OGV Energy - Issue 39 - December 2020 - Risk Management and Well-Being by OGV Energy

DECEMBER AUGUST 2020 2020

UKâ&#x20AC;&#x2122;s No.

ENERGY SECTOR

PUBLICATION

RISK MANAGEMENT & WELLBEING

FOSSIL FUELS North Sea Oil & Gas Review and Analytics

PROJECTS MAP CONTRACT AWARDS REGIONAL REVIEWS Middle East, Europe, US, Australia

RISK MANAGEMENT & WELLBEING FOCUS INNOVATION & TECH

RISK MANAGEMENT & WELLBEING

Featuring: Quensh - Repsol - QHSE Imrandd - The Aberdeen Clinic Intertek - Fimatix - Restrata

INNOVATION

GREEN ENERGY ON THE MOVE EVENTS LEGAL

A look back at the technologies and innovations from the past 12 months

REGIONAL NEWS

Middle East oil & gas economies hit hard by COVID, price crash What does a new US president mean for Oil & Gas? In Europe, major oil & gas firms commit to Net Zero emissions targets.

Read on page 4

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OF ENERGISE HERE! www.glacierenergy.com/energise

OPTIMISING THE PERFORMANCE OF ENERGY INFRASTRUCTURE ISSUE 01

Expert insight from our highly experienced technical teams

Innovation to maximise operational efficiency and support our net zero future

Technical articles from across our four specialist divisions

Case studies demonstrating the depth and breadth of our capability

CONTENTS

FOSSIL FUELS

7 - UK North Sea Oil & Gas Review 10 - Rystad Analytics 13 - UKCS Status Report

REGIONAL REVIEWS

20 - Middle East 22 - Europe 24 - US 25 - Australia

RISK MANAGEMENT & WELLBEING FOCUS

26 - Risk management and wellbeing: The pandemic put Risk Management in Oil & Gas to the test 29 - TAC: Testing questions for management of Covid-19 infections 30 Repsol: Mike Mann 31 - QHSE: Risk management & wellbeing through robust management systems 32 - OGV Q&A - MENTAL HEALTH 34 - Re-Gen Robotics enables the transition to industry safety 36 - Intertek's risk management and wellbeing assurance programme

INNOVATION ZONE

38 - INNOVATION & TECHNOLOGY ROUND UP 2020 40 - Filmatix UK Ltd: Technology and Covid risk management – leading role or hyperbole?

GREEN ENERGY

42 - BP, Orsted launch green hydrogen project at German oil refinery 42 - Could Scotland ever be 'the Saudi Arabia of renewables'? 43 - Iberdrola to invest £67 billion in 'energy revolution' by 2025 43 - 40,000 Jobs over 30 years in the North Sea Revolution

EVERY MONTH

4 Cover Partner: Quensh - Achieve a safe and healthy workplace in 2021 with ISO 45001 14 EIC: World Project Maps 16 Contract Awards 44 Ducatus Partners: On the Move 46/47 Company News: Namaka Subsea - Hiretech 48 Legal and Finance: Broadies LLP 49 Events: Traveleads 50 Communiy Partner: AFC - New mobile friendly site makes it easier for Dons fans TO SAVE!

KENNY DOOLEY MAIN EDITOR For the last OGV Energy Magazine issue of 2020, I just want to say a huge thank you to everyone that has been involved with OGV Energy over the past twelve months, what an unbelievable year it has been. I can honestly say that in March of this year I wasn’t sure what the future held for the business, but we have been overwhelmed by your support as we diversified into new products and introduced our new membership service, the OGV Community, to make it a great success that will become the heart of the business in years to come. Going in to 2021 we have so much more planned to grow our audience and support our partners within the energy sector, but for now I would like to wish all of you a fantastic Christmas and New Year and ask that you look out for others around you that may need your support at this challenging time.

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Our cover partner this month is QHSE specialists, Quensh; who share their thoughts on how to achieve a safe and healthy workplace when your staff come back to the office and their growth plans on a new QHSE recruitment service.

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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.

OGVENERGY

@OGVENERGY

Our theme this month is Risk Management and Wellbeing and we hear the views of Repsol, The Aberdeen Clinic (TAC), IMRANDD, Intertek, Regen Robotics, Restrata and QHSE Aberdeen on how they are addressing the current challenges in this area.

Thanks again to our readers for all their support during what has been a truly challenging year and we hope you all keep safe and well over the festive period 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.

@OGVENERGY

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COVER PARTNER

ACHIEVE A SAFE AND

HEALTHY workplace in 2021 with ISO 45001

Donna Hutchison, Director of Quensh

he world of work is changing around us like never seen before – the only constant now is change itself. These changes impact heavily on health and safety and significant transformation in the workplace is now being seen. Organisations have been forced to cope with rapid transitions in the last eight months since the pandemic’s onset with the digitalisation of workforces and remote working revolutionising the way businesses operate for the foreseeable future. It is our responsibility as HSEQ professionals to support companies through these challenging times. The introduction of ISO 45001, the new global health and safety management system standard, aims to meet the shifting needs of organisations and is designed to ensure businesses consider every factor that impacts their employees and other interested parties. The framework encourages companies to think about occupational risk as a whole and supports continuity plans while setting the standard for assembling global crisis management teams. ISO 45001 is a simple, easy to use, remote system that integrates health and safety into businesses far more efficiently, so it becomes an intuitive process as opposed to a tick box exercise. By far the single biggest challenge we face as a sector is management of change. ISO 45001 essentially helps organisations prepare for the unexpected. A big focus area with our clients at Quensh is active implementation. For many organisations, their risk-based systems are well established, therefore ISO

www.ogv.energy I December 2020

45001 provides a good platform for managing activities. We gauge the level of support the leadership may need to make key risk-based decisions strategically.

knowledge that our HSEQ consultative services bring to the table.

A time for new approaches

One of the main emerging risks we envisage in the coming months is how we manage new risks and hazards with employees working from home. The mental wellbeing of all employees will also be a vital focus area in 2021.

A greater focus on mental health

The employment market is also experiencing a huge shift, driven by the likes of Digital Skills gap, IR35 legislation, the nature of employment opportunities and the impact of working from home. It is clear that both employers and job seekers require flexibility and guidance in the approach to engagement. To meet this changing industry demand, Quensh recently diversified its service portfolio and is now providing a focused HSEQ recruitment service based on supplying staff, contract, fixed-term, and ad-hoc personnel on either an individual or multiple position basis via either an onsite or remote operation.

The psychological aspects of working from home are so important. Organisations are gaining a much deeper grasp on the issues surrounding mental health and ISO 45001 is well placed to support businesses in this It is our area. This greater focus on responsibility as mental health will be on a HSEQ professionals par with the focus on safety and around the worker to support participation element of companies through health rather than simply the these challenging physical safety attributes.

With the impact of the COVID pandemic and the legislative changes that will impact the contractor community in April 2021, we have been asked the question: “Is it the right time to launch a dedicated HSEQ recruitment service?” The decision was driven by a multitude of factors, but primarily by talking to our client base and gathering intelligence, it became apparent that it is not just about recruiting the right person at the right time. It is about a deeper understanding of specific health and safety manpower and project requirements which requires the skills, experience and

times.

One of the benefits of the changing work dynamic is that the stigma associated with the psychological health has all but disappeared which can only be a good thing. However, organisations need to consider that their employees are individuals and individual circumstances differ; what works for one person may not work for another. We as a sector are clearly used to managing risk, but we must collectively consider the much broader risks going into 2021 and aim to implement the new framework processes as seamlessly as possible for the physical and mental health benefits of all.

Risk & Assurance management and HSQE Recruitment support services to ompimise busainess performance. Quensh help you impove your safety behaviour and cultures whilst delivering profitable numbers, safely. Find out more at www.quenshspecialists.co.uk

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FOSSIL FUELS

DECEMBER

UK North Sea Oil & Gas Review By Tsvetana Paraskova

The coronavirus pandemic and the net-zero emissions pledges have turned the spotlight on the short- and longterm future of the UK North Sea oil and gas industry this year.

The second downturn in the oil and gas sector in just four years came just as the UK supply chain had largely recovered from the 20152016 crisis and was looking with more optimism to 2020. The COVID-19 pandemic, however, upended all previous forecasts for global and regional oil supply and investments in exploration as companies moved quickly to cut costs, including by reducing staffing numbers. The UK offshore industry started to count the jobs lost and the major industry associations began laying out pathways out of the crisis aligned with the energy transition and net-zero emissions goals.

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Net Zero Pledges from bp and Shell

UK Offshore Industry in Net Zero World

The top operators on the UK Continental Shelf (UKCS), bp and Shell, announced thousands of job cuts globally, reduced capital expenditures (capex), and slashed dividend pay-outs in the wake of the steepest oil price decline in recent memory, due to the pandemic.

The UK pledge to become a net-zero economy by 2050, the commitment to ‘build back greener’ from the COVID-19 crisis, and job losses at bp prompted the leading representative body for the UK offshore oil and gas industry, OGUK, to call for a fair transition to net zero, in which a low-carbon future and offshore jobs and skills are not in discrepancy.

They also pledged this year to become netzero energy businesses by 2050 or sooner as Big Oil in Europe embarked on a race to prove to environment-conscious investors and shareholders that they can remain relevant in the energy transition by allocating more financing to renewable energy and by streamlining their upstream oil and gas portfolios. Both bp and Shell continue to be committed to the UK offshore oil and gas production while reassessing upstream operations in other areas they consider noncore to their future business. bp said in its new strategy in August that it would reduce its oil and gas production by 40% by 2030 through active portfolio management and would not enter exploration in new countries. Two months earlier, bp had said it would cut close to 10,000 jobs, most of which by the end of this year. The majority of people affected will be in office-based jobs, bp’s chief executive officer Bernard Looney said.

bp said they will reduce oil and gas production by 40% by 2030 through an active portfolio management and won't enter exploration in new countries.

In August, Looney commented on bp’s new strategy to reinvent itself into an integrated energy company from an international oil company: “We believe our new strategy provides a comprehensive and coherent approach to turn our net zero ambition into action. This coming decade is critical for the world in the fight against climate change, and to drive the necessary change in global energy systems will require action from everyone.” Shell did not take too long to follow bp in the pledge to become a net-zero business by 2050 or sooner. The transformation at Shell and the review of its portfolio will mean that the supermajor will cut between 7,000 and 9,000 jobs by the end of 2022, chief executive Ben van Beurden said in September. “We have to have a role in helping our customers decarbonise: a mission of working with society to help it get to net zero. Because it is not good enough to just wait and see what society does,” van Beurden said. “That mission does mean dramatic change for Shell – and that includes changes to our business plans over time,” the firm’s top executive noted. “If we want to get there, if we want to succeed as an integral part of a society heading towards net-zero emissions, now is the time to accelerate. That is what we are doing,” van Beurden noted.

www.ogv.energy I December 2020

Shell did not take too long to follow bp in the pledge to become a net-zero business by 2050 or sooner.

Commenting on bp’s plan to cut 10,000 jobs, OGUK Chief Executive Deirdre Michie said in June that there was a “need to continue working with governments to deliver an inclusive, fair, and sustainable transition to a lower carbon future. This is the best way to protect jobs, create new business opportunities and ensure energy regions from the north east of Scotland to the east of England are not left in the dark.” A North Sea transition deal for the offshore sector is essential in meeting the need for secure, affordable energy to be produced with fewer emissions and to position the UK as a leader in developing low-carbon solutions, OGUK said in November, presenting its Autumn Snapshot of the Business Outlook 2020. “It could take two to three years to restart much of the capital investments that have been lost. This is reflected in the low business sentiment expressed by OGUK members as companies look to 2021,” Ross Dornan, Market Intelligence Manager, OGUK, said in the snapshot. “It is important that activity levels on the UKCS keep pace with those in other basins to ensure that it remains a competitive place for supply chain companies to anchor and invest in resources. These capabilities are crucial to maximise the UK’s resource potential, but also will have a vital role in providing the solutions required to achieve a net zero outcome by 2050,” OGUK said. According to the Just Transition Commission Advice for a Green Recovery in Scotland, a large-scale decommissioning programme could drive critical activity in the North Sea, maintain essential skills, and position the North Sea infrastructure for a new integrated future. “There is a need to create jobs in the shortterm that will allow us to retain this workforce and the associated supply chains, so that they can be redirected towards our net-zero transition,” the commission said. Commenting on the report, OGUK Chief Executive Deirdre Michie said: “We have a once in a lifetime opportunity to show how we as an oil and gas producing country can successfully build a more diverse and lower carbon energy mix in a way that embraces the skills and talents of our people and our indigenous industries.” Offshore jobs were impacted by the pandemic earlier this year. Worrying signs for employment in the sector emerged, with the uptake of furlough and continued suppression

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UK North Sea Oil & Gas Review

BRENT OIL PRICES OVER THE YEARS December review

YEAR AGO

- BRENT OIL PRICE 2019 - $67.31 Integrating the UK offshore energy sector, including closer links between oil and gas and renewables, can reduce carbon emissions from oil and gas production and longer term actively support delivery of the UK’s net zero target through technologies such as carbon capture and storage (CCS).This conclusion was drawn in the“UKCS Energy Integration: Interim Findings” report. The project considers how oil and gas infrastructure and capabilities can be leveraged for CCS, and to support renewable energy production and hydrogen generation, transportation and storage. of global energy demand impacting the industry like many others in the wider economy, OGUK said in its first insight into the impact of the pandemic on offshore jobs. Official figures about employment in the sector and the supply chain will not be available until 2021, but those worrying signs highlight the need for governments, industry, and regulators to work together to protect the jobs and skills that will be needed to meet UK energy needs now and as the country moves to a lower carbon future, the industry body said at the end of October.

be essential as we work to support UK energy needs both now, and in a lower carbon context,” report author OGUK workforce engagement and skills manager Dr Alix Thom said. “A North Sea Transition Deal, supported by the UK and Scottish governments, can act as a catalyst for this future, and in so doing will provide certainty on the sustainability for the sector in difficult times,” Thom said.

YEARS AGO

- BRENT OIL PRICE 2015 - $38.01 Oil price falls to 11-year low with global glut expected to deepen in 2016

“As our report shows, the recruitment and retention of diverse and talented people will

Brent crude hits low of $36.05 a barrel with industry experts saying price could drop to $20 before supply adjusts to demand. The price of oil has fallen to its lowest level in 11 years as commodity markets responded to signs that the global glut of oil will deepen in 2016.

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YEARS AGO

- BRENT OIL PRICE 2010 - $91.45 An internal safety review showed that the company operating BP's Deepwater Horizon oil rig in the Gulf of Mexico - narrowly avoided a similar accident in the North Sea, four months earlier.

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The blowout happened on the Sedco 711 platform on 23 December 2010 as the crew was preparing to switch from a drilling operation to production, bringing the reservoir in stream.

International Growth and Diversification in the Energy Sector

The hidden value behind data

Technology & Innovation

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Conducted by Craig Jamieson and Oddmund FĂ¸re @ Rystad Energy

Service Market Drivers Greenfield project sanctioning

Database version: Rystad Energy Databases November 2020 Review

Sanctioning year (2016 - 2022)

Year (2016 - 2022)

RYSTAD ANALYTICS

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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 Energyâ&#x20AC;&#x2122;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.

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Conducted by Craig Jamieson and Oddmund FĂ¸re @ Rystad Energy

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Offshore Rig Market Analysis Contract backlog

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UKCS Status Report

WORLD PROJECTS

WORLD PROJECTS MAP

Saipem has received the authorisation to proceed with the final phase of the Payara project from Esso Exploration and Production Guyana Limited (EEPGL), a subsidiary of ExxonMobil.The authorisation allows for the finalisation of the detailed engineering and procurement activities and full execution of the contract scope.

DECEMBER 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

GUYANA ExxonMobil US$9bn

ROMANIA Hidroelectrica US$650mn

AUSTRALIA Chevron US$4bn

PAPUA NEW GUINEA - ExxonMobil US$4bn

NORWAY Equinor US$4.5bn

Romania's upper house of parliament has passed legislation that will establish a support mechanism for offshore wind developments in the country. The law will still need to be approved in the lower house, the chamber of deputies. Romania has a theoretical offshore wind potential in its part of the Black Sea of 76GW overall, 22GW of which are for fixed foundations and 54GW are for floating.

Australia’s National Offshore Petroleum Safety & Environmental Management Authority (Nopsema) has approved Chevron’s environment plan for the pipeline and subsea infrastructure for the Gorgon Stage 2 development.

Papua LNG development and P'nyang gas project are in the process of being separated to enable Papua LNG to move forward.

Equinor has officially announced the award of conceptual design contracts to Sevan SSP, KBR, Aker Solutions, and Aibel for the FPSO for the Wisting development. Is has also awarded conceptual design contracts to Aker Solutions, TechnipFMC, OneSubsea Processing, IKM Ocean Design and Kongsberg Maritime for the SURF, SPS and processing equipment.

www.ogv.energy I December 2020

Chevron could commence work on the subsea installation campaign as early as Q4 2020.

This follows a parliamentary session on 11 November in which six amendments were passed relating to legislation on the Papua LNG development.

WORLD PROJECTS

03 15

SPAINRepsol US$222mn

Repsol has announced a project to be located at the Cartagena refinery that will produce 250,000 tpy of advanced biofuels for aircraft, trucks, and cars. The new facility will include the commissioning of a hydrogen plant that will fuel a new hydrotreatment unit equipped with cutting-edge technology. Repsol has selected Axens Vegan® technology for this project. Vegan® technology is able to hydrotreat a wide range of lipids and to produce low-density and high cetane renewable diesel as well as renewable sulfur-free jet fuel.

FRANCE Total US$200mn

GERMANYBP US$100mn est.

CAMEROON New Age Ltd US$500mn

Construction of a 400,000 tpa biofuel plant, in Grandpuits-BaillyCarrois, France. This plant is a part of the of the Grandpuits refinery conversion project aimed to transform the refinery into a zerocrude platform. Honeywell UOP will provide technology licenses, basic engineering, specialty equipment and catalysts for the project.

BP and Ørsted have agreed to partner on the development of industrialscale production of green hydrogen to power the crude oil refinery at Lingen. The companies signed a letter of intent to jointly define and potentially build an initial 50 MW electrolyser and associated infrastructure at the refinery. A final investment decision could be made by early 2022, with the plant potentially operational by 2024.

NewAge and Bowleven have engaged Cofarco as their lead financial advisor to help raise finance for the project, for which a final investment decision is targeted for 2021, assuming the partners secure a licence extension. TechnipFMC's FEED work is expected to finish by the end of November and is currently on time and within budget.

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CONTRACT AWARDS

www.ogv.energy I December 2020

CONTRACT AWARD Sparrows Group awarded five-year Morecambe Hub contract with Spirit Energy Sparrows Group has been awarded a five-year contract by Spirit Energy for the provision of crane maintenance and lifting services across its Morecambe Hub assets in the East Irish Sea (UK Continental Shelf).

the DP6 and DP8 cranes for Spirit Energy, we’re excited to be working with the team again to deliver a longer, more sustained lifting inspection and maintenance campaign in one of the UK’s most important gas producing hubs.

The Morecambe Hub comprises of six fields, three of which have been operated by Spirit Energy for over 30 years. Gas-producing, the North Morecambe, South Morecambe and Rhyl fields are located approximately 25km south west of Walney Island, west England. The contract will see Sparrows deliver crane maintenance on all fixed lifting assets across the Morecambe Central Processing Complex, DP6, DP8 and DPPA platforms. The provision of crane engineering, design services and technical authority will be managed from the company’s headquarters in Aberdeen.

“Having a clear strategy for managing lifting assets is essential for reducing equipment downtime and increasing safety. I am extremely proud of our dedicated people who consistently deliver a high-quality service to our clients and we look forward to working with the Spirit Energy team to support their ongoing operations.”

Stewart Mitchell, chief executive officer of Sparrows said: “Having recently refurbished

One of the largest gas fields in the UKCS, at its peak, the Morecambe Hub met 20% of the UK’s domestic gas demand. Gas from all the fields is processed at Barrow Gas Terminals, which is located near Barrow-in-Furness in Cumbria, before entry into the National Transmission System.

CONTRACT AWARDS Expro bags Chevron contract for riserless well intervention system

Expro Group Australia, a subsidiary of Expro International Group Holdings, has secured a contract from Chevron Australia for its subsea riserless well intervention (RWI) solution. The five-year contract covers the supply of light well intervention vessel services for the Chevron-operated Gorgon facility, Expro Group said. The RWI system provides a wire through-water integrated solution for carrying out intervention and/or abandonment operations on all types of subsea wells, according to the company. The intervention package is complete with well access and multiple conveyance methods, including slickline, eline, and the company’s new CoilHose technology, which substitutes coiled tubing’s conventional steel pipe with hose. The Expro RWI system has been developed as part of wider Subsea Well Access portfolio, which also consists of Subsea Test Tree Assemblies (SSTTA), as well as an Intervention Riser System (IRS), ensuring customers have the correct solution for all subsea well access requirements. Gary Sims, Expro Senior Area Manager, said: “Australia is an important market for us and we recently invested in an $11 million multi-purpose built facility in Perth which will support the Chevron contract. The facility will have a 2,100 square metre re-enforced dedicated light well intervention area for storage and maintenance of specific equipment.

“We continue to build our local Australia Subsea Well Access expertise. Along with our vessel partner, we will provide a highly skilled, predominately local Australian crew”. Graham Cheyne, Vice President of Well Access and Subsea, added: “In 2019, we expanded our subsea intervention capabilities with the introduction of two new well access solutions to the market – the RWI and the IRS. Our partnership with an intervention vessel provider

combines our efforts to provide a full subsea package to meet our customers’ requirements. “Built on proven technology and service expertise, this contract award allows us to demonstrate our enhanced subsea strengths. “Since introducing our new well access solutions, we have secured a number of exciting new contracts in the APAC region, complementing our core subsea landing string business”.

Three contracts awarded to the value of $455 million Halliburton’s scope of work will include intervention services and liner hanger, while Schlumberger will deliver wireline services. The awards are expected to make a significant contribution to local content in Brazil. The average local content of the three contracts, considering the majority of services will be performed in Brazil, is estimated at 74%. “Brazil is a core area for Equinor, and Bacalhau is an important asset in the Brazilian pre-salt Santos area. Together with our partners, we are currently maturing the project towards a final investment decision (FID) which is planned in 2021,” said Trond Bokn, acting senior vice president for project development in Equinor. Equinor has, on behalf of the partners ExxonMobil and Petrogal Brasil, awarded Baker Hughes, Halliburton and Schlumberger contracts for drilling and well services on the Bacalhau field in Brazil. The total value of the three contracts is estimated at US$455 million. The contracts have a firm period of 4 years and two 2-year options.

www.ogv.energy I December 2020

“The awards build further on our positive cooperation experience with the three selected suppliers in our projects worldwide. They will be essential to ensure safe and efficient drilling and well operations on the Bacalhau field,” said Peggy Krantz-Underland, Equinor’s chief procurement officer. The contract scope awarded to Baker Hughes covers drilling services and completion.

Earlier this year, the partnership entered into FEED contracts with early commitments and pre-investments for the Bacalhau field with MODEC for FPSO and Subsea Integration Alliance (SIA) for SURF. The awards have an option for the execution phase under a lump sum turnkey contract setup which includes engineering, procurement, construction and installation (EPCI) for the entire SURF and FPSO scopes.

CONTRACT AWARDS

GDI land Decommissioning contract with North Sea Operator Aberdeen headquartered company GDI have recently announced a successful contract award through competitive tender for the provision of services to support a decommissioning project with a North Sea operator. Located on the city’s Queens Road and with a growing staff base of over 60 employees, GDI provide efficient technology and safety driven solutions to their clients. Their philosophy is to leverage technology in order to reduce cost and manpower requirements and increase safety and quality. GDi contend that they stand out from the conventional laser scanning and engineering service providers as their technology-led approach is delivering solutions which enhance visualisation, optimise design/ engineering and offer a unique and powerful inspection technology. Gareth McIntyre, R&D Director at GDI commented on the recent contract success: “The ability to execute planning, engineering and inspection projects without mobilising any personnel to facilities is disrupting conventional procedures and delivers massive efficiencies and opportunities to the decom sector.”

GDI’s partnership with the Oil and Gas Technology Centre (OGTC) has underlined their commitment to innovation and their goal to disrupt conventional business models from the mainstream service companies and this recent contract success is another example of how their strategy is delivering results. A report launched by Oil and Gas UK (OGUK) last year illustrated the potential growth of the decommissioning sector. It noted that

decommissioning oil and gas infrastructure represents almost a tenth of the oil and gas industries overall expenditure and will cost around £15.3 billion over the next decade. GDI feel they are the perfect fit for this ever-expanding market as their approach and philosophy present a significant opportunity for operators, in an environment where constrained operations and budgets are in place.

McDermott awarded FEED contract for Ichthys gas field development McDermott International, Ltd has been awarded a contract to provide front end engineering and design (FEED) services for the INPEX-operated Ichthys LNG field development. The award is for a booster compression module FEED with optional engineering, procurement, and construction (EPC) for the project. The booster compression module will be added to the Ichthys LNG offshore central processing facility, located off the northwest coast of Western Australia. “This award illustrates McDermott’s continuing

Maersk Drilling secures one-well contract extension for Maersk Viking Brunei Shell Petroleum Company Sdn. Bhd. (BSP) has exercised the option to add exploration drilling of one deepwater well to the work scope of the drillship Maersk Viking. The contract extension has an estimated duration of 35 days, with work expected to commence in May 2021 in direct continuation of the rig’s previously agreed work scope. The contract value of the extension is approximately US$7.1 million, including additional services provided. Maersk Viking is a high-spec ultra-deepwater drillship which was delivered in 2013. It is currently preparing for the drilling campaign for BSP, which is expected to commence in March 2021, after having been warm-stacked in Johor, Malaysia.

expertise in complex offshore EPCI,” said Ian Prescott, McDermott’s Senior Vice President, Asia Pacific. “Our work to date demonstrates our qualifications to deliver smart solutions in challenging environments – and to the highest safety and technical standards.” McDermott is also undertaking umbilicals, risers, and flowlines (URF) as part of an expansion of the existing Ichthys LNG facilities. Engineering will be completed in McDermott’s Asia Pacific headquarters in Kuala Lumpur. The FEED will commence in October 2020.

REGIONAL REVIEWS By Tsvetana Paraskova

MIDDLE Energy Review EAST

Middle Eastern oil and gas producers started 2020 with optimism that the OPEC+ oil production cuts were rebalancing and stabilising the market. Oil prices were trading above $65 per barrel in early January and spiked to nearly $70 when Iran’s top General Qassem Soleimani was killed by a US drone attack at the Baghdad airport. While the world was watching the latest flare-up in the US-Iran tension in the Gulf and its potential repercussions on the oil and gas production in the Middle East and on oil prices, the ‘black swan’ event of the year appeared.

By that time, however, oil storage in the world had swelled to record levels. The price of the U.S. benchmark oil, West Texas Intermediate, crashed to below zero at -$38 on 20 April—the first time ever the price of oil had plunged into negative territory.

The Black Swan The coronavirus that first appeared in China quickly spread to other parts of the world and by late Februaryearly March, governments were already imposing travel restrictions and lockdowns in an attempt to contain the COVID-19 infections. Economies reeled from the closure of hospitality services and tourism, air travel restrictions, and non-essential shops closure. Oil and gas demand took a hit from limited travel, increased work-from-home, and slowdown in all industries. Oil prices started to slide in February and the largest oil and gas producers in the Middle East began fretting that declining global oil demand will create a new major glut on the market. The OPEC+ coalition of OPEC – where Middle Eastern producers are the most influential – and a dozen non-OPEC countries led by Russia started bickering about what to do with their production cut pact in light of the crashing global demand.

OPEC+ rift and reconciliation The leaders of the OPEC+ coalition – Saudi Arabia and Russia – broke their three-year-long bromance amid disagreements over how to manage oil supply to the market. Saudi Arabia, the most influential OPEC member and its largest producer, went on an all-out price war with Russia and flooded the market with oil in April, additionally pressuring prices down. The brief but devastating price war in March and early April added to the already grim outlook for oil. Saudi Arabia and Russia, also urged by US President Donald Trump, patched up their differences in April, and agreed in a new pact that OPEC+ withhold a record 9.9 million bpd from he oil market in the hope of stabilising prices.

www.ogv.energy I December 2020

Oil prices started to slide in February and the largest oil and gas producers in the Middle East began fretting that declining global oil demand will create a new major glut on the market

Middle East oil & gas economies hit hard by COVID, price crash All economies in the world suffered from the impact of the coronavirus in the second quarter, but the oil-dependent economies in the Middle East suffered a double whammy from the pandemic-related lockdowns that hit non-oil revenues and from the crash in oil prices that severely constrained oil revenues. The biggest oil and gas producers in the Middle East enacted austerity measures to reduce government expenditures at a time when their oil revenues – a large part of Middle Eastern government budgets – were crashing. The world’s biggest oil exporter Saudi Arabia, for example, tripled the value added tax (VAT) to 15% from 5% beginning in July 2020 and discontinued the cost-of-living allowance for government workers as of June 2020. The Kingdom also halted major infrastructure projects. In the second quarter of 2020, Saudi Arabia’s economy contracted by 7%, with unemployment rate hitting a record high. The flash estimate from the General Authority for Statistics of Saudi Arabia showed that the economy shrank less in the third quarter, but was still in contraction. Gross domestic product (GDP) at constant prices dropped by 4.2% in the third quarter of 2020 compared to the same quarter of 2019. The markets and oil prices stabilised in the third quarter, and oil was trading in a narrow range of around $40 a barrel for most of the period between July and September.

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Middle East However, the second COVID wave in many major economies, including in the UK, Europe, and the US, threatens the fragile oil demand recovery seen since June.

In November, ADNOC and France’s Total announced the delivery of the first unconventional gas from the United Arab Emirates (UAE), from the Ruwais Diyab Unconventional Gas Concession located 200 kilometres west of Abu Dhabi city.

Renewed pressure on prices and demand is bad news for the economies of the Middle Eastern oil and gas producers which depend to a large extent on income from hydrocarbon sales. The six countries in the Gulf Cooperation Council (GCC)—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE)—will see their economies shrink by 6.0% in 2020, before rising by 2.3% in 2021, the International Monetary Fund (IMF) said in October in its update on the Regional Economic Outlook for the Middle East and Central Asia. Fitch Ratings revised down in early November its outlook on Saudi Arabia to ‘negative’ from ‘stable,’ to reflect “the continued weakening of its fiscal and external balance sheets, which has been accelerated by the coronavirus pandemic and lower oil prices, despite the government's strong commitment to fiscal consolidation.” Fitch expects the Saudi budget deficit to widen to 12.8% of GDP in 2020 (equivalent to about US$90 billion), from 4.5% of GDP in 2019. This reflects a 33% drop in oil revenue, a 5% decline in non-oil revenue, and 1% higher spending compared with last year. Because of the close relation between the government and the Saudi state oil giant Aramco, Fitch also revised its outlook on Saudi Aramco to ‘negative’ to reflect the influence the state exerts on the company through strategic direction, taxation, and dividends, as well as regulating the level of production in line with OPEC commitments. Saudi Aramco reported reduced profits in each of the three quarters of 2020 so far, due to the price and demand crash, but continued to commit to paying $75 billion in annual dividends to shareholders, the biggest shareholder being the Kingdom of Saudi Arabia with over 98%.

Middle East producers continue to sign deals to monetise resources While the world watches every move of Saudi Arabia in OPEC and the OPEC+ coalition for clues about oil supply from the Middle East, other oil and gas producers in the Gulf have made big announcements this year about projects to monetise their oil and gas resources and increase their production in the medium and long term. 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 in 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. “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.

ADNOC LNG also signed in November long-term supply agreements with Vitol and Total.

ADNOC announced in 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.

“These agreements demonstrate the success of our commercial strategy in unprecedented times and confirm the market’s growing confidence in demand for natural gas,” ADNOC LNG’s chief executive Fatema Al Nuaimi said. Qatar Petroleum signed on 1 June what it called “the largest LNG shipbuilding agreements in history” to secure more than 100 ships for its LNG growth plans. “As I have previously stated, we are moving full steam ahead with the North Field expansion projects to raise Qatar’s LNG production capacity from 77 million today to 126 million tons per annum by 2027 to ensure the reliable supply of additional clean energy to the world at a time when investments to meet these requirements are most needed,” said Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and President and CEO of Qatar Petroleum. “We expect that oil demand will grow to over 105 million barrels per day by 2030, and continue to supply over half the world’s energy needs for many decades to come,” ADNOC’s Al Jaber said in his keynote address at this year’s online Abu Dhabi International Petroleum Exhibition Conference (ADIPEC). “At the same time, the petrochemicals sector will continue to grow at a healthy pace through and beyond 2050, in line with a steadily expanding global middle class. These are long-term positive trends and they highlight the central role that our industry can and should play in a post-Covid recovery,” Al Jaber noted.

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By Tsvetana Paraskova

Europe

Energy Review

The completion of a major new natural gas corridor in southern Europe, plans for green recovery from the pandemic in the European Union and the UK, and net-zero pledges from the biggest European oil and gas firms from Norway to Spain topped the energy news flow in 2020—a year in which renewable energy projects and commitments continued while the oil and gas industry saw another downturn.

Trans Adriatic pipeline begins commercial Four and a half years after construction started, the Trans Adriatic Pipeline (TAP), a strategic piece and the last link in the Southern Gas Corridor (SGC) project, became operational in the middle of November, paving the way to diversification of gas supplies to southern Europe away from Russia. TAP is the European leg of the Southern Gas Corridor, a gateway project that will transport 10 billion cubic metres (bcm/a) of new gas supplies from Azerbaijan to multiple markets in Europe. “As a new transmission system operator, developed and built in compliance with best industry practices and standards, TAP enables double diversification: a new, reliable and sustainable energy route and source of gas reaching millions of European end-users, for decades to come,” said Luca Schieppati, TAP’s Managing Director. Commenting on the start of commercial operations, Murray Douglas, Wood Mackenzie Research Director, said: “This is a long-awaited and impressive milestone for all stakeholders. It is the first delivery of contracted Azerbaijani gas beyond Turkey, provides a fourth gas import pipeline corridor for the EU, boosts diversification and energy security, and is an inflection point for importreliant gas markets in Italy, Bulgaria and Greece.” “All eyes will be on the binding phase of TAP’s market test in summer 2021. This could be a bellwether for the post-lockdown recovery of European gas fundamentals,” Douglas noted.

Johan Sverdrup oil field credit: Equinor

www.ogv.energy I December 2020

Major oil & gas firms commit to Net Zero emissions Due to the crash in oil and gas prices and reduced demand for both oil and gas in the pandemic, the largest oil and gas companies in Europe reported losses or significantly lower earnings in their quarterly financial reports in 2020. But all of them, alongside the major UK offshore operators bp and Shell, announced plans to become net-zero energy businesses by 2050 or sooner and committed to gradually cut emissions not only from their operations but also from the products they sell. Spain’s Repsol was the first major firm to announce such a target—back in December 2019 and before the COVID-19 pandemic slashed demand for oil and fuels in 2020, with an uncertain timeframe as to when global oil demand will return to pre-crisis levels.

“We want to be main actors in a Just Energy Transition, in which we believe, and is central to Eni’s transformation,” CEO Claudio Descalzi said. France’s Total also confirmed its net zero ambition in September, aiming to become a broad energy company and grow its energy production by one third, with half the growth from LNG and half from electricity, mainly from renewables. Total’s chief executive Patrick Pouyanné told French newspaper Le Parisien in September that the firm aims to be among the world’s top five producers of renewable energy. The company’s operations mix today is 55% oil, 40% gas, and less than 5% electricity from renewables, Pouyanné said, noting that in 2050, Total’s operations will be divided into 20% oil, 40% gas, and 40% renewable energy.

Repsol set a target for net-zero emissions by 2050 both from its production and products, with interim targets in 2025, 2030, and 2040. Repsol is focused on expanding its renewables portfolio, boosting biofuel production, generating low-carbon electricity, and develop technologies to cut emissions from the entire value chain.

Norway’s Equinor was the last of the big oil companies in Europe to announce a net-zero energy company ambition. The announcement came in early November, the day on which Anders Opedal took over as CEO and President of Equinor. The company’s ambition, which includes emissions from production and final consumption of energy, shows Equinor’s continued commitment to long-term value creation in support of the Paris Agreement, it said.

“We do it with the utmost confidence that we’re investing in the future, and addressing the significant challenges that lie ahead with strategic clarity is what will enable us to turn them into opportunities,” Repsol’s chief executive Josu Jon Imaz says.

Renewables, especially offshore wind, carbon capture and storage (CCS) and natural sinks, as well as the development of competitive technologies for hydrogen, will be the pillars of Equinor’s strategy to become a broad energy company.

Italy’s Eni announced in June a “new business structure to be a leader in the energy transition,” creating an Energy Evolution division in the company to accelerate its plans to significantly boost renewable power generation and biofuels production.

“Equinor is committed to being a leader in the energy transition. It is a sound business strategy to ensure long-term competitiveness during a period of profound changes in the energy systems as society moves towards net zero,” Opedal said in a statement.

Europe

“The expected rapid deployment of offshore wind will require a substantial increase in the size of turbines, which implies a need for major expansion of UK manufacturing capacity. The government’s recent launch of a new scheme to bolster large-scale portside manufacturing hubs, involving financial support to also strengthen offshore wind manufacturing capability, will assist this transition,” said Gero Farruggio, Head of Renewables at Rystad Energy. In November, the UK government launched a taskforce to support the creation of 2 million skilled jobs by 2030 to build back greener and reach net zero emissions by 2050. The taskforce will focus, among other areas, on supporting workers in high carbon transitioning sectors, like oil and gas, to retrain in new green technologies. Scotland raised in October its estimate for offshore wind capacity by 2030. Scotland’s Energy and Climate Change Directorate now believes that the initially set target of 8 GW represents the lower end of a range that might be achieved by 2030, and that as much as 11 GW of installed offshore capacity is possible.

UK and EU support green recovery and renewables The United Kingdom will aim to become a global leader in offshore wind energy, powering every home in the country with wind by 2030, Prime Minister Boris Johnson said in October. The plan is part of the UK’s ambition to become a net-zero economy by 2050 and pave the way to a green recovery from the pandemic. The government will make available £160 million to upgrade ports and infrastructure across communities like in Teesside and Humber in Northern England, as well as Scotland and Wales, to boost offshore wind capacity. The investment is expected to create 2,000 construction jobs and help the sector support up to 60,000 jobs directly and indirectly by 2030 in ports, factories, and the supply chains, manufacturing offshore wind turbines and delivering clean energy to the UK. “Powering every home in the country through offshore wind is hugely ambitious, but it’s exactly this kind of ambition which will mean we can build back greener and reach net zero emissions by 2050,” UK Business and Energy Secretary Alok Sharma said. The UK’s ambitious goal to double its renewable energy capacity by 2030 will be achieved as early as by 2026, thanks to wind power investments, Rystad Energy said in an analysis in October. Total installed solar and wind power capacity is set to jump to 64 gigawatt (GW) in 2026 from nearly 33 GW today, with offshore wind taking over the throne as the country’s biggest green energy source. Offshore wind capacity will continue to rise after 2026 and reach nearly 40 GW by the end of the decade, Rystad Energy said.

The United Kingdom will aim to become a global leader in offshore wind energy, powering every home in the country with wind by 2030.

Maximising the opportunities to innovate across the renewable and fossil fuel sectors could create more than 200,000 new jobs across the UK and contribute more than £2.5 trillion to the nation’s economy by 2050, Wood Mackenzie said in a report for the OGTC in September. Delivering a techenabled integrated net zero energy future will cost £430 billion but generate more than £2.5 trillion in economic impact to the economy, according to WoodMac. Innovation in the renewable and oil and gas sectors could also create a diversified energy sector, support a new generation of highly-skilled jobs, and open up the UK export potential, the report found. “Just as the UK was a world-leader in the development of offshore oil and gas, it now has the unique opportunity to spearhead the offshore sector’s transition to a net zero energy system,” Malcolm Forbes-Cable, vice president, upstream consulting at Wood Mackenzie, said. The European Union is also looking at renewables to help ‘build back greener’ and to achieve its carbon neutrality target for 2050. The European Commission has proposed a major recovery plan for the EU after the coronavirus crisis. The plan will support the green transition to a climate-neutral economy via funds from Next Generation EU, a new recovery instrument. “The recovery plan turns the immense challenge we face into an opportunity, not only by supporting the recovery but also by investing in our future: the European Green Deal and digitalisation will boost jobs and growth, the resilience of our societies and the health of our environment,” European Commission President Ursula von der Leyen said.

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By Loren Steffy

Two Big Changes for the U.S. Oil Patch: Gas and Biden It’s been a year for the unexpected, the unpredictable and the improbable, and as 2020 winds to a close, the U.S. energy industry finds itself confronting two factors that would have seemed unimaginable in January: gas is the new oil and Joe Biden is the new president. As the COVID-19 pandemic rages on, with cases hitting records across the U.S. and deaths topping a quarter of a million people by November, the hopes for a late-year resurgence of oil demand evaporated. Natural gas, however, is a different story. Gas producers are seeing signs of a recovery that has continued even amid the pandemic’s second wave. Benchmark U.S. natural gas prices rose 33% in October, hitting a two-year high, while oil prices fell 11% to their lowest point since June. Natural gas is less affected by the lockdowns that are once again being instituted in several states. Lockdowns hurts transportation demand, and therefore oil, but in the U.S., natural gas primarily is used for heating and electricity generation, both of which have remained steady heading into winter. As a result, the market value the six largest publicly listed Appalachian gas companies rose about 18% this year, while the value of the 25 largest oi producers fell 53%.

U.S. Meanwhile, the industry is greeting the advent of Joe Biden’s presidency with trepidation. While Biden hasn’t embraced the extreme anti-fracking measures that some Democrats favour, he has advocated an aggressive agenda to combat climate change and has suggested he may suspend leases for new drilling on federal lands and waters. In mid-November, the Trump administration held is final offshore lease auction for the Gulf of Mexico, and companies rushed to secure areas amid concern that it may be their last opportunity for a while. The government leased about 518,000 acres, bringing in about $121 million in bids, more than the $100 million it expected. During the campaign, incumbent president Donald Trump tried to cast his opponent as an enemy of the oil business, saying Biden would “destroy” it. But it’s hard to imagine how much more damage the new president could do after the devastation the industry has endured this year. Oil companies have cut some 118,000 jobs— and counting—since the pandemic began. In the past five years, almost 250 producers have filed for bankruptcy—almost half of them in Texas. In the third quarter alone, filings jumped by 21% from a year earlier, according to the Dallas law firm Haynes and Boone. Oil prices, which started the year above $60 a barrel have fallen by about a third since then, and that’s only after recovering from a plunge in late April that briefly took West Texas Intermediate futures into negative territory for the first time ever. Investors have fled the industry as well. Energy is now the poorest performing sector among the 11 components of the Standard & Poor’s 500 Index. By late November, the broad market was up more than 12% since January while the energy sector had fallen more than 37%. After years of relying on the industry’s steady performance, investors increasingly are looking elsewhere for returns. Blackstone, the world’s biggest fund manager, in late September pledged to cut carbon emissions in its new investments by 15% within the first three years of buying a company or asset. According to a recent survey, 33% of institutional investors who don’t already do so are considering environmental, social and governance criteria for investment decisions, up from 12% last year. The value of assets governed by socalled ESG mandates has almost doubled during the past four years to $40.5 trillion.

Benchmark U.S. natural gas prices rose 33% in October, hitting a two-year high

Gas producers are also benefitting from a decline in oil production. Fracking activity in North America may have peaked in October, according to Rystad Energy. Many oil companies produce natural gas as a byproduct, which created excess supply and kept natural gas prices low. As oil production declines, and excess gas along with it, gas producers may enjoy higher and more stable prices heading into 2021.

In recent years, as low interest rates kept capital flowing into the Oil Patch, producers spent more

drilling wells than they made selling the oil and gas they pumped. Investors grew weary of the overspending, and last year, the easy money started drying up. A Biden presidency, in other words, may be the least of the industry’s worries, especially since presidents typically have little more than a marginal impact on oil and gas production. After all, Trump’s predecessor, Barack Obama, restricted drilling on federal lands, delayed projects such as the Keystone pipeline and imposed a moratorium on drilling activity in the Gulf of Mexico after the Deepwater Horizon disaster, yet domestic oil production surged 90% during his first seven years in office—the fastest production growth in American history. That surge came from hydraulic fracturing, which was developed with minimal government support through both Republican and Democratic administrations. Biden may, at some point, suspend or scale back leasing programs on federal lands, which could crimp the industry’s long-term growth because fracked wells typically play out more quickly than conventional ones, requiring producers to drill more to maintain production levels. At the same time, curtailing production can only help an industry awash in too much of it. And Biden might also try to limit drilling in the Gulf of Mexico. But such restrictions are unlikely to happen quickly. The government collects billions of dollars in royalties—some $30 billion from the Gulf alone. A time of record deficits isn’t the time to start cutting revenue. Nor is it a time to cause more job losses in an industry already awash in them. Perhaps that’s why President-elect Biden has remained mum on energy since winning the election. But there’s one thing that Biden could do—and hopefully will do quickly: get the coronavirus under control. That might help restore demand and return some stability to the oil and gas industry. Of course, Biden also faces mounting pressure from his party’s left wing to make bold moves in combating climate change. His responsive could pose a threat to the energy industry, but it also could present an opportunity. If Biden is serious about alleviating the partisan divisiveness hamstringing our political process, this may be a good place to start. The industry recognises that policy, public sentiment and investor interest is driving the market toward low-carbon solutions and away from fossil fuels. America will still need fossil fuels, of course, but in increasingly smaller quantities. This change isn’t being driven by the government, but by economics. In the past decade, the cost of wind and solar has fallen from the most expensive to the cheapest form of energy — cheaper than oil and gas even without federal subsidises, according to an analysis by the investment firm Lazard. Natural gas is already fuelling the transition from coal-fired electricity to gas generation. Gas plants produce far less carbon, and they’ve encouraged the spread of renewables. Gas plants can start and stop quickly, allowing them to work in tandem with renewables to keep the lights stay on when the sun isn’t shining or the wind isn’t blowing. Gas produced from fracking is an essential step toward a cleaner energy future. As 2020 comes to a close, a new landscape is emerging in the U.S., one in which gas plays a more prominent role, and environmental policy increasingly sets the agenda.

www.ogv.energy I December 2020

AUSTRALIA

MEMBER'S FEED

“The View from Down Under” By Andy Hogan

Pragma has combined innovative design and additive manufacturing (AM) techniques to bring the industry’s first 3D metal printed, ultra-high expansion, bridge plug to market. Pragma’s patented M-Bubble bridge plug has successfully completed final lab testing and is due to begin field trials by the end of 2020.

G’day from Perth!

Spring is in the air with positive news from several companies on their respective vaccine developments. Internal borders continue to open up between States in Australia, the most recent outbreak of the virus in Adelaide appears to have been contained by prompt action from the South Australian authorities. Latest from New Zealand is that the Government department (MBIE) with responsibility for the Tui Field, has reached agreement with BW Offshore, the owners of the FPSO Umuroa, whereby the MBIE will cover the operating costs of the FPSO while it awaits disconnection from the wells. This will result in the local entity of BW Offshore now ceasing the voluntary liquidation process they had started last month. BW report that subject to ongoing pandemic restrictions they expect the FPSO to be disconnected over the first half of 2021. The tender for decommissioning of the Tui Field is eagerly awaited, following on from the RFI which was issued by the MBIE in June this year. Other news from New Zealand is that Beach Energy and their JV partners, OG&G and Discover Exploration, have decided not to drill the Wherry Exploration well in the Canterbury Basin in Q3 2021. Prior to this there had been some urgency as the licence is due to expire in November 2021. It is not known if JV will apply for a license extension.

should extend the life of the field to 2024. Inpex are commencing the 3+2-year contract for Phase 2 development of the Ichthys Field off NW Australia with the Maersk Deliverer Semi MODU. The Ocean Apex semi started drilling on the Ironbark Prospect for BP and partners in October, the results from this well are eagerly awaited, it is expected to reach TD early in Q1 2021. The rig is believed to have some idle time after Ironbark before recommencing operations for Woodside later in 2021 off the NW coast.

Salus Technical, have developed Bowtie Master with the intention of helping organisations to understand and manage the risks of major accident hazards, thereby reducing the incidence of these. A cloud-based application, Bowtie Master facilitates the building and sharing of bowtie diagrams. While bowtie diagrams have been in use for a number of years as a risk assessment tool across a range of industrial sectors, this new, intuitive software offers unprecedented capabilities to design, collaborate on and share these diagrams across disciplines and organisations.

Jadestone and SapuraOMV are believed to be planning to start their delayed 2020 drilling campaigns with the Valaris 107 jackup in Q2 2021. Beach Energy are preparing to start drilling in their Otway licenses early next year with the Diamond Ocean Onyx. Carnarvon continue to plan to re-develop the Buffalo field in 26 meters of water and will likely seek a rig of opportunity.

Offshore activity in 2021 looks to be sufficient to keep 6 MODUs active on an intermittent basis off the coasts of ANZ in 2021. Santos are planning to use a semi for infill drilling on Van Gogh from mid Q1 2021, subject to FID. They are also planning to use a jackup to drill 3 wells on the Bayu Undan Field in Timor Leste waters starting early in Q2 2021. This reverses the decision taken by the previous field owners, ConocoPhillips, to decommission the field over 2021 / 2022. Subject to the wells coming in as planned, this

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

Join the OGV Community and take part in our fourth online event on the subject of "Risk Management and Wellbeing" on December 17th at 2pm. In partnership with Step Change in Safety, we will be looking back at the impact of the pandemic on the Energy sector and how the supply chain have overcome the substantial operational challenges that they have had to face. Our panel of experts will also be looking into the impact of the pandemic on mental health and exploring how the industry can do more to help. OVER THE LAST MONTH WE HAVE SEEN A NUMBER OF NEW SIGN-UPS TO THE OGV COMMUNITY

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www.ogv.energy/register

RISK MANAGEMENT & WELLBEING

By Tsvetana Paraskova

The pandemic put

RISK MANAGEMENT in Oil & Gas to the test

Exploration and production (E&P) companies reassessed their investment plans and re-phased projects and planned capital expenditure. Drilling activity was severely hit by the pandemic as many companies chose in the initial aftermath of the COVID-19 pandemic in the spring to defer activity, in order to minimise operational risk and uncertainty over the supply of critical equipment. As a result, OGUK anticipated in the spring that there could be a 20–30% reduction in revenues across the supply chain along with similar levels of decline in earnings before interest, tax, depreciation and amortisation (EBITDA) margins. Total expenditure in the UKCS is expected to drop by around 30% this year as companies reduced activity levels, OGUK said in its Autumn Snapshot of the Business Outlook 2020.

Risk management has always been one of the most important aspects of management of energy infrastructure and oil and gas installations.

“It could take two to three years to restart much of the capital investments that have been lost. This is reflected in the low business sentiment expressed by OGUK members as companies look to 2021,” OGUK said.

Managing Health & Safety Risks While the UK offshore industry was grappling with disrupted and/or delayed activity due to the pandemic, it also had to ensure the health and safety of workers.

ompanies and service and equipment providers manage a wide range of potential risks—from the health and safety of workers in harsh environments to the security of energy supply and smooth running of operations. Firms have process and equipment safety protocols to ensure asset integrity and quick and efficient response to potential failures in systems. In addition, the energy industry has to assess risks to financial performance and plans of capital expenditure stemming from the volatility in oil and gas prices. In 2020, the robustness and readiness of the risk management procedures were put to the test by the black swan event, the COVID-19 pandemic, which upended company plans for spending and operations this year and forced firms to adapt to changing rotation schedules on offshore platforms to ensure maximum possible protection of workers from the coronavirus. The companies adapted—they recalibrated investment plans, delayed drilling campaigns, and implemented additional safety protocols and procedures to protect personnel while ensuring the essential supply of energy in the form of oil, gas, or renewable energy.

“Working tirelessly with governments, regulators and our industry we have secured clear arrangements on the safe removal of suspected cases from offshore, on establishing our workforce as key workers so they can continue to send their children to school if they have to and to continue to travel to work and on temperature testing as standard at all heliports,” OGUK Chief Executive Deirdre Michie and Step Change in Safety Executive Director Steve Rae said in a joint statement in March.

"Total expenditure in the UKCS is expected to drop by around 30% this year..."

Managing Price Risks Energy firms across the world, including those operating in the UK North Sea, grappled with a plunge in oil demand and oil and gas prices. “Lower prices will affect the revenues of all companies, further stretch balance sheets and impact investment rates,” the leading UK offshore industry body, OGUK said in its Business Outlook 2020 in the spring. The impact was felt by supply chain companies almost immediately as the lower-than-anticipated levels of activity started to take effect. Many companies in the supply chain already had limited scope to absorb further cost reductions, OGUK said.

www.ogv.energy I December 2020

As early as in March, OGUK teamed up with Step Change in Safety, the industry’s recognised safety organisation, to offer support to the tens of thousands of workers keeping the UK running with secure and affordable energy during the pandemic. The organisations created an online hub with guidance, videos, and FAQs to address concerns on the prevention and protection against coronavirus in around 150 manned installations across the UKCS as well as the onshore workforce.

When the UK went into lockdown in March, the number of workers on offshore oil and gas installations decreased by around 4,000, official figures from OGUK showed in early November. Average weekly personnel on board decreased from around 11,000 on the 8th of March to just over 7,000 a month later, with drilling and engineering construction segments hardest hit.

Since the lowest point in April, there has been some recovery in personnel on board (POB) numbers, but they remain below the pre-lockdown level. OGUK believes that the testing of all offshore workers for COVID-19, and not just those presenting with symptoms, will be key to enabling more workers to return, the industry body said in its Workforce Insight 2020 report.

“Our figures confirm the initial operational impact of the lockdown back in March this year, with the number of workers offshore decreasing considerably in the space of a month as companies reduced to minimum manning in a bid to control the spread,” report author, OGUK workforce engagement and skills manager Dr Alix Thom said, commenting on the report.

“Numbers have risen steadily since then as industry has adopted a robust Swiss cheese barrier model, with a range of preventative measures in place both prior to mobilisation and whilst offshore, which has helped secure more jobs and increase operations in the immediate term,” Thom said.

Energy firms across the world, including those operating in the UK North Sea, grappled with a plunge in oil demand and oil and gas prices.

Still, OGUK warned that signs of significant job losses emerged and called for a North Sea Transition Deal as the recruitment and retention of diverse and talented people will be essential as industry works to support UK energy needs both now, and in a lowercarbon future. Although offshore personnel numbers have increased in recent months, staffing levels have not yet reached those seen prior to the pandemic, OGUK said. “Looking to 2021, 40% of E&P companies and half of supply chain companies have indicated that more than one-third of their 2021 plans are contingent on being able of increase offshore personnel levels,” it noted. OGUK’s Health, Safety and Environment Report 2020 published in early November analysed industry performance in those

metrics for 2019, while it also provided insights into the response to the pandemic. The report showed encouraging signs of improvement across a broad range of HSE indicators in 2019. The number of total hydrocarbon releases increased last year, but the more serious RIDDOR-reportable releases decreased year-on-year, from 85 to 67, OGUK’s report showed. In aviation safety, last year saw a third consecutive year of accident-free flying in the UKCS, and for the second year running, the five-year fatal accident rate per 100,000 flying hours remained at zero. In the COVID-19 response, OGUK’s Pandemic Steering Group (PSG) was formed and focused on ensuring the risk of offshore transmission of COVID-19 was minimised, that helicopter transport for personnel and suspected COVID-19 cases

were maintained, existing health, safety and environmental risks were managed, and the movement of essential personnel and equipment was maintained, even during the strictest phase of lockdown. Commenting on the report, OGUK’s health, safety and environment director Trevor Stapleton said:

“The COVID-19 pandemic has had a significant impact on oil and gas operations in the North Sea. However, this virus should not and will not distract industry from focusing on its key goal of maintaining safe operations while continuing to provide the energy society needs – however challenging that might be.”

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RISK MANAGEMENT & WELLBEING

TESTING QUESTIONS FOR MANAGEMENT

of Covid-19 infections In April, at the start of the Covid pandemic, there was much debate about whether testing had a place to play in the control of the disease. Since then the value of testing has been repeatedly demonstrated in many different situations.

n the last few weeks mass testing in Liverpool is being seen as a success not just in terms of the mobilisation exercise which has seen close to 100,000 tests undertaken in 10 days, but also the detection of 648 cases of viral carriage in asymptomatic individuals and removing them as potential sinks for infection from the community. This can only have a positive effect and will doubtless reduce the number of cases from the 700/100,000 level that saw the introduction of tier 3 measures. In the North Sea, testing has helped reduced infection rates in the offshore industry by excluding asymptomatic carriers of the virus at the stage of mobilisation. The rate of positive tests in premobilisation offshore workers has mirrored, and indeed pre-dated, observed national trends in Covid detection. Pre-mobilisation testing has meant that there have been few cases of Covid detected offshore and the widespread infections predicted after the experience on board cruise ships and the USS Theodore Roosevelt have not materialised.

Lateral flow tests are much cheaper than PCR tests - meaning that they are an affordable option for mass and repeated screening.

But which test to use? The tests used in Liverpool and featuring the Government’s Operation Moonshot are lateral flow tests and are a move away from the accepted “gold standard” PCR test which has been used for testing in the N Sea. Lateral flow tests are certainly much cheaper than PCR tests - meaning that they are an affordable option for mass and repeated screening. In addition the relative ease of use means that can be easily rolled out to large populations- in Slovakia half the population (3.6m people) were tested in October.

Ken Park, Clinical Director of the TAC Healthcare Group

The limitation comes in the accuracy of the tests. Oxford University and the government’s Porton Down facility found that the sensitivity of the lateral flow tests was 76.8% at high viral loads and fell to 56% when tested in a community setting. In Slovakia, even with this level of inaccuracy, mass testing has reduced the number of new cases from 3,363/day to 2,579 cases/day. Although this is a good result for public health it would not be regarded as a success for screening where the aim is the total exclusion of infection from an area or industry sector. The enviable record of the UK Oil and Gas sector in controlling infections is based on PCR testing in which the sensitivity of the testing process is in excess of 90%. In contrast, if the lateral flow testing was used it is likely that a quarter of positive cases would slip through to off shore facilities i.e. since April 84,000 premobilisation tests have been performed and 756 positive cases were excluded from the work place, if lateral flow tests had been used 174 – 322 cases would have been missed. Even if only 20% of these individuals developed symptoms 35-64 additional CMED evacuations would have been required however each of the 174 to 322 missed cases would have had the potential to cause widespread infection offshore. The whole debate about testing has been hampered by a blinkered approach to the problem and one solution does not fit all situations. Repeat tests with lateral flow kits maybe the answer to controlling infection in Slovakia and may reduce the infection rate in Liverpool but they are not the best test to prevent infection getting to N Sea oil facilities. The answer to the question of which test is best is - pick the right test for the situation, perform it at the right time and you will get the right results.

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RISK MANAGEMENT & WELLBEING

through robust management systems

With COVID-19 dominating the news headlines it has become apparent that the only certainty right now is uncertainty. The risks and disruption caused to businesses globally has been well publicised.

rganisations have always faced threats and this is nothing new, with risks ranging from global pandemics to evolving technologies or increased market competition. There are a range of techniques available to help identify, analyse and treat risk, aiding organisations to keep ahead of threats that could be detrimental to their success. Accounting and planning for the unexpected is not an easy feat, however, guidelines provided within “ISO 31000 Risk Management Standard” can assist organisations to achieve objectives, improve the identification of opportunities and threats and effectively allocate and use resources for the treatment of risks. The risk management process includes the following key elements: Risk Identification • Identification of risks, areas of impacts and potential events that could prevent you from achieving your objectives. Risk Analysis • Understanding the sources and causes of the identified risks. • Studying probabilities and consequences given the existing controls (residual risk). Risk Evaluation • Comparing risk analysis results with risk criteria to determine whether the risk criteria is tolerable. Risk Treatment • Decisions made to treat or accept risks with consideration of internal, legal, regulatory, and external party requirements.” • Define your level of commitment and determine what resources you will be able to allocate to implement and maintain your risk management system. Risk Monitoring and review • Measure risk management performance against indicators, which are periodically reviewed for appropriateness. • Review the risk policy and plan with organisations external and internal context for appropriateness • Your risk management process should be dynamic, and responsive to change and facilitate continual improvement of the organisation.

It is not mandatory to have a documented risk management process however many of the Management System Standards including ISO 9001 (Quality), 45001 (Health & Safety), 14001 (Environmental) and 27001 (Information Security) detail that organisations should have a methodology in place to effectively identify risks and opportunities as part of their QHSE Management System. By considering risks and managing them appropriately you are likely to improve your organisations ability to achieve stated objectives. QHSE Aberdeen Limited have assisted many organisations to create a tailored, systematic, and structured risk management framework to explicitly address uncertainty on a safety, financial, strategic or project level. We use the best information available to build a framework

to help protect your organisation as well as add value and achieve key objectives. We can also deliver risk management training or create risk assessments specific to your business. For a full list of services please see our website www.qhseaberdeen.com We continue to live through very unusual times, learning to adapt with the mitigations enforced on us. We have had to change our ‘normal’ working conditions with many staff now working remotely and being at home alone. This introduces a new risk that most would not have planned for prior to COVID-19. Organisations need to ensure sustainability whilst balancing employee wellbeing and the focus on employees physical and mental health is greater now than ever before. Feeling stress, boredom and anxiety is understandable and employers are all learning together on how best to manage this.

There are a number of useful resources related to the wellbeing of your employees providing simple tips and managing strategies. Please see below links: www.mind.org.uk/information-support/coronavirus/coronavirus-and-your-wellbeing/ www.scope.org.uk/advice-and-support/mental-health-and-coronavirus www.nhs.uk/oneyou/every-mind-matters/ QHSE Aberdeen consultants are also working remotely (wherever possible), continuing to support our clients, creating and delivering training packages through conference media & video sessions.

HAPPY 5TH

BIRTHDAY

QHSE ABERDEEN LTD. As we approach our 5th year anniversary this December, we are proud and fortunate to be able to continue our planned growth of the Organisation with an increased customer base and the recent recruitment of two further QHSE Consultants to complement our Specialist Team. We are able to offer our clients assistance with ISO Management System development, implementation & continuous conformance as well as providing expert project focused Quality, Health & Safety, Environmental and Information Security dedicated consultancy. Managing Director, Dave Rusling remarked “ It has been a tough year but we have managed to keep to our target and expand our business, recruit more staff and we definitely see light at the end of the tunnel. These last 5 years have been hard work but we have a great team and together we have become one of the best known QHSE Consultancy firms in the North East of Scotland, gaining a great reputation and being positively referred by our

Customers. Our client base has grown UK wide and Internationally and we are very thankful to our Customers for giving us the opportunity to support them in their own continued growth, by adopting ISO Management Systems.” During our 5 years in business, we have assisted organisations of all sizes and sectors to Develop, Implement and Maintain their ISO Management Systems, we have provided Project staff On and Offshore and delivered many in-house Training Courses. Our specialist staff are on hand to carry out QA/QC, QHSE 1st, 2nd and 3rd Party Audits as well as offer advice & consultancy in relation to Quality, Health & Safety, Environment & Information Security Management. Angela Scott, Director, also said “ We wish to thank our customers, for their continued support and look forward to working with new and existing clients for another 5+ years, continually improving and evolving as we have done in the last 5 years. Plan, Do, Check, Act.”

If you would like to find out how QHSE Aberdeen Limited could assist your business, please contact us to discuss your requirements Find out more at: www.qhseaberdeen.com

RISK MANAGEMENT & WELLBEING

OGV Q&A MENTAL HEALTH

It’s estimated that around 1 in 7 people within the UK workplace are suffering with a mental health condition, yet many are still reluctant or scared to talk about it. How can oil and gas leaders tackle the stigma of mental health? to our workforce physical safety is more important than emotional safety. When In fact we have a legal and moral duty to prevent both. Consider this if we are told on a regular basis two things are of equal importance but only one gains any investment in terms of finances, time and effort, then how could we expect anyone to interpret them as equal. If we want people to understand emotional hazards, identify them and prevent them then we must invest in the systems to aid them, just as we do with physical safety.

Sripad Gopala, Chief Operating Officer, Imrandd

Brian Dow

Brian Dow, Chief Executive, Mental Health UK The key approach combines top down and bottom up . On the basis that everyone has mental health, leaders being open about their own mental health – the steps they take to maintain and protect it helps create a norm. Equally allowing employees to find ways to elevate the conversation makes a huge difference. Think of it in three steps 1. Preventative – sending the signals in your recruitment that you are a mentally healthy employer. Encouraging people to declare if they have an existing mental health problem; doing some clear benchmarking; training managers on how to have constructive conversations around this issue 2. Early intervention – stepping in when someone is becoming ill; encouraging a degree of flexibility, small enhancements that might make a big difference (eg a quiet space), employee assistance programmes, using case studies for people to talk about their mental health etc 3. Postvention – having good policies so that if someone has gone off ill and is returning you help break the cycle. WRAP – wellness action return plans make a huge difference

Brett Townsley, Director, OSi In terms of stigma we are of course dealing with several factors such as societal disapproval, the tough guy culture within our industry, and also unintentional stigma created within the industry. As an industry we create unintentional systemic stigma by devaluing mental health within the workplace. The message is both physical and emotional wellbeing must be treated equally. Yet while we invest heavily with time, effort and money in both reactive and preventative measures for physical safety in the workplace including on things such as investigation, root cause analysis, measurement and prevention, we however do not do the same for mental health or emotional safety. By doing this we devalue mental health, and provide an inconsistent message that signals

www.ogv.energy I December 2020

There are many social stigmas attached to mental health, particularly in the workplace. In tough, high pressure environments such as oil and gas, people are expected to work long hours, sometimes away from home. There’s a common perception that people should just get on with it or “man up” if things go wrong. Thankfully we are seeing a change in mindset and a commitment from employers to provide more support. At Imrandd we focus on having, open, honest and frank discussions. We strive to provide a safe environment where disclosing and speaking out about mental health is not considered a weakness, and we offer support and flexibility to our workforce to help them manage any aspect of their mental health that may cause them anguish or concern.

How does an organisation ensure they’re actively monitoring and supporting the workforce when it comes to mental health?

Brian Dow, Chief Executive, Mental Health UK I hope that answer above helps answer so the only thing I would add is to make sure you do not “problematise” it. When someone declares they are having a problem, allowing them to be part of the solution is key. You will engender loyalty and trust. Also make sure you are clamping down on stigmatising language as this can really make people wary of talking about their health. Lastly models like the stress bucket really help – see Mental Health UK website

of course a requirement, however we should be applying preventative measures to identify the emotional hazards that moved the individual from the coping stage into struggling or crisis. Our attention is focused on application of the plaster rather than hazard prevention. By creation of bespoke systemic solutions we can use our data to identify, measure, monitor, prevent and or reduce our mental health workplace issues. If we really want to support our workforce this must be the goal.

Sripad Gopala, Chief Operating Officer, Imrandd Fundamentally, you need to ensure your management understand the factors that affect mental wellbeing in and outside the workplace. Training may be needed for management to adequately address and communicate with employees. It’s also important to identify and review the processes and support mechanisms you have in place to assess the impact this has. Ensuring inclusiveness, diversity and flexible working will enhance morale and workforce engagement, this in turn boosts productivity, confidence and self-worth.

What would you say to someone reading this who’s struggling with any aspect of their mental health?

Brett Townsley, Director, OSi

Brian Dow, Chief Executive, Mental Health UK

We manage what we monitor, so think does your business have a mental health policy or assessment of emotional hazards? Does the business have leading and lagging indicators for mental health? If not how can we monitor or support. Currently we are reliant upon conventional methods in terms of mental health, which means we are not monitoring it rather simply reacting to issues. We apply these once the individual is exhibiting signs of mental health issues or when the person has in fact moved into struggling or crisis mode. At this stage we are simply applying care to the individual this is

Try to be open with someone you trust. Although things are changing the prevalence of mental health problems means that you are almost certainly likely to be speaking to someone who has some sort of experience of it through family or friends. And remember your employer has a legal duty to support their staff and not discriminate. Also, on the basis that mental ill health is the single biggest cause of absenteeism if you can help your employer help you then you are almost certainly helping your business shape its practice to improve its bottom line.

Sripad Gopala, Chief Operating Officer, Imrandd Life is exceptionally tough for everyone right now, and it may seem impossible to open up. However finding someone you can trust – either a friend, family member or someone at work who you can talk to - is the first step in getting the support you need. Your employer has a moral and legal duty of care to look after you, so don’t be embarrassed or worried about talking things through and making them aware. Often even the biggest of problems are solved by talking things through and seeking out support.

Brett Townsley

Brett Townsley, Director, OSi Firstly, remember you are not alone, we all experience mental health on a continuous basis moving from coping, struggling and crisis. If you have begun to identify in ourselves or those around us difficulties in coping with mental health issues, we must engage with someone for a safe space conversation, this is known as shared worrying. This is the point our interventions such as first aid for mental health come to the fore, having trained skilled individuals to assist and facilitate these types of interventions are critical in terms of signposting those in need to the right type of support. However as an employer, we should be assessing how the emotional distress was created and applying solutions to prevent re-occurrence.

How can an employer approach an employee about concerns without overstepping?

As an employer, are there signs to look out for to identify if someone is struggling with their health & wellbeing?

Sripad Gopala, Chief Operating Officer, Imrandd It’s hard to pinpoint any one sign or symptom, and so I believe a manager should really take the time to know their employees, so they can quickly notice anything that may seem out of character. For example, if a typically quiet or shy person suddenly becomes argumentative, that can be an indication. Or when a gregarious person becomes withdrawn, that can be another. Because we are a tight-knit community at Imrandd, we have experienced instances where these sorts of observations have been the avenue to open up the conversation and identify whether someone is struggling. And of course, both physical and mental health is often a matter of privacy, so there’s not always an obligation or expectation that someone needs to share.

Sripad Gopala

Sripad Gopala, Chief Operating Officer, Imrandd Normalising conversations, creating awareness sessions, challenging perceptions and ensuring people feel comfortable - these are all good ways of encouraging more open dialog around mental health awareness. At Imrandd we offer a supportive environment where employees feel they can speak up about their health and not feel ashamed or embarrassed to talk. We offer confidentiality in all conversations and provide sign-posting to mental health resources.

Achieving this requires a whole new level of innovation, collaboration and resilience. In turn this requires people to have good level wellbeing levels. Can we achieve this while we’re working from home?

WELLBEING

and working from home Since the Covid-19 outbreak our lives have changed beyond recognition. We now know we CAN work from home but are we flourishing?

he energy industry workforce is dealing with change on an unprecedented scale. These changes are not the usual cyclical ups and downs linked to oil price. Instead, the whole industry is having to deal with the impacts of achieving net zero targets whilst also coping with a global pandemic. At the same time, the energy industry is being challenged to meet one of the biggest challenges of the 21st century (other than finding a COVID-19 vaccine). Providing energy to a growing global population while dealing with the climate change emergency requires the best of human ingenuity and creativity.

This is a question that Susan Brimmer, an HR professional with 20 years’ experience in the energy industry is asking in her PhD research project with the University of Aberdeen. “I believe we need to find creative solutions that allows us to flourish in this hybrid working environment. There are many benefits to working from home and we have a chance to unlock greater efficiencies and take some vital first steps towards reducing our impact on the environment, kick starting a return to a greener way of life. However, there are also many challenges to working in isolation. I want to explore this topic thoroughly so we can develop a viable way of working that brings us more time for our loved ones and ourselves while developing a more sustainable long-term energy industry”. Susan explains. Susan is so committed to focusing on and accelerating the research that she has given up her job at OGTC in Aberdeen. “I started the PhD part-time 2 years ago and it will take another 4 years to complete it if I continue in this mode. By then the findings will be obsolete and I will have missed my opportunity to help. The world is changing

Susan Brimmer

quickly, and I hope that by accelerating the project I can offer robust findings that will support, develop, motivate and realise the full potential of people working across the UK.” Susan is currently gathering data for the first stage of the research and hopes to have some initial findings to share early in 2021. It’s not too late to take part in the research. The closing date for the confidential, online survey is Friday 11th December. So if you work in support of the UK energy industry and were office based before Covid-19 and home based since, please complete the survey! (See link below)

Learn more about the research project at: www.flourishingatwork.today/research-question If you wish to complete the survey, scan the QR code with the OGV App or visit: www.viis.abdn.ac.uk/snapwebhost/s.asp?k=160344593483

RISK MANAGEMENT & WELLBEING

34 02

RE-GEN ROBOTICS enables the transition to industry safety Fintan Duffy, Managing Director of Re-Gen Robotics, discusses how his robots are playing an increasingly greater role, in the transformation of safety in the oil tank cleaning industry.

ne thing we can be certain about in these unpredictable times, is that change is inevitable. As entire sectors came to a virtual halt in response to the COVID-19 pandemic, our state-of-the-art, Ex Zone 0 rated, ‘100% no man entry’ tank cleaning robots carried on as normal. The pandemic provided us with the opportunity to demonstrate how we can replace confined space crews, by turning hazardous tasks over to reliable, remotely operated robots. Our service requires only two crew members to complete the entire cleaning operation, one to control the robot and the other to operate the tanker. Person to person contact is zero therefore social restrictions and health and safety compliance was preserved. Over the last ten months we have worked with several of the oil majors, who have now adopted our robots as their first and only preference for tank cleaning. They are fully committed to enhancing safety and productivity in their operations and when it comes to tank maintenance, these industry leaders are procuring our service, to sit at the core of their safety strategy. By sending our revolutionary robots into hazardous confined spaces, they are not only eliminating the dangers and liabilities associated with confined space entry but are also saving time, money and reducing operational downtime for their tanks.

"The pandemic provided us with the opportunity to demonstrate how we can replace confined space crews..."

Personnel who carry out manual tank cleaning are exposed to physically and psychologically demanding shifts and increasing work demands and constraints, over and above those experienced by your average worker. The amount of man hours spent onsite on these activities, directly influences the number of reported incidents and injuries.

And while Oil & Gas companies look to gain greater operational efficiencies and drive productivity, they also have to think about regulatory and social acceptance considerations. Safety will always be their first business driver and the health and safety of personnel engaged in tank cleaning, will always be paramount.

We understand there is a fear that manned CSE tank cleaning jobs will become susceptible to robotics and no doubt there was the same reaction when computers were invented, or steam engines were introduced.

Accordingly, using robotic equipment to carry out works in hazardous confined spaces is the most logical and safe way to clean tanks. The number of man hours onsite is more than halved and the requirement for rescue teams outside the tank is completely removed.

The labour market shifts, people reskill and upskill as new needs emerge and what is so exciting for us, is that we can actually create many more jobs, than those being replaced. Overall, the demand for no man entry cleaning is growing rapidly, but we still need experienced personnel to control the robots. Essentially, we are creating better paying jobs and conditions, as a result of our technological advances.

With every tank clean, we’ve put our claims to the test and proven beyond doubt, that not only has our technology transformed safety withing our industry, but we are also adding value to our clients’ bottom line. The higher level of output, better quality of service and zero possibility of accidents, all make it feasible to embrace the use of robotics technology in hazardous environments.

Using Re-Gen Robotics tank cleaning solutions has very clear advantages for tank terminals; there are fixed costs, reduced paperwork and permits, and no requirement for capital outlay, standby rescue teams or inhouse robot operators.

We are at a point now, where we have the potential to transform the safety of our sector, for good. The health and safety of personnel is our number one concern and it should be for the industry, as a whole.

www.ogv.energy I December 2020

Re-Gen Robotics is the first and only Zone 0 EX certified, remote controlled, 'No Man Entry' robotic tank cleaning company, in the UK and Ireland. Find out more at www.regenrobotics.com

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RISK MANAGEMENT & WELLBEING People Assurance

PROTEK

Intertek’s end-to-end health, safety and wellbeing assurance programme AUDITS, TRAINING, INSPECTION, VERIFICATION AND CERTIFICATION SOLUTIONS FOR ORGANISATIONS WORLDWIDE s the world changes, operating safely, sustainably and delivering quality and safe products becomes more difficult. Through Intertek’s Total Quality Assurance (TQA) offering, we make the world a better, safer, more sustainable place through the work we do for our customers across assurance, testing, inspection and certification.

As the world adjusts to a ‘new normal’, many newly adopted hygiene measures will become generally adopted standards as people fundamentally re-think their approach to everyday health, safety and wellbeing. As companies prepare for a return to work, employees are increasingly concerned about their health and safety and as customers think about returning to visit public spaces (whether shopping, eating out or using public transport) they are now also looking to brands to provide trust, visible reassurance and peace of mind. Never before has risk management and wellbeing been so prominent or vital to every aspect of our lives. Based on Intertek’s unique approach to total quality, Protek is a comprehensive system of safeguards for People, Systems & Processes, Facilities, Materials & Surfaces, and Products. Through our global network of facilities, we provide support across all sectors, from manufacturing to retail sites to public places; turnkey solutions related to preventing the spread of infection and covering all aspects of health and safety.

Operating Systems & Processes These solutions provide confidence that operating procedures are functioning properly, helping to identify and mitigate intrinsic risk in operations, supply chains and business processes. These technology-driven solutions deliver supply chain risk transparency and visibility that can improve business and deliver more cost-effective processes. Facilities Protek Facilities Assurance is a suite of health & safety solutions that identify and minimise environmental health risks to employees and customers across manufacturing, hotels, schools, restaurants, transport hubs, retail, and more; including facility health assessments, programme development, cleaning and disinfectant process oversight, post-cleaning verification (including COVID-19 surface swabbing) and compliance reporting and certification.

Covid-19 has for clear reasons magnified the focus from all stakeholders in workplaces and public spaces on health, safety and hygiene. As a result, Intertek launched Protek - the world’s first industry-agnostic, end-to-end health, safety and wellbeing assurance programme for people, workplaces and public spaces and offers audits, training, inspection, verification and certification solutions to organisations worldwide.

Protek provides end-to-end learning and certification solutions, from Covid-19 related training programmes to specific modules on how to use face masks, gloves and other PPE. In addition, courses on hygiene, cleaning and prevention of the spread of infectious diseases help to assure the health, safety and wellbeing of employees and customers alike.

Materials & Surfaces

Never before has risk management and wellbeing been so prominent or vital to every aspect of our lives.

These solutions provide the testing and inspection services needed to ensure materials and surfaces used are sanitised and safe for employees, customers, and the planet. From cleanliness and sanitation to waste management, Protek provides the assurance needed in today’s environment. Products Our Product solutions deliver the assurance to clients that a product was made with quality, safety, and sustainability in mind. We cover products through the entire lifecycle, starting from raw materials, components, to transportation and the finished product’s use, disposal, recovery and re-use. Global reach, local expertise With over 1,000 sites and laboratories in over one hundred countries, Intertek is uniquely placed to give businesses the reassurance of a global solution with unrivalled local knowledge and expertise. No other company has the network, tools and processes to deliver Total Health, Safety and Wellbeing solutions to help people feel safe to return to work, to travel, to eat out and to adjust to the new normal. While we support our customers to reduce the risks and support them with health, safety and wellbeing solutions, it is important to realise that our colleagues, friends and family members are facing unprecedented challenges in both their professional and personal lives. Everyone is feeling the disruption and the subsequent toll that it can take on our health, both physical and mental. If we’re lucky it has meant that we now work from home, or in workplaces with social distancing, PPE and other measures. For many it has meant time spent on furlough, separated from friends, family, colleagues and a normal routine. Unfortunately for others it has meant redundancy. While risk management, health, safety and wellbeing are core to what we do at Intertek, moving beyond to focusing on the personal relationships with our colleagues has been key during this time, to ensure that we look out for each other by taking into account the mental and physical health of those around us. It’s an approach we share across our business and would remind others to remember - every organisation has people at the heart of it, so it’s important we take care of them.

www.ogv.energy I December 2020

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INNOVATION & TECHNOLOGY ROUND UP 2020

INNOVATION & TECHNOLOGY ZONE SPONSORED BY LEYTON

HIS YEAR, WE INTERVIEWED A VARIETY OF COMPANIES WITH INNOVATIVE PRODUCTS, STEPPING AWAY FROM CONVENTION. TODAY, IT APPEARS THERE IS A DIGITAL SOLUTION FOR ALMOST EVERYTHING AND WE HAVE SEEN THE POTENTIAL BENEFITS FIRST-HAND. WITH HUGE COST SAVINGS, REDUCTION IN TIME AND MOST IMPORTANTLY IMPROVED SAFETY FOR WORKERS, WE LOOK BACK AT SOME OF THE GAME-CHANGING TECHNOLOGY OF 2020.

INCREASE COMPLIANCE, DECREASE COSTS

ISSUE 32

JUN

ARNLEA

ISSUE 31

ISSUE 29

Arnlea’s Intrinsix software, and IntrinsixEX specifically, is a powerful tool for your people. IntrinsixEX uses auto-ID mobile technology to increase compliance and decrease costs in your Ex inspections and maintenance activities. Compliant with IEC 60079 standards and ATEX directives, its benefits can be usefully divided into financial, deployment, user and HSEQ themes to fully appreciate the value IntrinsixEX brings to each partner business that uses it. IntrinsixEX allows more inspections to be performed more quickly, which means that you can reduce the number of inspectors you need offshore at any one time. This brings additional financial and HSEQ benefits. Reducing the number of overall people offshore improves health & safety and also improves the use of both resources and budget.

ISSUE 33

ISSUE 34

UNITY TACTT

MAY

FEB

JUN

JUL

UNITY

RE-GEN ROBOTICS

EAVOR

INTOWARE

P&A PRESSURE TESTING

THE ‘HOLY GRAIL’ IN TANK CLEANING

GROUNDBREAKING,

MAINTAINING SAFE OPERATIONS

Unity, Europe’s largest provider of well integrity technology, services and engineering solutions, has successfully completed a preparatory P&A project in partnership with oilfield services provider Petrofac. The Aberdeenbased business deployed its Temporary Abandonment Cap Test Tool (TACTT) to pressure test two suspended mudline wells in the North Sea in support of an end of life campaign undertaken by Petrofac for a multinational operator. The TACTT is the only technology of its kind, able to seal on to any type and size of temporary abandonment (TA) cap fitted to a suspended well, pressure test the seal to ensure well containment, then test and vent pressure from below the TA cap. It can also leave a reliable secondary seal in place if required.

Within less than a year of launching, Re-Gen Robotics won the Safety Technology Award at the 2020 Global Tank Storage Awards, in Rotterdam, on 10th of March. The 13 strong judging panel of industry stalwarts, recognised Re-Gen Robotic’s technology and service, in revolutionising safety in the tank terminal industry.

Eavor’s technology, known as “EavorLoop (TM)” captures geothermal energy to produce steady and dependable heat and electrical power without emissions of any kind. Unlike traditional geothermal power plants, an Eavor-Loop™ works at drilling depths which have geologically common parameters and characteristics; enabling implementation almost anywhere in the world. This technology represents the opportunity to transform the world’s energy stack, redefine how energy is produced and address climate change. Eavor’s innovative technological solution has been built, developed and demonstrated upon the foundations of the world-renowned drilling industry and energy services sector in Western Canada; together considered to be the “Silicon Valley” of energy services.

Prior to the pandemic, Intoware had developed the workflow platform WorkfloPlus using mobile and augmented reality technology. The aim was to help digitise audit and compliance processes required in downstream, midstream and upstream operations.

www.ogv.energy I December 2020

Applying fully integrated, no man entry, closed-loop robotic tank cleaning technology, is where a monumental difference can be made to safety in the petrochemical industry and we are confident that it will be adopted as best practice. Our automated robots, in combination with competent staff, eliminates confined space entry, cleans safely, with precision and efficiency.

GEOTHERMAL TECHNOLOGY

They found that by switching to digital work instructions, oil and gas companies can build a huge bank of data for audits and also use the same information to predict when failures may occur. The very nature of the high-risk oil and gas industry means that health and safety, compliance and audit checks are frequent and detailed. Unless these processes are done digitally, they create a massive volume of paper which is difficult to track and impossible to measure with any degree of accuracy.

ISSUE 36

ISSUE 33

NOV INPROCESS

MANAGING BIG DATA

SEP

TAAP

CHECK IN AND OUT SAFELY Taap's new app is available for the energy sector, and being fully GDPR compliant, TAAP Visitor Book provides an extremely cost-effective solution to meet the new way of working. No hardware required, just the ability to scan a QR code via any IOS or Android Smartphone. Visitor Types is a feature of the product to help with managing compliance for different types of visitor, guests, contractors, suppliers and employees. It can be used to manage Health and Safety refreshers at the point of check-in, automatically tracking and flagging all your guests, whether they be contractors or employees, and whether they need some refresher compliance training or guidance, or need to watch an instruction based video. TAAP Visitor Book provides the one application to drive standardisation across the sector allowing check-in capabilities across multiple sites.

ISSUE 35

Although big data analytics is a hot topic across all sectors, many companies from banking to pharmaceuticals are only recently beginning to realise the value locked in their data. lnProcess takes large datasets, displays their underlying trends and shows the variables which have maximum effect. It can pick out relationships caused by combinations of variables and other underlying effects as well as first-order relationships. However, process data is complex, and there are many interactions. Statistical analysis uncovers the underlying combinatorial effects by selecting a target /objective function based on process requirements, for example, maximising flowrate, minimising oily water overboard or maximising the production of diesel.

ISSUE 39

ISSUE 37

DEC SPECTIS ROBOTICS

ULTRA MOBILE INSPECTION ROBOTS AUG GEORGIA INSTITUTE OF TECHNOLOGY

OCT OMMICA

OIL REFINING

CRUDE OIL "SPEED TESTING"

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 well-known 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.

Refineries across the world have strict maximum levels for the amount of methanol and other chemical contaminants that they will accept in the crude oil and regularly issue penalties to producers who supply contaminated oil with more than 15 - 50 parts per million methanol. The Forties Pipeline System in Scotland for example issues a penalty of almost £4,000 per 1,000 litres of methanol contained in the crude oil.

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.

OMMICA is a compact easyto-use field chemical analysis kit which was developed specifically to speed up production analysis. This enables producers to get information on their contamination levels fast resulting in them getting the best commercial outcome for their oil production. It does in minutes what would otherwise take days or weeks.

MEMBRANE TECHNOLOGY

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

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Technology and Covid risk management – leading role or hyperbole? Tim Howarth CEO of fintech advisory firm Fimatix UK ltd discusses the role of technology in risk management during the pandemic.

n the early stages of the pandemic, as the scale of the challenge facing the world was becoming clear, a range of hypothetical technology solutions were promoted to solve or at least support rapid resolution of the crisis. Ten months on, how many of these hypotheses have borne out and where has technology made a potentially lasting impact? A trawl back though the newspapers in February and March delivers a host of clever ideas and propositions, but for simplicity lets group them into four silos. Big Data and Artificial Intelligence Big data and AI would help us ‘predict’ the spread of the virus (By monitoring social media feeds for example) and allow responsive governments to get ahead of the curve, or at least flatten the curve to manage health care capacity. Clinical technology Tools would be deployed to support front line medical staff and clinical researchers. Robots would relieve frontline staff from necessary but high-risk activities like early diagnostics, cleaning equipment and temperature monitoring. Drones Drones would perform a number of roles from crowd surveillance, mask compliance or area disinfecting. Mobile health tech A range of solutions covering video medical appointments, online prescriptions, track and trace, wearables and e-diagnostics and digital passports would change the way we interact with medical services. In reality, where has technology succeeded and where has it made limited impact? The most obvious impact, evidenced by booming share prices, has been the adoption of mobile collaboration tools to facilitate home working, lockdown business continuity and out of the office business interactions – from

www.ogv.energy I December 2020

‘Zoom’ meetings, to online conferences and seminars. Of course, this isn’t relevant to every industry and every situation, but the long commute and 5 days in the office is no longer a core expectation in the services sector. In fact many employees will reluctantly head back to the office if recent surveys are right (“IN magazine” in the US said 25% of organisations expect 75% of their workforce to work from home 3+ days/week post-COVID. Twenty-two% are still undecided). Mobile health apps and e-health tools have seen a massive take up: in the UK 19 million people downloaded the NHS Covid 19 app. Community medical practitioners have continued to offer services to their patients whilst reducing the significant risk of face to face contagion through adoption of electronic prescriptions, 24/7 online advice and implementing virtual appointments. It is also true that big data and AI supported the advances in medical research that has led to the development of viable vaccines, although the use of data by governments to support large scale actions, such as national lockdowns, has come under scrutiny (for example, the charts used to support the second UK lockdown were subsequently amended). Fimatix’s: “Shield” technology The largest hype of unmet expectation has been around Government led track and trace solutions. It was clear to us at an early stage that mobile phone-based solutions would struggle to deliver consistent results – there are several technical challenges around phones and Bluetooth technologies. Ultimately, phones just weren’t designed for practical track and trace solutions, so Fimatix fabricated a bespoke product that was. Fimatix felt that local level track and trace would be far more effective than blanket schemes, as communities are far better at self-administering solutions. What we believed health authorities needed for effective tracing is accurate, consistent data. What companies need is effortless solutions with minimal administration and fuss that provide reassurance in situations where they feel most at risk. What employers need is cost effective, data compliant solutions that minimise disruption and reduce administrative burdens.

Our “Shield” technology delivers these benefits using smart wearable technology that uses Bluetooth in a consistent way to provide highly accurate tracing capability in any work setting. Following WHO guidance “Shield” uses a risk-based assessment of potential exposure if outbreaks occur, giving decision makers rich data to underpin decisions on testing, isolating and business continuity. “Shield” focusses on the problem of knowing who was at risk through being close to others rather than tracking people in physical space, reducing the concerns of intrusive location monitoring and data usage. Deployed in schools and workplaces, Fimatix’s clients have provided Health Response Teams with rich contact data that prevented more significant operational disruption and offered real benefits through reduced testing costs, reduction in productivity or the cost of replacing quarantined staff. The wearable devices are always operational, so are constantly farming data from the wearables around them. The devices store this information until it is uploaded through the Shield App into central servers - the upload can happen through personal phones, tablets or beacons placed in a central area like a restroom, changing facility or reception area. Administrators can access dashboards through the App or pc web interface to see data across the whole workforce, individual departments or locations. If an employee becomes symptomatic, an administrator can create a report that freezes all the relevant trace data over the last two weeks which can be view through the app or downloaded onto a spreadsheet and shared with the event management team. All data held outside of the business’ own interface is anonymous and held securely in cloud servers. Fimatix’s view is that we will see an acceleration of the pace of change and it is incredible to think how ingenuity and innovation has enabled pandemic led transformation. It has brought forward long predicted trends, such as home working and interactions in a virtual environment. We’ve seen adaptive organisations quickly refocus in ways that been impossible to implement in the past. The rapid development of population level communications and medical advances including vaccines has been truly remarkable and a testament to those involved and wearable technologies will offer better long term solutions to other risk management issues like health and safety, employee engagement and potential future outbreaks.

Laern more about Filmatix's Shield Technology at: www.shieldtrackandtrace.com/workplace

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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

BP, Orsted launch green hydrogen project at German oil refinery By Ron Bousso BP and Danish renewable energy group Orsted have partnered to develop zero-carbon hydrogen at a German oil refinery, BP's first full-scale project in a sector that is expected to grow rapidly.

he project will produce so-called green hydrogen at the Linden refinery in north-west Germany through the electrolysis of water using wind power from the North Sea.

But the use of green hydrogen is expected to grow sharply in the coming decades as the European Union and governments around the world seek to reduce greenhouse gas emissions to net zero by 2050.

It is in its early stages and initially aims to build a 50 megawatt (MW) electrolyser to replace 20% of natural gas-based hydrogen at the plant, BP said in a statement. Production is expected to start in 2024.

BP aims to expand its hydrogen output to 10% of the market by 2030.

The project could be expanded to up to 500 MW at a later stage to replace all of Lingen’s fossil fuel-based hydrogen, Louise Jacobson Plutt, BP’s senior vice president for hydrogen, told Reuters. Hydrogen is today mostly used in the industrial sector as feedstock to make products such as fuels.

Green hydrogen is however much more expensive than natural gas-based, or grey, hydrogen. Reducing its cost of production will be key to expand the use of the fuel. “We see a path to (price) parity with grey hydrogen by the end of the decade” as more green hydrogen projects are launched and technology advances, Anders Nordstrom, Orsted vice president for hydrogen said. Source: Reuters

Could Scotland ever be 'the Saudi Arabia of renewables'? "As Saudi Arabia is to oil, the UK is to wind" - that's how Boris Johnson described the country's potential to capitalise on renewable energy recently.

or Scotland, it's not the first time comparisons have been drawn with Saudi Arabia. Alex Salmond said Scotland had the potential to be the "Saudi Arabia of renewables". With a year to go until Glasgow hosts COP26, a UN climate change conference, BBC Scotland considers how renewable energy has developed. Why the comparison with Saudi Arabia? The PM said: "As Saudi Arabia is to oil, the UK is to wind - a place of almost limitless resource, but in the case of wind without the carbon emissions and without the damage to the environment. "We've got huge, huge gusts of wind going around the north of our country - Scotland. Quite extraordinary potential we have for wind." So the comparison is a reference to the scale of resources available - Saudi Arabia has a lot of oil

By Claire Diamond

reserves and was once the biggest oil producer in the world. How big is the renewable energy industry compared to the oil and gas sector? Scotland's renewable energy industry has been around for about 20 years, and continues to grow. While the oil and gas industry has been around for more than 50 years, production peaked in 1999 and has been falling since. When it comes to their economic impact, renewable energy was worth £3.3bn in added value to the Scottish economy in 2018, while oil and gas extraction from Scottish waters with the support industry around that was worth £11.6bn. The potential for offshore wind far exceeds what Scotland could consume meaning we're on course to be a netexporter and putting the nation in the driving seat of this second energy revolution. Source: BBC

www.ogvenergy.co.uk www.ogv.energy I December I January-February 2020 2020

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Iberdrola to invest £67 billion in 'energy revolution' by 2025 By Isla Binnie Spanish wind energy group Iberdrola plans to invest 75 billion euros (67.7 billion pounds) in its renewable energy production, grids and retail operations by 2025 to capitalise on growing global demand for clean power.

ountries and companies the world over are seeking to cut emissions to combat climate change, buoying renewablesfocused companies including Iberdrola. Pursuing the opportunities created by the “energy revolution” facing the world’s major economies should help to boost net profit by more than 40% from 2019 to 5 billion euros in 2025, Iberdrola said.

40,000 Jobs over 30 years in the North Sea Revolution By Martin Williams The future of the North Sea is worth 40,000 more jobs and £20bn to the UK economy by 2050 through a clean energy revolution

leading think tank report suggests that the net rise in jobs would come through diversifying to renewables and takes into account a long-term decline in the North Sea's oil and gas industry.

Shares rose throughout morning trade and were up 3.1% on the day at 1300 GMT, outperforming a positive Spanish stock index and taking Iberdrola's gains so far this year to around a quarter. It has become Spain's second biggest company after Zara owner Inditex.

The think tank Policy Exchange says that the government must put the North Sea at the heart of its Net Zero strategy and calls for a new Minister for North Sea Development to take advantage of the opportunities.

For years, renewable companies have struggled to generate big profits, while fossil fuels have provided easier margins, but as COVID-19 lockdowns have hobbled energy use and hammered oil and gas markets, the investment focus has been transformed.

"As Saudi Arabia is to oil, the UK is to wind", is how Boris Johnson described the country's potential to capitalise on renewable energy recently.

Oil and gas companies, including Royal Dutch Shell, BP and Total, are moving towards renewable power, but Iberdrola's new spending plan eclipses their combined planned investments in low carbon. Other utilities are joining Iberdrola in building green capacity and wind energy is set to reach record growth globally over the next five years. Denmark's Orsted is in the midst of a $30 billion investment plan and Italy-based Enel, the region's leader, has set aside 14.4 billion euros to build renewables capacity and phase out coal between 2020 and 2022. Iberdrola promises steady earnings for its shareholders. They will receive between 0.40 and 0.44 euros per share by 2025 as the company sets aside a total of 94 billion euros for both the investment plan and its dividend plan, Iberdrola Chief Financial Officer Jose Sainz said. The money will mainly come from operations and cash management, but 19% will be from taking on debt, Sainz said. Half the overall investment will be split between the United States, where it announced last month its local unit Avangrid AGR.N would buy utility PNM Resources, and Britain, where it owns Scottish Power. At home in Spain, spending, mainly on renewables and networks, will more than double to 14.35 billion euros over the life of the plan.

They want to see payments from wind farm operators to local communities to ensure they benefit from hosting new infrastructure.

It borrowed a commentary made nearly a decade ago when first minister, Alex Salmond said Scotland had the potential to be the "Saudi Arabia of renewables". And the new report calls for a new strategy to develop the North Sea and to the exploitation of offshore wind, saying coastal regions such as those on the east coasts of England and Scotland are "ideally placed" to benefit from the coming renewable energy boom. But it warned that to make the most of surges in investment in clean energy, "we must make sure that local people benefit from these new energy projects". It added: "Importantly, if we do not set in place the right policies and public investments then the north east of England and the east coast of Scotland will suffer economically as oil and gas declines, while the UK will miss its Net Zero target." Renewable energy was worth £3.3bn in added value to the Scottish economy in 2018, while oil and gas extraction from Scottish waters with the support industry around that was worth £11.6bn. In terms of job about six times as many people are employed by the oil and gas sector. It supports about 110,000 jobs here. In 2009, only 27.2% of Scotland's electricity came from renewable energy sources. But ten years later it was 90.1%. The Scottish government has set a target of having the equivalent of 100% of Scotland's electricity demand coming from renewable energy sources by the end of 2020.

Iberdrola hopes one costly Spanish project, building capacity to produce hydrogen from renewable sources, will get European Union funds as the bloc seeks to emerge from a coronavirusinduced recession by focusing spending on sustainability.

The nation has been shifted awary from burning fossil fuels, with the last coal-fired power station, Longannet, closing in 2016 and the only remaining gas-fired power station being at Peterhead in Aberdeenshire.

By 2030 Iberdrola aims to increase solar and onshore wind capacity by 2.5 times and offshore wind power by 4.5 times, to reach a total generation portfolio of 95 gigawatts (GW).

Hydrogen is seen as a versatile fuel capable of powering everything from household appliances to transport to industrial processes.

Source: Reuters

Source: The Herald

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OGV Energy - Issue 39 - December 2020 - Risk Management and Well-Being

Articles inside

TAC: Testing questions for management of Covid-19 infections

INNOVATION ZONE

32 - OGV Q&A - MENTAL HEALTH - Re-Gen Robotics enables the transition to industry safety

US

Risk management and wellbeing: The pandemic put Risk Management in Oil & Gas to the test

Australia

Europe

Middle East

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