OGV energy Magazine Issue 85

OCTOBER 2024 - ISSUE 85

DRILLING & WELLS

GLOBAL ENERGY NEWS ENERGY PROJECTS MAP DRILLING & WELLS LEGAL RENEWABLES CONTRACT AWARDS DECOMMISSIONING STATS & ANALYTICS EVENTS

Shaping the future of wells across the global energy transition READ ON PAGE 4 

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ELEMENTAL ENERGIES

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THE E.I.C. PROJECTS

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STENA DRILLING

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LEYTON

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FUJIFILM

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QHSE ABERDEEN

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STATS & ANALYTICS

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PTS SERVICES

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EXCEED

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ATPI

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A WORD FROM OUR EDITOR Welcome to the October issue of ‘OGV Energy Magazine’ where we explore the theme of Drilling & Wells. A big thank you to our front cover partner Elemental Energies, who discuss shaping the future of wells across the energy transition on pages 4 & 5.

We are delighted to showcase other contributions in this months issue from Fujifilm, PTS Services, Intervention Rentals, Stena Drilling, QHSE Aberdeen and Exceed. The rest of this month’s magazine as always provides you with a review of the Energy sector in the North Sea, Europe, Middle Eas and the USA along with articles from Brodies LLP and Leyton. Updated industry analysis and project updates from Westwood Global Energy Group, the EIC and Renewables UK. We hope you enjoy this jam packed publication.

Warm regards, Dan Hyland - Director

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

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SHAPING THE FUTURE OF WELLS ACROSS THE GLOBAL ENERGY TRANSITION Mike Adams, CEO, Elemental Energies

The North Sea has long been synonymous with energy resilience and innovation, powering both the UK and Norway through decades of global energy leadership and oil and gas production. Today, both countries, and the North Sea sector as a whole, are balancing decommissioning with the need for energy security, while at the same time, opportunities are expanding across carbon capture and storage (CCS) and renewables, signalling a new phase of complexity for the industry.

www.ogv.energy I October 2024

COVER FEATURE

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s the global energy landscape diversifies, operators—including some of the largest industry players—are increasingly dependent on a supply chain that can deliver the technical expertise required to navigate these emerging considerations. With the diverse demands of decommissioning, CCS, and renewable energy projects, operators need partners that not only possess deep expertise but also the size and flexibility to deliver on major projects.

The need for scale To meet these demands, it has become essential to merge supply chain expertise across sectors and geographies. Fragmented knowledge spread across different companies or siloed in specific sectors, only adds complexity to the challenges operators already face. While the North Sea remains a focal point, it is part of a broader global energy landscape where operators need well management partners capable of matching their own geographic scale and requirements.

At Elemental Energies, we have made it a core focus to consolidate capabilities, through strategic partnerships, from across the supply chain. This strategy ensures our solutions are not only comprehensive but also scalable to meet the diverse and evolving needs of operators, regardless of where they’re working.

Consolidating expertise for the future of the sector In response to these pressures, we recently completed the strategic acquisition of Norway’s Well Expertise AS, forming one of the world's largest specialist wells, subsurface, and project management companies, boasting more than 230 experts worldwide. Since its founding in 2016, Well Expertise has become Norway’s leading well management company, with offices in Stavanger, Trondheim, and Kristiansund. The company has built a reputation for investing in its people, building long-term client relationships, and supporting digital well delivery.

With a focus on cutting-edge digital solutions, it was the perfect fit for our strategy to provide consolidated, intelligent, and global wells support—exactly what the industry needs to tackle the challenges it faces. By integrating advanced technologies into well operations, from data analytics to digital well monitoring, we can ensure that operators benefit from increased efficiency and reduced operational risks.

Two sides of the same sea Norway’s stable policy environment and diverse mix of activities—from decommissioning to exploration, new oil and gas developments, and ongoing production—makes it a critical player in securing Europe’s energy supply. Its continued focus on production reinforces the importance of drilling operations in maintaining energy security and will play an essential role as Norway, and the countries it exports to, navigate their own energy transitions, with investments into renewables and CCS. By December 2023, Norway’s oil production had grown to average 2.1 million barrels per day, up from 1.9 million barrels per day in December 2022, further solidifying its role in delivering Europe’s energy needs.

Well Expertise’s strong presence in the region was a pivotal factor in our acquisition, allowing us to drive innovation and growth not only across Norway but also throughout the broader North Sea. This acquisition strengthens our expertise in wells and drilling, positioning us to meet the evolving needs of the energy sector—from oil and gas to CCS and geothermal—ensuring we can provide operators with the scale and specialised capabilities they require.

Moreover, combining our expertise enhances our core services in the UK, where decommissioning has become an urgent priority.

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With the North Sea Transition Authority (NSTA) increasing scrutiny on operators to meet ambitious decommissioning targets, our expanded capacity allows us to support operators in both Norway and the UK to meet these regulatory and operational demands.

The global perspective While the North Sea remains a critical priority for Elemental Energies, the broad trends facing the region—decommissioning, CCS, production, and exploration—are mirrored across global markets such as APAC, the Gulf of Mexico, and Europe. Each of these regions comes with its own unique landscape, but the operational practices required—managing well integrity, ensuring regulatory compliance, and driving forward the energy transition—are common across all markets. That’s why it’s crucial for operators to partner with companies that not only deliver consistent well solutions but also bring the right combination of regional knowledge and project expertise to tackle the specific challenges of each market effectively.

Following this same strategy of consolidation and expansion, our March acquisition of Sentinel Group in APAC strengthens our technical capabilities by incorporating its extensive expertise in subsurface, reservoir and production engineering and advanced project management solutions. Sentinel’s proven expertise in optimising complex subsurface operations and their deep understanding of regional regulatory landscapes enable us to offer enhanced support to operators.

However, consolidation is only part of the solution.

Successful projects across diverse regions rely on collaborative partnerships with operators that can navigate local regulatory environments and unique technical demands. This cooperation ensures that projects are not only technically sound but also meet the rigorous environmental and safety standards set by regulators. Our ongoing work with Promethean Energy in the Gulf of Mexico, supported by the U.S. Bureau of Safety and Environmental Enforcement (BSEE), highlights how critical these partnerships are. By providing the necessary expertise and scale, while aligning the efforts of the supply chain with operators and regulators, we’re able to deliver projects that are efficient, compliant, and meet the highest safety standards.

The future of well management The energy sector is undergoing rapid transformation, driven by decommissioning, the growing demand for greater efficiency, sustainability and the need for energy security. Operators are increasingly seeking partners who can provide not only deep technical expertise but also comprehensive support at scale and the ability to merge traditional knowledge with new technologies.

At Elemental Energies, we believe the future of well management lies in the seamless integration of these capabilities. Our approach focuses on delivering comprehensive, cross-sector support that draws on decades of industry knowledge while embracing advanced digital solutions. This combination of experience and innovation ensures that we can help operators manage well operations safely and efficiently throughout their lifecycle, from decommissioning to the deployment of new projects.

Through strategic partnerships, acquisitions such as Well Expertise and Sentinel Group, and our ongoing collaboration with key operators and regulatory bodies, we are well-positioned to provide the expertise and resources needed to navigate the global energy sector's complexities.

By consolidating knowledge across geographies and sectors, we are not just meeting the challenges of today—we are actively shaping the future of energy on the global stage. 

Find out more at: elementalenergies.com

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COMMUNITY NEWS

COMMUNITY news

FIND ALL THE FULL COMMUNITY NEWS ARTICLES ON THE OGV ENERGY WEBSITE

Renquip Expands Global Presence and Achieves Strong Growth in 2024

ANYbotics Strengthens Presence in Oman Partnering with Sol7

RenQuip, a pioneering manufacturer of hydraulic and mechanical equipment, is proud to announce a period of significant growth and substantial global expansion. Building on years of consistent performance and strategic development, the company is set to surpass its revenue targets while reinforcing its presence in several key international markets.

Since being founded in 2021, RenQuip has demonstrated exceptional financial performance.

In 2022, the company outperformed its revenue projections by 20%, setting the standard for an impressive trajectory. This momentum continued into 2023, where RenQuip achieved a remarkable triple increase in revenue. As of 2024, the company has doubled its workforce to 14 dedicated team members and is on track to achieve a further 25% growth over the previous year. 

Scaling autonomous inspection for large facility operations in Oman in oil & gas, metals, and power utilities.

Zurich, 24 September 2024 - ANYbotics and Sol7 have joined forces in Oman to revolutionize industrial inspection. This alliance introduces ANYbotics' state-of-the-art robotic solution, ANYmal, which is customized to meet the requirements of Oman's key industries. By leveraging Sol7's local expertise, this collaboration promises a transformative leap in inspection capabilities that will reshape the regional inspection landscape and set a new standard for operational excellence.. 

3t expands global footprint with acquisition of Middle East’s largest energy training business, GTSC

Arcadis and COMET announce partnership to enhance EHS&S solutions for improved risk management Arcadis, a leading global design and consultancy organisation for natural and built assets, announces a partnership with COMET, a leading provider of risk control and assurance software. The combined strength of the partnership aims to enhance EHS&S risk management across a global client base.

In a landscape where many organisations struggle to optimise digital EHS&S solutions for resolving risks and enhancing organisational performance, Arcadis and COMET are ready to address this. By combining COMET’s intelligent, data-driven suite of analysis, audit, and investigation software, and Arcadis’s digitally enabled EHS&S expertise and services, the partnership will enable a wideranging client base to shine a light on past, present, and future risks – all integrated into their existing EHS&S landscape. 

www.ogv.energy I October 2024

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3t, the UK-headquartered leader for safetycritical sector training, has acquired GTSC from Al Mansoori Specialized Engineering, raising its profile in the Middle East.

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This deal closely follows 3t’s recent acquisition of ALL STOP! in the US, and further strengthens its presence in the world’s leading energy hubs.

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Backed by specialist private equity firm, Bluewater, this is 3t’s seventh acquisition and will see its revenues break the $100mn milestone, up from $25mn just six years ago. 

EthosEnergy Awarded Exclusive MSA by EDF EthosEnergy, which specialises in services and solutions for rotating equipment in the energy and industrial sectors, has been awarded an exclusive three-year master service agreement (MSA) by major electricity provider, EDF, for the maintenance of 20 heavy duty gas turbines (HDGTs) across France and its overseas territories.

The MSA, which includes an option to extend for a further three years, will see the company repair capital parts, supply spare parts and provide turnkey on-site services to EDF’s fleet of gas turbines, to unlock value through increased efficiencies.

EthosEnergy’s local team in the region will service this MSA, which will enable enhanced communication and close collaboration between the two companies. 

Control Valve Solutions Awards Major Contract to ScotAi for Integration of mAint™ - Smart Manuals Capability within its CVS Manager™ System Control Valve Solutions (CVS) Limited, an Aberdeen-headquartered specialist in the repair, maintenance, and management of bespoke Control, Isolation, Pressure Safety, & Emergency Shutdown Valves and related products, is delighted to announce the awarding of a significant contract to ScotAi for the integration of its innovative mAint™ - Smart Manuals capability within the CVS Manager™ system.

This aims to cement its position as a leader within the valve management sector, minimising production downtime, extending valve life expectancy and further improving support for CVS's customers. 

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UK North Sea

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Energy Review

By Tsvetana Paraskova

the period to 2029, compared to around £14 billion under the current regime.

The impact of the Energy Profits Levy (EPL), the future of major new planned oilfields, and the prospects for North Sea producers in well interventions featured in the UK oil and gas industry in the past month.

Offshore Energies UK (OEUK), the leading trade body for the offshore industry, published in early September an analysis on the impact of the planned hike of the Energy Profits Levy on industry.

The modelling, previously shown by OEUK to the Treasury, showed that increasing the headline rate to 78 percent, extending the levy for a year, and removing all allowances associated with EPL compared to the current regime would lead to a loss in economic value of around £13 billion compared to the economic contribution generated under the current windfall tax regime.

The loss would come from an expected reduction in investment by oil and gas producers into UK projects, with capital investments expected to fall to £2 billion over

www.ogv.energy I October 2024

OEUK has also estimated that approximately 35,000 jobs are at risk in 2029 alone due to projects not going ahead. Moreover, 63 percent of additional production that could be sanctioned under the current regime would be uneconomic under the future proposal in the long term. The UK would be more reliant on other countries to meet the UK energy demand at a cost to the UK economy and netzero goals, the trade body said.

“The assessment concludes that most discretionary investment in the sector will be curtailed if all allowances are removed, resulting in a rapid cessation of investment and eventual loss of critical infrastructure,” OEUK’s report reads.

Commenting, David Whitehouse, OEUK Chief Executive Officer said: “This paper shows that proposals to go further will trigger an accelerated decline of domestic production, and a corresponding reduction in taxes paid, jobs supported, and wider economic value generated.”

“Time is running out to mitigate damage that has already been done and to avoid further escalation. The Prime Minister promised to manage the North Sea in a manner that does not jeopardise jobs. We now need an honest conversation on how we can do this and need Government to work with the sector at pace.”

UK North Sea operators have expressed their frustration with the planned windfall tax hike, saying it would damage future investments in a strategically important industry.

Commenting on the first-half results, EnQuest chief executive officer Amjad Bseisu said, “We are disappointed with the ongoing application of the Energy Profits Levy despite operating in an environment where no windfall conditions exist. The current fiscal regime is causing irreversible damage to an indigenous and strategically important UK industry.”

According to EnQuest’s CEO, the UK energy industry needs a progressive tax regime

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that recognises the maturity of the North Sea and re-establishes the UK as a globally competitive investment basin.

EnQuest has to date invested over £4 billion in the UK and has the capacity and opportunities to do so again. However, “Given the prevailing tax regime, we are targeting UK portfolios with limited capital reinvestment programmes,” Bseisu noted.

Serica Energy’s new CEO Chris Cox said in the company’s first-half trading update that Serica’s producing assets remain cash generative despite “an unjustifiably punitive fiscal regime that may make future investment on the UKCS challenging.”

These assets would “remain cash generative, even after paying taxes at a rate of 75% today and due to rise to 78% from 1 November,” Cox added.

NEO Energy, for its part, plans to slow down investment plans across its portfolio in light of the fiscal and regulatory uncertainty in the UK. NEO, which owns 50% of, and operates, the Buchan Horst development project, said that “the government has announced a number of measures which have materially increased the level of uncertainty in relation to the UK’s oil and gas sector and investment decisions in this context are extremely challenging.”

Due to the tax and regulatory uncertainty, NEO and its 100-percent owner HitecVision have taken the decision to materially slow down investment activities across all development assets in its portfolio.

In relation to the Buchan Horst project, NEO awaits clarity regarding the UK regulatory and fiscal framework so that the full impact can be assessed. This will inevitably delay first oil timing of the project which was previously forecast to be late 2027.

As NEO warned, regulatory uncertainty has added in recent weeks to the fiscal uncertainty for UK North Sea operators.

The UK government said in late August it would introduce new environmental guidance for oil and gas companies, following the

UK ENERGY REVIEW

landmark ruling of the Supreme Court which requires regulators to consider the Scope 3 emissions of future projects when approving them.

The UK Supreme Court ruled in June that a local council unlawfully granted approval to an onshore oil drilling project as planners must have considered the emissions from the oil’s future use as fuels, in a landmark case that could upset new UK oil and gas project plans.

In the same communication in August, the government said it would not challenge the judicial reviews brought against development consent for the Jackdaw and Rosebank offshore oil and gas fields in the North Sea. Greenpeace and Uplift have sued to seek judicial reviews to stop the development of Rosebank and Jackdaw.

The North Sea Transition Authority (NSTA) launched at the end of August a consultation on publishing operator names earlier in the sanctions process, as well as publishing a new decommissioning league table.

It is part of an ongoing drive to further enhance transparency at the NSTA. Currently, a company under investigation is only named in the event of a sanction being issued.

If adopted, the new proposals would result in a company being named earlier in the process when an investigation is opened, or notice has been sent warning that a sanction is under consideration.

NSTA hopes that if the proposals are enacted, companies will be more motivated to fulfil their decommissioning obligations which will, in turn, benefit the supply chain by providing decommissioning contracts.

NSTA has also published its Wells Insight Report 2024, which highlights the significant opportunity available to operators who increase their well intervention activity.

The report found that well intervention is currently able to provide hydrocarbon production at a cost of less than £12/boe, a very attractive option at today’s oil and gas prices. In addition, well intervention requires fewer operational days, less construction material, minimal waste disposal, and lower fuel burn than drilling a new well, and therefore produces lower emissions.

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“Well intervention work can and does produce impressive results, boosting efficiency and providing cleaner and cost-effective production,” said Carlo Procaccini, NSTA Chief Technical Officer.

“We expect that bringing together operators with the supply chain will highlight significant opportunities for everyone.”

Firms in the UK offshore energy supply chain have urged action on the windfall tax impact and are seeking sector representation.

In an open letter more than 40 organisations said the tax hike, the removal of the investment allowance, and a reduction in capital allowances risk thousands of jobs, and the companies critical to the UK Government’s industrial strategy and progress towards its net zero targets.

“Time is running out to get this right. The role of the sector and its supply chain companies must be recognised with representation on the industrial strategy council and the supply chain task force,” the organisations wrote in the letter sent to Sarah Jones, Minister of State for Industry and Decarbonisation.

In company news, TotalEnergies announced in late August the launch of a pilot project consisting in a floating wind turbine to supply renewable power to the Culzean offshore platform in the UK North Sea, thus pioneering an innovative decarbonisation scheme. The 3-MW floating wind turbine, expected to be fully operational by end 2025, will supply around 20 percent of Culzean’s power requirement, thereby reducing its GHG emissions.

“This innovative pilot project aims at proving the concept of hybridization of power generation on an offshore facility, by integrating the generation of renewable electricity from a floating wind turbine with the existing power generation from gas turbines,” said Marie-Noelle Semeria, Chief Technology Officer at TotalEnergies.

“It also aims at qualifying a promising floater design for the future of floating offshore wind”, Swedish floating wind turbine developer SeaTwirl has signed a memorandum of understanding with Serica Energy to collaborate on exploring the feasibility of electrification of offshore assets and oil and gas activities with SeaTwirl’s floating wind turbine.

Last year, well interventions increased in the Northern North Sea (NNS) to 102 wells, up from 82 in 2022. There was also an increase West of Shetland (WoS) where nine wells benefited from intervention work in 2023 up from two in 2022.

However, Central North Sea (CNS), Southern North Sea (SNS), and the East Irish Sea (EIS) saw a decrease in activity, the regulator said.

Global Energy Group (GEG) has been awarded a contract from Subsea7 Norway to fabricate 134 Subsea Spools for the Aker BP-operated Yggdrasil Field Development in the Norwegian North Sea. The work will be executed from GEG’s energy facility at the Port of Nigg, one of Scotland's most important energy industry facilities.

Separately, the report revealed that total active well stock on the UKCS is now 2,546, down from 2,560 in 2022. The past year has also seen an increase in the number of shut-in wells to an all-time high of 31 percent of the active well stock, or 795, up from 742 in 2022.

“Our capabilities, expertise and capacity make us the leading fabrication partner of choice within the offshore energy industry, and this contract reflects the confidence placed on us by our valued clients,” said Dave MacKay, General Manager of Global Energy Group Fabrication at the Port of Nigg. 

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Europe Energy Review

By Tsvetana Paraskova

New gas production and development plans, the UK’s latest allocation round for renewable energy projects, and agreements on low-carbon energy solutions and technology featured in Europe’s energy sector over the past month.

Strait of Sicily, has been transported through a 60 km subsea pipeline to the Gela processing plant. Here it will be processed and then fed into the national grid, contributing to Italy's energy needs.

Production at the production project, operated

by Eni in joint venture with Energean, is carried out entirely under the sea, with no visual impact and near-zero emissions. An installation of 3.6 MWp of photovoltaic panels will ensure the project achieves carbon neutrality for Scope 1 and 2 emissions, Eni says.

Argo Cassiopea plays a central role in the Italian company’s strategy to boost the use of domestic natural gas for energy security and as a low-emission source.

Israeli company NewMed Energy has announced that the partners in the Aphrodite Field offshore Cyprus submitted for the approval of the Government of Cyprus an updated plan for development of the gas field.

The partners in the field are Chevron Cyprus Limited as operator with a 35-percent stake, BG Cyprus Limited with 35 percent, and NewMed Energy with 30 percent.

Oil & Gas Eni started in mid-August gas production from the Argo Cassiopea field, the most important gas development project in Italy.

The natural gas, coming from one of the four subsea wells drilled in recent months in the

www.ogv.energy I October 2024

Production and processing of natural gas from the field will be accomplished initially through four production wells connected to a floating production unit that will be positioned over the field, with a nominal maximum production capacity of about 800 MMCF per day, according to the Updated Development

and Production Plan. Natural gas will be exported from the floating production unit via a pipeline to the Egyptian transmission system.

Norway’s oil and gas production is set to decline after 2025, the Norwegian Offshore Directorate said in its annual resource report, noting that operators in the Norwegian shelf need to ramp up exploration efforts.

“This is why we'll need to ramp up exploration and investment in fields, discoveries and infrastructure moving forward in order to slow the decline in production,” said Kjersti Dahle, Director technology, analysis and coexistence at the directorate.

“A failure to invest will lead to rapid dismantling of the petroleum industry.”

Aker BP has started oil production from the Tyrving field in the Alvheim area offshore Norway, while a legal battle is under way about whether the field approval by Norway’s government is valid as it failed to consider the Scope 3 emissions from the project.

Low-Carbon Energy The Allocation Round 6 of the UK’s Contracts for Difference (CfD) renewables scheme was described as a success by both the government and industry, after dismal showing and renewable projects allocations in the previous round last year.

EUROPEAN ENERGY REVIEW

The UK’s sixth renewables auction delivered a record-smashing 131 clean energy projects for a total of 9.6 GW that would power the equivalent of 11 million homes, the UK government said in early September.

“The results are a marked improvement on the previous auction round in 2023, which saw zero offshore wind projects agreed,” the government noted.

Offshore wind projects won 5.3 GW in capacity in the auction, while solar projects totalling 3 GW also won capacity in AR6.

In offshore wind, 9 contracts were awarded, including securing both what will be Europe’s largest and second largest windfarm projects, Hornsea 3 and Hornsea 4 off the Yorkshire coast.

The auction also saw the largest floating offshore wind project in the world to reach market, Green Volt, which is double the size of Europe’s total installed floating offshore wind capacity.

and gas workers, unless we ensure that the towers, blades and nacelles needed for new wind farms are manufactured in the UK,” Unite general secretary Sharon Graham said.

“Not only has the government got to play catch up to meet its renewable energy targets, but it must also develop a UK wind manufacturing industry, or it is simply exporting green jobs abroad.”

Meanwhile, UK Prime Minister Keir Starmer and the First Minister of Wales, Eluned Morgan, pledged to “supercharge” the mission to make Britain a clean energy superpower.

Wales is on course to produce 1 GW of clean energy by 2040 – enough to power up to a million homes in Wales, helping reduce bills in the long term. The Welsh Government is also already working with The Crown Estate to unlock 1,000 sq km of seabed.

This will create new windfarms that have the capacity to produce up to 4.5 GW of renewable electricity, the UK government said.

The UK hit at the end of August a historic milestone of 30 GW of wind generation capacity.

The opening of SSE Renewables’ “The important takeaway from Viking Wind Farm on the this allocation round is that Shetland Islands boosted progress is being made, and it’s crucial that this momentum the country’s capacity by continues to grow,” 443 MW, taking the total past the 30 GW threshold.

“The important takeaway Duncan Clark, Total operational capacity from this allocation round Senior Vice President and Head of combined onshore and is that progress is being of UK & Ireland at Ørsted offshore wind in the UK now made, and it’s crucial that this stands at 30,299 MW, as tracked by momentum continues to grow,” RenewableUK’s EnergyPulse, the industry’s said Duncan Clark, Senior Vice President market intelligence service. and Head of UK & Ireland at Ørsted, whose Hornsea 3 and Hornsea 4 projects were Last year, renewables provided a record 46.4 awarded capacity in the allocation round. percent of the UK’s electricity, according to the latest statistics published by the Government The AR6 “shows that investor confidence in in July, with wind remaining the UK’s biggest the UK market is returning after the failure of source of clean power. Combined onshore last year’s auction, which attracted no bids and offshore wind power generated a record from offshore wind projects,” RenewableUK 28.1 percent of total electricity last year, said, commenting on the auction results. whilst accounting for more than 60 percent of electricity generated from renewable sources.

The success of this year’s auction “sends a clear signal that the UK is back in the global The UK’s pipeline of onshore wind projects at race for clean energy investment,” said all stage of development (operational, under RenewableUK’s Chief Executive Dan McGrail. construction, consented, in planning and preplanning) has grown by 4.2 GW over the past “This wide range of projects, across year, from 38.5 GW in September 2023 to 42.7 technologies, are vital steps in building a clean, GW now, a report by RenewableUK showed. affordable energy system and reducing our dependence on expensive fossil fuels.”

In company news, Equinor has signed a contract with Eidesvik Offshore for the In response to the auction, Unite, the UK’s conversion of the Viking Energy supply vessel leading union, called on the government to to ammonia operation, making it the world's tackle the manufacturing deficit in the country. first ammonia-powered supply vessel. It will “The government will continue to fall at the be fully converted and put into operation with first hurdle in providing a just transition for oil low emissions in 2026.

In addition, 6 new tidal projects also secured funding, building on the UK’s world leading position, with just under half of the world’s operational tidal stream capacity situated in UK waters.

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“We have an ambition to halve the maritime emissions associated with our Norwegian operations by 2030,” said Ørjan Kvelvane, Equinor’s senior vice president for joint operations support.

“We strongly believe in the use of ammonia as a fuel on our supply vessels.”

Italian companies Eni and Snam have launched Ravenna CCS, Italy’s first Carbon Capture and Storage project.

Eni and Snam began CO2 injection activities in the reservoir for Phase 1 of Ravenna CCS. Phase 1 of the project will capture, transport, and store CO₂ emissions from Eni’s natural gas treatment plant in Casalborsetti, in the municipality of Ravenna. Once captured, the carbon dioxide is transported to the offshore Porto Corsini Mare Ovest platform through reconverted gas pipelines. The CO2 will then be injected and stored at a depth of 3,000 metres in the depleted Porto Corsini Mare Ovest gas field.

“The capture and storage of CO2 is an effective, safe – and now available - means to reduce emissions from energy-intensive industries whose activities cannot be electrified,” said Eni’s CEO Claudio Descalzi.

German firm RWE has secured two sites with a total capacity of 4 GW in the North Sea in Germany’s latest offshore wind auction.

The company also boosted its power production and earnings from renewables to a record high in the first half of 2024.

“Our ‘Growing Green’ strategy is paying off - more than half of our adjusted EBITDA is already coming from our wind and solar energy business,” RWE chief executive Markus Krebber commented.

Lightsource bp looks to accelerate its growth in Germany by signing a 500-MWp development agreement with Kajoni Energie GmbH. Lightsource bp plans to realise a development pipeline of over 500 MWp in Germany over the next two to three years, focusing on projects of at least 20 MW. Wood has been awarded the front-end engineering design (FEED) stage of EET Fuels Hydrogen Fuel Switching project. Hydrogen will be provided by EET Hydrogen, Wood’s co-located Track One low carbon hydrogen production firm. Completion of FEED will enable EET Fuels to take a final investment decision (FID) on the hydrogen fuel switching project next year, the company said at the end of August. 

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14

HEADER

USA

Energy Review

By Tsvetana Paraskova

Chevron’s new oil project with breakthrough deepwater technology, ExxonMobil’s global energy outlook to 2050, the presidential race, and the prospects of the domestic energy sector have been the key themes in the US oil and gas industry in recent weeks.

Chevron’s Landmark Anchor Project US supermajor Chevron Corporation launched in August oil and natural gas production from the Anchor project in the deepwater US Gulf of Mexico, using an industry-first high-pressure deepwater technology. The technology is rated to safely operate at up to 20,000 psi, with reservoir depths reaching 34,000 feet below sea level.

The Anchor semi-submersible floating production unit (FPU) has a design capacity of 75,000 gross barrels of oil per day and 28 million gross cubic feet of natural gas per day.

The development will consist of seven subsea wells tied into the Anchor FPU, located in the Green Canyon area, approximately 140 miles (225 km) off the coast of Louisiana, in water depths of approximately 5,000 feet (1,524 m).

Total potentially recoverable resources from the Anchor field are estimated to be up to 440 million barrels of oil equivalent, Chevron says.

“The Anchor project represents a breakthrough for the energy industry,” said Nigel Hearne, executive vice president, Chevron Oil, Products & Gas. “Application of this industry-first deepwater technology allows us to unlock previously difficult-to-access resources and will enable similar deepwater high-pressure developments for the industry.”

This technological milestone could unlock the potential for a considerable amount of new production in the US Gulf of Mexico, energy consultancy Wood Mackenzie said.

“The US GoM has repeatedly proven itself as a hub for technological innovation and the deployment of the ultra-high-pressure technology puts the region once again at the forefront of a technology breakthrough,” Mfon Usoro, Principal Analyst at Wood Mackenzie, said.

“Chevron is leading the way to unlock ultra-highpressure reservoirs in the Inboard Paleogene, which have never been produced. The Inboard Paleogene will herald a new chapter in the US Gulf of Mexico,” added Usoro.

The operators in the US Gulf of Mexico could unlock more than 2 billion barrels of oil equivalent as companies continue to advance the commercialization of discoveries in the frontier play, WoodMac says.

“Production from the Inboard Paleogene has the potential to permanently change the landscape in the US GoM. Operators expect individual wells to recover at least 30 million barrels of oil equivalent,” Usoro said, adding that success in the play could extend the life of the basin.

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www.ogv.energy I October 2024

USA ENERGY REVIEW

US Liquids Production Surging to New Heights Meanwhile, US liquids production is soaring and will continue setting new record-highs, WoodMac said in an analysis in September.

In 2023, the US set a new global liquids production record, topping 13 million barrels per day (bpd) of crude and condensate output. WoodMac’s analysts expect this output to further rise to 14 million bpd by the end of 2026.

The biggest oil firms are raising their exposure to the US market. Over the first eight months of 2024, mergers and acquisitions (M&A) deals in the US upstream already exceeded two-thirds of 2023’s record US$130 billion, WoodMac noted.

“With more big sellers weighing an exit by yearend, another new high could be on the cards,” the analysts wrote.

There are three major factors driving US liquids output growth, according to Ryan Duman and Robert Clarke from Wood Mackenzie’s US upstream team.

The US has all the necessary foundations for growth, including huge resource potential, access to acreage and relatively stable fiscal frameworks, innovative and responsive supply chain, and better access to capital than in many other oil and gas jurisdictions.

“The investibility of the Lower 48 is supported by quick payback periods for operator investments, and the flexibility of business models to adapt to an ever-changing external environment,” WoodMac said.

The second driver of US growth is operators’ focus on innovation and operational efficiency.

According to the consultancy’s estimates, today, a US Lower 48 rig is 30 percent more efficient than two years ago.

The third success factor lies in operators using data and scale.

“Investments in data science and process technologies are optimising resource recovery, while scaling up portfolios through M&A is finally creating the massive contiguous lease blocks shale players have chased for a decade,” WoodMac’s analysts noted.

The US industry currently exhibits more data discovery, more emphasis on execution efficiency, and far more scale and capability in the sector than ever before.

While production growth is not expected to match the boom years, cash generation has huge upside, and supply declines would not be as soon or as steep as some observers who have underestimated the industry’s potential assume, according to Wood Mackenzie.

The upcoming US presidential election will be important, but not critical for the unfolding of the US upstream success story.

“Operators’ ambitions to convert poorerquality reservoirs and wells into economic opportunities should help shore up US supply, and put US energy security on even firmer ground,” WoodMac said.

Energy analytics provider Enverus has recently released its first Top US Drillers and Customer Rankings, which showed that Helmerich & Payne was the top land driller of Q1 2024 by footage and Exxon was the top US land drilling customer by footage. Among drillers, Helmerich & Payne was followed by PattersonUTI, Nabors Industries, Ensign Energy Services, and Precision Drilling Corporation.

Among the top US drilling customers, Exxon was followed by EOG, ConocoPhillips, Occidental, and Devon.

Exxon Sees Global Oil Demand Above 100 Million Bpd through 2050 US supermajor Exxon has published its ExxonMobil Global Outlook 2024, which expects oil and natural gas to continue to make up more than 50 percent of the world’s energy mix in 2050. The Global Outlook sees a plateau in oil demand beyond 2030, remaining above 100 million barrels per day through 2050.

“The demand for oil to make gasoline for passenger cars will drop by 2050. What many don’t realize is that making gasoline is but one relatively small use for oil,” Exxon said in its outlook.

“The large majority of the world’s oil is and will be used for industrial processes, such as manufacturing and chemical production, along with heavy-duty transportation like shipping, trucking, and aviation. These services are needed for modern life – and they also fuel future economic growth in the developing world,” the company said.

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according to the company, which is joining major producers from OPEC in the Middle East to call for continued investment and warn of the dire consequences if investment in new supply stopped, as many activists want.

Swing State Voters Back Policies to Encourage US Oil and Gas Production Voters in battleground states in the US presidential election express widespread support for policies that encourage domestic oil and natural gas production and limit reliance on foreign sources, according to polling in the swing states conducted by Morning Consult for the American Petroleum Institute (API).

The poll showed inflation remains a top concern for voters in Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin, and an overwhelming majority oppose vehicle mandates. In these swing states, 8 in 10 voters agree that producing more oil and natural gas in the US could help lower energy and utility costs for American consumers.

More than 8 in 10 voters agree that producing oil and natural gas in America helps make the country more secure against foreign adversaries, the poll showed.

Moreover, nearly 8 in 10 voters support advancing a sensible federal tax policy that encourages American energy production and strengthens the US economic and energy security.

“The U.S. continues to be a global leader in energy production, but the American people recognize that our leaders in Washington must advance an agenda to grow our nation’s energy advantage for decades to come,” API President and CEO Mike Sommers said, commenting on the poll. 

An Exxon sensitivity analysis showed that even if every new car sold in the world in 2035 were electric, oil demand in 2050 would still be 85 million bpd.

That’s the same as it was in 2010.

As the world’s demand for oil and natural gas remains strong, sustaining investment is more important than ever, Exxon said.

With no new investment, global oil supplies would fall by more than 15 million bpd in the first year alone,

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16

HEADER ENERGY REVIEW GLOBAL

MIDDLE EAST Energy Review

By Tsvetana Paraskova

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

The OPEC+ group led by the major Middle Eastern oil producers delayed the start of the easing of the production cuts by two months, while OPEC trimmed for a second consecutive month its forecast of global oil demand growth.

However, this plan was always subject to market conditions, the group warned as early as in June when it announced that a gradual easing of the production cuts is coming.

Following the market rout and major sell-off in oil prices at the end of August and early September, OPEC+ said it would postpone the start of the easing of the cuts. The latest plan also has the caveat that the production schedule for 2025 has been drafted with “the flexibility to pause or reverse the adjustments as necessary.”

Despite the announcement from OPEC+ on 5 September, markets appeared underwhelmed by the news.

“OPEC+ is likely hoping that sentiment turns more positive over the course of the next two months, allowing them to start bringing supply back to the market,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a commentary.

“However, the issue is that the oil balance is in surplus over 2025, suggesting that prices are likely to remain under pressure without OPEC+ taking longer term action.”

The OPEC+ alliance could also be waiting for the outcome of the US presidential election, ING’s strategists noted.

Elsewhere in the Middle East, the national oil companies of the United Arab Emirates (UAE), Qatar, and Saudi Arabia signed new deals to develop resources and boost digitalisation.

OPEC+ Delays Unwinding of Oil Production Cuts The OPEC+ alliance, which had planned to begin adding supply to the market in October, announced in early September that they would extend their additional voluntary production cuts of 2.2 million barrels per day (bpd) for two months until the end of November 2024, after which these cuts would be gradually phased out on a monthly basis starting 1 December 2024.

www.ogv.energy I October 2024

Oil prices did not rise following the decision of OPEC+, in a sign that market participants are focused on concerns about global oil demand, especially in China, the world’s largest crude oil importer.

OPEC also acknowledged weaker-thanexpected Chinese demand so far this year, for a second consecutive Monthly Oil Market Report.

The delay of the planned additions to OPEC+ supply was announced a week before OPEC cut – for a second month running – its forecast of global oil demand growth for 2024 and 2025. The downward adjustments in the September Monthly Oil Market Report were

minor, but were nevertheless indicative that the organisation may have overestimated demand growth.

OPEC now expects global oil demand to rise by 2.03 million bpd this year, down from its previous projection of 2.11 million bpd growth.

For next year, OPEC sees demand growth at 1.74 million bpd, a downward revision from 1.78 million bpd previously expected.

The revision of this year’s growth, which is now seen 80,000 bpd lower than in the previous report, was mostly due to actual consumption data received year-to-date, OPEC said.

The organization lowered its estimate of Chinese demand growth for 2024 to 653,000 bpd from 700,000 bpd.

“China’s oil demand is anticipated to expand by 559 tb/d, y-o-y, on average in 2H24. In 2024, oil demand is projected to grow by 653 tb/d, y-o-y, to average 17.01 mb/d,” OPEC said.

“However, headwinds in the real estate sector and the increasing penetration of LNG trucks and electric vehicles are likely to weigh on diesel and gasoline demand going forward,” the organisation dominated by Middle East’s top producers said.

Iraq’s Oil and Gas Output Increase Still Faces Challenges OPEC’s second-largest oil producer, Iraq, has seen significant investment in oil and gas production in recent years, but it still needs to overcome challenges including critical infrastructure development and a lack of exploration activity, analysts at Wood Mackenzie wrote in a recent report on Iraq’s upstream sector.

Iraq’s natural gas output could more than double by 2030 to reach 4.4 bcfd and oil production could hit 5.5 million bpd over the same period, according to WoodMac’s report.

Most of potential growth is set to come from large oil fields in the south, such as Rumaila, West Qurna, Zubair, and Majnoon.

Yet, operators in the changing corporate landscape in Iraq must overcome several

MIDDLE EAST ENERGY REVIEW

challenges, says Alexandre Araman, director at Wood Mackenzie.

“Corporate interest is increasing as there are multiple entry opportunities of scale. Many of the Majors are re-evaluating their presence – given the low returns on offer from historically punitive fiscal terms – with willing buyers in South East Asian NOCs and China’s statebacked players,” Araman commented.

However, “Operators must overcome several roadblocks right now if production is to be increased, most notably with infrastructure, as export pipelines and terminals, and water injection capacity is currently insufficient,” said Araman.

Operators also face fiscal issues with the high fiscal burden which have made creating value from barrels difficult and discouraged exploration investment, Araman added.

If Iraq addresses one of the least competitive fiscal terms in the Middle East, it could see more activity from Asian players as the corporate landscape in Iraq is shifting from West to East, according to WoodMac. “With improvements in fiscal terms and critical infrastructure, there should be a window of opportunity for more M&A activity and future production growth,” Araman noted.

Projects and Deals In company news, QatarEnergy has signed a 15-year LNG Sale and Purchase Agreement with Kuwait Petroleum Corporation (KPC) for the supply of up to 3 million tonnes per annum (MTPA) of LNG to the State of Kuwait.

This new agreement is the second long-term LNG deal between Qatar’s state energy firm and KPC, and is considered pivotal in further boosting bilateral trade between the State of Qatar and the State of Kuwait, QatarEnergy said.

Abu Dhabi’s national oil company ADNOC has signed a long-term Heads of Agreement (LNG agreement) with Indian Oil Corporation Ltd (IndianOil), India’s largest integrated and diversified energy company, for the

delivery of 1 million metric tonnes per annum of LNG from the Ruwais LNG project, which is under development.

Under the 15-year agreement, LNG cargoes will be shipped to IndianOil’s destination ports in India, predominantly from Ruwais LNG, which is expected to start commercial operations in 2028.

By 2029, IndianOil is expected to become ADNOC’s biggest LNG customer, with a total offtake of 2.2 mmtpa, comprising 1.2 mmtpa from Das Island and 1 mmtpa from Ruwais LNG, the Abu Dhabi company said.

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is expected to be the world’s largest of its kind upon start-up, capable of producing up to 1 billion cubic feet daily of low-carbon hydrogen, which is virtually carbon-free with approximately 98 percent of carbon dioxide (CO2) removed and more than 1 million tons of low-carbon ammonia per year. A final investment decision (FID) is expected in 2025 with anticipated start-up in 2029, Exxon said.

Italian engineering group Saipem has been awarded two offshore contracts in Saudi Arabia under its existing Long-Term Agreement with Saudi Aramco. The overall value of the two contracts is approximately $1 billion.

ADNOC also announced the deployment of an industry “New digital Under the first contract at leading AI-enabled process technologies such as the Marjan oil and gas field, Generative AI and the optimization technology.

Saipem will provide the Industrial Internet of Things Neuron 5 was developed engineering, procurement, are expected to transform

by ADNOC and has been construction, and not only how we work, initially deployed at ADNOC installation (EPCI) of three but also our commercial Onshore’s Northeast Bab production deck modules environment" (NEB) field and ADNOC Gas’s (PDMs), 33 kilometres of Taweelah gas compression subsea rigid pipelines, and 34 plant across hundreds of pieces of kilometres of subsea power cables. equipment.

The second contract – for the Zuluf and Safaniyah oil fields – involves the EPCI of The solution, which uses advanced AI models three jackets, five PDMs, 22 kilometres of and deep learning algorithms to predict subsea rigid pipelines, 5 kilometres of subsea maintenance needs and monitor equipment flexible pipelines, and 35 kilometres of subsea performance, autonomously monitors power cables. performance of critical equipment, enabling process optimization and preventative maintenance, reducing operational downtime, boosting efficiency, and reducing the need for time-consuming manual inspections.

Following the successful initial deployment, Neuron 5 will now be rolled out in all ADNOC facilities across thousands of critical pieces of equipment essential for production, including compressors, valves, and generators, the company said.

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

Contingent on supportive government policy and necessary regulatory permits, the facility

Saudi Aramco unveiled on 10 September new initiatives that aim to drive the development and deployment of advanced digital solutions across its operations.

“New digital technologies such as Generative AI and the Industrial Internet of Things are expected to transform not only how we work, but also our commercial environment. Aramco is pioneering the use of these technologies at an industrial scale to add significant value across our operations,” said Ahmad Al-Khowaiter, Aramco EVP of Technology & Innovation.

“Our history of innovation inspires us to continue harnessing emerging technologies and help realize the Kingdom’s ambitions to become a global AI leader.”. 

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BRENT OIL PRICES

OVER THE YEARS

1

YEAR AGO

1 year ago - $94.33 Oil prices jumped over concerns that the situation in Israel and Gaza could disrupt output from the Middle East. Whilst Israel and Palestinian territories are not oil producers, the Middle Eastern region accounts for almost a third of global supply. This was the biggest escalation between the two sides for decades.

5

YEARS AGO

5 years ago - $59.19 Greenpeace ended its occupation of oil and gas structures in the North Sea’s Brent field due to worsening weather. Protesters spent the night on the Brent Alpha and Bravo platforms, which were undergoing decommissioning.

Greenpeace were opposed to what it described as “thousands of tonnes of hazardous oily sludge” being left inside the legs of the platforms.

10

YEARS AGO

10 years ago - $88.66 There was a sharp drop in oil prices over the last month, with major repercussions anticipated for countries around the world. Since 2011, oil prices had stayed consistently high but they had dropped as much as 20% since June, with analysts suggesting it could keep falling in months ahead. The rises were put down to a number of output disruptions easing.

*Price correct at time of going to print.

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ENERGY PROJECTS MAP

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World Projects Map

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2 3 12

6

5

9

1 8 7

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www.ogv.energy I October 2024

ENERGY PROJECTS MAP 1

2

3

TRINIDAD & TOBAGO

USA

USA

NORWAY

Occidental Petroleum Corp.

$600 million

$500 million

Shell

OMV

VITO OFFSHORE OIL FIELD WATERFLOOD PROJECT

HAYDN/MONN GAS DISCOVERY

$250 million

$1 billion

EOG Resources Ltd

COCONUT GAS FIELD

OCOTILLO OIL DISCOVERY

bpTT and EOG Resources Trinidad Limited have formalised the creation of their partnership to develop the Coconut field, having announced a positive FID. The JV will have EOG as the operator, and start-up of the Coconut project is to occur in 2027. The concept design for the development of Coconut remains unclear at this time.

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Occidental,Murphy Oil and Chevron have discovered oil after drilling the Ocotillo exploration well in the US GoM Mississippi Canyon Block 40 area. The well is located in a water depth of 1,430 metres (4,705 feet). According to the developers, evaluation of results and planning are progressing towards FID. Ocotillo could be tied back to Occidental's Marlin TLP.

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OMV has made a new gas discovery in the Norwegian Sea via the wildcat well, 6605/6-1 S, Haydn/Monn, that was drilled in PL 1194 at a water depth of 1,064 metres. The well was drilled by the Transocean Norge rig and was terminated in the Nise Formation in the Upper Cretaceous.

Estimated total recoverable volumes are between 30 and 140 MMboe. The license partners will evaluate the discovery for a potential development to the nearby infrastructure.

Shell has issued a positive FID on Vito's waterflood project, which will aim to displace an additional 60 million barrels of oil equivalent in recoverable volumes from the Vito reservoir.

Completion will occur in 2027.

Subsea 7 has been contracted to undertake the EPCI of a water injection flowline, hull piping and associated infrastructure.

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SAUDI ARABIA

MEXICO

BRAZIL

INDONESIA

$7.2 billion

$2 billion

$5 billion

Saudi Aramco

Woodside

Petrobras

Eni

$9 billion

ZULUF FIELD DEVELOPMENT

SBM Offshore has been formally awarded the EPC contract for Trion's FSO. The new build platform, to be based on a Suezmax-type hull, will be owned by SBM Offshore and serve the field operated by Woodside under a 20-year lease.

Saipem has been awarded the engineering, procurement, construction, and installation (EPCI) contract for three jackets, five production deck modules (PDMs), 22 km of subsea rigid pipelines with a 16-inch diameter, 5 km of subsea flexible pipelines, and 35 km of subsea power cables. This new infrastructure will be installed in the Zuluf and Safaniyah oil fields.

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RONCADOR ENHANCED OIL RECOVERY PROJECT

TRION OIL FIELD

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SLB OneSubsea has been awarded a contract by Petrobras for the supply of two subsea production manifolds (SPMs), one electro-hydraulic distribution unit (EHDU) and spare parts to the Roncador field. The agreement sets a minimum requirement of 40% local content, and manufacturing of the equipment will start in Q1 2025.

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GENG NORTH GAS AND CONDENSATE DISCOVERY Eni reported that the authority has approved the PoD for the project. The integrated development of Geng North and Gehem will create a new production hub, named Northern Hub in Kutei Basin. The operator has launched the tender for a subsea production system.

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THAILAND

AUSTRALIA

TIMOR LESTE

CYPRUS

$250 million

$100 million

$250 million

$4 billion

PTTEP

Strike Energy

Finder Energy

Chevron

ERREGULLA DEEP-1 GAS DISCOVERY

KUDA-TASI & JAHAL OIL FIELDS

SIRUNG OIL AND GAS FIELD PTTEP plans to exploit the project through a hub development. The project is currently in the pre-FEED phase, with the operator aiming to establish a development plan by 2025, before taking the FID. The start-up date for the project is targeted for 2027.

Strike has announced a gas discovery through the drilling of the Erregulla Deep-1 exploration well. The Erregulla Deep-1 exploration well has intersected a total of 28m of net gas pay in 2 intervals: 26m in the Kingia sandstone and 2m in the High Cliff sandstone. Drilled to a depth of 5,22 m, it is the deepest well ever drilled onshore in Australia.

The Erregulla Deep-1 well is to be completed as a future producer.

Finder Energy has acquired a 76% operator interest in a project from Eni and Inpex, while Timor Gap retains a 24% share. The project is currently in the pre-FEED engineering phase and could potentially move to the FEED phase in Q4 2025. Finder Energy has prioritised the Kuda Tasi and Jahal fields for development. Petrofac has conducted preliminary concept studies and cost evaluations, identifying multiple viable development options, including a conventional subsea FPSO. Planned FID for the project is the end of 2026

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APHRODITE GAS FIELD Chevron submitted an updated development plan for the field on the 30 August. The field development would see four subsea wells connected to a floating production unit with a nominal maximum production capacity of 800 MMcf/d of gas.

Gas would then be exported to a new pipeline to the Egyptian transmission system via the FPU.

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DRILLING & WELLS

Global Oil and Gas Drilling Activity Rebounds International drilling activity is rebounding in all major regions as production and recovery investments and long-cycle development activity in the oil and gas industry have risen in recent years.

O

ffshore drilling and subsea well and field development have seen rising levels of investment and are set to see further growth in the coming years, analysts say.

As overall upstream oil and gas investment in 2024 is set to return to 2017 levels, companies in the Middle East and Asia now account for a much larger share of the total, the report found.

Moreover, upstream cost inflation cooled in 2023 and costs may fall marginally in 2024, which means recent investment trends translate into larger increases in activity, the IEA said.

The biggest oilfield services firms have also reported this year higher revenues and profits amid broad-based growth in drilling activity. This year has also seen increased consolidation in the drilling and well construction industry as the companies in the segment are looking to grow their current footprint and diversify into new energy businesses.

NOC investments in the Middle East and Asia have now risen by more than 50 percent since 2017, and these account for almost the entire rise in spending for 2023-2024.

In exploration, investment is expected to rise by 15 percent this year from 2023, thanks to higher spending in China and North America.

After the slump in consumption during the pandemic, continued demand for oil and gas, especially for resources outside sanctioned jurisdictions such as Russia, Iran, and Venezuela, has prompted exploration and production (E&P) companies to drill for more hydrocarbons internationally. As a result, investment has been rising and so has spending on offshore oil and gas projects.

Upstream Investments on the Rise Global upstream oil and gas investment is set to increase by 7 percent to reach $570 billion this year, following a similar rise in 2023, the International Energy Agency (IEA) said in its annual World Energy Investment report in June.

The growth in spending in 2023 and 2024 is predominantly driven by national oil companies (NOCs) in the Middle East and Asia.

www.ogv.energy I October 2024

Existing fields account for around 40 percent total oil and gas upstream investment, while another 33 percent goes to new fields and exploration. The remainder goes to tight oil and shale gas, according to the IEA’s estimates.

LNG is also set to attract a significant wave of new investment in the coming years as new liquefaction plants are built, primarily in the United States and Qatar.

Upstream investment in the oil and gas industry is now focused on projects that are considered viable even under challenging assumptions about future price and regulatory developments, typically through a combination of low costs and low emissions intensities, according to the IEA. Expenditure aimed at extracting value from existing fields is an important element of many strategies. It hit $200 billion in 2023 for the first time since 2019. Strong cash positions and a hunt for advantaged resources also explain the volume and types of mergers and acquisitions (M&A) activity in recent months, the Paris-based international agency noted.

Between 2021 and 2023, nearly $130 billion was spent on conventional oil and gas exploration. More than half of this investment took place in China, North America, Norway, and Russia. However, the largest discoveries were seen in the Stabroek block offshore Guyana in South America and offshore Namibia in Africa, the IEA has estimated.

Subsea Spending Is Also Increasing Global spending in the subsea market is expected to top $42 billion by 2027, Rystad Energy said in a report in August.

Led by increased operator expenditure on equipment and installation services, the subsea segment – which includes players involved in production and processing systems such as subsea umbilical risers and flowlines (SURF), trees, wellheads, manifolds and other components – is set to see a 10-percent annual compound growth rate (CAGR) from 2024 to 2027, with total spending anticipated to exceed $42 billion by the end of this period, the independent research and energy intelligence company said.

DRILLING & WELLS

Investment activity has been particularly robust in recent months in regions such as South America and Europe, where major projects are making significant progress and attracting new investment. Brazil also remains a focal point for subsea investments, due to its vast pre-salt reserves, driving strong demand for subsea equipment and SURF. From 2024 to 2028, deepwater developments are set to dominate the sector, accounting for 45 percent of the market. Significant greenfield projects include Barracuda Revitalization in Brazil, Johan Castberg and Breidablikk in Norway, and Golfinho in Mozambique. Key brownfield initiatives include Balder Future, Gullfaks South, and Schiehallion in Norway and the UK, according to Rystad Energy.

Ultra-deepwater projects, driven by major floating production, storage and offloading (FPSO) initiatives in Brazil and Guyana, are projected to capture 35 percent of the subsea market. Upcoming ultra-deepwater greenfield projects (beyond 1,500 meters) include Yellowtail, Tilapia, and Redtail in Guyana, as well as Buzios VIII, Buzios IX, Sepia, and Atapu in Brazil. Notable brownfield projects are Trion in Mexico, Egina in Nigeria, and Argos (Mad Dog Phase 2) in the US. “The subsea market has rebounded robustly from the impacts of Covid-19, which caused a significant 20% drop in expenditure in 2020.

By 2021, the industry began to recover, with spending increasing by 5% to reach $23 billion,” said Sanwari Mahajan, Analyst, Supply Chain Research, Rystad Energy.

“Looking ahead, we anticipate steady growth in the subsea sector, fueled by advancements in deepwater exploration and carbon capture and storage (CCS). This recovery highlights the industry’s resilience and suggests a promising trajectory of consistent progress.”

Top Oilfield Services Providers Expect Robust Growth in Activity The world’s largest oilfield services providers have recently reported higher secondquarter earnings, highlighting the robust growth in international drilling activity.

SLB sees an ongoing growth cycle with longcycle and deepwater projects amid rising adoption of digitalisation.

“Beyond 2024, the fundamentals of this cycle remain in place, and there is a long tailwind

of growth opportunities, including long-cycle gas and deepwater projects, production and recovery activity, and the secular trends of digital and decarbonization,” SLB chief executive Olivier Le Peuch said.

Another major oilfield services firm, Halliburton, sees strong demand for its services in the international markets it operates, high activity levels, and equipment tightness across all major basins.

Halliburton, a leader in US fracking services, saw its international business more than offset slowing North American revenues.

Baker Hughes also boosted its net income and revenue for the second quarter, compared to both the first quarter of the year and the same quarter of 2023.

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“Looking over the next few years, we see continued strength in gas infrastructure opportunities across the Middle East, U.S., Latin America, and Sub-Saharan Africa due to secular growth in global natural gas and LNG demand through at least 2040,” the executive noted.

Oilfield Services Groups Announce Large-Scale Mergers So far this year, the oilfield services sector has seen the largest merger transaction since 2016.

SLB announced in early April an agreement to buy ChampionX in an all-stock transaction with an enterprise value of $8.18 billion.

“Looking out beyond 2024, we expect global upstream growth to be led by Latin America and West Africa offshore markets and the Middle East – albeit at a decelerated pace,” Baker Hughes chairman and CEO Lorenzo Simonelli said on the Q2 earnings call.

“Our customers are seeking to maximize their assets while improving efficiency in the production and reservoir recovery phase of their operations,” SLB’s chief executive officer Le Peuch said.

“As the cycle matures, we expect our customers to increasingly focus on optimizing production from existing assets, providing significant growth opportunities for our mature assets solutions.”

“This presents a significant opportunity for service providers who can partner with customers throughout the entire production lifecycle, offering integrated solutions and delivering differentiated value.”

Baker Hughes also continues to believe that natural gas will be essential to meet growing power demand from generative AI, which will be additive to the growth required for new energy sources in the future, Simonelli added.

The deal is set to expand SLB’s presence in the less cyclical and growing production and recovery space that is closely aligned with our returns-focused, capital-light strategy, Le Peuch said.

ChampionX will complement SLB’s production offering and it is the sector’s biggest deal in eight years, according to analysts at Enverus.

In July, Helmerich & Payne announced an agreement to buy KCA Deutag International Limited for $1.9725 billion in cash.

The acquisition will establish H&P as a global leader in onshore drilling and raise its Middle East rig count from 12 rigs to 88 rigs, positioning the company as one of the largest rig providers in the Middle East market.

“Acquiring KCA Deutag gives H&P immediate scale in core Middle East markets in a way that would be challenging to replicate organically,” said H&P President and CEO John Lindsay.

“Furthermore, as there is very little geographic overlap, we view this transaction more than just acquiring assets, but rather acquiring operations with quality people,” Lindsay noted. 

By Tsvetana Paraskova

The Pinnacle of Well Engineering & Project Management SUPPORTING PROJECTS AT ALL STAGES OF THE WELL LIFE CYCLE As one of the UK’s largest privately owned independent well management companies, we are experts in providing all aspects of well engineering and project management to our global client base.

Owned and managed by well engineers with over 40 years of experience in the industry Skilled and multi-disciplined team with experience in all types of well projects Drilling, completion, well integrity, intervention and decommissioning Delivery of 160+ projects for 65+ clients since 2012 Operations performed across all phases of the well life cycle Projects delivered in the UK, Australia, Europe, South America and Africa Specialists in Onshore, Offshore, Rig Less, HPHT, Deepwater, High H2S, Geothermal and CCUS

For further information visit: www.zenith-energy.com

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How NDT is reshaping Oil and Gas operations The oil and gas industry operates under constant challenges: ensuring the safety and integrity of critical infrastructure while maximising production and minimising downtime.

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raditional inspection methods, while effective, often necessitate disruptive shutdowns and intrusive procedures that can hinder efficiency and productivity.

Non-Destructive Testing (NDT) is an innovative solution that has transformed the way industries approach inspections. It enables safer, more efficient, and costeffective maintenance of critical infrastructure by inspecting pipelines and equipment without operational disruptions.

NDT: a vital tool for Oil and Gas NDT uses advanced imaging techniques to assess the internal condition of pipelines, pressure vessels, and other components without causing any damage. This is especially beneficial for offshore extraction or remote locations, where access can be challenging and disruptions can be extremely costly.

NDT pipe inspections are indispensable for maintaining safety and efficiency in oil and gas operations. NDT is capable of detecting a wide range of defects, from large-scale corrosion to minute cracks in welds. By identifying these issues early, NDT helps prevent accidents, safeguard the environment, preventing costly and potentially dangerous failures.

The benefits of NDT NDT offers a multitude of benefits for the oil and gas industry: • Improved safety: prevents pipeline spills and other accidents by detecting potential problems before they escalate. It also creates safer testing environments by eliminating the need to handle hazardous materials.

• Enhanced efficiency: streamlines operations by reducing downtime and labour requirements. In-field testing capabilities further enhance efficiency by eliminating the need to transport components for inspection.

To know more about our products, visit our website and download our brochure.

• Cost savings: The efficiency gains of NDT translate into significant cost savings through reduced labour, material, and downtime costs. Plus, NDT helps avoid the financial and reputational damage associated with accidents.

• Compliance: provides objective and reliable data that helps oil and gas companies demonstrate compliance with industry regulations.

Radiographic testing: a key NDT testing method This is one of the most commonly used NDT methods. Employs X-rays or gamma rays to penetrate materials and create images of their internal structure. This technique is particularly effective in detecting internal flaws such as cracks, porosity, and inclusions in welds.

Computed Radiography (CR) and Direct Radiography (DR): digital alternatives They offer the traditional X-ray system, but with improved image quality, faster results, and the ability to store and share inspection data electronically. This facilitates better collaboration between inspectors, engineers, and other stakeholders, leading to more informed decision-making and improved asset management.

Other NDT techniques used in the oil and gas industry include magnetic particle inspection, liquid penetrant inspection, eddy current testing, and visual inspection. Each technique has its own strengths and limitations, and the choice of method depends on the specific inspection requirements.

Fujifilm NDT EMEA Fujifilm, a leader in imaging technology, has developed a suite of NDT systems specifically tailored for the demanding environments of oil and gas operations.

• DynamIx™ FXR Pad: built for tougher environments, with a lightweight, waterresistant structure. An acrylic panel cover helps resist scratches and impacts during oil and gas testing in the field. You can assess pipelines with immediate results via pads to fit various shapes. This system offers advanced imaging features and a 100 μm pixel pitch.

• DynamIx™ HR2: our CR solution can achieve higher reading densities from 25 to 200 μm. It offers several different imaging plate grades and sizes, including custom designs, to meet your testing demands.

The durable imaging plates can be erased and reused for better value.

• IX-Film Range: This innovative new film technology is a combination of our latest emulsion and digital process that offers extremely sharp image resolution while is compatible with all NDT chemicals and manual/automatic processing conditions.

These systems need strong imaging software to create usable images that support your operations. Our DynamIx™ VU meets industry standards in a robust, user-friendly platform.

It uses automatic contrast optimisation and a wide dynamic range to offer unparalleled accuracy. Many in the oil and gas industry use DynamIx™ VU’s long image processing features to reduce the number of exposures for examining welded pipe joints and other components.

The road ahead As we look to the future of oil and gas operations, it's clear that NDT will play an increasingly central role. Advanced NDT technologies, like those offered by Fujifilm NDT EMEA, are providing the tools that oil and gas companies need to conduct inspections with speed, accuracy, and flexibility to meet the challenges head-on. 

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PTS Services making investments for a greener future for all

Introducing the Hydac Fluid Aqua Mobil FAM 5/-EX-T033 EX: An Advanced Solution for Fluid Management

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TS Services, are excited to announce a major investment in our rental fleet with the addition of the Hydac Fluid Aqua Mobil FAM 5/-EX-T033 EX units.

This advanced equipment offers our clients a reliable and efficient way to clean their operating fluids, allowing them to extend the life of their fluids while reducing both disposal and replacement costs. By optimizing fluid usage, we are helping our customers lower their environmental impact and contribute to sustainability efforts.

The FAM 5/-EX-T033 EX is equipped with cutting-edge HYDAC filter element technology, which provides high contamination retention and superior filtration performance. This results in significant cost savings, as it enhances the efficiency of fluid management processes. Thanks to its compact and mobile design, the unit is ideal for service work, offering easy transportation and setup for onsite fluid cleaning tasks.

www.ogv.energy I October 2024

In addition to its portable design, a stationary version is also available. This is perfect for applications requiring continuous fluid protection and conditioning, especially in systems where expensive fluids are in use or where water contamination is a recurring issue. The stationary model ensures that operating fluids are always maintained at optimal levels, prolonging their usability and safeguarding your equipment from potential damage caused by contaminants.

The Fluid Aqua Mobil FAM 5/-EX-T033 EX is designed to meet the stringent requirements of the EU ATEX directive 2014/34/EU for use in potentially explosive atmospheres, specifically zones 1 and 2. It operates using vacuum dewatering technology, which effectively removes free and dissolved water as well as gases from hydraulic and lubricating fluids. This makes it an indispensable tool in industries where fluid purity is crucial.

Available for rental from our Whitecairns facility, the FAM 5/-EX-T033 EX comes with all necessary filters and comprehensive support from our team. Additionally, PTS Services offers an onshore solution for clients who prefer to clean their oil at our facility. Contact us today for more details on how we can assist you with your fluid management needs. 

Fore more information visit: www.pts-services.co.uk

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D-20277-2020

HEADER

Dräger Pulsar 7000:

Advanced Open-Path Detection for Comprehensive Gas Safety

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The Pulsar 7000 open path gas detector is designed for detecting a range of gaseous hydrocarbons, including methane, propane, and ethylene.

• Comprehensive Coverage: Complements point gas detection, ideal for oil, gas, gas storage, and LNG sites, especially in areas with fence-lines or process monitoring over a distance.

• Advanced Detection: Rapidly measures gaseous hydrocarbons like methane, propane, and ethylene at a distance of up to 200 meters within just two seconds.

• Weather Resilient: Performs reliably even in adverse weather conditions.

Suitable for safety applications up to SIL 2, the Pulsar 7000 is also engineered for ease of installation and maintenance, making it an invaluable asset for enhancing safety measures in critical facilities.

Telephone: +44 (0) 1670 352 891 Email: marketing.uk@draeger.com

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Enlightened exploration...

NVentures is the source for up to date, insightful and well-illustrated E&P data, helping to track oil, gas and hydrogen activity, new venture targets, as well as energy transition news and activity. NVentures Reports and GIS databases help point to new trends and future successful exploration.

Well Report – Mopane-1X

Latest Press Updates 21/04/24: Testing Update 26/01/24: Galp 10/01/24: NAMCOR

10/01/24: NAMCOR 03/01/24: Galp Discovery 05/09/23: Rig Contracted

www.NVentures.co.uk

© NVentures Ltd 2024

Well Report – Mopane-1X

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Seismic Section TGS seismic line located in deepwater Orange Basin west of the Kudu Gas field.

Well Report – Mopane-1X Geological Map

Stratigraphy

Mediterranean & Europe

North America & U.S. Gulf of Mexico

www.NVentures.co.uk

www.NVentures.co.uk

© NVentures Ltd 2024

© NVentures Ltd 2024

Asia Pacific

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NVentures delivers full technical summaries on wells, transactions, bid rounds and business development opportunities over six global regions.

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Latin America & Caribbean

Africa

Middle East & South Asia

+44 (0)7860 930 923 / ian.blakeley@nventures.co.uk

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

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

• Competence Assurance • HSEQ

Ann McRobb Associates www.annmcrobbassociates.com

• Industry Compliance • Training & Development • Auditing

I email: info@annmcrobbassociates.com

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Highlight on: Sarah Hogg Business Support Manager

1. Work-Life Balance How do you manage to balance the demands of being a Business Support Manager while ensuring you have time for personal life?

Maintaining a work-life balance as a Business Support Manager requires careful time management and prioritization. I believe in giving 100% to every aspect of my life, whether at work, as a parent, a friend, or making time for myself. I schedule extra hours Monday to Thursday, which allows me to take Friday afternoons off, giving me time to recharge. Fitness is an important part of my routine, and staying active helps me clear my mind and manage stress. Flexible working arrangements enable me to integrate personal goals, like going to the gym, without impacting my job. A recent highlight was completing a 50-mile charity walk, raising over £3000 for two charities supported by Intervention Rentals, with the company fully backing our efforts.

2. Hard Work and Professional Growth

3. ESG (Environmental, Social, Governance) Focus

What drives you to excel in your role as Business Support Manager, and how do you stay motivated?

In your role, how do you help incorporate sustainable ESG principles into the daily operations of the Lunan office?

What drives me is the satisfaction of knowing that I’ve delivered high-quality work, whether that's interacting with customers or streamlining internal processes. Over the last 11 years, I’ve built strong relationships with both colleagues and clients, which is key to our success. Four years ago, when we introduced a shared services team, we streamlined processes across departments, increasing efficiency and reducing waste.

Being part of a team is essential to me, and I ensure strong communication through weekly team talks. I take my Friday afternoons off to maintain balance, but I always ensure my team is set up for success and knows how to reach me if needed.

At Intervention Rentals, we are on a journey to reach net zero by 2030. We’ve calculated our emissions and developed a comprehensive plan to reduce, reuse, and recycle to a minimum.

As part of the business support team, I work closely with suppliers and manufacturers to reduce our scope 3 emissions, which includes emissions from the entire supply chain.

Internally, we collaborate with other teams to improve our efficiency and align with the company’s sustainability goals.

4. Personal Insights What does success look like to you in the context of being a Business Support Manager?

How do you stay inspired and focused, and what makes Intervention Rentals stand out in terms of employee growth, and work culture?

Success for me is about building a positive, collaborative team environment and ensuring great relationships with other departments.

Even though my team is small, I believe in fostering a 'one-team' culture across the entire company. Our goal is always customer satisfaction, which motivates me to achieve not just financial targets, but also our ESG goals. Seeing people grow within the company inspires me daily. Intervention Rentals’ commitment to personal development, hybrid working, and sustainability initiatives like the cycle-to-work scheme creates a workplace where growth and innovation are encouraged.

I’m excited about what the future holds, both for our team and the company as a whole. 

For more information visit www.interventionrentals.com

DRILLING & WELLS

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Integrated Performance Collaboration – The Stena Drilling Approach

Integrated Performance Collaboration (IPC) is revolutionizing the offshore drilling industry, and Stena Drilling is at the forefront of this transformative approach. By fostering a collaborative environment where multidisciplinary teams work in unison, IPC enables enhanced communication, streamlined processes, and shared objectives across all phases of a drilling operation.

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or Stena Drilling, this means not only optimising performance and efficiency but also setting new benchmarks for safety, environmental stewardship, and technological innovation. At Stena Drilling we are leveraging IPC to drive excellence in our operations through our ‘5 Pillars of Performance’ to meet the needs of our global client base.

Performance Overview HSE Performance We are enhancing HSE performance by implementing safety-focused tools, such as Red Zone Management solutions, to improve work practices and create the safest environment for our people.

By implementing advanced tools like Red Zone Management solutions, we’re refining our work practices and raising the bar for Health, Safety, and Environment (HSE) performance. Our crews are not just adopting new tools—they’re evolving into a workforce that operates with precision and efficiency.

Operations Performance In Operations Performance, we are accelerating the adoption of new technologies, including pipe handling and drilling automation, to boost operational consistency and efficiency. In a short period of time, this has

www.ogv.energy I October 2024

led to an impressive 32% improvement in average drilling connection times. This improves operational timings but also reduces the time that pipe is stationary in open hole during connections, reducing stuck pipe exposure. Our evaluation of these new automation improvement technologies considers several key metrics, including risk reduction, reliability and emissions.

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also offer an in-depth analysis of historical data, providing a comprehensive view of recurring failures and their root causes within the BOP system. Through trend identification and predictive insights, we can anticipate issues before they escalate, reducing unplanned downtime and extending the life of critical assets.

Emissions Performance Stena Drilling is advancing its emissions performance by implementing fleet-wide energy improvement projects, such as a software algorithm that has reduced main lift pump motor power consumption by 10%. Variable frequency drives (VFDs) were fitted on cooling seawater pumps aboard Stena DrillMAX and Stena Carron vessels. These adjust motor speeds based on temperature and pressure, leading to a power usage reduction of 27%-68% for high-load pumps and an approximate 7% reduction in emissions. These efforts enhance energy efficiency without compromising operational performance. This reduces well costs for clients as less fuel is used by the vessel daily, while also reducing the carbon footprint of Stena Drilling’s operations. We also monitor and report on upgrades and collaborate on long-term emissions reduction, working with Stena Technik to explore innovations like fuel additives.

Collaborative Framework

In addition to technology implementation, we are also focussed on developing best practice procedures to drive improvements.

By implementing a mindset of optimising existing equipment, we have seen significant improvements to operational performance. As an example of the many success cases, one unit saw a 15% reduction in tripping slip-to-slip times through process optimisation.

Reliability/Maintenance Using Practical Reliability Engineering processes, condition-based monitoring programs and real time data analysis, the goal of the Reliability and Maintenance Pillar is to optimise maintenance, drive machine performance and cut non-productive time.

Continuous improvement is fundamental to the Pillar and with the trial and implementation of new digital technologies the Planned and Predictive Maintenance processes are moving toward a Prescriptive Maintenance future using real time performance monitoring and machine learning.

BOP Performance The BOP Performance pillar focuses on leveraging the power of real-time BOP data visualisation with Power BI dashboards to drive significant improvements in BOP performance. By consolidating key metrics in a single, interactive dashboard, offshore and onshore technical personnel gain clear insights into operational efficiency and equipment reliability. Power BI enables proactive monitoring, allowing for early detection of performance dips and optimising overall system uptime. Power BI dashboards

Collaboration is key to achieving optimal performance. Our integrated Performance Team drives improvements across all five Pillars of Performance. This ensures that enhancements in one area, such as Operations Performance, benefit others like HSE, Reliability & Maintenance, and Emissions. This holistic approach aims to exceed client expectations and avoid performance silos.

Close collaboration with Operators and trusted vendors is pursued for mutually beneficial outcomes. By communicating goals and expectations through Performance Charters for each rig, a formal framework for scoping, prioritising, and implementing enhancements is established. This iterative process involves active participation from all stakeholders, including clients and service partners, to achieve the best results which we are witnessing today!

Engagement and empowerment are the key to our success to ensure we are better all the time!

Stena Drilling's Integrated Performance Collaboration (IPC) is transforming offshore drilling by fostering collaboration across multidisciplinary teams. This approach enhances communication, streamlines processes, and aligns objectives to improve performance, safety, and environmental outcomes. Stena Drilling's '5 Pillars of Performance'—HSE, Operations, Reliability/Maintenance, BOP, and Emissions—guide their efforts. Initiatives such as Red Zone Management for safety, drilling automation, condition-based monitoring, and energy efficiency projects have driven significant improvements in safety, operational efficiency, and emissions reduction. Collaboration with operators and vendors ensures continuous enhancement, aligning performance across all areas and exceeding client expectations. 

Learn more at stena-drilling.com

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DRILLING & WELLS

Keir Starmer Announces Aberdeen as the Headquarters for Great British Energy to Lead UK’s Clean Energy Revolution will focus on scaling up renewable energy production, boosting energy independence, and generating skilled jobs throughout the UK. This is seen as a significant step towards supporting economic growth and positioning the UK as a leader in clean energy innovation.

Initially, GB Energy will operate out of government buildings in Aberdeen, Edinburgh, and Glasgow while permanent headquarters are being set up. An interim CEO will soon be appointed to launch the company’s operations in Aberdeen, supported by start-up chair Juergen Maier, the former CEO of Siemens UK.

[Image: Labour Party]

In a landmark announcement that sets the course for the future of Britain’s energy landscape, Prime Minister Keir Starmer has confirmed that Aberdeen will be the headquarters for Great British Energy (GB Energy), a new publicly owned national energy company.

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rime Minister Keir Starmer has announced that Aberdeen will serve as the headquarters for Great British Energy, leveraging the city's renowned engineering expertise to spearhead a UK-wide clean energy revolution. Starmer highlighted this decision during his first speech at the Labour Party Conference as Prime Minister, emphasizing Aberdeen’s historical role in powering British energy and its pivotal position in shaping the country’s renewable future.

The announcement follows Labour's commitment to making GB Energy a publicly owned national champion in clean energy.

www.ogv.energy I October 2024

Starmer stated, "We said GB Energy, our publicly owned national champion, the vehicle that will drive forward our mission on clean energy, belonged in Scotland. And it does. But the truth is, it could only really be based in one place in Scotland." He confirmed Aberdeen’s vital role, noting, "The future of British energy will be powered, as it has been for decades, by the talent and skills of the working people in the Granite City."

In addition to Aberdeen, smaller sites will be established in Edinburgh and Glasgow, maximizing Scotland’s broad skill set in energy and engineering. The new company

In one of its first moves, the Labour government has already introduced the Great British Energy Bill to Parliament, reinforcing its commitment to clean energy. This initiative is backed by £8.3 billion in government funding over the course of this Parliament, aimed at stimulating private investment in the UK’s renewable energy infrastructure.

To accelerate the transition to clean power, the government has also partnered with the Crown Estate to fast-track the development of new offshore wind farms, a key element of the UK’s renewable energy strategy. Energy Secretary Ed Miliband, alongside Starmer, emphasized the importance of this partnership in helping the UK meet its ambitious climate targets and enhance energy security.

With Aberdeen at the heart of the Great British Energy project, the city is set to play a central role in shaping the future of the UK’s energy sector, driving forward the transition to renewable energy and creating sustainable, high-quality jobs for future generations. 

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Making excellence a habit

– from compliance to performance If your company is ever audited or is customer-focused, you will likely be aware of the phrase “meeting requirements”.

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nfortunately, a lot of leadership teams get stuck on this phrase and inadvertently foster a work culture that is focused on doing just enough to conform as anything else may reduce productivity.

Even the phrase “commitment to continual improvement” becomes an exercise in going through the motions as it is expected, and not for driving innovation.

By embracing a culture of excellence rather than simply conforming to requirements, leadership teams can unlock the true potential of their workforce. Encouraging continuous improvement and innovation not only boosts productivity but also enhances team morale and engagement. When employees feel empowered to contribute meaningfully and are supported in driving positive change, the entire organisation benefits from increased efficiency, stronger customer satisfaction, and a reputation for excellence. Investing

in quality goes beyond compliance—it builds high-performing teams that are agile, adaptable, and primed for long-term success.

To help celebrate #World Quality Week 2024 (11th-15th of November) QHSE Aberdeen has created a 1-day leadership workshop for “Making excellence a habit – from compliance to performance”. This workshop will help leadership teams to understand, evaluate, and improve their quality culture to enhance performance and help to achieve sustained success. 

When this happens, Quality professionals can feel like they are solely responsible for championing a quality culture that exceeds expectations, in an environment that is actively against them.

The PDCA model should help to Plan for success, Do the right things, Check if we can do better and Act on the lessons learned to improve the plan for next time. Instead, some companies have a culture that Plans to do what we have always done, Do what we have always done, Check we have not deviated from what worked in the past and take as little Action as possible as this could harm productivity or compliance. Some people may see the latter as being risk-averse but if a workforce is afraid to adapt and grow, then more opportunities are lost than risks mitigated.

If a workforce is empowered and supported by a leadership team to add additional value and question effectiveness, then a culture (shared values and behaviours) can grow so that interested parties will see the company as a leader in their industry and a centre for excellence. “We are what we repeatedly do.

Excellence, then, is not an act, but a habit,” Aristotle (384-322 BC)

Join us for a one day course on the Friday 15th of November at our training facility in Westhill lunch included, contact us for more details.

Should you prefer to book an on-site bespoke 1 day course for all of your staff, then contact us to arrange a suitable day.

To find out more about our services please contact us at www.qhseaberdeen.com

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EXCEED: Continued Commitment to African Energy Development EXCEED, the largest independent well & reservoir management specialist, is trusted by the world’s leading operators and suppliers to provide integrated well management solutions across a rapidly evolving global energy landscape.

This integrated competency includes Subsurface, Drilling, Completions, Subsea, Well Test, Well Intervention, Well Decommissioning, Production Technology, QHSE, Contracts & Procurement, and Logistics & Supply Base Management. All these competencies have been applied by EXCEED’s team, which has a significant track record in country entry and working compliantly in the delivery of deepwater projects across West Africa.

Announcing that it expects to see record-breaking revenues for the current financial year, the company’s experience and continuous investment in capability inspires confidence on an international level, as it operates at the forefront of some of the world’s most complex and remote environments.

Trusted by the industry’s leading operators to provide a uniquely integrated service, EXCEED is consistently chosen to manage those challenging projects. Just weeks before it commences further drilling project management services in Namibia, the company reflects on its history offshore West Africa and takes a look at its future in the region…

Regional Experience – Leading the Way Established in 2005 and drawing upon its founders’ experience in leading exploration and development operations in the deepwater basins of Brazil, GOM and Angola, EXCEED has since become recognised as a leading provider of deepwater and complex well management services.

Its portfolio of activity in West African well operations has seen the company manage and deliver all aspects of deepwater campaigns in Ghana, The Gambia and Namibia, including several industry firsts.

Leading the Way for Independents in Namibia EXCEED remains at the forefront of the exciting activities offshore Namibia, having supported an international NOC with the delivery of two wells and a well test in 2023/24, with further wells planned for late 2024 and 2025. EXCEED will also be managing a second rig in the area for an independent explorer. Crucially, EXCEED’s comprehensive capabilities enables the independent to conduct a multi-well campaign in the same manner as the major operators who operate in surrounding blocks.

Right Size – Right Approach EXCEED’s work with independents and some of the world’s largest operators alike reflects the flexibility, scalability and cost-effective nature of its well management solutions.

Its international workforce brings the breadth and depth of expertise and critical mass required to manage large development projects, whilst retaining the ability of its management team to engage directly with clients, to develop client-centric solutions focused on delivering value, excellence and bespoke technical and commercial well management solutions.

In 2018, EXCEED steered an operator client through its maiden well project offshore The Gambia, supporting them with country entry, permitting, and planning and execution of the first well offshore The Gambia in over 40 years, before returning to the country with the same client in 2021.

In 2019 EXCEED successfully delivered a five-well project offshore Ghana including drilling in a record-breaking water depth of 3086m. All work delivered by EXCEED is done so compliantly and the company established EXCEED Ghana, creating a local, permanent In-Country Manager position, underlining its commitment to the region and development of a local workforce.

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As the number of independent operators active within the region continues to grow, EXCEED provides high performing, united teams which accelerate the learning curve and remove the burden and costs associated with recruiting and integrating team members.

EXCEED also brings an independentlycertified HSEQ Management system and systematic, rigorous approach to planning and learning, designed to optimise current and future operations.

DRILLING & WELLS

ESG – 100% Commitment Protecting the Environment – Carbon Offset Drilling EXCEED leads by example to reduce the environmental impact of its projects and to deliver reduced carbon well operations.

This was exemplified when the company’s commitment to the reduction and offset of the CO2 footprint generated during well operations was formally recognised. EXCEED was awarded the Environmental Sustainability Innovation category at the 2022 Offshore Network’s OWI Global Awards, in recognition of its delivery of the world’s first carbon offset well, offshore The Gambia.

Developing People Ethical, responsible operations are at the heart of EXCEED, regardless of location. This includes in-country development – from the creation and implementation of full local content plans on behalf of operator clients, to the establishment of EXCEED Trust, which was set up in 2008 to provide lifechanging opportunities to children and young adults disadvantaged by socio-economic circumstances.

EXCEED is committed to giving back to the communities in which it operates, and in that respect, the Trust has focused particularly upon Ghana, having funded the build and ongoing support of Becky’s Home – an orphanage located in the small coastal community of Senya-Beraku.

What Does the Future Hold?

EXCEED continues to undertake significant operations across the continent, not only well delivery, but also applying its intervention and decommissioning skills, with current projects in Nigeria, Mauritania and Namibia.

The company understands the maturity of the West African basin where its expertise in late life asset management, well integrity, production optimisation and, ultimately, well decommissioning is highly relevant.

With a mission to maximise the recovery factor and manage the productive life of clients’ assets whilst enabling the energy transition, EXCEED has built up a centre of excellence based on its activity in the mature UK basin.

As the majors exit the maturing basins of West Africa such as Nigeria, Gabon and Equatorial Guinea, EXCCED’s unrivalled experience and competency is custom-made to support the independent operators with a flexible, scalable, cost-effective and environmentally responsible well management service.

Combine that with its extensive knowledge of the region and it’s clear that EXCEED has the capability to inform the development of Africa’s energy industry for decades to come.

Want to find out more about our current projects or the way we work?

Visit: xcd.com

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LEGAL

Does Frankenstein hold the answer to contracting for onshore and offshore projects?

Similarly, payment and variation terms for onshore construction through the NEC framework are strictly regulated to ensure contractors receive a fair price, in a fair time and with certain cost-overruns automatically being passed on to the project owner.

Typically, for offshore projects, payment terms remain in the control of the project owner with a standard invoice and time to pay period. Any variation to price is usually at the discretion of the project owner with a right to terminate for the contractor if the work cannot be delivered without the increase.

Laura Petrie, partner and Marc Penman, senior solicitor, Brodies LLP

The launch of the UK's Carbon Capture, Usage and Storage vision (CCUSV) of 2023 means that there is likely to be a significant increase in related construction projects on the horizon.

A

lready this is evidenced by developments such as Morecambe and Acorn making progress and the announcement earlier this year that Net Zero Teesside Power and Northern Endurance Partnership had selected contractors for around 4 billion pounds worth of construction contracts for the East Coast Cluster project. The announcement of those awards listed a range of well-known energy contractors but also a number of onshore construction contractors, less family to the offshore industry.

same terms are used as they are well known and understood. For onshore construction projects, the NEC suite of contracts tends to be the form of choice as they allow for a significant level of project specification through the selection of optional provisions.

This is a common theme for carbon capture and storage CCS projects. The requirement to marry up onshore facilities to offshore storage capacity means there is a need to have a contracting arrangement in place that can address both aspects of the construction phase, which isn't always straightforward.

For example, hourly rates between on and offshore work are significantly different. At the recent Hydrogen Scotland conference in June, owners of renewables projects noted that when contractors usually engaged in offshore projects tendered for onshore projects, the rates were up to three times higher than those proposed by onshore contractors.

While this may indicate that selecting a more experienced onshore contractor will result in lower prices, there is a risk that the lack of experience in an offshore setting would drive the risk profile up for the project owner and increase overheads for the contractor when experienced offshore subcontractors need to be engaged at a later stage.

Because of their bespoke nature, there is no single offshore industry standard engineering, procurement and construction (EPC) contract however parties usually find common ground when using combinations of the LOGIC standards, such as construction, design and the engineering study agreement.

Where companies engaged in the oil and gas industry move to onshore work, typically the

www.ogv.energy I October 2024

Certain key principles are very different between these two contracting regimes and, at the outset of a combined on and offshore project, there can often be issues in marrying these up.

Other elements also contrast between the two environments, including the indemnity regimes and regulatory compliance.

Onshore contracting largely uses a faultbased indemnity regime with the majority of the risk and liability sitting with the general contractor as the party responsible for the project and best placed to insure for the work being conducted. In contrast, a significant proportion of regulatory obligation remains with the project owner in an offshore context.

So what approach is best and what type of contractor is going to be able to align these different work environments?

In short, project owners and the general contractors need to consider more agile and collaborative contracting frameworks. This can involve creating a hybrid, or Frankenstein, contract which merges the principles of traditional onshore and offshore contracting models to create a bespoke framework.

Alternatively, contracts for the work to be undertaken can be entered into using a traditional contracting model overlaid with a collaboration or cooperation agreement which brings together the project owner and multiple general contractors for the onshore and offshore elements. This can help coordinate those areas where there is overlap and more clearly highlight (and allow parties to agree) liability and risk across the project while preserving responsibility for the work scopes within the individual contracts.

As the overlap between oil and gas and renewable energy increases, the development of CCS project contracting needs to be an organic evolution, aligned to the wider energy transition. 

For more of our energy industry insight, visit: brodies.com/insights or scan the QR code.

INNOVATION & TECHNOLOGY

SPONSORED BY

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

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

www.leyton.com

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

To enhance production efficiency, mitigate risks and costs, promote sustainability, and meet energy demand, the oil and gas industry actively pursues innovative drilling and well construction.

One of the key innovations in drill technology is the introduction of advanced drilling rigs and tools

T

hese rigs are equipped with automated systems, intelligent controls, and sensors that enable precise drilling and reduce human error. They also can operate in extreme conditions, such as deep-water drilling or harsh environments like the Arctic.

Another significant innovation is the use of advanced drilling fluids and mud systems.

These fluids are designed to provide better lubrication, cooling, and pressure control during drilling. They also have environmental benefits, such as reduced formation damage and improved waste management. In recent years, innovative techniques like directional drilling and extended-reach drilling have gained prominence. Directional drilling involves changing the wellbore path, allowing access to previously unreachable reserves and enhancing resource recovery.

Furthermore, the development of new wellcompletion techniques has revolutionised the industry. Innovations such as multilateral wells, intelligent completions, and sand control systems have improved well productivity and reservoir management.

These technologies enable operators to control flow rates, monitor well conditions, and optimise production while minimising operational costs and environmental impact.

Digitalisation and data analytics are also driving innovation in drills and wells.

Automated monitoring systems have been integrated into drilling operations and infrastructure to collect vast amounts of real-time data on various parameters such as drilling operations, well performance, and reservoir characteristics. This continuous data acquisition allows for a comprehensive and detailed understanding of the drilling process, enabling operators to make datadriven decisions and optimise it for enhanced efficiency and productivity.

Mariusz Kucharek PhD

(Senior Technical Consultant - R&D Tax Incentives, Leyton UK)

The data is then processed using advanced analytics algorithms, extracting valuable insights and patterns from the collected information. These analytics play a crucial role in optimising drilling processes, identifying potential equipment failures or malfunctions in advance, and implementing predictive maintenance strategies to prevent costly downtime. By utilising real-time data and predictive models, operators can also optimise drilling parameters and adjust operations to ensure maximum reservoir recovery while minimising operational costs and environmental impact. Moreover, data analytics enable the identification of trends and patterns over time, providing valuable input for future drilling and well construction projects. Integrating digitalisation and data analytics enhances decision-making capabilities and enables remote monitoring and control, improving safety measures and reducing human intervention in potentially hazardous environments.

Lastly, sustainability has become a significant focus area for innovation in drills and wells. The industry seeks to minimise its environmental footprint. Various advancements contribute to sustainable practices, including adopting green completions, which aim to reduce flaring and methane emissions during drilling operations. Additionally, the industry is exploring using renewable energy sources in drilling operations to decrease reliance on fossil fuels. Water management and recycling technologies also play a significant role in sustainability efforts, as they aim to optimise water usage, minimise waste, and reduce the environmental impact of drilling activities.

Eco-friendly drilling fluids, designed to be less harmful to the environment, contribute to sustainable practices by reducing the release of harmful chemicals into the ecosystem.

Moreover, the industry is exploring methods for reducing water use in drilling operations and maximising the recycling of drilling fluids for improved efficiency and reduced environmental impact. Sustainable drilling and well practices are essential for minimising the industry’s ecological impact and enhancing the

industry’s social license to operate and meet the increasing demand for environmentally responsible energy production.

Research and development endeavours continue to drive progress within the industry, fulfilling a vital role in meeting global energy demands. This commitment to innovation is palpable throughout the industry, with companies actively undertaking challenging developmental work to advance technological innovation. The United Kingdom stands at the forefront of oil and gas industry advancements, especially regarding enhancing drilling efficiency, safety, sustainability, and production rates. The country has made substantial investments in research and development, positioning itself as a hub for innovative advancements in this domain.

These investments have yielded economic benefits and contributed to a reduction in carbon emissions and the promotion of sustainable development. The UK government has implemented various initiatives to support these advancements, such as funding programs, grants, and collaborations with industry and academic organisations. These initiatives aim to encourage the adoption of emerging technologies and the development of novel solutions.

By exploring funding schemes such as HMRC’s R&D Tax Relief Scheme, companies engaged in pioneering projects can enjoy the potential benefits of financial incentives for their research and development activities.

Leyton, an esteemed leader in innovation funding, offers expert guidance and support to assist firms in securing financial backing for their research and development initiatives.

Leveraging their extensive experience, Leyton ensures that companies can confidently apply for R&D funding, maximising the rewards for their innovative endeavours. 

For more information visit: leyton.com

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RENEWABLES

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

DNV verifies floating LiDAR unit in Brazil Verification of Fugro’s equipment in Brazil evaluated performance in offshore conditions

complex, highlight the demand for advanced, cost-effective solutions like floating LiDAR systems, DNV said.

The verification showed high data availability and low uncertainty in wind speed and direction measurements, confirming the reliability of floating LiDAR technology for offshore wind applications in Brazil, it added.

This development is pivotal in unlocking Brazil's offshore wind potential and bolstering the growth of its renewable energy sector.

The verification results mark a significant milestone for offshore wind in Latin America, demonstrating a more economical and reliable method of gathering critical data to guide decision-making for wind farm projects.

Natalia Signorelli, metocean consultancy lead at Fugro, said: "Successfully verifying the floating LiDAR system in Brazilian waters is a significant milestone for offshore wind energy development in the region.

"This collaboration with DNV has enabled us to demonstrate the reliability and accuracy of our technology, paving the way for future projects."

Zephir ZX300M LiDAR unit

DNV has successfully completed the first-ever verification of a stage 3 floating LiDAR unit in Latin America, assessing the deployment and performance of Fugro’s advanced equipment.

Over a period of 55 days, DNV conducted rigorous tests on the Fugro Seawatch buoy, equipped with a Zephir ZX300M LiDAR unit (pictured).

The floating LiDAR system’s performance was evaluated against a reference LiDAR unit

onshore, widely accepted by the industry, to verify its performance and accuracy in measuring wind and metocean data under various offshore conditions off the coast of Porto do Açu, in Rio de Janeiro, Brazil.

Accurate wind measurements are critical for the feasibility, design, and financing of offshore wind farms.

Traditional methods, such as offshore meteorological masts, are expensive and

More new renewables news available @ www.ogv.energy/news/renewables

www.ogv.energy I October 2024

Santiago Blanco, executive vice president & regional director for Latin America, energy systems at DNV, added: "DNV’s role as advisors is essential in helping organizations navigate the energy transition, with a focus on sustainability.

"Our contribution to the floating LiDAR verification project in Brazilian waters underlines this commitment: we provided rigorous testing and validation, ensuring the technology's performance meets the highest standards, which is critical for advancing offshore wind energy projects in Latin America." 

READ MORE DECOMMISSIONING NEWS ON OUR WEBSITE

RENEWABLES

Hamburg 2024: Havfram bags Nordlicht cluster contract

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Havfram will use one of its wind turbine installation vessels, currently under construction, for the work.

"For Havfram, this contract adds to an already strong backlog of projects," Havfram CEO Even Larsen said.

"The contract, which we proudly have signed at the WindEnergy exhibition fair today, is a testament to the trust Vattenfall and BASF have in our capabilities in delivering excellent transport and installation services and reinforces our growing reputation within the offshore wind sector."

Work will cover transport and installation on turbines German offshore transport and installation services provider Havfram has secured a contract from Vattenfall and BASF for the Nordlicht offshore wind cluster in the German North Sea.

For the 980MW Nordlicht 1 project, Havfram will provide transportation and installation support of 68 Vestas V236-15.0 MW wind turbines, with work scheduled to commence in the summer of 2027.

On the 630MW Nordlicht 2, the contractor will execute the transport and installation support of 44 Vestas V236-15.0 MW wind turbines, starting in the summer of 2028.

Hamburg 2024: Five test sites form floater alliance HiPoTeSis aims to provide the EU with test infrastructure for floating wind projects

"This partnership with Havfram showcases our commitment to investing in assets that enable our wind farms to be developed in a sustainable manner," Vattenfall acting Head of Offshore Wind Samira Barakt said.

"The use of a low-emission installation vessel is an important step on our path towards fossil freedom and we are pleased to work together with Havfram, a trusted partner that shares our strategic ambitions.”  These included implementing fast track permitting system for demo projects, inclusions of two annual demo projects in relevant EU calls, create new European support scheme for co-investments in infrastructure and initiate better incentives for data sharing.

Arvid Nesse, chief executive of METCentre in Norway, said: "Testing and demonstration projects are absolutely necessary to bring costs down in floating offshore wind."

Bertrand Alessandrini, general manager of the OPEN-C Foundation, said: "With a target of 10GW by 2030, it is crucial to standardize and industrialize floating technologies between 2024 and 2030.

"To remain a leader, the EU must develop this infrastructure and act now to stimulate innovation."

In Europe, test sites are subject to the same permitting procedures as commercial parks, which take years to complete.

Establishing grid infrastructure at the test sites to prepare for the next generation of floating offshore wind turbines requires substantial capital investments, the alliance said.

Five European offshore wind test sites have formed a new alliance, aiming to improve conditions for floating wind demonstration projects, at WindEnergy Hamburg.

high-power infrastructure for testing new floating wind projects.

BiMEP, CEO, Foundation Open-C, METCEntre and Plocan have created HiPoTeSis.

The alliance will meet the common challenges of the sector, the most important being permitting, they said.

This collaborative network of five operational offshore demonstration test sites aims to provide the European Union with the future

In a seminar hosted by World Forum for Offshore Wind at WindEnergy Hamburg the test sites presented their action points.

Substations and export cables to shore are examples of infrastructure that need to be in place, it added.

In their agreement, the test centres point out that the floating offshore wind industry in Europe can secure global leadership.

The test centre alliance HiPoTeSis calls for more incentives to share data from EUfunded projects to drive innovation. 

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

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CONTRACTS

SPONSORED BY

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

www.infinity-partnership.com

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

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

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

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

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

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

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

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

Saipem awarded two offshore contracts in Saudi Arabia Saipem has been awarded two offshore contracts in Saudi Arabia under its existing Long-Term Agreement with Saudi Aramco.

The overall value of the two contracts is approximately US$1 billion.

Saipem’s scope of work under the first contract involves the engineering, procurement, construction, and installation (EPCI) of three production deck modules (PDMs), 33 km of subsea rigid pipelines with diameters of 12 in. and 16 in., and 34 km of subsea power cables. The infrastructures will be installed in the Marjan oil and gas field.

The second contract involves the EPCI of three jackets, five PDMs (Production Deck Modules), 22 km of subsea rigid pipelines with a diameter of 16 in., 5 km of subsea flexible pipelines, and 35 km of subsea power cables. The infrastructures will be installed in the Zuluf and Safaniyah oil fields. 

www.ogv.energy I October 2024

The projects will enrich Brazil’s floating production, storage, and offloading (FPSO) vessels’ pool with two new all-electric FPSOs, P-84 (Atapu) and P-85 (Sepia), being built by Seatrium, thanks to an $8.16-billion contract.

These FPSOs are expected to start their jobs in 2029.

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

For the offshore component of the two projects, Saipem will deploy its construction vessels that are operating in the region.

The fabrication related to the projects will be executed at Saipem’s Saudi fabrication yard, Saipem Taqa Al-Rushaid Fabricators Co. Ltd., aiming to increase and develop the capabilities of local industry.

The awards strengthen Saipem’s presence in Saudi Arabia and its longstanding relationship with Aramco. 

CONTRACTS Transocean awarded BP drilling contract eight-generation drillship, Deepwater Titan, was delivered to Transocean at the end of December 2022.

Halliburton Secures Services Contract Offshore Brazil

The arrival of these drillships in the U.S. Gulf of Mexico marked the beginning of a highpressure, high-temperature development era since the first-of-their-kind eighth-generation drillships offer 20,000-psi well control capabilities and a 3.4-million-pound-hoisting capacity.

Switzerland-based offshore drilling contractor Transocean has landed a new long-term assignment with the UKheadquartered oil major BP for the first of two eighth-generation drillships to join its rig fleet, which was described as the world’s first drillship with a three-millionpound hook-load and 20,000 psi well control system upon delivery.

The 365-day contract, which includes a 365day option, will bring Transocean $232 million in backlog, excluding a mobilization fee, for the work its Deepwater Atlas ultra-deepwater drillship will carry out for BP in the U.S. Gulf of Mexico. The start of the rig’s new job with the European oil major is scheduled for the second quarter of 2028. The offshore drilling giant explains that no additional services will be provided under the contract.

Following a naming ceremony, which was held in late April 2022, Transocean welcomed the Deepwater Atlas drillship to its fleet of rigs in June 2022. The rig was built by Seatrium, which at the time was known as Sembcorp Marine, at Jurong Shipyard. The second

The reason why these features are considered to be a game-changer in the drilling of deepwater wells lies in the improved capabilities and tools which are missing in previous generations, as seventh-generation rigs have 2.5-to-2.8-million-pound hoisting capacity, and 15,000 psi well control systems in water depths up to 12,000 feet while sixthgeneration rigs offer a hoisting capacity of up to 2.0 million pounds and are rated for water depths up to 10,000 feet.

Designed and equipped to optimize fuel consumption, reduce emissions, and minimize the associated carbon footprint of each offshore project, both eight-generation drillships can operate at 12,000 feet of water depth and drill to depths of 40,000 feet.

Before taking delivery of the Deepwater Atlas drillship, Transocean secured a drilling assignment for the rig in August 2021 with Beacon Offshore on the Shenandoah project located 160 miles off the coast of Louisiana in the Walker Ridge area of the Gulf of Mexico. 

Halliburton has been awarded a contract

by Petrobras to provide a full range of services in Brazil for integrated well interventions and plug and abandonment for offshore wells.

The deal entails Halliburton to provide fluids, completion equipment, wireline, slickline, flowback services, and coiled tubing.

“This contract, which covers nearly two-thirds of all interventions and plug and abandonment work for Petrobras, reinforces Halliburton’s strategic position in the Brazilian market,” Halliburton stated in a news release. 

Shearwater awarded 4D seismic project for Ghana’s Jubilee Field

Prosafe inks flotel contract with Ithaca Energy in the UK North Sea Offshore accommodation vessel specialist Prosafe has firmed up a deal to support Ithaca Energy’s work in the UK North Sea.

According to the company, the contract has been signed, and the accommodation vessel will work for Ithaca Energy at the Captain field in the UK sector of the North Sea for a firm period of six months commencing June 2025.

Depending on whether Ithaca uses the three months of options attached to the deal or not the contract value will vary between $26m and $37m.

The 1982-built and 2012-upgraded unit will undergo its five-yearly special periodic survey and other maintenance works before the contract kicks in. The unit has operated in the UKCS continuously for over 10 years and has also previously secured contracts in Mexico, Nigeria, and Australia.

The Oslo-listed owner and operator of six accommodation units and one tender support vessel received a letter of intent from Ithaca Energy for the charter of the Safe Caledonia back in July.

This is the second contract Prosafe firmed up within a week. It put pen to paper on a 15-month deal for the Safe Boreas with an undisclosed client to support a project off the coast of Western Australia. That contract has up to six months of extension options. 

Shearwater Geoservices has announced the award of a 4D seismic monitoring contract for the Jubilee field in Ghana, operated by Tullow Ghana Ltd. The two-month survey will be conducted early 2025, utilising capacity from Shearwater’s high-end fleet, supported by the company’s state-of-the-art technology offering and extensive operational experience. This will be the first contract conducted by Shearwater Ghana, in conjunction with local partner Destra Energy; and will include considerable local content participation.

Irene Basili, CEO of Shearwater says, “Our leading towed streamer technology is an ideal fit for the Jubilee field, enabling repeatable surveys to provide Tullow and partners with high-quality data in support of better-informed reservoir optimisation.

We look forward to executing this project as part of our long-standing commitment to our clients in Ghana and West Africa.” 

CONTRACT AWARDS SPONSORED BY

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DECOMMISSIONING

SPONSORED BY

SAFE, SMART & EFFICIENT The complete package for well decommissioning

www.wellsafesolutions.com

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

Well-Safe hit new milestone Aberdeen-based decommissioning services provider WellSafe Solutions has hit a new saturation diving milestone in the UK waters with one of its rigs, which is said to be the only semi-submersible in the North Sea with saturation dive spread capability.

According to the UK’s decommissioning services provider, diving works have been completed on the rig’s maiden project with the saturation dive system, following 163 operational dives across three drill centers and nine wells.

Well-Safe Solutions highlighted: “This fast-growing track record demonstrates the experience and tenacity of the Well-Safe Solutions team, our client, and close collaboration with RockSalt Subsea Ltd and Fugro as key partners.

“With uptime of 96% over the final three wells in this project, we saw incredible performance delivery on the final batch of legacy, dual-bore Xmas trees building on the high reliability of our diving system.”

These 163 dives enabled the completion of work scopes related to the general visual inspection of subsea dual-bore trees, removal of aged control systems and replacement with new tree control panels, installation of new hydraulic lines with pressure-testing of function and safety valves, barrier testing and remedial works to address any integrity issues, installation of tree connector override system, and removal of manual tree cap lockdown screws.

While emphasizing that this solution is “an alternative to traditional subsea well decommissioning approaches in the North Sea,” the company underlined the Well-Safe Guardian rig’s “market-leading role” in the decommissioning of fragile and aged wellheads and trees, since the rig is portrayed as the North Sea’s only semi-submersible with saturation dive capability.

After buying the Ocean Guardian semi-submersible rig from Diamond Offshore in 2019 to convert it into a bespoke plug and abandonment (P&A) unit, the Aberdeen-based player changed the rig’s name to WellSafe Guardian, modernized, refurbished, and reconfigured it exclusively for P&A scopes.

These upgrades enabled it to score a 14-well decommissioning contract with Repsol Sinopec Resources UK for the Hannay and Buchan fields in September 2021. The following month, Well-Safe won an assignment with CNR International to decommission up to 14 more wells on the Banff and Kyle fields in the UK Central North Sea. Fitted with a D300 saturation dive system and Trendsetter Engineering’s Trident modular intervention technology, the rig is perceived to be the right fit for well P&A activity on aging or fragile wells.

The Well-Safe Guardian rig completed the first saturation dives in WellSafe Solutions’ history last year while working on Repsol Sinopec’s second phase of well decommissioning at the Buchan and Hannay fields in the North Sea.

“The Guardian is now latched onto the wells with Trendsetter Engineering, Inc.’s Trident intervention system, enabling safe, secure decommissioning operations to conclude later in 2024. […] Congratulations to everyone involved with the Well-Safe Guardian for this fantastic proof-of-concept of the saturation dive system,” emphasized the Aberdeen-based firm.

The Well-Safe Guardian Earl & Wright 700 series midwater semisubmersible rig is believed to be well-suited for interfacing with older wellheads and trees since it comes with the Trendsetter Trident modular intervention system, which is a single-system solution that can be configured for hydraulic intervention, riserless light well intervention, and open water intervention riser operations.

Last year, Well-Safe Solutions got a global master agreement with BP for well engineering and decommissioning support services, alongside a deal with Spirit Energy to expand the existing scope for the Well-Safe Defender semi-submersible rig with another well.

In addition, the Scottish decommissioning player decided to dip its toes into carbon capture, utilization, and storage (CCUS) projects. 

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

www.ogv.energy I October 2024

DECOMMISSIONING OEG Offshore secures helifuel services contract with well decommissioning specialist OEG Offshore, a leading offshore solutions business, has secured a long-term Master Services Agreement (MSA) with a tier 1 well decommissioning company to provide helifuel inspections and aviation support services across the company’s offshore assets.

provide helideck surface friction testing, plus spare parts management and technical support services.

OEG Offshore will support the decommissioning firm with best practice and compliance, offering performance improvements, enhancing safety and efficiency for their helicopter operations and supporting a reduction in operating carbon emissions.

Operating from their bases in Aberdeen and Great Yarmouth, OEG Offshore is well-positioned to meet the decommissioning company’s requirements across their UKCS assets.

Commenting on the contract award, Clive Hoskisson, Managing Director of OEG Offshore UK, stated: “We’re delighted to announce the award of this contract and look forward to building a strong relationship with a prominent decommissioning company. Our highly skilled team is ready to assist our client, utilising over three decades of inspection experience in the offshore aviation industry.

The contract will see OEG Offshore deliver a comprehensive range of support services compliant with CAP437 guidelines including inspection of helicopter refuelling systems, rental of transportable helifuel tanks, JET A-1 fuel transit tank filling along with the potential for helifuel system design and manufacture as required. In addition, OEG Offshore will

As the decommissioning industry expands into clean energy markets, we remain committed to providing exceptional service and contributing to the industry’s growth.”

OEG's offshore aviation capabilities provide customers with an end-to-end service that covers all aspects of aviation refuelling, from concept to delivery and beyond, ensuring the highest standards of safety, efficiency, and environmental responsibility. 

New offshore decommissioning hub set to be launched at Port of Sunderland A new offshore decommissioning base is being established at the Port of Sunderland by County Durham firm Northern Metal Recycling.

The Shildon business already runs a 15 acre site at Hackworth Industrial Park where it specialises in the collection and removal of ferrous and non-ferrous scrap metals, and says its new agreement with the Wear port will allow it to tap into large scale decommissioning projects from the North Sea. Its new hub will make use of 540 metres of deep-water berths at Corporation and Greenwells Quays, on the west and east sides of the port respectively, and heavy lift cranes.

Bosses at the Port and Northern Metal Recycling point to the opportunity that lies in decommissioning work, which is valued by the North Sea Transition Authority as £2.5bn per year over the next 20 years. The new hub is the latest in recycling activity at the Port, where Norwegian tyre recycling firm Wastefront is developing a major facility that aims to process about 80,000 tonnes per year of end-of-life car and truck tyres.

Jordan Bell, managing director of Northern Metal Recycling, said: “There is huge demand for the decommissioning of oil and gas apparatus and equipment and Port of Sunderland is perfectly placed to capitalise on this. By teaming up with the port, we will not only benefit from utilising its deep-water berths and leading-edge handling equipment, but we will also be able to take on significantly larger projects. It will open up so many new avenues for the business.”

He added: “Being so close to our Shildon facility means it is not only economical, but also a lot more environmentally friendly, which as a recycling company, is something that really appealed. It is also perfectly positioned adjacent to the North Sea oil and gas fields, which is one of the markets we’re seeking to tap into by helping oil and gas operators with their decommissioning efforts. It just ticked all of the boxes and we can’t wait to get started."

Sven Richards, commercial manager at Port of Sunderland, said: “We are delighted to be working Northern Metal Recycling on this new decommissioning hub. Over recent years, we’ve carved out a real reputation for supporting businesses operating in the circular economy and helping bring more businesses to the region, and this is yet another great example of that.

"It’s a great success story for the port, allowing us to provide an all-round better service to our customers, and for the North East, which is quickly establishing itself as a world leader in offshore wind and green energy." 

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STATS & ANALYTICS

Offshore Field Development Update Offshore O&G-related EPC contract award value year-to-date is estimated at US$34 billion (excluding letters of intent). Major EPC contract awards recorded in the last 30 days include Petrobras' award to NOV Flexibles for the supply of 74.2km of flexible pipes to be utilised for flowlines and risers across multiple production platforms offshore Brazil. In the US GoM, the design and engineering contract was awarded to Exmar and Audubon Engineering for a new floating production unit (FPU) to be deployed at BP's Kaskida field in the US GoM. Exmar will design and engineer the hull of the new FPU facility, using its patented OPTI® hull design, whilst Audubon Engineering will be responsible for the engineering and design of the FPU's topside.

Additionally, after the operator's final investment decision (FID), Subsea 7 confirmed the EPCI contract for Shell's Vito waterflood project. Subsea 7's scope of work includes a water injection flowline, hull piping, and related subsea infrastructure to support enhanced oil recovery at the Vito field.

Other key contracts recorded during the period under review included the EPCI, hook up and commissioning contract awarded to McDermott for Shell's Manatee gas field development offshore Trinidad and Tobago. The contract scope includes designing, procuring, fabricating, hooking up and commissioning a platform and jacket.

McDermott will also provide design, installation and commissioning services for a 32inch gas pipeline. The award follows a limited notice to proceed issued to McDermott in November 2023.

Looking forward, Westwood forecasts an additional US$31 billion of offshore O&Grelated EPC spend for the remainder of 2024, underpinned by projects such as TotalEnergies' Block 58 development offshore Suriname, Eni's Coral North project (Mozambique), EPC work scope related to BP's Kaskida project in the US Gulf of Mexico following the project FID announced in July, and Shell's Bonga North project offshore Nigeria. Projects such as Pecan development offshore Ghana, which is planned to make use of existing floating production, storage and offloading (FPSO) Dhirubhai 1, connected to six subsea wells, could also be sanctioned before the end of 2024.

Offshore Drilling Rig Update The global committed jackup count further sustained at 408 units in August. Marketed available and cold-stacked jackup counts now stand at 36 and 55 respectively, with marketed committed utilisation and total utilisation at 92% and 82%, respectively.

During the month, a total of seven contracts were awarded, amounting to 2,009 days (5.5 rig years) of backlog added. One of the four rigs COSL bought over from Seadrill in the US$446 million sale was recently delivered, where the Hai Yang Shi You 948 began a multi-year charter with CNOOC in Bohai Bay in September.

The global committed semisubmersible count dropped to 64, with 13 available and cold-stacked rigs remaining in the fleet. During the month, marketed committed and total utilisation dropped to 84% and 72%, respectively. TotalEnergies has exercised its option for the Deepsea Mira, keeping the rig engaged through January 2025. The semisub is currently drilling offshore Congo and will move to Namibia to perform the one-well option in 4Q 2024.

Finally, the global drillship count remained at 81 units during the month, leaving nine marketed rigs available plus 13 cold-stacked units. Marketed and total committed utilisation grew at 90% and 78%, respectively.

Offshore Wind Update Since the last update, no new turbine contracts have been awarded globally (excluding Mainland China). With regards to business activity, a Memorandum of Understanding (MoU) was signed between Renexia and Ming Yang Smart Energy (MYSE) for the development of an offshore wind turbine manufacturing facility in Italy. EUR500 million (US$546 million) will be invested by the two parties, via a newly created company.

Dominating headlines was news that the UK government announced the results of the Contracts for Difference (CfD) Allocation Round 6 (AR6). In total, 5.3GW of offshore wind capacity was awarded a CfD in AR6, with 4.9GW of fixed wind contracted at clearing prices of £54.23/MWh and £58.87/MWh and 400MW of floating wind was contracted at £139.93/MWh (all in 2012 prices). AR6 was a mixed bag for offshore wind. While the headline award of 5.3GW is a huge improvement on the failure to award any capacity that was AR5, 1.6GW of that came in the form of rebids from AR4, clearing at a 45% increase in price to the original award.

Finally, Equinor and a subsidiary of Dominion Energy, Virginia Electric and Power Co, emerged as the winners of the Central Atlantic offshore wind lease auction in the US. Equinor won the rights to OCS-A 0557 with a bid price of US$75 million, whilst Virginia Electric and Power Co won the rights to OCS-A 0558 with a bid price of US$17.7 million. A total of six bidders participated in the lease auction. 

www.ogv.energy I October 2024

STATS & ANALYTICS PROVIDED BY

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

www.westwoodenergy.com

Offshore Energy Services Dashboard August/September 2024

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Offshore Travel Management Solutions for Remote Locations Managing travel for offshore rigs and remote locations presents significant challenges, especially in the energy sector, where operations often take place in some of the most isolated and inhospitable regions of the world.

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hese journeys demand meticulous planning, robust safety protocols, and a comprehensive understanding of the logistical complexities involved. ATPI Energy Travel has developed expertise in providing seamless offshore travel management solutions, addressing the unique demands of this sector with a range of specialised services.

should they arise. From medical evacuations to crisis management, ATPI’s emergency response team offers support for travellers who may face urgent issues while on duty.

This comprehensive approach to safety gives both companies and employees peace of mind, knowing that there are protocols in place to manage any potential risks.

Offshore travel requires navigating multiple logistical and safety hurdles, each of which can have significant operational and financial implications. Itineraries for offshore locations tend to be particularly complex, often involving a combination of commercial flights, helicopter transfers, and sea transportation.

The coordination of these different modes of travel must be precise to avoid delays, which can disrupt tight schedules. For companies in the energy sector, such delays can lead to costly downtime, making efficient travel management an essential aspect of overall operational success.

Cost management is another important aspect of offshore travel, as travel expenses for remote locations can quickly escalate if not carefully monitored. ATPI’s strategies for cost control include negotiating favourable rates with airlines and service providers, as well as optimising travel routes to reduce expenses.

Their advanced budgeting and reporting tools allow clients to track and manage their travel costs effectively, ensuring transparency and financial control.

Another major challenge is that many of these remote locations are in high-risk regions.

These areas may be politically unstable, prone to extreme weather conditions, or difficult to access due to geographic isolation. Safety is therefore a top priority when planning travel to these destinations, and a thorough risk assessment is a crucial part of the process.

Companies need to be aware of potential hazards and have contingency plans in place to deal with emergencies. Ensuring crew members are well-prepared for the environmental and health risks they may encounter is also vital.

ATPI Energy Travel’s experience in managing offshore travel means they are well-versed in addressing these concerns. Their detailed approach to itinerary planning ensures smooth transitions between each stage of the journey, minimising any downtime between transfers. Additionally, their in-depth knowledge of high-risk regions allows them to conduct comprehensive risk assessments and provide tailored advice to ensure the safety of travellers. The smooth rotation of crew members is also a key part of offshore operations, and ATPI’s ability to manage crew changes efficiently helps companies maintain operational continuity without disruption.

Safety and risk management are integral to the services provided by ATPI Energy Travel. The company ensures that travel to offshore and remote locations complies with all necessary health and safety regulations, and they are equipped to handle emergency situations

In addition to cost and safety management, technology plays a vital role in ATPI’s offshore travel services. Their state-of-the-art travel management systems streamline the booking process and provide real-time data to help manage travel arrangements efficiently.

These systems also allow for real-time updates, ensuring travellers are kept informed throughout their journey. Mobile applications further enhance the traveller experience, giving users easy access to their itineraries and the ability to receive instant notifications or make changes when necessary.

Managing travel to offshore rigs and remote locations is a specialised task that requires a high level of expertise, careful planning, and a deep understanding of the unique challenges involved. ATPI Energy Travel excels in meeting these demands, offering a range of services that ensure safe, efficient, and cost-effective travel for the energy sector. Their commitment to excellence in offshore travel management allows companies to focus on their core operations, confident in the knowledge that their travel needs are being expertly handled.  If you would like to find out how ATPI can help streamline your travel management, email:

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