OGV Energy - Issue 28 - December / January

ISSUE 28

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FEATURES IN THIS ISSUE

UK North Sea Review Renewables Zone Denmark reveals plans for more energy islands North Sea oil platforms to be adapted to run on wind power

2019 Review Oil and gas industry review

Supply Chain People in Energy Yearly overview

Innovation Zone Top innovations and technologies of 2019

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FEATURES THIS MONTH

INNOVATION & TECHNOLOGY

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2019 Review - Oil and gas industry review

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Supply Chain and Procurement

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Pentagon Freight Services strengthens their project division

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ICR Integrity Quickflange Account Manager, Lindsay Thomas

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Rotech Subsea settles back into Middle East market with ground-breaking CFE/J technology

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OGV Energy join forces with Robert Gordon University to investigate Energy sector challenges

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Top innovations and technologies overview 2019

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UK North Sea Review

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On the move - Recruitment

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Renewables

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Bassoe Analytics - Rig Utilisation

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People in Energy

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OGA Project Tracker - Pathfinder

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World Projects Map

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Events

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Contract Awards

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Legal & Finance

Editorial

Advertising

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LETTER AND CONTRIBUTIONS Journalists Tsvetana Paraskova Katie Milne Loren Steffy Design Ben Mckay Fara West

Editor’s Letter

Kenny Dooley Managing Director

Contributors Brimmond Group Rotech Subsea Pentagon Freight Stats Group ICR Namaka Subsea TEXO Group Leyton RCP TENDEKA C-Kore Systems Restrata Viewport 3 S-Cube CPI ACE Winches Drilling Systems Safe Influx Spectis Robotics

FOR MORE INFORMATION VIEW OUR MEDIA PACK

2019 has been another very busy and productive year for OGV Energy! As it draws to a close, we look forward to 2020 with optimism for what promises to be another transformative year as the Energy transition begins to make its presence felt on the global stage.

OGV Energy are proud to have played its part in helping to communicate this transition and have attended a record number of events as media partners this year and started to hold our own events in Aberdeen, Houston and for the first time in Abu-Dhabi!

We have hosted pavilions at major Energy events such as, Offshore Europe, OTC and ADIPEC and all while successfully growing the “OGV Energy” brand as a multi-media platform for the Energy industry. This increased brand exposure has allowed us to introduce our “OGV Energy” App in November this year and look into additional digital services that we will be looking to launch next year!

We also look forward to welcoming 2 key new starts for the business in the new year as we seek to further improve the quality and bandwidth of the content across our printed publications, digital services and events.

This issue, we have Brimmond Group as the cover star. Brimmond Group are a company that deliver innovative, bespoke and integrated

solutions for any hydraulic, mechanical and electrical need.

Over in our “People in Energy” section, we have provided an overview of the inspirational people who have featured in the pages of our most popular segment throughout the year!

This year the industry has had a large focus on digitalisation and renewables, which OGV Energy has supported through our “Innovation and Technology zone” and new “Renewables” section in the magazine. In this month’s issue, we look back at all the great innovations and technologies that we have featured to pay tribute to some fantastic contributions to industry.

With the changes that we welcome in the new year, it is also time to announce that this will be my last letter as editor for OGV Magazine.

As of January 2020, I will be passing on the role of editor to a new addition to the team who will feature in this slot for all future magazine issues.

I would like to say a huge thank you to everyone who has worked with us this year, not to mention all of our fantastic readers and subscribers who make producing our monthly publications possible. With much to look forward to in the next year, we hope you have a Merry Christmas and a Happy New Year!

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UK NORTH SEA

DECEMBER

UK North Sea Oil & Gas Review

By Tsvetana Paraskova

Several annual industry reports, many contracts, corporate news, and drilling updates were the highlights in the UK oil and gas sector this past month.

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Industry association OGUK published at the end of November its tenth annual Decommissioning Insight report for 2019.

“Decommissioning is an ever-growing market for the UK, and with around £1.5 billion to be spent each year, this represents a significant and enduring opportunity for the UK supply chain,” the report says, highlighting the finding that decommissioning now accounts for just under 10 per cent of the overall expenditure in the UK oil and gas industry.

Over the next decade, expenditure on decommissioning activities in the UK Continental Shelf (UKCS) is expected to reach £15.2 billion, in line with last year’s assessment of £15.3 billion, OGUK said in the report. Well decommissioning with £6.8 billion makes up 45 per cent of the forecast expenditure over the next decade. More than 6,000 kilometres of pipelines are to be decommissioned in UKCS over the next ten years. A total of 1,630 wells are expected to be decommissioned over the next decade, with around 150 wells to be decommissioned in the UKCS each year.

Commenting on the report, OGUK’s decommissioning manager Joe Leask said:

ing on specialising in areas including offshore well decommissioning and onshore dismantling and disposal. These innovative business models offer industry real choices whether operators carry out decommissioning themselves or pass the scope to those companies offering increasingly competitive solutions.”

gramme to deliver the largest OBN multi-client survey ever conducted in the UK Central North Sea (CNS). The survey is expected to begin early next year, and has already received significant industry interest. The survey is being partially pre-funded by BP. First results from the survey are targeted for the first quarter of 2021.

Another report, by OGUK and PwC, showed on 20 November that the North Sea and its supply chain could become global leaders in the energy transition with Carbon Capture, Utilisation and Storage (CCUS) technology and the production of hydrogen.

Petrofac announced on 20 November the acquisition of W&W Energy Services (W&W) to acquire an entry-level position in the US onshore Operations and Maintenance market. Petrofac also said that it had secured US$120 million worth of Engineering & Production Services EPS contracts, including a new three-year Engineering, Procurement, Construction and Commissioning (EPCC) Framework Agreement (FA) with a North Sea operator. The new projects awards coincide with key North Sea contract extensions for EPS, including a two-year renewal of an existing seven-asset Operations and Maintenance contract, and the extension of EPS’ existing Engineering Services contract with Chevron North Sea to June 2020.

OGUK also published in the past month its second annual Energy Transition Outlook, presenting the opportunities and challenges for the UK oil and gas industry in the low-carbon future.

“The oil and gas sector will have to earn its position in this new energy world,” OGUK’s CEO Deirdre Michie said in the foreword to the report.

The report shows that many operators and supply chain members of OGUK already have direct involvement in developing and supporting the rapid growth in low-carbon solutions, from carbon capture (CCUS) to offshore wind, from electric vehicles (EVs) to biofuels and hydrogen.

The report also called for urgent action to progress carbon capture and storage in the UK.

Joe Leask, Decommissioning Manager, OGUK

“We’re already seeing exciting new companies emerging as specialists in decommissioning, either offering full-scope solutions or focus-

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“The government and industry must work together to progress to the next stage five key projects across the UK which look to capture, transport and store carbon dioxide from heavy emitting industrial processes including power plants,” OGUK says.

In company updates and contracts, French geoscience company CGG announced a pro-

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Maersk Supply Service said on 21 November that it had won an integrated FPSO tow and mooring installation project for an operator in the North Sea. The scope of the work includes project management, engineering and offshore execution involving six anchor handling tug supply and subsea support vessels. Maersk Supply Service is set to provide the full scope of work—from site preparation, installation of pile anchors, tow of the FPSO, through to final hook-up operations.

Hibiscus Petroleum announced on the same day that had selected the concept for the development of the Marigold and Sunflower oil fields in the UKCS. The company aims to establish a field development plan for Marigold and Sunflower by the end of 2020. Development options that have been considered included a fixed platform, a

UK NORTH SEA floating solution, as well as a tieback to existing, nearby infrastructure solutions. The selected concept is to drill and complete subsea wells that are tied back to a Floating Production Storage and Offloading unit (FPSO) via flexible flowlines and umbilicals.

This concept was chosen because it enabled the highest project value with the lowest execution and commercial risk, Hibiscus Petroleum said.

Investment company Reabold Resources Plc said on 22 November that Corallian Energy, in whose fundraise it took part, would use the proceeds to prepare for a planned Initial Public Offering (IPO) early in the second half of 2020, and to complete the work required to finalise UK North Sea well locations for both the Unst prospect in the Viking Graben and the Dunrobin prospect in the Inner Moray Firth.

Longboat Energy, a company set up by the former management team of Faroe Petroleum, started trading on the AIM market of the London Stock Exchange on 28 November.

The former Faroe Petroleum managers created Longboat Energy to fast track the creation of a new full-cycle North Sea oil and gas company.

Ithaca Energy provided on 28 November an operations and trading update, saying that drilling at Ithaca-operated Captain field, which involved the drilling of five infill wells and two well workovers, was completed in November. The drilling concluded the first of the two planned well campaigns of the Phase 1 enhanced oil recovery programme on the platform area of the main field, with the second campaign scheduled to begin at the start of 2021. i3 Energy plc also provided a 2019 drilling summary on 28 November. The Company will now prepare for a multi-well appraisal of Serenity and the Liberator West area in the summer of 2020. Development options for Liberator and Serenity will be progressed focusing initially on utilisation of existing infrastructure, i3 Energy says.

Babcock announced a new three-year contract to provide Serica Energy with offshore helicopter crew transport services. Babcock will transport Serica Energy passengers to and from the company’s Bruce complex in the North Sea, 340 kilometres northeast of Aberdeen.

Hurricane Energy said on 2 December that it had struck oil in the Warwick West area, with initial analysis of oil samples indicating light oil in place. At the Lancaster Early Production System (EPS) project, the sixth cargo of crude oil from the Lancaster EPS was lifted on 14 November, taking total oil sales to 2.5 million barrels since First Oil in June 2019.

Average production for the rest of the year is expected to continue to be in line with guidance for Q4 2019 of around 11,000 bopd.

Hague and London Oil PLC (HALO) said that the Andromeda North exploratory well in the UK North Sea found a significant gas column. Andromeda North is located in the

block immediately to the west of the Greater Pegasus Area that has been successfully drilled and tested while currently under review for development concepts.

KCA Deutag announced on 2 December that it had been awarded a five-year multi-million-pound contract extension by CNR International Ltd (CNRI) for three platforms operating in the UK North Sea. Under the contract, KCA Deutag will provide drilling operations and maintenance services on CNRI’s Ninian South, Ninian Central, and Tiffany platforms.

Neptune Energy and its joint venture partners BP and JAPEX said on 3 December that they had awarded new drilling services contracts for the Seagull project in the UK North Sea. All contracts have been awarded under a three-year agreement, with two oneyear options to extend. Under the contracts, MI Drilling Fluids will provide mud, drilling fluids, and well-bore clean-up services; Halliburton Manufacturing & Services Limited will work on a Completions Equipment and Services contract for the provision of High Pressure/High Temperature completions equipment; and Schlumberger Oilfield UK will provide perforating services.

Greater Dunlin Area for Fairfield Energy. The work scope involved multiple campaigns comprising of preparation, removals of subsea infrastructure and final surveys, along with the management of all recovered waste for processing and safe disposal.

TGS-NOPEC Geophysical Company (TGS) announced on 5 December that it had completed the sale of one of its seismic datasets to OGCI Climate Investments’ Net Zero Teesside project, a carbon capture, utilisation and storage (CCUS) initiative planned for the North East of England. The data will be used to verify the suitability for storage of carbon dioxide (CO2) in offshore reservoirs located in the Permian Gas Basin in the Southern North Sea. Net Zero Teesside is a full chain CCUS project backed by OGCI Climate Investments and direct project support from six of the largest oil and gas companies globally: BP, Shell, Eni, Equinor, Occidental Petroleum, and Total.

Initially, Seagull is expected to produce some 50,000 barrels of oil equivalent (boe) per day, of which 80 per cent would be oil, across its 10-year design life. Proved plus probable gross reserves at Seagull are estimated at 50 million boe.

“Seagull has already been recognised as an excellent example of what can be achieved through a collaborative approach between partners and we look forward to continuing to progress with this development at pace,” said Shona Campbell, Neptune Energy’s Seagull Project Manager.

Colin McGill, Net Zero Teesside Project Director

“Our agreement with TGS allows us to carefully analyse the geology of the reservoirs and make the correct decisions that will sustain our CCUS operations for millennia to come,” said Colin McGill, Net Zero Teesside Project Director.

Shona Campbell, Seagull Project Manager, Neptune Energy

Shell has won a court order which prevents protesters from Greenpeace from boarding unmanned Shell oil and gas platforms in the North Sea. “We strongly believe in the right to protest and will keep defending it. Shell can try to shut us up, but we will only get louder,” Greenpeace said, commenting on the court order.

Subsea project delivery and execution provider to the offshore energy industry, Rever Offshore, said on 5 December that it had successfully completed the subsea infrastructure decommissioning project of the

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GREEN ZONE

The EDF Group accelerate growth in French wind and solar powers The EDF Group’s “Plan Solaire” is set to confirm

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their leading stance within the renewables sector in France, pursuing a 30% market share by the end of 2035.

As a leader in electricity production in France and the European Union, the EDF Group has announced an expansion in the French renewables sector after many substantial developments that arrived in 2019.

The EDF Group’s “Plan Solaire” is set to reinforce their leading stance within the renewables sector in France, chasing a 30% market share by the end of 2035. After a short two-year period, the foundations of the programme have been finalised and has delivered tangible results.

Over the two-year project, the group has developed “ground-mounted solar” taking a secure land area to 2,000 hectares. In the same space of time, the volume of projects has heightened including the planning consents.

EDF ENR has also witnessed a strong growth when managing “roof-mounted solar”. The groups market share has risen by 20% making them the leader in the French “self-generation market”. The group has installed over 10,000 residential fittings and a further 100 systems for clients in commercial and industrial industries.

The EDF Group has revealed the start of a project with Enbridge to construct an offshore wind farm in Saint-Nazaire, the first wind farm off the French coast. This will have a capacity of 480 MW and is forecast to be ready in 2022.

Now focusing on onshore wind, EDF Group has had a successful year throughout 2019 in France. They have reached a commissioned capacity of 200 MW and a similar number was reflected when looking into construction. For example, the group has increased the capacity of a Petit-Canal wind farm to 12 MW, while simultaneously reducing the number of turbines from 32 to 14.

Bruno Bensasson, EDF Group’s Senior Executive Vice President, Renewable Energies and Chairman and CEO of EDF Renewables, commented: “We are seeing a strong growth in our activities in France thanks to our teams’ commitment to working at a local level. For EDF Renewables, 2019 brought an acceleration around the world and a double rebalancing in terms of technologies – with more solar and offshore wind farms – and geography – with stronger footprint in Europe and emerging countries. These successes help drive the implementation of EDF’s CAP 2030 strategy which seeks to make our Group a world leader in carbon-neutral electricity, drawing on both nuclear and renewable energy, particularly hydro, wind and solar.”

The EDF Group have had a symbolic impact through the development of renewables in France, reaching 2000 MW gross PV in wind capacity. The project shapes part of EDF’s CAP 2030 strategy, doubling the groups renewable capacity with aims to reach a net 50 GW by 2030. This goal signifies the dedication to meeting targets for renewable energy set by the energy-climate law. This will see developments in hydro, solar, biomass, wind and geothermal from the EDF Group in the years leading to 2030.

Denmark reveals plans for more energy islands Denmark says mega-hubs could power 10 million homes each with 10GW offshore wind islands.

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In what could be the world’s most impressive renewable energy project, Denmark reveals plans for ‘energy islands’ that can support a minimum of 10GW of offshore wind as part of their $44.5 billion plan to increase renewable energy.

Climate and energy minister Dan Jørgensen said: "It is a huge project. We need to build more than five times as much capacity as we have today. We need a sensible and ambitious plan for expansion. Therefore, we are now engaged in preliminary studies."

The Energy Ministry for Denmark claimed, work has started in order to pinpoint sites for the energy hubs. Through doing this, a large amount of offshore wind can be harnessed and used for sectors such as transport and heating, which are harder to decarbonise.

Denmark will investigate prospective sites in the North Sea, Baltic and Kattegat and speak with adjoining nations over the plan. They said the first phase will be to explore “if it is practically possible to establish one or more energy islands in relation to nature, environment and planning”.

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GREEN ZONE

Delays have appeared at Norfolk’s proposed 1800MW offshore wind farm due to cable mitigation and noise.

The Department for Business, Energy and Industrial Energy (BEIS) has delayed approval for the UK offshore wind farm with a request for more information on the project.

Norfolk Vanguard Limited plan to build an offshore wind farm with a potential 90-180 wind turbines, supporting a capacity of 1800 MW. It is to be located 47km off the coast of Norfolk, England, next to proposed sister project, Norfolk Boreas and could power a potential 1.3 million houses.

Delays for Norfolk Offshore Wind Farm

The lack of clarity in areas of mitigation solutions for cables in surrounding areas raised some concern and therefore, introduced the delays in the process. BEIS suggested there had been no arrangement between parties to resolve any concerns around the cables.

Potential noise levels also raised alarm for the future project from BEIS, from the planned use of vibro piling and blue hammer construction techniques. The concern lies around the impact of noise pollution to mammals and wildlife in nearby areas.

€1.5 Billion in Green guarantees raised by Siemens Gamesa Siemens Gamesa plan to use green guarantees to manufacture onshore and offshore wind turbine generators for the global business.

In less than one year, Siemens Gamesa have amassed the equivalent of £.13 billion (€1.5bn) in green guarantees in an effort to ensure its dedication to tackling climate change.

They plan to utilise the green guarantees to manufacture offshore and onshore wind turbine generators for its global business. UN Sustainable Development Goals declare wind turbines generators as “green” and therefore, count towards the green guarantees from Siemens Gamesa.

tion’. Incorporating environmental, social and governance criteria into finance is another step in our commitment to creating a better future for people and the planet, by optimising financial capital in order to accelerate the transformation towards a more competitive and sustainable business model.”

David Mesonero, CFO of Siemens Gamesa stated: “This deal contributes to implementing projects that benefit the environment, address climate change and are socially responsible. It further enhances our company’s firm commitment to the Sustainable Development Goals (SDG) in connection with ‘Affordable and clean energy’ and ‘Climate ac-

Siemens Gamesa have produced enough electricity to fuel around 85 million households across Europe, through the installation of over 99GW of wind capacity all over the World. This action has the same impact of planting over 4 billion trees worldwide or removing 172 million diesel cars from the road, reducing a very large quantity of emissions per year.

Future plans for the energy islands and other interconnected projects are picking up speed around Europe as we move towards lowers emissions by 2030.

Denmark are currently the forerunner in the wind sector, with an aim to reduce 70% of emissions by the year 2030. Orsted, of Denmark, recently announced plans to create a 5GW hub on the island of Bornholm which will facilitate the connection between Denmark, Germany and other European countries in an attempt to support the production of green hydrogen on a much larger scale.

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GREEN ZONE

North Sea oil platforms to be adapted to run on wind power WOOD has won a contract from Norwegian oil giant Equinor to work on a landmark project that will involve adapting North Sea production platforms to run on wind power.

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The contract win comes as oil and gas firms aim to reduce the emissions they produce as they look to reinforce claims they can be part of the solution to the climate change challenge.

Aberdeen-based Wood said it would be supporting Equinor on a flagship project for the North Sea’s energy transition journey.

The engineering giant has been engaged to modify two platforms in Norwegian waters so that they can be connected to the Hywind floating wind park.

It said the Snorre A and Gullfaks A facilities would be the first oil and gas platforms to be powered by a floating offshore wind farm.

The move to wind power is expected to help reduce carbon emissions by more than 200,000 tonnes per year.

Wood sees potential for similar projects in the UK North Sea.

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The progress of the Norwegian scheme will be studied closely in the UK oil and gas industry.

A report published this month highlighted the potential for firms in the North Sea to play a key role in the development of lower-carbon energy sources and technologies that would reduce or help absorb carbon emissions.

The report by industry body Oil & Gas UK and accountancy giant PwC found the North Sea could provide an example of how firms could help tackle climate change that might be followed in other regions.

The value of the contract Wood won from Equinor was not disclosed but is thought to be in the tens of millions of dollars.

Wood said it was committed to applying experience gained from decades of working in the North Sea to reduce the carbon intensity of offshore operations by modifying infrastructure. It has worked on fixed and floating wind energy facilities.

Equinor has been generating power from Hywind since 2017.

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Source: Ole Jørgen Bratland

GREEN ZONE

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2019 REVIEW

2019 REVIEW The oil and gas industry is wrapping up a rather eventful year in which global investments in the energy sector continued to stabilise after three years of declines between 2015 and 2017.

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R E V I E W

The Organisation of the Petroleum Exporting Countries (OPEC) and its non-OPEC partners led

by Russia continued this year with their policy to restrict oil supply, hoping to stabilise the market and prop up oil prices. The U.S. shale industry started to show signs of strain in 2019, with capital budgets reduced for 2020 and the US rig count falling since the middle of the year. US crude oil supply continues to grow but is now growing at a slower pace than it did over the past two years.

US natural gas production continued to boom this year, leading to lower gas prices in the United States. Several new liquefied natural gas (LNG) export facilities started operations in 2019, adding more LNG on the global market at a time when plants in Australia were also ramping up. This increased world supply, coupled with softened demand growth in key LNG importers in Asia, most notably China and Japan, led to weak natural gas and spot LNG prices globally.

Gas supply in Europe was also adequate, with storage fuller than in previous years, which also weighed on European prices.

The year 2019 also saw several large oil and gas discoveries and the startup of highly anticipated oil and gas projects around the world, including on the UK Continental Shelf (UKCS).

Oil Prices

Notable Discoveries

In 2019, Brent oil prices averaged around $63 per barrel through early December, as the international benchmark has traded mostly within the $60 to $65 price range, following a slump to as low as $50 a barrel on Christmas Day in 2018.

Halfway through 2019, the average monthly discovered volumes of oil and gas were up 35 per cent compared to the discovered volumes in the same period of 2018, the mid-year assessment of upstream data by Rystad Energy showed.

Despite the continuous production restraint from OPEC and its Russia-led allies, prices failed to move much higher than $65 because of two key supply and demand issues. In supply, growing production from the United States kept a lid on oil prices, while concerns about flagging global economic growth and, as a consequence, slowdown in oil demand growth, weighed on market sentiment.

Faced with another looming glut with production growth from the US, Brazil, and Norway in 2020, OPEC and its partners decided in early December to add an additional 500,000 barrels per day (bpd) cut to the existing 1.2 million reduction, leading to a total cut of 1.7 million bpd in the first quarter of 2020. OPEC’s leader and largest producer Saudi Arabia pledged to continue to over-comply with its share of the cuts, meaning that total cuts could go as deep as 2.1 million bpd, if all countries in the OPEC+ pact comply with their quotas.

Big Oil and integrated national oil companies (NOCs) were exceptional in dominating conventional exploration, accounting for more than 80 per cent of discovered volumes in H1 2019, according to Rystad.

Natural Gas and LNG Projects This year has likely been the biggest investment year for the LNG industry. Greenfield investments in LNG could reach nearly US$103 billion in 2019, a record for the industry, Rystad Energy estimated in July.

A total of 33 million tpa of liquefaction capacity and US$29 billion of capital expenditure (capex) was sanctioned between January and July 2019, from US projects Golden Pass LNG and Cheniere’s Sabine Pass Train 6, and from Anadarko’s Area 1 in Mozambique.

In early September, the partners in the Arctic LNG 2 venture led by Russia’s gas producer Novatek made the final investment decision for the project, whose total capex to launch at full capacity is estimated at US$21.3 billion equivalent.

LNG production and capacity are only set to grow over the next half-decade, with North America expected to lead production and investment growth through 2025, according to Rystad Energy.

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“Offshore discoveries in Russia, Guyana, Cyprus, South Africa and Malaysia are propelling what is already a very successful year for international E&P companies. With deepwater finds contributing half of the discovered volumes, it can be inferred that high-risk frontier plays in the deepwater are back on the map for explorers,” Rohit Patel, Senior Analyst at Rystad Energy, said, commenting on the mid-year assessment.

One of the biggest discoveries, of more than 100 million barrels of oil equivalent (boe), was made in the UKCS. In January Total announced a new significant discovery on the Glengorm prospect in the Central Graben area in the UK North Sea. The discovery—estimated to hold recoverable resources close to 250 million barrels of oil equivalent—is the largest discovery in the UK North Sea in a decade, since Culzean in 2008, and will likely be an industry hotspot for years, Rystad Energy reckons.

2019 REVIEW

Notable Project Start-Ups This year also saw several large oil and gas project start-ups.

Equinor launched production from the giant Johan Sverdrup oil field offshore Norway in early October. Johan Sverdrup is one of the largest discoveries on the Norwegian Continental Shelf (NCS) ever made and one of the biggest industrial projects in Norway for the next 50 years, according to operator Equinor. The field has expected resources of 2.7 billion barrels of oil equivalent.

Offshore Israel, first production from the Leviathan natural gas field is now expected in December 2019, according to one of the partners in its development, Noble Energy.

In the midstream sector, Russia’s gas giant Gazprom launched in early December the first Russian pipeline gas supplies to the big demand centre China with the start-up of the Power of Siberia natural gas pipeline between Russia and China spanning 3,000 kilometres.

Major UK Start-Ups and Project Sanctions In the UK, 2019 saw the start of several major oil and gas fields, and pledges for additional investments in expansion of existing production and platforms.

Total started up in June production from the Culzean gas condensate field located 230 kilometres off the coast of Aberdeen. With a plateau production of 100,000 barrels of oil equivalent per day (boed), Culzean is set to account for around 5 per cent of the UK’s gas consumption. Gas from the Culzean field is being exported via the CATS pipeline and the UK National Grid, while condensate is stored in a Floating Storage and Offloading (FSO) unit for offloading by shuttle tanker.

Then in August, Equinor produced first oil from the Mariner field which is expected to produce more than 300 million barrels of oil over the next 30 years. Mariner is expected to produce annual average plateau rates of around 55,000 barrels of oil per day and up to 70,000 barrels of oil per day at peak production.

Shell and its partner Ithaca Energy announced in October that they had taken a final investment decision (FID) on the Pierce Depressurisation Project in the UK Central North Sea. Thanks to

the project, Shell will begin exporting gas from the Pierce field.

“It is Shell’s eighth final investment decision in the UK Continental Shelf since the start of 2018. Each is part of a careful and cost-effective strategic expansion of our North Sea capacity, in line with our core upstream focus on profitable investments and competitive growth opportunities,” said Steve Phimister, Vice President Upstream and Director of Shell U.K. Limited.

More development projects will be sanctioned in the UK North Sea through 2022, Rystad Energy said in September.

As many as 38 new UK offshore projects could reach FID over the next three years, for a total of US$22.6 billion in greenfield expenditure.

Meanwhile, oil and gas production in the UK North Sea in 2019 is expected to be slightly higher than 2018 production, industry association OGUK says.

Average yearly oil and gas production on the UKCS rose by 20 per cent between 2014 and 2018, from 1.42 million boepd to 1.7 million boepd, according to OGUK’s Economic Report 2019.

The recent positive trend has continued in 2019 with production in the first six months of the year at 1.74 million boepd. OGUK sees total 2019 production at the higher end of the production forecast in its Business Outlook 2019, at around 1.73–1.75 million boepd. This would represent an increase by 2 to 3 per cent compared to 2018 production levels.

“If operators’ plans play out as intended, the 38 potential project commitments expected over the next three years will provide fertile ground for contractors, and a quick look at successful UK North Sea service companies from the recent past sheds some light on who may capture this growth in the near future,” said Audun Martinsen, head of oilfield services research at Rystad Energy.

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SUPPLY CHAIN

Supply Chain & Procurement in the Oil & Gas Industry

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By Tsvetana Paraskova

The supply chain is an indispensable part of every oil and gas activity and operation. Upstream companies need drilling equipment and drilling services providers to explore and produce oil and gas. Midstream companies need steel makers, pipe makers, and valve makers to deliver pipelines. Firms in the downstream segment need precision control and industrial control system (ICS) suppliers to operate refineries and petrochemical complexes. All sub-sectors need engineers, safety and construction specialists and project management specialists to work seamlessly.

The oil and gas industry needs supply chain contractors and an efficient relationship with third-party providers in order to deliver the desired outcomes, meet budget specifications, and create a safe working environment for employees and operations. From oil and gas extraction to crude oil and gas delivery, from the pipelines to the refinery and to the petrol station, supply chain and procurement are essential to all operations in the oil and gas industry.

International companies in the sector continue to exhibit strict capital discipline after the oil price crash in 2014-2016, aiming to continue cutting costs and optimise operations and procurement.

The supply chain has suffered from the reduced capital expenditure of upstream operators, and has seen profit margins squeezed when international oil and gas majors aimed to reduce costs, limit their spending and achieve greater efficiencies as oil prices slumped from $100 in early 2014 to $50 per barrel in 2017.

As the market started to recover from the 20152016 lows, investment has returned to the key

www.ogvenergy.co.uk

oil and gas basins in the world, including to the UK Continental Shelf (UKCS). The strength of the supply chain is crucial to keeping the competitive position of the UK offshore industry, the OGUK association said in its Economic Report 2019.

The UK oil and gas market returns to grow, yet some firms in the supply chain continue to see challenges to their sustainability, OGUK’s report said.

In 2018, the UK oil and gas industry supported some 259,900 jobs, while the number of jobs is anticipated to have increased to around 269,100 in 2019—this would be the first annual rise in employment in the sector since 2014, OGUK’s estimates show. Most of those jobs are in the supply chain, which contributes £2.4 billion, or 0.13 per cent, to the total UK gross domestic product (GDP). If we include the gross value added (GVA) of supply chain companies, the oil and gas industry’s total contribution would overtake that of electricity generation and transmission, and is nearly 38 per cent higher than other major in-

14

dustries, such as motor vehicle production, for example, OGUK says.

In order to overcome the challenges, the supply chain and operators have to work constructively together to spread the risk and make the most of investments, according to the industry association.

New entrants in the UK Continental Shelf tend to rely more on the support and services of the supply chain and to embrace new contracting models.

Revenues in the supply chain largely stabilised in 2018, OGUK says, noting that some growth could be seen in 2019, to reflect the higher investment and expenditure levels compared to the levels seen at the worst of the downturn.

Going forward, keeping the UKCS competitive to attract more investment and opportunities is as important as ensuring a balance between cost control and sustainable revenues and margins for the supply chain. Operators on the UKCS need to have the ability to access a strong supply chain in the long term, OGUK said in its Economic Report.

1

YEAR AGO

- BRENT OIL PRICE 2018 - $57.36 DP Pumps provided pumps for major Greek LNG project. DP Pumps Drakos Polemis supplies 3 vertical mixed flow pumps for the 3rd and largest LNG tank at Greece’s Revithoussa terminal.

BP extends Sulzer Wood partnership.

Sulzar Wood, a joint venture between Sulzer Pumps UK and Wood plc, provided pump maintenance support to BP’s Glen Lyon, Clair and Clair Ridge Assets.

AFGlobal completes f ield evaluation of its Durastim pump with ProPetro Holding Corp in the Permian Basin.

“New business and contracting models, innovation, partnerships and true collaboration are all vital to achieving a sustainable balance between cost control and a reasonable return on investment for supply chain companies.

Increasing the focus on value-driven outcomes rather than solely on costs will require all companies to work even more constructively, with a more balanced share of risk and reward,” OGUK noted.

The UK oil and gas supply chain also has opportunities to grow with the rising decommissioning activity and investment, and with the opportunities to diversify in the energy transition, the industry body reckons.

The UK is one of the key basins for decommissioning around the world, and the supply chain can play an important role in this sector both on the UKCS and in exporting its competence and technology abroad.

According to OGUK, companies in the UK should try to excel in the domestic decommissioning market and to seize opportunities for the wider North Sea decommissioning activity offshore Denmark, the Netherlands, and Norway. Much of this activity can be handled by UK facilities and using UK capability to its full extent. In the longer term, the UK supply chain should seek opportunities globally, building off their experience for delivering North Sea decommissioning projects, OGUK said.

In recent years, UK oil and gas supply chain companies have diversified their businesses into other energy sectors to survive the downturn, by spreading the risk and limiting their exposure to the oil and gas market. More than half of OGUK members have diversified into other energy sectors, but oil and gas remain their primary source of incomes, OGUK’s Business Outlook 2019 showed.

5

YEARS AGO

- BRENT OIL PRICE 2014 - $62.34 “The drive to achieve a net-zero economy will provide further opportunities, with estimates suggesting that achieving this aim could require up to £1 trillion of investment,” the industry association said.

“The supply chain can continue to be a global leader in oil and gas services, whilst embracing the opportunities presented by the energy transition.

This will ensure that the industry’s supply chain continues to contribute to the UK economy in the decades to come,” OGUK reckons.

The North Sea and its supply chain can play a leading role in the energy transition, PwC and OGUK said in a report in November, ‘Turning the Tide – the Transformation of the North Sea,’ based on interviews with more than 20 senior stakeholders from the industry.

The North Sea, which has emerged from a challenging downturn, can become a global leader for the energy transition through technology for Carbon Capture, Utilisation and Storage (CCUS), the alternative use of infrastructure, and the production of hydrogen, according to the report.

The report also showed that the UK supply chain cannot sustain further tightening in costs and the focus should shift from cost to value creation.

There is also increased willingness among stakeholders to engage more closely with the supply chain, where most new technologies are deployed, PwC and OGUK’s report found.

“The transition to a lower carbon, diverse energy mix is an exciting opportunity for our transforming industry. With extensive skills, capabilities and infrastructure, we are well placed to support the development of low carbon technologies such as CCUS and hydrogen while reducing emissions from production operations,” said Mike Tholen, Upstream Policy Director at OGUK.

15

New technology reduced fracking costs. A system had been designed to cut maintenance costs in the f racking industry. The system gave service providers a competitive edge by allowing substantial cost savings and additional production capacity.

The North-Sea oil industry was ‘close to collapse’. Oil companies and service providers were cutting staff and investment to save money. Chevrons Jack/St. Malo began production in Gulf of Mexico. Production of crude oil and natural gas began for the project in the Deepwater US Gulf of Mexico. Crude oil f rom the facility was transported 140 miles to the Green Canyon 19 Platform.

10

YEARS AGO

- BRENT OIL PRICE 2009 - $74.46 A new recruitment model was set to leave job boards behind. A leading recruitment site for the oil and gas industry announced a new feature to benef it candidates and recruiters. Oil Purif ication Systems wins New England venture summit top innovator award.

Aquatech mobile evaporator system for f rac and water waste treatment.

The MoVap unit was designed for the growing f rac and produced water waste treatment needs of the Marcellus Gas Shale region.

COMPANY NEWS

Pentagon Freight Services Strengthens their Project Division Pentagon Freight Services, a leading logistics provider to the energy industry, has been forced to expand their UK Projects team due to significant recent contract awards.

The Aberdeen project team, led by Daniel Becci, specialises in Air and Sea Chartering along with bespoke solutions for heavy lift and over dimensional cargoes. The appointment of 2 additional experienced personnel, based at the company’s Aberdeen office, will ensure that the necessary competence and resource fully meet the increased customer demand.

The announcement comes just weeks after the company was revealed as a finalist for the BIFA Freight awards – Project Forwarder of the Year category with the final being held in London on the 16th January 2020.

Pentagon Freight Services is one of the largest privately-owned Oil & Gas freight forwarders in the world, operating from 71 strategic owned locations globally.

C O M P A N Y

N E W S

“Pentagon are not considered a typical Freight Forwarder but as an industry veteran supporting the complete logistical needs of the Energy Supply Chain. Whether it’s towing an offshore drilling rig or arranging an Antonov 124 to ensure a Rig Down situation can be resolved quickly, we have the people and expertise to support our client’s needs. Our people are and will always be our greatest asset and these new additions to our project division will allow us to further support the growing demands of our customers as the energy market continues to steadily recover”.

Commented Daniel Becci.

16

COMPANY NEWS

ICR Integrity Quickflange Account Manager, Lindsay Thomas, discusses the role ICR’s multi-skilled team delivers to ensure an efficient shutdown campaign.

Planning, preparation, safety and scheduling – just four of the many critical aspects that need to be focused on during a planned shutdown. With our clients gearing up for one of the biggest pipeline shutdowns in the North Sea, the importance of minimising delays and ensuring a smooth return to normal production is a huge focus. The implications of a shutdown are widespread and most likely will also lead to operators using this time to carry out simultaneous inspection and maintenance of their own assets too.

Planning With huge complexity and expense associated with shutdown projects, and even more so when unexpected situations arise leading to postponed start-up, the planning stage must be a priority. Minimising risk and ensuring safety starts with pre-training of crews, pre-inspection of assets and having a multi-skilled partner with a complete integrity package. Unexpected issues can impact on the project schedule and budgets so it is essential the integrity partner can not only prepare effectively but also adapt and resolve issues quickly.

Integrated Approach An integrated approach can add significant value to a shutdown campaign – from review, design to a managed service. Addressing the monitoring challenges associated with a shutdown in advance can ensure safe, timely and efficient operations. Having multi-skilled engineering teams along with combined reports and data acquisi-

tion reduces the challenges that are associated with campaign work whilst also increasing productivity and safety.

Utilising Technology With a strong track record of performing permanent repair solutions, we have achieved 80% time reduction for operators through our Quickflange weldless flange to pipe connection solutions.

This highlights how technology has an essential role in ensuring flexible and quick integrity solutions during a shutdown process. From drone technology for pre-inspection, weldless Quick-

flange solutions to engineered composite repair technology, the industry needs to ensure it has adopted recognised solutions ahead of a planned shutdown.

With a focus on resourcing and proactive preparation, a shutdown presents the opportunity to safeguard an asset’s reliability as well as utilise the range of technology and expertise the industry has to offer. With a multiskilled team and suite of repair methods that have achieved an approved industry track record, ICR Integrity is onhand to support our clients with the challenges that lie ahead of a planned shutdown.

Rotech Subsea settles back into Middle East market with ground-breaking CFE/J technology Interest in the Middle East for Rotech Subsea’s new and more powerful 2nd Generation RS non-contact CFE/J range of equipment has never been higher. Indeed, on the back of two recent successfully complete work scopes in the region, the subsea excavation pioneer’s unrivalled TRS1LD and TRS2 tools will remain permanently in the region to meet demand.

In Q1, 2019, Rotech Subsea - which designs, builds and operates its suite of CFE/J tools - were contracted by SAIPEM as part of a Power-Fibre Optic Cable and flexible and umbilical post lay trenching project in the Safaniya Field. The state-of-the-art TRS1LD tool, complete with high power jets, was selected for this scope due to advanced technical capabilities and cutting ability in stiff soils.

The spread of equipment was mobilised on the Mubarak Multicat Vessel to complete the post lay trenching of various FPOC, flexible pipelines and umbilicals. The performance of the TRS1LD which is the most powerful shallow water tool on the market - was exactly as expected and Rotech Subsea delivered as promised in soils in excess of 250kPa undrained sheer strength.

Each product was lowered to 1m top of pipe / top of cable below the adjacent seabed level. Post lay trenching operations were completed whilst progressing at a rate averaging 3m/minute. Six Rotech operators enabled 24hrs operation while two additional operators were supplied to operate the jetting system.

In Q3, 2018 Rotech Subsea were again contracted by SAIPEM as part of a pipeline post lay trenching and backfill project in offshore Saudi Arabia on the Manifa

Oil Field. The state-of-the-art TRS2 tool was selected for this workscope due to the unparalleled technical and performance capabilities which increased productivity and reduced total cost on the project.

The spread of equipment was mobilised on a DP2 Multipurpose Support Vessel to complete the post lay trenching and backfill of two x 42” pipelines in around 10m depth of water. Each pipeline had to be lowered to 1m top of pipe below the adjacent seabed level.

The post lay trenching and backfill operation was successfully completed with ease, progressing at a rate averaging 3m/minute.

“These two recent Middle East projects add to a track record of over 500 projects successfully completed worldwide, firmly establishing Rotech's

17

position in the marketplace as the leader in providing non-contact CFE/J technology,” said Rotech Subsea Director of Subsea, Stephen Cochrane. “Indeed, demand in the Middle East for Rotech Subsea’s new and more powerful 2nd Generation RS non-contact CFE/J range of equipment is so high that our unrivalled TRS1LD and TRS2 tools will remain in the region to service a growing client base.”

It has been a stellar rise for Rotech Subsea since the subsea excavation pioneer - with a three-decade track record in oil, gas & renewables - announced their return following the sale of technology that took the sector by storm in the 1990s.

Rotech emerged from the ensuing non-compete period in 2015 with a completely new and more precise Controlled Flow Excavation (CFE) range and within weeks its cutting-edge systems were deployed on commercial projects.

INNOVATION & TECHNOLOGY ROUND UP 2019 INNOVATION & TECHNOLOGY ZONE SPONSORED BY LEYTON

T

his year, we interviewed a variety of companies with innovative products, stepping away from convention. Today, it appears there is a digital solution for almost everything and we have seen the potential benefits first-hand. With huge cost savings, reduction in time and most importantly improved safety for workers, we look back at some of the game-changing technology of 2019.

EFFECTIVE WATER INJECTION

ISSUE 17 OUTLET SEAL FACE

JANUARY

RETURN SPRING

In response to the challenges of effective water injection in fractured reservoirs, independent global completions service company Tendeka launched a new technology to optimise oil production.

FloFuse can increase oil recovery by improving injected water conformance in fractured reservoirs or by ensuring effective placement of matrix stimulation acids. FloFuse autonomously chokes back injection into thief zones or large fractures that dominate the outflow profile and ensures effective injection into the rock matrix or fracture structure. This prevents early water breakthrough into production wells, thereby, increasing total oil recovery and reducing water production. FloFuse devices are easy to run in horizontal wells and high rate environments and have a longer life expectancy with less need for maintenance.

PRIMARY NOZZLE

INLET

FLOFUSE MOUNTED IN SCREEN

ISSUE 18

TESTING SUBSEA ELECTRICAL ASSETS

&

T E C H N O L O G Y

Z O N E

TENDEKA

FEBRUARY

I N N O V A T I O N

C-KORE SYSTEMS

C-Kore Systems secured the Innovation & Technology award at this year’s Subsea UK awards at Subsea Expo. The company was praised for its C-Kore Unit testing system, which locates low IR valves on subsea equipment.

The accurate and innovative technology has enabled considerable cost savings to operators. The TDR is normally used in tandem with the Cable Monitor for fault-finding. Once the Cable Monitor has narrowed the location of a fault to a single component (for example an in-field umbilical) the TDR is used to precisely identify where in the cable the fault resides. This knowledge can be used to inform repair versus replacement strategies. By measuring directly subsea, the problems of deck-based downline testing are eliminated, including impedance mismatches, offset errors, faulty downlines and the difficulty of driving the TDR correctly.

ISSUE 19

UNDERWATER PHOTOGRAMMETRY Viewport3 apply their expertise in underwater photography to capture 3d geometric data for operators or marine contractors.

Using underwater digital cameras mounted on ROV's or divers, the team are capable of retrieving technical-grade point cloud data with proven accuracies of under 1mm. This data can then be measured, compared, reported on and exported to CAD, allowing their clients to make accurate, informed, high-value decisions. Simplicity is key to Viewport3’s success, as the simple capture process enables them to begin scanning as soon as they enter the water. This ability to integrate their photogrammetry process into the existing workflow further minimises project disruption and risk. As a result, the company can offer market-leading turnaround times.

www.ogvenergy.co.uk

MARCH

VIEWPORT 3

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ISSUE 20

COST-EFFECTIVE RISER INSTALLATION

APRIL

ACE WINCHES

ACE Winches designed and developed 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.

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.

ISSUE 21

REVOLUTIONISING THE SAFETY OF PEOPLE AND ASSETS RESTRATA

MAY

Restrata, a technology and services company focused on security, safety and emergency response solutions has unveiled the Restrata platform. The Restrata platform is an enterprise software platform providing real-time monitoring and control of people, environments, assets and reputation, ensuring safer operational management and immediate response times across the energy and industrial sector.

It is vital to know where your people are, people are the main priority and primary asset. The Platform can tell remotely or on-site where everybody is, so as to have a good idea of who’s mustered, who’s accounted for and equally or more importantly, who’s missing...

ISSUE 22

EASY ON-SITE MAINTENANCE

JUNE

CPI

ISSUE 23

DATA-DRIVEN AUTOMATED EARTH MODEL BUILDING (FWI) FROM RAW EXPLORATION SEISMIC DATA Technology innovators S-Cube develop a new sensor predictive analytics solution for seismic field data. The XWI™ provides the ability to view the interior of the earth with superior definition, focus, accuracy, and certainty. Using advanced search and adaptive machine learning optimisation technology, it transforms seismic data and provides the best possible 3D image of the interior of the earth to uncover new resources and define drilling paths with greater unprecedented precision. This means we are able to significantly reduce risk and uncertainty in identifying untapped deep-sea deposits and help exploration and production operators achieve greater efficiencies.

JULY

S-CUBE

19

Many remote operations often don’t have the capacity to perform highly skilled maintenance and refurbishing. They have limited staff, space and time to ship equipment to get serviced efficiently and safely.

However, CPI has a solution with the Hi-Flo™ RS valve, a one-of-akind product that provides several benefits to the off-shore oil and gas industry. The Hi-Flo RS valve stands apart from other products in remote and off-shore applications because of its replaceable PEEK seat plate. According to CPI's Pascal Mahieux, “Instead of the valve seat component itself wearing, the seat plate wears over time. When valve efficiency begins to drop the seat plate is popped out and a new seat plate is snapped into place.”

ISSUE 24

RENEWABLE WAVE ENERGY

AUGUST

PB3 POWERBUOY

ISSUE 25

SEPTEMBER

GAMING INSPIRED DRILLING SIMULATION

Z O N E

DRILLING SYSTEMS

Drilling Systems released a new version of its mobile OTR system, which has all the capabilities of a full-size simulator but is compact enough to be transported to remote locations to train drilling crews in all elements of operations, from well control to drilling and crane lifting. The new software incorporates even more realistic graphics and an enhanced instructor-free learning management system (LMS), making it easier and more engaging to follow learning programmes. It was developed in conjunction with Neutron VR, which like Drilling Systems is part of the 3T Energy Group. Neutron’s heritage is rooted firmly in the gaming industry as both of its founders previously working for games developer, Eutechnyx, with extensive experience in creating striking visuals and immersive experiences.

ISSUE 26

PREVENT BLOWOUTS AND SAVE LIVES

&

T E C H N O L O G Y

The PB3 Powerbuoy® is a wave energy device that acts as an uninterruptable power supply which constantly recharges itself by harvesting energy from waves, operating in ocean depths above 20 metres. It enables real-time data transfer and communication with remote facilities. The ability to store energy also allows the PB3 to operate during periods of calm seas. It is autonomous, that means that it isn’t about getting power back to the grid and competing with wind farms, but rather providing green renewable power and communications to sensors or pieces of equipment in the ocean. The second phase of this project is to connect the buoy via an umbilical into the wellhead so we can monitor wells in real-time and prove their condition. This allows the operator to prove to the regulator that there are no issues and that it’s environmentally safe.

OCTOBER

I N N O V A T I O N

SAFE INFLUX

ULTRA MOBILE INSPECTION ROBOTS SPECTIS ROBOTICS

Spectis Robotics realised a truly ultra-mobile inspection platform know as BIKE platform. Where existing inspection crawlers are reaching their limits in terms of accessibility and maneuverability the BIKE platform is just beginning to perform. One of the main advantages of mobile robots is their ability to reach locations inaccessible by human because of size constraints, temperature, immersion in liquids or safety reasons. Certified and experienced engineers today enter confined spaces and “look” at the predefined locations to take pictures for reporting. This is the state of the art procedure. Beside very expensive organisational issues such as watchmen and ventilation, this procedure is very dangerous for the experts. New robotic and sensor technology can provide solutions to reduce costs and risk of such procedures.

NOVEMBER

ISSUE 27

20

It is estimated that up to 67% of all blowouts are caused by human error. The Automated Well Control technology developed by Safe Influx makes the well control process safer by using automation to eliminate human error, and thus reduce personnel exposure that is associated with the conventional well control methodology. The system enables continuous monitoring of the well for potential well control events and, reacts automatically, providing a safe and effective shut-in and assurance for well control management. The system fully automates influx detection and shut-in sequences, therefore, when a kick is detected, the technology takes control of the drilling rig equipment, and thus the drill string is spaced out, top drive and mud pumps are stopped and the BOP is closed. All of this occurs without the intervention of the driller, although he can intervene at any point.

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11 - 13 FEBRUARY 2020 | EGYPT INTERNATIONAL EXHIBITION CENTER

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People

Eilidh Keachie,

Process Engineer, ProSep I would encourage any female thinking of stepping into the industry to grasp the opportunities that come your way and seek to find a mentor who will help guide you as you progress.

in energy

Thank you to everyone who featured in this year's People in industry. OGV have enjoyed getting to know the driven, successful and inspirational people making their mark on the Energy sector.

Kerrie Murray,

Chief Financial Officer, Pryme Group

Rakhi Mahbuba,

Supply Chain Manager, Oil & Gas Authority I think the industry has progressed quite a lot and has become truly inclusive. I would like to see more female leaders in the engineering industry in lead or principal or managerial roles, which would enthuse and inspire more women to be involved in this industry.

Sylvia Buchan,

Supply Chain Manager, Oil & Gas Authority 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.

P E O P L E

I N

E N E R G Y

Never turn down an opportunity and listen to others offering advice.

It doesn't mean that you have to follow the advice given, but it gives you a chance to consider alternative options.

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26

Veronica Moberg Horne,

Fiona Carson,

CTO at LUX Assure I didn't specifically set out to work in oil and gas but find that it's a challenging and exciting industry to be a part of.

Dawn Robertson,

Beatriz Rodriguez,

Vice President Human Resources, Oilfield Equipment, BHGE I never thought that I would spend most of my years in this industry, however, once I realised how much it had evolved and how much potential it has to flourish, I immediately knew it was the place for me.

www.ogvenergy.co.uk

24

Offshore Service Line Director, North Sea & North America, Bureau Veritas I would love to see the industry be more open to change and to become early adapters of new technologies and processes.

Design Engineer, Bachelor's Degree General Mechanical Engineering

I believe that to succeed you need to be open to challenges and remain curious... Aim higher, stay humble and respectful to the people around you, both above and below.

DECEMBER RIG STATISTICS Pia Turcinov,

Board Member & Director of Natural Energy Resources Australia

Erika Santana,

Principal Engineer, ROSEN

Never turn down an opportunity and listen to others offering advice.

It doesn't mean that you have to follow the advice given, but it gives you a chance to consider alternative options.

I believe that, whatever your area of interest, what really counts is your professionalism, competence and commitment... not your gender.

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Madeleine Harkestad Dømbe, Lead Project Engineer, Bachelor's Degree Subsea Technology Engineer Sharing your knowledge with others can be part of your own learning process. Being successful relies on continuing to learn and being a good example for the people around you.

Christina Brun,

Chief Pilot, Bristows Helicopters I'm definitely motivated by working with others and nurturing the new talent that joins Bristows - it's fantastic to watch the personal progression in our young pilots as they move up the ranks.

Source: Infield Rigs 11/12/2019 The data above focuses on the marketed rig fleet and excludes assets that are under construction, retired, destroyed, deemed non-competitive or cold stacked.

25

OGV NEWS

OGV Energy join forces with Robert Gordon University to investigate Energy sector challenges OGV Energy were delighted when Aberdeen's Robert Gordon University accepted our proposal to work with them earlier this year and we were thrilled when the School of Creative and Cultural Business asked us if we would consider being their sole client for the 3rd year Media and PR students, which effectively meant that we would be working with 60 of their students!

Given the perceived dislocation between Generation Z and the Energy sector, we thought it would be really interesting to ask the students to investigate some of the challenges that the Energy sector is faced with in order to get a real insight into the issue.

With this in mind, we set the students 9 questions to investigate and for each question, the student teams were asked to create a 10-minute documentary and write a 1000-word article.

The topics that were investigated were as follows: Does the Energy sector create an attractive environment for women to progress a career?

Where does the city of Aberdeen sit as a “Technology Hub” in comparison with the rest of the UK? Do young people view the Oil and Gas industry as a viable long-term career option?

If we “turned the taps off” the Oil and Gas industry tomorrow, what would be the impact to the UK economy?

Should Aberdeen be considered as a Centre of Excellence for the Decommissioning industry?

What part will the Oil and Gas industry play in the future “Energy Mix” to support the UK’s demand in 2035?

Is there a business case for using Hydrogen as an alternative Energy source?

Should the Energy sector be concerned by the start of the cyber security war?

In the “Skills Landscape Report” commissioned by OPTIO, it stated that 4500 new jobs would be required in the Oil and Gas industry by 2025, investigate what these jobs will look like and what measures the industry is taking to address this issue?

www.ogvenergy.co.uk

26

The questions were created following discussions with some industry bodies and some of our clients and covered a broad selection of the challenges that the industry is currently facing today.

With some guidance and structure from OGV Energy, the students were encouraged to attend industry events, reach out to industry professionals for interview and conduct in-depth research to investigate the arguments for and against and establish a response to each of the set questions.

Dan Hyland - Operations Director at OGV Energy noted that: “After our initial kick off meeting with the students it was very apparent that few of them had much knowledge of the Energy sector and few were looking at it seriously as a potential career path”.

The OGV team helped the students schedule meetings with industry professionals and offered support throughout the process but each group maintained full direction and control as to how they went about addressing each challenge.

After commencing the project on 24th September, the students were separated into groups and their project deadline was given as 5th December, when each group would present their documentary, their written article and their conclusions to their lecturers and to a small panel of industry experts.

Each group put in an incredible amount of effort and in the short timeline they were given of circa 10 weeks, they managed to learn an incredible amount about their subject matter as well as the implications the issue may have on the wider Energy sector.

Dr Madeleine Marcella-Hood – Media lecturer said: “This project has been an excellent opportunity for our students to gain real world expe-

rience. Over the past ten weeks the students have learned a lot about current issues facing the Energy sector and also strengthened their communication, project management and research skills. At RGU we take real pride in our close links with industry and in producing graduates with relevant knowledge and experience and client projects like this play a very important role in our delivery. We’d like to thank OGV Energy and the industry panel for creating this exciting project and helping mentor our students through the process!

The panel was made up of a combination of media experts and senior figures from industry which meant the students were able to be provided with technical feedback on the production of the documentary as well as feedback on the strength and voracity of their message and conclusions, which worked very well.

Jenny MacDonald – Sector Development and Skills Planning Manager for Skills Development Scotland enthused: “The students should be very proud of their achievements, all of the groups provided high quality work and engaged in a lively panel discussion. The dedication and collaborative effort of the Students, RGU and OGV Energy to deliver the 9 documentaries really showed. As the sector looks to engage “Gen Z” talent this was a unique opportunity to see the sector through their eyes. There was strong acknowledgement by students that the O&G sector has a critical role to play in delivering the Net Carbon ambitions and this could offer strong employment opportunities for their generation out-with the more traditional pathways” After the presentations, each team of students fielded questions from the panel on their conclusions and it was clear to see that each team now had clearly structured opinions on each subject matter and were engaged and passionate about how the issues may be dealt with, which was very heartening to see.

27

In particular, it was noted that many of the students who had not thought about working in the energy sector previously were now putting it seriously on their radar.

One student admitted: “I have seen that there are so many opportunities for people with a creative background than I originally thought and this project has introduced me to roles that I would be very interested in, so I will definitely be considering a career in the Energy sector from now on”.

Two other recurring themes that were noted in the feedback session, were that the Oil and Gas industries’ willingness to diversify into the renewable sector seemed to make it a lot more attractive, as did the sectors’ investment in new digital technologies, as many of the students were unaware of what new employment opportunities this would bring and were incentivised to do so if it also brought environmental and lifestyle benefits.

Kenny Dooley – Managing Director of OGV Energy said: “It was very clear from the feedback that we received that getting the Media and PR students to work on these projects and interact with the Energy sector directly themselves has in many cases completely changed the perspective of the students and opened their eyes to the diversity of opportunities available for everyone, which is great news!”.

Overall, this was a hugely enjoyable project to be part of for OGV Energy and we were bowled over with the quality of the results, but it was clear to us that the Energy sector needs to work harder to engage our young people and educate them as to the opportunities that are available in the sector.

It was also clear that if we are able to engage our young people, based on the evidence of this project with RGU, then we will all be in very safe hands!

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WORLD PROJECTS MAP

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WORLD

2

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PROJECTS MAP

W O R L D

Source: Offshore Technology

3 2

Oil and gas production and development firm EnQuest has secured Block PM409 production sharing contract (PSC) offshore Peninsular Malaysia from Petronas.

EnQuest’s wholly owned subsidiary EnQuest Petroleum Production Malaysia (EnQuest) has secured the PSC in partnership with Petronas Carigali (PCSB), as part of the 2019 Malaysia Bidding Round. The companies have signed the PSC and joint operating agreement (JOA) for the block. EnQuest will operate the block with 85% participating interest, while PCSB owns the remaining 15%.

EnQuest chief executive Amjad Bseisu said: “We are delighted to have been awarded the Block PM409 PSC and to expand our presence in Malaysia.

“The block contains several undeveloped discoveries providing future opportunities for EnQuest to demonstrate its proven capabilities in lowcost drilling and near-field development.”

Situated in water depths of 70m to 100m, Block PM409 measures approximately 1,700km² and is located in a proven hydrocarbon area. It contains several undeveloped discoveries and is contiguous to the Petronas’ existing PM8/Seligi PSC. The offshore block also provides low-cost tieback opportunities to Petronas’ existing Seligi main production hub. Within the first four-year exploration term of the contract, the partners plan to conduct drilling of one well.

Petronas Malaysia Petroleum Management senior vice-president Mohamed Firouz Asnan said that the agreement would contribute towards the upstream industry sustainability in Malaysia.

Asnan further added: “The effort to sustain Malaysia’s petroleum as a vibrant industry can only be achieved through effective collaborations with partners with unique value propositions made possible through the innovative PSC models offered by Petronas.”

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CANADA - CNRL 2020 budget rises by $250M on oil curtailment ease; putting more rigs to work Canadian Natural Resources Ltd. says its 2020 capital budget will be $250 million higher than last year as it adds about 60 drilling locations across Alberta and puts three additional rigs to work.

The company says the increased spending will create the equivalent of about 1,000 full-time jobs.

Canadian Natural says it made the decision after the Alberta government eliminated curtailments for some conventional drilling in the province, and because of reduced corporate income tax rates.

In November, Energy Minister Sonya Savage said the move to increase drilling activity is aimed at drawing investment back to the province and supporting struggling communities.

Production limits were enacted by the previous NDP government to better match supply levels with pipeline capacity and alleviate wider-than-usual local price discounts for Alberta oil blamed on high inventory levels.

CNRL also says that it would look to put six more drill rigs to work if the government expanded the elimination of curtailment to include newly drilled conventional heavy oil wells.

The company’s overall 2020 budget is targeted to be $4.05 billion, including $1.55 billion for conventional and unconventional assets and $2.5 billion for what it calls long life low decline assets.

The company says it expects to produce the equivalent of about 1.172 million barrels of oil a day.

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SOUTH AFRICA - Semco Maritime to upgrade Odfjell rig ahead of Total gig Offshore drilling contractor Odfjell Drilling and Semco Maritime have signed a contract for preparation and modification of Deepsea Stavanger rig prior to its start of a nine-month drilling campaign for Total in the harsh waters outside South Africa.

Back in July 2019, Total signed a firm contract with Odfjell Drilling to use the 6th generation semi-submersible Deepsea Stavanger for drilling offshore South Africa. The drilling program is expected to last between 180-280 days and mobilisation to South Africa is expected to start in the first quarter of 2020.

In the first quarter of 2020, the semi-submersible rig will complete a high docking (with thrusters on) in Semco Maritime’s rig yard at Hanøytangen, Bergen, Semco Maritime informed on Wednesday.

The method furthermore enables for other measures to optimise the hydrodynamics of the hull as the transit and planned drilling operation would benefit from this modification. These measures will reduce the carbon footprint of the rig when in operation, Semco said.

Deepsea Stavanger is custom-built for operations in harsh environment areas. The heavy double-derrick unit was built in 2010 and designed for operations at water depths of up to 3,000 meters. The scope of the project includes upgrading the rig’s hull and mooring system as well as the installation of purpose-built equipment for operations in the tough environment off the South African coast.

Semco Maritime expects to employ 100-200 people on the project at Hanøytangen where the facilities include dry-dock of 125×125 meters, accommodation with single beds for 365 workers, several quays with the depth ranging from 17-90 meters at the quayside and people in-house and support from suppliers with a track record on rig upgrade projects.

Source: Offshore Energy Today

MALAYSIA- EnQuest secures Block PM409 PSC offshore Malaysia from Petronas

3

Source: Global News

P R O J E C T S

M A P

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WORLD PROJECTS MAP

DECEMBER 2019 6

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The OPEC group of oil producing countries and their allies — including Russia — agreed to a production cut of 500,000 barrels per day in addition to their current agreement.

Ministers gathered at OPEC headquarters in Vienna “decided for an additional adjustment of 500 (thousand barrels per day)”, effective as of 1 January 2020, according to a statement issued after the meeting.

This would bring production 1.7 million barrels per day below October 2018 levels.

However, the group said that “in addition, several participating countries, mainly Saudi Arabia, will continue their additional voluntary contributions,” meaning the overall production cut would be 2.1 million barrels per day.

The statement said OPEC and its partners in the so-called OPEC+ grouping would convene for a special meeting on 6 March.

OPEC members had been aiming for a cut in order to stem pressure on prices from abundant reserves and weak global economic growth.

Oil prices surged following the announcement, with US benchmark WTI and its European counterpart Brent both nearly two per cent higher shortly after 1500 GMT.

NORWAY - His Majesty the King will open Johan Sverdrup

With Mexico’s government insisting that energy companies increase oil and gas output before it auctions off more of the country’s vast reserves or offers more partnerships with state-run Pemex, firms ranging from foreign majors to local players are scrambling to buy and sell blocks they already own.

On 7 January next year, His Majesty the King will perform the official opening of the Johan Sverdrup field centre. Norway’s Prime Minister Erna Solberg and the Minister of Petroleum and Energy KjellBørge Freiberg will also be present.

Companies selling stakes include large foreign producers that were awarded blocks in previous rounds such as China’s CNOOC (0883.HK) and Germany’s Wintershall Dea. Smaller firms including Hokchi Energy and Grupo Diavaz are also trying to share a portion of their assets.

The official opening will take place at the field centre in the North Sea. Equinor and its partners Lundin Norway, Petoro, Aker BP and Total will invite guests and field centre personnel to attend the opening.

The event will start by a lunch on board, followed by an official opening ceremony and a guided tour of the field centre.

Production on Johan Sverdrup started on 5 October this year.

7

Former President Enrique Pena Nieto awarded over 100 contracts to energy firms in 2015-2018 to explore and produce oil and gas in Mexico. His reforms also opened the door for Pemex to form joint ventures.

But Lopez Obrador’s administration has suspended auctions planned for 2019 and halted farm-out opportunities until the existing projects add barrels to Mexico’s dwindling output.

Now, negotiations of stakes have brought opportunities for all types of investors, ranging from promising deepwater areas at Mexico’s Gulf to small onshore fields.

CNOOC, which faces heavy capital investment in Guyana, plans to sell stakes in two offshore blocks at Mexico’s Perdido basin. The negotiations are expected to be done in January, the company said, without revealing names of the interested buyers.

CNOOC in 2018 said it could sell or swap some of its unit Nexen Petroleum’s U.S. Gulf assets as part of a portfolio rebalancing. But planned stake sales in Mexico are “ordinary trading” of projects for oil exploration unrelated to other regions, the firm added in an email to Reuters.

Wintershall Dea, the oil and gas unit of chemicals giant BASF, is also reshuffling its Mexican portfolio after buying independent firm Sierra Oil and Gas in late 2018 by offering a stake in an offshore block it shares with Malaysia’s Petronas, according to three sources. Wintershall declined to comment.

29

Source: Reuters

AUSTRIA - OPEC agrees to 500,000 barrel per day production cut: statement

MEXICO - Oil companies swap stakes in Mexico as government holds off on auctions

The negotiations are creating a dynamic secondary market for oil acreage, which could be the only investment opportunity left for firms until leftist President Andres Manuel Lopez Obrador unblocks his predecessor’s flagship energy reform that has seen no new licensing rounds since 2018.

Source: financialexpress.com

4

Source: Equinor

Source: Reuters

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USA - Halliburton lays off 70 employees at Bakersfield plant in California Halliburton Co. is laying off employees at its Bakersfield plant in California in its latest round of job cuts this year, as the U.S. oilfield services firm struggles with falling profits amid slowing oil and gas activity. The layoffs are expected to impact about 70 employees at the plant, the company said in a filing with California authorities.

The company reported a drop in third-quarter profit earlier in October and vowed more cost cuts to help realise $300 million in annualised cost savings.

It recently closed a plant in El Reno, Oklahoma that impacted about 800 employees. Earlier in October, the company cut 650 jobs across Colorado, Wyoming, New Mexico and North Dakota.

Halliburton - the largest provider of hydraulic fracturing services in the United States - and other oilfield services firms have been struggling as producers cut spending due to weak oil prices.

In 2019, more than 50 frac spreads - or a set number of equipment that a service company uses for hydraulic fracturing - have left the Permian Basin.

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C O N T R A C T

A W A R D S

CONTRACT AWARDS

CONTRACTS Archer receives LOI for multi-year operation of modular rig Archer Topaz Archer has entered into a Letter of Intent (LOI) with a North Sea operator for the provision of drilling services using the modular drilling rig Archer Topaz.

The LOI is for a firm contract period of 2 years and 3 months, with options for an additional 7 months of work following the initial contract period. A final contract award is subject to a successful front-end engineering design study for deploying the Topaz on the client platform, as well as final client board approval anticipated to be completed by end of February 2020. Expected start-up date for operations is mid-2021.

In combination with the already announced contract for Topaz on Heimdal in 2020, a successful award of this contract will secure the rig working until 2023/2024.

www.ogvenergy.co.uk

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Register your CV at www.oilandgasvisionjobs.com

Source: Lars Petter

CONTRACT AWARDS

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CONTRACT AWARDS

Petrofac and Maersk Drilling sign well management contract agement support for shallow water and deepwater wells throughout the duration of the programme. Maersk has also appointed Halliburton to deliver integrated well services.

Petrofac’s Engineering and Production Services division (“EPS”) has signed a well management contract under Maersk Drilling’s master alliance agreement with Seapulse Ltd, a global exploration company.

Nick Shorten, Managing Director for Petrofac Engineering and Production Services, Western Hemisphere, commented: “Building our well engineering business is a key element of our stated strategy to position EPS for growth in new markets. The aims of the Maersk Drilling and Seapulse alliance closely align with our own operating principles and we are delighted to be part of this exciting global supply chain collaboration. We very much look forward to working with all parties to deliver effective and technically robust campaigns.”

Scott Aitken, CEO and co-founder of Seapulse, added: “We are very pleased to see the well delivery model that we have entered into with Maersk Drilling continue to mature with worldclass partners. The Seapulse business model leverage’s Maersk Drilling’s partnerships’ technological and operational expertise to drill and test a statistically relevant exploration portfolio of a scale normally only associated with major oil companies.”

DeepOcean awarded IMR contract by Equinor Norwegian subsea services provider DeepOcean has been awarded a contract by Equinor for IMR services.

C O N T R A C T

A W A R D S

Under its alliance with Seapulse, Maersk Drilling is responsible for providing fully integrated drilling services, including provision of drilling rigs and all related services for a global offshore oil and gas exploration programme. Petrofac has been appointed by Maersk to deliver well management services, including project and supply chain man-

Two wells in the UK North Sea have previously been announced as part of the work scope which is expected to start drilling in the second half of 2020. A tailor-made process covering all phases in the end-to-end delivery of a well has been developed with the aim to maximise efficiency and remove waste through a novel approach to collaboration in the industry.

Morten Kelstrup, COO of Maersk Drilling, said: “We’re thrilled to join forces with Petrofac and Halliburton for this programme which breaks new ground in the industry by using a fully integrated service delivery model aimed at eliminating inefficiencies by aligning incentives and removing complexity across the entire value chain. Petrofac and Halliburton bring strong operational expertise and decades of experience in delivering and integrating oilfield services, which will further contribute to the ability to mitigate the operator cost risk associated with exploration drilling whilst we foster new ways of collaborating across the supply chain.”

The contract is scheduled to commence in the first quarter of 2020, and has a duration of up to nine months work utilising multi-purpose construction vessel Normand Ocean.

Work comprises subsea ROV operations covering inspection, maintenance and repair activities on Equinor’s assets on the Norwegian Continental Shelf.

Rolf Ivar Sørdal, commercial director for sub-

sea services at DeepOcean, commented: “During the past number of years, DeepOcean has performed a wide range of complex and demanding subsea operations for Equinor, with strict safety, quality and flexibility requirements. Following our successful execution of the first year under the new IRM frame agreement in 2019, we are pleased to learn that Equinor yet again selects DeepOcean as their preferred partner. We look forward to further develop our cooperation with Equinor and hope the 2020 season will provide an opportunity to test new technology being developed in our company.”

Aker Solutions wins BP Cypre FEED study Aker Solutions has secured a contract to support the development of BP’s Cypre project, offshore Trinidad and Tobago.

The contract will see Aker Solutions deliver frontend engineering and design for the first platform in a potential series of future assets within BP’s Trinidad and Tobago portfolio. The award comes following the successful delivery of early phase studies by Aker Solutions’ team in London. The study will be completed in the summer of 2020.

The FEED could lead to a full EPC contract combining green- and brownfield scopes, which would be executed from Aker Solutions’ London, Aberdeen and Mumbai offices.

"We will utilise our front-end engineering capacity to maximise the output and minimise the footprint of the project."

"We are excited to be expanding the collaboration with BP to develop the oil and gas resources in Trinidad and Tobago, which is a new region for us," said Luis Araujo, CEO of Aker Solutions.

"We believe the Cypre project will set a new standard in ‘minimum facilities’ platform concepts, combining technology and improved processes to achieve fully unmanned operations," he added.

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32

Unmanned facilities offer benefits to operators by reducing travel and CO2 emissions, as well as improving safety by removing permanent personnel offshore.

The project is operated by BP Trinidad and Tobago, which is a partnership between BP and Repsol SA.

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CONTRACT AWARDS

Aker to provide subsea production system for Norwegian Ærfugl project phase 2 Aker BP has awarded a contract to Aker Solutions to deliver the subsea production system for second phase the Ærfugl gas field development, located approximately 210km west of Sandnessjøen in the Norwegian Sea The Ærfugl project comprises two development phases, which will both be tied into the existing floating production storage and offloading (FPSO) vessel on the nearby Skarv field.

Under the contract, which is valued about NOK700m ($76.4m), Aker Solutions will deliver wellheads, vertical subsea trees, satellite structures, control systems, a tie-in module and about 30km of umbilicals.

Aker Solutions will also be responsible for the delivery of the Vectus next-generation subsea control system designed to offer improved data and power capabilities, as well as standard, lightweight vertical subsea trees.

Aker Solutions greenfield projects executive vice-president Egil Bøyum said: “Our deliveries to Ærfugl highlight the power of Intelligent Subsea, as we utilise our integrated field design capabilities to accelerate the field development and maximise performance.”

Aker Solutions plans to commence work immediately, with subsea structures scheduled for delivery in 2020. The work will involve facilities in Norway, the UK, India, Malaysia and Brazil.

Ærfugl project will unlock nearly 300 million barrels of oil equivalent The Ærfugl project, which will see a total investment of around NOK8bn ($880m), aims to unlock nearly 300 million barrels of oil equivalent.

Additionally, Aker BP has awarded Engineering Procurement Construction Installation (EPCI) contract to Subsea 7 for the Ærfugl Phase 2 project.

Subsea 7 will be responsible for tie-back involving the application of Electrically Heat Traced Flowline (EHTF) technology for a distance of 13.5km from the subsea location to the existing Skarv infrastructure.

The company plans to commence project management and engineering at its offices in Stavanger, Norway while fabrication of the EHTF system is planned to be carried out at Subsea 7’s spoolbase at Vigra, Norway.

Offshore operations are scheduled to be carried out during 2020 and 2021.

Subsea 7 Norway vice president Monica Bjørkmann said: “Electrically Heat Traced Flowlines have been developed by Subsea 7, in collaboration with InterPipe, to deliver leading insulation performance and enable cost-effective long-distance tie-backs.”

Subsea 7 secures EPCI contract from Aker BP Subsea 7 has been awarded of a major contract

by Aker BP for the Aerfugl Phase 2 gas field development in the Norwegian Sea. The EPCI contract is a long-distance tie-back involving the application of Subsea 7’s electrically heat traced flowline (EHTF) technology for a distance of 13.5km from the subsea location to the existing Skarv infrastructure.

The value of the contract is between $50m and $150m.

Project management and engineering will commence immediately and fabrication of the EHTF system will take place at Subsea 7’s spoolbase

at Vigra, Norway with offshore operations taking place during 2020 and 2021.

“This award acknowledges Subsea 7 as a key partner in the delivery of pioneering technology, underlining our proven track record of safe and successful project execution in some of the harshest offshore environments. Electrically Heat Traced Flowlines have been developed by Subsea 7, in collaboration with InterPipe, to deliver leading insulation performance and enable cost-effective long-distance tie-backs. We look forward to continuing our alliance with Aker BP for the development of Aerfugl and future projects,” said Monica Bjørkmann, vice president of Subsea 7 Norway.

Transocean Ltd. Announces Contract Award for Development Driller III Transocean Ltd. announced that the semisubmersible Development Driller III has been awarded a one year contract off the coast of Trinidad and Tobago.

The contract is expected to commence in the second quarter 2020 and will contribute approximately $91 million dollars of contract backlog, excluding mobilisation reimbursement.

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www.ducatuspartners.com ON THE MOVE

Sponsored by

Sean Buchan

Managing Partner - EMEA at Ducatus Partners

Looking back at the past decade as the close of 2019 nears, there is no denying the oil and gas industry has undergone an exceptionally transformative period, even by the standards of a sector which is no stranger to change. The landscape has been altered beyond recognition; oil price reached triple digits highs and historical lows, geopolitics underwent an extraordinary shakeup, advances in technology accelerated at a previously unimaginable pace and societal pressures to move towards clean energy sources gained enormous momentum.

Technological innovation has made arguably the most profound impact, with horizontal drilling and hydraulic fracturing facilitating access to a significant amount of reserves which were previously

unviable to develop. Due to these leaps in engineering, breakeven production costs have declined, the oil cost curve has flattened and the global market transformed thanks in no small part to the shale revolution, with the US market growing from almost a standing start in 2010 to producing more than 7mmb/d and climbing.

The downturn has also had a defining effect on the shape of the industry, jolting businesses into placing productivity at the forefront of their operations.

Reactive dramatic downsizing has led to a more conservative approach to business being adopted for the long term and increasing efficiencies without sacrificing excellence has been at the forefront of operations, ensuring the sector is now better positioned to react to market changes and price fluctuations more fluidly.

Consolidation has also been a key driver, with a peak in horizontal and vertical mergers seen by companies keen to realise synergies and offset risk. For operators, deal making has contributed to more new oil inventory coming from mergers as opposed to exploration and in the services sector, a cast of new actors have emerged from aggressive acquisition activity. Further amalgamation is expected to be rife to cater to the single vendor model upstream companies have come to prefer, a far cry from the fragmented, high margin market seen earlier in the decade.

O N

T H E

M O V E

EnerMech Announces New Chief Executive Officer

Christian Brown

EnerMech has announced the appointment of industry heavyweight Christian Brown as Chief Executive Officer, effective January 2020. EnerMech founder Doug Duguid returned to the Chief Executive Officer role in September 2019 on an interim basis after his initial replacement, John Guy, stood down from the role for personal reasons. Christian was previously Chief Executive Officer of

Carolina Dybeck Happe

GE brings in Maersk Chief Financial Officer to Tackle turnaround GE has announced the appointment of Carolina Dybeck Happe as its new Chief Financial Officer as the company moved to tackle a high profile turnaround effort. Carolina, who resigned Finance Chief at Maersk, will replace Jamie Miller in early 2020. Jamie announced plans to steps down in July 2019 and will remain with the company as Carolina transitions into the role. She will be responsible for leading GE’s global finance organisation covering accounting, tax planning and internal auditing, acting as a strategic partner to their Chief Executive Officer Lawrence Culp.

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Quinn Fanning

Expro Appoints New Chief Financial Officer Expro has announced the appointment of Quinn Fanning as Chief Financial Officer. He will succeed Michael Benthan, who is moving to a new role as Vice President of Finance and Principal Accounting Officer. Quinn joins from Expro having played a critical role in helping Tidewater emerge from Chapter 11 bankruptcy in 2017, after a prepackaged restructuring deal wiped out around $1.6 billion in debt. He also led the subsequent acquisition of GulfMark Offshore. He brings more than 20 years of experience to the role and has held senior leadership positions in industry with Underwater Integrity Solutions and Floatel International, as well in investment banking.

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Digitalisation has been met with increasing levels of investment over the past 10 years, with organisations who acted as the trailblazers of automation already reaping the rewards of these efforts, both in terms of immediate impact and ability to react to future disruptions. Those not so quick off the mark in this field are being forced to attend to this with increasing urgency, as the digital age threatens an impending sink or swim scenario.

The energy transition has also been a standout theme, with the past year bringing a laser like focus to this matter. As pressure mounts to reduce emissions, the investment decisions made now by major players forge a path to the industry’s transition towards a greener future by not only reacting to this call for action, but in leading the way as a steward, sharing learnings in scaling and deploying technologies and executing major projects. Similarly, as mature basins prepare for retirement, decommissioning is another example of a new venture oil companies are embracing and setting the benchmark for.

With a tumultuous 10 years almost behind us, the familiar forces that once shaped the industry will only continue to erode. The 20’s will undoubtedly bring further metamorphic change and organisations will need to approach their playbook with adaptability, innovation and creativity to remain relevant and sustainable when facing the opportunities and challenges which lie around the corner.

global engineering and construction company Kentz, which he was instrumental in growing from a small AIM-quoted business to a $2.5 billion revenue FTSE 250 company before its sale to SNC Lavalin in 2014. More recently, he held the role of Corporate Development Officer with SNC Lavalin, where he led the $2.67 billion acquisition of WS Atkins.Christian has also held senior leadership roles within US Fortune 500 companies Kellogg Brown & Root and Foster Wheeler, working across Europe, Africa, Middle East, Asia Pacific and the Americas.

Jinda Nelson

Industry body Decom North Sea Appoints Board Chair Decom North Sea has announced the appointment of Jinda Nelson as Chairman of the board of directors. She has been an active member of Decom North Sea for several years and replaced Nigel Lees, Senior Vice President Decommissioning at Wood who has been in the role of Chairman for three years. Jinda’s brings a holistic understanding of design and construction, underpinned by time spent in a mechanical engineering post working on various projects, including FPSOs and is involved in a number of live decommissioning projects both offshore and at United Kingdom quaysides.

www.ducatuspartners.com ON THE MOVE brings more than 25 years' experience in global wells projects and has worked predominantly across the North Sea and Middle East for BP, Shell and Schlumberger. He most recently held the role of UK Director Wells at Maersk Oil, followed by Drilling Manager at Total post-acquisition.

Melvin Banford was announced as Head of Wells Assurance, also a newly created role. Melvin brings 25 years' experience in wells business assurance and performance improvement, gained through both consultancy and roles within operators.

Goh Swee Chen

Woodside Announces Appointment of NonExecutive Director

Lloyd’s Register Announces Key Appointments to Well Management Team

Woodside has announced that Goh Swee Chen has been appointed as a Non-Executive Director of the business, effective January 2020.

Lloyd's Register has bolstered its team with a series of key appointments following a series of major contract wins and global growth.

Goh joined Shell in 2003 and retired as Chairperson of the Shell companies in Singapore in January 2019. During her tenure with the company, she served on the boards of numerous Shell joint ventures in China, Korea and Saudi Arabia. Prior to joining Shell, Goh worked at Procter & Gamble and IBM. Goh is currently based in Singapore, and has lived and worked in Malaysia, the Netherlands, Australia, the United States, Japan and China.

John O'Neill has been appointed to the newly created position of Head of Wells Delivery. He

She is currently a Non-Executive Director of Singapore Airlines, Singapore Power and CapitaLand. Goh also serves as Chair of the Institute for Human Resource Professionals, the Global Compact Network Singapore and the National Arts Council and a member of public service boards including the Legal Services Commission. Furthermore, she is also a trustee on the board of Nanyang Technological University.

Adam Ezzamel

Former Aberdeen Wind Boss to Lead North Sea Renewables Project Former Aberdeen Wind Boss to Lead North Sea Renewables Project Red Rock Power, the Chinese owned developer, has named Adam Ezzamel to run the 700MW offshore wind project which missed out on a contract for difference in a recent auction. Adam notably project managed the Donald Trump opposed Aberdeen Bay development as well as the pioneering Neart na Gaoithe off the United Kingdom, will be in charge of progressing the consented wind farm, which was reconfigured with a slimmeddown layout built around 72 turbines rather than the 110 that were incorporated into the original Inch Cape development plan.

Lisa Davis

Kosmos Energy Announce Board Appointment

Derek Harrold also joins as UK, Europe and Africa Wells Manager from CNOOC, alongside Head of Wells HSSE Steve Harris, who was most recently Senior HPHT Operational QHSE Specialist at Total.

All positions will be based in Aberdeen with a global remit and add to the 200 dedicated engineering specialists are currently part of Lloyds Register’s wells engineering and project management consultancy.

Kosmos Energy have announced the appointment of Lisa Davis to the board. Lisa also currently serves on the board of Siemens and Penske Automotive Group. During her executive career, Lisa spent over 15 years with Shell, laterally serving as an Executive Vice President of Downstream Strategy, Portfolio and Alternate Energy. She has worked in a number of Vice President level positions with Shell across their refining operations, supply and trading, and lubricants and bulk fuels sales and marketing divisions on a global basis. Lisa began her career in the oil and gas industry at Chevron, later moving to Exxon and Texaco in a range of roles from upstream production to offshore project development to refining operations planning.

Lorraine Mitchelmore

Andy Ghiz

Oxford Flow Appoint Vice President to Americas Business Oxford Flow, the pressure control equipment and technology company spun out of Oxford University, have announced the appointment of Andy Ghiz as Vice President Americas.

Andy will be based in Houston and will lead the company’s growth in the region. Andy joins from Crane where he was the Global Business Line Manager for the organisation’s ball value division. He also has experience with Cooper Valves as Director of Operations and Sales, with Wood where he was Senior Vice President Business Development for PSN and also held the role of Vice President for Midstream and Pipeline services at URS.

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Suncor Announces Board of Directors Appointment Suncor has announced the appointment of Lorraine Mitchelmore as Non-Executive Director to the business. Lorraine brings over 30 years of international oil and gas experience and most recently served as the President and Chief Executive Officer for Field Upgrading, a private equity backed fuel upgrading technology company located in Calgary. Prior to this, she was the President and Country Chair of Shell Canada Limited as well as Executive Vice President Heavy Oil for Shell Americas. She has been a Director of the Bank of Montreal since 2015 and has served on the Boards of Shell Canada Limited, the Canada Advisory Board at Catalyst and Trans Mountain Corporation.

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BASSOE ANALYTICS

9/12/2019

B A S S O E

A N A LY T I C S

www.bassoe.no

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BASSOE ANALYTICS

www.bassoe.no

9/12/2019

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PROJECT TRACKER

P ATHFINDER - UKCS Status Report Decommissioning Projects OPERATOR

FIELD

BP EXPLORATION

Don

CENTRICA STORAGE HOLDINGS

Rough

CNR INTERNATIONAL CONOCOPHILLIPS

Ninian

CONOCOPHILLIPS

MacCulloch

BP EXPLORATION

Miller

CNOOC LIMITED

Ettrick/Blackbird CMS

Caister CM

CONOCOPHILLIPS

CONOCOPHILLIPS

DANA PETROLEUM E&P

Murdoch Hudson

ENDEAVOUR ENERGY

Renee / Rubie

Schooner

DNO NORTH SEA

Little Dotty

ENI UK LIMITED

Hewett

ENI UK LIMITED

Dawn

ENI UK LIMITED

Big Dotty

ENI UK LIMITED

INEOS INDUSTRIES NEPTUNE E&P

Cavendish Minke

PERENCO OIL & GAS PERENCO OIL & GAS PERENCO OIL & GAS

TYNE GUINEVERE Pickerill (Under Construction)

Juliet

P R O J E C T

T R A C K E R

NEPTUNE E&P

Glamis

PREMIER OIL PLC

Caledonia

PREMIER OIL PLC

PREMIER OIL PLC

Huntington

PREMIER OIL PLC

Rita & Hunter

Balmoral

PREMIER OIL PLC

Tartan (Under Construction)

REPSOL SINOPEC RESOURCES

Beatrice

REPSOL SINOPEC RESOURCES

REPSOL SINOPEC RESOURCES ROCKROSE ENERGY

Fulmar (Under Construction) Brae Bravo

ROYAL DUTCH SHELL

Various

East Brae

ROCKROSE ENERGY

Brent

ROYAL DUTCH SHELL

Atlantic and Cromarty

ROYAL DUTCH SHELL

Curlew

ROYAL DUTCH SHELL

Goldeneye

ROYAL DUTCH SHELL

Markham

SPIRIT ENERGY

Ann & Alison

SPIRIT ENERGY

SPIRIT ENERGY

Annabel

SPIRIT ENERGY

Trees

Audrey

SPIRIT ENERGY

SPIRIT ENERGY

York

Markham (Under Construction)

SPIRIT ENERGY

SPIRIT ENERGY

South Morecambe Eider

TAQA EUROPA B.V

Tern

TAQA EUROPA B.V

TAQA EUROPA B.V

Cormorant Alpha North Cormorant

TAQA EUROPA B.V

UKCS Status Report For additional project summaries, locations and contact details, follow the link www.oilandgasvisionjobs.com/project-pathямБnder

www.ogvenergy.co.uk

38

PROJECT TRACKER

Date Generated: 09-DEC-2019

Current Projects OPERATOR

FIELD

ALPHA PETROLEUM UK HOLDINGS

Cheviot

Clair Ridge (Under Construction)

BP EXPLORATION

Alligin (Under Construction)

BP EXPLORATION

Vorlich (Under Construction)

BP EXPLORATION

ETAP

BP EXPLORATION CHEVRON CORPORATION

Captain

DANA PETROLEUM E&P

Platypus

ENQUEST PLC

All UKCS

ENQUEST PLC

Thistle (Under Construction)

EQUINOR ASA

Utgard Darwin

FAIRFIELD ENERGY LIMITED

Skye

FAIRFIELD ENERGY LIMITED

Marigold & Sunflower

HIBISCUS PETROLEUM

Lancaster (Under Construction)

HURRICANE ENERGY

Southwark

INDEPENDENT OIL AND GAS

Blythe

INDEPENDENT OIL AND GAS

Elgood

INDEPENDENT OIL AND GAS

Breagh

INEOS INDUSTRIES

Cook (Under Construction)

ITHACA ENERGY INC.

Seagull

NEPTUNE E&P

Perth

PARKMEAD GROUP PLC

Wollaston

PERENCO OIL & GAS

LEMAN and INDEFATIGABLE

PERENCO OIL & GAS

Avalon

PING PETROLEUM LIMITED

Tolmount (Under Construction)

PREMIER OIL PLC

Catcher (Under Construction)

PREMIER OIL PLC

Tain

REPSOL SINOPEC RESOURCES REPSOL SINOPEC RESOURCES

Montrose

ROYAL DUTCH SHELL

Penguin Area

Arran

ROYAL DUTCH SHELL

Fram

ROYAL DUTCH SHELL

Jackdaw

ROYAL DUTCH SHELL

Gannet D Pipeline Replacement Project

ROYAL DUTCH SHELL

Columbus

SERICA ENERGY

Cambo

SICCAR POINT ENERGY

Suilven

SICCAR POINT ENERGY SICCAR POINT ENERGY

Tornado

TOTAL UPSTREAM UK LIMITED

Edradour

Morrone (Under Construction)

TAQA EUROPA B.V

TOTAL UPSTREAM UK LIMITED

Glenlivet

WHALSAY ENERGY

Bentley

Sillimanite

WINTERSHALL B.V.

Discovery Projects FIELD

OPERATOR BP EXPLORATION

Murlach - Clair South - Andrew

CNOOC LIMITED

Blackhorse

ENQUEST PLC

Eagle

EQUINOR ASA

Peik - Bressay - Rosebank - Frigg - Mariner East

HURRICANE ENERGY

Lincoln, Warwick (Under Construction)

PHARIS ENERGY LTD

Pilot

39

www.ogvenergy.co.uk

EVENTS CALENDAR

EVENTS 2020 JANUARY

APRIL

International Petroleum Technology Conference (IPTC 2020) 13th-15th - Dhahran, Saudi Arabia

International Conference For Oil, Gas & Energy Industry Conference 01st-03rd - Lahore, Pakistan

National Biodiesel Conference & Expo 20th-23rd - Tampa, USA

LDC Gas Forums Southeast 06th-08th - Atlanta, USA

Oil & Gas IoT Summit 22nd-23rd - Lisbon, Portugal

Atyrau Oil & Gas 08th-10th - Atyrau, Kazakhstan

JULY

Industrial Market Outlook & Networking Event 23rd - Houston, USA Energy

International Mining & Oil Expo 08th-10th - Ulaanbaatar, Mongolia

Mexico Oil and Gas Summit 15th-16th - Mexico City, Mexico

FEBRUARY

Hydrogen + Fuel Cells EUROPE 20th-24th - Hanover, Germany

SPE Hydraulic Fracturing Technology Conference & Exhibition 5th-7th - The Woodlands, Texas

Nigeria Oil & Gas Conference & Exhibition (NOG) 29th Jul - 2nd Aug - Abuja, Nigeria

MAY

Nigeria International Petroleum Summit 9th-12th - Abuja, Nigeria International Petroleum Week (IPW) 25th-27th - London, UK

OFFSHORE TECHNOLOGY CONFERENCE 4th-7th - Houston, USA OGV Business Breakfast - OTC 4th - Houston, USA

The 6th CWC China LNG & Gas International Summit & Exhibition 4th-6th - Shanghai, China

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

3rd CWC Japan LNG & Gas Summit 24th-25th - Tokyo, Japan The 11th International Petroleum & Natural Gas Summit 27th-28th - Beijing, China

Global Petroleum Show 9th-11th - Calgary, Canada Gas Indonesia Summit & Exhibition 10th-12th - Jakarta, Indonesia

AUGUST

OGV Open 2020 - OTC 3rd - Houston, USA

MARCH

Australasian Oil & Gas Exhibition & Conference 11th-13th - Perth, Australia

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

International Fair Petrol Station 13th-15th - Warsaw, Poland JUNE International Caspian Oil And Gas Exhibition And Conference 2nd-4th - Baku, Azerbaijan The Future of Latin America Oil & Gas Digital Transformation Summit 3rd-4th - Rio de Janeiro, Brazil

LDC Gas Forum 3rd-5th - Denver, USA Roseland South Texas Oil and Gas Convention 12th-13th - San Antonio, USA Symposium on Fuel Cells and Electrolysis: Promising Energy for the Future 30th Aug - 4th Sep - Belgrade, Serbia SEPTEMBER 2020 IADC Advanced Rig Technology Conference & Exhibition 1st-2nd - Texas, USA World Heavy Oil Exhibition & Congress 1st-3rd - Muscat, Oman LDC Gas Forums Mid-Continent Forum 14th-16th - Chicago, USA

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

EVENTS SPONSORED BY

SERVICE SAVINGS SOLUTIONS

UNCOMPLICATED

CORPORATE

TRAVEL

For all enquiries visit www.traveleads.co.uk or contact Sally Cassidy on m. 07715 079 723 scassidy@traveleads.net

Aberdeen FC has announced a collaborative and innovative partnership with leading energy brand Swire Oilfield Services and Dubai City Football Club which will see the Club deliver its inaugural International Training Camp.

Taking place in January, while the first team is visiting Dubai for their Winter Training Camp, the exciting initiative will create opportunities for Dubai City Football Club Academy players to be coached ‘the AFC way’.

In a unique move, which will see AFC develop its brand and professional coaching programme in the Middle East, prominent AFC Youth Academy coaches will deliver a threeday training camp, sharing best practise and club philosophies with DCFC, while simultaneously offering a platform for Swire to engage with the club’s global fanbase and drive local community engagement.

Commenting on the partnership, AFC Commercial Director, Rob Wicks, said: “We are delighted to be working with Swire Oilfield Services, another high calibre brand and

global team player in the energy industry, as we look to deliver this innovative new International Training Camp in Dubai.

“This new relationship creates opportunities for children in Dubai to receive first class training from experienced Aberdeen FC Youth Academy coaches; those participating will also receive a visit from the players and the management team during the event. It will provide a global platform for both Aberdeen FC and Swire Oilfield Services to further establish our brands across the region whilst helping to foster new relationships”.

Swire Oilfield Services Middle East General Manager, Jonathan Hughes, commented on the partnership: “The UAE forms an integral part of the global growth of our business and we are committed to ongoing invest-

ment in Dubai and the region as a whole.

This partnership will bring together the best of Aberdeen and Dubai and help cement the already close relationship between the two cities.”

Aliser Beck, North Sea General Manager for Swire Oilfield Services, added: “Having been established in Aberdeen over 40 years ago, it is great to be able to bring part of Swire Oilfield Services heritage to Dubai. This is a fantastic initiative and we are delighted to be working with the clubs, supporting local children across the city.”

To find out more about Aberdeen Football Club and Aberdeen FC Community Trusts partnership and collaboration projects and future plans, please get in touch: Sarah McColl, Partnerships Manager, Aberdeen Football Club. sarah.mccoll@afc.co.uk

LEGAL & FINANCE

Top tips for oil and gas business in 2020

By Laura Petrie, Brodies LLP, November 2019.

What’s in store for your business in 2020? The following tips outline some of the key issues that should be kept in mind when planning for next year:

1

Start early. Not the New Year celebrations, but preparation for IR35 changes that will significantly impact sector hiring practices from April 2020. Companies need to audit their use of off-payroll workers, establish how they will assess and communicate with contractors and create new policies and processes for future engagements which meet the requirements of the (still) draft legislation.

2

Be inquisitive. Use of artificial intelligence and automation is becoming increasingly prevalent – whether in relation to ROVs or the IT systems used to analyse data or automate processes. It's essential that organisations understand the risks when deploying such technology. Make sure your business is asking the right questions and getting the right advice - how is the system trained? How do you avoid algorithmic bias? Who is liable for errors or mistakes? How do you ensure compliance with data protection laws when making decisions about individuals?

3

Check employment docs. From 6 April 2020 the rules regarding written statements of employment particulars will change. It will now apply to workers (those whose employment rights are between self-employed and employed) as well as employees and will become a “day 1 right”.

Statements must be issued no later than the

BRENT vs WTI 1 YEAR

start of the engagement and include additional information including terms and conditions relating to hours of work, details of all paid leave (i.e. maternity leave) and details of training you provide or require the individual to undertake.

4

Get secured. With effect from April 2020, sums due to HMRC on the insolvency of individuals and corporates will enjoy a “secondary” preferential ranking. This means that VAT and “relevant deductions” will have priority over sums due to floating charge holders but also over ordinary unsecured creditors, including suppliers and other trade creditors. Relevant deductions are taxes the debtor is required to deduct from payments to any other person and pay to HMRC, i.e. PAYE (including student loan repayments); employee National Insurance Contributions and Construction Industry Scheme deductions.

This could have implications for fields where decommissioning security agreements have not yet been put in place and also high value contracts that don’t include performance and payment security mechanisms.

5

Train and Re-train. Rig and vessel reactivation (from warm or cold stack) is becoming more commonplace as the industry gets back to business but also creates “rust risk”. With equipment, this can be addressed via survey then repair or re-

WTI 1 MONTH

SEEING OIL & GAS THROUGH MANY LENSES. Enlightened Thinking brodies.com

placement, but ‘rust’ among the crew - due to lack of familiarity with equipment, procedures, and co-workers - creates other risks.

Re-training, familiarisation and monitoring of the crew is key to ensure compliance with health and safety regulations.

6

Be vigilant. The high flammability of lithium ion batteries (those used within smartphones/tablets) remains a concern for the industry. This is a primary risk with helicopters due to the limited fire suppressant or firefighting equipment available on board. A recent check in Aberdeen showed 20% of landings had a live piece of equipment on board with the power switched on. The message is clear: be vigilant; turn off your device.

7

Go digital. Digitalisation is identified as one of the primary building blocks of improved efficiency. In order to meet the decommissioning cost reduction targets proposed by the Oil and Gas Authority and the principles for improving the industry as part of the Vision 2035 campaign, digitalisation of the supply chain (and related procurement processes) needs to be a key focus of the industry over the next few years.

8

Update assessments. Make sure that bribery and tax evasion risk assessments are conducted on the organisation's operations. The risk assessment is a vital part of an effective, proportionate compliance programme and recent case law indicates that a defence to corporate failure to prevent offences may not be possible without it.

BRENT 1 MONTH

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