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ISSUE 20

UKâ€™s No

ENERGY SECTOR

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CONTENTS ISSUE 19 - FEATURES 06 08 09 10 11 12 13 14 16 18 19

UK North Sea Chrysaor acquire ConocoPhillips’ UK oil and gas business for $2.675 billion Prodrill North America Oil & Gas

Atollo Offshore

Brimmond Group attends OTC 2019 Chevron’s $33 Billion Deal for Anadarko Asset Performance Management: Into a new era of organisational memory Supply chain emerges from the downturn As demand spikes, subsea supply chain could tighten Parkburn attends MacGregor FibreTrac 1500 crane demonstration

12 13

INNOVATION & TECHNOLOGY 20

LR AllAssets - A new digital approach to Asset Performance Management

ROVOP - Innovation and digitalisation in subsea robotics

ACE Winches deliver a cost-effective rise installation solution

EVERY MONTH 24 26

Women in industry:

Sylvia Buchan, Supply Chain Manager, Oil & Gas Authority

The Last Breath: A North-Sea diver’s survival story - Chris Lemon

A day in the life:

30 32 36 38 40 42 46

World Projects Map Contract Awards On the move - Recruitment Bassoe Analytics - Rig Utilisation OGA Project Tracker - Pathfinder Events Legal & Finance

Craig Grassick - Instructor at Survivex

24 Editorial Kenny Dooley C-Growth Ltd / OGV Energy kenny.dooley@ogvenergy.co.uk +44 (0) 7825 885817

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Disclaimer: The views and opinions published within editorials and advertisements in this OGV Energy Publication are not those of our editor or company. Whilst we have made every effort to ensure the legitimacy of the content, OGV Energy cannot accept any responsibility for errors and mistakes.

LETTER AND CONTRIBUTIONS

Journalists Tsvetana Paraskova Kirsty Whyte Loren Steffy

Editor’s Letter

Kenny Dooley Managing Director

Design Ben Mckay Fara West Printed by C-Growth

This issue features a North America focus, fitting as we head to Houston in May for the Offshore Technology Conference (OTC). The global show celebrates its 50th anniversary and will welcome industry leaders and buyers from over 100 countries. The OGV Energy team will be hosting a business breakfast and networking golf day during the event. This month has been a game-changer as we’ve witnessed some major news, changing the face of the industry. Our US writer Loren Steffy reports on Chevron’s $33 Billon Deal for Anadarko the biggest merger since Royal Dutch Shell’s $61 billion purchase of BG Group in 2016. Meanwhile, in the North Sea, Chrysaor are set to acquire ConocoPhillips’ UK oil and gas business for $2.675 billion. These acquisitions are bound to shake up their position when it comes to the current Oil company rankings.

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This issue our cover star is RCP, a leading provider of instrumentation and control systems. The Aberdeenshire-based company who have been involved with the support, service and supply of oilfield equipment for over a decade. For our day in the life segment, we follow an intensive day of training at Survivex with Fire and Survival Team Leader, Craig Grassick. He began a career as a professional firefighter before becoming an instructor for the UK’s largest energy sector training provider.

The supply chain is another topic we explore this edition with an overview on the UK market and an article from ProServ on the subsea sector.

Issue 20 features a round-up of the latest innovations in our monthly “Innovation & Technology Zone.” Lloyd’s Register gives an insight in to their “LR AllAssets,” a digital approach to asset performance management. Global robotics specialist, ROVOP discuss innovations and digitalisation in subsea robotics with their technology offering and we discover more about Ace Winches’ new Vertical Riser Installation Solution

Additionally, this month’s “Women in Industry” comes from Sylvia Buchan, Supply Chain Manager for the Oil & Gas Authority (OGA). Sylvia started a career in the Oil and Gas industry 12 years ago, progressing to a senior role in the Supply chain, which she describes as “the life blood of any industry.”

“Last Breath” is a documentary film covering the survival story of Chris Lemons, a North Sea Saturation Diver who almost died during a diving incident. Chris shares his incredible firsthand account with OGV Energy, highlighting his personal strength and the heroic efforts of the crew involved.

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UK NORTH SEA

UK North Sea Oil & Gas Review By Tsvetana Paraskova

As usual a lot of newsworthy events took place in the UK North Sea in the month between mid-March and the middle of April. A major industry association issued its annual report on the UK oil and gas industry and supply chain, exploration and production (E&P) companies issued updates on oil and gas field developments, and contractors announced new deals for supporting oil and gas operations in the UK North Sea. At the end of March, Oil & Gas UK launched its flagship Business Outlook 2019 report, which revealed that some £200 billion will need to be spent to find, develop, and operate reserves to add a generation of productive life to the basin, providing significant opportunities for both supply chain and E&P companies. According to the report, production in the UKCS increased in 2018 compared to 2017, exploration activity is showing signs of revival, and revenues of the supply chain appear to have stabilised and potentially are on track to rise this year for the first time since the oil price crash of 2014. Total production from the UKCS last year averaged 1.7 million barrels of oil equivalent per day (boepd), up by 4 percent compared to 2017, meaning that production has now increased by 20 percent over the past five years, OGUK’s report found. In addition, exploration activity is picking up pace, and up to 15 exploration wells are expected to be drilled this year, including several potentially high-impact prospects, the association said. In 2018, more new projects on the UKCS were approved than in the previous three years combined, unlocking over £3.3 billion of new capital investment and more than 400 million boe of new reserves, the report says, expecting a similar number for this year as well. Thanks to increased operational investment and new capital approvals, revenues of the UK oil and gas supply chain are expected to stabilise, but some areas of the supply chain are still under pressure, according to the report.

“Our Business Outlook Report 2019 shows that industry’s approach during the downturn is delivering results. Following 14 years of decline, production has increased by a fifth over the past five years. Cost improvements are being sustained and there is building momentum around exploration, with more new opportunities being drilled and the largest two conventional discoveries for a decade made in the second half of 2018,” OGUK Chief Executive Deirdre Michie said, commenting on the report. “However, challenges remain across parts of the supply chain, with revenues and margins still under pressure and cash flow stretched. If capabilities and resources are to stay anchored here in the UK, there must be a competitive proposition for supply chain companies to invest in too,” Michie noted. OGUK is set to release the Skills Landscape report in Aberdeen on 2 May. The report will outline the UK oil and gas sector’s skill requirements through 2025, as part of the UKCS Workforce Dynamics series produced by industry skills body OPITO in conjunction with the Robert Gordon University Oil and Gas Institute. The Oil and Gas Authority (OGA) said in March that it would launch a project looking to advance collaboration with renewables to explore a mix of energy sources and storage solutions needed for the transition to a low carbon economy.

In early April, OGA released regional maps and supporting data for the Mid North Sea High area. In field developments and discoveries in the UK North Sea, Rystad Energy said on 8 April that the Glengorm discovery made in January was one of the top 15 conventional discoveries in the first quarter this year. A week before that, Rystad Energy’s Oil Markets team warned that the Forties Blend production is expected to drop in July and August, due to field maintenance at Buzzard and other Forties feeding field. “The Buzzard field off the coast of Scotland is the second largest North Sea oil field in terms of current production after Troll. Buzzard is said to have outsized importance in setting the oil price, as it contributes around 30% to Forties Blend, one of five crude streams underpinning the Dated Brent benchmark,” Rystad Energy notes. Moving to news from companies about field developments, contracts, and corporate transactions, we start with Siccar Point Energy which said on 19 March that it had begun its 2019 drilling campaign with the spudding of an exploration well at the Blackrock prospect, 140 km northwest of Shetland.

A few days later, OGA launched on 25 March what is believed to be one of the largest ever single open releases of data with the launch of the UK’s first UK Oil and Gas National Data Repository (NDR).

On the same day, UK-based oil and gas company Hurricane Energy plc updated the market on the Early Production System development of the Lancaster field. The Aoka Mizu FPSO successfully hooked-up to the turret mooring system buoy at the Lancaster field on 19 March, the company said, noting that work to achieve first oil continues.

“The platform makes data available for machine learning and artificial intelligence and offers the opportunity to uncover new prospects and previously overlooked plays,” said Nic Granger, Director of Corporate at OGA.

On 20 March, Survitec said that it had secured a three-year contract extension with Petrofac to supply aviation immersion suits and lifejackets for personnel making helicopter transits to offshore oil platforms from Norwich Airport.

UK NORTH SEA

EnQuest provided an outlook for 2019 on 21 March, expecting production to grow by around 20 percent to between 63,000 and 70,000 boepd, primarily driven by the Magnus field. On 28 March, Neptune Energy and its joint venture partners BP and Japex announced the final investment decision for the Seagull oil project in the UK North Sea. Seagull is expected to initially produce around 50,000 boepd, 80 percent of which oil, across its 10-year design life. Proved plus probable gross reserves are estimated at 50 million barrels of oil equivalent. Oil & Gas UK welcomed the Seagull project FID, with Mike Tholen, Oil & Gas UK’s Upstream Policy Director, commenting: “Neptune’s Seagull project signals the basin’s first FID of 2019 and demonstrates a growing appetite among North Sea players to establish a diversified portfolio making the most of the variety of opportunities the basin offers.” On the same day, Cyberhawk Innovations Limited, which delivers drone inspections and asset visualisation software for the energy infrastructure, said that it had been acquired by funds advised by Magnesium Capital LLP. Subsea 7 announced on 29 March that Shell had awarded it a contract worth between US$100 million and US$200 million for the Arran gas field development 150 miles east of Aberdeen. The contract includes project management, engineering, procurement, construction, and installation of 60 km of mechanically lined pipe-in-pipe production flowline, together with subsea structures and tie-ins at the Arran and Columbus gas condensate fields and the Shearwater platform. Decipher Production Limited announced in April first oil from the Orlando field. Petrofac said on April 2 that it had been appointed Well Operator by Tullow Oil for the next phase of its Thames Decommissioning Project, in a contract worth around US$16 million. On the same day, Neptune Energy announced it had entered into a global Alliance Agreement with TechnipFMC for delivering subsea projects. In early April came two disappointing drilling results for wells in the UK North Sea. Jersey Oil & Gas said that a well drilled at Verbier did not

“

Neptune’s Seagull project signals the basin’s first FID of 2019 and demonstrates a growing appetite among North Sea players to establish a diversified portfolio making the most of the variety of opportunities the Said Oil & Gas UK’s Upstream Policy basin offers. Director, Mike Tholen,

“

Global Energy Group (GEG) announced on the same day that it had combined the brownfield engineering capability of Apollo with the capability of GEG’s Integrity and Construction (ICON) division, a brownfield modification and construction provider in the North Sea. The combined business forms an integrated EPC contractor in the UK, named Global Engineering and Construction (Global E&C).

encounter Upper Jurassic sands as anticipated, and as a result, the resource estimate for the Verbier discovery is likely to be revised towards the lower end of the initial resource estimate of 25 million barrels of oil equivalent. On 15 April, Jersey Oil & Gas said that Verbier’s operator Equinor had confirmed to co-venturers that it would complete the already planned full re-evaluation of the licence area. “The appraisal well results were disappointing for us all, however we believe there is still plenty to play for in terms of both the Verbier discovery and in the remainder of our acreage and we look forward to receiving the new fully processed 3D seismic to help us de-risk the licence further,” said Jersey Oil & Gas CEO Andrew Benitz. Serica Energy announced that an exploration well at the Rowallan prospect, operated by Eni, found no hydrocarbon bearing. Belgium-based NHV Group announced on 4 April a new long-term contract with Premier Oil to provide helicopter services to their North Sea assets. Kishorn Port Ltd said it had secured a Waste Management Licence (WML) from the Scottish Environment Protection Agency (SEPA) for the decommissioning of off-shore oil and gas assets at Kishorn Yard and Dry Dock. Zennor Petroleum announced that results from both production wells at the Finlaggan field in the UK Central North Sea “have been very encouraging.” On 9 April, Well-Safe Solutions said that it had agreed to buy the Ocean Guardian semi-submersible drilling unit, which will be upgraded and renamed the ‘Well-Safe Guardian’ after converting the asset into a bespoke plug and abandonment (P&A) unit, with investment of around US$100 million. In another P&A news from the same day, HydraWell said it signed a contract with an undisclosed UK-

based supermajor to provide equipment and personnel for P&A services in the UK North Sea. i3 Energy plc said on 9 April it had contracted the Borgland Dolphin semi-submersible drilling rig for a 94-day drilling programme due to start between 15 July and 15 August 2019. Equinor UK Limited has exercised three of six one-month options to extend the Safe Boreas at the Mariner project to accommodate personnel working on Mariner in the hook up and early production phase through September 2019, Prosafe said on 10 April. On the same day, news broke that Equinor would delay the start-up of the Mariner oil field from the first half of 2019 to some point in the third quarter of 2019, due to issues with the electrical couplings on the platform. Independent completions service company Tendeka said on 11 April that it had more than doubled its work in the UK offshore sector over the past twelve months. Shearwater GeoServices Holding AS said on the same day that it had been awarded a multi-project marine seismic 3D and 4D acquisition contract by Shell International Exploration & Production B.V. The contract covers four separate surveys, including 3D surveys on the Greeves and Blue Water fields in the UK North Sea. DNV GL has secured a 3-year contract across Dana Petroleum’s operated assets in the UK North Sea. DNV GL has been working with Dana Petroleum since 2012 with the development of the Western Isles floating production storage and offloading (FPSO) vessel. The Triton FPSO has now been added to the existing project scope, “involving classification and verification services, primarily, validation on whether the safety and environmental critical elements (SECEs) are suitable and maintained in adequate condition to meet performance standards in compliance with the UK offshore safety case regulations,” the company said on 16 April.

UK NORTH SEA

Chrysaor acquire ConocoPhillips’ UK oil and gas business for $2.675 billion Chrysaor Holdings Limited is to acquire ConocoPhillips’ UK oil and gas business (“ConocoPhillips UK”) for $2.675 billion. The assets being acquired produced approximately 72,000 barrels of oil equivalent per day (boepd) in 2018. This acquisition increases Chrysaor’s pro forma 2018 production to 177,000 boepd, making Chrysaor one of the largest oil and gas producers in the UK North Sea. The transaction has an effective date of 1 January 2018 and is expected to complete in late 2019, subject to regulatory approval and other specific conditions precedent. ConocoPhillips will retain its London-based commercial trading business and its interest in and operatorship of the Teesside oil terminal.

As a result of this acquisition, Chrysaor will add three material assets to its portfolio. These include two new operated hubs in the UK Central North Sea Britannia and J-Block. In addition to the associated high-quality oil and gas reserve base, these hubs have access to significant contingent resource potential providing near field opportunities for production growth and reserve replacement. The third material acquired asset is an interest in the world class Clair Field area located in the highly prospective West of Shetlands region. This interest and the Clair Field’s prospects for future additional development complement Chrysaor’s existing West of Shetlands position in the Schiehallion Field.

The acquisition of ConocoPhillips UK accelerates the execution of Chrysaor’s strategy to become one of Europe’s leading independent, full cycle exploration and production companies. As at the effective date, ConocoPhillips UK assets contain over 280 million barrels1 of oil equivalent (“mmboe”) proved and probable (“2P”) oil and gas reserves with a further significant contingent resource base.

In the UK Southern North Sea, Chrysaor will assume responsibility for an ongoing decommissioning programme on ConocoPhillips UK’s end-o-life assets. This decommissioning programme is very well advanced and proceeding in accordance with ConocoPhillips’ plans. Chrysaor plans to have materially completed execution of this programme by 2022, and values decommissioning competency as a long-term commercial opportunity and enabler in the UK.

Including the assets acquired from ConocoPhillips, at 1 January 2019, Chrysaor’s pro forma 2P reserves total over 600 mmboe1. Pro forma production in 2019 is expected to increase to over 185,000 boepd, driven by the active drilling and development programmes across the Company’s existing and newly acquired assets.

Chrysaor is backed by Harbour Energy, a permanent capital energy investment company managed by EIG Global Energy Partners (“EIG’’). Chrysaor will fund this acquisition from existing cash resources and an up-sized $3 billion Reserve Based Lending (“RBL”) debt facility underwritten by Bank of Montreal, BNP Paribas, DNB Bank, and ING Bank.

Phil Kirk, Chief Executive, Chrysaor, said: “This significant acquisition reflects our continuing belief that the UK North Sea has material future potential for oil and gas production. Acquiring ConocoPhillips UK accelerates our strategy and further strengthens our position as one of the leading independent exploration and production companies in Europe. These assets complement our existing operations and, with operating costs at less than $15 per barrel across the enlarged group, our portfolio delivers high margins and significant positive cash flow. In the Central North Sea, we will own a range of operated hub infrastructure providing access points in an area with the largest undeveloped contingent and prospective oil and gas resource base in the UK. In the West of Shetlands region, we have secured long life cashflows from two world-class fields operated by BP. Chrysaor’s West of Shetlands position also provides exposure to a developing region with significant interest and momentum from major oil companies. We will seek to build on that through the acquisition of additional interests and acreage. I am proud we continue to demonstrate our ability to safely and profitably extend field life and increase production from our existing portfolio. This is only possible with the dedication of our staff, contractor colleagues and the supply chain. Through this new acquisition we will be joined by a highly competent workforce from ConocoPhillips UK that shares our attitude to safety and performance. We will have the skills and resources of a major independent oil and gas company and the drive to help ensure the basin’s potential is fully realised. We see exciting growth opportunities in the North Sea and are looking forward to working with our new colleagues to safely sustain and deliver our value and growth targets.”

The package of assets being acquired are outlined in the table below:

Linda Z. Cook, Chairman of Chrysaor, added: “We are excited to play a role in the natural evolution of the North Sea and to enable the safe transfer of assets from major oil companies such as ConocoPhillips to new, wellfunded, privately‐owned operators. This process results in a good deal for both the seller and the buyer, with new asset owners such as Chrysaor bringing the strategy and capital required for reinvestment and growth. The outcome is a reinvigorated oil and gas sector, an extension of the producing life of existing fields and the maximisation of hydrocarbon resource recovery.”

COMPANY FOCUS

The new horizon, strategic expansion for talent resource specialists It is no secret that over the past four years, the Oil & Gas industry has suffered its longest downturn in history. Cultural and operational change has been inevitable as companies continue to maintain their tight budgets and relentless focus on efficiencies. Whilst there has been a recovery in oil prices in 2018 and as the industry emerges from the downturn, the sector still faces fundamental challenges, one being the lack of skills and talent required to support Vision 2035 set by the oil and gas industry. Talent resource specialists Prodrill, a leading name in technical oil and gas recruitment spanning four decades, believes this is the right time to expand its recruitment portfolio

across eight key divisions in the upstream environment. Prodrill will now support a variety of clients’ needs across a broader spectrum of disciplines within the drilling services, subsea, engineering, geoscience, completions/well services, decommission/plug & abandonment, operations & maintenance and management support sectors. To support this expansion, Alan Golightly joined the team in December 2018. With over 20 years’ client management and technical engineering recruitment expertise in the industry. Alan joins a ten strong team at the Aberdeen headquarters as senior resource specialist, enhancing the company’s technical recruitment offering.

Prodrill managing director, Louise Wood, said: “We are delighted to welcome someone of Alan’s calibre to the company; with over 40,000 people potentially entering the industry over the next 20 years, it’s important that we focus on the changing workforce, and how to attract these skills to the industry to support Vision 2035 and beyond. “In the past ten years, Prodrill has supported more than 2000 client projects across 37 countries and as clients continue to evolve and up-skill their workforce it’s imperative that we keep pace with them. Technology and innovation will play a big part in the UKCS workforce requirement in future decades and it’s important to ensure our service offering supports this change. Expanding our areas of recruitment expertise means we are well positioned to support the future job families and job functions that are being currently mapped by industry bodies.” The company who has seen a 20% increase in the amount of onshore and offshore related roles during early 2019, which supports industry sentiment that confidence is returning. Louise continues: “Human Capital remains critical to our sector and with future changes in legislation surrounding Brexit and IR35 off-payroll reform it’s also important our sector remains focused on how it recruits and engages potential talent for the future landscape.”

Left to Right: Alan Golightly, Louise Wood and Drew Alexander

For more information about Prodrill please visit www.prodrill-ers.com

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REGIONAL FOCUS

NORTH AMERICA North America is home to two of the world’s largest oil and gas producers, the United States and Canada. By Tsvetana Paraskova

Over the past few months, the United States and Canada have gone through different stages of their respective oil and gas industries and production. The US became the world’s biggest crude oil producer, surpassing Russia and Saudi Arabia, as the oil price recovery for most of 2018 led to booming production from American shale oil fields, especially from the Permian in West Texas and New Mexico. Canada, for its part, has been struggling for more than a year with constrained access to market for its oil and gas, which has led to depressed Canadian oil and gas prices. The insufficient market access also led to an unprecedented move by the biggest oil province, Alberta, which mandated a province-wide reduction of oil production in its effort to ease takeaway capacity constraints and prop up the price of Canadian heavy oil, which at one point in the autumn of 2018 dropped to as low as around $10 a barrel. The production curtailment of 325,000 barrels a day, or 8.7 percent of output, was aimed at reducing market volatility and narrowing the differential between Western Canadian Select (WCS) prices and the U.S. benchmark West Texas Intermediate (WTI). Some Canadian producers, like Cenovus Energy, have argued for the province-wide cuts. But other companies—especially firms with investments in downstream operations that had benefited from the low prices of refinery feedstocks such as Imperial Oil, Suncor Energy, and Husky Energy—still believe that Alberta was wrong to intervene on a free market with production restraints. Canada’s oil prices have increased since the reductions were enacted in January 2019 and Alberta has started to gradually ease the cuts. The province is also boosting the crude by rail takeaway capacity to transport oil out of landlocked Alberta as the in-service date for a new oil pipeline is at least a year and a half away. In March 2019, Enbridge said that the expected in-service date for the Line 3 Replacement project would be pushed to the second half of 2020. Line 3 is designed to expand on the former Line 3 Segment Replacement Program between Hardisty, Alberta, and Superior, Wisconsin, in the US. Alberta has been fighting for years to have another outlet for Canadian oil, this time to the West Coast of Canada—the Trans Mountain expansion project. The project has seen several setbacks over the past years, and is now in the hands of the Canadian federal government, which bought it from Kinder Morgan last year.

Alberta’s Premier Rachel Notley said at a campaign rally in early April that she expected the federal government to approve the Trans-Mountain Pipeline by the end of May. Like with oil production, Canada’s natural gas industry faces the same predicament—limited market access for exports to the fastest-growing demand region, Asia. “Whether we’re talking about oil or natural gas, the details are different but the story is the same. Albertans are getting pennies on the dollar because we can’t get our resources to international markets, and our biggest customer has become our biggest competitor,” Alberta’s Minister of Energy Margaret McCuaig-Boyd said in December when the province announced the creation of a Liquefied Natural Gas (LNG) Investment Team. The team would “work directly with industry on reducing barriers for securing final investment decisions on export projects that will increase the value of Alberta’s natural gas resources,” the province says. Two months earlier, Canada had its first LNG project pass the FID. The five companies behind the LNG Canada project—Shell, Petronas, PetroChina, Mitsubishi Corporation, and KOGAS—made a final investment decision in October 2018 to proceed with the construction of the LNG Canada export facility and the Coastal GasLink pipeline. In early April, Chevron and Woodside Energy applied for a new licence for their planned Kitimat LNG facility in British Columbia, proposing to almost double the size of this project. Market access, that is new pipelines and export avenues for Canada’s oil and gas, are crucial to the country’s economy, the Canadian Association of Petroleum Producers (CAPP) said in a report in March 2019. Despite the abundance of natural resources, the lack of pipelines and other energy transportation infrastructure are crippling Canada’s ability to compete for global market share, according to the association. CAPP President and CEO Tim McMillan said, commenting on the report: “Global energy demand is growing; however, without new pipelines, Canada’s oil and natural gas industry can’t compete for a share of the global market. Instead, growing demand will be filled by other countries like Iraq, Libya, and the United States”.

The United States, on the other hand, has seen its oil production grow so much that it has recently made the country the world’s largest crude oil producer, ahead of Russia and Saudi Arabia. “In a pivotal geopolitical shift, the United States will soon export more oil and liquids than Saudi Arabia. This remarkable turnaround is made possible by the continued rise in oil production from US shale plays and the increased oil export capacity from the Gulf Coast,” Rystad Energy said in an analysis in early March 2019. According to Rystad Energy research and analysis, in Q4 2020 the US will become a net exporter of oil and petroleum products in a sustainable manner. US oil production, which jumped by some 2 million bpd in 2018, will increase by nearly another 1 million bpd this year, despite the fact that independent drillers are cutting capital expenditure for 2019, according to the energy research firm. “This year’s lowered pace of oilfield activity provides support for global oil balances and crude oil prices. And regardless of the reduced investments being made in the first quarter, we will still see significant production growth in the US towards yearend,” Rystad Energy senior partner Per Magnus Nysveen said. The shale boom has been driving the rise in natural gas production in the US, too. In addition, more LNG exports projects are expected to come online this year, boosting US exports of gas. According to the US Energy Information Administration (EIA), LNG export capacity in the US will double from end-2018 to reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third-largest in the world behind Australia and Qatar. In February 2019, another LNG project was given the green light—ExxonMobil and Qatar Petroleum made a FID to proceed with the development of the Golden Pass LNG export project in Sabine Pass, Texas. The facility is expected to start up in 2024. Both the United States and Canada are looking to boost market access for their oil and gas. While the US continues to grow its production, export capacity, and exports, Canada needs more oil pipelines and LNG facilities in order to compete in oil and gas exports globally.

YEAR

COUNTRY REGIONALAGO FOCUS FOCUS

- BRENT OIL PRICE 2018 - $72.11

Ben Moore, Managing Director of Attollo Offshore, supplier of propelled and non-propelled accommodation and well service jack up rigs across the offshore energy sector. Whilst there’s a lot of industry talk about embracing innovation, pushing boundaries and improving offshore operations through collaboration, Ben is one of the few who has made it his mission to ensure that those three pillars are the genuine core of all that Attollo does. Ben is dedicated to achieving sustainability within the North Sea offshore Energy industry and aims to support a positive future for the communities in which the company operates. He believes in uncovering the unrealised potential in offshore operations and pushing the offshore energy industry into a new era. “The offshore energy sector is moving into unchartered territory, and I believe it is one of the most exciting times to be involved in the industry since the early pioneers of North Sea oil. It’s at a critical stage where there is, quite literally, a changing of the guard. As the industry’s founding generation begins to retire, it’s clear to me that the next generation (of which I count myself a member), must execute an ever more ambitious vision, at an ever more ambitious scale in order to keep the viability of the region and its impressive safety record intact. As traditional ways of working are becoming rapidly obsolete and irrelevant, we need to set out our stall in clear terms – what are we bringing to the table, what are the changes and improvements we’d like to make? – at the same time as ensuring that the “soul” of the industry is not lost. We can’t afford to ignore six decades of knowledge and experience; but equally we cannot ignore the fact that technology and data is creating such speed and potential scale, that it is taking our understanding of industry to unprecedented levels. We’re seeing patterns never seen before, spotting trends as they happen, and predicting and actioning events in an unbelievably targeted way. We need to find a way of ensuring a fundamental continuity, however we must also be willing to engage in constant innovation and always strive towards smarter operations and better results. That’s how we’ll achieve a sustainable future for offshore energy. “So how do we do this? In a nutshell, our industry simply needs to become comfortable with, and take advantage of, major disruption change - whether that means changes in personnel, procedures, technology or communication.” “I can’t deny that change and innovation – particularly within a large organisation – is

extremely challenging. It tends to format around an “initiative” every now and then, rather than an embedded culture. These cost money, take time, are viewed by many with trepidation and frequently sink without a trace or – worse - cause more harm than innovation. Many of you will be familiar with the process… “However, whilst it’s unusual within the offshore industry, a culture of continuous, incremental improvement and innovation is not unknown in larger companies within other industries. Many of us know the Japanese term kaizen; in other words, constant improvement, which is used to significant effect within the global manufacturing industry. There is no reason why this cannot be transferred to our industry. Now is the optimum time for the offshore energy sector to learn this lesson. By creating an environment of constant change, the fear and distrust that can surround change will lessen and a culture of adjustment and improvement becomes more intuitive. This is the context within which innovation can truly flourish. “I’m not talking hypothetically; Attollo Offshore’s fundamental ethos is one of constant improvement. Real and long-lasting impact to the economic viability of mature offshore basins requires convention to be challenged and innovative action to be taken now – and that’s what we’re doing, 24/7/365. Our systems and processes are built with constant observation, assessment and fine-tuning in mind. We are always willing to take advantage of and deploy the latest technology and ways of working, and this is setting us apart from the crowd. The gains that can be achieved by embracing the latest advances are amazing, and the positive disruptive change that it can bring to an organisation pays significant dividends. “Within the offshore energy sector, there’s plenty of discussion around - but outside exploration, rarely a tangible focus upon - the benefits of digitalisation; big data, cloud computing, AI and automation. In contrast, Attollo puts a massive amount of energy into these areas, from both operational and R&D perspectives – and in doing so, we’ve created an environment of ultra-transparency within our business; no information silos (team mentality is crucial), no outcomes based upon opinions - and our clients reap the benefits of our data-driven decision making. Data and optimisation, not egos, provide the key to the sustainability of our industry, and a truly innovative mind-set where innovation is valued as much as tradition will provide the only way in which we can move forward.”

More than 1,000 oil workers of SOCAR’s “Azneft” Production Union were evacuated from Azerbaijan’s Caspian offshore platforms due to the severe weather conditions. Brazilian environmental regulators ordered miner Anglo American Plc to halt operations in the country following a pipeline leak. Statiol Petroleum AS and Aker solutions awarded Baker Hughes, GE, a contract to provide turbomachinery equipment for the topside structure for the floating production, storage and offloading

vessel (FPSO) to be located at Johan Castberg field in the Barents Sea.

YEARS AGO

BRENT OIL PRICE 2014 - $98.89 Production has started on the first new Statoil-operated platform on the Norwegian Continental Shelf since 2005. The Gudrun oil and gas field, in the Norwegian sector of the North Sea, is also the first new to be operated by Statoil from the Stavanger region since Sleipner in 1993. Scientists used data from North Sea oil and gas exploration to build a picture of large coal deposits, stated to potentially power Britain for centuries – estimated to be between 3 and 23 trillion tonnes.

YEARS AGO

BRENT OIL PRICE 2009 - $50.18 Devon Energy, Americas, discovered gas in the Barreirinhas Basin off of the Northern Coast of Brazil, Devon operateswith 45% interest in partnership with Petrobras (25%) and SK Energy (30%). (CNOOC) said it will invest more than $44 billion in China’s southern Guangdong Province over the next five years; chairman Fu Chengyu said the investment would go mainly toward South China Sea exploration, petrochemical projects in the city of Huizhou and a natural gas pipeline. The North Sea decommissioning process is gaining traction, one of the biggest projects underway is the decommissioning of BP’s Miller Field, where well abandonment activity is at an advanced stage. Americas. Devon Energy made a gas discovery with its 1DEV14AMAS well on Block BM-BAR-3 drilled offshore Brazil in the Barreirinhas Basin. It was drilled to a 15,831-ft TD in 7,664 ft of water about 100 mi north of the northern coast of Brazil. Devon operates with 45% interest in partnership with Petrobras (25%) and SK Energy (30%).

COMPANY FOCUS

Scottish company, Brimmond Group, attends OTC 2019 as it continues to expand its global reach Brimmond Group attends The Offshore Technology Conference (OTC) 2019 on the Scottish Development International (SDI) stand, as part of its global expansion strategy. With products and services from Scotland being in demand around the world, being part of the SDI stand ensures that Brimmond Group is available for companies attending OTC to learn more about the products and services offered from its Scottish base. Brimmond Group, Preffered Marine Cranes and Rigrun Europe, an Aberdeenshire based engineering organisation, have been delivering integrated engineering solutions to the oil and gas sector providing hydraulic, mechanical, electrical, pneumatic products and services, designed to meet specific market requirements. With an already established international presence, the organisation is seeking to expand its global reach in America. Alan Glennie, Technical Director, said: “It’s important that as an organisation we explore every possible opportunity during our visit to next month’s OTC. With the support and assistance of Scottish Enterprise and SDI, we are delighted to be able to have a presence at this renowned industry event.”

In 2019 OTC celebrates 50 years of hosting their annual conference. OTC is a well-known and well-attended event where energy professionals meet to exchange ideas and opinions. This year the conference will offer over 350 peer-selected technical presentations, and expects over 60,000 energy professionals from 100+ countries to visit the exhibition.

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OTC 2019 will provide Brimmond Group, Preffered Marine

Cranes and Rigrun Europe with the platform from which it can showcase its specialist solutions which includes both a rental fleet and bespoke design and engineering solutions supporting operations in subsea, dredging, drilling, plug and abandonment and decommissioning sectors. Its rental fleet includes hydraulic power units (HPU), spoolers, reelers, tugger winches, flushing units, pump and filtration packages, fully foldable knuckle boom marine cranes, telescopic boom marine cranes, knuckle boom marine cranes and more. In addition to the rental offering, the in-house engineering team collaborate with clients to supply tailored products, providing design, engineering and build capabilities to develop product spreads that match the client’s functional specification. With a wealth of oil field experience, Rigrun Europe plays an integral part of supporting a company’s platform Inspection, Repair and Maintenance (IRM) programme, through the provision of experienced offshore engineers and technicians.

Engineering expertise is readily available offshore or at our purpose-built workshop, to support drilling operations and rig re-activation with the refurbishment and upgrades for riser tensioners, riser spiders, guideline tensioners, drill string compensators. Helping customers to increase the lifespan of existing equipment used as part of the drilling process on platforms, semi-submersibles and jack-ups. Brimmond Group, Preffered Marine Cranes and Rigrun Europe deliver engineering solutions to the global offshore oil and gas market.

COMPANY FOCUS

Chevron’s $33 Billion Deal for Anadarko Sets Up More Shale Mergers, Expands Gulf Drilling during the past few years, the Gulf has undergone a quiet resurgence. Production has increased to a record of almost 2 million barrels a day, and that is expected to increase in the coming years as more projects come online. Producers have been able to lower costs, and refiners are increasing demand for heavy crude as supplies from countries such as Venezuela have dwindled.

Industry analysts and U.S. shale watchers have been waiting for a big deal to kick off a wave of mergers, and in mid-April they got one. Chevron agreed to buy Anadarko, one of the largest independent producers in the U.S., in a cash-and-stock deal valued at $33 billion. It was the biggest merger since Royal Dutch Shell’s $61 billion purchase of BG Group in 2016. The deal catapults Chevron, which had lagged behind rivals such as Exxon Mobil and Shell in recent years, into the elite ranks of the “ultra majors.” It also makes Chevron the dominant player in the Permian Basin and comes after the U.S. oil output topped 12 million barrels, surpassing Russia and Saudi Arabia. Chevron said the cash flow from the combined company would have been $36.5 billion in 2018, slightly more than Exxon’s $36 billion, and its estimated production will be 3.6 million barrels a day. By acquiring Anadarko, Chevron is doubling down on the Permian, the world’s most lucrative oil and gas play. The company has been beefing up its assets there since Mike Wirth became CEO a year ago. The two companies will hold 75 miles of continuous acreage in the Permian’s prolific Delaware sub-basin, near the New Mexico border. “Anadarko has a great set of assets; Chevron has a strong portfolio. You put those two together and it really is a powerhouse,” Wirth told Bloomberg News. “It’s about the Permian, but it’s about so much more than that.” By acquiring Anadarko’s offshore properties in the Gulf of Mexico, Chevron would become a major operator there as well, rivaling Shell as the market leader. While the Permian boom has drawn most of the headlines in the U.S. oil and gas industry

Average production costs in the Gulf have declined by more than 50 percent in the past five years, according to industry consultant Woods Mackenzie. Companies have further reduced expenses by concentrating new drilling near existing infrastructure such as production platforms, then linking to them with umbilicals. In addition, the industry has been lobbying the government to lower royalty payments deepwater acreage. Shell and BP, currently two of the biggest Gulf producers, have estimated that their breakeven price for deepwater wells has fallen to $40 a barrel from $70 a few years ago. Gulf output has doubled in recent years, even though companies are using just 25 percent of the number of wells they did in the 1990s. Shell is expected to bring its multibillion-dollar Appomattox platform off the Louisiana coast into operation later this year. Its Vito platform about 150 miles southeast of New Orleans will follow in 2021. Shell also announced its Whale discovery last year, although the company hasn’t made any development decisions on that project yet. Meanwhile, BP has said it will spend $1.3 billion to expand its Atlantis project in the Gulf, which is already producing 300,000 barrels a day equivalent. It expects to increase that production to 400,000 by the middle of the next decade. For its part, Chevron brought its Big Foot platform online last year, and it’s developing its 2017 Anchor discovery with Total. And that maybe just the beginning. In March, the Trump administration rolled out a fiveyear plan to expand drilling in federal waters that would lift restrictions on coastal waters beyond the western Gulf of Mexico. The Bureau of Ocean Energy Management has proposed opening as much as 90 percent of the outer continental shelf to drilling, offering leases in areas such as the Atlantic Coast and California, which hasn’t been open to new drilling since the 1980s.

Despite all the light sweet crude coming out of domestic shale plays, most U.S. refiners are still tooled for the heavy sour oil from the Gulf. Although they are more expensive to drill, deepwater wells typically have slower depletion rates, giving producers more time to recoup their investment. The biggest impact of Chevron’s deal, of course, will be onshore. Anadarko had been a perennial takeover candidate, and the only companies that could afford it were the majors. For years, rumors circulated that Exxon or Shell would make an offer. Chevron’s price of $65 a share represents a 35 percent premium, far higher than the average of 11 percent last year or even the 22 percent average for 2017, according to Bloomberg data. Shell, in particular, has said it wants to expand its shale holdings and has reportedly been in talks with Endeavor Energy Resources LP. Endeavor is the biggest privately held producer in the Permian, and would fetch between $10 billion and $15 billion, analysts estimate. Meanwhile, other companies on the hunt in the area include Occidental Petroleum, which CNBC reported actually made a higher bid for Anadarko, at $70 a share. The Chevron deal instantly made most other shale producers potential takeover targets. Once the realm of smaller, independent producers, shale has become a focus for growth by the majors and larger independents. Even before it announced the Anadarko deal, Chevron had been aggressively acquiring Permian properties and said it would double its production there by 2023. The larger companies have focused on reducing production costs in the region by developing manufacturing techniques for drilling that maximise rig usage and reduce production expense. In discussing the deal, Wirth mentioned that the large block of contiguous acreage that the deal will give Chevron enables it to “more efficiently carry out advanced drilling methods needed to produce shale oil and gas.” With Chevron’s purchase, analysts and bankers are once again licking their chops at the prospect of more deals. A flurry of mergers a year ago was supposed to ignite an acquisition boom, but it never materialised. Now, the size and the price of the Chevron deal may finally set the wave in motion.

ASSET MANAGEMENT

Asset Performance Management: Into a new era of organisational memory Jim Stuart, SVP Digital at Lloyd’s Register, outlines current and future challenges for asset owners and operators in the energy and marine industries and how technology will change the way knowledge is captured, stored and used across organisations for the better. Retain and maintain In the energy sector, the looming ‘great crew change’ is a considerable source of anxiety. An ageing workforce, coupled with a spate of early retirements during the downturn, leaves the industry reliant on fewer and fewer seasoned experts for their years of knowledge and experience. Even if a huge influx of young workers were to come into the sector tomorrow, comprehensive knowledge-transfer before it was lost to retirement would be impossible. It’s often said that knowledge is power. But in high-risk sectors such as the marine and oil and gas industries, knowledge is fundamental to something much more important: safety and reliability. Hard-won through long experience, knowledge is the difference between profitable operations and unreliable equipment at risk of failure from factors such as corrosion, human error, and fluctuating operating conditions. The problem is that with an ageing workforce and increased merger and acquisition (M&A) activity, it’s becoming more difficult than ever for companies to retain that critical knowledge and experience within their organisational memory. If that wasn’t struggle enough, new technologies promise to change working practices and therefore the nature of skills and knowledge that tomorrow’s operators will need. This leaves asset operators with a delicate balancing act: retaining/capturing invaluable knowledge of the past; making it usable and useful so that future works can build on this knowledge to more rapidly improve productivity. Technology – specifically Asset Performance Management (APM) solutions, especially those with a focus on risk, reliability and optimisation tools and mitigation strategies, will be central to owner/operators as they enter a new era of organisational memory.

upstream recruitment specialists

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At the same time, the gradual upturn in the oil and gas sector has led to a matching uptick in M&A activity. While it’s heartening to see renewed activity levels and investment in the sector, for individual companies it poses a very similar threat to the ageing workforce: namely the loss of knowledge capital. M&A deals often lead to workforce changes and there’s a very real risk that experienced workers view the event as a good time to retire or seek opportunity elsewhere.

mind and have developed to better capture the more qualitative, more human element of knowledge, experience and best practice that might otherwise be lost; and rapidly deploy this knowledge to augment newly developed insights or expertise.

As such, owner/operators are faced with two seemingly opposite trends – one born of the downturn, the other of the upturn – both of which put pressure on organisational memory. When it comes to APM, these are the skills, experience and know-how that can keep assets running optimally. If too much of that knowledge is lost, there is an increased risk of major equipment failure that can impact human/environmental safety and the reliability and profitability of high value equipment.

Capturing this knowledge goes hand-in-hand with the need to deliver assurance and confidence to plant managers and operators alike. Digitising expert knowledge and best practices is a key component of what Lloyd’s Register (LR) terms this asset performance assurance and it lies at the heart of its AllAssets platform. It enables engineers to map their understanding of failure mechanisms and failure causes and then sense-check their model against a rich library of information. This can then be codified and added to the solution, enabling a systematic approach to capturing human knowledge and best practices, all in one place and accessible across the organisation.

APM solutions can go some way to mitigating this. Traditionally, these solutions have excelled with quantitative, easily digitised data that could be used to aid asset owner/operators decision-making processes. However, the new generation of APM solutions have been designed with the ageing workforce in

In most organisations, the executive team relies on operations and maintenance staff to assure them with high confidence that risk of an unplanned shutdown is minimised - so production forecasts are met, plant performance is continually improved, and preventative maintenance work is scheduled at the least

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disruptive/most economically beneficial time. Modern APM systems that embody this concept of asset performance assurance, enable teams to deliver exceptional knowledge-based asset performance strategy with a high-level of confidence and assurance.

Building the knowledge base Indeed, by capturing and codifying workers’ knowledge and experience, APM systems don’t only just retain critical knowledge capital, they can also make it more useful to the company as a whole. A seasoned engineer intimately acquainted with a particular asset and all the operating conditions and maintenance/inspection activities to keep it running optimally is well-placed to pass on that knowledge to a handful of colleagues. But what if the operator runs similar assets elsewhere around the world? A forward-thinking company might look to send the subject matter expert to other sites to provide training, broadening the knowledge base. However, this is still a fundamentally analogue and limited method of knowledge-transfer. By effectively capturing that experience digitally, workers across the world can gain access to pertinent knowledge through the APM system, as well

Recruitment specialists in...

drilling services

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as augmenting the pre-programmed risk models with their own knowledge and experience. In doing so, organisational memory isn’t just preserved, but enhanced and made more useful. In fact, such benefits don’t need to be limited to individual companies. At the asset owner/ operator’s discretion, the APM provider can capture and anonymise the knowledge to provide benchmarks for similar assets to other owner/operators in the industry. This democratised, collaborative approach can improve best practices across maintenance, inspection engineering and operation. The results are reduced equipment failure, improved productivity and longevity and better business performance across the industry.

Preparing for the future However, at the same time as trying to maintain critical, existing knowledge in the organisation, operators are also faced with the need for new knowledge and skills in light of technological change. Across sectors, economic activity is becoming increasingly automated and digitised. Buzzwords such as the Industrial Internet of Things (IIoT), Industry 4.0 and ‘smart’ compo-

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nents and systems all point to a fundamental shift in how assets are designed, built, installed, maintained and operated. Though industry veterans’ knowledge will undoubtedly be needed to maintain legacy equipment with decades left of useful life, tomorrow’s assets will require a different set of skills to run and optimise. Programming, cyber security, data science and analytical skills will all become far more prominent. As assets become increasingly sensor-enabled and fine-grained data becomes the norm, machine learning and artificial intelligence (AI) will allow operators to fine-tune their APM systems in real-time, better protecting and more profitably running assets than ever before. Tomorrow’s best-in-class APM systems will be those capable of combining these promising new technologies with the benefits wrought from hard-earned human experience and skill. In other words, marrying mature and new knowledge to upgrade not just organisational memory, but how it is applied. Those operators which, aided by APM technology, succeed in doing so, can confidently step into a new era of asset performance assurance. Those that don’t may find that the ageing workforce outlives their company.

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APRIL RIG STATISTICS

The Supply Chain is an area of the Oil & Gas Industry which takes more time to recover from downturns because it depends on upstream operators’ capital investment and drilling decisions. The most recent downturn has left the UK supply chain with revenues and profit margins diminished and cash flows stretched. After the 2014-2015 oil price crash, the subsequent downturn, and now the recovery, a “new reality” across the UK Continental Shelf has emerged, Oil & Gas UK said in its recently published Business Outlook 2019. Part of the UK supply chain continues to face challenges in the ‘new oil order’. According to Oil & Gas UK, the path forward is increased collaboration between contractors, new contracting models, and new ways of working to unlock more projects for the world-class UK supply chain. “This will be crucial to meeting the aims of Vision 2035 — to add a new generation of productive life to the basin and to double the opportunity for the supply chain through exports and diversification,” the industry association noted in its 2019 business outlook. The outlook within the UK supply chain has improved this year, both in terms of business sentiment and expectations for future revenues. “It is now crucial that this optimism translates to reality,” Oil & Gas UK said. Contractor companies have shown improved sentiment in recent months as capital commitments by E&P companies have increased and operational expenditures appear to have stabilised, the association notes. According to the OGUK Contractors Sentiment Survey, 62 percent of member companies have an improved outlook for 2019 compared to 2018, while just 12 percent reported increased pessimism. “However, this improved sentiment must be kept in perspective with industry only just beginning to emerge from one of its most difficult periods. With many areas of the supply chain still experiencing significant financial stress, further effort will be required to turn this increased optimism into sustainability,” the association’s report said.

activity starts to trickle down the supply chain, OGUK reckons. “Around two-thirds of respondents to OGUK’s Contractor Sentiment Survey indicated that they expect revenue to increase this year. However, it must be recognised that some sectors, especially those which are asset intensive such as aviation and drilling rigs, remain under severe pressure and, in some cases, unsustainable positions as a result of reductions during the downturn,” the association noted. In terms of employment, a survey of OGUK member companies showed that nearly half of supply chain companies expect to see some increase in employee numbers this year, while just 10 percent plan to further cut jobs. Going forward, the keys to a sustainable and profitable UK supply chain are increased exports, diversification, and closer collaboration and cooperation. Contractors focused on oil and gas should see the rising trend of investment in renewable energy as an opportunity to diversify and tap into new revenue streams, OGUK says. “Increasing the opportunity for the UK-based supply chain from export activity and diversification is a core aim of industry’s Vision 2035 — with the ambition to double the opportunity for supply chain companies,” the association notes. Collaboration is high on the agenda for the UK supply chain, and the industry recognises that collaboration needs to be sustainable and that a focus on cost cuts only is not the sustainable answer for the future, according to the fourth annual UKCS upstream supply chain collaboration survey 2018 from Deloitte and Oil & Gas UK published in December 2018. More than 90 percent of respondents in the survey recognise that collaboration is an integral part to their business performance, but some companies continue to find collaboration difficult to achieve in practice.

Total revenues of the UK supply chain dropped to £27 billion in 2017 from just under £40 billion in 2014, reflecting the reduction of investments and costs from the exploration and production companies amid the oil price downturn.

“The main reasons why attempts at collaboration fail remain consistent with previous years: they centre on misaligned expectations, commercial terms benefiting one party more than the other, and a general lack of trust,” the survey found.

In 2017, the rate of revenue decline slowed as E&P operators started to increase activity levels. Total turnover of the supply chain is seen to have stabilised last year. Moreover, there are signs that this year will see an overall stabilisation in revenues and potential improvement in revenues for the first time since 2014, when the increased oil and gas

In conclusion, Deloitte and OGUK said: “While understandable perhaps, reversion to old ways of working would put at risk the progress made over the last three years. The industry should try to ensure that the transformation to collaboration it has embarked upon is encouraged and continued.”

Source: Infield Rigs 19/04/2019 The data above focuses on the marketed rig fleet and excludes assets that are under construction, retired,

destroyed, deemed non-competitive or cold stacked.

SUPPLY CHAIN

As demand spikes, subsea supply chain could tighten By Iain Smith, president, Subsea Controls, Proserv The relative stability of the oil price for well over a year is now starting to shape the operational and capital expenditure decisions made by the industry’s big players. But the fallout from what so many companies in the upstream sector faced in late 2015, when prices had collapsed, may become the new normal for a long time ahead.

“Operators preferring faster subsea tieback turnarounds but lead times could be impacted by equipment and skilled personnel shortages”, writes Iain Smith, president, Subsea Controls, Proserv.

Banking on brownfields Notably, Rystad Energy also expects several regions, including South America and Europe, to see the majority of FIDs directed to brownfield sites. This is an example of operators still being mindful of the previous downturn and so they are choosing to target upgrades and tiebacks, where the financial outlay is smaller than for a major field development and much of the infrastructure is already in place.

As some oilfield services outfits simply went to the wall, others recognised that the way to live in straightened times is to tighten your belt and your purse strings. An emphasis on maximising assets and efficiencies has led to a wider strategy that caution is the best policy. After all, the price of Brent crude has still seen a swing of more than $15 a barrel this year and we are only at the end of Q1. Turbulence is regularly encountered. My firm Proserv has itself seen increased orders for subsea tiebacks in recent months with contracts won from major oil companies in both the North Sea and the Gulf of Mexico, including from international oil companies (IOCs). Another consultancy Wood Mackenzie has estimated that the supply chain capacity for subsea equipment is 25 per cent lower than it was before the oil price dip in 2014, while utilisation has declined by around 40 per cent in the intervening period.

This then also provides the best and fastest route to a return on investment. Spending wisely and cautiously remains the strategy at present.

But the firm’s analysts nevertheless regard the subsea segment as more resilient than the rest of the offshore sector and predict healthy growth moving forwards, with an average de-

Skills shortages

almost half of the oil and gas professionals questioned felt either quite worried, or very worried, about an impending crisis, while more than two-thirds believe it will have arrived within five years.

But reduced manufacturing capability is not the only challenging issue as the offshore market steadily picks up. Cost cutting also impacted recruitment policies and as margins tightened, apprentices were laid off and graduate intakes were frozen. The recent Global Energy Talent Index (GETI) highlighted a growing concern in the industry as retirements begin to remove experience from critical parts of the workforce and, with the lay-offs that took place, younger, skilled replacements are harder to find. If there are fewer experienced subsea engineers, armed with years of know-how, or machinists accustomed to working with bespoke and original designs, then the supply chain will inevitably slow down as work takes longer and potential errors creep in. A vital specialist component provider might also have gone under as the oil price plunged in 2015 onwards. Talent is leaving the whole upstream industry and the GETI survey revealed that

The concerns about the loss of skills cuts across from operators through to original equipment manufacturers and the area where the crunch is most likely to be felt is in engineering. What could compound the issue is the appeal of other industries from technology to the ever-growing attraction of renewables for new graduates.

So, operators are still not jumping into new greenfield projects, even if their profits have risen as their costs have decreased. But they are now definitely moving back into action and the global subsea sector could face supply chain challenges as exploration and production (E&P) activity in the offshore oil and gas industry gradually accelerates. Industry consultants have outlined that more final investment decisions (FIDs) are now being made and one firm, Rystad Energy, presently predicts almost $30 billion of extra capital expenditure in the E&P subsea segment across the next six years, as areas such as South America, Europe, the Gulf of Mexico and West Africa experience increased spending. mand of 300 subsea trees per annum over the next few years. Rystad Energy has recently released a report suggesting as many as 350 subsea trees will be installed annually by 2021. A tightening of supply versus demand is a genuine possibility in the near future. Subsea tiebacks are about a rapid return on investment, at the right field development cost, and, crucially, incorporating short lead times. The key problem for operators is that a significant amount of manufacturing capacity for trees has been taken out of the market by firms closing production facilities, across the globe, as a direct consequence of the downturn. Once this capacity is taken out, it isn’t easy to get it back. Right now, the best advice for IOCs and operators is to talk to service providers and suppliers early in the procurement process. There is presently spare capacity but we do expect the supply chain to tighten, particularly in the tree manufacturing segment, and this could result in slower lead times and potential project delays.

One obvious forward thinking step for the upstream sector is to look towards employing many more female engineering graduates, who are presently severely underrepresented. Nevertheless, the uptick in the offshore industry and the prospects for the subsea sector are encouraging, notwithstanding potential issues around supply chain squeezes and skills shortages. Rystad Energy has projected a $350 million rise in subsea equipment spending between 2019 and 2025.

Proserv’s Artemis 2G subsea electronics module is a next generation controls and communications technology for both green and brownfield applications.

COMPANY FOCUS

Parkburn Attends MacGregor FibreTrac 1500 Crane Demonstration Parkburn Precision Handling Systems, a specialist UK engineering company which provides onshore and offshore handling systems, attended MacGregor’s launch of the FibreTrac 1500 Crane in Norway on the 13th and 14th of February. The event was a major milestone for Parkburn’s Deep Water Capstan (DWC) - the key technology behind the FibreTrac Crane. The FibreTrac Crane’s use of fibre rope means the crane can deliver the maximum surface payload to any depth. In other words, you no longer need to have a 250t crane to deploy a 150t payload to 3,000m. “smaller crane larger payload to depth” This

fact alone results in many financial advantages to operators.

Deep Water Capstan - Designed, Developed and Tested by Parkburn

The Outcome

The first full-size DWC, built in 2012, was a 75t demonstration unit. This DWC completed an extensive test, evaluation and qualification programme which proved the technology.

The market launch followed extensive testing which started in October 2018. The FibreTrac Crane and its technology are ap-

Over 40 potential customers including ship owners and contractors were in attendance. In a comment by Høye G. Høyesen, Vice President Advanced Offshore Solutions MacGregor Norway: “We have received a lot of positive feedback today. Several of our customers are

Parkburn’s relationship with MacGregor originated in 2016 when Parkburn addressed the need to build strong partnerships to commercialise the DWC and MacGregor recognised the potential of fibre-rope cranes. The collaboration resulted in the FibreTrac 1500, a 150t active heave compensated offshore MacGregor crane equipped with Parkburn’s Deep Water Capstan. The crane also featured Lankhorst’s LankoDeep® rope made with Dyneema® DM20 XBO technology, terminations from Applied Fiber and a 3D measuring system for continuous rope monitoring from VisionTek Engineering. Parkburn’s Sam Bull, commented on the occasion: “This event would have not been possible if it were not for the efforts and dedication of many within our small company including the directors who have continued to invest in this technology to see this project through.”

proved under DNV GL’s ST-0378 ‘Standard for Offshore and Platform Lifting Appliances’ and is soon to complete the newly developed standard ST-E407 ‘Rope Based Deployment and Recovery Systems for Designated Service.’

considering fibre rope cranes.” On a final note, Director of Parkburn Andy Lawson commented: “We firmly believe in the market progression towards ultra-deep water and the DWC is the first step in having a range of product solutions for all requirements in this sector.”

INNOVATION & TECHNOLOGY ZONE SPONSORED BY LEYTON

LR ALLASSETS A NEW DIGITAL APPROACH TO ASSET PERFORMANCE MANAGEMENT

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T E C H N O L O G Y

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Interview: Tim Bisley, Senior VP Software, Lloyd’s Register

With digitalisation continuing to impact the industry, why is it so essential for companies to incorporate this into their business objectives? The rate of digitalisation and the benefits of going through that transformation is enormous in many industries. We specifically look at Oil and Gas and I see numerous opportunities for the traditional Oil and Gas companies to take advantage of the latest revolution in technology. Specifically, the subject we want to cover is the aging population and the knowledge and power that this population has, which is immense. All those years of working in these really intriguing and key areas walked out the door with them and that’s massively dangerous. You look at technology businesses and they look at it in quite a different way. Many years ago, they understood that knowledge and understanding of the business was very powerful. You look at leading technology companies and the last 15 years they’ve been chartering that. They haven’t had to rely on making that transformation today because it was part of the DNA from the beginning for many companies. Why is that important? As I said earlier, when people walk out of the door, that knowledge and understand-

ing walks with them. In this industry the knowledge that walks out is incredibly important. This is not just the know-how of maintenance schedules and inspection, which are all very important topics, but also from a health and safety aspect and the security aspect. Digitalisation is important and it’s the key way to capture that knowledge and then bring it into a platform.

Tell us about the ‘LR AllAssets’ digital platform Lloyd’s Register has created? What Lloyd’s Register has been specifically focusing on over the last few years is the development of our digital platforms and solutions, which are asset performance management and risk solution. This helps organisations to capture that information with a very simple model builder which brings that information into a library and then makes it accessible for the organisation in any fashion. It only gets richer with time, where we bring in more knowledge and capture more information as the organisation moves forward. So, it becomes the company’s asset. What we’re trying to do is stop DNA walking out the door. We want to add that DNA into a software platform.

As we have seen technology is creating new ways of storing and sharing data, how is this helping to tackle the aging workforce? The platform approach which we’ve taken is to use 21st-century technology builders which includes SaaS software’s of service and types of cloud technologies. Why is that important? Because ease of use to capture that information and pull it in is also equally important. If we want to bring in that information it’s got to be very easy and very simple to bring in, cross reference and then build upon and of course, take back out again. That’s why the only way that you can really do that is by moving to a digital platform. I think it’s impossible without it. A lot of people use spreadsheets, word documents and files and it’s impossible. It’s impossible to manage. It brings an enormous amount of risk to an organisation, especially when that walks out the door. What digital platforms do, such as our assets, is enable that to be used in a coherent way that reduces that risk in the organisation.

How is digital innovation playing a role in the future of the risk management for the company? What are the longterm benefits of using a platform like yours? The most important thing is to stop that data walking out the door, so we capture that. Then going forward, along with an aging population is also aging assets. The maintenance and frequency of break downs and risks of the business process becomes more and more. So, why is it important? On a secondary level, more is less. We’ve got that understanding,

INNOVATION & TECHNOLOGY ZONE

Whilst innovation plays a fundamental role in every economy, many UK firms remain unaware of the full range of Government incentives available to them in support of their product or service developments.

What do I mean by that? Think of a production line, think of an inspection programme. By using these data libraries, bringing in this information and keep enriching, what we’ve seen and what we believe is that you can reduce inspection and maintenance costs by about 50%. That’s just one huge saving there, in one particular area. The other benefit of managing equipment in this way and by managing information in this way, is you also see the equipment’s lifetime expanding. So, by having timely inspection, by understanding the risk of breakdown before it breaks, means we’re seeing that we can also help those physical assets to last 20% more in life time.

Oil and Gas has a very unique language which only means certain things to people in this sector. So, you’ve got to maintain and capture that understanding of the sector and that’s the people you’ve got today. Interestingly, there’s also a new set of skills with ground-breaking technology and people who possess both skills. There’s a whole host of data science and data mining that’s probably not in a lot of these organisations and that needs to be brought in. Then there’s the important piece of the skills of the organisation that’s there, along with companies like Lloyd’s Register who have a heritage and are helping organisations make the most of these assets in new ways.

“Leyton’s specialism is not only in their tax knowledge around R&D legislation, but in their technical knowledge. Their technical team have done our job, therefore they are readily able to identify areas of R&D that we previously thought were routine. The ease of the process really helps our staff get on with their work, and gives us peace of mind that such a niche area is being looked after. Would highly recommend them to businesses even if they already claiming, their record speaks for itself.” MD, Oil & Gas Engineering. With the changes in the industry, now is the ideal time to understand what help is available to your business from government incentives or to review your existing process in claiming relief.

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There are risk and cost savings in two areas. One area is obviously people, capturing that data perspective. It’s not sitting in heads, it’s sitting in platforms, so there’s a certain cost reduction there and a simplicity to managing that. The bigger one is once you understand the kind of inspection maintenance routines and risk, you reduce the risk of failure in the organisation.

I think a bit of both to be honest. The right strategy is to have a digital and people strategy. People who think digital and technology are going to fix everything on their own - that’s dangerous. I think it’s a blend of taking great technology and great people - the people who really understand the mandarin of the industry that you’re in. You need to have that level of understanding of that particular industry you’re in.

In the UK, in addition to our tax expertise, Leyton’s specialism sits with our Technical Consultants. Coming from a broad range of industries and sectors, they understand our clients’ processes and the challenges they face in day to day projects. As a result they can easily relate to the advancements being sought to proactively highlight your R&D activity.

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In addition to also minimising the risks, there must be cost savings too?

What new skills are digital solutions bringing to the industry? Are they creating a new demand for digital focused roles or is it more about adapting the existing skills of the workforce?

we’ve got that information. Lloyd’s has been that company that has been diagnostic to suppliers and we’re the good guys of the industry. We want to be very collaborative with suppliers and our clients, to be able to use this information in a way which ensures that they can manage maintenance, manage inspection and very importantly, reduce risk. We’re bringing smart solutions into this arena.

Leyton are proud to have returned over £35million in R&D Tax Relief, R&D Allowances, Patent Box Relief and Grant Funding to our Oil & Gas and supply chain clients. In many instances, our clients were already claiming under these schemes, often with the support of accountants or other specialist firms. In these situations we have been able to enhance their existing claims processes, resulting in a typical claim uplift of 40% for R&D tax relief alone.

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Leyton, with 20 offices, are Europe’s largest R&D Tax Consultancy, having assisted over 8,000 UK clients and returned over £500million in reliefs and incentives. The challenges and opportunities faced within Oil & Gas mean that now more than ever, firms are thinking differently about how they do things and are continually developing and improving their products and services.

INNOVATION & TECHNOLOGY ZONE

INNOVATION AND DIGITALISATION IN SUBSEA ROBOTICS

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ROVOP, the truly focussed, global robotics specialist with an unrivalled track record of reliability and a technologically advanced fleet of remotely operated vehicles (ROVs), has long recognised the potential for digital technology to drive increased efficiency and improve working practices in the subsea sector. Advances in mobile computing, connectivity and cloud are changing the world in which we live and work. The offshore energy industry is already applying these digital era technologies to enable new field developments, improve production efficiency and reduce operation and maintenance costs. Additionally, advances in robotics and their application will play a major role in ensuring the offshore sector remains attractive in a competitive energy landscape. Communications as an enabler In the same way that evolving communication technologies are driving societal and business transformation on land, new ways of working offshore are now made possible. High-speed communication links allow operators and service companies to extend the offshore worksite into the office space onshore. This has numerous benefits but most notably reduces the need to send expert personnel offshore and provides instant access for onshore teams to monitor operations. Furthering the worksite extension concept are developments such as remote ROV piloting. This has been accelerated by the emergence of low latency 4G LTE networks offshore, currently concentrated in the North Sea and areas of the Gulf of Mexico.

However their value can often be limited by the requirement to maintain close contact with a vessel for launch and recovery and in-mission position updates. Next generation AUVs are in development which can operate fully independently of a host vessel, unlocking the true value of autonomy. These robotic capabilities can be combined with conventional ROV modes to create hybrid systems, capable of being controlled from onshore when a communications link is available. Human supervision will remain important for delicate interventions on high value subsea assets.

Technologies enabling new ways of working

In other areas of the world where communication latencies remain high, it is more difficult to control the ROV using conventional techniques - the vehicles themselves must become smarter, requiring further developments in smart ROV control and task automation.

Doing more with what you have AUVs and fast ROVs targeted at survey and inspection applications offer further cost savings in the management of subsea assets. The required data can be acquired much faster than conventional ROV methods, reducing the length of vessel campaigns. Data quality is key, with data typically being processed onshore. Conventional AUVs are well established in seabed mapping and survey applications.

The subsea industry has historically been a breeding ground for technological innovation and that is likely to continue in the future. Some new entrants to the sector include snake-shaped robots and vehicles that change form-factor to carry out different work such as surveys for intervention. The technologies being developed will enable new ways of deploying subsea robotics, from field resident vehicles (both subsea and platform hosted) and ROVs deployed from unmanned vessels. These concepts will ensure a rapid response, maximise weather windows and therefore increase the availability of service, as well as enabling profitable new developments, particularly in remote areas. ROVOP’s head of technology Lee Wilson said: “ROVOP has, since its inception, used the very latest in subsea robotics systems to deliver a high quality and reliable service. “We recognise the continuing pace of innovation within our industry and intend to remain at the forefront by shaping exciting new developments to meet our clients’ needs.” With headquarters in Aberdeen and Houston, ROVOP’s global scope encompasses the oil and gas, offshore wind, telecoms and power transmission industries. For further information please visit www.rovop.com

INNOVATION & TECHNOLOGY ZONE

ACE WINCHES DESIGNS AND DEVELOPS AN INNOVATIVE CONCEPT TO DELIVER A COST-EFFECTIVE RISER INSTALLATION SOLUTION ACE Linear Winches are used in a wide range of applications requiring high line pulls and can be suitable for land-based shore pulls, offshore wire rope deployment and recovery operations, landfall, pipe-pulls, construction, salvage and other associated direct pulling operations. They offer a higher line pull-to-weight ratio than conventional winch styles.

ACE Winches Vertical Riser Installation Solution

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The success delivered by this ground-breaking design has provided confidence in the marketplace for the capabilities of this solution, leading to multi-million contract awards. A contract awarded for the Shell Vito project, covers the engineering, project management, manufacture, operational personnel, installation and pull-in of two 12” infield production flowlines with 10” steel catenary risers (SCRs), one gas lift flowline and SCR, and the umbilical system. Another contract awarded for the Mad Dog Phase 2 project for the pull-in of 6 x lazy wave

The securing of these projects has involved ACE Winches working closely with the client, to create a bespoke design which delivers the client’s needs at every stage of the process. A recent £5 million capital investment programme in ACE’s linear winches for their rental fleet has meant that their client offering has expanded to include shore approach, beach pulling and Subsea Umbilical’s, Rise and Flowlines (SURF) rise installation applications. As well as the innovative Vertical Riser Installation Solution, the investment has been used to develop an 800te Socket Passing Linear Winch primary for beach pull, landfall, operations and large pipe sizes. This was designed to pass sockets, used to connect wire ropes, reducing risk by minimising human intervention. The key benefits of the Vertical Riser Installation Solution are clear by the innovative design created by ACE Winches personnel. The new product effectively meets tight constraints on both technical parameters and financial optimisation. ACE Winches puts safety at the forefront of the development and delivery of any project. The reduction in operational time due to the continuous pull feature means minimal human intervention therefore reducing risk.

The continuous pull feature and increased speed means that projects with tight deadlines can be met in a cost-effective way, maximising efficiency in operations. The linear winch solution also achieves high tonnage requirements (400-500te or greater). The revolutionary design has significantly reduced the footprint of Riser Installations. Had traditional approaches been considered, such as using a drum or traction winch, the space requirements would have been far greater and therefore not feasible for many clients. Due to the innovative design, the new linear winch solution can provide flexible deck layout, allowing for high quality, safe solution to be located away from the pull-in location. The nature of the design allows equipment to be shipped to a desired location in sections and assembled on site by expert personnel to meet the client’s needs, allowing for flexibility and smooth project delivery. Committed to innovation, ACE Winches engineers actively challenge the industry norms. Their expertise and experience across many sectors mean they can deliver high quality projects and innovative designs to suit client needs on a global basis.

www.ace-winches.com

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The Vertical Riser Installation Solution offered a higher-line pull-to-weight ratio than conventional winches and was equipped with a continuous pull feature allowing for a reduction in operational time while maintaining high levels of safety. The linear winch solution successfully completed the installation and pull-in of two separate 8” Steel Catenary Risers (SCRs) in the Buckskin deepwater development.

steel catenary risers and 4 x umbilical risers to the hang-off positions on the FPU.

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Although a proven solution for many years, the inhouse team of design, manufacturing and project personnel at ACE Winches designed and developed an innovative concept to deliver a cost-effective riser installation solution. Presented with the challenge of limited deck space and extreme operating depths, ACE took existing linear winch technology and adapted it to allow the winch to be fitted into a vertical frame – reducing the footprint required for installation.

m o W WOMEN IN INDUSTRY

Women in industry

Sylvia Buchan Supply Chain Manager, Oil & Gas Authority

reer path but the strongest feeling I had was it felt like the right time to stretch myself, take the plunge into new waters and do something very different, challenging and more importantly something for me.

What sparked your interest in the supply chain?

As mentioned earlier I started in the Decommissioning unit and while I worked there the department changed its name to DECC (Department of Energy and Climate Change). I always wanted to know and learn about other work areas within the office but the one which really caught my interest was the Industry Development Team as they administered and facilitated the high-level Government industry forum ‘PILOT’. This was where many of the enabling initiatives which have enhanced and sustained the fortunes of the North Sea were developed and implemented.

Working in this team gave me exposure to a range of Industry leaders and a spectrum of Government ministers providing a wide understanding of all the different aspects of the sector. The team also drove forward many supply chain initiatives and I quickly realised that the greatest proportion of the oil and gas workforce was in the service sector. Ultimately the Supply Chain is the life blood of any industry because without a competent and experienced Supply Chain any industry will fail. I liked the thought of working in an area of great importance to the Oil & Gas sector and to understand how a significant number of quality jobs can be created and sustained.

How did you get in to the Oil and Gas industry, was this always the industry for you?

I started my career in the Oil and Gas industry about 12 years ago and it was a complete change of direction in my career path.

I joined the civil service in 1982 and worked for HMRC, my role there covered many different disciplines from working with the self-employed through to small and large companies on PAYE, Corporation and Capital Gains Tax. In my latter years, I was an Enforcement officer working closely with Sheriff Officers and representing HMRC in the local courts. During my time at HMRC I had two children and I took 7 years off to look after them. While I was on ‘Special leave’ I ran my own Highland dance classes with over 100 pupils which included organising and hosting annual examinations and dance shows. In 2008, I had I guess what you call an epiphany moment when I started to question my career and if I was content to continue working in the same place for the rest of my working life. I believe this moment was brought about by a couple of things that were happening at the time, the first

being my children were growing up and starting to reach that independent stage and planning their own career paths and the second was the job I was currently doing had changed and didn’t really excite or challenge me in the way I had enjoyed before. I began to look seriously at what was available and when I saw an advert for a Decommissioning manager in the Department of Trade and Industry it stood out for me in many ways. Living in Aberdeen I was very aware of the Oil & Gas industry but I had never had any real involvement or understanding of this sector. I felt this was the challenge I was looking for, something completely new that would take me out of my comfort zone but at the same time educate and hopefully inspire me in a way I hadn’t been for quite some time. I did all the relevant research into the sector and the more I learned the more I felt this was an industry I wanted to be part of. I applied for the role and when I was offered the position, I must admit there was a moment when I felt apprehensive and started to question my decision…. Will this be a step too far? Am I too old at 41 to start a new career? I am experienced in my current job why change now as I could easily continue to work at HMRC? These were all very natural feelings to have when embarking on a new ca-

In 2015 the Oil & Gas Authority was formed and I moved seamlessly from DECC to the OGA. What I really enjoy in my role in the OGA is the ability to bring more focus to the Supply Chain and have the autonomy to create and develop initiatives for the greater good of the sector. A current focus area for me and one that I feel passionate about is providing market intelligence and information on upcoming projects/work to the Supply Chain. This is being delivered through the Oil & Gas Pathfinder which is hosted on the OGA site and is available to all. The aim of this tool is to provide confidence to the service sector to invest in the necessary skills and technologies to meet future demand. In doing so this should make them competitive and well placed to win future contracts, employing more people and creating a good standard of living for many families.

What has been the high point of your career so far?

I have been lucky to have had several ‘high points’ in my career so far including working in the Houses of Parliament and a visit to Number 10. However, I think going offshore must be the main high point. In addition to working

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with the Supply Chain and Oil & Gas Operators in my role at DECC, I prepared briefings and drafted speeches for the Energy Minister and Secretary of States and accompanied them on several offshore visits.

The most exciting visit was when I went offshore to the Elgin platform with Michael Fallon who was the Energy Minister at the time. We, (the Minister, his Private secretary and I) had to undertake the survival training which was quite an experience but very important before the trip. When I first started my career as a civil servant, I never envisaged that one day I would be on an oil platform in the middle of the North Sea with a Minister of Parliament. For a ‘lass’ who grew up on a farm surrounded by animals and countryside, to one day be engaging with MPs, participating in meetings in the Houses of Parliament, where many important people and decisions have been made as well as accompanying Ministers Offshore all seems surreal and I am very fortunate and glad to be experiencing them all.

Have you had to face any challenges?

The main challenge for me was learning about an industry I previously had very little knowledge about. I think if I had studied all the STEM subjects at school that would have helped, however instead I had to work harder to gain the knowledge and understanding of the supply chain and industry which was necessary to do my job. I did this by listening and talking with more experienced colleagues, attending external and internal workshops and really looking for opportunities which provided engagement with people working in the industry e.g. networking events, conferences especially those that had presentations and panel sessions where experienced people shared their insight and knowledge. There is so much to learn and even after 12 years working in this sector, I am still learning. For example, the Decommissioning market is really starting to grow and I believe we, regulators, operators and supply chain, are all learning and increasing our knowledge simultaneously. We are at the early stages of this process and everyone is looking at the most cost effective, time efficient and safest way to carry out decommissioning. Technology is a vital factor for every industry and if we don’t start investing in new technology we run the risk of being left behind. Yes, there are risks being the first to try something new and by its very nature the oil and gas industry are risk adverse, but it is something companies need to consider and be brave for the future health of our industry.

For you, what is the key to being a good leader?

To be a good leader you need to be an attentive listener. As well as having your own vision as to how things could be done, be prepared to

take on other people’s ideas and work together to develop them further. In all industry’s we must embrace the future and there is no doubt we are now in the digital age. Many things have changed over the last decade and I fully anticipate we will see the same pace of change in the years ahead. So, to be a good leader you must have an open mind, always prepared to embrace new ways of working and have an imagination as to what may be possible.

What would you like to see happen in the industry in 2019?

As the Oil & Gas industry starts to recover it will be important that all the good behaviours which have been developed over the last couple of years are maintained, especially in relation to fair contracting principals. I would also like to see an ongoing reciprocal respect between the service sector and the operators and working together for the benefit of the industry. My hope is that by using the tools I have helped develop including Pathfinder and Supply Chain Action Plans, it will be possible to maintain and drive a culture of fairness.

What would be your advice for other women looking to get into the industry?

I remember my first time attending an industry event and it can be daunting to enter a room that is very male dominated. However, if you are knowledgeable in your sector, be confident to engage, participate and always smile, as it never goes wrong. From my experience, it is a very polite industry and you will realise quickly that everyone equally wants to hear your views.

If you want progression in this industry it is down to hard work, determination and demonstrating ability. Certainly, the culture within the OGA is diverse and there are equal opportunities offered irrespective of gender.

The Last Breath: A North-Sea diver’s survival story

On 18 September 2012, disaster struck for diver Chris Lemons whilst completing a job at the bottom of the North Sea, 204km (127 miles) east of Aberdeen. Chris had only been 18 months into his career as a saturation diver when he was assigned to perform work on an oil structure with experienced divers Duncan Allcock and Dave Yuasa, attached to the Bibby Topaz support vessel. Due to a fault, his umbilical cable fatally snapped and Chris was left unconscious on the seabed for almost 30 minutes with no oxygen or hope for survival. Thanks to his quick reactions and the heroic efforts of his crew, Chris miraculously survived and continues to dive today.

Today, he shares his story with OGV Energy Chris recalls, “It was 10pm at night, we were diving like any normal day at the office really. We were working on a manifold called the “Huntington Manifold,” which had a series of wells inside. We were replacing an area of pipework and doing some pressure testing. It was myself and my colleague Dave Yuasa in the water and Duncan Allcock who was the Bellman that day.” (The bellman is the standby diver, and may have to recover a distressed diver to the bell and give first aid if necessary and possible.)

“We had only been diving for about an hour. We were inside the structure, working away with no problems or indications of what was to come. The first indication we had of anything was that we had a constant line of communication between us and our diving providers through our helmets and then we heard the alarm sounding in the background. That is not unusual in itself, as sometimes they can be carrying out testing, so you can hear them anyway. However, he then informed us in a stern voice to get out of the structure and back to the bell. You could tell from the tone of his voice and the urgency, that it was not routine. You could tell it was something serious and something we had to act on right away. We made our way off of the structure that we were working on as quickly as possible.” “When we got out, we were expecting to see the bell in the water, but because the boat had a catastrophic failure of the dynamic positioning (DP) system, it had lost position and gone back behind and over our heads. Our umbilicals were trailing on top of the manifold, so we started to climb them to get ourselves back to safety and back to the bell. Dave was climbing his and Duncan was pulling his in, but because Dave could only pull one umbilical at a time as I climbed, I fatally left one loop of umbilical behind me. When I got to the top, I turned around to check that it was all safe and taken care of but literally in a heartbeat, I found that it had caught on a transponder bucket with a metal outcrop on the side of the structure. This should have actually been removed when they installed it, but it had been left in place and my umbilical had become caught underneath it. It happened so quickly that it become extremely tight, to the point that I couldn’t move it. It was at that point

that I realised I was in serious trouble as it was completely immovable.” “The first thing I realised was that I’d been sucked in towards it with the boat stretching my umbilical. The boat was pulling me in towards it and my legs started to splay, I thought they were going to end up snapping. It was jammed fast and at that point Dave realised that something was wrong. He turned and tried desperately to get back towards me, arms flailing and we had this little moment where we were eyeball to eyeball looking in each other’s eyes, before he was pulled backwards in to the darkness. Dave describes it like being in a film, which is exactly what it was like. He had this light on the top of his helmet and he was getting pulled back in to the darkness and we never saw each other again until it was all over..” “A couple of seconds after that, I lost the supply of gas to my helmet. The umbilical had stretched to such a point, that the hose that brings the gas down had kinked and I lost my supply of gas. I turned on the bailout supply, through the knob on the side of the helmet, which released the supply of gas we keep on our back for an emergency. That was pretty panic inducing, as you never expect to ever have to use that” “Shortly after, the communications cable was stretched to a point where it stopped functioning. The people I could hear in my earpiece crackled and disappeared, not long after that the whole umbilical snapped.

It literally went off like a shotgun and instantly I was in darkness... my light went off and I tumbled towards the seabed.” “Looking back, I wasn’t really sure what had happened but I knew my best chance of safety was getting back on top of the structure and to try to get myself back on the diving bell. I stumbled around in the darkness for a while and was very lucky to bump in to the structure, because I was completely disorientated. There’s no way of knowing which way is which and I could have very easily wandered in to the nothingness or “No man’s land” which would have made finding me very difficult. Bumping in to the structure, I found an old hose that we had been using to climb up and pulled myself to the top, expecting to see the diving bell up there and people coming towards me. I quickly realised there was nothing, not a speck of light in the sea above me.”

lonely place to end your days. You think of the people at home and the damage you’re going to do to the ones who love you, from the realisation that you are not coming home. It’s more of a sad feeling than a scary feeling.”

any obvious signs of brain damage, as oxygen deprivation can kick in pretty quickly.” “After we got back we had to decompress, so we had 4 days in the chamber. We all came out and had to have full medicals and cognitive tests and there was an investigation in to the cause of what happened.”

“When you first get stuck, panic seeps through you and you’re scared, desperately trying to get yourself to safety”

“That was a strange moment, as I did a quick calculation of how much gas I would have left. At that depth the bailout probably gives you around 5-6 minutes of gas and I’d already used about 2-3 minutes of this getting myself back up on the structure. Therefore, with no imminent signs of rescue or no where to go, you realise your chances of survival are pretty much zero.” “When you first get stuck, panic seeps through you and you’re scared, desperately trying to get yourself to safety. But when I got to the top of the structure and it dawned on me that the chances of me getting out of there were non-existent, a sort of a calmness comes over you, a resignation. I remember feeling very sad and a great deal of disbelief at how I had ended up in this position. It seems like a very strange and

Chris’s story has been turned in to a documentary film, titled the “The Last Breath,” which is now available to watch in selected cinemas in the UK.

“Eventually, the crew conducted what is called a “Hard reset”, which is effectively turning the DP system on and off. This happened nearly 30 minutes later and they struggled to get control of the boat. They did, however, manage to execute it successfully and this brought the boat back around and Dave came down to fetch me. By this point, I’d been unconscious for around 30 minutes or so. Unfortunately, there was over 100 people on the ship watching this through live screens because the remotely operated vehicle had managed to get to me not long after I fell unconscious. The crew had 30 long minutes of watching a twitching, then non-twitching body which must have been traumatic for them.” “Dave came down and put in a super-human effort to drag me back to the bell. He is a really fit guy and even he struggled pulling the weight of my body back to the bell. Dave did a remarkable thing there and popped my head back in to the diving bell.” “Duncan who was in there too, ripped my helmet off and gave me two breaths and amazingly, I came round almost immediately. I gasped then essentially came back to life. It’s amazing to me that I not only survived, but survived without

“Once they had completed the investigation, we were given the option to go back and after some discussion, we all decided as a team that we would. It was like getting back on a bike, we thought if we didn’t do it then, perhaps we never would.” “A little nervous laughter, then 3 weeks later we went back to the same place and finished the job. Once we were back in the water it was almost all forgotten and we carried on as normal.” “As a team, we learned a lot of practical things from the incident, in terms of the mechanics of getting someone back to the bail and we implemented changes to lots of little protocols on the boat as well. We also introduced the COBRA breathing apparatus. This is a rebreather, which provides you with a higher volume of gas in an emergency, so instead of 5 minutes you would now have 40 minutes in that situation.” “Ultimately, my survival is a testament to the unbelievable work and quick thinking of my crew on that day. It was a single point failure that could never really have been predicted and how the crew, and everybody on board the Topaz that night, reacted was a success story really. How we managed to get ourselves out of that situation without anyone dying is incredible and I will be eternally grateful to them. We learned a lot that night and we are stronger people for it.”

“...with no imminent signs of rescue

or no where to go, you realise your chances of survival are pretty much zero.

”

Craig Grassick Instructor at Survivex Aberdeen-born, Craig Grassick spent 17 years as a professional firefighter before becoming an instructor at Survivex, which is part of the 3T Energy Group - the UK’s largest energy sector training provider. He is now team leader for the company’s extensive portfolio of offshore survival and fire safety courses with responsibility for supervising all staff, equipment and the training experience for delegates in Aberdeen.

A DAY IN THE LIFE

Craig said: “I usually arrive at work by 7am for a 7.45am start. My first task is to analyse the course bookings for the day and ensure everything is in place and ready for delegates arriving. Every day at Survivex we run at least four offshore survival courses, two BOSIET courses (basic offshore safety induction and emergency training) and two refresher courses or FOET (further offshore emergency training). This means we have to prepare dozens of survival jackets and associated training materials for delegates attending courses. The logistics of managing this can be challenging, especially on busy days, and I work closely with the maintenance team to get everything ready. Once the equipment is organised, I meet with our team of instructors to go through the daily plan so everyone knows what they are doing and when. I’m responsible for planning staff resources and need to juggle things like work rotas, holidays and offsite training to ensure we have enough instructors to deliver all the courses running on any particular day. This can be the hardest part of the job. Throughout the working day there’ll always be queries or issues regarding delegates to deal with. As well as coaching delegates, I often find myself counselling them! For example, survival training requires people to be submerged underwater in a mock helicopter and rotated 180 degrees. Understandably, people can get extremely nervous and anxious before being turned upside down underwater and I regularly have to speak with delegates to calm them down and reassure them. Alterna-

tively, I might need to discuss next steps with a delegate who hasn’t met the relevant standard to see how we can help achieve their goals. Whatever it takes, we do our utmost to ensure delegates pass their training with flying colours and get all the certificates they need to meet the needs of employers. At some point during the day, I’ll undertake routine equipment safety checks. Thousands of checks like these take place on a daily, weekly and monthly basis to ensure everything is in pristine working order. Our industry has the highest health and safety standards in the world so we need to make sure all of the equipment is the highest quality and anything worn or broken repaired or replaced immediately. Sometimes my day includes meetings about upcoming events such as the relaunching of our crisis management suite in May, where we run a number of OPITO-approved crisis management courses. As part of the UK’s largest energy sector training group, Survivex operates a substantial, state-of-theart centre with two survival pools, several tailored training areas and a Helideck training rig. As well as equipment checks, all of our buildings and plant need to be inspected regularly to ensure we are fully compliant and meet the very highest industry standards. One of the most satisfying parts of my job is making sure the customer experience is exceptional. Working in a service industry means the customer is at the heart of everything we do and it’s great to be able to make a real difference to people’s lives.

We recently ran a very successful green hand programme to help new recruits get into the oil and gas industry for the first time. Even before the course had finished, people were getting calls with job offers for offshore work. Hearing about people securing work in their chosen field, which in some small part is thanks to your input, makes me feel very proud and is an extremely rewarding part of the job. Instructors play a huge role in helping people achieve their career goals but it’s a job you need particular skills for. First and foremost an instructor needs to have the relevant knowledge and experience to provide guidance and support. At Survivex our strapline is ‘The real experts’ and we pride ourselves on the fact that all of our instructors have solid in-the-field

experience to support delegates. You also need to have the confidence and self-belief to be able to stand up in front of a classroom of people so good communication skills are critical. We’re providing critical information, which could mean the difference between life or death, so you need to be able to keep people engaged and ensure memory retention. Being entertaining can play a big part in this so I would say a good sense of humour is also an essential characteristic for any instructor. Humour certainly comes in handy. On one particular fire safety course I was instructing recently the training room was pitch black and filled with smoke to replicate a fire in an offshore environment. The delegates began frantically trying to fight the fire only to quickly realise they

were directing their hoses at the orange glow of an outside street light showing through an open door. They were never going to extinguish this! Everyone laughed helping ease the pressure and tension of a demanding course. After a full but satisfying day training delegates, organising staff and equipment and resolving queries, I’m ready to leave the centre by 4.30pm and head off home.

To find out more about the extensive range of energy sector training courses available at Survivex visit www.survivex.com or call 01224 794800.

“

I LOVE MY JOB!

Knowing I’m contributing to the overall safety standards within the global oil & gas – the highest in the world makes me feel proud and is a fantastic reason to get up in the morning.” Craig Grassick - Instructor at Survivex

WORLD PROJECTS MAP

WORLD

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PROJECTS MAP APRIL 2019

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1 5 1 ARGENTINA -Argentina offshore round attracts US$1bn in bids Some 18 of the 38 areas offered in Argentina’s first ever offshore round launched in November received bids to conduct exploration by 13 companies for total investments of US$995mn.

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Four of those companies have no previous operations in Argentina: Mitsui, BP, ENI and Tullow. The rest are Qatar Petroleum, Equinor, Exxonmobil, Total, YPF, Shell, Pluspetrol, Tecpetrol and Wintershall, according to a government release. No bids were made for the other 20 areas. In the Western Malvinas basin, offers were made for nine areas for a total of US$776mn. Three of those areas, MLO-113, MLO-117 and MLO-118, off the coast of the southern province of Tierra del Fuego, were awarded to Qatar in a consortium with Exxonmobil, according to statements from both companies. One area in that basin, MLO-123, was awarded to a consortium formed between Total Austral, YPF and Equinor, according to Total. Lastly, the Austral basin received offers worth US$38mn. In the northern Argentine basin (see image below) off the northern coast of the city of Mar del Plata, which received offers totaling US$181mn, areas CAN-107 and CAN-109 were awarded to a consortium formed between Shell and Qatar Petroleum, the two companies said in separate releases. CAN-111 and CAN-113, in the same area, were awarded to Total Austral in conjunction with British Petroleum, Total said in a release. However, these award decisions still have to go through a vetting process. The official adjudication, along with those of those areas that received several competitive offers, will be announced on May 16. After that date, the winners will begin 3D seismic data acquisition, after which they will start with exploratory drilling. The initial exploratory phase lasts four years, with an additional four years for the second phase. Tender winners may ask for an additional four-year extension.

MEXICO - Premier Oil has made successful well test of Zama discovery Premier notes the press release by Talos Energy, the operator of Block 7 offshore Mexico, announcing the successful drill stem test (DST) of the Zama-2 side track well (Zama-2ST1). This follows the successful Zama-2 appraisal well which completed in January. DST operations were successfully conducted on Zama-2ST1 and a combined oil flow rate of 7,426 bopd was achieved from two separate flow tests over a total perforated interval of 248 ft. As planned, rates were restricted due to limited drawdown to prevent sand production. Flow and pressure measurements indicate a prolific reservoir. The Zama-2ST1 logged 873 ft of gross oil bearing reservoir with a net-to-gross ratio of c. 70%, in line with expectations. In addition, 714 ft of whole core was cut with 98% recovery. The rig will now move to drill the third and final Block 7 appraisal well (Zama-3) to confirm lateral reservoir continuity and quality in the southern part of the field. The program remains ahead of schedule and under budget. Tony Durrant, chief executive commented, “We are very pleased by the productivity demonstrated by this well and we continue to collect further evidence that Zama has a world-class reservoir with excellent quality and well-connected sands. This has positive implications for the expected ultimate recovery from the field and will help us to optimise the field development. We look forward to the conclusion of the Block 7 appraisal program with the Zama-3 well.”

RUSSIA - Russia Sets Sights On Energy Resources Under Arctic Circle Rosneft, the state-owned Russian oil giant, has announced plans to actively pursue development of a vast production and transportation network throughout the Arctic. The declaration follows a meeting between its Chairman and CEO Igor Sechin, and President Vladimir Putin. However, the bombast begs the question: is the strategy economically viable, or a bid to bolster Russia’s global energy position regardless of cost? The plan from Rosneft’s perspective is simple: unlock the 1.5 billion tons of oil in Russia’s Far North by developing an “Arctic Cluster” of oil and gas fields. Rosneft’s prospective projects will also help Russia establish a long-sought-after North Sea Route (NSR), which would cut the distance of shipping lanes between key ports in Europe and the Far East by as much as 40%. Rosneft already operates several promising sites in Russia’s Arctic region including the Vankor field (together with Bharat PetroResources Ltd) and Suzunskoe field. The latter reached its 70-millionth barrel of oil produced since 2016. But these are just the initial pieces of Rosneft’s grand Arctic plan. While the energy resources are there, project and operating costs in the harsh Arctic could prove prohibitive to full-scale development. US-imposed sanctions limit Russia’s ability to borrow funding in dollars for new oil projects, scaring off oil majors like Exxon and BP and the investment flows they bring with them. Sanctions also prevent Russia’s oil and gas industry from accessing the high-tech drilling and surveying equipment needed to exploit Arctic resources.

WORLD PROJECTS MAP

BRAZIL - Halliburton awarded Shell Offshore exploration contract in Brazil’s Campos, Santos basins Halliburton has announced the execution of an integrated services contract with Royal Dutch Shell for post-salt development and pre-salt exploration in Brazil’s Campos and Santos Basins. Under the contract, which includes a three-year term with a two-year extension, Halliburton will provide drilling services to drive greater efficiency by integrating multiple product offerings and technologies. “Our integrated services model is designed to help accelerate new field development, reduce drilling and completion costs and increase recovery through the utilisation of our innovative technologies and basin insight,” said Anouar Fraija, V.P. of Halliburton Brazil. “We are excited to win this award and collaborate with Shell to deliver integrated solutions that maximise their asset value.”

LIBYA - Oil and gas production facing biggest threat since 2011 The chairman of Libya’s National Oil Corporation, Mustafa Sanallah, has said that renewed fighting in the country could “bring down” the country’s production of crude oil. During his meeting with Chairman of the Presidential Council of the Libyan Government of National Accord (GNA), Fayez Al-Sarraj, Sanallah said that the country’s export of oil and gas is facing its biggest threat since 2011. This is due to the size of the battles and the repercussions of war, the most recent of which have taken place in the suburbs of Libyan capital Tripoli, according to the “Information Office of Al-Sarraj” on Facebook. To date, oil supplies in Libya have not been affected by the clashes between the forces of General Khalifa Haftar and the forces of the internationally recognised Government of National Accord. However, business news agency Bloomberg has now predicted that “the consequences of these clashes will not be seen quickly,” noting that “the oil fields and major export terminals are far from the clashes, but history shows that fighting anywhere in Libya can cause huge fluctuations in production”. Most of Libya’s oil infrastructure is located in the east of the country. Despite the growing power of Haftar’s forces in the east, oil revenues are still flowing to the Central Bank of Libya in Tripoli.

Halliburton has an established track record in Brazil’s pre-salt fields, which are among the most complex wells ever drilled, and require a broad scope of technologies and capabilities to achieve economical and operational success. Halliburton also maintains a technology centre in Rio de Janeiro which serves as a global centre of expertise for deepwater innovation and training. The centre’s capabilities allow Halliburton to more quickly translate offshore knowledge into new technologies that reduce uncertainty and increase efficiency and reliability.

CANADA - Number of companies producing oil & gas in Western Canada drops 17.5% since 2014 A lack of capital for drilling coupled with rising exploration costs make it unsurprising that fewer players are operating in Western Canada’s oil and gas fields, analysts say. A study from consulting firm XI Technologies of Calgary finds that almost 300 names have disappeared from a roster of all companies producing oil and gas in Western Canada since global oil prices began crashing at the end of 2014. A total of 1,334 active companies — privately held and foreign-owned entities as well as publicly traded firms — reported oil or gas production in Western Canada in December 2018, XI found. That’s down 282 names or 17.5 per cent from 1,616 in the same month four years earlier, a shift that XI data solutions specialist Shovik Sengupta says points to a period of significant consolidation in the industry. “There’s no capital,” said Tom Pavic, senior vice-president with Calgary-based Sayer Energy Advisors, when asked what he thinks is causing the shrinkage. “There’s an uptick in oil prices but we’re not seeing it with the producers’ stock price on the exchange.... No one wants to touch Canada because of all the uncertainty as it relates to pipelines.” Most of the missing names are likely to be small players who haven’t been able to win investor backing to pay for drilling expensive oil and gas wells in trendy unconventional resource oilfields like the Montney and Duvernay, added Sayer president Alan Tambosso. The loss of producer names is more stark among publicly traded issuers.

As of Dec. 31, 2014, a total of 108 oil and gas companies with a market capitalisation of $311 billion were listed on the Toronto Stock Exchange, while 229 smaller companies worth $5.1 billion resided on the TSX Venture Exchange.

NIGERIA - Senate Assures AGIP On U.S.$13.5 Billion Oil Project The Senate has assured the Nigerian Agip Oil Company (NOAC) and other stakeholders of its support and commitment for the commencement of the $13.5 Billion offshore Zabazaba crude oil production project that is awaiting final investment decision. Earlier, the Vice Chairman and Managing Director of NAOC, Mr. Lorenzo Fiorillo, said the company was committed to promoting value addition in Nigerian economy by deliberately utilising Nigeria human resources and materials and services in its gas and oil activities in compliance with Local Content Act adding that the exhibition programme is geared towards showcasing research and development in emerging technology towards growing Nigerian Content in the Oil and Gas Industry.

Four years later, the number on the senior exchange had fallen by 31 per cent to 72 with a market cap of $214 billion, and venture listings were off by 44 per cent to 119 companies worth $3.9 billion. The market for oil and gas corporate sales looked to be heating up last year but stalled on lower global oil prices over the summer and price discounts for western Canadian oil in the fall as production exceeded export pipeline capacity, said Stephanie Stimpson, a Calgary-based partner at law firm Torys LLP specializing in oil and gas mergers and acquisitions. Calgary-based Canadian National Resources Ltd. — the largest listed producer in both 2014 and 2018 — doubled the number of subsidiary companies it operates in Western Canada from 77 to 135 over the four years, a period when it made numerous large and small acquisitions. In spite of the acquisitions, XI reported CNRL production fell from about 741,000 barrels of oil equivalent per day in December 2014 to 618,000 boe/d in the same month of 2018.

CONTRACT AWARDS

CONTRACTS

CONTRACT AWARDS

Turan Drilling and Engineering wins $500 million BP contract in Azerbaijan Turan Drilling & Engineering Company LLC (A KCA Deutag and SOCAR AQS Company), today announces that it has been awarded its first contract, which is with BP Exploration (Caspian Sea) Limited (“BP”).

companies and combines KCA Deutag’s expertise as a world leading drilling and engineering contractor with SOCAR AQS’s unrivalled knowledge, experience and infrastructure in the Caspian region.

efficiencies through combining the existing infrastructure, expertise and resources of its parent companies. This contract will also serve the development of local talent in the drilling industry and related services in Azerbaijan.”

The contract has a value of approximately $500 million for the firm period or $700 million including all options, and is for the operations and maintenance of seven platform drilling rigs operated by BP in the Caspian Sea pursuant to Product Sharing Agreements. These are the East, West and Central Azeri, Deepwater Gunashli, West Chirag, Chirag and Shah Deniz installations. The initial term is for five years with two one year extension options.

Mr. Nasib Hasanov, Founder of Nobel Oil Services, SOCAR AQS’s major shareholder, said, “SOCAR AQS is a leading integrated drilling contractor with proven capabilities and solid infrastructure in the Caspian region. We are very pleased that our joint venture, Turan Drilling & Engineering, has been awarded this contact, which is a significant milestone in its development. This contract represents client recognition of our joint venture’s capability and capacity to deliver complex projects with the application of the highest industry standards. Established as a local company, Turan is well positioned to provide significant cost

Commenting on today’s announcement Norrie McKay, CEO of KCA Deutag said, “KCA Deutag has worked in the Caspian for a number of years now, and we are delighted BP has recognised the strength of our new Azerbaijani joint venture with the award of this substantial contract to Turan Drilling & Engineering.

Formed in July 2018, Turan Drilling & Engineering is a joint venture between KCA Deutag and SOCAR AQS. It is jointly owned by the two

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“The Caspian onshore and offshore drilling and engineering market continues to be highly active, and we believe that our local presence puts us in a strong position to take advantage of other business development opportunities as they arise.”

CONTRACT AWARDS

Three more wells for Aquaterra Energy in latest Lundin Norway award The project follows the company’s initial work in the field which saw it manage the initiation of 14 wells from 2014 through to 2018. The contract will commence in 2019 and is expected to be completed 2020/21.

Aquaterra Energy, a leader in global offshore engineering solutions, has been awarded a contract by Lundin Norway to deliver early well construction, via its Well Start solution, on three additional wells in the Edvard Grieg field.

din Norway has gone from strength to strength given our record of delivering seamless well initiation for the company. “This also cements our place as the leading provider of engineering solutions in the North Sea, following our recent success in the Johan Sverdrup field.

Well Start handles all early well construction activities including handling third-party interfaces on the client’s behalf, engineering and supply of equipment. This package of services streamlines the supply chain, which minimises the risk of delays and provides operators with multi-million-dollar savings in rig time and resources.

“We’re proud that we are opening up even more opportunities for our clients, and that they are realising the benefits our Well Start package can bring to them. Our team now has the process of reducing time to first oil down to a fine art.”

Christian Berven, Business Development Director at Aquaterra Energy, said: “This contract award is a testament to the previous success we have had in this field. Our relationship with Lun-

The Edvard Grieg field, is located in production license PL338, in theUtsira High area of the Norwegian North Sea. The field began production in November 2015.

Aberdeen firm wins £4.5 million contract to supply equipment for oil and gas sector First Integrated Solutions has been awarded a £4.5 million contract to provide rental equipment services and associated consumable purchases with Spirit Energy. The company, with its head office in Bridge of Don, in Aberdeen, and sites in Godstone in Surrey, and in Trinidad, provides specialist rental equipment and lifting and inspection services to the oil and gas sector. The contract will see First Integrated Solutions provide support for Spirit Energy’s onshore Barrow Gas Terminal and their operated offshore facilities.

Martin Suttie, First Integrated Solutions managing director, said: “This contract win is validation of many of the improvements we have been making in the business including investment in new fleet, team training and maximising the amount of rental equipment ready on the shelf. Spirit Energy, who operate the gas terminal which supports the Morecambe Bay fields, was created in 2017 following the combination of Centrica’s Exploration & Production business and Bayerngas Norge AS. The business is 69%-owned by Centrica plc, with the remaining 31% owned by Bayerngas Norge’s former shareholders.

Dril-Quip Provides Update on Bookings and Contract Awards Dril-Quip, Inc. announced that it had product bookings in the first quarter of 2019 of approximately $99 million, which exceeded its prior guidance of $80 million. Included in the first quarter 2019 bookings was a previously disclosed order from a customer to supply subsea wellhead systems valued at between $25 - $35 million and an order from another major customer to convert its inventory of subsea wellhead systems into Dril-Quip’s new BigBore IIeTM wellhead system. The order to supply subsea wellhead systems valued at between $25 - $35 million is for BP and delivery of these systems is expected to begin in the fourth quarter of 2019 and continue into the first half of 2021. This order is placed under the Global Agreement between BP and Dril-Quip for supply of equipment and services, established in 2013 and recently extended until 2023. Dril-Quip’s President and Chief Executive Officer Blake DeBerry commented, “We are pleased to receive this order from BP and believe that it is another positive indicator of an upturn in global offshore activity. BP is an important long-standing customer for Dril-Quip and we

are very excited that the extended Global Agreement includes optionality for BP to order our new BigBore IIeTM wellhead system, which is part of our new technology efforts to provide structural changes in well operations that allow our customers to reduce equipment and rig time. The BigBore IIeTM includes an integral two million pound high-capacity casing hanger lockdown that eliminates the need for drilling/production lockdown equipment and can eliminate up to five trips into the well. Dril-Quip looks forward to continuing our successful relationship with BP as we deliver under this order.” Dril-Quip’s backlog at the end of the first quarter grew to $304 million, which includes the previously announced contract award to supply top tensioned riser (TTR) systems and related services for the development of the Ca Rong Do Project located offshore Vietnam operated by Repsol. Dril-Quip recently entered into an amendment with Repsol to extend that letter of award until December 31, 2019. The Company did not include this project in its 2019 revenue guidance provided in its fourth quarter 2018 earnings release and does not expect this project to impact its 2019 revenue due to the continued delays in the project.

CONTRACT AWARDS

Forum secures ROV contracts to support DOF Subsea Forum Subsea Technologies has secured orders from DOF Subsea to supply three of its Ultra Compact Perry XLX-C work-class remotely operated vehicles (ROVs). DOF Subsea will deploy the vehicles onto three of its ROV support vessels for recently awarded projects in Brazil. The systems will be manufactured at Forum’s UK facility at Kirkbymoorside in Yorkshire and delivered in the first quarter of this year. The compact 2,000m rated 150HP XLX-C vehicles, which are coupled with compact Dynacon LARS designs, are the first of their kind to be delivered to the market. Forum has engineered the ROV footprint to suit the current specifications required by DOF Subsea and their prospective clients. These latest Perry ROVs are powered by a capable, work class performance 150HP main and auxiliary hydraulic system providing unparalleled thrust in an ROV of this class.

Kevin Taylor, Forum Subsea Technologies vice president of subsea vehicles said: “Forum’s range of Perry ROVs are the most long-established and recognisable vehicles in the subsea industry due to their quality, reliability and flexibility.” “In total, DOF Subsea has more than 60 of Forum’s ROVs in their global fleet. As the market continues to pick up from a sustained downturn, it is reassuring to see this ongoing confidence in our systems which meet the operational resilience and safety standards our clients require.” “Forum Subsea has a robust strategy of providing first-class engineering, after market support and service to offshore contractors from our operating centres in the key regions. We look forward to continuing to support DOF Subsea in their global operations.” “DOF Subsea is pleased with Forum and the long relationship providing DOF Subsea with the high quality of work-class remotely operated vehicles, including support needed for our ROV business,“ said Ingve Osberg, DOF subsea group asset manager.

McDermott awarded large offshore EPCI contract by Qatargas McDermott International, Inc. has announced a large* contract award from Qatargas for engineering, procurement, construction and installation (EPCI) for expansion of the North Field offshore facilities in the State of Qatar.

Doha, Qatar, with fabrication primarily taking place at McDermott’s facilities in Batam, Indonesia. Vessels Derrick Barge 50 and Derrick Barge 27 from McDermott’s global fleet are scheduled to undertake the installation and completions work.

The contract for new facilities includes the full suite of EPCI services for eight new offshore jackets.

The work is expected to begin immediately and will be booked into McDermott’s second-quarter 2019 backlog.

McDermott plans to use its project management and engineering teams in

* - McDermott defines a large contract as between $50 million and $250 million.

Shell awards contract to Halliburton for offshore project in Brazil Royal Dutch Shell has awarded a three-year contract to Houston oilfield service company Halliburton to explore and develop two projects off the coast of Brazil. The projects are located in Brazil’s Campos and Santos Basins. The Campos Basin is 90 miles off the coast of the State of Campos while the Santos Basin is about 140 miles southeast of Sao Paulo. Under the contract, Halliburton will provide drilling service. The deal includes an option for a two-year extension. “Our integrated services model is designed to help accelerate new field development, reduce drilling and completion costs and increase recovery through the utilisation of our innovative technologies and basin insight,” Halliburton Vice President of Brazil Anouar Fraija said in

a statement. “We are excited to win this award and collaborate with Shell to deliver integrated solutions that maximise their asset value.” A vibrant nation of more than 209 million people, Brazil holds nearly unlimited natural resources that include large reserves of oil and natural gas. Halliburton has had a presence in the South American nation for decades and maintains a technology centre in Rio de Janeiro. The centre specialises in deepwater technology and training. Founded in 1919 and headquartered in Houston, Halliburton employs more than 60,000 people in 80 nations. The company reported a $1.66 billion profit on $24 billion of revenue during 2018.

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ON THE MOVE

ON THE

MOVE

“The North Sea’s decommissioning spend is expected to rise to $1.9 billion in 2019 and for the past two years, the number of wells decommissioned in the UKCS has outstripped those drilled. With this activity requiring substantial investment, many operators put a halt on decommissioning when oil price dropped in 2014 and instead resorted to press on with business as usual in the hopes of maximising returns from producing assets. Drawing this out has negatively affected the bottom line for many by offering little to no return, with those impacted now turning their attention (and funds) to the pressing obligation of retiring ageing fields. Forecasts expect that 33,000 wells worldwide will need to be decommissioned over 20 years and the UKCS accounts for a sizeable portion of this estimate in the near term, with over 100 offshore platforms, 2,379 wells and 5,700 kilometers of pipeline anticipated to be decommissioned in the next decade alone. This provides the local industry with a unique position to capitalise on this head