OGV Energy - Issue 35 - August 2020 - The Training Issue

AUGUST 2020

UK’s No. ENERGY SECTOR

1

PUBLICATION

THE TRAINING ISSUE VIRTUAL TRAINING

New technologies and simulators are transforming the way we learn

TECHNOLOGY

New membrane could boost efficiency in oil refining process

OIL-PRICE

OPEC+ eases output cuts but not rushing to boost oil exports

RENEWABLES

Offshore wind energy could become central to the Scottish Government’s response to the crisis

FOSSIL FUELS North Sea Oil & Gas Review Contracts and Analytics

REGIONAL REVIEWS Middle East, Europe, US, Australia

RENEWABLES FOCUS INNOVATION & TECH GREEN ENERGY PROJECTS MAP ON THE MOVE OPINION EVENTS LEGAL

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CONTENTS

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FOSSIL FUELS

9 UK North Sea Oil & Gas Review 12 Rystad Analytics 15 UKCS Status Report

REGIONAL REVIEWS

22 Middle East 24 Europe 26 US 27 Australia

TRAINING FOCUS

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28 Training & Upskilling Could Help UK Offshore Industry Recover 30 3T Energy Group: Transforming global training with 'Transform’

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32 Safer Training: Combining safety & virtual simulation technology 34 Norwell Edge: Companies turn to digital training to deliver efficient operations 36 Global Corrosions Solutions Group launches G.C.S.G. Training

INNOVATION ZONE 38 Intoware launches custom reporting 'tool' for safety-critical environments 39 The adoption of the 4th revolution digital toolbox 40 Membrane technology could cut emissions and energy in oil refining process

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GREEN ENERGY 42 Fugro starts Vattenfall site investigations at two UK offshore wind farms 43 Industry bodies agree partnership to support low carbon future

EVERY MONTH 6 Cover Partner: Petrofac 16 World Project Maps 18 Contact Awards 44 On the Move 46 Opinion 49 Events 50 Legal and Finance

KENNY DOOLEY MAIN EDITOR Thank you for taking the time out to read our August issue. With 2020 ticking past, I feel like we had a false start in in the first quarter of the year and since then have been reviewing our practices and offerings; looking for ways to grow and develop during the most difficult months that followed. Over the past few weeks I have spoken to so many friends, family members and associates that have lost their job or are uncertain of their future, it’s very clear that the energy sector and everyone involved is facing challenging times ahead.

As with every edition, we hope that all our readers are safe and well and if myself or the OGV Energy team can help in any way, be that to have a chat, offer any advice or an introduction then please get in touch.

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Our cover partner this month is Petrofac who discuss the evolution of training within the energy sector with our readers; virtual and digital learning are playing a larger part than ever before, allowing training to be more flexible and cost effective.

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Our feature this month is on Training, looking into a range or training providers and understanding the changes and improvements within this key part of the industry, ensuring safety is paramount in one of the toughest industries on the planet. In this issue, we spoke to Paradigm Leap, GCSG, Norwell Edge, Matthew Laskaj, Safer Training and Transform, part of 3T Energy group who told us about their revolutionary competency management platform.

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The rest of this month’s magazine features our regular reviews of the energy sector in the North Sea, Europe, the Middle East, the US and Australasia along with industry analysis and project updates from Rystad Energy and the EIC as well as the second part of our opinion piece on who regulates the regulators.

Thanks again to our readers for all their support during these challenging times and hopefully by the time of the next issue we will begin to see more positive steps towards recovery and a return to normal life for us all.

@OGVENERGY

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TRAINING FEATURE

THE EVOLUTION OF VIRTUAL TRAINING ANYWHERE, ANYTIME

Petrofac’s Training Services business has been successfully delivering courses and setting industry standards for more than four decades.

In that time technology has transformed the way people work, learn and train. As COVID-19 continues to impact working practices across the globe, Petrofac is providing its customers with more digital solutions than ever before, while continuing to safely deliver practical training from its centres in Aberdeen and Montrose, UK. The company, which operates globally, has introduced additional eLearning courses, as well as online competency packages, and an interactive, virtual emergency response and crisis management hub.

Petrofac is the leader in energy industry safety, survival, marine and emergency management training and has enrolled more than a million people in the UK since its inception.

A trusted partner, known for its customerfocused approach, the company has the broadest range of up-to-date energy industry training, delivered by a highly-experienced team of trainers.

Virtual learning and digital training are playing an increasingly important role, which, combined with physical practical teaching, effective and enhanced learning experience.

Jill Ogilvie, Petrofac’s Training Services Customer Care and Business Development Manager said: “The way we deliver training and provide our emergency response services has changed hugely over the years, as we continue to embrace new technologies, modern working practices and blended learning options.

“What hasn’t changed is the amount of energy and enthusiasm our team brings to each activity, along with their vast industry knowledge.

“Whether delivering training virtually, supporting emergency response and crisis management activity, or running courses at our centres, we combine our rich training heritage, our industry knowledge and state-of-the-art digital tools to offer a best-in-class experience.”

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TRAINING FEATURE TRANSFORMING GLOBAL TRAINING THROUGH VIRTUAL TOOLS Virtual tools are transforming the way many of Petrofac’s training courses are delivered, and a recent increase in demand has led the company to add more classes to its 2020/2021 calendar.

Covering a range of topics from Offshore Safety Representatives and Offshore Installation Manager (OIM) Legislation, to Manual Handling and Workplace Competence, each remote course is live and led by highly experienced instructors, delivering the same content as would be the case in a physical classroom setting.

Barry Christie, Safety and Survival Manager said: “Virtual training enables us to bring people together, from different locations across the training, no matter where they are based.

“Delivering the courses virtually means delegates have no need to travel, keeping costs down and saving time, while also lowering their impact on the environment.

We have also reduced course durations, where possible, and passed on cost savings of up to 40% to our customers.

“Group messaging, voting and feedback are all being used, making the whole experience incredibly interactive. Plus the fact that classes can be recorded means that it’s easy to catch up and review at a later date if required.”

ACCESS TO TRAINING 24/7 With more people basing themselves at home, the demand for eLearning is growing

solutions is at the forefront of Petrofac’s approach. Through an expanded eLearning library Petrofac is enabling delegates to study at their own speed.

Petrofac’s Technology Solutions Operations Manager, Tiemen van der Linden explains hows his team has worked hard to make sure courses are learner-centric. “We enable participants to successfully achieve their training objectives virtually”, he explains.

RESPONDING TO A CRISIS IN A CRISIS

These new technologies, combined with better infrastructure and Cloud computing, means we can offer really innovative solutions to let learners access information in a timely, independent and interactive manner.”

Tiemen van der Linden Technology Solutions Operations Manager

Previously incident response teams would have mobilised to Petrofac’s 24/7 Emergency Response Service Centre (ERSC) in Aberdeen.

Graham Brown, Crisis and Response Manager said: “We have put in place additional measures to ensure our virtual response is as robust as the traditional method.

“There is functionality that replicates in-room verbal communications, and we can continue to log, share and track updates and tasks through our newly developed and fully interactive dashboards.”

With the ongoing COVID-19 outbreak, the

WORKFORCE COMPETENCY MANAGEMENT GOES DIGITAL Designed to support the complex needs of the energy sector, the company’s fully integrated training management service brings together practical training, eLearning and supply chain management.

Underpinned by Petrofac’s own learning and competency management software suite, the management, mapping and reporting of training and competency objectives.

SkillsVX has been developed to support industry regulatory requirements and meet the offshore workforce. It enables the creation of training matrices and helps businesses co-ordinate the required mix of skills and competencies across their organisation and individual assets.

customers, however, there is still the option to utilise Petrofac’s ERSC for traditional response methods, with social distancing and stringent hygiene measures in place.

Graham added: “The entire team worked together to ensure the effectiveness of our virtual response capability and we spent weeks developing what we estimate to be three-years’ worth of enhancements.

“We’ve also supported a number of customers in rolling out the system within their own organisations and have been asked to participate in various industry exercises to prove its capability.

“It’s an exciting time as this virtual capability We’re already generating new international work, demonstrating again that the standards we have set in the highly regulated UKCS, internationally.”

compliance, helping them stay ahead of their future training and competency needs.

SkillsVX has so far, facilitated 100,000 users worldwide, enabling the delivery of 250,000 eLearning courses and the completion of 70,000 paperless assessments.

“With more than 200 courses covering HSSE, technical training, engineering, construction, operations, maintenance and soft skills, Petrofac is making the virtual classroom a reality.

Michaela Nicholson, Training Management Services Manager said: “Our position as both a service company and a training provider means we have a unique understanding of the training, competency and compliance requirements of the industry.

“Delivering digital content to any scope and in any language, we have also introduced further digital tools using simulation, animation, augmented and virtual reality to provide next generation learning.”

“It’s thanks to the fact we have decades of experience that we can implement training solutions, underpinned by the latest technology, to effectively manage our clients’ workforce competency.”

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Petrofac has also been investing in new technologies to support effective emergency management.

Jill Ogilvie Customer Care and Business Development Manager

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FOSSIL FUELS

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AUGUST

UK North Sea Oil & Gas Review

By Tsvetana Paraskova

Pathways to economic recovery, massive writedowns from oil majors in the wake of the price crash, and numerous deals and service contracts marked this past month in the oil and gas industry in the UK North Sea.

A report from the independent Advisory Group established by the Scottish Government to advise on Scotland’s economic recovery in the wake of the COVID-19 pandemic said in June that offshore wind energy could become central to the Scottish Government’s response to the crisis, and a key component in the transition to a low carbon economy in Scotland.

“With huge wind resources and a marine area six times the size of Scotland’s land mass, offshore wind offers considerable potential for sustainable economic growth. Scotland can and should be a leader in marine renewables,” the report says.

The Committee on Climate Change (CCC), the UK’s leading advisory body on actions to tackle climate change, said in a report to Parliament that the current crisis could turn into a defining moment in the fight against climate change. The report proposes low-carbon buildings and heating systems, new hydrogen and carbon capture and storage (CCS) infrastructure, and fast-tracked electric vehicle charging points to accelerate the move towards a full phase-out of sale of new petrol and diesel cars and vans by 2032 or earlier.

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FOSSIL FUELS Shell, for its part, signed a five-year, multimilliondollar software contract with drone-based inspection provider Cyberhawk, under which Cyberhawk’s cloudbased asset visualisation software iHawk will become Shell’s next generation visualisation software platform for all onshore, offshore and subsea assets, as well as all global construction projects.

OGUK, the leading representative for the UK’s offshore oil and gas industry, welcomed the report, and called for energy communities like the North East of Scotland and the East of England to be put at the centre of plans for the energy transition.

“We urgently need a green recovery which enables our industry to meet as much of the UK’s oil and gas demand from domestic resources while developing the critical solutions which will help reduce emissions in other industries and wider society. This is the fair, sustainable and inclusive transition which will allow the UK to meet its climate ambitions in a way which supports jobs, skills and energy communities,” OGUK Chief Executive Deirdre Michie said.

Rovco opened at the end of June a new office in Edinburgh to support continued growth of the offshore wind industry.

“Our cutting-edge digital technologies and offshore renewable offerings are primed and ready to support both existing and new fixed or floating assets across Scotland’s offshore wind farms. We are proud to serve this great industry and these exciting developments from our Edinburgh base,” general manager Simon Miller said.

During a hearing at the Scottish Affairs Committee, Michie said in early July that since the crisis began, a total of 7,500 jobs in the industry had been made redundant and more redundancies could be coming if activity does not pick up.

During the COVID-19 crisis, upstream oil and gas operators moved quickly to cut spending on North Sea projects, with 2020 budgets slashed with FIDs deferred, infill drilling campaigns cancelled, and most discretionary spend withheld, Wood Mackenzie said in an analysis.

In company news, Shell warned on 30 June of post-tax impairment charges in the range of US$15 billion to US$22 billion in the second quarter, after it revised down its oil and gas price assumptions for the short, medium, and long term. Shell’s announcement followed bp’s warning from two weeks earlier, in which bp also revised down its long-term oil price assumptions, saying they would lead to non-cash impairment charges and write-offs in the second quarter of 2020 estimated at between US$13 billion and US$17.5 billion post-tax.

“The impairment Shell has announced is about more than an accounting technicality, or an adjustment to near-term price assumptions,” said Luke Parker, vice president, corporate analysis at WoodMac. “It’s about fundamental change hitting the entire oil and gas sector. Within this write down, Shell is giving us a message about stranded assets, just like BP did a few weeks ago,” Parker added. bp struck a major deal at the end of June, agreeing to sell its petrochemicals business to INEOS for US$5 billion.

“Today’s agreement is another deliberate step in building a bp that can compete and succeed through the energy transition,” bp’s chief executive officer Bernard Looney said.

Commenting on the deal, Steve Jenkins, vice president of Wood Mackenzie’s petrochemicals team, said: “This move makes strategic sense. BP held onto these assets in 2005 when they were making strong profits. Now these chemicals businesses are struggling with over-capacity and BP is urgently raising cash.”

“This is a significant move, signalling its switch to focus on new energies,” Jenkins added.

www.ogvenergy.co.uk I August 2020

Dril-Quip and Proserv Group announced a strategic agreement under which Dril-Quip will rely upon Proserv for the development and manufacturing of its subsea control systems as a supplier.

We urgently need a green recovery which enables our industry to meet as much of the UK’s oil and gas demand from domestic resources while developing the critical solutions which will help reduce emissions in other industries and wider society OGUK Chief Executive Deirdre Michie said.

Serica Energy said it would reward shareholders with the issue of a maiden dividend of 3p per share, despite the number of unexpected challenges that 2020 has bought to the industry so far.

Aberdeen-based well management and performance improvement specialist Exceed announced the establishment of a Stavanger-based subsidiary, Exceed Norge, as part of its strategy to strengthen and diversify its profile, in terms of both geographic footprint and services offered.

“Combining the local presence and expertise of Exceed Norge with the capabilities of Aberdeenbased Exceed has resulted in a highly experienced and effective pan-North Sea alliance, which will now include site survey, rig positioning, well incident recovery and marine services,” said Ian Mills, Exceed Group Managing Director.

Ithaca Energy said in its Q1 results release on 29 June that it recognised a post-tax impairment of US$795 million “as a result of the historic collapse in oil and gas prices at the end of the quarter.” The impairment was partly offset by a US$306 million post tax in the value of the future commodity hedges held by the company.

Neptune Energy awarded on 1 July a subsea inspection contract to geo-data specialist Fugro, which will employ state-of-the-art remote monitoring technology to survey subsea structures at the Cygnus gas field in the UK’s southern North Sea. Fugro’s scope of work includes inspection of subsea infrastructure including pipelines and umbilicals, spools and communication cables, and standard structural surveys of the Neptune-operated Cygnus gas platform jackets.

Premier Oil said on 2 July it would not be pursuing the purchase of the additional 25% interest in Tolmount from Dana Petroleum, following the termination of the Escrow Agreement on 30 June.

On 20 July, Premier Oil said it had signed sale and purchase agreements with bp for the acquisition of bp’s interests in the Andrew Area and its Shearwater assets, reflecting the amended terms of the deal in June. Under the revised purchase price, Premier Oil will pay bp US$210 million upon completion of the acquisitions, targeted to occur by the end of September 2020.

FOSSIL FUELS sponsored by

UK North Sea Oil & Gas Review The boards of directors of Viaro Energy and RockRose said in early July they had reached an agreement on the terms of a recommended all-cash offer in which Viaro Energy will buy the entire issued and to be issued ordinary share capital of RockRose Energy.

Independent global completions service company Tendeka, based in Aberdeen, said on 15 July it had joined the OSIsoft EcoSphere, a collection of more than 300 industrial leaders that provide products, applications, and services for the PI System.

Tendeka will provide downhole monitoring, analysis and modelling products to support customers in their digital transformation and integration strategies.

“After careful reflection, the Board of RockRose has concluded that accepting this offer is firmly in the best interests of our shareholders. It has been an “We realise the incredible benefits exciting journey since RockRose that collaboration with agile, was founded five years ago. like-minded companies can However, for the benefit bring to our customers’ of all stakeholders, now growth ambitions and is the time to move on to our own business and allow RockRose During the COVID-19 development. to continue to flourish crisis, upstream oil and gas Integration with with new backers,” third-party systems, said Andrew Austin, operators moved quickly IoT devices and Executive Chairman to cut spending on North platforms like the of RockRose.

OSIsoft PI System is Sea projects, integral to overcome the Hurricane Energy operational challenges warned on 8 July Wood Mackenzie faced in today’s industry that the outcome of a said in an analysis. and accelerate our software technical review may lead offering to solve future issues. to a material downgrade This successful integration of the contingent resource solution will reinforce producers’ estimates at the Lancaster field and investment strategies,” said Annabel Green, contingent resources associated with the chief technology officer at Tendeka. overall West of Shetland portfolio.

Reabold Resources, an investing company which focuses on investments in upstream oil and gas projects, said on 15 July it was evaluating a possible all-share offer for the entire issued and to be issued share capital of Deltic Energy plc. After consideration of the offer with its advisers, Deltic Energy announced on the next day that its board had rejected the offer. Deltic’s largest shareholder IPGL (Holdings) Limited stated in a letter on 20 July its intention not to support the offer and reiterated its continuing support of Deltic’s management team, its technical capability, focused asset base with high impact potential and current strategy.

Vroon Offshore Services (VOS) Aberdeen said on 17 July it had secured contracts with Total E&P UK for three emergency response and rescue vessels (ERRV) for an initial period of three years. The vessels VOS Enterprise, VOS Prospector, and VOS Vigilant will support Total’s North Sea operations in the Dunbar, Culzean and Elgin/Franklin Fields, respectively.

BRENT OIL PRICES OVER THE YEARS August review

1

YEAR AGO

- BRENT OIL PRICE 2019 - $59.04 Digital twin technology lowers offshore inspection costs. The predictive capabilities of a life-cycle condition-based maintenance and monitoring program benefits drilling contractors and operators by lowering overall costs, reducing risks and enabling greater efficiency managing assets

5

YEARS AGO

- BRENT OIL PRICE 2015 - $46.52 China's economic slowdown finally left its imprint on global stock markets in August 2015. But the impact was discernible in the oil market for many months and it went further in the surrounding days.

10

YEARS AGO

- BRENT OIL PRICE 2010 - $77.04

DISCOVER THE OGV PODCASTS AT W W W.O G VE N E R G Y.CO. U K

Midterm elections in US have profound implications for the oil and gas industry While the offshore drilling sector remains in chaos in the political aftermath of the Macondo well blowout, it appears that US drilling on the whole is recovering nicely from the lows of 2009, due to the rebound of oil prices and continued success in the burgeoning shale plays.

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FOSSIL FUELS

Conducted by Craig Jamieson and Oddmund Føre @ Rystad Energy

Service Market Drivers Greenfield project sanctioning

Database version: Rystad Energy Databases July 2020 Review

Sanctioning year (2016 - 2022)

Year (2016 - 2022)

Year (2016 - 2022)

RYSTAD ANALYTICS SPONSORED BY

Rystad offer global and regional tools tailored specifically for in-depth analysis of the upstream, oilfield service, energy markets and renewable energy industry.

The consistency of data is a result of our systematic research by combining publicly available information and Rystad Energy’s estimates and models.

Our analysts gather data from company reports, investor presentations and press releases, governmental sources, as well as public institutions such as IEA, OPEC, USGS, and NPD.

www.ogvenergy.co.uk I August 2020

Database version: Rystad Energy Databases July 2020 Review

Rystad Analytics

Offshore Rig Market Analysis Global overview of current status

Colour code #222a68

PROUD TO BE IN PARTNERSHIP WITH

OGV Energy is delighted to be working in partnership with global energy knowledge house, Rystad Energy, to bring industry insights and analytic detail to our readers in Oil & Gas. As the sector continues to digitise operations on a project and company basis, this high-level monthly data aims to provide key information in context from an industrywide perspective and demonstrate the technology available for those seeking deeper insights to enhance strategic planning and development.

Offshore Rig Market Analysis Fleet current stats

FOSSIL FUELS sponsored by

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14

FOSSIL FUELS

Conducted by Craig Jamieson and Oddmund Føre @ Rystad Energy

Database version: Rystad Energy Databases July 2020 Review

Offshore Rig Market Analysis Utilisation

Colour code #222a68

PROUD TO BE IN PARTNERSHIP WITH

OGV Energy is delighted to be working in partnership with global energy knowledge house, Rystad Energy, to bring industry insights and analytic detail to our readers in Oil & Gas. As the sector continues to digitise operations on a project and company basis, this high-level monthly data aims to provide key information in context from an industrywide perspective and demonstrate the technology available for those seeking deeper insights to enhance strategic planning and development.

Offshore Rig Market Analysis Contract backlog

www.ogvenergy.co.uk I August 2020

view rystad analytics on our APP

P

Decommissioning Projects

Current (Fields)

OPERATOR

OPERATOR

(Wenlock)

P EXPLORATION ALPHA (Don - Miller)

Decommissioning Projects (Fields)

PETROLEUM UK HOLDINGS

) ENTRICA STORAGE(Cheviot HOLDINGS

BP EXPLORATION NOOC LIMITED (Vorlich - ETAP ) (Ettrick/Blackbird) DANA PETROLEUM E&P CNR INTERNATIONAL (Rough)

(Ninian - Banff and Kyle - Strathspey) (Platypus)

CHRYSAOR HOLDINGS CHRYSAOR HOLDINGS (Caister CM - Murdoch - CMS - MacCulloch)

East Expansion DANA PETROLEUMEverest E&P (Hudson) ENQUEST PLC

DNO NORTH SEA (Schooner)

(Thistle - Magnus - Ninian to STV Pipeline) EQUINOR ASA NI UK LIMITED (Big Dotty - Little Dotty - Dawn - Hewett) (Utgard)

NQUEST PLC FAIRFIELD ENERGY LIMITED (Alma and Galia - Heather and Broom) NEOS INDUSTRIES(Darwin - Skye) (Cavendish) HIBISCUS PETROLEUM

NEPTUNE E&P (Minke - Juliet)

(Marigold & Sunflower)

INDEPENDENT OIL AND GAS (Southwark - Blythe - Elgood)

ERENCO OIL & GAS INEOS INDUSTRIES (Guinevere - TYNE - Pickerill - AMETHYST)

PREMIER OIL PLC

(Breagh)

(Huntington - Balmoral - Rita ENERGY & Hunter - Caledonia) ITHACA INC.

REPSOL SINOPEC RESOURCES (Captain) (Tartan - Buchan - Beatrice - Fulmar)

NEPTUNE E&P ROCKROSE ENERGY (Brae Bravo - East Brae) (Seagull)

ROYAL DUTCH SHELL PARKMEAD GROUP PLC (Brent - Atlantic and Cromarty - Curlew - Goldeneye)

(Perth)

SPIRIT ENERGY

(South Morecambe) PERENCO

OIL & GAS (Leman & Indefatigable - Wollaston)

Discovery Projects PING PETROLEUM LIMITED

PHARIS ENERGY LTD (Avalon) (Pilot)

PREMIER OIL PLC JERSEY OIL AND GAS PLC (Catcher - Tolmount - Solan) (Glenn - Verbier ) REPSOL PHARIS ENERGY LTD (Pilot)

SINOPEC RESOURCES

(Tain - Montrose)

PREMIER OIL PLC

ROYAL DUTCH SHELL

(Tolmount East)

(Gannet D Pipeline Replacement Project - Arran TOTAL UPSTREAM UK LIMITED (Edradour Royal Sovereign) Jackdaw - Penguin Area - Fram) TAQA EUROPA B.V.

SERICA ENERGY (Harding North) (Columbus)

OPERATOR

WHALSAY ENERGY (Bentley)

(Fields)

ALPHA PETROLEUM UK HOLDINGS (Wenlock)

BP EXPLORATION (Don - Miller)

CENTRICA STORAGE HOLDINGS (Rough)

CNOOC LIMITED (Ettrick/Blackbird) CNR INTERNATIONAL (Ninian - Banff and Kyle - Strathspey)

CHRYSAOR HOLDINGS (Caister CM - Murdoch - CMS - MacCulloch)

DANA PETROLEUM E&P (Hudson) DNO NORTH SEA (Schooner)

ENI UK LIMITED (Big Dotty - Little Dotty - Dawn - Hewett)

ENQUEST PLC (Alma and Galia - Heather and Broom) INEOS INDUSTRIES (Cavendish) ITHACA ENERGY (Jacky) NEPTUNE E&P (Minke - Juliet)

PERENCO OIL & GAS (Guinevere - TYNE - Pickerill - AMETHYST) PREMIER OIL PLC

(Huntington - Balmoral - Rita & Hunter - Caledonia)

REPSOL SINOPEC RESOURCES (Tartan - Buchan - Beatrice - Fulmar)

ROCKROSE ENERGY (Brae Bravo - East Brae)

ROYAL DUTCH SHELL (Brent - Atlantic and Cromarty - Curlew - Goldeneye) SPIRIT ENERGY

(South Morecambe)

SICCAR POINT ENERGY

s and contact details, follow the link (Suilven - Tornado - Cambo) m/project-pathfinder

Discovery Projects PHARIS ENERGY LTD (Pilot)

WINTERSHALL B.V. (Sillimanite)

JERSEY OIL AND GAS PLC

BP EXPLORATION (Murlach - Clair South)

PREMIER OIL PLC

ENQUEST PLC

TOTAL UPSTREAM UK LIMITED

(Glenn - Verbier )

PHARIS ENERGY LTD (Pilot)

(Tolmount East)

(Edradour Royal Sovereign)

(Eagle) EQUINOR ASA (Peik - Bressay - Rosebank - Frigg - Mariner East)

15

Date Generated: 24-07-2020

Projects

LPHA PETROLEUM UK HOLDINGS

THACA ENERGY (Jacky)

UKCS Status Report

ATHFINDER - UKCS Status Report Date Generated: Date generated 24 24-07-2020 July 2020

TAQA EUROPA B.V. (Harding North)

For additional project summaries, locations and contact details, follow the link www.oilandgasvisionjobs.com/project-pathfinder

WORLD PROJECTS

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WORLD PROJECTS MAP

1

Iberdrola has signed an agreement with Svea Wind Offshore for the acquisition of a majority stake in eight offshore wind farms. Commissioning of the projects is planned for 2029 onwards and the wind farms are currently at early stage development. Six projects based offshore Gavleborg will have an overall capacity of 5.1GW and with the remaining two projects with a capacity of 3.9GW located off Oxelosund.

AUGUST 2020

The EIC delivers high-value market intelligence through its online energy project database, and via a global network of staff to provide qualified regional insight. Along with practical assistance and facilitation services, the EIC’s access to information keeps members one step ahead of the competition in a demanding global marketplace. The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally. The EIC is renowned for excellence in the provision of services that unlock opportunities for its members, helping the supply chain to win business across the globe.

WORLD PROJECTS SPONSORED BY

2

SWEDEN Svea Vind Offshore US$20bn

3

4

5

IRELAND Simple Blue Energy US$500mn

BRAZILPetrobras US$3.1bn

NORWAY - Equinor US$50mn

SAUDI ARABIA ACWA Power US$5bn

Simple Blue Energy has filed an application to carry out seabed investigations at the proposed project site.

Contracting activity continues at the development. Saipem has been awarded a $325 million contract to supply and install flowlines, jumpers and subsea structures. Keppel’s BrasFELS shipyard in Brazil has been awarded a contract by Modec for the fabrication two topside modules. Petrobras has launched a tender for flexible risers and associated equipment.

Okea has signed a deal to acquire Equinor’s 40% stake and operatorship of the field. Okea will pursue a lowdevelopment of Aurora as tie-in to Gjoa without further appraisal drilling.

Air Products has announced plans to build the hydrogen plant powered by 4GW of wind and solar power.

The developer will look to initially build a 100MW project. The gradual build out to 1,000MW is aimed at supporting local supply chain development.

www.ogvenergy.co.uk I August 2020

The transaction and potential change in operatorship are subject to approval by Norway’s Ministry of Petroleum & Energy.

The project is to be owned and developed

by ACWA Power, NEOM and Air Products.

ThyseenKrupp, Air Products and Haldor Topsoe technologies will be utilised at the facility.

WORLD PROJECTS

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03 17

1

2

6

5

9

7

8

3

6

MEXICO BHP US$11bn

SBM Offshore, TechnipFMC and McDermott are engaged in pre-FEED work to compete for the project’s EPC contract. BHP will select one or two pre-FEED contractors to proceed on FEED work early in 2021.

7

8

9

MYANMAR Woodside US$200mn

NIGERIA PTTGC US$10bn

INDIA ONGC US$1.5bn

Woodside is expected to wait until January 2021 to start drilling, despite the scheduled arrival of the drilling rig for the campaign arriving in November 2020.

PTTGC is currently in the process of seeking new potential partners following the withdrawal of Daelim Chemical USA from the project while working towards a final investment decision which is likely to be announced by the end of 2020 or early 2021.

Eleven groups have submitted pre-qualification offers to ONGC for the joint development of the KGOSN-2004/1 and GS-49/2 assets.

Transocean has agreed for Woodside to pay a reduced day rate of $125,000 for the Dhirubhai Deepwater KG2 drillship.

WORLD PROJECTS SPONSORED BY

Contenders for the consultancy work are expected to be shortlisted during August and September.

www.the-eic.com

18

CONTRACT AWARDS

CONTRACT AWARDS

Mooring specialist anchors seven figure contract A global marine services and mooring specialist has secured a seven-figure contract with an international drilling contractor in the Caribbean.

Rigmar Group CEO, Keith Nelson said: “Despite these difficult times our personnel are working hard with both customers and suppliers to meet tight deadlines in a very competitive market.

Interocean Marine Services Limited, a Rigmar Group company, was awarded an integrated contract for the design, procurement and installation of two tri-catenary mooring systems.

“We have a long-term relationship with this particular client, working around the world, providing our marine consultancy and engineering support for various complex offshore operations and we are grateful for their continued support. Our teams work hard to understand our clients’ needs and provide the best and most cost-effective solutions, which is critical to maintaining our long-standing client relationships.”

The work is already well underway. The design identified the mooring equipment, which was purchased on behalf of the client and shipped to the work site and a team of four marine and engineering personnel from Interocean’s Aberdeen headquarters are overseeing the installation and commissioning of the mooring systems in a challenging offshore environment.

Interocean is currently working across the globe with projects underway in the UK sector, the Mediterranean and Caspian Seas, the Middle East and Asia-Pacific regions.

www.ogvenergy.co.uk I August 2020

The Rigmar Group specialises in the provision of asset integrity, fabric maintenance and marine and survey services to both offshore and onshore energy and infrastructure sectors.

Founded in 2007, the Group is headquartered in Aberdeen, with 57 full time employees, supplemented by consultants and contractors around the world to add additional support to specific projects.

CONTRACT AWARDS

Issued on behalf of Rigmar Group (Holdings) Ltd

19

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CONTRACT AWARDS Petrofac secures EPCC contract in Kazakhstan greenfield and brownfield EPC projects, utilising its capabilities, footprint and infrastructure.

NCOC acts as the operator of the North Caspian Project, the first major offshore oil and gas development in Kazakhstan.

The company started oil production at the Kashagan field in 2016 and production has now reached 380,000 barrels per day.

Mani Rajapathy, Managing Director, Petrofac EPS East, said:

Petrofac’s Engineering & Production Services (EPS) division, in joint venture with Isker, a Kazakhstan company, has secured an engineering, procurement, construction, pre-commissioning and commissioning (EPCC) contract worth $135 million.

The contract is for new water treating facilities for North Caspian Operating Company (NCOC) in Atyrau, Kazakhstan.

The work scope for the 30-month project includes an inlet stream screening to remove debris, feed water tanks with oil skimmer and pumps, a clarifier system including flocculation, coagulation and oil skimmer, treated wastewater storage and pumps, sludge treatment and relative utilities.

The award of this project is in line with Petrofac EPS’s strategy to focus on and secure small

“Our portfolio continues to expand with this award, which demonstrates continued progress in our stated EPS strategy to grow the business through relatively small EPC contracts. This is a further award for Petrofac in Kazakhstan following our project management services contract with KPO and represents another important milestone as we focus on continued growth in-country and delivering EPC projects whilst working with local companies.”

Subsea 7 awarded renewables contract offshore Taiwan Subsea 7 announced the award of a sizeable(1) contract for the installation of the submarine cable system on an offshore wind farm project in Taiwan.

Project engineering will commence immediately at Seaway 7’s offices in Leer, Germany and in Taipei, Taiwan. Offshore activities are expected to commence in 2023.

The contract is subject to a final investment decision by the client and Subsea 7 will record the contract in backlog once that decision has been made.

At this time, no further details can be communicated for contractual reasons.

Maersk Drilling awarded jackup contract by Aker BP Maersk Drilling has secured an additional onewell contract from Aker BP, acting as operator of the Tambar license, for the low emission jackup rig Maersk Integrator, in direct continuation of its current contract.

The rig will move to the Tambar field offshore Norway to drill the K-2B development well, with work expected to commence in February 2021.

The contract has an estimated duration of 73 days and a contract value of approximately $18.5m.

Maersk Integrator is contracted under the terms of a framework agreement Maersk Drilling entered

www.ogvenergy.co.uk I August 2020

into with Aker BP in 2017 as part of the Aker BP Jackup Alliance, which also includes Halliburton.

“We are delighted to confirm that Maersk Integrator will be back in action for Aker BP in early 2021. Our alliance with Aker BP and Halliburton is enabling new ways of working as one team across the value chain, and we have most recently seen the results of this in the safe and highly efficient operation delivered by Maersk Integrator in a complex campaign on the Ula field. This increased efficiency also translates into a reduction of the CO2 emissions associated with drilling, which will be further enhanced by the upgrades currently being performed on Maersk Integrator,” said Morten Kelstrup, COO of Maersk Drilling.

CONTRACT AWARDS

21

Saipem bags $325 million through new pre-salt job with Petrobras Oilfield services provider Saipem has been awarded a contract by Petrobras for the installation of a rigid riser-based subsea system to serve the Búzios pre-salt project offshore Brazil.

The contract is worth approximately $325 million, Saipem said on Monday.

The installation will be done in water depths from 1537 to 2190 meters, offshore the state of Rio de Janeiro.

The Búzios-5 overall production system foresees the interconnection of 15 wells to the FPSO in two phases.

The project awarded to Saipem includes the engineering, procurement, construction and installation (EPCI) of the steel lazy wave risers (SLWR) and associated flowlines between all

wells and the FPSO. In particular, the scope of work includes five production and five injection risers and flowlines for a total length of 59 km, a 16 km-long gas export line to be connected to an existing pipeline, 11 rigid jumpers and 21 foundation subsea structures (risers and PLETs).

Saipem said it will use the FDS, its field development vessel, for all the subsea works.

Francesco Racheli, Chief Operating Officer of Saipem’s E&C Offshore Division, said: “Búzios is one of the world’s largest deepwater oil fields and it is very important for Saipem to contribute to such a significant project for Brazil, a country in which we have a longestablished presence and track record of successfully-executed projects”.

Sky-Futures wins multi-year global telecoms contract for drone-based tower surveys Sky-Futures Partners Ltd (an ICR company) has been awarded a four-year global framework contract for the provision of drone-based cell site surveys by a Scandinavian, multinational network and telecommunications company.

Under the contract, Sky-Futures will support the scope of work on a global scale, using its operational bases in the USA, Europe, Middle East and South East Asia, as well as leveraging its ongoing experience conducting drone based operations in 31 countries. The drone-based cell site survey service forms part of the global network build plan supporting the rapid growth in the development of the telecommunications network. As the network grows, so will the number of structures and therefore the requirement for cell site surveys.

Chris Blackford, Sky-Futures CEO, said: “Traditionally, conducting cell site surveys requires a team with several different skill sets and the need to climb the towers. With the introduction of drones, site surveys can now be

completed with a much smaller team, collecting high quality data more quickly and more safely.”

Once the data has been collected, Sky-Futures will upload the cell site data into AI (artificial intelligence) enabled cloud software to support the global network build programme.

Engineers can then make decisions using the 3D model tower data from a remote desktop without having to incur unnecessary site visits. This not only supports enhanced health and safety but helps reduce costs through improved efficiencies of the global network build programme.

Futures has seen since its acquisition by ICR in May 2019. Mr Blackford comments, “The contract win is an exciting opportunity to further enhance our position in the telecoms market and to add to our global footprint in supporting this leading telecommunications customer.”

Sky-Futures is already working with tower owners and operators providing cell site surveys and integrity inspections. Maintaining the health of these critical structures is crucial to ensuring smooth operations and reducing the risk of downtime.

With a well-established and respected reputation in the drone-based inspection and survey market, this contract win is another success in the accelerated growth that Sky-

Oceaneering wins connector supply contract for offshore Western Australia project Oceaneering International, Inc. (Oceaneering) announced that it has won a contract to provide a number of monobore diverless connectors for an offshore Western Australia project.

Connector works for applications such as gas lift, chemical injection, well stimulation, hydrate remediation, flooding and venting operations, acid injection, and scale squeeze.

Oceaneering will supply 3-inch M5 connectors, which will be used for Monoethylene Glycol (MEG) and Chemical Inhibitor (CI) service on the field subsea distribution system.

Nikunj Patel, Director of Engineering and Technology for Oceaneering, said: “We are thrilled to provide our high pressure, high flow ROV-flyable M5 connectors for this project located in Australian waters. The M5 is a versatile, compact, and cost-effective solution ideal for high flow MEG, CI, and other chemical delivery applications. With this win, we continue building our track record with the M5 connectors being used in projects worldwide.”

The 3-inch M5 Connector enables the intervention of subsea assets. This ROV-flyable, full bore connector features the Oceaneering® Grayloc® metal-to-metal sealing system and proven M-series latch mechanism. The M5

22

REGIONAL REVIEWS

REGIONAL REVIEWS ZONE SPONSORED BY

By Tsvetana Paraskova

Middle East Energy Review Major oil producers in the Middle East, grouped in the OPEC+ coalition, decided in the middle of July to ease their record production cuts of 9.7 million barrels per day (bpd) starting on 1 August.

At Craig International, procurement isn’t just about processes, products and numbers. We promote a culture of ownership among our people, who are trusted to get on with the job on your behalf. We’re proud of how we serve clients. We’re always looking for new ways to add value and routinely introduce new technological solutions to make service delivery even simpler, smoother, faster. When it comes to procurement, we get it. Adding value, innovation and efficiency at every turn in your supply chain.

The OPEC+ group noted improved market conditions and recovering global oil demand, but international lenders and rating agencies continue to warn that the COVID-19 economic crisis and the collapse in oil prices will weigh heavily on the economies and government budgets of the major oil exporters in the Middle Eastern region.

Barkindo said, echoing views of analysts that global oil demand will likely take more than a year to reach preCOVID levels, if at all.

OPEC+ eases output cuts but not rushing to boost oil exports

Despite fears of a second wave of the coronavirus and the possibility of new localised lockdowns, OPEC+ as a whole signalled it was pleased with the way it had managed the market after the brief oil price war in April.

The OPEC+ coalition of oil producers, led by OPEC’s biggest producer and the world’s largest oil exporter, Saudi Arabia, and by Russia, decided on 15 July – as widely expected – to ease the record collective cuts to 7.7 million bpd through the end of the year, seeing improving market conditions and compliance with the cuts.

The meeting of the Joint Ministerial Monitoring Committee (JMMC), co-chaired by Saudi Arabia and Russia, “observed that there were encouraging signs of improvement as economies around the world open up. While there could be localised or partial lockdowns re-imposed in some places, the recovery signs are clear, both in physical and futures markets.”

While the cuts are being eased to 7.7 million bpd from 1 August, the actual production reduction is expected to be deeper because the OPEC+ producers who have lagged in compliance – Iraq, Angola, Nigeria, and Kazakhstan – have promised to over-comply with their shares of the cuts in the third quarter to compensate for loose compliance in May and June.

The OPEC panels, the JMMC and the Joint Technical Committee (JTC) meeting that usually precedes it, will be meeting every month until the end of the year to take stock of the oil market and the trend in demand recovery.

As of the middle of July, OPEC was pleased to see that oil demand had bounced back from the lows of more than 20 million bpd in April, but demand is still expected to drop by 8.9 million bpd annually for the whole of 2020, OPEC Secretary General Mohammad Barkindo said at the JMMC video meeting.

“Given considerable uncertainties, the expected rebound in 2021 will be short of covering the lost demand this year and will not reach pre-crisis levels of 100 mb/d soon,”

www.ogvenergy.co.uk I August 2020

Despite fears of a second wave of the coronavirus, OPEC+ as a whole signalled it was pleased with the way it had managed the market after the brief oil price war in April.

“Although this is a cautious and gradual process, and there could be localised or partial lockdowns re-imposed in some places, the recovery signs are unmistakable, both in physical and futures markets,” Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, said at the JMMC meeting.

“As we move to the next phase of the agreement, the extra supply, resulting from the scheduled easing of the production cut, will be consumed as demand continues on its recovery path,” Prince Abdulaziz bin Salman said.

Despite the higher production resulting from the eased cuts, the world’s largest oil exporter pledged to keep its exports unchanged in August.

“I can tell you that in the Kingdom Saudi Arabia, due to the increase in demand from utilities and other sectors, as lockdowns ease, we estimate approximately 500,000 barrels per day of extra demand in August. So, despite a higher production target in August, there will be no change in our exports,” the minister noted.

Low Prices, Coronavirus Crisis Weigh on Mideast Economies While the biggest oil producers in the Middle East are withholding supply to the market, their economies are under pressure due to the lower exports, lower oil prices, and the impact of the coronavirus pandemic on economic activity in the non-oil sector.

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Middle East Middle East Cuts Oil & Gas Capex, FIDs The Middle East, like all other regions around the world, will see reduced investment in oil and gas projects, Wood Mackenzie said in a report at the end of June. According to WoodMac’s global upstream research team, capital expenditures (capex) in the Middle East in 2020 are expected to be US$16 billion lower than initial estimates, following the collapse in oil prices and global demand in the pandemic. In addition, Wood Mackenzie expects a sharp drop in imminent final investment decisions (FIDs) in the Middle Eastern region.

Abu Dhabi Strikes US$20.7 Billion Energy Infrastructure Deal

The low oil prices in April weighed heavily on the oil revenues of the oil producers in the Middle East. Case in point – the value of Saudi Arabia’s oil exports plunged by 65.4%, or by US$12.1 billion (45.3 billion Saudi riyals), year over year in April, data from Saudi Arabia’s General Authority of Statistics showed on 25 June. The value of Saudi oil exports plunged by 23.5% compared to March, the statistics office said.

The share of oil exports in total exports dropped to 64.7% in April 2020 from 77.4% in April 2019.

Combined oil revenues of the Middle East, North Africa, Afghanistan, and Pakistan Oil Exporters (MENAPOE) are set to decline by more than US$270 billion this year compared to 2019, the International Monetary Fund (IMF) said in its Regional Economic Outlook Update: Middle East and Central Asia in July.

While most of the market attention was focused on oil and the poor demand for natural gas in the pandemic, the Abu Dhabi National Oil Company (ADNOC) announced on 23 June one of the largest global energy infrastructure transactions in which infrastructure investors and operators and sovereign wealth and pension funds will invest in ADNOC gas pipeline assets valued at US$20.7 billion. A consortium of six investors consisting of Global Infrastructure Partners (GIP), Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities, and Snam will collectively buy a 49% stake in ADNOC Gas Pipeline Assets LLC, while ADNOC will retain the 51% majority stake.

“Today’s landmark investment signals continued strong interest in ADNOC’s low-risk, incomegenerating assets, and sets another benchmark for large-scale energy infrastructure investments in the UAE and the wider region,” said Dr. Sultan Al Jaber, UAE Minister of State and ADNOC Group CEO.

“Downward revisions in oil GDP reflect sharper-thananticipated drop in crude production; oil export receipts are now projected to decline by more than $270 billion in 2020 relative to 2019. Non-oil GDP in these economies has also been marked down as stay-at-home rules and other COVID-19 containment measures are causing larger-than-expected disruptions to the tourism, hospitality, transportation, and retail sectors,” the IMF noted.

MENA oil-exporting countries are now expected to see a 7.3% contraction in economy in 2020, a downward revision of 3.1 percentage points compared to IMF’s regional forecast from April. The IMF also revised down its estimates for economic growth in 2021 by 0.8 percentage points to 3.9%. These large downward revisions “reflect the 'double whammy' from oil price fluctuations (and supply cuts) and the pandemic-linked lockdowns,” the fund’s analysts said.

The six countries of the Gulf Cooperation Council (GCC) alone—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE)—are expected to see their cumulative government deficits swell to US$490 billion between 2020 and 2023, according to S&P Global Ratings.

www.spectisrobotics.com

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24

REGIONAL REVIEWS

By Tsvetana Paraskova

Europe

Energy Review

Oil & Gas Norway aims to offer 136 blocks for oil and gas exploration in the licensing round for less explored areas on its shelf, including 125 blocks in the Arctic Barents Sea that are currently not available for drilling, the Ministry of Petroleum and Energy said on 24 June.

The so-called 25th numbered licensing round – expected to be announced in the autumn of 2020 after consultation on the proposed areas – typically includes frontier parts of the Norwegian Continental Shelf (NCS). According to Norway’s oil ministry, it will be the frontier regions that are most likely to host large new discoveries.

Norway also announced in June the annual licensing round for oil and gas exploration in mature areas on its shelf, expanding the total acreage by 36 blocks west of the Norwegian Sea. “Even after decades of activity, there are still opportunities in these areas. Due to new technology and a multitude of new players, I believe we will see new discoveries in the areas available in this year's APA round,” Norwegian Minister of Petroleum and Energy Tina Bru said.

www.ogvenergy.co.uk I August 2020

Oil and gas discoveries, new licensing rounds in Norway, proposals for pathways to green recovery, and a number of renewable energy and hydrogen projects in the UK were the highlights of Europe’s energy news in the past month.

Equinor announced in early July a gas and condensate discovery at the Kvitebjørn field in the one of the most mature areas of the North Sea. Preliminary estimates show the proven reserves are between 3 and 10 million standard cubic metres of recoverable oil equivalent, corresponding to 19-63 million barrels of oil equivalent.

Aker BP and Pandion Energy submitted in June the plan for development and operation (PDO) for the Hod field—one of the first projects under the temporary changes in Norway’s petroleum tax system aimed at incentivising field development during the crisis.

Recoverable reserves at Hod are estimated at around 40 million barrels of oil equivalent, and the field will be developed with a normally unmanned installation remotely controlled from the Valhall field centre, with very low CO2 emissions due to power from shore.

Norway’s temporary tax relief package for the oil and gas industry is set to improve exploration and production companies’ short-term liquidity and reduce breakeven prices for future development projects by about 40% on average, Rystad Energy has estimated.

“After several tough years, the sun may "Even after decades finally be ready to ofshine activity, there are again on the UK offshore market,” Audun still opportunities in Martinsen, head of these areas... " oilfield services research at Rystad Energy

Aker Solutions said on 17 June it would spin off its wind and carbon capture businesses to shareholders and merge Aker Solutions ASA with Kværner ASA to create an optimised supplier company.

“Aker Solutions has developed technology and taken strong positions in markets for offshore wind and carbon capture, utilisation and storage,” said Aker Solutions chairman Øyvind Eriksen. “However, it has become increasingly clear that these businesses represent value creation opportunities in a world transitioning to green solutions at accelerated speed and have more potential as stand-alone companies than as an integrated part of an oil service business.”

Europe

Green Recovery and Alternative Energy The REA, the UK’s largest trade association for renewable energy and clean technologies, published a report in early July, calling on the government to work for a green recovery. The REA vision for a clean future and net zero by 2050 rests on four pillars— decarbonising power & homes, decarbonising heat, decarbonising transport, and moving to a circular economy, the REA said.

According to the association, low-carbon homes and tax reforms alone would create 176,000 new jobs, save consumers £270 on bills annually, and generate a net value of £7.5 billion to the UK economy.

“At the coldest time of year, wind and renewables rewrote the record books right across the board, keeping our nation powered up when we need it most. This is the clean energy transition written very large indeed.”

In wind energy, European majors Total and Shell have joined the UK’s floating wind Centre of Excellence which will focus on all areas of floating wind activity in the UK across four key areas – technology development, supply chain and operations, development and consent, and delivering net zero.

Hydrogen could play a prominent role in the UK’s net zero ambitions, a report from Aurora Energy Research showed. The so-called blue hydrogen – produced from natural gas after reforming to remove carbon content – and green hydrogen from electrolysis are expected to play an important role, providing up to 480 TWh of hydrogen, or around 45% of Britain’s final energy demand by 2050, the report says.

RenewableUK, for its part, said that if the Government takes steps to maximise the economic benefits of renewable energy, the 2021 auctions for contracts to generate clean power can secure over £20 billion of investment and create 12,000 jobs, mainly in the construction sector.

The EU also has plans for hydrogen as part of its goals to achieve net zero as part of the European Green Deal. The EU unveiled in early July “a hydrogen strategy for a climate-neutral Europe,” setting out a vision of how the EU can turn clean hydrogen into a viable solution to decarbonise different sectors over time, installing at least 6 GW of renewable hydrogen electrolysers in the EU by 2024 and 40 GW of renewable hydrogen electrolysers by 2030.

Back to the UK, the Scottish Scottish Government granted consent for the High Constellation Wind Farm in Argyll & Bute with planned capacity of 50 MW and 10 turbines.

Construction is expected to begin in 2021.

In Scotland, Apollo, Blackfish Engineering Design, Nova Innovation, and Quoceant have secured funding of £1.4 million from Wave Energy Scotland for projects that aim to bring down the cost of wave power.

In Wales, Marine Energy Wales found that £123.7 million has been invested into the Welsh economy from wave energy. Investments have increased by £27.5 million over the last year, and by £78.3 million since 2015.

In solar power, Macquarie’s Green Investment Group (GIG) and Enso Energy formed a joint venture to develop an extensive pipeline of solar and battery projects in the UK. The joint venture targets to develop an initial 1 GW of subsidy-free solar capacity, one of the largest portfolios of its kind in the UK.

In the first quarter of 2020, the share of renewables of UK electricity generation increased to a record quarterly high of 47.0%, up from 35.9% in the first quarter of 2019, reflecting increased capacity and high load factors for wind technologies, the government said in its quarterly energy trends report in June.

Commenting on the record high renewables and wind power generation in the UK, RenewableUK’s Head of Policy and Regulation, Rebecca Williams, said:

25

Trade bodies the UK Hydrogen and Fuel Cell Association, the Midlands Hydrogen and Fuel Cell Network, the British Hydropower Association, HyCymru (Wales Hydrogen Trade Association), RenewableUK, and Hydrogen East called on the UK government to lay the foundations for a UK-wide hydrogen strategy for a clear, strategic plan to unlock private funding in hydrogen technologies and manufacturing across the country, driving growth and generating hundreds of thousands of green jobs.

Global engineering and consulting company Wood said on 15 July it had successfully delivered preliminary engineering design services for gas network operator SGN’s candidate site at Machrihanish, on the west coast of Scotland, as part of the Hydrogen 100 (H100) project which will initially aim to supply energy to homes in Fife, Scotland.

Equinor leads the development of one of the UK’s – and the world’s – first at-scale facilities to produce hydrogen from natural gas in combination with carbon capture and storage (CCS). The project, Hydrogen to Humber Saltend (H2H Saltend), provides the beginnings of a decarbonised industrial cluster in the Humber region, the UK’s largest by emissions, Equinor says.

Lightsource bp said in mid-July it had recently secured planning approval for a new solar farm near Castle Eden in Durham, UK. The Hulam Solar Farm will have a power capacity of 50 MW and will provide carbon emission savings of 16,040 tonnes every year, equivalent to taking 3,412 cars off the roads.

Vattenfall announced investments and projects in South West Scotland and Norfolk. The Swedish company proposed two new onshore wind farms in South West Scotland, saying that “New onshore wind is the cheapest way to generate electricity, and Vattenfall’s new proposals for South West Scotland could also make a significant contribution to Scotland’s net zero ambitions.”

Vattenfall was also awarded development consent for the Norfolk Vanguard Offshore Wind Farm in England, which will generate 1.8 GW of clean electricity, enough to power almost two million homes each year while saving over three million tonnes of carbon dioxide emissions – the same as taking around 1.6 million cars off the road.

The largest photovoltaic park in Italy, a 103-MW plant near Foggia, southern Italy, was connected to the grid at the end of June, the developer European Energy said.

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26

REGIONAL REVIEWS

U.S.

By Loren Steffy

Across North America,

producers begin to

ease toward normal, but uncertainty looms

A

s July wore on, it looked as if prices had plateaued. With new coronarvirus cases spiking across the U.S., companies tried to anticipate what the prospect of new lockdowns might mean for energy demand heading into the fall. At the current prices, even the most optimistic companies see few opportunities for more than incremental steps toward normal, with little chance for growth or increased spending.

In Canada, companies such as Bonterra Energy, which shuttered many of its higher-cost wells, stood ready to bring them back online as soon as the price justified it. Bonterra is a conventional producer. Heavy oil, meanwhile, was fetching prices almost $10 a barrel less than WTI, but some oilsands outfits began restarting production anyway. MEG Energy has hedged its bets and pre-sold some of the production at its oilsands facility at fixed prices.

In West Texas, one of the biggest producers, Diamondback Energy, restarted production at almost all its wells after shutting most of them in during the early days of the pandemic.

In May, it cut production by about 9,000 barrels a day, but by mid-July it has restored most of that. Diamondback said it drilled 58 horizonal wells and completed 15 in the second quarter.

Meanwhile, some of the U.S. producers wrote down tens of billions of dollars in assets. A recent study by the consulting firm Deloitte found that U.S. shale companies expected to write down about $300 billion worth of assets this year, much of it during the second quarter.

At the same time, as default risks rise, some banks have started selling off loans and credit lines that they extended to oil and gas companies. For example, Hancock Whitney, a regional bank in Gulfport, Mississippi, with branches in Texas and Louisiana that make energy loans, said it would sell almost $500 million worth of its energy portfolio to Los Angeles-based Oaktree Capital Management.

Hancock Whitney recorded a $160.1 million pre-tax loss on the sale.

The pullback from banks comes at a critical time for energy companies, who increasingly have relied on financial institutions to fund operations and new drilling as investment capital has dried up. Investors have soured on the energy sector after years of poor returns despite the shale drilling boom.

www.ogvenergy.co.uk I August 2020

As the lockdowns from COVID-19 began easing across the North America, a cautious optimism began to creep across the Oil Patch. West Texas Intermediate crude, the U.S. benchmark that briefly turned negative at the end of April, rebounded to about $40 a barrel. For most companies, the price was still too low to justify investment in new drilling, but oil producers waited anxiously to see if it might keep inching higher.

While banks worked with producers during the bust in 2014, continuing to lend and helping oil companies restructure debt, the pandemic has prompted a second bust in just six years, and banks now seem less willing to work with companies through the current crisis.

Several smaller producers, including Antero Resources Corp., Centennial Resource Development and Oasis Petroleum, have seen their credit lines slashed in recent months. U.S. banks hold about $650 billion in energy company loans, which account for 3.5% of all bank assets nationwide.

Services joined the growing list of industry bankruptcies in July and has said it may have to layoff 537 people statewide if it can’t find a source of financing. The news came on top of another 446 job cuts from around the industry the same week. Schlumberger, which posted its weakest quarterly sales in 14 years, said it would slash one-fifth of its workforce, or about 21,000 workers. As of early July, the COVID-19 pandemic had resulted in about 94,000 jobs lost in oilfield services alone, according to the Petroleum Equipment and Services Association.

While oil and gas producers continue to struggle, renewables are faring somewhat better. As With demand and prices weak, and drilling Congress debates the next COVID-related activity slowing, some companies are looking stimulus package, seven Republican senators for deals. In late July, Chevron agreed to buy — including Lisa Murkowski, who represents oilHouston-based Noble Energy for $13 billion, rich Alaska — called for a range of clean energy prompting speculation among some analysts incentives to be included in the aid package. The that the long-awaited merger boom may proposal includes extending soon-to-expire tax finally be underway. Given the weak price credits as well as cash advances for renewable environment and uncertain demand energy projects. (A number of large outlook from the COVID-19 companies, including Oxy and Duke pandemic, larger companies with Energy, have asked for similar deeper financial pockets may benefits that would allow them Renewables are be better able to endure the to cash out future tax credits also playing a key role likely turbulence of the next immediately.) The moves few years. are designed to provide the in the growing number industry with much-needed of small power grids Chevron settled on Noble after liquidity and get clean energy being deployed around being outbid by Occidental workers furloughed as a result the U.S. Petroleum for Anadarko of the pandemic back to work.

Petroleum last year. In that deal, Chevron offered $50 billion, only Renewables are also playing a key to be topped by Oxy’s $57 billion bid. role in the growing number of small Oxy, however, has struggled to pay off power grids being deployed around the debt from the transaction since then. The Noble U.S. A new Wood Mackenzie study found that deal, if it’s approved by shareholders, would give the U.S. installed a record 546 “microgrids” that Chevron 92,000 additional acres in the Permian can distribute power independent of traditional Basin in West Texas, 35,000 in the Eagle Ford utilities. The grids have a variety of uses, Shale in South Texas, some 336,000 acres in including providing emergency power in the Colorado and offshore assets in West Africa, event of outages. and the eastern Mediterranean off the coasts of Israel and Cyprus.

The consultancy predicts that as the number of microgrids increases, they will rely more on At the moment, however, additional acreage in renewable power sources, including wind, solar U.S. shale basins may not be much help. The and hydropower, accounting for 35% of the coronavirus has hit West Texas particularly hard, installed capacity in five years. as oil demand shrank by more than 20% this spring. By early July, the rig count in the Permian In the meantime, many producers across North Basin had fallen to just 125. In mid-March, America are hoping that a recent prediction more than 400 rigs were working in the region. from the International Energy Association that Unemployment soared to 13.4% in May from the worst effects of COVID-19 on oil demand 2.1% a year earlier. have passed, proves to be true. From northern Canada to South Texas, oil executives are Layoffs have stretched across the industry. waiting, poised to open the taps at the first sign Houston-based oilfield services company BJ of certainty.

Australia

NEW FEATURE OGV FORUMS

27

Help OGV Energy to support the energy industries in creating a knowledge pool that is invaluable, and can save hours, days or even weeks of delay when faced with a unique situation.

With the involvement of you and the industry we can provide deliver this information in an easy to source platform free for everyone.

With over 350,000 industry experts visiting on a monthly basis, let us support you in putting your questions to the industry and the experts.

What options are available for offshore ATEX environments?

Asked by John

G’day

First job offshore. Where, when, who for and what was your job?

Asked by Derek

from Perth!

As all the training centres are closed, how do you think the industry will manage the influx of employees flocking to training centres to renew expired certification?

“The View from Down Under”

By Andy Hogan

Asked by Alan As with the rest of the planet, COVID has had a massive impact on the ANZ region, up to now Australia and New Zealand have done very well in terms of low infection numbers, however we are watching events unfold in Melbourne with concern.

Onshore and Offshore rig activity has taken a severe blow, 2020 is pretty much a write off. Rig count had been slowly recovering from the low point early in 2017 when just 2 rigs were active off ANZ coasts, forecasts from end 2019 showed up to 8 MODUs working by Q3 2020. That has now been reduced to between 2 to 3 units.

There is a possibility that ANZ offshore rig count could get up to 7 active units by mid2021 with the potential for double figures to be reached by mid-2022.

As with everything else, much will depend on all us playing our part in preventing the virus spreading.

Stay Safe!

Working in the oilfield requires, in addition to a strong sense of humour, much resilience and this is proving to be the case with many operators and their business partners at advanced stages of planning to resume operations from Q3 this year and into 2021. One of the jackups stacked over Q2 due to COVID has resumed operations off Victoria and a supermajor is forging ahead with plans to drill a key exploration well off the NW coast starting in October.

Platform drilling is taking place in New Zealand and there are signs of appetite for a MODU to return there over the second half of 2021.

REGIONAIL REVIEWS sponsored by

“The View from Down Under” is brought to you by: Networked Energy Consulting Pty Ltd, based in Perth, WA, Australia

A question regarding air lift: I have a ridgid pipe (dredge pipe) from the surface down to the bottom at approx 150 m depth. What happens if I insert the pressurised air at, let say, 25 meters depth!?

Will I get an equivalent suction down at the bottom, 150 m depth, as if the pipe would have been just 25 meter down and the air insert also at 25 meters!?

I have worked a lot with air lifts at shallow waters so I know the principle. People though, who claims they know, tells me it does not work, and I can’t understand why it should not work!?

Asked by Peter Lindberg

Join the conversation www.oilandgasvision jobs.com/forum

28

TRAINING FOCUS

By Tsvetana Paraskova

TRAINING & UPSKILLING

COULD HELP UK OFFSHORE INDUSTRY RECOVER

The health, economic, and oil price crises during the coronavirus pandemic hit the UK offshore oil and gas industry just as it had recovered from the previous oil price collapse in 2015-2016.

Operators had returned investing in the UK North Sea and the supply chain had started to feel the positive effects of renewed optimism after the 2016 oil price lows.

But this year’s COVID-19 ‘black swan’ upended all forecasts about the global economy and the oil and gas industry and is likely to alter people’s behaviour and mobility patterns for months and years to come, potentially changing the trajectory of global oil demand in the long term.

The UK offshore oil and gas industry and its supply chain were hit hard by the pandemic and the subsequent crash in global oil demand and oil prices.

Industry estimates that around 7,500 jobs had been made redundant by early July, after warning in late April that the sector could lose up to 30,000 jobs within 18 months if market conditions persist.

Between April and July, oil prices doubled to around $40 per barrel, but operators have slashed capital expenditures (capex) for this year. There is high uncertainty about what would next year bring for the oil and gas industry.

The workforce in the UK offshore industry has suffered from this year’s collapse. Yet, going forward, the sector and its employment numbers could benefit from new technology and a green recovery, through upskilling the existing workforce and training new recruits to be ready for a more digital future of offshore operations.

Even before the current crisis, OPITO, the global not-forprofit skills body for the energy industry, said in 2019 that advances in technology, internationalisation, and the transition to a lower-carbon future were accelerating demands for changing skills in the oil and gas sector.

The UK offshore industry will need technology-savvy, multi-skilled, and increasingly flexible workforce as the sector changes toward more digitally-enabled operations.

Roles in data science and automation, which do not currently exist, will be needed in the coming years, OPITO said.

“New training methods such as simulation and augmented reality are becoming the preferred learning methods,” OPITO said in a report looking to 2025.

After the COVID-19 crisis, the opportunity in the UK offshore sector lies in a sector deal with the government and employing more people in more hydrogen, floating wind, and carbon capture and storage (CCS) projects that could help the UK and the UK offshore basin on their road to net zero by 2050.

www.ogvenergy.co.uk I August 2020

TRAINING FOCUS OGUK, the leading representative body for the UK’s offshore oil and gas industry, warned in its Business Outlook 2020: Activity and Supply Chain report that up to 30,000 jobs could be lost over the next 12–18 months, if action to help the sector weather this storm is not successful.

“Our report proposes a three-stage framework to address immediate needs, spur the recovery and accelerate the transition to a net-zero future. This will require us to work closely with the UK and Scottish governments to make the most of the supply chain capability developed over recent decades. At the same time we have to ensure this continues to be a competitive basin attracting the investment we need in oil and gas to meet the UK’s current energy needs, while working together to deliver its net zero target,” OGUK Chief Executive imperative that the Deirdre Michie said.

“It is government works closely with industry to minimise the impact on employment, these are highly skilled roles which will be needed for years to come,” OGUK’s report reads.

By early July, 7,500 jobs in the UK oil and gas sector had been made redundant, Michie told a hearing of the Scottish Affairs Committee on 9 July.

The acceleration to net zero and the plans for a green recovery are opportunities for the workforce in the offshore sector to contribute to those goals, she said.

“The skills that we have in the industry today will be crucial to how we make sure that this industry decarbonises its own activities and then looks to support the economy and the country move to managing its emissions with stimulating carbon capture and storage at scale and, also, the hydrogen economy,” Michie said.

The sector is now dealing with the so-called ‘protect phase’ – to protect the health of offshore workers. Then comes the recovery phase, and then the third phase of acceleration toward net zero, she noted.

In June, OGUK called on the policy makers to not leave behind the energy communities in the green recovery plans.

RGU Drilling simulator

“We can’t afford for communities like the North East of Scotland or the East of England to be left behind. We urgently need a green recovery which enables our industry to meet as much of the UK’s oil and gas demand from domestic resources while developing the critical solutions which will help reduce emissions in other industries and wider society.

This is the fair, sustainable and inclusive transition which will allow the UK to meet its climate ambitions in a way which supports jobs, skills and energy communities,” Michie said.

The offshore industry is going through one of the worst downturns in recent memory, in which the immediate impact of this year’s oil and gas price plunge is greater than in the previous crash. The supply chain is again under stress to stay afloat while operators slash investments and defer projects.

But the skills in the industry, together with new skills in technology and data science areas, will help the sector when oil and gas prices recover.

The offshore experience and the supply chain shifting more business to renewable energy projects, hydrogen facilities, and carbon capture and storage projects could also help the UK energy industry and the UK as a whole to accelerate its efforts to become a net-zero economy by 2050.

In view of these prospects, training and upskillng of the workforce will be crucial to ensure that the offshore industry is well-prepared for the phases that would follow the immediate ‘protect phase’—recovery and acceleration of the energy transition.

The skills of the workers in the offshore sector and the future skills that employees could gain from training and upskilling could help meet the workforce demands of the green recovery and increased technology use in the energy sector.

3T Drilling Simuolator

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TRAINING FOCUS

Transforming global training with

‘Transform’ August sees the launch of the world’s most technologically advanced training platform, 3T Transform, and it is already making its mark on the global energy sector.

P

art of the 3T Energy Group, Transform, offers state-of-the-art software and learning technology to revolutionise the way companies manage and develop their workforces.

The new company - forged from AIS Training’s existing, highly successful technology business and virtual reality specialist, NeutronVR - already boasts more than 250k global users, with many of the biggest names in the oil and gas industry buying into its cutting-edge solutions.

As well as virtual reality training programmes, Transform’s products include mobile phone apps, augmented reality learning, live and pre-recorded remote learning, e-learning and specialist simulator technology, designed

by Drilling Systems. All of this technology connects with world-leading, cloudbased training, learning and competency management software, to allow companies to track the training and competence of teams across multiple locations.

Transform has a strong pedigree. It is the fourth company in the 3T Energy Group portfolio, alongside Survivex, AIS Training and Drilling Systems and augments the Group’s offering into a ‘one stop shop’ for workforce management and development.

Head of marketing at Transform, Richie Acheampong, explains Transform’s approach: “In the current climate oil and gas businesses are looking to make savings and efficiencies wherever possible but also need to maintain the highest levels of safety.

“That’s not an easy balance. Many training managers are bogged down with paperwork and struggling to get clear visibility of personnel skillsets and competencies, along with certificate expiry dates. There’s also the problem of skillsfade. According to the famous ‘Forgetting Curve’ scientific study by Herman Ebbinghaus, after seven days we forget up to 90% of what we’ve learnt if it’s not reinforced.

“For the oil and gas industry where safety skills are critical, this can be an issue. It’s crucial that workers absorb information and retain it over time. Skills should always be fresh and current.

“Technology provides the answer and we’ve worked closely with the industry to ensure that Transform offers wide-ranging, tailored solutions to address the challenges. Transform’s products can help companies cut out the paperwork, simplify the entire training process and provide engaging learning, at the same time as gathering considerable workforce intelligence and allowing clear visibility of operational performance by team, location or project.

“Our platform is module-based so that companies can pick and choose modules which meet their needs, opt for the entire end-to-end system or add on additional modules as and when required.

Companies can also import their own content or access Transform’s generic safety training programmes. This gives enormous flexibility – something we know our clients want.”

Maximise efficiencies, reduce costs The technology behind Transform is truly ground-breaking. Its award-winning software is capable of managing every aspect of a company’s training management and course booking process. Scalable to any size workforce from 1 to 5,000+, the system substantially reduces the amount of time and cost involved in managing competencies.

As well as allowing instant online course bookings, it provides worldwide mobile enabled access in realtime to skills records and training information. Individuals’ current certificates are stored online and the system sends automatic alerts to ensure critical certificates never expire. Meanwhile the system forecasts budgetary demands and also provides a training matrix for every individual, mapping job roles against skills and training requirements. This allows self-funders and companies alike to view career progression routes and core skills and training needed for every role. Skills and performance gaps are easily identified and can be filled using Transform’s immersive learning tools ensuring ‘job ready’ personnel.

Transform’s training management software is being used by a long list of well-known oil and gas companies including Bilfinger Salamis, Wood and Well-Safe amongst others, who all have training management contracts in place with the 3T Energy Group.

Richie Acheampong adds: “Thanks to Transform, one of our clients has been able to significantly reduce their training administration resource. Another has seen cost reductions of more than 18% on course bookings alone. These are huge efficiencies and demonstrate the significant impact Transform can make to a business.”

www.ogvenergy.co.uk I August 2020

“In the current climate oil and gas businesses are looking to make savings and efficiencies wherever possible."

TRAINING FOCUS Transform in action One company benefiting from Transform’s expertise is Saudi Aramco Nabors Drilling (SANAD).

SANAD wanted an engaging way to refresh skills and improve safety for its personnel working on land-based drilling rigs in Saudi Arabia. In an industry-first, Transform developed a virtual reality training programme in hazard awareness, which automatically linked to a custom-built competency management programme.

Several virtual reality scenarios were developed

by Transform covering procedures for shut-down, working at height and working on the drill floor.

SANAD’s personnel then went through these health and safety processes and procedures within the virtual programmes and were able to experience the consequences when correct procedures weren’t followed. Realistic graphics showed tragic outcomes such as explosions, suffocations and critical accidents.

Gaming inspired learning As well as the development of industry-leading software, the Transform team has a strong background in the gaming industry and is using this expertise to develop effective, technologyled learning tools.

One of these tools is the R3 ground-breaking mobile app which uses artificial intelligence, lively graphics and the addictive and competitive qualities of gaming to embed learning.

This app uses an extremely simple premise of a two-minute quiz-based ‘work-out’ for staff to complete every morning on a mobile phone to improve knowledge and embed critical information relating to job roles.

The results of this training were then automatically uploaded to a custom-built competency management system, which can be accessed in real-time remotely anywhere in the world, providing instant insight into employee performance, competency standards and skills’ gaps.

Richie Acheampong said: “Virtual reality creates an immersive learning environment which is unrivalled in terms of memory retention. By making mistakes in the virtual world you simply don’t make them in the real one! Linking the results of this training to a competency management system was an industryfirst and is just one example of the innovative approach we are taking to workforce development.”

Coy Wilcox, from Saudi Aramco Nabors Drilling, said: “We worked very closely with the 3T Energy Group to develop our revolutionary new training programme, which links to a custom-made

31

competency management system for the first time. This platform allows us to gather a wealth of information on individual performance which wouldn’t be possible with any other training method. As well as allowing us to track the progress of our training, the system gives wider insight into how well procedures are being followed and understood and enables us to make fact-based decisions on future training. This will ultimately assure the highest levels of safety across our assets.”

End to end training SANAD’s experience demonstrates the end-to-end holistic approach Transform offers.

Covering every stage of the workforce management journey, Transform’s module-based solutions begin at pre-operational phase and carry through to mobilisation, ongoing operations and continuous workforce development providing invaluable business intelligence and data along the way.

Richie Acheampong concludes: “The way people use technology in their everyday lives has changed beyond all recognition in the last decade. Transform’s connected technology-driven training and management solutions aim to achieve the same radical transformation for workforce management.

“Our technology will take a company’s new recruits and develop them into fully competent, highly effective personnel who continuously develop, with software to manage and monitor every step of this process.

“We have ambitious plans to further develop and grow the 3T Transform platform to add further value for our clients and will be unveiling an innovative new training marketplace concept in the next few weeks.”

The ‘work-out quiz’ uses a limited range of topics to maximise knowledge retention and applies artificial intelligence to ensure the user is tested more rigorously in subject areas where they are weak. The scores are automatically added to a company leader-board to harness competitiveness as a motivator for learning.

Instead of a chore, the app makes training fun and an on-going activity to help with memory retention.

Richie Acheampong explains: “Millennials have been brought up with technology and it’s second nature to them. Traditional training methods are no longer going to suffice for effective workplace learning. Transform solutions such as our app harness the power of video game technology to engage people and enables businesses to impart highly targeted, critical information in a fun way. This ultimately creates competent, knowledgeable staff who are equipped to deliver the highest quality service to customers.”

To find out more about 3T Transform and how it can help transform your workforce development visit www.3t-transform.com/sectors/energy-sector

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TRAINING FOCUS

Combining safety & technology TO STRENGTHEN INDUSTRY An Aberdeen company has invested more than £500,000 in state-of-the-art simulators dedicated to improving the safety and wellbeing of lifeboat coxswains.

Established in 2013, SAFER Training provides customers with a wide range of tailored services and products that improve the quality, consistency and rigour of competence development, learning content and training delivery – whilst adhering to best practice and international accreditations and standards.

Led by managing director Ian McMillin and directors Jason Hall, Andy Reid, SAFER Training is strategically located in Dyce, Aberdeen and works closely with operators in the oil & gas and maritime sectors to provide essential training and consultancy services related to health, safety, and environmental areas.

Working in partnership with Canadian firm Virtual Marine, the technology allows for more realistic lifeboat training for both offshore and maritime workforces.

Immersive motion simulator and controls

Consulting with industry, it was clear we needed to invest in a second fully immersive, motion enabled (Free Fall) simulator to in help reduce risk by improving workers’ overall competency in a controlled environment. Using the simulators, coxswains can navigate diverse scenarios – which mimic offshore conditions – whilst gaining valuable practical experience without running the risk of injury to the lifeboat operators.

SAFER Training’s lifeboat simulators are approved by DNV-GL and industry standards body (OPITO) to deliver Offshore Lifeboat Coxswain Further Training (Twin Fall and Free Fall) as well as being recognised by the International Maritime Organisation’s STCW and MODU Codes.

Working in partnership with Canadian firm Virtual Marine, the technology allows for more realistic lifeboat training for both offshore and maritime workforces; meaning employees can be better prepared for emergency evacuation situations.

Lifeboat Coxswains are exposed to a variety of training outcomes – from time of day and various sea states to varied weather conditions and emergency evacuations – which enable them to improve specific boat handling skills including pre-launch inspections, communications, launching procedures and towing and pacing other vessels under realistic scenarios that the coxswains potentially can encounter offshore.

SAFER Training also offers a desktop simulation model, which is ideal for workplace competence affording repetitive learning and skills development at the user’s own pace at their place of work.

www.ogvenergy.co.uk I August 2020

Desktop simulator unit

Lifeboat simulation provides Coxswains with enhanced confidence and increased competence to respond to any emergency, and offers the following key advantages over conventional training: • Allows Coxswains to practice plausible emergency situations.

• Allows Coxswains to practice at night, and in varied weather conditions.

• Allows Coxswains to practice in heavy sea state conditions.

• Provides practice on recognizing and dealing with hazards and faults.

• Offers repeatable and consistent training with more hands-on training • Offers graduated levels of training, while learning from experience.

• Reduces the risks to both Coxswains and boats.

TRAINING FOCUS

Immersive motion simulator cabin

Additionally, by adopting the use of simulation there are no constraints as to where or when we can train in a risk-free environment resulting in improved safety for delegates and them having more time at the helm and the advantage of being able to practice various manoeuvres that they cannot normally practice during conventional methods of training due to the inherent risks.

Welcoming the new investment, Andy Reid commented: “In recent years there has been greater focus on competence and maintenance checks when it comes to coxswains and the lifesaving appliances the coxswains are being asked to operate in the event of emergency evacuation from an installation or vessel, which makes our company’s focus on critical safety training more important than ever.

Immersive simulator cabin

Andy Reid added: “Despite an extremely challenging year for the entire industry, we’re looking forward to entering a period of sustained growth; driven by the new simulators both in the UK and internationally and with experience of completing projects in over 45 countries around the world – our team is well-placed to take advantage of these opportunities as they present themselves.”

“Not only does this fully immersive experience give individuals a better grasp of all potential circumstances as though they were in a lifeboat, it equips them with the knowledge and skills to react accordingly when they are in a live situation.”

Immersive simulator controls

For more information, please visit: www.safer-training.com

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TRAINING FOCUS

By Mike Adams, co-founder, Norwell EDGE

Companies turn to digital training to deliver efficient operations

The persistent threat of rolling lockdown measures and long-term social distancing is forcing the oil and gas sector to rethink how it provides technical training to its teams around the globe.

Companies are under increasing pressure to find a sustainable and cost-effective solution to retaining and improving knowledge and skills in preparation for the sector’s recovery. With teams currently either furloughed or all but key workers working from home, the industry is increasingly embracing digital training.

Combining different learning techniques also improves learner motivation and increases the likelihood that the user will stay the course.

Online learning provides organisations with the flexibility to scale-up tailored training programmes from small, regional teams to a global scale without the additional costs of travel and accommodation. It can be undertaken to fit in around operational requirements while training can also be audited to identify further competency gaps as well as strengths. Not only can employers track which modules have been completed but they can also monitor how long a learner has spent on a module, how many question attempts were made, and how results compare across an organisation.

But what sets digital training apart from the traditional classroom-based approach is its blended, continuous approach. In-person training is often designed as an ad-hoc, full day of training which has been proven to be ineffective at ensuring long term knowledge retention. Research has shown that while approximately 70% of all new knowledge is lost within the first 24 hours, eLearning can boost this retention by 60%.

A digital approach provides on-going, bite-sized content using a mix of mediums such as animations, quizzes, videos, and 3D scenarios. By sharing training content in different ways, information is repeated, reinforced, and remembered. This “spaced learning” approach has been proven to boost knowledge retention by more than 50%.

The gamification of training is also transforming e-learning with elements from the cutting-edge gaming industry now being leveraged to supercharge the learning experience. Norwell EDGE has recently launched a series of 3D user-controlled training scenarios that align with our online modules. These enable learners to apply their new skills and knowledge in a virtual wellsite environment. This allows people to fail safely.

Combining different learning techniques also improves learner motivation and increases the likelihood that they will stay the course. Training becomes fun and interesting rather than being a chore, or something that must be completed simply to tick a box.

Norwell EDGE was developed with flexibility in mind. Our click and mix modules allow organisations and individuals to build their own training programme to meet their learning needs while bite-sized content avoids information overload. All content is aligned with Oil and Gas UK’s wells competency guidelines to support our global industry in the drive to improve skills and safe operations.

Training remains one area where our industry has been slow to embrace digital transformation. But as the pandemic accelerates digitalisation, companies are increasingly recognising that a modern approach to training is needed to ensure that as they move forward their personnel continue to develop capability, boost operational efficiency, and drive up safety standards.

www.ogvenergy.co.uk I August 2020

TRAINING FOCUS

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OGV Inspire deliver first training contract to Siemens

OGV Energy have successfully delivered their first “OGV Inspire” training program which was established to help address the skills shortage within the energy industry.

Three days of interactive online training on Reliability Centered Maintenance was delivered to 25 people from Siemens locations all over the world including the Philippines, India, Germany, Norway, Spain, UK and USA. As part of the flexible and tailored training approach available from “OGV Inspire” and in partnership with Matthew Laskaj at Project Engineering Management Ltd, an online program in Reliability Centred Maintenance (RCM) methodology was agreed and delivered within a week from first contact with the client.

The brief from Siemens was to combine existing RCM courses into one 3-day course to be delivered online to a team of maintenance and reliability professionals of varying levels of experience in multiple locations and time zones.

Learning outcomes for the course included: • • • •

Traditional maintenance strategies overview Asset criticality and risk mitigation including FMEA Reliability centered maintenance processes Implementing RCM

“In order that the recipients could get the most out of the course, I had regular discussions with the Siemens engineers throughout the training days to incorporate Siemens content into the sessions to provide real examples that were specifically relevant to their business operations.

Siemens engineers even delivered portions themselves describing examples of when they have used the process”.

The integrated approach of combining theoretical content alongside examples from Matthew’s experience, as well as incorporating the customers own process and real-life projects, was key to the successful delivery of the program.

Thomas Wiesner, Asset Performance Manager for Siemens commented: “The RCM introductory training by the facilitator was consistently high quality. I feel that the techniques used and the slides were very good.

Matthew was very flexible to adjust to the needs of the trainees and to the challenges to provide this online training on very short notice. The examples out of real life were very helpful. Thanks a lot!”

“OGV Inspire” are delighted to have provided this program to such a successful and progressive organisation as Siemens and are looking forward to being able to help more organisations within the Energy Sector in the future.

Other courses are available through the “OGV Inspire” brand and all can be delivered at the company premises or online as a ‘Live’ virtual program and tailored to suit your needs.

Current courses include, but are not limited to: • • • • • •

How to develop a digital strategy for your business Maintenance optimisation techniques Reliability Centered Maintenance Root cause analysis and failure investigation Additive Manufacturing for business Project Management Fundamentals

Matt Laskaj commented: “The Energy sector currently faces some of the biggest challenges in its history and it is critical that the workforce is able to access high quality training in a format that is flexible, engaging and Covid-friendly, in order to ensure the competence of its workforce and success of their future projects, which is why we are so proud to have achieved this with such a global leading company and are now talking to others for similar programs.”

For all inquiries and to speak to our team about your training requirements, please send an email to OGVtraining@ogvenergy.co.uk

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TRAINING FOCUS

By Katie Milne

The Aberdeen based company

‘GLOBAL CORROSIONS SOLUTIONS GROUP’ launches G.C.S.G. Training

G

lobal Corrosions Solutions Group (G.C.S.G) formally known as Aberdeen Corrosion Solutions has undertaken a rebrand since OGV Energy last interviewed Nicky Adams, Managing Director, in March 2019. The rebrand included the addition of new sectors to the business, including training courses.

Nicky previously stated “Looking ahead, we already have a number of potential new clients in the pipeline that will enable us to expand our capabilities and we are passionate about becoming a recognised industry service provider ourselves. However, we are going to have to walk before we can run and that is something we are very aware of, with a fast paced industry that is constantly improving and developing we need to stay current without getting too far ahead of ourselves.”

This past year has been a great year of development for the company as they began to expand their market out with Aberdeen, they

found that having “Aberdeen” in the company title somewhat limited them from offering their services further afield. Rebranding to Global Corrosion Solutions Group has increased their client reach with the company now working in Asia, Trinidad, and the US.

Group is planning to be the first training provider in the world to provide all 5 accreditations, already offering SSPC TTP and ICATS qualifications, the company aims to have OPITO, ECITB and NACE training under their belt in the near future. Following this, they also plan to open a rope access training facility with IRATA and a global wind organisation training facility with GWO, bringing together all necessary training to one location.

This new concept has the flexibility to adapt to the new world we are about to enter, with plans to build Perspex training centres with new social distance measures in place amid Covid-19, allowing clients, staff and new starts to get the adequate training they require whilst feeling safe, both quickly and efficiently.

With 12 years of experience in Oil and Gas, the company is very versatile and looks to target every sector with their expertise. With contracts already in place within the nuclear sector, they hope to branch out and make more of an impact within the wind sector and other industries in the following months.

Despite growing globally, the company has maintained a focus within the Aberdeen area by expanding training opportunities for fabric maintenance providers. Through this, they have worked to implement 3 news sectors into their business. These include G.C.S.G. Service Provider, G.C.S.G. Distribution and G.C.S.G. Training. Since launching Distribution, the company has teamed up with Duromar Coatings ltd to distribute low VOC, environmentally friendly paints. Global Corrosion Solutions Group plans to sign similar distribution agreements with various companies around the world. The introduction of the Training sector aims to be the fundamental part of the business. Nicky Adams has plans to bring all training services to one place, in the Energy Hub of Scotland, Aberdeen.

Global Corrosion Global Corrosion Solution

Solution Group is planning to be the first training provider in the world to provide all 5 accreditations

Refurbished equipment

Through all of this, Nicky’s main motivation continues to be his 19-monthold son Reid Adams, with the hope of passing a successful business down to him in the future.

Dry Ice

Coating

For more information visit www.globalcorrosionsolutionsgroup.com

www.ogvenergy.co.uk I August 2020

TRAINING FOCUS

PARADIGM LEAP

The pathway to diversification

By Jakaria Rahman, Project Director for Paradigm leap

Want to keep up to date with the global energy sector?

visit www.ogvenergy.co.uk

P

aradigm Leap have developed a bespoke programme designed to initiate change in the Oil and Gas and Energy sector. The innovative programme has been formulated by industry experts for senior business executives who want to broaden their company’s horizons.

In these unprecedented times, Paradigm Leap believe that opportunity exists but requires harnessing through hard work, dedication and strategic thought. The team are passionate about leading the change and supporting companies to achieve their full potential.

The newly developed programme will guide businesses through the Pathway to Diversification focusing on people, planet and profit. These three pillars of the programme will underpin the entire process throughout ensuring untapped potential is identified whilst positioning companies for successful change and sustainable clean growth. Diversification is all about small significant changes that can be sustained in the market and bring stability to businesses.

At Paradigm Leap we believe strategic diversification comes in multiple forms.

It can become overwhelming to hear Net Zero or Carbon Neutral messages associated with big investment by large companies. Initiatives like offshore platform electrification, wind farms, green hydrogen plants are relevant and the target of well-deserved attention, however, big investment does not fit the majority

of the energy businesses. It does have a place, but it is not in the realm of the day-today life of most UK businesses. Paradigm Leap recognise this and have developed a programme tailored to small and medium companies.

The Pathway to Diversification will take place over a structured nine-day programme, and will be presented and managed by leading oil and gas professionals with real experience of diversification. The first stage will be to identify opportunities through understanding the business, its capabilities and the target goals. Thereafter, the Paradigm Leap team will work with the company through a carefully developed process which will screen the opportunities and evaluate the viable options. A strategy will then be developed with a clear path for diversification. The outcome of the programme will deliver clearly defined actions to achieve the goals and to identify the tools required to support the business.

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The time is now to implement targeted and sustainable change. Paradigm Leap’s programme will make sure that happens and it only takes 9 days.

“The North Sea is at an inflexion point, combined with the global desire to combat climate change and the UK’s ambition to achieve Net Zero by 2050. Now is the time to unlock opportunities. Key to this will be diversification into other sectors which will provide long term prosperity. This is the ideal time for the oil and gas supply chain and its technology innovators to identify, plan and deliver a diversification strategy.”

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38

INNOVATION ZONE

INNOVATION ZONE

SPONSORED BY

INTOWARE LAUNCHES CUSTOM REPORTING ‘TOOL’ FOR SAFETY-CRITICAL ENVIRONMENTS

Innovation plays a role in every economy, and many UK firms remain unaware of the full range of Government incentives available to them in support of their product or service developments. Leyton is Europe’s largest R&D Tax Consultancy, having assisted over 8,000 UK clients and returned over £500million in reliefs and incentives. The challenges and opportunities faced within Oil & Gas mean that now, firms are thinking differently and are continually improving their products and services. Leyton is proud to have returned over £35million in R&D Tax Relief, R&D Allowances, Patent Box Relief and Grant Funding to our Oil & Gas and supply chain clients.

I

ntoware the workflow specialist has launched a powerful custom reporting ‘tool’ for its automation platform, WorkfloPlus that allows bespoke data reports to be created and shared to help streamline plant safety, compliance and save time.

All businesses work in their own unique way, there is no standard approach and no single solution that works perfectly. This is why Intoware has built a new custom feature for its automation platform, WorkfloPlus, so users can create tailored reports which means the data is always 100 per cent relevant to their needs.

WorkfloPlus guides users through business processes from beginning to end, replacing paper-driven processes and executing them across systems and people, managing tasks and data capture output for continual data analytics to drive improvements.

But if you are the H&S manager requiring safety analytics from an inspection, accessing specific data from a ‘one size fits all’ report can be time consuming. Intoware’s custom reporting ‘tool’ helps solve this problem by providing analytics that are only as detailed as the user requires.

Sean Hennelly, chief operations officer, Intoware, explains: “Customised reporting helps to streamline key performance processes, rather than giving users standard report data.

It allows them greater flexibility instead as they can extract what they need from the custom reports and share this data in a range of outputs including, PDF, Excel, MS Word that are automatically emailed to the rest of the team.

www.ogvenergy.co.uk I August 2020

“When working offshore for example, staff complete digital forms on their mobile app that replicate the paper forms they’re already familiar with. They can quickly select the task to be executed such as an inspection of a specific component, it could be one of over 600,000 components on an oil rig and have instant access to workflow data from previous inspections.

“A step-by-step guide takes the user through the selection of the right safety equipment or PPE that is required for the inspection and when the job is finished, they can take a photo for audit trail purposes.

“If a component were to be found faulty, a new branch of workflow data is created in WorkfloPlus, triggering another maintenance job, this data is captured and synced with the server – so the entire process helps saves time and effort, reducing the opportunity for error.”

WorkfloPlus with custom reporting helps create a quicker, more connected workplace for safetycritical environments that want to achieve greater process efficiencies and reduce costs.

INNOVATION ZONE

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THE ADOPTION OF THE 4TH INDUSTRIAL REVOLUTION DIGITAL TOOLBOX

Dr. Satyam Priyadarshy

T

he Covid-19 pandemis has triggered the destruction of the economic demand that would have propelled the 4th Industrial Revolution toolbox and embed greater operational efficiencies, a group of technology experts from within the energy sector agreed to participate in a new study by the energy think tank Gulf Intelligence.

The oil and gas sector is renowned as slow adopters of digital transformation strategies, offering a new chapter in human development, enabled by extraordinary technology advances that commensurate with those of the first, second and third industrial revolutions. The speed, breadth and depth of this revolution is forcing all industries to rethink how organisations create value.

“It’s a tipping point for the industry for a variety of reasons,” Sir Mark Moody-Stuart, a member of the Board of Saudi Aramco and the former Chairman of the Royal Dutch Shell PLC, said in the GIQ Study. “This is a point where oil transforms into a normal commodity, like iron, nickel and copper, where low-cost producers dominate in market share and the higher-cost producers fill in the tail end – this has been coming for some time, but Covid-19 accelerated it,” Sir Mark said.

With Global investment in the energy sector is expected to fall 20% ($400 billion) this year, compared to last year as the covid-19 pandemic takes it’s toll on the energy sector, the International Energy Agency reported last week. Before the pandemic, the global energy investor sector was on track for growth of around 2%, which would have been its largest annual rise in spending in six years.

Gulf Intelligence, a UAE-based strategic communications & research firm, have recently published a GIQ Study – Middle East Energy Technology Dialogues – on how the Covid-19 pandemic will impact the Middle East’s energy sector’s adoption of digital technologies, such as artificial intelligence and robotics. The Special Report profiles a series of contributions from 16 digital experts in leading energy technology companies such as ABB, BASF, Halliburton and Schneider Electric to name a few.

“The adoption of the 4th Industrial Revolution digital toolbox in the oil and gas industry – globally, I think I would score 4IR adoption at about 7 or 8 out of 10. In the Middle East, I would say they are coming to 5 or 6 out of 10 because they are now getting more serious about it,” Dr. Satyam Priyadarshy, Technology Fellow & Chief Data Scientist, Halliburton, said in the report.

Digitalisation is already improving the safety, productivity, accessibility and sustainability of energy systems. It is changing markets, businesses and employment. New business models are emerging, while some old models may be on their way out. “While the world is going to be very, very different post-Covid-19, the only thing we don’t know is how different it will be. I expect we will see a massive acceleration in the digitalisation of the Middle East power sector, a huge improvement that will represent a step-change as we go forward,” said Paddy Padmanathan, CEO of ACWA Power.

INNOVATION ZONE SPONSORED BY

www.leyton.com

INNOVATION ZONE

40

By Georgia Institute of Technology.

Original written by John Toon

MEMBRANE TECHNOLOGY COULD CUT EMISSIONS AND ENERGY USE IN OIL REFINING The membrane at Georgia Tech

New membrane technology developed by a team of researchers from the Georgia Institute of Technology, Imperial College London, and ExxonMobil could help reduce carbon emissions and energy intensity associated with refining crude oil. Laboratory testing suggests that this polymer membrane technology could replace some conventional heat-based distillation processes in the future.

F

ractionation of crude oil mixtures using heat-based distillation is a large-scale, energyintensive process that accounts for nearly 1% of the world's energy use: 1,100 terawatt-hours per year (TWh/yr), which is equivalent to the total energy consumed by the state of New York in a year. By substituting the low-energy membranes for certain steps in the distillation process, the new technology might one day allow implementation of a hybrid refining system that could help reduce carbon emissions and energy consumption significantly compared to traditional refining processes.

"Much in our modern lives comes from oil, so the separation of these molecules makes our modern civilization possible," said M.G. Finn, professor and chair of Georgia Tech's School of Chemistry and Biochemistry. Finn also holds the James A. Carlos Family Chair for Pediatric Technology. "The scale of the separation required to provide the products we use is incredibly large. This membrane technology could make a significant impact on global energy consumption and the resulting emissions of petroleum processing."

To be reported in the July 17 issue of the journal Science, the paper is believed to be the first report of a synthetic membrane specifically designed for the separation of crude oil and crude-oil fractions. Additional research and development will be needed to advance this technology to industrial scale.

Membrane technology is already widely used in such applications as seawater desalination, but the complexity of petroleum refining has until now limited the use of membranes. To overcome that challenge, the research team developed a novel spirocyclic polymer that was applied to a robust substrate to create membranes able to separate complex hydrocarbon mixtures through the application of pressure rather than heat.

www.ogvenergy.co.uk I August 2020

Membranes separate molecules from mixtures according to differences such as size and shape.

When molecules are very close in size, that separation becomes more challenging. Using a wellknown process for making bonds between nitrogen and carbon atoms, the polymers were constructed by connecting building blocks having a kinked structure to create disordered materials with built-in void spaces.

then converted to 200-nanometer-thick films, and incorporated into membrane modules at Imperial using a roll-to-roll process. Samples were then tested at all three organisations, providing multilab confirmation of the membrane capabilities.

"We have the foundational experience of bringing organic solvent nanofiltration, a membrane technology becoming widely used in pharmaceuticals and chemicals industries, to market," said Andrew Livingston, professor of chemical engineering at Imperial. "We worked extensively with ExxonMobil and Georgia Tech to demonstrate the scalability potential of this technology to the levels required by the petroleum industry."

The research team created an innovation pipeline that extends from basic research all the way to technology that can be tested in realworld conditions.

"We brought together basic science and The team was able to balance a variety of factors to chemistry, applied membrane fabrication create the right combination of solubility -- to enable fundamentals, and engineering analysis of how membranes to be formed by simple and scalable membranes work," said Ryan Lively, associate processing -- and structural rigidity -- to allow some professor and John H. Woody faculty small molecules to pass through more fellow in Georgia Tech's School easily than others. Unexpectedly, of Chemical and Biomolecular the researchers found that the Engineering. "We were able materials needed a small amount to go from milligram-scale of structural flexibility to "Much in our modern powders all the way to improve size discrimination, as prototype membrane well as the ability to be slightly lives comes from oil, modules in commercial "sticky" toward certain types so the separation form factors that were of molecules that are found of these molecules challenged with real crude abundantly in crude oil. oil -- it was fantastic to makes our modern see this innovation pipeline After designing the novel civilization possible" in action." polymers and achieving some success with a synthetic gasoline, ExxonMobil's relationship with jet fuel, and diesel fuel mixture, Georgia Tech goes back nearly 15 the team decided to try to separate a years and has produced innovations in crude oil sample and discovered that the other separation technologies, including a new new membrane was quite effective at recovering carbon-based molecular sieve membrane that gasoline and jet fuel from the complex mixture. could dramatically reduce the energy required to separate a class of hydrocarbon molecules "We were initially trying to fractionate a mixture of known as alkyl aromatics. molecules that were too similar," said Ben McCool, a senior research associate at ExxonMobil and one of the paper's coauthors. "When we took on a more "Through collaboration with strong academic complex feed, crude oil, we got fractionalisation that institutions like Georgia Tech and Imperial, we looked like it could have come from a distillation are constantly working to develop the lowercolumn, indicating the concept's great potential." emissions energy solutions of the future," said Vijay Swarup, vice president of research and The researchers worked collaboratively, with development at ExxonMobil Research and polymers designed and tested at Georgia Tech, Engineering Company.

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42

GREEN ENERGY

GREEN ENERGY ZONE SPONSORED BY

Here at Xodus we have charged into 2020 with a true sense of determination and pride. I’m incredibly excited that most of our work utilises skills from across the business; from offshore wind supply chain experts to commercial analysists (and many more!). We know this works and that it adds value for clients. But we also know that this approach is fit for purpose in a world where the focus is on a broad energy mix and meets increasing demand. We are leading and guiding our Clients through the energy transition, and working together to deliver a responsible energy future.

Peter Tipler Renewables Director, Xodus Group

Fugro starts Vattenfall site investigations at two UK offshore wind farms Fugro has begun a four-month marine site characterisation campaign for Swedish energy group Vattenfall at two major offshore wind development sites located over 40 km off the coast of Norfolk, UK.

The resulting Geo-data from Fugro’s geotechnical investigations will feed into the ground model for the Norfolk Vanguard and Norfolk Boreas wind farms, which will have a total installed capacity of 3.6 GW, enough to power more than 3.9 million homes.

Working from its dynamically positioned (DP2) geotechnical drill ship Fugro Scout, Fugro is performing surveys and sampling using its proprietary SEACALF® Mk V DeepDrive cone penetration testing system at both sites, and will carry out testing both in situ and at the company’s world-class soils laboratories in Wallingford, UK, and Nootdorp in the Netherlands. The site characterisation work is split across two projects: the first will help Vattenfall optimise the wind turbine foundation engineering design; the second will assist Vattenfall in selecting the most efficient cable route from the onshore substation to the turbines.

Rob Anderson, Project Director of Vattenfall UK’s Norfolk Vanguard and Norfolk Boreas Projects, said: “The Norfolk Vanguard and Norfolk Boreas projects are huge and complicated infrastructure projects requiring long-term planning and support from specialist service providers during their development and beyond. We are pleased to partner with Fugro on these important site investigation projects, who we can rely on to provide the necessary Geo-data for the next phase of engineering and procurement.”

John ten Hoope, Fugro’s Marine Site Characterisation Director for Europe and Africa, said: “We have been a trusted partner of Vattenfall in Europe for many years. These latest offshore wind contracts have further strengthened our working relationship, which is based not only on Fugro consistently delivering technical excellence but also on shared company values to create a safe and liveable world.”

Partrac and Team working on Arklow Bank 2

The consortium partners are currently in the second stage of their project, following the completion of the first round of work at the end of 2019.

Partrac, MetOceanWorks and Cooper Marine Advisors are carrying out a detailed assessment of the geomorphology of SSE Renewables’ Arklow Bank Wind Park Phase 2 offshore wind project.

Now, in Stage 2, Partrac and partners are utilising the survey data to provide local validation of the modelling tools which will be used to support a long-term assessment of the lease area, export cable route and surrounding areas.

Last year, the team provided a comprehensive literature review, an initial phase of numerical modelling and recommendations for detailed site investigations, including metocean and geophysical surveys.

“The geomorphological assessment compliments our engineering work streams, allowing us to make decisions with increased knowledge and therefore confidence. We are pleased to be working with the Partrac consortium toward delivery of Stage 2 of this exciting project”, said John Davidson, SSE Offshore Geotechnical Engineer.

The Arklow Bank Wind Park Phase 2, located off the East Coast of County Wicklow in the Irish Sea, has a consented minimum installed capacity of 520 MW. The offshore wind farm is planned to be built by 2025.

www.ogvenergy.co.uk I August January-February 2020 2020

GREEN ENERGY

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Industry bodies agree partnership to support low carbon future Aberdeen Renewable Energy Group (AREG) and OGUK have signed a reciprocal membership agreement to reflect the aligned goals of supporting the energy industry to achieve net zero emissions.

Jean Morrison, chair of AREG, and Deirdre Michie, chief executive OGUK vowed to share resources and market intelligence to deliver a sustainable transition to a lower carbon future.

Jean Morrison, chair of AREG,

AREG, the membership body for renewable energy in the north east of Scotland, and OGUK, the leading trade body for the UK’s offshore oil and gas industry, will work closely on low carbon project opportunities and promote the work of members within their organisations.

The agreement demonstrates the close and enduring relationship between the oil and gas supply chain and the renewables sector.

Jean Morrison, chair of AREG said: “There has been a longstanding connection between AREG and OGUK and I am pleased that we have been able to formalise this relationship to work closer together. The agreement will allow us to promote the energy transition in the north-east and highlight market opportunities. With decades of expertise in energy and engineering, Aberdeen and the north-east is well placed to deliver the energy transition.”

Deirdre Michie, chief executive OGUK said: “This agreement underlines OGUK’s commitment to an inclusive, fair, and sustainable transition to a lower carbon future. We look forward to continuing our work with AREG which will help ensure that communities realise their potential through the energy transition.”

UK Energy Transition Alliance created to fast-track the road to net-zero The Energy Transition Alliance (ETA), formed by The Oil & Gas Technology Centre (OGTC) and the Offshore Renewable Energy (ORE) have announced a collaboration which will accelerate the UK’s transition to a net zero future.

The companies will work together with the energy industry to deliver on the next generation of hydrogen production and floating offshore wind.

The Energy Transition Alliance aims to transform the energy sector in the UK, accelerating the transition to a netzero future which will ensure a reliable and secure source of power for the country as well as a competitive energy technology sector.

Andrew Jamieson, OREC Chief Executive, said: “Floating offshore wind in particular is an area of massive potential, and the oil and gas industry’s extensive experience of operating in the marine environment for many decades can be the enabler that ensures that the UK not only delivers a complete energy transition, but also a sustainable, worldleading green energy industry."

Jamieson continues by saying: “Innovation to meet the global demand for green energy technologies will ensure that we retain our world-leading position in offshore renewables, creating many thousands of jobs and significant economic growth.”

The ETA is calling on the energy industry to produce technologies which reduce the cost of power from shore while helping to eliminate offshore CO2e emission. This currently only accounts for two per cent of the UK’s total CO2e emissions.

The ambitious programme includes five initial projects looking at renewable energy. This includes doing a UK offshore renewables supply chain deep dive study which will maximise the full potential of the UK supply chain in the production, installation and decommissioning of offshore renewables. An estimated 27,000 jobs will be created by 2030.

The ETA will also develop a commercially viable solution for the cost-effective recycling and reprocessing of wind turbine blades, which is expected to bring $1bn value to market.

Paul Wheelhouse, Scotland’s Energy Minister said: “this latest initiative, which will help deliver a forward looking, low-carbon recovery and diversify the energy sector’s workforce, is another step towards a greener, fairer and more equal society and economy.”

“The technologies supported by the Alliance will boost digitalisation and automation and accelerate North Sea decarbonisation,” said Wheelhouse.

The projects will also help Scotland’s offshore wind projects.

UK Minister for Energy and Clean Growth, Kwasi Kwarteng, said: “Collaboration across the energy sector will be essential to achieving our climate goals, and it is great to see the Energy Transition Alliance working towards developing new technologies, creating green jobs and helping the transition to a cleaner future.”

GREEN ENERGY ZONE SPONSORED BY

www.xodusgroup.com

44

Sponsored by

www.ducatuspartners.com same period. Emerging challenges and opportunities such as digitalisation, technology utilisation, entry into new regions, positioning services to the growing markets such as clean energy and decommissioning, as well as embracing workforce diversity, have all played into companies taking a more deliberate approach to shaping the talent mix.

ON THE MOVE Throughout its history, redundancies in the oil and gas industry have been suffered by many as a difficult side effect of the sector’s peaks and troughs. In the two years following 2014 downturn, approximately 30% of oil and gas jobs were lost globally across the industry and whilst there is not a clear line of sight to 2020 numbers, the volatile nature of the events currently at hand has spurred companies to make what could be the deepest round of cuts to their workforce yet. These tough measures have not been taken lightly and have unfortunately been necessary for the survival of many organisations forced to cut costs and right size for a steep drop in activity.

The historic loss of talent has led to the skills shortage being a much talked about issue which has closely followed the upward curve of past fluctuations.

Whilst the cyclical nature of the sector is undoubtably the most significant influence impacting the talent landscape, I would argue that the demographic has also been shaped intentionally, with organisations optimising their workforce to face developments in the sector over recent years which have no necessarily correlated to this line. Pointing to this, over the last five years only 4 in 10 of the jobs lost in the previous downturn returned during recovery, yet the average production per worker rose by almost 80% over the

1 Nelson Haight

2

2

Maurice McBride

3

This does only represent a small pocket of the industry and does not encompass the current state of the market, however as a whole it is fair to comment that whilst organisations have been obligated to adapt to the effects of the skills gap forged by downturns, a thoughtful and innovative approach to managing human capital has been taken in parallel to this, in order to successfully optimise teams to where the market has moved in recent times.

Looking ahead to what a potential recovery may look like this time around still feels extremely uncertain, however companies will once again need to consider what capability they will require to face the road ahead, taking a strategic approach to how they organise, utilise, develop and hire talent; addressing the gaps in knowledge and expertise left by downsizing, as well as those which the future direction of the sector opens up.

By Sean Buchan

Managing Partner - EMEA at Ducatus Partners

Alexander Thillerup

4

David Lesar

Key Energy Services Announces Appointment of New Chief Financial Officer

Key Energy Services has announced the appointment of Nelson Haight as Senior Vice President, Chief Financial Officer and Treasurer. Nelson has deep finance leadership experience, previously holding Chief Financial Officer roles with Castleton Resources and Midstates Petroleum. He has also served in roles covering financial control, audit, capital planning and restructuring with companies including PGS, Isolagen, USI and Arthur Anderson.

ROVOP Announces Leadership Changes

ROVOP has announced a new senior management team following a multi-million investment by its shareholders Blue Water Energy and BGF. David Lamont is stepping down as Chief Executive Officer, with Neil Potter, who was previously Chief Financial Officer of the business, being appointed in the position.

Prior to joining ROVOP Neil was Chief Operating Officer of TWMA. Maurice McBride has also been announced as ROVOP’s NonExecutive Chairman and brings over 40 years’ experience in the oil and gas industry, with more than 23 years of those in board roles at companies including EV, ICR Integrity, Premier Hytemp and Sparrows.

www.ogvenergy.co.uk I August 2020

As one example of this in practice, in late 2019 Ducatus Partners undertook a market mapping assignment focused on specialised subsurface expertise, studying over 2,500 reservoir engineers across 20 upstream companies. Expecting to see evidence of a dearth of experienced professionals within many producers, especially those most sensitive to price fluctuations, we were somewhat surprised that this was omnipresent across all organisations. The extent of this gap was clear in that reservoir engineers with over 15 years’ experience made up just 32% of the population studied. From our discussions with the market, whilst the displaced grouping of expertise has been heavily impacted by past redundancies and consolidation, the move towards unconventionals as well as the uptick in the utilisation of technology in subsurface applications, led to a diminished

requirement for tenured specialists and has been a causative factor in re-modelling the talent structure.

3

Xodus Appoint Renewables Vice President

Xodus Group have appointed Alexander Thillerup as Vice President of Renewables to head up a new office in Boston as the business targets growth in the North American offshore wind space. Alexander joins from Aegir Wind Solutions, where he was Director of Project Management. He has over 15 years of experience in the renewables industry across Europe and Australia and has managed several leading projects for developers, including the concept development of the 6MW tower for Equinor’s Hywind Scotland turbines, the world’s first floating windfarm. He will be supported by, Jamie MacDonald, who is relocating from Xodus’ headquarters in Aberdeen to take up the position of Director of Operations.

4

CenterPoint Names Former Halliburton Head as New Chief

CenterPoint Energy, the Houston based utility company, has named the former head of Halliburton, David Lesar, as President and Chief Executive Officer.

David spent over 25 years with Halliburton and played an influential role in the company’s success in the North American hydraulic fracturing market. He joined the business as Executive Vice President of Finance and Administration after spending his early career with Arthur Anderson.

David went on to hold executive roles with Halliburton including Chief Financial Officer, Chief Operating Officer, Chief Executive Officer and Chairman of the Board.

ON THE MOVE

Content provided by Ducatus Partners

45

New Board Member for OGTC The Oil & Gas Technology Centre have appointed Gillian King to the board, tasked with working with the executive team and chair to shape the overall strategic direction and long-term success center, as well as working on the audit committee. Gillian is currently Tendeka’s Vice President for Europe, Russia, CIS and Africa. She has also served as Vice President Corporate Development and Vice President Asia Pacific with Tendeka. Gillian has also held sales and engineering roles with Swellfix and Weatherford.

Behzad Kazerani

5

Enermech Makes Chief Business Development Officer Appointment

Enermech has strengthened its senior leadership team with the appointment of a Behzad Kazerani as Chief Business Development Officer. He will be responsible for the company’s global business development function, overseeing the team which will spearhead an ambitious growth strategy over the next five years. Behzad has held senior leadership positions at KBR, Petrofac, Wood, Foster Wheeler, IHI and most recently at Houston based Halff TriTex.

6

New Chief Executive Officer for North Star Shipping

Shipping firm North Star has appointed Matthew Gordon as Chief Executive Officer. He succeeds Callum Bruce, who is stepping down after 34 years in the business. Matthew joins the emergency response and rescue vessels business from Unique Group, where he has was Regional Vice President for Europe. Prior to this he held leadership roles with Viking SeaTech, Subsea 7 and Veripos and began his career as an engineer with Fugro.

7

Pryme Group Names New Chief Financial Officer

Pryme Group has announced the appointment of Tyler Buchan as Chief Financial Officer and succeeds Kerrie Murray following her recent promotion to the role of Chief Executive Officer.

Tyler joins from BrewDog where he was Head of Financial Processes. His experience includes holding senior finance roles with Forum Energy Technologies for over seven years and also serving as a Senior Associate with PwC.

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AMS Global Announces New Board Director

Marine consulting and safety specialists AMS Global Group has announced the appointment of Graeme Reid as Non-Executive Director. Graeme’s experience includes founding Maritime Assurance & Consulting and holding senior roles in the subsea consulting space with companies including Noble Denton and Poseidon Maritime.

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Gillian King

6

Matthew Gordon

Vallourec Announces Appointment of Group General Counsel

Vallourec has announced the appointment of Claire Langelier as Group General Counsel, joining the executive committee and serving as Secretary of the Supervisory Board. She joined Vallourec in 2015 and was previously Senior Legal Director in charge of Group Governance, Stock Exchange and Financing Law. Claire has over 20 years experience which includes senior roles in legal, corporate, merger and acquisitions and private equity department with Econocom and Latournerie Wolfrom Avocats in Paris.

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7

Tyler Buchan

8

Alan Shanks

Seplat Appoints Chief Financial Officer

Seplat Petroleum, the independent Nigerian exploration and production business, has appointed Emeka Onwuka as Chief Financial Officer and Executive Director, Lagos and London. Emeka has over 30 years experience in financial services across Sub-Saharan Africa.

New Chief Financial Officer for ROMAR International

ROMAR International have appointment Alan Shanks as Chief Financial Officer, succeeding Duncan Scott in this role. Alan has over 30 years of experience and previously held senior finance leadership positions with EY, ISS and ROVOP before launching his consultancy.

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Emeka Onwuka

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Claire Langelier

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Graeme Reid

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OPINION Dales Voe is a facility with tremendous potential, but it should never have been the location to deconstruct a floating installation of Buchan Alpha’s complex design and structure.

Ask any professional marine architect worth their salt and they would counsel against trying to undertake this work whilst moored beside a quay, purely on the basis of inherent safety risks. Taking into account the enhanced and less exposed working practices of a dry dock, it should have gone to one of the UK’s excellent suitably configured existing yards. So why did it end up in Shetland?

Curlew FPSO

WHO REGULATES THE REGULATORS? (Episode 2)

Last month, I provoked some reaction on how regulators seemed mildly disinterested in actually interacting aggressively with the industry to ensure things were done within the bounds of stated Government policy and public pronouncements.

Take Buchan Alpha, for example (and I’m sure

Veolia UK wish someone would – off the rocks in Dales Voe!). But how did the bold ambitions for Shetland’s deepwater decommissioning facility find themselves well and truly grounded too? It all seems to centre on the murky world of “big oil” and politics, rather than a sound scientific and technological approach championing ‘fitness for purpose’.

www.ogvenergy.co.uk I August 2020

The former is a blatant misuse of authority for the

attainment of political goals and even worse, if true, may have put pressure on a private business entity to adopt a methodology that was clearly less suitable from a work content and safety point of view. The latter, again, if proven to be true, is a corrupt practice distorting the open and fair transaction of business by sealed tender, at worst, and, at best, a manipulation of the market to the disadvantage of other bidders. Not sure if a ‘FoI’ request would unearth the minutes of any of these alleged meetings? Also what does OPRED do if it doesn’t vet the technical and commercial proposals contained in Decommissioning Programmes? Surely the methodology must be assessed at some point for relative safety under the comparative assessment regime of which it is so fond and which has been challenged on an international level at OSPAR.

Whatever, the net result has been the realisation of the wholly predictable mess that all concerned parties now

By Hamish the experienced oilfield professional

Regrettably it seems we have to continue in a similar vein. But this time to ask, who is influencing the regulators to divert them from their defined role and what have the impacts been? Sadly, the outcomes have not been very favourable to UK Decom PLC, nor to us, the people of the nation whom actually own the rich natural resources to be found in our waters and onshore. In the seeming absence of comprehensive performance audits and strategic adherence to the framework of international agreements and policies governing our seas and environment, it has become clear where the power lies and how misguided or devious are the motives hiding under the surface.

There are very strong rumours circulating in the sector that, it was all due to politics. Agents of the UK Government wanted an early demonstration of success and return on, let’s face it, a pretty modest investment in yards. Allegedly, through one of its regulatory bodies, pressure was put on both the Operator, RepsolSinopec, and a leading contractor. Seeking fiscal goodwill and populist “brownie points” it seems the owners agreed to try the newly completed facility, to much patriotic flag-waving and a guaranteed cost. The story continues, a contractor was advised that should their price be modified downwards, the work would be their’s for the taking. Wherever the truth lies, either of these scenarios is particularly worrying from the regulatory perspective.

“Who is influencing the regulators to divert them from their defined role and what have the impacts been?”

find themselves in. A job running many months late due to hazardous weather and working conditions; a major safety incident resulting in a total halt in progress; and a substantial bill to recover the hull and complete the job, in addition to all the extra costs and delays accrued up to that point because of the inherent problems of the workscope and ergonomics.

Reducing the initial bid price may well have resulted in attempts to cut corners and trim professional fees. Plus, it appears the actual handover exacerbated the deconstruction challenges, as the Operator unexpectedly removed control and ballast systems before the installation was handed-over inshore.

All this adds up as tangible testament to poor planning, bad communications and a lack of available specialist expertise.

So, the net result has been a complete embarrassment -

for the oil company a huge reputational hit; for the contractor a substantial financial loss; for the regulators knowledge that they are totally out of touch; for industry bodies a realisation of their impotence; and lastly, for UK Decom PLC a pretty poor report card. Hardly “World-Class”, not even “second class”, most evidently “steerage”.

Almost forgot. Last month the Curlew FPSO was towed ungraciously from the Port of Dundee, heading for Norway, taking with it many UK jobs, substantial lost local economic benefit, probably a lump of tax relief cash from HM Treasury and what little was left of the dignity and reputation of the UK decommissioning sector.

Next term, must do better! Whom should we blame for this shoddy performance?

COMPANY NEWS

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FRIDAY 14TH AUGUST

THE OFFSHORE ACHIEVEMENT AWARDS GOES VIRTUAL! Hosted by SPE Aberdeen and supported by TAQA, the 34th Annual OAAs will be held virtually at 6-8pm on Friday 14 August.

Rachel Riley will host the evening, taking part in a live Q&A as well as presenting

the award winners across ten categories, including the new ‘Energy Transition for Future Generations’ award.

The event will be free to attend thanks to the generous support from our sponsors and it will be

broadcast via Zoom, Youtube and a range of other media channels.

For more information on how to sign up and view the event, please visit www.spe-oaa.org or contact oaa@mearns-gill.com

TRAVEL PARTNER Going above and beyond to support a vital service At Traveleads, we pride ourselves on building partnerships with our clients. We work tirelessly to look after your best interests in a number of ways – all with the aim of saving you time, money and adding value through expert consultancy. Ultimately, we want to make life easier for our clients, with a huge focus on the welfare of their most valuable asset - their people.

Never more so than at a time like this.

ONLINE WEBINARS

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EIC

Supporting essential workers Our customers span a variety of sectors – from energy to medical services, manufacturing to sports teams. And whilst there is currently a global ban on the movement of people, the government has recognised the need to keep certain industries operating, meaning many still need to travel domestically and internationally. Whilst this may sound simple, it’s been a real complex challenge that our team has risen to.

Let’s look at the energy sector in particular, which like others is working from home where possible.

But with critical operations taking place up and down the country, on and offshore, there is no getting away from the fact that these essential workers need to travel; more than 12,000 UK staff are still working offshore, amounting to 40% of the total workforce across 147 offshore platforms.

With closed borders, reduced services and a myriad of other complications, our expert advice and continued support to keep them moving safely continues to be pivotal.

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Traveleads Sales Director Sally Cassidy explains: “Arranging domestic travel to and from Aberdeen, as well as international travel to key energy hubs around the globe, has certainly been interesting at times. With border and quarantine restrictions, as well as complex visa requirements, our team’s skills are being put to the test but despite the odds, they always go above and beyond. Making it work for the client is non-negotiable.”

Oil & Gas Council

Communication and forward-thinking The Traveleads partnership ethos is stronger than ever. Our team of experts are fully conversant with all the latest travel updates, guiding our clients on the best options available and alternative solutions in response to rapidly changing flight schedules and wider travel restrictions. Regular communication and proactive support for all our clients has been vital. Firstly, to provide reassurance that measures are in place for safe travelling. Secondly, as their travel partner, we are working closely with them to fully understand re-entry and return to work plans, offering assistance to update travel policies and procedures with passenger safety at the forefront, whilst continuing to deliver the efficiencies our clients depend on.

Rystad

What the future looks like We know many of our energy clients are looking to resume travel as soon as is safe to do so and we stand ready to support them with this and the increasingly complex requirements that will no doubt continue. We continue to consult heavily, offering advice and knowledge even on speculative plans to support decision-making in a very challenging landscape.

As we look to the future, we recognise that welfare of travellers will be more important than ever and we’re already liaising with suppliers to ensure they’re putting in robust measures to uphold the highest possible standards as travel increases.

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LEGAL & FINANCE awareness of climate change and the need for Net Zero to be incorporated into daily operations has positioned the UK as a leader in addressing key issues facing the industry.

In fact, one facet of such diversification (offshore wind generation) has placed the UK 6th globally against such giants as China, the US and India – not bad for a country that is, on average, thirty-two times smaller in size.

Against that backdrop it's no surprise that the UK is attracting increasing investment and interest from more global players.

By Laura Petrie, Legal Director, Brodies LLP

Time for the bubble to burst?

It has long been considered that the oil and gas industry in the UK operates in somewhat of a bubble. The industry is treated differently for taxation from other manufacturing and production related sectors and to those outwith the industry, oil and gas contracting and commercial structures are alien and unclear.

Equally, within the global oil and gas market the UK exists in an operating bubble. Historic economic analysis has highlighted that operating in the UKCS provides one of the best $/BOE returns on investment, especially during lower oil price environments. This may be due, in part, to the range of differing operating environments available under one licensing regime, from established onshore projects and the harsh locations West of Shetland, to the shallower waters of the North Sea.

However, in the current climate, with significantly lower oil and gas prices, constrained movement of personnel and supply restrictions as a result of COVID-19 and the rise of new oil and gas jurisdictions offering onshore development opportunities with lower cost profiles, has the UKCS bubble burst? Definitely not.

Through industry initiatives including the OGA strategy, Vision 2035 and the development of the Oil and Gas Technology Centre the UK oil and gas There is also an easily industry is moving into a DEFINITELY NOT accessible local and new phase of operations. overseas market given the Focussing on developing established infrastructure centres of excellence for which helps to reduce the advancement of clean, initial capital costs. The UK transformational technology, the fiscal regime which sets oil and growth of underwater innovation and to gas apart internally within the UK is highlight more collaborative decommissioning considered one of the most competitive practices, the UK is seeking to lead the way in regimes in the global oil and innovation in the industry. gas arena and actively supports development, decommissioning and Moreover, increased diversification and focus encouraging new entrants. on energy transition as well as a heightened

Has the UKCS bubble burst?

BRENT vs WTI 1 YEAR

WTI 1 MONTH

This interest and diversification brings with it a range of legal matters to be considered. Opening up the industry to a more global market means that elements such as intellectual property and confidential information need to be protected on a wider scale. Contracting terms become more focussed on traditional 'boiler-plate' provisions such as dispute resolution and governing law as well as the usual commercial terms. There are also the personnel implications to consider as diversification of business may need a change to contract terms if staff are also required to diversify.

It is expected that over the next 10 years the UKCS oil and gas industry will become more collaborative and diversified utilising its existing skills and resources to generate a much wider 'energy' industry. Assessing and understanding the legal implications of those changes now will ensure a smooth transition into the next stage of the UK energy industry.

It's fair to say that the bubble has definitely not burst, it's just expanded, and with the right care and consideration the UK can retain its place in the global market.

BRENT 1 MONTH

KEEPING YOU SAFE. The safety of our delegates and colleagues comes first.

Survivex and AIS Training have introduced a comprehensive range of measures to ensure the safety of delegates and staff as our Aberdeen and Newcastle training centres have reopened.

Our safety measures include but are not limited to...

SANITISING STATIONS

STAGGERED START TIMES AND BREAKS

SANITISERS PROVIDED AT EVERY ENTRANCE AND CLASSROOM.

TO AVOID CROWDING IN COMMON AREAS.

SMALLER CLASS SIZES AND RECONFIGURED CLASS LAYOUTS TO ALLOW SAFE DISTANCING.

NO CASH

CONTACTLESS CARD PAYMENTS ONLY.

PAPERLESS SIGN-IN REGISTRATION SYSTEM REDUCES CONTACT AND CROWDING.

RESCHEDULING

DELEGATES SHOWING SYMPTOMS WILL GO HOME IMMEDIATELY AND RESCHEDULE WIHOUT PENTALTY.

TOGETHER. WE ARE TRANSFORMING TRAINING. ABERDEEN | W: SURVIVEX.COM / T: 01224-794-800

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