDITOR Welcome to the December edition of ‘OGV Energy Magazine’ where we will be exploring the theme of ‘Risk & Safety Management’. A big thank you to our front cover partner Brimmond Group and you can read all about their transformative year on pages 4-5 . We also have contributions from Viper Innovations, Re-Gen Robotics, Draegar, Rotex, QHSE Aberdeen, Cegal, Intervention Rentals and very own digital business The OGV Studio. The rest of this month’s magazine as always provides you with a review of the Energy sector in the North Sea, Europe, Middle East, the US and Australasia along with industry analysis and project updates from Westwood Global Energy Group, the EIC and Renewables UK. Warm regards Dan Hyland Director

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COVER FEATURE

Growth mindset:

Brimmond ends the year on a high • £10 million turnover • Team growth with ongoing recruitment • New ‘fab shop’ opens to support energy transition • Pioneering NetJetTM pumps launched

It’s fair to say that 2023 has been an exceptional year for Aberdeenshire based engineering business, Brimmond. Brimmond, which specialises in the design, manufacture, rental and repair of lifting, mechanical and hydraulic equipment for industry, has experienced soaring demand across a range of sectors over the past year. Demand that has driven their best financial year yet: this year’s forecasted £10 million turnover is a 50% increase from the previous year.

treat every bit of equipment like it’s their own. Ensuring that no corner is cut and the equipment is delivered to standard in safety and quality, this in turn reflects on the reliability of the equipment and this is the crucial reason for our ongoing customer loyalty, and also our growing footprint across emerging sectors, markets and geographies.”

In the energy sector, projects have included the design and manufacture of four 55kW HPUs for export to the Middle East and two Constant Tension HPUs for export to West Africa.

In response to this continued uplift in demand, the Brimmond team has increased by 42% over the past year. The current headcount of 46 members of staff is set to continue growing into 2024, with Brimmond recruiting for an additional 6 workshop-based roles at the moment.

In their largest manufacturing project to date in the offshore wind sector, the firm designed, manufactured and delivered a 1.8 Mega Watt seawater jetting package consisting of:

• Two 660kW Multi-stage Centrifugal Pump Units • Two Umbilical Reelers with integrated 45kW Electric Hydraulic Power Units • Two 250kW Submersible Pumps • Filter and Valve Skids • A Launch and Recovery System The system is to be installed for the full duration of the campaign and will assist with the installation of wind turbine foundations off the coast of Northern France. .

Team talk People are at the heart of Brimmond. Regardless of department, specialism or career stage, each and every team member is encouraged and supported in a culture of mutual trust and shared learning. In fact, a recent survey revealed that 97% of staff members agree that the Brimmond culture makes them feel supported to voice their opinions and ideas. Managing Director of Brimmond, Tom Murdoch, said: “Brimmond’s success is testament to our incredible team. We have managed to grow our headcount significantly whilst retaining our strong culture for always putting quality first. Whether its newbuild equipment or maintaining hire equipment, our workshop and engineering teams

www.ogv.energy I November 2023

One of Brimmond’s longest serving members of staff recently celebrated 15 years with the firm. Stevie Sharp of Inverurie, initially joined to provide a few days welding cover over Christmas and 15 years later is an integral part of the team as a Lead Projects Technician.

Fab shop opens its doors 2023 also saw the launch of Brimmond’s brand new fabrication and welding workshop, supported by Energy Transition Zone Ltd. This £250K investment is testament to the company’s dedication to high quality manufacturing and repair services, as well as their energy transition journey. The purpose built 1300sqft 'fab shop' provides:  Increased useable floor space in the main workshop, making larger offshore wind equipment projects safer and more accessible.  A separate facility for welding helps maintain a clean working environment in the main workshop - critical for the more complex equipment supplied into low carbon markets, particularly offshore wind.  The opportunity to safely and efficiently manufacture Brimmond’s largest project to date - a 1.8mW seawater jetting spread to assist with turbine foundation installation.

NetJetTM: the UK’s first turnkey aquaculture net cleaning tech 2023 was also the year in which Brimmond became the first company in the UK to offer a full 360o manufacture, rental and support package for high-pressure net cleaning pumps for the offshore aquaculture sector.

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The firm’s engineering team designed, specified and manufactured the pump units, following the identification of a gap in the flourishing aquaculture market for an affordable, yet high quality rental option for net cleaning pumps.

A weighty issue: resolving the decom crane challenge A £750K investment in Brimmond’s rental fleet of high-capacity marine cranes, as well as core products such as hydraulic power units and umbilical reelers, has seen the firm working on an increasing number of decommissioning projects.

UK’s longest reach marine knuckle boom cranes Having identified that deck coverage on platforms and vessels is integral to supporting decommissioning projects, Brimmond recently invested in two topquality marine cranes with 6 extensions and an impressive 27 metres outreach: the longest reach marine knuckle boom cranes available for hire in the UK. These cranes, which are currently available to hire have been specifically designed to cover a wide range of decommissioning, marine and aquaculture lifting projects.

Plug and abandonment Brimmond’s marine crane fleet reduces the reliance on aging and de-rated platform cranes, speeding up the progress of lifting activities and offering significant cost savings over a full P&A Campaign. Recent projects in the UKCS saw Brimmond resolve complex installation challenges on two aging assets by supplying their 175txm marine crane packages. Provided in modules that remain within the platform crane’s lifting capacity, they were fully assembled in-situ by Brimmond’s experienced team of offshore technicians.

Mattress recovery Brimmond also provides compact knuckle boom marine crane packages with long outreach (typically 21m) that have deck coverage for stacking mattresses, while allowing the existing, larger vessel cranes to focus on subsea lifts. On several projects this enabled the operations to run safely, efficiently, and in a shorter timeframe. Typically the crane radio remote control allows the operator to get a better line of sight, resulting in the stacks being 20% higher on average – therefore reducing port visits and once again offering significant cost savings.

Fit for Renewables Recently, Brimmond was granted ORE Catapult’s Fit4Offshore Renewables (F4OR) accreditation. Brimmond’s senior leadership team liaised extensively with ORE Catapult – a leading innovation centre for offshore renewable energy - to show that their systems, processes and knowledge position them to do business in the offshore renewables sector. If 2023 is anything to go by, 2024 should be a stratospheric year for #teamBrimmond! 

For more information visit www.brimmond.com +44 (0) 1467 633805 • info@brimmond.com

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COMMUNITY NEWS

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AREG appoints new team and opens premises in Aberdeen’s Energy Transition Zone Aberdeen Renewable Energy Group (AREG) has welcomed four new members of staff and moved into premises within the Energy Transition Zone (ETZ). Following the appointment of five new board members in 2022, and to meet the demand for its membership services, the not-for-profit organisation has expanded its core team to include an operations manager, a business development executive, and two administrators. Shona Teale, AREG’s newly appointed operations manager, has spent her career working within the energy sector. Most recently she was responsible for managing projects within the energy transition team at OPITO, where she had a focus on the North Sea Transition Deal and working towards safeguarding the future of the industry.

Rovco successfully completes fasttrack survey work with Flotation Energy and Vårgrønn for the Cenos floating offshore windfarm Rovco has successfully completed all survey work on behalf of Flotation Energy and Vårgrønn for the planned Cenos floating offshore windfarm located in the Central North Sea, 200 kilometres off the coast of North-east Scotland. The high-technology offshore wind business was contracted to conduct a geo-environmental survey at the site, and area covering approximately 333km2. Craig Davis, Director of Marine Site Characterisation for Rovco, said: “The work was safely and successfully completed by our newly established site characterisation division, using our multipurpose, custom-reconfigured DP2 survey vessel, the Glomar Supporter.

www.ogv.energy I November 2023

Verlume - Delivering on company mission with significant growth in 2023

Sustained growth prompts a move to a new home in Aberdeen’s Energy Hub for Cegal

Verlume, a specialist in clean energy system integration, intelligent energy management and energy storage, is fulfilling its mission to deliver clean energy to challenging locations and make things possible today that were impossible yesterday. With an increasing headcount and sales growth in 2023 across several markets including offshore wind, subsea monitoring, and offshore charging, the company has increased its orders booked tenfold year on year and is on target to deliver a 400% increase in revenue for the financial year. Following recent successful demonstrations of the company’s technology and securing significant commercial sales, the Verlume team is growing to further deliver on its mission. Verlume’s highly skilled team now has 30 dynamic professionals from a range of technical backgrounds from electrical, electronic, software and mechanical engineering to wider business functions such as project management and HR. There are 7 roles currently open within the business.

Cegal, a leading global provider of cloud services, IT consulting and software solutions for the energy industry, is delighted to announce a significant milestone in its move to a spacious, modern office premises within Aberdeen's award-winning Prime Four Business Park.

OEG to acquire Bluestream Offshore OEG Energy Group, a leading offshore solutions business, has signed a Sale and Purchase Agreement ('SPA') to acquire Bluestream Offshore a specialist in subsea and topside services based in The Netherlands for an undisclosed consideration. Bluestream, headquartered in Den Helder in The Netherlands is an offshore contractor providing specialist technical services above and below the waterline to a roster of blue-chip clients within the energy sectors. Bluestream has a turnover in excess of €55 million executed through an employee base of c55 people and more than 300 offshore subsea and topside specialists. They are highly skilled in surface supplied diving, Remotely Operated Vehicles (ROVs), working at height, rope access and Unmanned Aerial Vehicles (UAV) providing clients with tailored solutions during the installation, maintenance and decommissioning of their offshore assets.

This strategic relocation comes as a result of the company's sustained growth in the UK – achieving 23% revenue growth in 2022 coupled with abovetarget EBITDA earnings – reflecting their ongoing commitment to delivering top-tier services and technology solutions for their client base in the UK, and globally. "We are thrilled to announce our move to a larger office in Prime Four Business Park," said Mitch Sutherland, Managing Director at Cegal. "This expansion underscores our relentless focus on delivering world class service for our industry, and our subsequent growth within the UK market."

Ashtead Technology acquires ACE Winches International subsea equipment rental and solutions specialist Ashtead Technology has further expanded its mechanical solutions service offering with the acquisition of ACE Winches. Established in 1992, ACE Winches is a marketleader in the design, manufacture and hire of lifting, pulling and deployment solutions. The company’s core offering supports the installation, inspection, maintenance & repair and decommissioning of offshore energy infrastructure which is highly complementary to Ashtead Technology’s existing equipment and services portfolio. ACE Winches is Ashtead Technology’s eighth acquisition in the last six years and follows the Group’s acquisitions of WeSubsea and Hiretech, in 2022. The latest deal further strengthens Ashtead Technology’s product and service offering across both oil & gas and offshore wind markets.

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Sea Energy Review By Tsvetana Paraskova

The licensing policy for oil and gas exploration areas, expectations on well decommissioning and carbon storage, as well as field development updates featured in the UK North Sea oil and gas industry in the past weeks.

The UK government continued with moves under its pragmatic and realistic approach to the country’s energy transition by confirming new licensing opportunities for oil and gas exploration and production in the North Sea. The government will mandate annual oil and gas licensing in the UK North Sea in a bid to boost energy security and cut dependence on imports of fossil fuels, the UK said. Legislation will require the North Sea Transition Authority (NSTA) to invite applications for new production license on an annual basis, providing certainty and confidence to investors and industry. Each annual licensing round will only take place if key tests are met that support the transition to net zero. The first test is that the UK must be projected to import more oil and gas from other countries than it produces at home. The second is that the carbon

www.ogv.energy I November 2023

emissions associated with the production of UK gas are lower than the equivalent emissions from imported liquefied natural gas, the government said. If both these tests are met, the NSTA will be required to invite applications for new licences annually. “Domestic energy will play a crucial role in the transition to net zero, supporting jobs and economic growth, while also protecting us from the volatility of international markets and diversifying our energy sources,” Prime Minister Rishi Sunak said.

“Ensuring that the UK has broad options for energy security is at the heart of our work and these licences were awarded in the expectation that the licensees will get down to work immediately,” Stuart Payne, NSTA Chief Executive, said. “The NSTA will work with the licensees to make sure that where production can be achieved it happens as quickly as possible.” Energy Security Secretary Claire Coutinho commented,

“These new licences are a welcome boost for the UK industry, which already supports around 200,000 jobs and contributes £16 billion to the economy each year – while “The clarity and certainty that our new advancing our transition to lowlegislation will provide will help get carbon technologies, on which our the country on the right path for future prosperity depends.” “The clarity and the future.” Offshore Energies UK (OEUK) certainty that our David Whitehouse, CEO of welcomed the award of new new legislation will the leading industry body oil and gas licences, saying Offshore Energies UK, said: provide will help get the that it would strengthen homegrown energy security country on the right “The UK needs the churn as the sector continues its path for the future.” of new licences to manage expansion in wind, hydrogen, production decline in line with and carbon capture and storage. our maturing basin. A predictable “The reality of the energy transition is licencing process with transparent that we need both oil and gas and renewables checks will support the highly skilled people in an integrated system to protect the working in the sector, while ensuring the UK’s energy needs over the coming years,” granting of new licences is compatible with Offshore Energies UK Chief Executive David energy security and net zero.” Whitehouse commented. The NSTA is offering 27 new licences in areas “Energy security is national security. We need prioritised because they have the potential to pragmatic policy and political consensus if we go into production more quickly than others, are to realise £200billon potential company the regulator said. investment in UK wind, hydrogen and carbon capture, and oil and gas production over this These licences in the Central and Northern decade, with all the jobs and work for our North Sea, and West of Shetland were supply chains this will bring.” awarded first to let operators press ahead In early November, Pauline Innes, Director of with their plans to explore and develop oil and Supply Chain and Decommissioning at the gas resources. In recent years, the average NSTA, wrote a letter to licensees reminding time from licence award to production is them of their obligation to decommission around five years. wells in a timely manner. Oil and gas currently contribute around three “Currently compliance with guidance is patchy quarters of the UK’s domestic energy needs and the NSTA is concerned at the number of and official forecasts show that, in the energy deferrals for well decommissioning activities transition, they will continue to play a role in that are being sought. While exceptional the energy mix for decades to come. circumstances may arise to justify a deferment

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application, we do not normally expect to receive such requests,” the regulator said. “Failure to meet a licence requirement in relation to well decommissioning may result in the matter being passed to the NSTA’s Disputes and Sanctions team.” The NSTA have also updated the guidance on applications for a Carbon Storage Permit. The updated guidance is intended to assist those involved in the process and content of an application for a Carbon Storage Permit which, if granted, allows the injection of CO2 into a suitable underground geological formation in the UKCS, subject to the terms of the Carbon Storage Permit. In company news, bp said in early November it had successfully started production from the Seagull oil and gas field in the UK North Sea, boosting energy supplies, supporting the supply chain and jobs, and underpinning continued production from an offshore facility that has been operating for 25 years. Seagull has been developed by Neptune Energy as a subsea tieback to the bp-operated central processing facility (CPF) of the Eastern Trough Area Project (ETAP) in the central North Sea, around 140 miles east of Aberdeen. The new field is expected to produce around 50,000 barrels of oil equivalent gross per day at peak production. “The start-up of Seagull is a fantastic milestone that demonstrates how bp is investing in today’s energy system and, at the same time, investing in the energy transition,” said Doris Reiter, senior vice president, bp North Sea. Neptune’s UK Country Director, Alan Muirhead, said, “From the beginning, the partners have taken an innovative approach to ensure we can collectively maximise the recovery of domestic energy resources while extending the life of existing subsea infrastructure to reduce development costs.” Ithaca Energy has announced the successful completion of its acquisition of the remaining 40-percent stake in the Fotla Discovery and three exploration licences from Spirit Energy. The acquisition brings Ithaca’s working interest in the Fotla Discovery to 100 percent. Development plans are currently being evaluated for Fotla, which was discovered in August 2021. First production from the discovery is targeted in 2026. The conceptual field development plan consists of a subsea tieback to existing infrastructure, Ithaca Energy said. United Oil & Gas PLC said it would terminate the Asset Purchase Agreement with Quattro Energy Limited under which the parties had agreed to the conditional sale by United to Quattro of the UK Central North Sea Licence P2519 containing the Maria discovery in Block 15/18. “Notwithstanding the prospectivity of this licence, against the

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backdrop of the current regulatory and fiscal challenges impacting the UK North Sea undermining investor confidence in the progression of potential developments in this sector, Quattro have been unable to raise the funds to complete the transaction,” United Oil & Gas said. Serica Energy plc will carry out studies to determine the feasibility of re-developing the Kyle field by means of a subsea tie-back to the Triton FPSO vessel via the Bittern field facilities during an initial two-year licence period, after Serica was awarded the Block 29/2a containing the field in the latest UKCS Offshore Licensing Round. Serica’s internal preliminary mid-case estimate of recoverable resources from the redeveloped field is about 9 million barrels of oil. Well decommissioning specialists Well-Safe Solutions have signed an agreement with Spirit Energy to add a well from the Appleton field to the existing scope of the Well-Safe Defender semisubmersible rig. This project will add approximately one month of work to the backlog of the Well-Safe Defender, which mobilised in March 2023 to plug and abandon 14 wells on the UK continental shelf for Spirit Energy. “We are proud to continue our relationship with Spirit Energy and look forward to continuing our worldclass decommissioning operations later this year,” Chris Hay, Director of Strategy and Commercial at Well-Safe Solutions, said. Jersey Oil & Gas said that the owners of the Buchan field licences, JOG and NEO Energy, had executed agreements to acquire the Western Isles floating production, storage and offloading (FPSO) vessel. The FPSO will be used as the processing facility for the planned redevelopment of the Buchan field. Work is progressing at pace on Front-End Engineering and Design (FEED) activities in order to facilitate Field Development Plan (FDP) approval in 2024, Jersey Oil & Gas said. “Re-using existing high-quality infrastructure and modifying it to be electrification-ready is exactly in line with our stated low carbon strategy and the net zero related objectives of the industry,” Andrew Benitz, CEO of Jersey Oil & Gas, said. “The vessel is the cornerstone to completing the engineering work required to facilitate FDP approval for the Buchan redevelopment next year.” 

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Oseberg C; Credit: Øyvind Hagen/Equinor

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Europe Energy Review

By Tsvetana Paraskova

Oil & Gas

New oil and gas discoveries offshore Norway, the UK’s renewable investment pledges and new auction price policies, Norway’s first offshore wind tender, and company plans for carbon capture, electrolysers, and battery storage dominated headlines in Europe’s energy industry in the past month.

www.ogv.energy I November 2023

Equinor has discovered oil and gas in an exploration well located about four kilometres west of the Oseberg field in the North Sea, the Norwegian Petroleum Directorate said in early November. Discoveries were made in two different formations and they represent important additional resources for Oseberg. Equinor and its partners will continue to work to improve understanding of the discovery and to identify production solutions for the oil and the gas, the Norwegian regulator said. Equinor also announced a gas discovery by the Gina Krog field in the North Sea. The discovery is small, but gas production can start as early as 2023. The discovery is considered commercially viable, partly because it can make use of existing infrastructure by the Gina Krog platform. The well has been drilled as a development well with an exploration target, and the plan is to put the well into production during the fourth quarter of 2023, Equinor said. The Norwegian energy major has signed a new supply agreement for natural gas with Germany’s energy company RWE for between 10 and 15 terrawatt hours (equivalent to around 1 – 1.5 billion cubic metres) of natural gas per year from now until 2028. Odfjell Drilling said in mid-November that Equinor had exercised options for seven wells to extend the use of the Deepsea Aberdeen on the Breidablikk field. The exercised options are planned to start in early 2025 in direct

continuation of the current firm period and extend the firm backlog on the Deepsea Aberdeen to the end of Q4 2025. In addition to the exercised wells, the contract now includes further optional periods which, if exercised, could keep the Deepsea Aberdeen contracted to 2029. Such optional periods consist of six optional wells followed by three further optional periods of eight wells each, or approximately three times one-year.

Low-Carbon Energy The UK will seek to attract a record level of investment in renewable energy, King Charles said in his first King’s Speech in early November. “Legislation will be introduced to strengthen the United Kingdom’s energy security and reduce reliance on volatile international energy markets and hostile foreign regimes. This Bill will support the future licensing of new oil and gas fields, helping the country to transition to net zero by 2050 without adding undue burdens on households,” the King said. “Alongside this, my Ministers will seek to attract record levels of investment in renewable energy sources and reform grid connections, building on the United Kingdom’s track-record of decarbonising faster than other G7 economies,” King Charles added. In the middle of November, the UK government increased the maximum price for offshore wind projects in its flagship renewables scheme, aiming to boost the sector which has seen setbacks this year amid soaring costs and low auction prices.

EUROPE ENERGY REVIEW Following an extensive review of the latest evidence, including the impact of global events on supply chains, the government has raised the maximum price offshore wind and other renewables projects can receive in the next Contracts for Difference (CfD) auction to ensure it is performing effectively, the government said. The maximum strike price available for offshore wind for the CfD round next year has been increased by 66%, from £44/MWh to £73/MWh, and by 52% for floating offshore wind projects, from £116/MWh to £176/MWh. The government is also increasing maximum bid prices for other technologies, offering certainty for developers. The maximum bid price for geothermal projects was raised by 32% to £157/MWh, for solar projects by 30% to £61/MWh, and for tidal energy projects by 29% to £261/MWh. “Industry has repeatedly warned of the cost pressures facing our industry so we’re pleased the UK government has responded by delivering strike prices which should go a long way to restoring investor confidence in the Contracts for Difference scheme as a viable route to market for offshore wind,” said Claire Mack, Chief Executive of Scottish Renewables. Halfdan Brustad, VP UK Renewables at Equinor, commented, “In a globally competitive environment, ensuring the right CfD parameters enables the UK to remain one of the most attractive markets to develop offshore wind.” RenewableUK commented, via Chief Executive Dan McGrail, “There is the potential for the Government to attract a record level of private investment in offshore wind projects next year, with at least ten projects likely to be eligible, able to power 8.5 million homes each year and reduce the UK’s need for gas by 39%.” The Offshore Wind Industry Council (OWIC) also welcomed the increase in maximum bid prices. “The potential economic prize is huge growing our offshore wind supply chain alone represents a £92 billion boost to the UK economy by 2040,” said OWIC Co-Chair Richard Sandford. The UK government has also committed £960 million for clean energy sectors as part of a £4.5 billion funding for strategic manufacturing sectors. The UK has committed to £960 million for a Green Industries Growth Accelerator to support clean energy manufacturing, the government said. The funding will be available from 2025 for five years, providing industry with longer term certainty about their investments. The UK and Germany have agreed a new partnership to help secure safe, affordable and clean energy for consumers in both nations for the long term and bolster energy security.

The ministry will now evaluate the bids and has tentatively set an auction date for February 2024.

Halfdan Brustad, VP UK Renewables

“In a globally competitive environment, ensuring the right CfD parameters enables the UK to remain one of the most attractive markets to develop offshore wind.” The countries agreed to boost cooperation in renewables, notably offshore wind and electricity interconnection, to remove regulatory barriers and accelerate deployment of offshore hybrid projects, as well as to share industry knowledge and expertise to improve the exploration of carbon capture, utilisation and storage (CCUS), including the crossborder transport of CO2. National Grid said in early November it was accelerating the connection of up to 20 GW of clean energy projects to its electricity transmission and distribution networks in England and Wales as part of ongoing collaborative work across industry. National Grid has already been in contact with more than 200 projects interested in fast tracking their distribution connection dates in the first wave of the capacity release, with 16 expressing an interest in connecting in the next 12 months and another 180 looking to connect within two to five years. “Bringing these battery projects forward is one of a range of actions that our electricity transmission business is delivering alongside the system operator and wider industry to unlock clean energy capacity in England and Wales,” Alice Delahunty, President of National Grid Electricity Transmission, said. Onshore wind projects are already contributing more than £6.5 million a year to Welsh Communities, research from RenewableUK Cymru has found. If Wales were to expand its onshore wind capacity by an additional 2.2 GW, capable of powering nearly 1.5 million homes, this could translate into nearly £20 million being injected directly into the Welsh communities each year, according to RenewableUK Cymru. In Norway, seven bidders have applied to be qualified for the first Norwegian offshore wind tender, the Petroleum and Energy Ministry said in the middle of November. The consortium or companies that have sought pre-qualification are Aker Offshore Wind, bp, and Statkraft; Equinor and RWE; Hydroelectric Corporation; Mingyang Smart Energy; Norseman Wind; Parkwind and Ingka; and Shell, Lyse, and Eviny.

In company news, Aberdeen-based Amplus Energy Services Ltd has announced its entry into carbon capture with a multi-million-pound investment in a leading Norwegian company which will create a new UK business in the growing sector. Amplus Energy is investing a seven-figure sum in carbon capture company Carbon Circle AS of Norway and will support the establishment and operation of new company Carbon Circle UK Limited, based in Aberdeen. Wintershall Dea has entered a second carbon capture and storage project in the UK by joining the ‘Poseidon’ CCS project after acquiring a 10-percent stake in the licence from Carbon Catalyst. The licence was awarded to Perenco and Carbon Catalyst as part of the UK’s first CO2 storage licensing round. Perenco is the designated operator of the project, while Carbon Catalyst and Wintershall Dea will now hold non-operated positions in it. HydroWing prepares to deploy its next generation tidal energy technology, following the recent announcement that HydroWing has been awarded a contract for a 10 MW tidal stream energy project in Wales. HydroWing was the largest tidal stream project in Wales to be successful in the UK government’s latest Contracts for Difference round. The project will be located at the Morlais tidal energy site in Anglesey, which is managed by the social enterprise Menter Môn. The Morlais site is the UK’s largest consented tidal energy scheme. Altea Green Power has undertaken in Italy the implementation of a new battery energy storage project with a capacity of 1 GW, called Black Bess. By 2026, the company aims to reach a total storage capacity of 5.5 GW in Italy. Two additional projects with a total capacity exceeding 2 GW are already in the planning pipeline. Air Liquide and Siemens Energy inaugurated their joint venture gigawatt electrolyser factory in Berlin in early November. The gigawatt factory will ramp up to an annual production capacity of 3 GW by 2025. Foresight Group’s energy transition fund, Foresight Energy Infrastructure Partners, has announced an investment into the development of a new pumped storage hydro project in the Republic of Ireland. A total of 148 hectares in Tipperary on the Northern ridge of the Silvermines Mountain range will be the site of the project, which will utilise the existing void to create a lower reservoir and see the creation of a second, upper reservoir just below the crest of the hilltop. Once developed, the project can deliver the storage capacity at a rate of 300 MW over a period of six hours. The investment by FEIP is in addition to the grant funding awarded to the Silvermines PSH project from the European Commission through the Connecting Europe Facility earlier this year. 

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Exxon and Chevron Bet on Continued Oil Demand

The two US oil and gas supermajors, ExxonMobil and Chevron, announced blockbuster deals to buy smaller American producers as consolidation in the US shale patch continued in the fourth quarter of the year. The fate of a pending offshore oil and gas lease sale, rising employment in the US oil and gas industry, and a record US crude oil production were also the highlights in the industry over the past month.

The two largest US oil and gas companies, ExxonMobil and Chevron, announced in the span of just two weeks big acquisitions in all-stock transactions to further consolidate their position in the US oil patch. Exxon announced a deal to buy Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion. The implied total enterprise value of the transaction, including net debt, is around $64.5 billion. The deal would transform ExxonMobil’s upstream portfolio, more than doubling the company’s Permian footprint and creating an industry-leading, high-quality, high-return undeveloped US unconventional inventory position, Exxon said. Together, the companies will have an estimated 16 billion barrels of oil equivalent resource in the Permian. Through the deals, Exxon will become the Permian’s top crude oil producer. “The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis,” said ExxonMobil Chairman and CEO Darren Woods. Commenting on the deal, Wood Mackenzie’s analysts said, “This landmark move is far from countercyclical and is something very few of

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ExxonMobil’s peers could do. A massive oil deal that demonstrates oil demand and price bullishness, the company will now be in a peer group of one: the industry’s first Megamajor.” Less than two weeks after Exxon announced the deal, Chevron said it would buy Hess Corporation in an all-stock transaction valued at $53 billion with a total enterprise value, including debt, at $60 billion. With the deal, Chevron will add assets offshore Guyana and in the US Bakken shale play. The Hess deal will give Chevron 465,000 net acres of high-quality, longduration inventory in the Bakken supported by the integrated assets of Hess Midstream, as well as complementary U.S. Gulf of Mexico assets. “In the Bakken, Hess holds a strong acreage position with a long queue of economic future drilling locations that will be added to Chevron’s advantaged shale and tight portfolio,” Chevron’s chief executive Mike Wirth said on the call with analysts to discuss the acquisition. WoodMac’s analysts commented, “Coming hot on the heels of ExxonMobil’s acquisition of Pioneer, Chevron-Hess is a big deal in every sense.” According to the upstream and corporate research analysts at WoodMac, “Like ExxonMobil’s acquisition of Pioneer, the Chevron-Hess deal is not an opportunistic play but a strategic decision.”

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The deals highlight the belief of both Exxon and Chevron that global oil and gas demand will remain strong for years and the US would continue to be a big contributor to global supply, Wood Mackenzie says. The two deals worth $60 billion each and announced in October overshadowed the US upstream mergers and acquisitions (M&A) activity from the third quarter, when $14 billion was transacted in 25 deals, Enverus Intelligence Research (EIR) said. “A liftoff in corporate consolidation picked up the slack of declining opportunities to buy private assets with two-thirds of deal value last quarter coming from combinations between public companies,” EIR said. “That accelerated to historic levels in October with ExxonMobil’s $65 billion acquisition of Pioneer Natural Resources in the third-largest upstream deal ever by enterprise value, and Chevron purchasing Hess for $60 billion.”

“Three years ago in September 2020, upstream oil and natural gas employment hit rock bottom because of COVID, but now due to ingenuity, innovation and commitment to energy security, this industry has generated nearly 54,000 upstream oil and gas jobs in Texas,” TXOGA president Todd Staples said.

ExxonMobil Chairman and CEO Darren Woods.

“The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis”

John Gutentag, product owner at Enverus, said, “By acquiring Pioneer, ExxonMobil is not only expanding its Permian portfolio, but also speeding up the Permian’s transition to a lowcarbon future.”

“In 2024, we expect the number of active rigs to increase, helping to grow crude oil production in the second half of the year.”

US Oil & Gas Job Numbers Continue To Rise Meanwhile, the upstream sector in Texas and the oilfield services industry in the US continued to add more jobs in September and October. In Texas, newly-released data from the Texas Workforce Commission (TWC) indicated that upstream oil and natural gas employment rose by an additional 1,700 jobs in September, said the Texas Oil & Gas Association (TXOGA). These new numbers extend the strength of 2023’s job growth to date, with 14,300 jobs

“As the United States job market begins to cool, and the national unemployment rate rising by 0.1% in October, the oil and gas industry continues to increase its job numbers as global energy demand skyrockets,” Energy Workforce said.

US Gulf of Mexico Lease Sale

The decision of the US Court of Appeals for the Fifth Circuit requires BOEM to hold Lease Sale 261 within 37 days, removes the restrictions on oil and gas vessels, and restores the previously removed acreage.

Record US Oil Production

In the August Short-Term Energy Outlook (STEO), the EIA said that despite the falling rig counts, “increased well productivity has offset the decline in active rigs so far in 2023.”

In the US oilfield services sector, 1,736 jobs were added in October, according to preliminary data from the Bureau of Labor Statistics (BLS) and analysis by the Energy Workforce & Technology Council.

In the middle of November, an appeals court in Louisiana ordered the US Administration to hold a postponed lease sale in the Gulf of Mexico within 37 days, upholding a lower court’s decision from September and dismissing challenges from environmental groups that sought restrictions in the area up for sale due to endangered whale species.

According to EIR, the acquisitions ExxonMobil and Chevron have announced are likely to lead to further consolidation among smaller oil and gas producers as they will look to remain competitive and secure remaining drilling opportunities.

Data from the Energy Information Administration showed that US crude oil production averaged 13.05 million barrels per day (bpd) in August—a record-high that broke the previous monthly record of 13 million bpd set in November 2019.

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added so far this year, according to the oldest and largest oil and gas trade association in Texas. At 210,700 upstream jobs, compared to the same month in the prior year, September 2023 jobs were up by 18,700, or 9.7 percent, over September 2022. Months with an increase in upstream oil and natural gas employment have outnumbered months with a decrease by 31 to 5. Oil and natural gas jobs pay among the highest wages in Texas with employers paying an average salary of around $115,000 in 2022, TXOGA noted.

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Lease Sale 261 is the final offshore lease sale mandated by the Inflation Reduction Act and is likely to be the only offshore sale scheduled to take place until 2025, the American Petroleum Institute (API) said. “In September, the Biden administration issued a proposed final 5-year program for federal offshore leasing that included 3 offshore lease sales over the next 5 years, the lowest number of lease sales in the history of the program,” the US oil lobby group noted. Commenting on the appeals court decision on the Lease Sale 261 in the Gulf of Mexico, API’s Senior Vice President and General Counsel Ryan Meyers said: “Energy independence scored an important win tonight with the Fifth Circuit decision lifting unjustified restrictions on oil and natural gas vessels and restoring acreage for offshore energy development. The U.S. Gulf of Mexico plays a critical role in maintaining affordable, reliable American energy production, and today’s decision creates greater certainty for the essential energy workforce and the entire Gulf Coast economy.” 

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MIDDLE EAST Energy Review By Tsvetana Paraskova

Saudi Arabia Extends Voluntary Cut into December

OPEC’s upbeat view on global oil demand, the extension of the extra voluntary Saudi production cuts until the end of 2023, Saudi Aramco’s third-quarter results, and QatarEnergy’s new long-term LNG deals with European and Chinese energy majors featured in the Middle East oil and gas industry in the past month.

Saudi Arabia said in early November that it would extend its voluntary oil production cut of 1 million barrels per day (bpd) into December 2023. Crude oil production in the Kingdom – the largest producer in the Middle East and OPEC – will be around 9 million bpd in December, the same as in the previous months. Saudi Arabia began the extra cut in July this year to support market stability, as it says. “This voluntary cut decision will be reviewed next month to consider extending the cut, deepening the cut, or increasing production,” the Saudi Press Agency reported. The additional voluntary cut “comes to reinforce the precautionary efforts made by OPEC Plus countries with the aim of supporting the stability and balance of oil markets,” Saudi Arabia said.

OPEC Sees Robust Global Oil Demand OPEC, the organisation led by the biggest Middle Eastern oil exporters, raised slightly its oil demand growth estimates for 2023 and 2024 in its latest Monthly Oil Market Report for November. OPEC continues to expect strong global oil demand and sees the global economy doing well and oil market fundamentals healthy.

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“Recent data confirms robust major global growth trends and healthy oil market fundamentals,” OPEC said in a featured article in its monthly report. The comments came days after oil prices slid by around $10 per barrel in just a couple of weeks, amid soured market sentiment and concerns about the global economy and China’s oil demand. “On the global economic growth front, and as the US economy continues the very strong growth it experienced in 3Q23, the IMF has recently upgraded Chinese economic growth projection for 2023 to 5.4%,” the organisation said. “With this, and despite the overblown negative sentiment in the market regarding China’s oil demand performance, and global oil market in general, the latest data shows Chinese crude imports increasing to 11.4 mb/d in October, and remaining on track to reach a new annual record high for this year, at around the same level,” according to OPEC. In general, the cartel says that “Global oil market fundamentals remain strong despite exaggerated negative sentiments.” In view of robust demand, OPEC raised its forecast for oil demand growth for 2023 slightly higher by 20,000 bpd from the October estimate, and now sees global oil demand growing by 2.5 million bpd this year. For 2024, OPEC expects global oil demand to grow by another 2.2 million bpd, unchanged from the previous month’s assessment.

MIDDLE EAST ENERGY REVIEW Saudi Aramco Earnings Slide on Lower Oil Prices Saudi Aramco, the world’s largest oil firm by production and market capitalisation, reported in early November lower net income and cash flow from operations for the third quarter, due to lower oil prices and lower oil sales as Saudi Arabia is voluntarily cutting production by 1 million bpd to rebalance the market. “Ongoing economic uncertainty resulted in lower prices for hydrocarbons and lower refining and chemicals margins, compared to the same period in 2022,” said Aramco, whose net income fell to $32.6 billion for the third quarter of 2023, down from $42.4 billion for the same period of 2022. Cash flow from operating activities declined to $31.4 billion from $54.0 billion, while free cash flow slumped to $20.3 billion from $45.0 billion. Despite the lower results overall, compared to the record-high profits from 2022, Saudi Aramco continued its dividend distribution and declared a base dividend of $19.5 billion for the third quarter. As announced earlier this year, Aramco also intends to share additional upside with investors through performancelinked dividends to be calculated based on the Group’s combined full-year results for 2022 and 2023. These are intended to be paid over six quarters, and the first distribution was paid in the third quarter of 2023. Aramco’s Board has approved the second distribution of these performance-linked dividends in the amount of $9.87 billion calculated based on the fullyear results of 2022 and the nine-month results for the period ended September 30, 2023. This second distribution will be made in the fourth quarter of 2023 and subsequent distributions are expected to be adjusted to reflect the remaining results for 2023.

“Aramco believes energy demand is likely to increase over the mid- to long-term and is investing in its growing, integrated portfolio through the largest capital program in its history,” the Saudi oil giant said. Aramco’s president and CEO Amin Nasser commented, “We intend to continue investing across the hydrocarbon chain, leveraging cutting-edge technologies to optimize our operations and advance the development of emerging energy solutions.” “It is an approach rooted in our belief that a balanced and realistic energy transition plan should consider the needs of all geographies, in order to avoid disparities between global energy consumers,” the executive added.

“These agreements reaffirm Qatar’s commitment to help meeting Europe’s energy demands and bolstering its energy security with a source known for its superior economic and environmental qualities,” said Saad Sherida Al-Kaabi, the Qatari Minister of State for Energy Affairs, who is also president and CEO of QatarEnergy. A few weeks later, QatarEnergy announced the signing of a partnership agreement with China’s Sinopec for the North Field South (NFS) expansion project and for the delivery of 3 million tons per annum of LNG from the NFS project to Sinopec’s receiving terminals in China over 27 years.

Under the terms of the partnership agreement, QatarEnergy will transfer a 5-percent interest to Sinopec in a joint venture company that owns the equivalent QatarEnergy Signs 27-Year LNG of 6 million tons per annum (MTPA) of LNG Supply Deals with Europe, China production capacity in the NFS project. This is the second partnership agreement In Qatar, the state energy giant QatarEnergy between QatarEnergy and Sinopec, following has recently signed 27-year LNG sale a similar deal signed in Doha last April, and purchase agreements with which marked Sinopec’s entry as a European majors Eni, Shell, shareholder in one of the North and TotalEnergies to supply Field East (NFE) joint venture “It is an approach volumes from its expanded companies that own the NFE rooted in our belief that LNG export facilities to Italy, project. a balanced and realistic the Netherlands, and France energy transition plan should beginning in 2026. All “The State of Qatar has consider the needs of all three European firms hold firmly supported the role geographies, in order to avoid minority stakes in Qatar’s of natural gas as a central disparities between global North Field LNG expansion component of any energy energy consumers projects. mix on the road to a realistic energy transition,” QatarEnergy’s Under the deals, Qatar and Shell Al-Kaabi said in a keynote speech will deliver up to 3.5 million tons at the Sinopec Forum in Shanghai in per year of LNG to the Gate LNG terminal early November. in the port of Rotterdam, QatarEnergy and TotalEnergies will ship up to 3.5 million tons “In fact, by 2029, about 40% of all new LNG per year of LNG to the Fos Cavaou LNG supplies will be provided by Qatar,” Al-Kaabi receiving terminal in southern France, and noted, adding “Therefore, we believe that a QatarEnergy and Eni will supply up to 1 million stronger relationship between the world’s tons per year of LNG to FSRU Italia, a floating largest LNG producer and the world’s largest storage and regasification unit located in the energy consumer is a natural development of port of Piombino, in Italy’s Tuscany region. the realities shaping the energy map today.” 

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OVER THE YEARS Brent Oil Column November 2023

YEAR AGO

THE DIGITAL COMMERCIAL STRATEGIST

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De-risking your commercial strategy and activity for 2024. By Eric Doyle

1 Year Ago - $85.59 European refineries found themselves oversupplied with crude as an expected shortage owing to a looming EU ban on Russian oil was yet to materialise. The spread between front-month Brent crude futures significantly reduced, with concerns regarding the EU embargo on Russian crude beginning to diminish.

YEARS AGO

5 Years Ago - $61.50 Crude oil prices experienced a significant decline, reaching levels that hadn’t been seen in nearly a year as traders anticipated an oversupply of oil coinciding with reduced demand. Brent was in a so-called ‘bear market’ territory as it fell by more than 20% since its peak - $86 in early October.

YEARS AGO

10 Years Ago - $110.83 BP and Shell were forced on the defensive by new allegations of pricerigging in the US by four oil traders. The two companies, along with others involved with the oil market, were alleged to have attempted to rig the spot price for Brent crude oil on multiple occasions in the decade prior.

The end of year commercial review and next year's plan, we’ve all been there… Whether you are presenting your performance, the performance of your team or, you are on the other side of the table asking the questions. When times are high it’s always a great session. Perhaps you delivered Q1,Q2 and Q3 as planned or ahead, and your CRM is overflowing with deals at ‘close’ and a host of others filling up the pipeline. You have good visibility on Q1 next year and Q2 & Q3 are opening up, perhaps you even have eyes on some Q4 activity. A well-oiled commercial engine with Sales Qualified Leads and conveyed deals all lining up at the right time and the right place on the calendar…perfect.

When times are lean it's not such a pleasant process. Perhaps you struggled to meet Q1 numbers or scraped through, that rolled into Q2, Q3 and you've been chasing hard throughout the year. You are relying on one or two deals to come off, but you are not sure if they will land. If the pipeline is bare or partially filled in, it’s a hard conversation. At this point it would be easy for the management team to crank up the pressure. “Make more calls”, “send more emails”, “do more of whatever it is you need to do to make those numbers”. The fact is, most of the people on the front line know that the world has changed, and the buying world has changed. They know that no amount of pressure increases to do more of what we did is helping in any way. As leaders, we must ask ourselves if we have given our people the best chance at delivering, have we done our bit to de-risk the commercial horizon for our people? The world has changed, digital transformation has now engulfed our Marketing, Sales and Business development processes and it shouldn’t really be a shock, we’ve had all the information we needed for years... I was looking back through the archives and found an article by Laurence Minsky and Keith A. Queensberry published in the Harvard

Business Review in 2016. It’s called “How B2B Sales Can Benefit from Social Selling". In this article, Minsky and Quesenberry write: “Outbound B2B sales are becoming less and less effective. In fact, a recent survey found that connecting with a prospect now takes 18 or more phone calls, callback rates are below 1%, and only 24% of outbound sales emails are ever opened. Meanwhile, 84% of B2B buyers are now starting the purchasing process with a referral, and peer recommendations are influencing more than 90% of all B2B buying decisions”.

This is from 2016… At the top of this piece, I talked about healthy buoyant pipeline review and one which was much harder with little or no pipeline to review. In 2023/4 organisations are beginning to understand there is a Digital Twin of their sector and being a leader in this Digital Twin is crucial. Gartner tells us that around 10 people are making buying decisions in your target accounts. This means that you and your team must be connected to the right 10 people in your target accounts. This isn’t just ‘potluck’ connecting, it takes strategy and skill to do it correctly. Then you need to build influence: a strong, compelling and consistent vein of content addressing the issues your target clients face. Remember, Edelman and Linkedin tell us that ‘64% of your buyers say that your thought leadership content is a more trustworthy basis for assessing your capabilities and competence than your marketing materials and product sheets’. Being strategic with Social Media allows you as a leader to lead the way and forensically break down the pipeline, there is no place to hide with digital and social media. This is just one of the many ways that you can de-risk and protect your pipeline from sudden change using social and digital channels and hard wiring them into your commercial strategy and activity. 

“GOOD MEDIA MAKES PEOPLE VISIBLE, GREAT MEDIA MAKES THEM THE LEADERS IN THEIR SECTORS...” Eric Doyle is the Managing Director of The OGV Studio, a Digital Media Strategy company whose mission is to Energise your Media for growth. Eric is a Fellow of the Institute of Sales Professionals.

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GALLAF PROJECT PHASE 3 QATAR $2 billion

$250 million

$500 million

BOURI GAS UTILISATION PROJECT LIBYA

North Oil Company

Kosmos Energy

Murphy Oil Corp

$1 billion

NOC has drafted a letter of award for the EPCI contracts for the project. EPCI 13 (CPP) is awarded to JV of Hyundai Heavy Industries and McDermott International. EPCI 9 (subsea cables and pipelines) is awarded to COOEC. EPCI 11 (topsides of various WHPs) is awarded to McDermott. EPCI 12 (new riser platform) is awarded to Larsen & Toubro.

Kosmos Energy, Equinor and Occidental have discovered oil after drilling the Tiberius exploration well in the US GoM Keathley Canyon Block 964 area. Kosmos is targeting first oil from Tiberius in late 2025. The company will link the discovery to the Occidental-operated Lucius spar located 10km away. Production will initially start from one well, with potential for an additional three wells. Kosmos estimates finding and development costs at US$10-15 per barrel.

Murphy Oil has reached a final investment decision (FID) for the Lac Da Vang field project. The company stated that the project is expected to achieve first production in 2026, with development phased through 2029.

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Energy projects and business intelligence in the energy sector 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.

Rosetti Marino has been awarded a contract by Saipem to carry out Engineering, Procurement, and Construction services for the Bouri Natural Gas Field project. The scope of work encompasses the construction of a Gas Recovery Module (GRM) weighing approximately 5,000 tonnes, modifying the existing central processing platform to accommodate the new GRM, and refurbishing the staff accommodation module. The project is expected to be completed in 2026.

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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MAKO GAS FIELD INDONESIA

$300 million

Conrad Petroleum Tendering of the major contracts, namely the the mobile offshore production unit (MOPU) and the subsea umbilicals, risers and flowlines (SURF) package are underway. The final investment decision (FID) for the Mako project is now expected to be achieved by 2024. Two (MOPU and SURF) of the three FEED studies have been completed.

WEST WHITE ROSE EXTENSION PROJECT CANADA $3.1 billion

Cenovus Energy Cenovus Energy has contracted Harland & Wolff to execute the mid-life upgrade of the SeaRose FPSO. The contract, which has been valued at around US$74mn, includes the execution of refurbishment and upgrade works. The FPSO is planned to arrive at the contractor's yard in Belfast in Q1 2024 although pre-arrival works have already started, including procurement of steel, fabrication of customised blocks and inspections.

NAMORADOGAROUPA FIELD REDEVELOPMENT BRAZIL

GRANDE FUERTE EXPLORATION AREA COLOMBIA

EIRIN SUBSEA TIEBACK NORWAY $373 million

$550 million

$1 billion

Equinor

Petrobras

Shell

Ocyan and Mota Engil have signed an engineering, procurement, construction and installation (EPCI) contract with Petrobras for the reconfiguration of the subsea layout at the Garoupa and Namorado fields in the Campos basin. Engineering work will begin imminently, and the offshore campaign is expected to start in 2025.

Shell and Ecopetrol have discovered gas after drilling the Glaucus-1 exploration well offshore Colombia, in Block COL-5. The well reached a total depth of 4,284 metres and an accumulation of natural gas was found at water depths of 2,340 metres about 75km off the Colombian coast.

Equinor has awarded Moreld Apply a tie-in contract for the topside. The work includes alterations to the existing facilities as well as the installation of new equipment. The primary scope of work for Moreld Apply includes a new inlet cooler and separator for wet gas; metering for both gases and liquids; the pull-in and hang-off of a new umbilical from Eirin; the installation of new HPU and MEG skids for subsea supply; and the hook-up operation for subsea power and control.

OFFSHORE AREA 4 MAMBA COMPLEX MOZAMBIQUE $3.5 billion

Mozambique Rovuma Venture MRV invited companies to submit Expressions of Interest (EOI) for FEED services and potential EPCI of subsea to shore gas gathering facilities. The scope of work includes FEED services and potential EPCI for: 1) Deepwater subsea equipment installation; 2) Umbilical installation; 3) Engineering, procurement, construction, and installation of pipelines and deepwater in-field flowlines and rigid jumper spools; 4) Completion of mechanical systems (including pre-commissioning) 5) Commissioning aids.

JURASSIC FIELD – NON-ASSOCIATED OIL AND GAS RESERVES – PHASE 3 KUWAIT $1.5 billion

Kuwait Oil Company KPC issued the EPC contract notice for the project. The work scope of the EPC contract is for the Pressure Depletion Compression System and Sulphur Treatment Unit at the Early Production Facility EPF-50 and Jurassic Production Facility JPF-3 facility. The EPC contract is expected to be awarded in April 2024.

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PORTHOS CCUS PROJECT NETHERLANDS $1.37 billion

Port of Rotterdam Authority During October FID was taken on the project. A number of contracts have been formally announced. Allseas has been awarded the contract to construct the subsea pipeline for the project. Corinth Pipeworks has been awarded a €30million contract to manufacture and supply High Frequency Welded (HFW) steel pipes for the project. MAN Energy Solutions has been awarded a contract for the delivery of three RG28-6 integrally-geared compressor trains (IGC) for the project, with two additional units to be added at a later stage.

Management IN THE ENERGY INDUSTRY By Tsvetana Paraskova

One of the most important parts of any business, risk management, is especially important in the energy industry where companies face financial, climate, environmental, political, and geopolitical risks. The oil and gas industry and the renewables energy industry are also exposed to operational, supply-demand, price and cost, and cyber security risks. From complying with the best practices to monitoring operations and keeping energy supply safe for workers and the environment, energy companies need to identify and analyse a number of potential threats to anticipate their future operational and financial performance to the best of their capabilities. Additional risks to energy supply, demand, and prices affecting energy companies come from heightened geopolitical tensions and wars, as the world has seen over the past two years with the Russian invasion of Ukraine and the Hamas-Israel war in the Middle East, home to a large part of the world’s crude oil production and trade. The last two years have also been challenging for energy companies, including those in the renewables business, due to rising interest rates, supply-chain issues, higher material and project costs, and taxes on excess profits, especially in Europe. For example, the UK windfall tax, officially known as the Energy Profits Levy, has prompted some operators in the UK North Sea to review their investment plans and reduce activities in view of the uncertainty in the regulatory environment. Then there is the ‘peak fossil fuel demand’ narrative which complicates risk management for companies in the oil and gas business. Last but not least, in a world experiencing heightened geopolitical tensions and divisions amid increasingly digitalised systems, cyber security has also become a top priority for energy companies.

For the energy firms, supply-demand risks have increased with the rise in geopolitical tensions. Many companies in the oil and gas business, especially in Europe, have doubled down on continued production of oil and gas while allocating resources for low-carbon energy only to the most profitable projects with good returns.

Climate Risks The strategy shift for firms such as bp and Shell was the result of the increased concerns about energy security and the belief in the industry that oil and gas will be needed for decades despite the energy transition. Proponents and advocates of a faster rollout of renewables say that the oil and gas industry has taken on a climate risk with the strategies to bet on continued sustained demand for oil and gas in the coming decades. The industry says maturing assets with lower production rates need to be replaced by other resources just to keep the current rates of oil and gas supply flowing.

Heightened Geopolitical Risks

On the other hand, forecasters such as the International Energy Agency (IEA) have called “the end of fossil fuels,” as IEA executive director Fatih Birol has recently said, and see peak oil, natural gas, and coal demand by the end of this decade.

The war in Ukraine and the most recent flare-up in the Middle East have upended the global energy market. Supply concerns have increased while demand patterns have changed as households have begun saving on natural gas and electricity amid the energy and cost-of-living crisis, while industry players in Europe have reduced some operations with the soaring energy costs.

So energy majors are taking on a risk with future global oil and gas demand. They should be careful in their long-term plans and investments because they risk holding the so-called stranded assets, according to non-profit think tank Carbon Tracker Initiative.

www.ogv.energy I November 2023

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“The risk from lower future demand is that long-term commodity prices are lower than anticipated, and thus many projects would fail to generate an economic return (i.e., not reaching their hurdle rate), becoming financially stranded,” it says. Price volatility and demand risks increase the need for careful planning for potential risks to company profitability.

“Critical infrastructure security Cyber Security Risks is at a pivotal juncture, Systems safety and protection against cyber threats are where threats are also important parts of risk management for any energy proliferating and evolving, company. The various technologies and systems used but there's also a growing in the process of extracting, transporting and refining collective interest and products, and keeping electricity supply reliable could be desire in protecting our vulnerable to external cyber threats. most essential To improve cybersecurity in the oil and gas industry, the World systems.” Economic Forum has established the Cyber Resilience in Oil and Gas initiative.

This initiative, launched in 2020, includes more than 40 public and private organisations working together to drive forward collective action on cyber resilience. It is part of the effort of the World Economic Forum’s Centre for Cybersecurity to strengthen cybersecurity across multiple industries. A key aspect of the initiative is the Cyber Resilience Pledge, which was launched at the World Economic Forum Annual Meeting 2022 in Davos. A total of 21 oil and gas CEOs have committed to taking a common approach to cyber resilience and protecting digital infrastructure and assets in the sector. Pledge endorsers include major energy companies Aker, Check Point Software Technologies, Claroty, Cognite, Dragos, Ecopetrol, Eni, EnQuest, Galp, Global Resilience Federation, Institute for Security and Safety (ISS), KnowBe4, Maire Tecnimont, Occidental, OT-ISAC, PETRONAS, Repsol, Shell, Saudi Aramco, Schneider Electric, and Suncor Energy. By signing the Cyber Resilience Pledge, the companies have endorsed the cyber resilience principles to guide leadership and board members through the process of cultivating a cyberaware and resilient corporate culture, the World Economic Forum says. Commenting on common efforts to address cyber security threats, Amin H. Nasser, president and chief executive officer at Saudi Arabia’s state oil giant Saudi Aramco, has said: “One company working alone is effectively like locking the front gate while leaving the back door wide open. We must work together if we want to truly protect the critical energy infrastructure that billions of people around the world depend upon.” According to Yaniv Vardi, chief executive officer at Claroty, “Critical infrastructure security is at a pivotal juncture, where threats are proliferating and evolving, but there's also a growing collective interest and desire in protecting our most essential systems.” Barbara Frei, Executive Vice-President and Chief Executive Officer, Industrial Automation, at Schneider Electric, notes, “It is imperative that actors from the industry join strengths and cooperate to make the cyberspace safer and more resilient. We invite other industry players to join this collective effort to deliver sustainable, safe, and reliable energy.” 

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MITIGATING RISK WITH INNOVATIVE IR MONITORING TECHNOLOGIES Underwater electrical cables are critical to the operation of subsea equipment, and loss of cable integrity can ultimately lead to field shutdown and lost production revenue.

Electrical cables have the ability to protect their own conductor. The measured value of the surrounding insulating material is called insulation resistance (IR). Monitoring, predicting and preserving the IR of a cable over the life of a subsea field is a science in itself. Damaged and faulty cables will eventually allow seawater to ingress onto the conductors, causing low IR and leakage currents which can be hazardous to personnel and will eventually lead to system shutdown. The saltwater also acts as an electrolyte, promoting a chemical reaction that can erode and weaken the copper conductors, which may accelerate the time taken for a fault condition to occur. It is vital that an Insulation Monitoring Device (IMD), also known as a Line Insulation Monitor (LIM), is installed to monitor for breakdowns in insulation by measuring conductor to earth

leakage currents. It can be the case that deteriorating IR takes place gradually, but it can also collapsing suddenly. Having permanent IR monitoring hardware properly configured with appropriate alarm setpoints is the best option for keeping the system in service in a hostile subsea environment. This information helps asset managers to reduce risk and allows the most effective life extension measures to be put in place at the earliest possible stage. Installing a V-LIM, Viper Innovations’ awardwinning Line Insulation Monitor, is a vital part of effective risk management of critical assets. V-LIM uses a lower voltage measurement signal which has been optimised to ensure that accuracy is not compromised. This lower voltage has the effect of slowing the rate of copper loss from a cable with sea water ingress while maintaining the quality of its measurements, even at low IR levels.

Viper’s V-LIM can extend the life of a subsea cable with a low IR fault, without compromising the quality of the gathered data. By also enabling Viper’s cutting-edge V-LIFE IR recovery technology, activated topside via a config file, cable damage can be ‘healed’. Before V-LIFE became available, expensive subsea fault-finding interventions and the replacement of cables, equipment and umbilicals were the only solutions to this problem. The common causes of IR failure are well known. Without monitoring and prompt action, its effects can be catastrophic to the operation of a subsea field. Fitting a LIM is mandatory, so choose V-LIM and V-LIFE as part of a robust risk management toolkit and take advantage of Viper’s innovative subsea control system solutions. 

Find out more at www.viperinnovations.com

The Hidden Risks of Technical Debt:

Unravelling the Multifaceted Challenge | by COLIN ADAN Principal Business Consultant, Cegal Ltd

In the fast-paced world of technology, the term ”technical debt” often conjures images of convoluted code or legacy systems awaiting overdue updates. While these elements are indeed components of technical debt, they represent merely the visible tip of a much larger iceberg. Below this surface lies a complex array of challenges that extend into hardware, systems, processes, and security. This form of debt, however, is not just an IT issue; it’s a business issue with farreaching implications. Left unaddressed, it can silently undermine operational efficiencies, escalate costs, and expose organisations to heightened security risks. More critically, it can divert focus from innovation and strategic objectives, thereby eroding competitive advantage in today’s dynamic market landscape.

| Aging Hardware In an era where digital transformation is more than a buzzword—it’s a business imperative—the hardware that powers your organisation cannot afford to be an afterthought. Yet, it often is. Servers, workstations, storage devices, and network equipment form the backbone of your digital operations, but they also age, and with age comes a host of challenges that many organisations underestimate including performance degradation or system failure, increased maintenance costs and limited vendor support. Older hardware is often incompatible with new software updates, creating a security vulnerability that cybercriminals are all too eager to exploit. In a landscape where cyber threats are evolving at an unprecedented pace, running outdated hardware is akin to leaving your front door unlocked in a high-crime area. It’s not just an IT issue; it’s a strategic business concern that warrants proactive management.

| Legacy Systems Legacy systems often serve as the backbone of an organisation’s operations, but they can also act as hidden anchors, pulling the organisation down as it strives to innovate and adapt. These systems, while once state-of-the-art, can become increasingly expensive to maintain and are often incompatible with newer technologies. The challenge lies in balancing the immediate operational needs served by these systems with the long-term strategic goals of the organisation. Modernisation is often the key. However, it’s not as simple as ”out with the old, in with the new.” A wellplanned migration strategy is crucial to ensure minimal disruption to business operations. This could involve phased rollouts, parallel runs, or even hybrid models that allow legacy and modern systems to coexist until a full transition is feasible.

| Security Vulnerabilities In the rush to deliver features and meet deadlines, security often takes a back seat, accumulating as a form of technical debt that can have severe consequences. Unlike other forms of debt, security vulnerabilities can lead to immediate and catastrophic outcomes, such as data breaches, reputational damage, and legal repercussions. The first step in mitigating this is recognising that security is not a one-time activity but an ongoing process. Regular audits, vulnerability assessments, and penetration testing are essential components of a proactive cybersecurity strategy. But it’s not just about finding vulnerabilities; it’s about fixing them in a timely manner. This is where a well-defined patch management process comes into play, ensuring that all systems are up-todate and resilient against known threats.

cegal.com cegal.com

by Colin Adan | Principal Business Consultant at Cegal Ltd

| Data Debt Often lurking in the shadows of technical debt is its less discussed but equally insidious counterpart: Data Debt. While organisations are increasingly aware of the implications of outdated systems and security vulnerabilities, data debt remains an underexplored terrain. Yet, its impact can be just as debilitating, affecting everything from operational efficiency to strategic alignment. Quality Quandaries - Data is the lifeblood of modern organisations, fuelling everything from daily operations to strategic decision-making. However, poor data quality—be it inaccuracies, inconsistencies, or incompleteness—can lead to flawed decisions and operational hiccups. The cost of rectifying these errors can accumulate over time, much like the accruing interest on a loan. Governance Gaps - In the absence of robust data governance, organisations risk creating data silos and bottlenecks. This fragmented approach to data management hampers cross-functional collaboration and can lead to duplicated efforts and missed opportunities. Effective governance is not just a best practice; it’s a necessity for mitigating data debt.

| Business Implications In the intricate ecosystem of an organisation, every component—be it hardware, software, processes, or security—interacts in a complex web of dependencies. When one element is compromised, the impact may reverberate throughout the system, triggering a domino effect with often far-reaching business implications including operational disruption, financial strain, compliance issues and talent drain. Technical debt is not an isolated challenge; it’s a systemic issue that can subtly yet profoundly influence your organisation’s bottom line and competitive standing.

Navigating Technical Debt. Successfully managing technical debt requires a strategic roadmap that guides organisations through the complexities of this multifaceted challenge. This roadmap is not merely a set of recommendations but a structured plan that aligns with your broader business objectives. Here’s how to navigate the terrain of technical debt effectively. ASSESS. Conduct a comprehensive audit of IT components across the categories shown in Figure 1.

The goal is to come up with a ‘Debt Score’ for each component and allocate a Status against each. Typically, the status will comprise one of the following. Figure 1. Support ability Expected Life Span

Alignment

Debt Score Stability

Criticality

Scope

PLAN. Assess the security and compliance risks associated with the ‘Critical’ and ‘Concerning’ elements of the IT portfolio. Explore options to mitigate the most serious risks and prepare a Technical Debt Plan and Budget. Generate KPIs to measure the success of the management initiatives. IMPLEMENT. Begin phased replacement or upgrade of outdated components. Integrate automation tools where appropriate and roll out training programs focussed on bridging any identified skills gaps. MONITOR AND OPTIMISE. Monitor the KPIs set during the planning phase to evaluate the effectiveness of the mitigation. Establish mechanisms for continuous feedback from both IT and the wider business and make iterative improvements as necessary. REVIEW AND ADAPT. Measure the ROI of the debt management initiatives and ensure continued strategic alignment with evolving business objectives. Update the road based on lessons learned and emerging trends in technology and business. In conclusion, navigating technical debt is not just an IT initiative but a strategic business imperative. By following this roadmap, you’re not merely putting out fires; you’re building a more resilient, agile, and competitive organisation.

cegal.com

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ENERQUIP MARKS MILESTONE ANNIVERSARY FOR KEY PRODUCT LINE Multi award-winning torque specialist EnerQuip has marked the milestone 35th anniversary of a product line which is woven through the global leader’s corporate DNA. At just eight years old, the EnerQuip name’s youth belies its heritage as a leading provider of innovative torque machine solutions for the energy industry. The story began some 35 years ago with the inception of AMC Engineering Ltd in Aberdeen, UK by Alec McCutcheon. Fast forward to 2011 and having been under the stewardship of Caithness-born businessman, Andrew Polson following a management buyout in 2006, the company was then sold to Forum Energy Technologies in 2011. Launched in Aberdeen in June 2015, EnerQuip is a leading specialist in the design, manufacture, installation and maintenance of market leading torque machines and associated products, including bucking units and fully rotational makeup and breakout torque machines which can be adapted to suit any application. The highly skilled team delivers 24/7, 365 support and works with a growing client base in an increasing list of locations that includes Africa, North and South America, Canada, Europe, Asia, Australia and the Middle East.

casing in the Middle East. The latest addition to the product line in 2021 is much in demand, not least because it can make up range three casing doubles and drillpipe triples and is able to run fully automated thereby reducing labour and improving safety and efficiency. With a clamp range from 2.3/8” up to an optional 22” and a climate-controlled operator cabin, the MTU is torque capable up to 130,000 ft. Lbs and can hit the ground running due to its remarkable ability to be operational in under two hours from equipment arriving onsite. It can be paired with any manufacturer’s catwalk for delivery of casing and drillpipe to drill floor and is capable of rig side teardown of drill string components, and BHA makeup. The EnerQuip/AMC story then took something of a full-circle manoeuvre last year when the Findon-based company acquired the AMC product line from Forum Energy Technologies.

By taking ownership of the intellectual property, people, and assets the move further consolidated EnerQuip’s position, brought the product line back into the fold at the original manufacturing location and secured the longterm employment of staff associated with both EnerQuip and AMC. The deal also jump-started the latest phase of the company’s ambitious growth plans, including significant expansion of the existing global HQ at Findon on the outskirts of Aberdeen. The extended facility has increased indoor floor space dedicated to manufacturing by more than half and in time, will also add a new welfare facility and stores. Plans are also being progressed to relocate to larger premises in Houston, TX whilst longheld but Covid-hampered plans to establish a permanent presence in the Middle East have finally been realised. Some £750,000 has been ploughed into uplevelling activities in the region including the recent opening of a 1500 sq. ft. facility in Abu Dhabi and the imminent move of Global Head of Sales, Darren Bragg, to oversee operations having been promoted to the role of Regional General Manager for the Middle East. 

The creation of EnerQuip brought a new and exciting era for torque solutions innovation and a steep growth trajectory has seen the company rapidly cement its position at the forefront of the sector, with a growing global footprint, having just invested in both their Middle East operations and actively reviewing new premises in Houston, TX. Leading the way in the portfolio is the company’s ground-breaking MTU for the rig side mobile torque makeup of drill pipe and

EnerQuip Managing Director, Andrew Robins, EnerQuip Chairman, Andrew Polson and EnerQuip Technical Director, John Duncan welcome former owner and founder of AMC Engineering, Alec McCutheon back to their Aberdeen site, with some reminders around the site of the company’s history dating back 35 years.

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

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Bridging the gap between traditional energy services and a sustainable future ‘A view from Management’

The Intervention Rentals MD comments on the state of play in their area of the service sector, how the management team have positioned the company and what he hopes for the future

As an SME in the energy supply chain, it is important that we keep engaged across many macro and micro situations that can impact our activities. In addition to external forces, we must focus on what we can influence ourselves. One of the more immediate and measurable areas for growth is employee engagement. Communications like townhalls, direct engagement, enhanced training, social committees and health assessments directly benefits safety, retention, efficiency and productivity. A priority for us is keeping our personnel engaged and safe. We are committed to the saying, “we want everyone to go home in the same or better condition than when you arrived”. During lockdown, we were in a fortunate position to be able to keep everyone employed and as active as we could, and this sentiment continues to run through the management team. It is in everyone’s benefit to ensure that the company and its workforce will be here for the long run. Its been a unique couple of years since the height of covid with regards to investment and activity in the North Sea. On the one hand we have seen increased activity, which we warmly welcome, news of the NSTA granting consent to the likes of Rosebank as well as the government’s decision to grant additional licenses to maintain energy security. This we hope will have an uptick in operator activities, even with the widely unpopular energy windfall tax still hanging over the sector like a cloud, but there are reasons to be optimistic moving forward. When we look at how our sector is doing, we see from the earnings calls of the tier 1 service companies, that the likes of Halliburton, Schlumberger and Baker Hughes are continuing to strive for more innovation and look to broaden their offerings but are however are cutting back on capex to improve balance sheets and return cash to investors. These top tier companies represent a large part of our customer base and as they focus on financial discipline, we need to ensure that we are ready to meet that challenge with regards to resource availability.

So how can a SME, like Intervention Rentals, position and manoeuvre for the future? Expansion is a key factor in our long-term business plan. We have upgraded our Lunan facility, improved and increased our capacity and added staff and shift patterns to make us responsive and nimble. The Middle East region is an important are of growth for us, one that we are embracing moving forward. Our Middle East business currently operating in Saudi Arabia and the UAE has seen significant investment and regional support in the form of new premises, additional assets, key points of contact and milestone deals with key partners. As a result of our overall strategy we are perfectly positioned to support our current customer operations, Decom and Abandonment in the North Sea and Europe is also very much in focus, as we continue to support gas cavern and gas storage clients. Sustainability is a very popular term these days and it’s great that so much has been achieved in such a short space of time. It has added significance for us because as a management team, we are always thinking about sustaining Intervention Rentals for the future years, working to support whatever industry will be around then, but always with an eye on how we maintain the planet for the next generations. We have looked at different ways that we can enter and improve the sustainable and renewable sectors, and have had some incredibly fascinating conversations with sector leaders. We are now working with waste heat to power partners and academia to produce measurable results to the environment and to future energy supply, watch this space in 2024.We believe that by engaging, training and harnessing a motivated workforce, investing proactively and thoughtfully and broadening our horizons, we can make sure we can benefit every community we are in for years to come. 

In the coming months we will see more in the ‘Highlights On’ series from Intervention Rentals and you can see the range of premium pressure equipment that Intervention Rentals has by visiting www.interventionrentals.com or by reaching Nathan at nathanreid@interventionrentals.com

For more information visit www.interventionrentals.com

ENSURING COMPLIANCE AND ASSURANCE FOR ENERGY AND MARINE CLIENTS AROUND THE WORLD. www.annmcrobbassociates.com

Get in touch to see where Ann McRobb Associates can support your organisation

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• Training & Development • Auditing

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CONTINUING TO MAKE A POSITIVE DIFFERENCE

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Navigating the Waters of Risk & Safety Management: A Dive into ISO Standards with QHSE ABERDEEN In today’s dynamic business environment, organizations are constantly faced with an array of challenges that can impact their operations, employees, and the environment. As a Quality, Health, Safety, and Environment (QHSE) professional, it is crucial to establish robust systems that not only identify potential risks but also ensure the safety and wellbeing of all stakeholders. This is where International Organization for Standardization (ISO) standards play a pivotal role in shaping effective risk and safety management strategies.

ISO Standards in Risk Management ISO 31000:2018 - At the Forefront of Risk Management ISO 31000 is an international standard developed for risk management, crucial for the long-term success of organisations. It helps organisations assess and manage risks, ensuring operational continuity and resilience in terms of economic stability, professional reputation, and environmental and safety outcomes. This standard is adaptable for any organisation, regardless of size, activity, or sector, and is designed to increase the likelihood of achieving objectives, improve opportunity and threat identification, and optimise resource allocation for risk treatment. While ISO 31000 offers a comprehensive framework and process for managing risk, including principles for effective management and corporate governance, it is not intended for certification purposes. However, it serves as a valuable guideline for internal or external audit programs and allows organisations to measure their risk management practices against a globally recognized benchmark.

IEC 31010:2019 – Enhancing Decision-Making in Uncertainty

Integration of ISO Standards: A Synergistic Approach

IEC 3110 Complements ISO 31000 by offering specific techniques for effective decisionmaking in uncertain scenarios, enhancing the risk assessment process.

The beauty of ISO standards lies in their compatibility and complementarity. Organizations can achieve greater effectiveness by integrating various ISO standards into a cohesive management system. By harmonizing risk management (ISO 31000), occupational health and safety (ISO 45001), and environmental management (ISO 14001), organizations can create a robust QHSE system that addresses risks comprehensively.

The latest edition includes significant updates such as more comprehensive detail on planning, implementing, verifying, and validating the use of these techniques, and a shift to avoid repeating concepts covered by ISO 31000. The focus of this standard is on managing uncertainty and risk.

ISO 45001:2018 – A Beacon for Occupational Health and Safety ISO 45001 is the international standard for Occupational Health and Safety Management Systems (OH&S). This standard provides a framework for organisations to enhance employee safety, reduce workplace risks, and create better, safer working conditions. By implementing ISO 45001, organisations can systematically identify and manage occupational health and safety risks, fostering a culture of continuous improvement and employee well-being.

Benefits of Implementing ISO Standards in Risk & Safety Management Enhanced Risk Identification and Assessment: Systematic approaches for identifying and managing potential challenges. Improved Compliance: Alignment with international best practices and regulatory standards. Boosted Stakeholder Confidence: Demonstrating commitment to quality, safety, and environmental responsibility, enhancing the trust and confidence of stakeholders, including customers, employees, and regulatory bodies.

ISO 14001:2015 – Environmental Management in the Spotlight

Operational Efficiency: Cultivating continuous improvement, leading to better risk management.

Environmental considerations are a critical component of risk and safety management. ISO 14001:2015 provides a framework for Environmental Management Systems (EMS), helping organisations identify and control their environmental impact. By incorporating environmental considerations into their risk management strategy, organisations can not only comply with regulatory requirements but also contribute to sustainability and the preservation of the environment.

In in the fluid realm of modern business, managing risks and ensuring safety are critical to organisational success, ISO standards provide the compass for navigating these challenges, equipping QHSE professionals with the tools to build robust, resilient risk and safety management systems. The integration of ISO 31000, ISO3110, ISO 45001, and ISO 14001 is not just a strategy but a pathway to organisational excellence and sustainability 

For organisations looking for guidance or training on Risk Management, please contact us at www.qhseaberdeen.com/contact-us-iso-qhse/

Conclusion: Sailing Towards a Safer, More Secure Future

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Valve Position Feedback Add-on

INCREASE PLANT UPTIMES

Individual Isolation Valves Solenoid Valves

ROTEX 2oo3 Redundant Valve Systems Using 3 Solenoid Valves

“The most advanced redundant system available in the market” Visual Indicators Manifold

In the modern plant operations for the Oil, Gas and Chemicals market, maximising plant uptime is essential. Therefore, technology that can reduce downtime by increasing Hardware Fault Tolerance can have significant financial and operational benefits. It is very well known and documented how redundant control systems can improve both the safety and protect against unplanned shutdowns (spurious trips). However, redundancy also increases system complexity, and this will lead to increased engineering and also servicing costs maintenance downtime as these complex systems are maintained.

There are four common configurations:

 One out of One (1oo1) o Non redundant o No Safety improvement, HFT=0 o No Spurious Trip Tolerance, STT=0

 One out of Two (1oo2) o Improves safety performance, HFT=1, SIL3 o Increases chance of spurious trips o Common in upstream o Does not improve uptime

 Two out of Two (2oo2) o Reduces chance of Spurious Trip Tolerance, STT=1 o Therefore, improves uptime o Decreases safety performance o Common in downstream

www.ogv.energy I November 2023

 Two out of Three (2oo3) o SIL3 Rated – typical HIPPS o Improves safety performance, HFT=1 o Reduces chance of spurious trip, STT=1 o Therefore, improves uptime o Complex to engineer using discrete components o Traditionally required a minimum of four solenoid valves

Rotex, solenoid valve position feedback addon provides valve poppet position using Reed switches that gives true indication of solenoid valve position and speed of switching, which could also be used to measure the overall health of the solenoid valve. 

The Rotex RV323P is a unique (patent pending) 2oo3 redundant solenoid valve manifold system, designed to provide increased safety and availability using only three solenoid valves. This setup provides lowest infrastructure cost, just three control signals and a smaller number of feedbacks going back to the control room, which become significantly important for plants requiring Intrinsically Safe equipment as lesser number of Intrinsic Safe barriers are then needed reducing the cost even further. The individual solenoid valve isolation system allows the operator to test and replace (hotswap) the solenoid valves online without disabling the safety function. The truth table for these systems are much simpler and the diagnostics data is easier to understand and locate the problem in case of a solenoid valve failure. These systems use a smaller number of components providing highest safety and reliability.

For further Information, please contact: sales.europe@rotexautomation.com

OUR DIGITAL INDUSTRY

SPONSORED BY Jonathan Smith, Sword's Cyber Resiliance

Jonathan Smith

Technical Lead who has been in the industry for 11+ years. His role at Sword Ping involves working with our customers to help them design network and security to secure and

www.sword-group.com

connect their data.

KEEPING BACKUP AND RECOVERY SIMPLE In today’s fast paced world, with changing technologies, we know organisations are faced with the challenge of finding the balance between simplifying technology and designing technology solutions. Amongst other hurdles faced in an already diverse landscape, it’s important for us to keep evolving our environment so we can make the most of secure digital solutions which in turn guides data driven decisions. With the constant threat and risks to organisations, there must be a constant focus on security practices, threat playbooks and immutable backups & recovery.

Keeping backup and recovery Simple Backup and recovery are increasingly talked about in multiple different areas of information technology, business, resiliency, cyber security and risk management. Due to this, what used to be a conversation around backing up on-premise infrastructure is now filled with multiple acronyms and terminology which has expanded with the increase in cloud adoption. At Sword, we have regular conversations with organisations on keeping backup and recovery simple and ensuring that commonly adopted architectures are utilised and are in line with relevant industry frameworks.

So what is the end goal of backup and recovery?

What can be done? When we look to ensure our non-critical and critical data is available to us all we need is a solution that makes it simple to consume, simple to use and simple to secure. At a minimum, we want our data to be backed up with at least three copies of our data, in two different locations and at least one copy at an off-site location. Then we look to make sure that when this data is backed up, it can no longer be changed ensuring that we have data integrity. Modern-day backup solutions will then split the data into smaller groups at variable lengths to make the most of the storage space available. By utilising modern backup and recovery solutions that have been built with immutability, ransomware recovery and cyber secuirty at the forefront of the technology rather than as an afterthought gives organisations the confidence that their data is secure and accessible when it’s needed most. With cyber security recovery playbooks and incident response, we also want a solution that makes it simple to practice recovery and ensure that we are able to recover within a time that meets business requirements and goals whilst also providing insights into what could be contained within the backup. Does the backup contain a threat to the organisation, has the data been changed but also what information is contained in the data and does it contain personal information?

Final Thoughts

From experiencing incidents that require recovery first-hand, our team of experts always ensure that a solution is in place to provide our customers with the confidence that their data will be kept securely and available at all times. We work with customers to provide an array of security solutions to ensure organisations can continue achieving business outcomes without the burden of potential cyber threats and the damage that will inevitability be caused by these threats. Utilise

In its simplest form, backup and recovery is about having the correct technical solution and robust processes that can be utilised as part of recovery playbooks to ensure that an organisation can access their data when they need it most and this can span from simple emails to critical data and infrastructure.

Where does the complexity come from?

Complexity can come from things as simple as the modern backup and amount of acronyms utilised or the solution sprawl recovery solutions that that can be seen in older architectures. For example, have been built with a single conversation that touches on multiple acronyms like BIA, RPO, RTO, MPTOD, SLA, and BDR immutability, ransomeware can make a critical solution a headache for some recovery and cyber departments that not only look after backup and security at the fore front recovery but also the wider technology, security and of the technology risk management estate.

rather than an afterthought.

About Sword: As the North Sea’s largest provider of Data and Digital services, Sword focuses on solving the industry’s most critical business challenges by enabling our clients to capture, manage and utilise data to make informed decisions. This is supported by technology adoption and people engagement, together with modern ways of working to give confidence that the right decision is made every time

Having that knowledge and insight into backups allows us to understand what this environment looks like on a regular basis and ensures that when we are asked "How quickly can we bring this back online?" or "How quickly can we recover?" we can be confident that we don't need to rebuild to gain access or have specialist teams provide access to our customer’s data. 

For more information, visit www.sword-group.com

RENEWABLES

CORPORATE PARTNER

www.renewableuk.com

RenewableUK members are enabling a just transtion to a net zero future. Focusing on continuous improvement around the three pillars of our Just Transition Tracker - People, Place and Planet These inspiring companies are a true showcase of the best that our industry has to offer. A significant concern in any decommissioning operation is also the risk associated with Naturally Occurring Radioactive Materials (NORM) on subsea and topside structures or any production equipment requiring decommissioning. ASCO responds to this with our in-house specialist NORM teams, who can address the potential for NORM contamination, while ensuring the safety of personnel and the environment.

Lee Vettese

Gearing up to respond to the final stages of an asset’s life cycle Lee Vettese, UK Business Development Manager Environmental & Decommissioning at ASCO The year-on-year growth in demand for decommissioning services is only set to accelerate as an increasing number of subsea infrastructures approach their endpoint. With projects that once spanned a decade now being finalised within a matter of years, operators face radically shorter timelines, so a well-planned and coordinated approach to decommissioning is crucial. UK industry ambitions are to reduce the costs associated with decommissioning significantly in the coming years. To support this, service companies must demonstrate that they possess the specialist expertise required to efficiently tackle the unique challenges posed by an evolving energy mix. In other words, decisions need to be made quickly and competently.

www.ogv.energy I November 2023

With five decades of North Sea experience behind them, ASCO has cemented a leading role in providing solutions to the multitude of difficulties associated with decommissioning. One of the most prolific challenges service companies face during decommissioning today is having incomplete and outdated asset information. In the North Sea, for example, many of the end-of-life fields are more than 40 years old, meaning much of the available data is lacking in information and unsuitable for the requirements of modern decommissioning projects. It’s a hurdle, but not an insurmountable one. Reliable data analysis and continuous review of work in progress are instrumental in addressing the problem. Service providers such as ASCO, who deploy this data-driven approach, are overcoming that challenge and enabling operators to make well-informed choices.

Confirming that safety is paramount across its international locations, ASCO replicates this careful approach to hazardous substances in all its decommissioning activities. In relation to this, compliance with the rules and regulations across different countries is another factor that must be considered by all service companies involved in decommissioning. By establishing partnerships with in-country environmental companies, service companies can tap into local knowledge to ensure there are no delays in rolling out appropriate NORM handling. Growing competition with renewable energy sources is adding further complexity to the timely scheduling of decommissioning projects. Meticulous planning is at the heart of any successful decommissioning project and as part of the approach, companies must balance efficiency and thoroughness when dealing with time constraints. There is no quick fix or easy shortcut to the decommissioning process. The dismantling and repurposing of infrastructure must adhere to stringent environmental standards and comply with regulations. Having the ability to implement decades of experience from the UKCS in evolving projects to support this increasing demand will be instrumental in ensuring cost-effective, safe and efficient decommissioning activity. It is estimated that the global price tag for decommissioning internationally will reach tens of billions in the coming decades. It’s a hefty amount, but the cost to the environment of not getting it right the first time is immeasurable. 

To find out more visit www.ascoworld.com

RENEWABLES

Cerulean Winds signs Exclusivity Agreements for trio of UK floating wind sites Cerulean Winds, the UK green energy infrastructure developer, has signed three floating wind Exclusivity Agreements as part of Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round. Together these Agreements pave the way for the creation of the North Sea Renewables Grid, a basin-wide green power generation and transmission system that will supply energy to oil and gas assets, helping the sector to hit emissions reduction targets. At the same time the multi-billion pound project will provide early opportunities to the domestic floating wind supply chain. Cerulean is already in the process of putting the necessary contracts in place to deliver the North Sea Renewables Grid, and the project is progressing through the development phase. Dan Jackson, co-founder and director, Cerulean Winds, said: “This is a huge milestone in the creation of the North Sea Renewables Grid and we are incredibly grateful to Crown Estate Scotland for their support as we move to the next phase in delivering floating wind at an unprecedented scale in the UK. “FEED work will begin in earnest with our Tier 1 delivery consortium setting up the packages of supply chain contracts in 2024 that will allow us to build out this development.

To support this, we are also investing in new Scottish offices and in advanced talks with local ports and yards. “The oil and gas industry is required for UK energy security for years to come but must fulfil its decarbonisation commitments. The North Sea Renewables Grid will be a vital cog in achieving that, while also setting the pace for other floating wind farms to follow.”

Crown Estate Scotland’s INTOG round, the results of which were announced in March, was split into two halves – one for larger projects linked to oil and gas infrastructure and one for smaller scale innovation initiatives.

Independent analysis has shown that Aspen, Beech and Cedar – the three sites that will form the North Sea Renewables Grid – are expected to deliver over £10 billion combined in Gross Value Added (GVA) for the UK.

Humza Malik, Cerulean board member and CEO of Frontier Power, added: “Key to the North Sea Renewables Grid’s development has been its ability to dovetail transmission with generation. This is a significant milestone and huge credit must go to Crown Estate Scotland for their shepherding of the process.

Across the development, construction, operational and maintenance phases the project is expected to create over 5,000 jobs in Scotland, with first power being targeted for 2028.

“This project will deliver vast benefits to the Scottish and UK offshore wind supply chains and - alongside our contractor consortium - we are already in advanced talks with strategic suppliers.

In the coming decade hundreds of floating turbines will be installed in waters off Scotland and the UK, and ensuring local companies realise maximum economic value from these projects will underpin a successful energy transition.

“We all know that green jobs will be the future of the energy industry, and the North Sea Renewables Grid will have a big hand in delivering this long-awaited boom.” 

For information about membership, upcoming events or to join, please visit www.renewableuk.co.uk

CONTRACTS

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

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.

Equinor awards well testing services contract to Expro

Italy's Saipem wins contracts in Brazil and Guyana worth $1.9 billion

ROME, Nov 29 (Reuters) Italian energy engineering and infrastructure company Saipem (SPMI.MI) has won two offshore contracts in Brazil and Guyana worth around $1.9 billion in total, it said on Wednesday.

Oil and gas company Equinor has awarded a contract to US-based Expro to offer well testing services on the Norwegian Continental Shelf. As per the corporate frame agreement, Expro will undertake the well testing work across the Barents, Norwegian and North seas. The scope of the four-year contract includes production optimisation and well flow management. Expro said these services will improve Equinor’s assets in production, abandonment, completion and intervention activities. The energy services provider’s CoilHose light well circulation system (LWCS) will be used to perform hydraulic intervention well work as part of the work scope.

Expro Europe and sub-Saharan Africa regional vice-president Iain Farley said: “The contract award is an excellent example of how we continue to build on our collaborative engagement with Equinor.

In Brazil, Saipem was awarded a contract by Equinor (EQNR.OL) for the Raia project, which envisages the development of a pre-salt gas and condensate field in the Campos Basin, located about 200 kilometres offshore the state of Rio de Janeiro, a statement said.

“The ongoing seven-year contract has allowed us to work together to drive value through production optimisation that encapsulates our ability to reduce our carbon footprint at all stages of project delivery.

The project is one of Brazil's most important gas development initiatives and could cover 15% of the total domestic gas demand of the country, Saipem said.

“We take pride in employing a local workforce in Expro Norway AS and will continue to invest in our people, bringing new talent to our operational team, to continue to deliver the performance this important client expects of Expro.”

In Guyana, it was awarded a contract by Exxon Mobil's (XOM.N) subsidiary ExxonMobil Guyana Limited for the proposed Whiptail oilfield development located in the offshore Stabroek block. 

The contract includes three two-year options and builds on the earlier seven-year agreement with Equinor.

In June 2023, French energy major TotalEnergies awarded a $30m (€27.48m) well intervention and integrity contract to Expro for the Tilenga project in Uganda.

A clear commitment to a low-carbon plan is a prerequisite for a large amount of the contract, Expro noted.

Before that Harbour Energy selected Expro for a decommissioning project on the UK Continental Shelf.

The value of the new contract was not disclosed.

The multi-year contract from Harbour Energy was valued at $20m (£15.98m). 

www.ogv.energy I November 2023

CONTRACTS Aquaterra Energy lands platform repurposing contract for trailblazing Project Greensand

Aquaterra Energy, a leader in global offshore energy engineering solutions, has secured a contract with INEOS, one of the world's largest chemical and oil and gas producers, and emergent Carbon Capture and Storage operator. Aquaterra Energy has been contracted to support with the life extension of an existing offshore platform for CO2 injection as part of the Project Greensand CCS development, offshore Denmark. Greensand is the most mature CO2 storage project in Demark. It aims to store up to 1.5 million tonnes of CO2 per year by 2025, making it a key project in meeting the International Energy Agency’s sustainable development scenario goal of 5,635 megatons of CO2 stored globally

per year by 2050. The CO2 will be captured from European emitters and transported to the platform located in the North Sea. It will then be sent underground via the existing offshore platform to be stored permanently in a sandstone reservoir 1,800 meters below the seabed. Awarded through a competitive tender, the contract will see Aquaterra Energy working with INEOS to support the repurposing of the Nini platform for CO2 injection until 2045. Aquaterra Energy will deploy its expertise in offshore platform structural analysis, brownfield engineering and asset life extension to determine the viability of the structure and guide the implementation of any necessary modifications. The Nini platform represents the initial project stage and will serve as the basis for the adaptations of further nearby platforms, in later phases of the project. Commenting on the contract win, James Larnder, Managing Director of Aquaterra Energy, stated: "Project Greensand stands at the forefront of CCS deployment, so this also marks a pivotal moment in our own CCS journey. A key part of Aquaterra Energy’s growth strategy has been leveraging our deep oil and gas expertise to fast-track new offshore energy initiatives and Greensand represents an ideal opportunity for us to continue this. We're excited about the prospects of further supporting the CCS sector, especially as innovative projects like Greensand come online." Anne Haase, Renewables Director at Aquaterra Energy, added: "CCS is set to be a game-changer in the global transition to net zero. Over the past few years, we've been honing our skills and knowledge to really make a mark in the sector. This project is a fantastic opportunity for us to combine our rich offshore heritage and energy expertise to facilitate large-scale CO2 storage. Being a part of Project Greensand is really exciting - it's an ambitious project leading the charge in implementing CCS at the speed and scale we need." 

Vestas wins 270-MW turbine order from Engie unit Turbines maker Vestas Wind Systems A/S (CPH:VWS) has secured a 270-MW order from Engie North America for an undisclosed wind farm project to be executed in the US.

Deliveries are scheduled to start in the third quarter of 2024, while the site is set to be launched in operation in the first quarter of 2025, Vestas said in a statement released today.

The Danish firm has been contracted for the supply, delivery and commissioning of 60 of its V163-4.5 MW machines. It has also been tapped to service the turbines for 20 years.

Earlier this week, Vestas said it has been tapped for another undisclosed US project. That contract was for 53 turbines with a total capacity of 239 MW. 

Saipem secures Mexico jackup rig extension with Eni Italy’s Saipem has secured an 18-month contract extension from Eni for the jackup rig Jindal Pioneer.

The option taken by Eni will keep the rig working in the Gulf of Mexico into early 2025. The Lamprell-built unit is being chartered from India’s Jindal Drilling & Industries. The rig has been on contract to Eni offshore Mexico since the first quarter of 2019. 

More new contract news available @ www.ogv.energy/news/contracts

CONTRACT AWARDS SPONSORED BY

LEGAL

Avoiding a claims landscape means partnering not positioning

rice inflation, human resource scarcity and increased demand for domestically sourced energy have all combined to change the landscape for conducting business in the UKCS. The impact of the Covid 19 pandemic, accelerating retirement decisions in the labour market, combined with the renewed desire for domestic energy security have turned the dial towards 'challenging' when looking to complete projects on time and on budget. And all of that against an uncertain political landscape on future investment, with divergent positions on the grant of new licences between the two main Westminster parties, following on the back of turbulent economic times that unleashed inflation with the inevitable impact on the supply chain. Project teams have their work cut out for them. It's no secret that changes in the supply side of the market often lead to disputes. It will only be a matter of time before inflationary impacts express themselves in disagreements between contractor and client over payment, often masquerading as variation claims. Similarly, contracts will be dusted down with a view to attributing risk, with force majeure clauses in particular being carefully scrutinised to see whether they allow better outcomes for one or other of the parties involved.

Ken MacDonald partner, Brodies LLP

Whilst courts and other forms of dispute resolution measures can, through robust positioning by parties, lead to imposed decisions, these can often be unsatisfactory as monetary damages do not lead to implementation of contracts or project delivery. Formal disagreements do not engender cooperation in projects with many disputes becoming terminal to pre-existing business relationships. A victory in court or at arbitration may be pyric where counterparty insolvency ensues, and things only get significantly worse if you lose. The better way, if possible, is early collaboration and mutual problem solving, often with some degree of pre-agreed risk

sharing, to ensure parties on projects are working towards the same goals and have the same incentives in play. Honest conversations about risk allocation including what types of risk are best borne by which party are desirable to ensure the right behaviours on projects. The use of incentives in contracts must be carefully considered as these often result in unintended consequences during project execution. Formal bidding processes are inevitably time consuming and expensive (particularly so for the unsuccessful bidders). The prize to be grasped is earlier delivery of projects to allow revenues to flow for the benefit of the client. This can be achieved by partnering with contractors to agree win-win outcomes and cultivating an approach where joint problem solving is encouraged. Harnessing the talent of two teams is always better than one. Inevitably in the best of relationships, deadlocks require resolution. The goal is to achieve that without harming the ability for effective project collaboration. That is best done by creating clear contractual steps, setting out a process for timely and effective resolution, and encouraging discussions at project level which focus on common interests, not positions. Ken is an expert in commercial dispute resolution, for more information visit brodies.com.

DECOMMISSIONING

SPONSORED BY

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.

Decommissioning champions of North Sea revealed as award winners announced

The top UKCS decommissioning players have been revealed as the OEUK Awards for Excellence in Decommissioning were announced at a gala dinner as part of the annual Decommissioning Conference held in St Andrews. The awards recognise companies that have performed to an exceptional level within the offshore decommissioning industry. The award criteria can cover any aspect including project execution, design, innovation, HSE, cost performance and contribution to the energy transition. A total of six entries were shortlisted which recognise operator and supply chain companies that are leading the way in how the UK industry approaches decommissioning projects. Spirit Energy was named winner in the operator category, sponsored by PDi, and praised for its work on the Morecambe gas fields. The company is at the forefront of contributing to the energy transition, having identified the future potential of its Morecambe gas fields and having secured the license to repurpose the North and South fields into a worldleading facility.

www.ogv.energy I November 2023

This will provide a permanent decarbonisation solution for the industry, able to accept up to 1 gigaton of CO₂ in its lifetime – the equivalent of three years’ worth of UK emissions. Utility ROV Services was announced as the winner of the supply chain category, sponsored by the North Sea Transition Authority, and hailed for making a significant commitment to the North Sea. The company has invested heavily in next generation tooling to enable a 30% cost reduction when performing subsea infrastructure removal. Both companies were commended for their excellent work in the decommissioning sector across 2023 respectively. Commenting on the announcement, OEUK’s Decommissioning Manager Ricky Thomson, said “Our awards bring together people who have made a difference in the UK’s offshore decommissioning sector. We would like to congratulate to the winners of these two

awards whose work this year demonstrates what the decommissioning sector has to offer. “We had a fantastic calibre of nominations and finalists, and they are all a real reflection of the great talent and expertise of our energy communities – those that personify the innovation the North Sea decommissioning sector has become known for. “I am delighted to see this recognition of their accomplishments in decommissioning, all while driving industry toward its net zero goals and transitioning the UK towards a sustainable future.” The awards were presented by Kirstie Langan from PDi (sponsors of the operator category) and Pauline Innes from the NSTA (sponsors of the supply chain category).  READ MORE DECOMMISSIONING NEWS ON OUR WEBSITE WWW.OGV.ENERGY x

DECOMMISSIONING Well-Safe Solutions ink bp global master agreement for well engineering and decommissioning support services Matt Jenkins, Chief Operating Officer at Well-Safe Solutions, said: “Following on from our work with bp decommissioning wells in the North Sea’s Kate field earlier this year, we are delighted to have been awarded this agreement. “This multi-year contract will see us deploy our Well Decommissioning Delivery Process (WDDP), which guides operators through the well plug and abandonment process efficiently and safely.

Global well plug and abandonment specialists Well-Safe Solutions has agreed a global master agreement with bp lasting until at least September 2026, with two one-year contract extension options available. The agreement will see the well decommissioning specialists provide bp with project management, well engineering, engineering design and well decommissioning services.

Subsea7 awarded decommissioning contract in Brazil

“Our commitment to safe, smart and efficient decommissioning will enable us to deliver bespoke solutions tailored to bp’s well stock, including the possibility of utilising the Well-Safe Guardian, Well-Safe Protector or Well-Safe Defender plug and abandonment rigs.” This contract announcement is the latest in a busy year for Well-Safe Solutions, which recently announced the creation of the Well-Safe Resources service line in August 2023 and the appointment of Steve Combe as Consultancy Manager.. 

Spotlight: Brazil’s offshore decommissioning Petrobras unanchored the P-32 FPSO in the Campos basin Marlim field on November 23, as the first floating platform to follow the new model for the sustainable disposal of vessels adopted by Petrobras. The floating production unit will be recycled by the Ecovix (Engevix) group at the Rio Grande shipyard in Rio Grande do Sul state, with the scrap going to steelmaker Gerdau. Another 11 floating units will follow the same guidelines over the next five years.

Subsea7 announced the award of a sizeable contract by Shell for the decommissioning of subsea infrastructure associated with the FPSO Fluminense in the Bijupirá and Salema fields of the Campos Basin, at 700m water depth. Subsea7’s scope includes the disconnection, recovery, and disposal of 10 flexible risers, three umbilicals and nine mooring lines. Offshore works are planned to start in December 2023. Yann Cottart, Subsea7 Brazil Vice-President, said: “Twenty years ago, Subsea7 installed the flexibles and umbilicals for Shell’s Bijupirá and Salema fields and, two decades later, we’re proud to be one of Shell’s chosen contractors to take part in the completion of this field’s life cycle.” 

The platform's recycling plan, drawn up by Gerdau-Ecovix, includes everything from the first procedures for receiving the unit, through the dismantling work, which will take place in a dry dock, to the final disposal of the waste resulting from disassembly. Petrobras' 2024-2028 business plan foresees an investment of US$11.4bn in decommissioning projects. Of the total capex, 71% will be directed to the Campos basin, 23% to the north and northeast regions, 5% to the Santos basin and 1% to other basins. There will be 23 platforms decommissioned, 14 of which are floating and nine fixed, as well as approximately 1,900km of flexible lines (subsea pipelines) and 550 wells. After 2028, Petrobras estimates that another 40 platforms will have to be decommissioned, 35 of them fixed and five floating. 

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STATS & ANALYTICS

Offshore Field Development Update Offshore O&G-related engineering, procurement and construction (EPC) contract award value year-to-date is estimated at US$33.2 billion, excluding letters of intent (LoI). The key highlight during the period under review is the EPCI contract award to McDermott in consortium with Petrovietnam Technical Services Corporation for the package-1 work scope for PetroVietnam's Block B project offshore Vietnam. The contract value, estimated at over US$1 billion, includes a large central processing platform, with a 20,000-tonne topside on a fixed steel jacket, a living quarters platform, a flare tower and a link bridge. The contract for package-2, which includes multiple wellhead platforms and a 26-inch 300km subsea pipeline, is expected to be awarded before the end of 2023. Still in Vietnam, Murphy Oil announced FID on its Lac Da Vang field. The contract award for the field's fixed platform and associated floating, storage and offloading (FSO) is expected to be confirmed before the end of 2023. In October 2023, TechnipFMC announced a contract award from Woodside Energy to manufacture and supply flexible pipes for infield flowlines and jumpers for the Trion project offshore Mexico. However, the contractor stated that the award was included in its 3Q 2023 inbound orders. In its 3Q 2023 earnings report, Baker Hughes announced it secured a contract for 11 deepwater horizontal trees, four manifolds and subsea controls from a sub-Saharan African operator for a project in Angola. This subsea tree award brings Westwood's unit award count year-to-date to 252 units, with an additional 34 units expected to be contracted before the end of the year, bringing forecast 2023 subsea tree unit awards to 286 units, a 4% decline compared to 2022. Other key awards recorded in the last 30 days include a US$73.8 million contract awarded to Harland & Wolff by Cenovus Energy for the upgrade work scope for the Sea Rose FPSO to be reinstalled on the White Rose project offshore Canada. Looking forward, Westwood forecasts an additional US$13 billion of offshore O&Grelated EPC award value for the remainder of 2023, bringing the total expected EPC contract award value in 2023 to just over US$46 billion. This represents a 38% downward revision compared to Westwood's January 2023 outlook, given delays to contract award timeline to major projects such as Petrobras' P-81, SEAP-2 and Albacora Replacement FPSOs, Saudi Aramco's CRPO 88 and 89 and Qatar Energy's North Field South project. Offshore Drilling Rig Update The global committed jackup count averaged 411 units in October. The marketed available and cold-stacked jackup counts now stand at 29 and 56, respectively, with marketed committed utilisation and total utilisation at 94% and 83%, respectively. During the month, a total of 18 contracts were awarded and two options were exercised, amounting to 8,823 days (24.2 rig years) of backlog added. Six Valaris jackups were contracted this month, including the Valaris 72 55-well P&A campaign with Eni offshore the UK. The global committed semisubmersible count came in at 67 during October. There are 12 available and 16 cold-stacked rigs remaining in the fleet. Marketed committed and total utilisation dropped to 85% and 71% during the month, respectively. One contract was awarded this month, where the Borgland Dolphin will be drilling for Oil India on a 14-month programme in Block KK-OSHP-2018/1. Finally, the drillship count decreased by one unit to 82 during the month, leaving three marketed units available plus 12 cold-stacked units. Marketed committed and total utilisation increased to 97% and 85%, respectively. Three new contracts were awarded, where Noble Globetrotter I and II will remain drilling for Shell in US waters until 1Q 2024. Offshore Wind Update Since the last update, Shanghai Electric signed an engineering, procurement and construction (EPC) contract for the supply of 12 SEW8.5-230 turbines at the 102MW Dadaepo wind farm, located offshore South Korea. In other news, Orsted announced that it has taken FID on the 407MW Revolution Wind 1 - Phase 1 and 308MW Revolution Wind 1 - Phase 2 projects, located offshore Rhode Island and Massachusetts, USA. Copenhagen Infrastructure Partners (CIP) and SK E&S also took FID on the 99MW Jeonnam Sinan Phase 1 wind farm, located offshore South Korea. Dominating headlines was news that Orsted has decided that it will no longer move forward with the development of the 1,104MW Ocean Wind 1 and 1,148MW Ocean Wind 2 projects located offshore New Jersey, USA. Orsted's decision was prompted by additional supplier delays that have further affected the project schedule. Moreover, the deterioration of the business case was driven by increases in long-dated US interest rates. Finally, three projects were provisionally selected by the New York State Energy Research and Development Authority (NYSERDA) in the state’s third offshore wind solicitation round. The projects are the 1,404MW Attentive Energy One, 1,314MW Community Offshore Wind and 1,314MW Excelsior Wind. Offshore Wind Renewable Energy Certificates (ORECs) will be granted to each project for a period of 25 years. The OREC's will include an inflation adjustment mechanism to compensate for changes in construction costs until FIDs are reached for the projects. 

www.ogv.energy I November 2023

STATS & ANALYTICS PROVIDED BY

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

www.westwoodenergy.com

Offshore Energy Services Dashboard October/November 2023

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