OGV Energy - Issue 40 - January 2021 - Lifting and Rigging

JANAUGUST 2021 - ISSUE 2020 40

UK’s No. ENERGY SECTOR

1

PUBLICATION

THE RIGGING & LIFTING ISSUE FEATURING

Ampelmann - LEEA - Safelift MDL - 3t Transform - LMS Global Gravity

GLOBAL ENERGY NEWS

UK North Sea - MIddle East Europe - US - Australia

WORLD PROJECTS MAP RIGGING & LIFTING ZONE INNOVATION & TECH GREEN ENERGY CONTRACT AWARDS ON THE MOVE LEGAL & FINANCE EVENTS

www.ampelmann.nl

DEVELOPING THE MOTION COMPENSATED

LIFTING SOLUTIONS

THAT THE OFFSHORE INDUSTRY IS LOOKING FOR

Read on page 4

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CONTENTS

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COVER PARTNER 4 Ampelmann - Developing the motion compensated lifting solutions that the offshore industry is looking for

PEOPLE IN ENERGY

6 - Brian Beattie - Marine & Lifting Technical Authority, CNOOC Limited

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20

GLOBAL ENERGY NEWS

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23

9 - UK North Sea 12 - Europe 14 - US 15 - Australia 16 - Middle East

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RIGGING & LIFTING FOCUS

20 - Rigging & Lifting: Equipment and Service Providers Brace for Another Year of Uncertainty 23 - Safelift: Solutions for complex handling, lifting & rigging challenges!

24 - Survivex and AIS Training see uplift in demand for onboard rigging and lifting training

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25

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25 - LEEA: Monitoring wire ropes for safe lifting 26 - MDL: Asset Maintenance & Engineering: expert support to lifting equipment

INNOVATION ZONE

28 - Global Gravity: Making lifting operations safer!

GREEN ENERGY

30 - Port of Dundee: Construction crew hired for port upgrade

30 - Equinor joins Europe’s biggest green hydrogen project, the NortH2-project

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32

31 - RWE chooses Van Oord for foundations and array cables at Sofia Offshore Wind Farm

EVERY MONTH 18 - World Project Maps 32 - Contract Awards 36 - On the Move 38 - Stats and Analytics 42 - Legal and Finance 45 - Events 46 - Community Partner: Aberdeen FC launch campaign to re-ignite pride in the Club and region

KENNY DOOLEY MAIN EDITOR Welcome to 2021 and we wish all of our clients the very best for what promises to be another challenging year, but with hope of much needed light at the end of the tunnel!

We kick off the year in lockdown and with an oil price around the $50 mark. I expect it to be a difficult first few months - at least for many in the energy sector, both locally and internationally with travel and logistics severely impacted. This year we hope to host and participate in a number of key global industry events including OTC, Offshore Europe , Subsea UK, ADIPEC and COP 26 - all being well ! Our main focus this year will be to continue to grow our online traffic and readership along with the opening of the OGV Taproom in Aberdeen and the launch of our brand new radio station - OGV Live!

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To kick us off in 2021, we are delighted to welcome Ampelmann as our first cover star of the year and they can be found on pages 4-5 sharing insights into their motion compensation technology which safely transfers personnel to an offshore structure.

Our theme this month is Rigging and Lifting and we also hear from Safelift Offshore, Survivex and AIS Training, Marine Developments Ltd and LEEA, as well as a great piece from Global Gravity and Verton on their new "Tubelock" solution.

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.

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Thanks again to our readers for all their support last year, it has not been forgotten and we wish everyone all the very best in 2021.

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COVER PARTNER

4

DEVELOPING THE MOTION COMPENSATED LIFTING SOLUTIONS

that the offshore industry is looking for

When the company was founded in 2007, Ampelmann was one of the pioneers in the industry that was later coined Walk to Work or in short W2W. Fundamental to the entry to this market was motion compensation technology.

A structure on six cylinders (comparable to an inverted flight simulator) is used to compensate the motions of a vessel in all degrees of freedom, resulting in a motionless platform on a moving vessel. This platform was utilised to support a gangway to safely transfer people from a vessel to a fixed offshore structure.

F

rom the first commercial project in 2008, the size of Ampelmann’s fleet of systems has grown to 60 today. Initially envisaged to support the growing renewables market, operators working in offshore Oil & Gas started embracing this new method of enhancing productivity, increasing safety and reducing operational cost simultaneously.

The early adopters of this new way of working already saw a potential to go beyond personnel transfer. Usually, the personnel being transferred required some additional tools and equipment to execute their work, or at least bring a decent lunch to an abandoned platform. In consultation with these clients, Ampelmann developed a small modification to the tip of the gangway, enabling the transfer of small cargo loads (up to 100 kg) from the vessel to the platform and back. This add-on has proven its use and was rolled out to the rest of the operational fleet.

Combining people and cargo transfers proved successful and added value to the W2W scope of the client. With this success, there was an appetite for more, particularly when it came to size of the loads that could be transferred. Several prototypes were developed and tested to further explore the possibilities of motion compensated lifting. A variety of innovative gangway configurations using cargo trolleys, a telescopic crane boom and even a bespoke 8-tonne lifting gangway were put to test over the years, providing invaluable lessons learned.

It was in 2015 that all these learnings came together and were incorporated into the design of a new system, the E1000.

www.ogv.energy I January 2021

Gangway to crane mode with a push of a button The E1000 system combined a smooth flow of people over the gangway with a 1-tonne lifting functionality. In the past, switching between people and cargo mode was manual. Pins were manually deployed to change from people to cargo transfer mode and the entire conversion process took at least ten minutes to complete.

As the E1000 gained traction in the market and efficiency became increasingly sought-after, there was the need to reduce operational time and improve flexibility. Ampelmann responded to this trend by developing a mechanism that not only made the switch from people to cargo transfer mode easier, but much faster, too. The E1000 now uses remote-controlled hydraulic pin pushers to fixate the gangway booms in less than one minute with the push of a single button.

With this plug-and-play system, any standard PSV becomes a very useful tool in supporting offshore construction and maintenance projects.

COVER PARTNER

5

The E1000 makes first moves in Oil & Gas A few years back, it was its clients that prompted the Dutch company to look into motion compensated lifting solutions and more recently, the Oil & Gas sector also adopted this innovation.

The E1000 recently supported cargo lifts for an IRM project in the Oil & Gas sector for a North Sea operator and provided not only the W2W solution, but also the capacity to lift necessary tools and equipment. As a result, it supported critical maintenance work on a Single Point Mooring (SPM) platform, as well as the refurbishment of a helideck.

The system was installed on a 12.1m pedestal and operated at a height of nearly 40m above sea level. Over the course of the 30day campaign, it helped transfer close to 120 tonnes of cargo.

Up next: Diversifying Ampelmann’s cargo solutions With the E1000s having now successfully operated in a number of offshore wind projects and having transferred close to 16 million kilogrammes of cargo worldwide, there is an increased interest from clients to see what else the Ampelmann cargo lifting fleet can do.

On the one hand, not every project has a heavy lifting requirement, which is why a 250kg lifting add-on is currently being rolled out over the company’s fleet of A-type systems. The A-type is Ampelmann’s signature solution, which enables W2W operation in sea states up to 3m Hs. Incorporating this add-on feature allows for small cargo transfers to be made on a project, relieving the personnel from using drag bags and other inconvenient working methods.

The E1000 now uses remote-controlled hydraulic pin pushers to fixate the gangway booms in less than one minute with the push of a single button.

On the other end of the spectrum, a number of customers have seen the potential of the E1000 but with an increased lifting capacity. For offshore wind, the general trend is an increase of turbine sizes and with that, the size and weight of tools, equipment and other parts that need to be transferred to the turbines.

To meet the increasing requirements for lifting capacity, Ampelmann’s engineering team was given the challenge to develop a new system using the existing E1000 platform. By doing so, all the operational experience and system improvements of the E1000 could be conserved. The engineering team stretched the capacity of the system and their effort has resulted in an impressive 5-tonne fully motion compensated lifting capability. This system is assembled and going through final certification on the quayside in Rotterdam, ready for operations in the beginning of 2021.

This increase of motion compensated lifting capacity opens up potential new applications in Oil & Gas projects as well.

Supporting milk runs to normally unmanned installations (NUIs), to name one, where the cranes on the NUIs are becoming redundant with large OPEX savings on maintenance and inspection. The 5-tonne lifting capacity is verified with operators to be enough to transfer lifting containers with their liquids, chemicals, lubricants and spare parts.

Over the years, it has predominantly been offshore wind installation projects that have made use of the E1000. To execute their work, offshore technicians require a lot of equipment that is not at hand on the turbines. This includes their tools, generator sets, winches and spare parts. All these items could now be easily transferred together with the technicians, from the same vessel, using the same system in an operation that is hardly impacted by the wave conditions.

The 1-tonne lifting requirement is now more or less the standard in offshore wind projects, where the equipment is designed to match this requirement. Ampelmann has a fleet of eight E1000s systems operating.

Ampelmann’s continuous development of cargo lifting solutions confirms its client-centric approach and ability to tailor its solutions quickly and to the right purpose. The company’s systems add value to offshore operations by improving efficiency and providing the highest standard of safety on the open sea.

Ampelmann is an offshore access provider delivering innovative, safe and reliable Walk to Work systems and services to the offshore energy industries globally.

Learn more at: www.ampelmann.nl

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PEOPLE IN ENERGY

months this has tempered somewhat. It took a while to set up an effective workstation, but since doing this and with access to remote team meetings working from home has not been difficult. I imagine that for those who work at the coal face of operations working from home may have been more impactful.

MARINE & LIFTING TECHNICAL AUTHORITY: CNOOC LIMITED

Despite living and working in a busy household I have been fortunate not to suffer mental health anguishes, but it has been far too easy to have boredom drive a visit to the kitchen.

BRIAN BEATTIE

How did you get into the Energy sector and how long have you been working in the industry?

What has been the highlight of your career so far?

I started as a Marine Engineer Officer on deepsea tankers. If I am honest, I had little appetite for career progression. This changed following an explosion on a vessel which led to multiple loss of life and several hours firefighting.

Recovering from this trauma changed me personally. I became unaccepting of risk and more focused as an individual.

Getting married and having children drove a need for shorter tour lengths, this led me to move into the offshore industry. Unfortunately, a slipped disc put paid to my seagoing career. I moved to an onshore role before moving to Aberdeen where I joined a Well Intervention Ship Operator.

After progressing my career to Marine Manager, I joined CNOOC in 2013 where I hold the position as a Technical Authority for Marine and Lifting.

As a Technical Authority within the Process Safety Management Department, I support safe operations through effective risk management. As owner and subject matter expert for the marine operations safe system of work, and developer of the mechanical handling safe system of work, I am called upon for clarifications or assessment of deviations.

What ambitions have you still got to fulfil professionally in your career?

How have you coped personally and as a company with the pandemic?

CNOOC reacted early to COVID-19, bringing in segregation and various additional hygiene measures across the business. Since then, there has been continued assessments of risk by the company including the return to our offices which is unlikely to happen until next year. In terms of impact to business I am not aware of any countermeasure not being effective.

www.ogv.energy I January 2021

How has your job changed in the last 5 years, what do you do more of and what do you do less of?

Despite a relentless downward spiral in the oil and gas industry the fact remains that the risks are still there. As such my role today and the activities I perform are similar to those 5 years ago. Any variation has come from the improvements in mechanical handling and marine risk management.

What does your job involve on an average day?

Personally, working from home I found initially that I was more productive due to the absence of distraction, however after several

Technically the most impactful has been the writing and roll out of a computer-based maintenance program on a Diving Support Vessel. When I was a Chief Engineer, I received an endorsement from a Diving Superintendent “the guys in the bin [in saturation] will be happy’.

Asking what he meant he replied, ‘because the guys feel safer when you are on board’. There is nothing in my career I remember with more pride.

The oddest highlight must be appearing on BBC TV News as an ‘expert’ to comment on the risks from the planned recovery of the Costa Concordia.

I have been fortunate to have had an interesting career. My ambition now lies with limiting risk of harm to persons and the environment, through continuous improvement in the governing processes. CNOOC have made many positive improvements, however like many areas within Oil & Gas there are still more to identify and resolve.

At CNOOC we have introduced a new marine operations risk management process and with it the necessary training for persons who apply it.

It takes up to 2 years before the effect of such a change can be evaluated; I would very much like to see positive outcomes from this.

If you were inviting guests to a dinner party, which 4 people would you invite and why?

Some of my work colleagues would laugh at this question as I am not the most sociable of people.

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Steve Brusatte- A palaeontologist who wrote a fantastic book called ‘The Rise and Fall of the Dinosaurs’. I would have to include Eric Brown, the test pilot… I could listen to his stories all day.

It would be a difficult choice between Lewis Hamilton and Mo Farrah; I think it would have to be Lewis only because I could interrogate him on the technical aspects of a formula one car.

Richard Osmond: because he is able to find humour in the most eclectic conversation, if he could not make it then Romesh Ranganathan. If I am to enjoy a dinner party as well as great food, it must be interesting and be full of levity.

Who has been the most influential person in your life professionally?

One of my favourite saying is that an individual is never more competent than a group. When developing standards or safe systems of work it is essential that adequate conduits exists to allow the contribution and feedback of the workforce. Because of this I would not tie this down to one individual.

Over the next 10 years what do you see will be the key challenges in the energy sector in the UK? Energy transition. Both as a reduction in production demand but also the reduction in environmental impact. Looking at my areas of expertise, in marine for me it is not reasonable to expect ship operators alone to carry the business risk of replacing or modifying existing tonnage with green power plants.

Partnerships are going to have to be built between oil and gas and the ship operators likely through long term contracts incentivised by the government.

Given the experience you have now, what advice would you have given yourself when you were just starting out in the Energy sector?

Buy amazon stock, lots of it.

My career has been driven by external factors some of which not reasonably foreseeable; if I hadn’t been on the ship that blew up the probability is I would never have taken the higher certificates of competency; If I had not done that one trip on a dynamically positioned tanker I would never have been given the opportunity to move to diving support; If I had not slipped my disc I would never have moved onshore; If I had not been placed by accident on a LOLER appointed persons course rather than a LOLER lifting accessories inspection course I would never have built up the LOLER knowledge that was so attractive to CNOOC. So, my advice would be is never stop learning, see change as a challenge not as a threat and live by the rule that on many occasions the worst decision is to not make one.

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ENERGY NEWS

9

JANUARY 2021

UK NORTH SEA

Energy Review

By Tsvetana Paraskova

The timeline for the longawaited North Sea Transition Deal, the UK’s Ten Point Plan for a Green Industrial Revolution, annual reports and surveys from industry, new field start-ups, and corporate contracts marked the past month in the UK North Sea oil and gas.

The UK’s Prime Minister Boris Johnson unveiled in November the government’s Ten Point Plan for a Green Industrial Revolution, expected to mobilise £12 billion of government investment to create and support up to 250,000 highly-skilled green jobs in the UK, and spur over three times as much private sector investment by 2030.

Commenting on the plan, OGUK’s chief executive, Deirdre Michie said: “Our industry is already in action, evolving and contributing. We were one of the first major sectors in the UK to embrace the Government’s target to achieve net zero emissions by 2050.”

“The good news for jobs and the economy is that with the right support, companies based here in the UK have the expertise to make us world leaders in tackling emissions, including through carbon capture and hydrogen production, both of which are key to the clean energy system of the future,” Michie added.

Continues >

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In December, the UK government published the Energy White Paper for the road to net zero, committing to agreeing a Sector Deal with the offshore oil and gas industry to secure the sector’s long-term future consistent with net zero.

“This year, we have seen the decommissioning sector demonstrate resilience, determination and innovation in its response to considerable challenges.

We will need all these qualities to ensure we can play our role in the energy transition, enabling us to seize the opportunities presented by energy integration, carbon capture and storage and innovation in lowemission decommissioning,” Katy Heidenreich, Supply Chain & Operations Director, OGUK, said in the foreword to the report.

“We will agree a transformational North Sea Transition Deal with the industry during the first half of 2021, focused on the economic opportunities of net zero and providing support for the people and communities most affected by the move away from oil and gas production,” the government said.

In making its energy policies for the future, the government should seek more evidence from academic experts, governments abroad, social scientists, consumer groups, independent government agencies, and civil society at large, the Institute for Government said in a report in early December. The UK government should also seek a diversity of perspectives and open up its energy models to peer scrutiny, the report recommends.

The leading offshore oil and gas industry body, OGUK, published its Economic Report 2020, which showed that oil and gas produced in the UK would continue to support energy security in the decades to come, but as part of a changing and cleaner energy mix.

Despite the many challenges brought on by the pandemic, oil and gas production in the UKCS is expected to remain in 2020 at around 2019 levels of almost 1.7 million boepd. However, just six exploration wells were spudded in 2020, the lowest on record, OGUK’s report showed.

UK emissions dropped by an estimated 10.2% in 2020, mainly due to the effects of lockdowns.

Achieving the carbon capture utilisation and storage (CCUS) goals could require around £2–2.5 billion by 2030 to develop transport and storage infrastructure, the industry body said.

Securing a North Sea Transition Deal will help unlock these opportunities and advance net zero targets, OGUK said.

“Utilising the expert technical knowledge that exists within the substantial UK oil and gas supply chain is fundamental if we are to evolve toward a lower-carbon future,” OGUK’s Michie commented on the report.

OGUK also published its Decommissioning Insight 2020 report, which found that as company expenditure is under increased scrutiny, around £500 million of expenditure has been removed from operator budgets for 2020-2022. The expected spending for 2020 is £1.08 billion, down by 30% from plans for £1.47 billion in early 2020. Reductions in expenditure have affected the supply chain, and reduced activity is now expected across almost all areas of decommissioning work during the next three years.

For the fourth year in a row, well decommissioning activity with 116 wells outweighs exploration (4), appraisal (3), and development (60) activity in the UK North Sea combined, OGUK’s report said.

Well decommissioning is expected to continue to account for the vast majority of decommissioning costs over the next decade, at 49% of total decommissioning expenditure, the report found.

www.ogv.energy I January 2021

IPPR, the Institute for Public Policy Research, the UK’s leading progressive think tank, said in a report in early December that the UK and Scottish governments should work together to set clear five-yearly targets to reduce oil and gas production, consumption and exports over time, in line with the net-zero targets and the Paris Agreement.

OGUK, published its Economic Report 2020, which showed that oil and gas produced in the UK would continue to support energy security in the decades to come but as part of a changing and cleaner energy mix.

A managed transition toward a Net-Zero North Sea “will also require the building of bridges out of the sector for the workers and businesses who will be affected and the right investment and support for the wider communities who will also be affected,” IPPR said.

Commenting on the report, OGUK’s Michie said: “The UK’s changing offshore oil and gas industry has the essential expertise to develop critical net zero solutions, including CCUS and hydrogen. At the same time, our ambitious emissions reduction targets mean we can meet the existing but declining need for oil and gas with resources produced in the UK and with fewer emissions.”

The Oil and Gas Authority (OGA) said on 2 December it had launched a study to identify the value of an energy hub on the Norfolk coast. OGA has already carried out a preliminary assessment of Bacton as the site. The study is intended to deepen understanding of whether it is a suitable location for using existing gas reserves as a transition fuel to produce blue hydrogen as an initiator for progression to green hydrogen generation.

Business confidence among the North Sea oil and gas industry dropped in 2020 to the lows last seen in the 2015 downturn, according to the 32nd Oil and Gas survey, conducted by Aberdeen & Grampian Chamber of Commerce in partnership with the Fraser of Allander Institute and KPMG UK. The findings, which cover the six months to October 2020, highlight the industry turmoil during the year.

More than three quarters of businesses, or 78%, are less confident about activities going forward, while only 1% are more confident. A total of 58% of contractors expect the outlook to worsen in 2021, with licensees and operators reporting similarly low confidence levels both now and in the year ahead, the survey showed. As much as 82% of contractors expect a decline in revenues in 2020, while 83% of contractors furloughed employees in 2020. While the extent of the 2020 reductions to workforce was not as severe as in 2016, around a fifth of surveyed firms expect to make further reductions in 2021, according to the survey.

But 69% of contractors expect to be involved in renewables in the next three to five years, the survey also showed.

“COVID-19, global uncertainty and a renewed push for climate action is impacting us all, but I believe the oil and gas industry has done as much as it can to mitigate any short-term damage and focus on long-term survival and sustainable growth as its diversification into green energy activities continues,” said Martin Findlay, senior partner with KPMG Aberdeen.

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UK North Sea

BRENT OIL PRICES OVER THE YEARS January review

Company news bp and partner Ithaca Energy started up at the end of November the Vorlich project, a Central North Sea subsea tieback, and the third major upstream project to come online for bp in 2020.

The field has been developed through two wells with peak production expected to reach 20,000 barrels oil equivalent gross per day.

“This is bp’s new strategy at play and the latest chapter in our resilient hydrocarbons story ̶ a great example of the fast-payback, high-return projects the company is focused on,” said Emeka Emembolu, bp senior vice president, North Sea. Deltic Energy Plc said at end-November that it was starting to engage with a number of its peers and operators with interest in the Southern North Sea licence P2428, which contains the Cupertino Prospect, with the aim of attracting partners to assist in opportunities towards drilling.

Apollo has been awarded a contract to provide engineering services on Total’s UK assets over the next three years. Work packages include safety engineering, environmental engineering, development engineering, process and flow assurance, facilities engineering, subsea and pipelines engineering, and decommissioning.

Jersey Oil and Gas plc said at the end of November it had entered into a conditional agreement to buy CIECO V&C (UK) Limited from ITOCHU Corporation and Japan Oil, Gas and Metals National Corporation (JOGMEC).

The acquisition gives Jersey Oil and Gas 100% ownership and full control of Licence P2170, located within JOG’s Greater Buchan Area development project.

exploration and licensing activity. Four of the prospects have been matured to drill-ready status: Verbier Deep, Cortina NE (J64), Wengen (P2170), and Zermatt (P2497). Subject to funding, a drilling campaign is planned from 2022. In the success case, development would be made via short distance, subsea tiebacks to the planned GBA facility, Jersey Oil and Gas said.

“We look forward to progressing a drilling campaign post a successful conclusion to our upcoming GBA sales process,” said CEO Andrew Benitz.

CGG and Magseis Fairfield announced their completion of the 2020 acquisition of the largest OBN survey ever acquired in the North Sea. The OBN Cornerstone 2020 multi-client survey in the UK Central North Sea began in March 2020 and has already received significant industry interest and prefunding, CGG said on 26 November.

Solids control, hazardous waste stream and wastewater expert Separo announced on 1 December a three-year contract for the provision of produced water treatment services from Neptune Energy.

Petrofac has signed a three-year partnership with Intoware, a provider of workflow automation software for mobile applications, to develop and deploy workflow automation software specifically tailored to the requirements of the oil and gas industry.

Hibiscus Petroleum provided an update on the Marigold Field Development Plan pertaining to the Crown Discovery. The project’s final investment decision (FID) has been delayed and is now expected around the end of March 2021, instead of by the end of December 2020, the company said.

In mid-December, Jersey Oil and Gas updated the market on its Greater Buchan Area

1

YEAR AGO

- BRENT OIL PRICE 2020 - $63.65 Brent crude closed at $60.56 on Friday, its biggest weekly decline in more than a year as concerns that the coronavirus will spread farther in China, curbing oil demand. The disease spread rapidly, with more than 2,800 people infected across the world and 81 in China killed by the disease in January 2020. West Texas futures fell from $59 a barrel on Monday to close Friday at $54.20. The Saudi energy minister hinted at further OPEC+ production cuts to head off another market meltdown. The EIA’s latest Drilling Productivity Report estimates oil production growth of just 22,000 b/d in February, a much slower pace than usual in recent years.

5

YEARS AGO

- BRENT OIL PRICE 2016 - $30.70 Share markets slide as oil price falls below $30 Global share markets tumbled as the prospect of an end to the Iranian oil export ban sent oil below $30 a barrel for the second time this week.

London shares fell 2.2% to 5788.2, while France's Cac 40 fell 2.4% and Germany's Dax was 2.5% lower.

Wall Street opened down sharply, with the Dow Jones index sinking 2.33% to 15,997.94 points.

It came as concern grew that Iran could restart oil exports, flooding an already over-supplied market.

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- BRENT OIL PRICE 2011 - $96.52 The crude oil markets sustained high price levels in 2011, as the spot price of Brent averaged $111.26 per barrel, marking the first time the global benchmark averaged more than $100 per barrel for a year (see chart above). The West Texas Intermediate (WTI) crude oil price averaged $94.87 per barrel, up $15 per barrel from 2010, reflecting a discount to the Brent crude oil price due to transportation bottlenecks near Cushing, Oklahoma, the physical delivery hub for NYMEX light sweet crude oil futures contracts.

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ENERGY NEWS

By Tsvetana Paraskova

Europe

Energy Review

Oil & Gas In oil and gas, Norwegian major Equinor said it was increasing the production capacity of the giant Johan Sverdrup oil field in the North Sea, which started operations in 2019.

The Johan Sverdrup field is increasing its daily production capacity, expecting to reach around 500,000 barrels of oil per day (bpd) by the end of 2020, around 60,000 bpd more than the original basis when the field came on stream.

“For the second time since the start-up the plant is able to increase its daily capacity. As Johan Sverdrup is a field with high profitability and low CO2 emissions, a production rise is great news.

The field has low operating costs, providing revenue for the companies and Norwegian society, even in periods with low prices,” said Jez Averty, senior vice president for operations south in Development and Production Norway.

Equinor also started production from the Snorre Expansion Project in the North Sea. The Increased Oil Recovery project is expected to add nearly 200 million barrels of recoverable oil reserves and help extend the productive life of the Snorre field through 2040.

Johan Sverdrup field

The UK’s ten-point plan for a green industrial revolution, increased emission reduction targets from the UK and the European Union, green energy opportunities, and more pledges for net-zero emissions from companies and organisations were the highlights of Europe’s energy landscape at the end of 2020.

Some oil and gas companies operating in Europe continued to develop resources and award contracts and others struck agreements to explore decarbonisation of operations and to enter new clean-energy markets.

Archer has been awarded a five-year contract from Aker BP, with an additional three-year extension option, to perform platform drilling operations and maintenance services on the Ula and Valhall installations in the Norwegian sector of the North Sea. The contract commences on 1 January 2021 in direct continuation of the current contract.

Spanish oil and gas firm Repsol announced its new strategic plan to accelerate the energy transition. Around 30% of Repsol’s investments through 2025 will go to low-carbon businesses, while the company will reduce its global presence in oil and gas to 14 countries, with a more efficient and focused exploration activity. The plan is aligned with the firm’s ambition to reach net-zero emissions by 2050.

Wintershall Dea became the latest company to set climate targets, aiming to reach net-zero upstream activities by 2030 and reduce the methane intensity of its total gas production by 0.1% by 2025. As one of Europe’s leading independent gas and oil producers, company supports the EU’s goal of achieving carbon neutrality by 2050.

“For E&P companies it can’t just be business as usual,” Wintershall Dea’s chief executive Mario Mehren said in a statement, noting that “The future of energy is low-carbon.”

Green Policies & Renewables The UK government unveiled a Ten Point Plan for a Green Industrial Revolution, which is expected to create and support up to 250,000 jobs in the country. Offshore wind, hydrogen, electric vehicles, carbon capture, and energyefficient buildings will be given priority and government support. As part of the plan, the sale of new petrol and diesel cars and vans will end from 2030, 10 years earlier than planned.

But the sale of hybrid cars and vans that can drive a significant distance with no carbon coming out of the tailpipe until 2035.

“The plan – which is part of the PM’s mission to level up across the country - will mobilise £12 billion of government investment to create and support up to 250,000 highly-skilled green jobs in the UK, and spur over three times as much private sector investment by 2030,” the government said.

A few weeks later, the UK government announced ambitious new emissions target setting the UK on the path to net zero by 2050.

The new plan aims for at least 68% reduction in greenhouse gas emissions by the end of this decade, compared to 1990 levels.

Raising the UK’s climate ambitions for 2035 will put Net Zero within reach and change the UK for the better, the Climate Change Committee (CCC) said in December. The CCC shows that polluting emissions should decline by nearly 80% by 2035, compared to 1990 levels – a big step-up in ambition. Just 18 months ago this was the UK’s 2050 goal.

“The Sixth Carbon Budget is a clear message to the world that the UK is open for lowcarbon business. It’s ambitious, realistic and affordable. This is the right carbon budget for the UK at the right time. We deliver our recommendations to Government with genuine enthusiasm, knowing that Britain’s decisive zero-carbon transition brings real benefits to our people and our businesses while making the fundamental changes necessary to protect our planet,” Climate Change Committee Chairman, Lord Deben, said.

www.ogv.energy I January 2021

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“Early investment is crucial to sustain and create jobs, secure technology leadership, drive down emissions and capitalise on export opportunities,” the report notes.

Up to £416 billion in investment would be required over the next 30 years, but this creates a fantastic business opportunity that by 2050 could potentially contribute £125 billion per year to the UK economy, while supporting more than 230,000 jobs.

“The skills, expertise and infrastructure of the oil and gas sector and its supply chain will be vital in unlocking these opportunities and contributing to development of the great potential for offshore wind, floating wind and marine energy deployment in Scotland’s waters,” said Scotland Energy Minister Paul Wheelhouse.

Dogger Bank wind farm owners, Equinor and SSE, announced financial close on the first two phases of the project, representing in aggregate the largest offshore wind project financing to date globally. A week later, Italy’s Eni entered the world’s largest offshore wind project with the acquisition of a 20% stake in the Dogger Bank 2.4 GW project from Equinor and SSE.

The EU marked one year from the EU Green Deal with the European Commission endorsing the ambitious proposal for a new EU climate target for 55% emissions reduction by 2030.

“It puts us on a clear path towards climate neutrality in 2050,” European Commission President Ursula von der Leyen said.

In a major policy shift, the UK said it would commit to ending taxpayer support for fossil fuel projects overseas as soon as possible, as the government works to support the sector’s transition to low-carbon energy.

The Crown Estate outlined in early December its commitment to address the environmental emergency by aligning to the 1.5°C goal of the Paris Agreement, with a target to become a net zero carbon business by 2030 and climate positive thereafter.

The Crown Estate outlined in early December its commitment to become a net zero carbon business by 2030 and climate positive thereafter.

The Crown Estate and the UK Government launched on 7 December a new partnership to protect and restore the UK’s marine environment, as the nation seeks to chart a course towards net zero emissions by unlocking the green energy potential of the UK seabed.

The partnership, ‘Offshore Wind Evidence and Change Programme’, will gather and harness data and evidence, to support the growth of UK offshore wind, crucial for the sector as it gears up to meet the Government’s 2030 ambitions for 40 GW of offshore wind.

“Minimising any impact of the infrastructure needed to connect our projects to the electricity network is as important to us as it is to local communities which are being regenerated by offshore wind,” the Co-Chair of the Offshore Wind Industry Council, Danielle Lane, Vattenfall’s UK Country Manager, said, commenting on the partnership.

In order to be a global leader in clean energy, the UK must start investing now, a report from OGTC and Offshore Renewable Energy (ORE) Catapult said.

Tees Valley Mayor Ben Houchen said on 7 December that planning permission had been granted for the 4.5 million sq ft manufacturing site at Teesworks for offshore wind. The project, which will be built at the former SSI steelworks in Redcar, will create 9,000 jobs, as well as 1,000 construction jobs during the eight-year build programme.

The UK approved a large battery storage project in Essex, granting consent to Edinburgh-headquartered energy company InterGen to build the UK’s largest battery storage project at DP World London Gateway on the Thames Estuary, which will also be one of the world’s largest battery projects.

Norway’s Equinor joined Europe’s biggest green hydrogen project, the NortH2-project, which will use renewable electricity from offshore wind off the coast of Netherlands.

The UK approved a large battery storage project in Essex, granting consent to Edinburgh-headquartered energy company InterGen to build the UK’s largest battery storage project

Equinor also announced that it would explore possibilities, together with Panasonic and Hydro, for establishing a sustainable and cost-competitive European battery business.

The companies will work together towards summer 2021 to assess the market for lithium-ion batteries in Europe and mature the business case for a green battery business located in Norway.

The Basque Country and Scotland announced in early December ‘EuropeWave’ – a new five-year collaborative programme that will channel €20 million to the most promising wave energy concepts.

Italian oil and gas major Eni and the country’s top utility Enel started working together to develop green hydrogen projects via electrolysers that will be located near two of the Eni refineries where green hydrogen appears to be the best decarbonisation option.

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ENERGY NEWS

By Tsvetana Paraskova

US

ENERGY OVERVIEW

What’s Next After the 2020 Crisis?

The US oil and gas industry welcomed 2020 with crude oil production soaring to record highs and oil prices at $60 per barrel, allowing most shale producers to turn in profits from drilling new wells.

T

hen came the COVID-19 pandemic, with oil demand and prices plunging, and upended all forecasts and plans of every oil company in the world.

The U.S. industry reacted quickly to preserve much-needed cash in the downturn—it slashed capital budgets, reduced drilling activity, and curtailed production in response to unsustainably low oil prices in the spring of 2020. The price of the US benchmark, West Texas Intermediate (WTI), plunged for the first time into negative territory and closed on 20 April at minus $37.63 a barrel.

2019 to 11.3 million bpd in 2020 and to 11.1 million bpd in 2021. EIA expects US oil production will decline to below 11.0 million bpd in March 2021, as declining production rates at existing shale wells will outpace production from newly drilled wells in the coming months. Oil production could then rise to 11.4 million bpd in December 2021 as drilling is set to increase in response to higher oil prices in 2021.

However, as Chapter 11 filings by US E&Ps continue to pile up, onshore oil production from companies that filed for bankruptcy in the last two years is set to decrease by about 25% by the end of 2021, or by about 200,000 bpd compared to current output levels, Rystad Energy said in an analysis in mid-December.

“Most of the growth in US tight oil which was expected towards the end of 2021 is at risk to be offset by the decline in output from companies that have filed for restructuring in the last two years, as most of them are currently in their base decline phase with limited new well activity,” said Artem Abramov, Head of Shale Research at Rystad Energy.

Bankruptcies Pile Up North American oil producers and oilfield services companies continue to file for protection from creditors. According to the latest tally of law firm Haynes and Boone as of November 30, 2020, as many as 45 E&P companies filed for Chapter 11 in 2020 through end-November, with the number of filings the highest in the second and third quarter, at 18 and 17 filings, respectively. Haynes and Boone’s oilfield services bankruptcy monitor paints an even grimmer picture—as many as 57 firms filed for bankruptcy in 2020 through the end of November, with the number of third-quarter filings at a record high for a quarter, 27.

The fallout from the price and demand collapse was felt in every corner of the US industry. Annual crude oil production in the US is expected to have declined by around 1 million barrels per day (bpd) in 2020 compared to 2019. All E&P and oilfield services companies moved to cut costs, including by slashing capex and laying off In the oilfield services personnel, with layoffs numbering in the sector, estimated thousands.

Many weakly positioned E&P and oilfield services companies in North America filed for bankruptcy protection, unable to meet debt maturities as they were saddled with unsustainable amounts of liabilities.

job losses due to pandemic-related demand destruction totaled 91,680.

Other companies across the US shale patch, those with healthier balance sheets, moved to merge to save additional costs and create synergies, launching the longawaited consolidation in the US oil and gas industry.

US Oil Production Set To Decline from 2019 Highs US producers have restored a large part of the production they had curtailed in the spring of 2020 in response to the low prices, but total output is set to trend lower in 2020 and 2021 compared to 2019 as drillers are not investing enough in new drilling to replace the decline in production from existing shale wells.

Most executives—66%—polled in the Dallas Fed Energy Survey in September said they believed US oil production had peaked.

According to the latest estimates from the US Energy Information Administration (EIA) in the Short-Term Energy Outlook for December 2020, US crude oil production on an annual average basis is set to drop from 12.2 million bpd in

www.ogv.energy I January 2021

“While the pace of producer bankruptcy filings has slowed since last summer, OFS filings remain active. On average, around ten OFS bankruptcies per month have been filed since July with another nine filings added in October and three in November,” Haynes and Boone said.

Job Losses Mount

The downturn also led to thousands of US oil and gas industry job losses, as companies, including the largest corporations such as ExxonMobil and Chevron, reduced staffing to cut costs.

In the oilfield services sector, estimated job losses due to pandemic-related demand destruction totalled 91,680 as of November 2020, according to preliminary data from the Bureau of Labor Statistics (BLS) and analysis by the Petroleum Equipment & Services Association (PESA). OFS employment is down 81,610 jobs since November 2019, PESA’s November report showed. Oilfield services and equipment sector employment rose slightly for a third month, adding an estimated 2,665 jobs in November, PESA’s analysis showed, yet the OFS employment fell by 10.9% from 747,446 jobs in November 2019 to 665,836 jobs in November 2020.

In Texas, the largest oil-producing state, oil and gas industry job losses are worse than previously reported, based on updated employment estimates from the Federal Reserve Bank of Dallas and the Texas Alliance of Energy Producers.

The headline industry employment data, updated and revised once a year, points to the loss of almost 70,000 jobs from December 2018 through August 2020. However, new data from the Dallas Fed and the Alliance suggests the employment loss is much deeper, with more than 80,000 jobs lost during the same period, the Texas Alliance of Energy Producers said.

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“More than 35% of all upstream jobs were lost in a 20-month period from December 2018 to August 2020. Most of that occurred in 2020, with the industry shedding nearly 30% of upstream oil and gas jobs just between February and August of this year,” said Karr Ingham, Petroleum Economist for the Texas Alliance of Energy Producers and the creator of the Alliance Texas Petro Index (TPI).

Consolidation Picks Up Pace After recovering from the initial blow of the low demand and prices, US exploration and production companies began to announce mergers and acquisitions (M&As), looking to emerge stronger and better positioned from the 2020 crisis. Firms with quality assets and healthy balance sheets have sought natural fits to complement their operations and strategies.

Chevron acquired Noble Energy in the first major deal announced after the pandemic hit the industry. Devon Energy and WPX Energy announced their merger in September, while ConocoPhillips is buying Permian-focused Concho Resources, and Pioneer Natural Resources is acquiring Parsley Energy.

Analysts at Wood Mackenzie see those deals as natural fits, expecting the resulting larger companies to fill the gaps in the portfolios of the stand-alone firms.

Cautious Optimism for 2021 Looking forward, the oil and gas industry in Texas is cautiously optimistic for 2021 with a new US administration in the White House, according to a survey of the Texas Alliance of Energy Producers of more than 160 oil and gas professionals carried out in November.

The biggest macro-level concerns for the industry in Texas are: 1) the price of oil (59%), 2) demand for oil and gas (47%), and 3) federal overregulation (43%), the survey showed.

Despite the issues confronting the industry, 75% of respondents believe the industry will be better (44%) or about the same (31%) one year from now.

Regarding their own business outlook for 2021, about 70% are neutral or positive, while nearly onethird are negative.

“As the Biden administration prepares to take office, Texas energy professionals are concerned about federal overreach and other issues but are generally positive about the industry’s future,” the Texas Alliance of Energy Producers said.

“Our industry is resilient, and the optimism reflected here shows that,” Jason Modglin, President of the Texas Alliance of Energy Producers, said, commenting on the survey.

Modglin added:

“Concerns about economic conditions and burdensome federal overreach are very real, but these results and comments demonstrate a determination to fight and persevere.”

“The View from Down Under”

By Andy Hogan

T

he Australian Government announced early in December that after consideration they will decommission the Northern Endeavour floating production storage in the Timor Sea and offtake facility and carry out remediation of the associated oil fields.

In reaching this decision, the Government examined various options, and found decommissioning to be the most cost-effective and safest option for the facility and fields.

Government consideration included review of expert advice on the prospects of restarting the facility, and the scope of works involved in decommissioning.

To achieve the best result at a reasonable price, a lead contractor will be selected through a global open tender process.

It is reported that Woodside have issued a tender for a semi sub for the P&A of Greater Enfield as part of the decommissioning of the field starting early in 2022. This will be the third P&A of an Australian offshore field in recent times after BHP P&A’d the wells on the Griffin Field in 2017 and Chevron abandoned the shallow water Thevenard Island field in two separate campaigns over 2017/18 and 2019/20.

At the other end of the cycle, it is anticipated that some $11bn of LNG related spend in Australia will reach the FID stage over 2021, this includes Mitsui’s Waitsia onshore development, Santos’ Barossa and Woodside’s Scarborough projects, as well as the Port Kembla LNG import terminal which will supply the east coast market.

in the Timor Sea in 25m of water, it is expected to take place around the turn of 2021/22. Carnarvon also announced this month that they have an agreement in place with Advance Resources, an AIM listed company, who will provide up to US$20m of the costs to drill the well in return for up to 50% equity in the field.

Carnarvon will remain the Operator.

Still in Timor-Leste, news is awaited of the award of the rig contract by Santos for the 3 well infill campaign on Bayu Undan. The Noble Tom Prosser jackup is the favourite, it was recently moved from Gippsland in SE Australia to Darwin where it is now warm stacked, in ‘pole position’ for the Bayu Undan work.

This will extend the life of the field and push decommissioning out to 2024.

The previous Operator of the field, ConocoPhillips had tendered for a jackup in mid-2019 for P&A of all 32 wells in the field starting over a window between 2021 and 2022.

IPB Petroleum announced they have secured funding for the Idris well in 80m of water off the NW coast after farming down 50% of their interest to Quay Resources International, the initial tranche to drill the well and cover interest and costs is US$31m with option for an additional US$200m to develop the field. The well is expected to be drilled over the first half of 2022.

Wishing all the readers of this column a Happy and Safe Christmas and New Year.

Best Regards, Andy

Santos announced that the FID for the development of the Dorado field off the NW coast of Australia will slide by 12 months to mid-2022, with drilling of the 10 development wells pushed to 2024+. This is believed to be due to a desire to conserve capital after announcing full year results impacted by the low price of oil.

Carnarvon Petroleum, though their TimorLeste subsidiary, issued an EOI for Drilling Management Services for the Buffalo well

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ENERGY NEWS

By Tsvetana Paraskova

MIDDLE EAST Energy Review

December was a busy month for oil and gas producers in the Middle East.

The major oil-producing nations in the region, which are also the most influential members of OPEC, had to decide how to proceed with their oil supply policy in 2021, in light of the still weak global demand. At the same time, large state oil companies in the Middle East awarded major contracts and signed strategic agreements.

OPEC+ Reaches compromise agreement on oil supply policy

The group gave the laggards in compliance, such as Iraq and Nigeria for example, time until March 2021 to ensure they have compensated fully for the lack of compliance at the beginning of the pact in the spring and summer of 2020.

The OPEC+ alliance, led by OPEC’s top producer Saudi Arabia and by Russia, agreed – after days of intense negotiations – to slightly raise its collective oil supply to the market in January 2021.

Prior to the meeting, the oil market and analysts had expected that the group would roll over the existing cuts of 7.7 million barrels per day (bpd) for three months until the end of March 2021, instead of easing those cuts by 1.9 million bpd, as OPEC+ had originally planned in the deal signed in April 2020.

OPEC met on November 30 to try to reach a unanimous decision about the path forward. It soon became clear, however, that divisions are deeper than initially expected, after OPEC said at the end of the day the meeting was adjourned and would resume on the following day. Talks within OPEC and between OPEC and the non-OPEC group of producers led by Russia continued until December 3, instead of until December 1, as it was initially planned.

As usual with OPEC and OPEC+ meetings, various rumours were circulating all week regarding who was willing to keep the cuts as-is and who was pushing for an increase in production. It looked like Saudi Arabia was pushing for a rollover of the existing cuts, but other members of the alliance wanted to be able to start boosting their production. Since all decisions need to be taken unanimously, the deadlock continued for days.

In the end, a compromise decision was made, which gave the market some clarity about the production it should expect from OPEC+ at least in January. OPEC+ decided to ease the current 7.7-million-bpd cuts by 500,000 bpd in January 2021, meaning that the total cuts would be 7.2 million bpd as of the start of the New Year.

www.ogv.energy I January 2021

Saudi Arabia and Russia agreed a compromise decision which gave the market some clarity about the production it should expect from OPEC+ at least in January 2021.

The OPEC+ producers also agreed to hold monthly OPEC and non-OPEC ministerial meetings starting January 2021 to assess market conditions and decide on further production adjustments for the following month, with further monthly adjustments of no more than 500,000 bpd.

“Looking ahead, the Meeting emphasised that it was vital that DoC participants, and all major producers, remain fully committed to efforts aimed at balancing and stabilising the market. It noted that renewed lockdowns, due to more stringent COVID-19 containment measures, continue to impact the global economy and oil demand recovery, with prevailing uncertainties over the winter months,” OPEC said.

Although a 500,000-bpd increase in collective OPEC+ supply for one month, for now, was below the widely expected rollover of the current cuts for three months, analysts largely welcomed the news, most of all because the OPEC+ group somehow managed to reach a unanimous decision on production policy and show unity to the market amid rumours that major producers are frustrated with the hefty cuts.

The OPEC+ alliance had to take into account various factors, including resurging COVID-19 cases in major developed economies, on the one hand, and the promise of vaccines boosting economies and oil demand later next year, on the other hand. Rising oil supply out of Libya, which is exempted from the cuts, has also been of concern to the market and OPEC+ of late. As of early December, Libya’s crude oil production had already returned to the levels last seen in January 2020, just before an eight-monthlong blockade essentially stopped Libyan oil exports until September.

Middle East Major Middle East oil firms enter new agreements While OPEC+ was busy deciding the nearest-term production policy in the Middle East, the biggest state oil companies in the region signed several contracts, strategic agreements, and deals.

Saudi Arabia’s oil giant Aramco awarded LongTerm Agreements (LTAs) to eight companies for oil and gas brownfield projects, as part of its new contracting strategy for the oil and gas brownfield and plant upgrade projects. The agreements are for a six-year base period and extendable for another six years. The scope of the LTAs includes engineering, procurement, construction, start-up and pre-commissioning of each project, as well as the installation of the upgraded facilities in the designated operating areas.

“These LTAs which are associated with huge business which allow us to boost the performance of our brownfield and upgrade projects through new technologies and pioneering environmental sustainability fundamentals, while improving contract procurement and construction phases,” said Ahmad A. Al Sa'adi, Aramco’s Technical Services Senior Vice President.

Aramco also announced in early December an agreement with oilfield services provider Baker Hughes to form Novel, a 50/50 joint venture to develop and commercialise a broad range of non-metallic products for multiple applications in the energy sector. Non-metallic products are used in a variety of industries, including the oil and gas sector, the automotive, building and construction, packaging, and renewables industries.

The United Arab Emirates (UAE) announced at the end of November the discovery of substantial recoverable unconventional oil resources located onshore, estimated at 22 billion stock tank barrels (STB), and an increase in conventional oil reserves of 2 billion STB in the Emirate of Abu Dhabi.

The UAE’s Supreme Petroleum Council (SPC) also approved ADNOC’s capital expenditure (CAPEX) plan of AED 448 billion (US$122 billion) for 20212025 to enable smart growth.

Saudi Arabia’s oil giant Aramco awarded Long-Term Agreements (LTAs) to eight companies for oil and gas brownfield projects, as part of its new contracting strategy for the oil and gas brownfield and plant upgrade projects.

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The Abu Dhabi National Oil Company (ADNOC) awarded a contract worth up to US$519 million to BGP Inc., a subsidiary of China National Petroleum Company (CNPC), to further expand the scope of the world’s largest combined threedimensional (3D) onshore and offshore seismic survey, which is currently taking place in the Emirate of Abu Dhabi.

ADNOC has also officially launched its second trading arm, ADNOC Global Trading (AGT), which started trading of refined products globally. The trading unit is a joint venture of ADNOC (65%), Eni (20%), and OMV (15%).

ADNOC awarded in early December an exploration concession agreement to U.S. oil and gas firm Occidental, awarding the exploration rights for Abu Dhabi Onshore Block 5. Occidental will hold a 100% stake in the exploration phase, investing up to US$140 million, including a participation fee, to explore for and appraise oil and gas opportunities in the block that covers an onshore area of 4,212 square kilometres southeast of Abu Dhabi city.

“We see significant potential in Onshore Block 5 and, in partnership with ADNOC, will continue to work to help unlock the vast untapped resources in Abu Dhabi,” Occidental’s president and chief executive Vicki Hollub said in a statement.

Oman created via a royal decree a new company, Energy Development Oman SAOC (EDO), which will buy a stake in state-held Petroleum Development Oman (PDO), the top producer of crude oil and natural gas in Oman. The newly-created company will hold an interest in the Block 6 licence, which pumps most of the oil and gas in the Sultanate.

The new company has a mandate to invest in oil and gas as well as renewable energy in and outside Oman.

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WORLD PROJECTS

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WORLD PROJECTS MAP

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Output from the Kashagan field is planned to grow from a current 320,000 b/d to 450,000 b/d in the first phase of the project, out to 2030. A prolonged second development phase will increase production to 700,000 b/d by the end of 2036 and to 900,000 b/d by late 2042. The third and final development phase is set to see output peak at 1.1 million b/d in 2055, according to NCOC. The operator is now confident that it will be able to finish the first phase of the development by 2030 without any more major delays or setbacks, despite this phase calling for the construction of additional subsea and onshore pipelines and another onshore gas processing facility.

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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.

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KAZAKHSTAN NCOC US$55bn

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SENEGAL Woodside US$4.2bn

QATAR North Oil Company US$2bn

MEXICO BHP US$11bn

USA ExxonMobil US$240mn

Modec has been given the Operations & Maintenance contract for the Sangomar FPSO by Woodside.

North Oil Company (NOC) is evaluating technical bids from contractors for four EPC packages comprising the third phase of its Gallaf project. The four packages comprise of: Construction of at least two WHPs plus some T&I of other facilities; a 33,300-tonne fixed steel CPP; multiple segments of subsea pipelines; and, modifications and other brownfield elements.

McDermott has been awarded an extension for Pre-FEED phase on the Trion project. The Pre-FEED extension is expected to create greater value for the project by concentrating on the optimisation of the design and execution strategy. Since the contractor is currently in a Pre-FEED design contest it is assumed that this will eventually apply to all participants.

The proposed project would improve processing capability, increase flexibility for meeting market demand, advance overall site competitiveness, and install technology to reduce volatile organic compound emissions by 10%. The project is pending final engineering, design and investment decisions. ExxonMobil expects to make a decision to proceed with the project in 2021.

Modec confirmed the contract will cover all in-country installation and commissioning activities followed by an initial 10-year operations and maintenance term, with up to 10 oneyear extension options.

www.ogv.energy I January 2021

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INDONESIA Medco US$60mn

Medco has announced that the Hiu project will be fast-tracked in 2021 to 2022.

According to the operator this will be a satellite project that will involve two oil pools at the main Hiu field developed as subsea completions tied back to an existing production facility. The project is currently in the front-end engineering and design phase. Medco is understood to have prepared EPCI tender documents for the project.

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TAIWAN Foxwell US$2.1bn

NORWAY Equinor US$640mn

BRAZIL Petrobras US$3bn

Teras Offshore has been awarded a contract valued at US$83.4m for the transport and installation of 31 9.5MW turbines for the project. The tender was awarded by Foxwell (Shinfox Corp). It is understood that detailed design of the project is scheduled for 2021, with manufacturing of components to commence in 2022.

Aker Solutions has signed a letter of intent with Equinor for the delivery of a subsea production system to the Kristin Sør oil and gas satellite fields. The contract value is about NOK 1 billion ($114.2 million), with options for some additional work.

The intention is to start work during 2021, and to complete the delivery in the first half of 2023.

Petrobras has confirmed plans to move ahead with the Mero-4 project which will featured a chartered FPSO. Start-up is expected in 2025, according to the company's 20212025 investment forecast.

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RIGGING & LIFTING

By Tsvetana Paraskova

Rigging & Lifting:: Equipment and Service Providers Brace for Another Year of Uncertainty

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ver the past months, providers of equipment and services for the oil and gas industry, including lifting and rigging, have had to cope with the twin challenge of the Coronavirus pandemic and the crash in oil prices that plunged the oil and gas industry in the second downturn in less than five years.

The pandemic-driven collapse in oil and gas demand and prices crushed profits and profit margins, and the exploration and production (E&P) companies immediately

www.ogv.energy I January 2021

started in March and April 2020 to cut capital expenditure (CapEx) budgets for the year. At the end of 2020, upstream firms were still cautious about their plans for 2021 as uncertainty continued to be prevalent on the oil markets. E&P also deferred some projects due to COVID-19 and the measures to contain the spreading of infections, especially to offshore rig personnel.

The oilfield services industry globally has lost many jobs since March 2020. The UK supply chain found itself again under

increased pressure. Analysts say that the oilfield services industry will be the last to recover from the 2020 downturn as the supply chain typically feels the impact from the upstream with a lag of several months.

As the industry braces for another year of uncertainty in 2021, the UK supply chain is increasingly thinking of diversifying into renewables, especially offshore wind, which is now a key pillar of the UK’s plan for a green industrial revolution.

RIGGING & LIFTING Slow Recovery In 2020, most upstream companies slashed capital budgets and are unlikely to raise them significantly in 2021, even if the market will recover from the 2020 lows, Fitch Ratings said in a report in December 2020. Improvements, however, are set to be moderate and will lack certainty as oil demand is unlikely to recover to pre-pandemic levels by the end of 2021 unless there is a quick progress with mass vaccinations against the Coronavirus, the rating agency said.

“We expect most sub-sectors to show some improvements in 2021, but oilfield services (OFS) companies will continue to be under more pressure compared with companies in the upstream, midstream and downstream segments,” Fitch Ratings noted.

Oilfield Services Employment Declines The downturn in 2020 has claimed thousands of jobs in the oilfield services industry.

In the United States alone, estimated job losses due to pandemic-related demand destruction totalled 91,680 as of early December 2020, with OFS employment down by 81,610 jobs since November 2019, the Petroleum Equipment & Services Association (PESA) said in a report about the job losses as of November 2020. U.S. services and equipment sector employment rose slightly for a third month, adding an estimated 2,665 jobs in November. But the losses since March have topped 91,000 jobs, with heaviest losses in April, at 58,738 jobs — the largest one-month total since at least 2013, PESA said.

In the UK, the leading representative body for the UK’s offshore oil and gas industry, OGUK, warned after the price crash that up to 30,000 jobs could be lost in the oil and gas sector, and called for the transition to net zero to be put at the heart of recovery plans.

UK Supply Chain Under Pressure The sentiment among companies across the oil and gas industry declined significantly in 2020, OGUK said in November 2020 in the Autumn Snapshot of its Business Outlook 2020.

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Many companies in the UK oil and gas supply chain have started looking to diversify in other sectors of the energy industry, OGUK said in its Economic Report 2020 in December.

“Coming into 2020, OGUK members were expressing increased positivity in their outlook for the year ahead, in line with initial forecasts for stable investment and activity levels. However, the subsequent price collapse and necessary revisions to company business plans and strategies completely changed the industry landscape in a short period of time, as reflected in the sentiment levels seen throughout Q2 and Q3,” OGUK said.

In a sign that uncertainties in the market are likely to persist, companies haven’t changed much their outlook for 2021, according to the report.

“Companies across the supply chain continue to see revenue and margin reductions, and many are operating at unsustainably low levels.

However, it will take time for the activities lost this year to be recovered and it is not simply a case of moving everything into 2021,” OGUK said. The industry association expects that it could take two to three years to re-phase and recover the activity lost from 2020.

representative energy supply chain businesses, 49% of those chose diversification as a strategy to grow their business during a market crisis. De-risking revenues to rely less on oil and gas was the most used growth strategy, the report found.

Although 90% of companies surveyed were active in oil & gas, 26% of them had already diversified into renewables, and 72% of businesses diversified into non-energy sectors such as infrastructure, industrial, and pharmaceuticals, EIC’s report found.

Many companies in the UK oil and gas supply chain have started looking to diversify in other sectors of the energy industry, OGUK said in its Economic Report 2020 in December.

Diversification Opportunities

More than 75% of OGUK supply chain members are already providing some services to industries other than oil and gas, an OGUK sentiment survey in the third quarter of 2020 showed. Moreover, 85% of OGUK supply chain members expect to boost their diversification efforts further over the next two years due to the current market conditions.

Due to oil and gas market uncertainties, the UK’s oil and gas supply chain has stepped up this year diversification into industries other than oil and gas, the Energy Industries Council (EIC) said in a report in July.

The UK offshore oil and gas and wind sectors, which have so far operated in relative isolation, now have the opportunity to create synergies by collaboration, Westwood Global Energy Group said in an analysis in November 2020.

According to EIC’s Survive and Thrive Insight report, which provided information from 40

The oil and gas sector’s experience in offshore infrastructure will be of most benefit in offshore wind, with foundations, structures, project management, vessel operations, working with moving cables, seabed surveys, and Operations and Maintenance (O&M), David Linden, Head of Energy Transition at Westwood, says.

“The oilfield support and services sector also has transferable assets and skills, such as in the provision of tugs, mooring systems, heavy lifting vessels and cabling. It is likely the most synergies will be realised in floating wind, as this will require a set of capabilities that many offshore wind players do not have,” Linden wrote.

EPC contractors and the supply chain could support offshore wind in the design, manufacturing, and installation, as well as in platform electrification and the repurposing of oil and gas infrastructure, primarily for green hydrogen, according to Linden.

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COMPLIANCE

Rigging & Lifting Banksman / Slinger

TRAINING MANAGEMENT SOLUTIONS Namaka Compliance are able to offer the market a Training Management Solutions (TMS) with a difference.

Rather than provide regulatory training from one provider we can choose a more cost effective option for the client that doesn’t reduce the quality in terms of delivery. We have a working relationship with training providers who provide the regulatory training such as BOSIET,GWO etc We are able to offer a variety of Skills and Behavioural courses as an organisation, with skills such as Rigging and Lifting, Banksman Slinger etc and also to provide Leadership Progression and team engagement as part our behavioural based services. Many of our courses are offered onsite as well offshore and internationally. Namaka Compliance as part of the Namaka Group works with Namaka Subsea who are also capable of delivering a raft of training required in the subsea sector.

Our TMS also enhances our partnership with Sonic as they are a recruitment company which specialises in retaining the best talent and knowledge within the industry, all this is on their digital platform that works in tandem with Namaka Compliance’s ‘Athena’ Competence Management System which ensures that as part of a TMS the necessary and relevant training is selected for each competence discipline award.

The benefits of our TMS: ● ● ● ● ● ● ●

Training Gap Analysis All Records Held online Bespoke Training Programmes Career Mapping One Source of Funding Provision of Trainers onsite Selection of trainig through Partners

For more information contact: support@namakacompliance.com +44 [0] 1224 289 766

RIGGING & LIFTING

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Case Study 1 : Davit Crane : New-Build FPSO Challenge : The customer required a solution to enable Pigs to be handled & lifted within the mooring turret complex on a new-build FPSO project. The equipment design had to be explosion proof for use in an ATEX Zone 1 hazardous area and be in full compliance with NORSOK R-002 & their own strict project specification.

SOLUTIONS FOR complex handling, lifting & rigging challenges!

Despite the backdrop of a challenging business environment Safelift Offshore have continued to invest in the expansion of the company’s Design & Engineering resources, which complement & enhance their proven manufacturing expertise developed over 25 years in business.

Perhaps, at this time more than ever due to reduced manning levels & diminished industry knowledge, Safelift Offshore are supporting their customers by delivering safe and effective engineered solutions through concept, design, build, test and supply.

Every day Safelift Offshore find themselves in discussion with people working at the sharp end of handling & lifting operations, interacting with technical authorities and safety departments from one company to another, to specify and optimise a solution to overcome a specific handling problem.

“Having a business partner with a collaborative, fresh & innovative approach to solving often very complex & specific handling, lifting or rigging equipment and challenges within multiple energy industries is of paramount importance” observes Hugh Ramsay, Group Sales Manager.

“This is where Safelift Offshore excel because of constructive dialogue with the customer and a proven willingness to complement their own efforts to achieve the best outcome in terms of the performance, safety & versatility of the equipment they need to utilise for a particular application or work scope”, he adds.

“These examples highlight Safelift’s breadth of experience in providing our customers with an initial conceptual design, which can then be fully engineered, fabricated, load tested and factory or field tested to provide an advanced product that’s wholly suitable for any technically demanding usage and, moreover, we regularly turn-round such projects within a short space of time as the customer’s schedule demands” the company remarks.

In addition, Safelift Offshore continue to facilitate international Greenfield and Brownfield technical procurement, providing full material handling equipment packages & working closely with EPC contractors worldwide. Through Safelift’s engagement at the FEED stage they are able to influence optimal product selection and promote industry best practice thus ensuring safe, practical and fit for purpose equipment is specified at the outset enabling effective utilisation of the company’s industry leading knowledge.

Two recent Case Studies are demonstrative of the company’s abilities to routinely deliver these sort of product solutions >>

Hugh Ramsay comments:

“The development of new products or the focus on project solutions utilising our in-house design and engineering specialism and long experience has meant we are consistently positioned at the forefront of the lifting and mechanical handling industry and engaged with multiple energy sectors. This approach helps differentiate Safelift in today’s business environment”.

Solution : Design and supply a pedestal mounted fixed Davit Crane incorporating a manually activated hydraulic hand pump enabling the jib to be extended or retracted and moved up or down; provision to swivel 360°; special user benefits included a steel overlapping weather cover protecting the bearings against water ingress, a Plaswood hook buffer preventing steel on steel contact when winching & removable handles to let the operator achieve sufficient torque to rotate the crane under load.

Case Study 2 : Special Open Top Container : Nuclear Power Plant Decommissioning Challenge : The customer required a safe method of handling, transporting and storing 3-off radioactive steel flasks as part of their work scope on a Nuclear decommissioning project. The flasks could only be loaded from above & then have to be kept securely inside the container for a number of years until such time as they can be safely disposed of.

Solution : Design and supply a 20ft x 8ft special build Open Top Container with a reinforced base structure, guide plates to help position the 3-off steel flasks & total payload not exceeding 28 tonne; to be lifted from the bottom ISO corner castings; special user benefits included 2-off personnel access doors for inspection requirements and a bespoke 4-part sliding roof system for loading and unloading the equipment & designed to be operated and locked in place from ground level and incorporating all relevant weather seals and rain reflectors to prevent water ingress; the unit was supplied complete with a proprietary 3-coat offshore paint system plus all necessary safety markings and stenciling.

Safelift Offshore – design engineers, manufacturers & suppliers of offshore mechanical handling equipment – Deck Baskets, Drum Handling, Pallet Trucks, Offshore Containers and more!

Learn more at: www.safelift.co.uk

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RIGGING & LIFTING

SURVIVEX AND AIS TRAINING see uplift in demand for onboard rigging and lifting training

Rigging and Lifting training has always been a core part of Survivex and AIS Training’s centre portfolios but during COVID-19 there has also been a surge in demand for onboard training in these skills.

With two state-of-the art rigging and lifting training facilities, a comprehensive offering of accredited and bespoke rigging and lifting courses and more than 75,000 delegates training annually, Survivex and AIS Training offer unrivalled expertise in worldclass, industry-approved training. This experience carries through to an extensive onboard training portfolio and means both companies also have an outstanding reputation for delivering high quality safety training at the worksite.

OPITO stage 3&4 Rigger Competence Assessments and stage 3&4 Banksman Slinger Competence Assessments can all be undertaken onsite rather than in a training centre and these courses are delivered frequently by Survivex and AIS Training.

As well as accredited training delivered onboard, Survivex and AIS Training’s in-house certificates are a popular option for companies looking for bespoke courses.

www.ogv.energy I January 2021

From beginner level to advanced assessments, Survivex and AIS Training’s in-house onboard training courses cover the full skills’ range for banksman slingers and riggers and can be tailored to the client’s exact requirements. Both companies have seen an increase in enquiries for these particular courses over the past three months and have recently completed several onboard training projects across the Middle East, Africa and Asia.

environment you use every day. People tend to be very engaged with the training and assessment process and extremely focussed. Being comfortable in their surroundings and knowing the systems and procedures inside out means they are able to concentrate much more closely on the instruction. Onboard you are learning alongside colleagues which can also help with communication and the building of really strong teams.

“All of our onboard instructors have worked Craig Wilson, Head of Operations for in the field themselves so are Onboard Training at Survivex, highly skilled. This provides an said: “OPITO originally added bonus as observing extended certificate operations in action allows Survivex and AIS renewal dates when a our instructors to act Training’s in-house UK-wide lockdown was as objective advisors – first announced and as helping to embed safe onboard training a result many of our working practices and a courses cover the clients are experiencing strong safety culture. full skills’ range for a training backlog. banksman slingers In addition, global “Despite the pandemic, travel restrictions have it is still critical to ensure and riggers. hampered the training energy workers are process and prevented competent. Onboard training some people from travelling to is a very flexible and costphysical training centres to renew effective way of providing training their skills tickets. for personnel without the need to organise multiple travel itineraries to training centres.

“In these particular circumstances, training Essentially you are only paying for the travel people in their own workplace is perfect of one person – the instructor – who can so it’s no surprise we’ve seen a rise in deliver multiple courses when onboard. enquiries around our extensive onboard Clients who have used our onboard training training offer in the last few months. solution tend to come back again and again. With the current level of interest, it “For rigging and lifting, onboard training looks like the popularity of onboard training can be particularly effective as you are is set to continue long after the pandemic working with the actual equipment and is over.”

To find out more about onboard training with Survivex and AIS Training visit: http://www.survivex.com/services/onboard-training Or email: joannaschmitz@survivex.com

RIGGING & LIFTING

a vital tool for safety and maintenance systems and has become crucial for routine monitoring of ropes in offshore applications, where minimising costly downtime is particularly critical. A rope that outwardly looks perfectly OK can drop a load because its core is completely and utterly degraded through fatigue failure. This failure would be detected quickly through MRT, preventing the risk of accident. The technology is discussed within a guide on the condition monitoring of wire ropes in offshore installations published by the International Marine Contractors Association (IMCA), which itself is starting to drive greater awareness for using the technology in other sectors.

MONITORING WIRE ROPES for safe lifting

Magnetic Rope Testing (MRT) plays a vital role in improving rigging and lifting safety in the offshore energy sector, says Ben Dobbs, Head of Technical Services at LEEA (Lifting Equipment Engineers Association).

Wherever you look, the Covid-19 pandemic has given rise to new ways of doing things. While restrictions imposed to counter the virus caused massive disruption, in most instances lifting has continued throughout the Coronavirus outbreak and carries on as we await a post vaccination return to normal life. Maintenance and thorough examination of equipment therefore also continues.

LEEA (Lifting Equipment Engineers Association) has been working with other stakeholders and the Health & Safety Executive (HSE) on the revision of the HSE’s guidance document to thorough examinations during the Covid-19 outbreak. It can be found at https://www.hse.gov.uk/news/work-equipmentcoronavirus.htm, where other related content that will be helpful for operational continuity can also be found. If you have any further questions or require additional support then please do not hesitate to contact us at technicaladvice@leeaint.com Regular inspection on the structure of a crane, its sheaves, the jib and the slew mechanism are just some of the areas of focus for maintenance programmes carried out in by offshore energy operators. Wire ropes should also be a key part of the programme, yet too often this element is overlooked. Without proper maintenance and inspection of the crane rope, there is a risk of internal degradation that can lead to the wire rope giving way completely with catastrophic results.

Many operations still rely only on visual inspection of wire ropes. However, plant engineers need to be made aware of the existence of Magnetic Rope Testing (MRT) and the crucial role it can play in maintenance – particularly on high integrity cranes that are being used intensively throughout their working life. MRT gives a view into the heart of a wire rope used on cranes in order to detect any deterioration that might have occurred in service. It gives plant engineers the ability to predict the life expectancy of the rope, allowing them to plan replacement in a just-in-time manner, without the need for bulky wire rope to be hogging storeroom space.

This technology for the non-destructive examination of wire rope has been around since the mid-1950s.

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For high integrity cranes, particularly those used offshore, wire rope MRT gives a view manufactures will use MRT Ben Dobbs to produce a ‘baseline’ as Head of Technical Services into the heart of a wire a ‘birth certificate’ for a rope used on cranes length of wire rope. So in order to detect any when it enters service, The method involves deterioration that might the engineer knows passing the rope precisely what that rope through a permanent have occurred is like at the outset and magnet. This sets up an in service. can then accurately monitor electromotive force, which any deterioration throughout is picked up with electronic its service life. When the rope sensors that can detect any gets to the point of rejection criteria, breaks in the rope or any corrosion managers can plan in the change without that occurs throughout the section of fear of rope failure, maximising uptime in the rope, which is known as Loss of busy operations.

Metallic Area (LMA). There are different MRT equipment manufacturers but the When it comes to the provision of lifting method is the same with each one, giving equipment maintenance and repair services clear visibility of any broken wires, voids it is always prudent to seek out the ‘gold and corrosion. standard’. In addition to offering expertise on MRT and condition monitoring of wire Examining the core of a rope without MRT ropes, LEEA members are structured to requires a special tool to open the rope’s provide specialised repair and maintenance strands. But this still only gives visibility of as well as the inspection function, as a small percentage of the rope’s length. On separate parts of a one stop shop, in multi-strand crane ropes, the core is never compliance with HSE guidelines. revealed because the multiple layers can’t be opened up due to the underlying layers For further information, please contact LEEA: being laid in the opposite direction to the mail@leeaint.com or visit www.leeaint.com outer strands.

The first MRT machines comprised components of a considerable size – the recorder and oscilloscope almost filled an entire room. So in the past MRT was not always possible for maintenance of wire ropes installed on cranes. However, advances in technology have made MRT eminently portable – it can even become a fixture of the crane itself in some cases, allowing the rope to be constantly monitored as it is used. An MRT unit today can send a signal directly to a manager’s computer screen to give a visual representation of how the wire rope is deteriorating over time.

The technology has been incorporated into ISO 4309 Cranes – Wire ropes – Care and maintenance, inspection and discard as a method of examination of in-service cranes ropes, but only as a supplement to visual examination. MRT is, however,

LEEA is established as a recognised and credible global trade association with company membership representing all those involved in all aspects of lifting operations and equipment in the lifting industry worldwide.

Find out more at: www.leeaint.com

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RIGGING & LIFTING

Combining Maritime Development’s innovative approach to tackling offshore challenges with technical expertise and a transparent approach, MDL Asset Maintenance & Engineering (AME) is the new alternative for cost-conscious maintenance of cranes and other lifting equipment.

Asset Maintenance & Engineering: expert support to lifting equipment

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n the lifting world, MDL is best known for marketleading technology for flexible and rigid pipe handling. The company’s origins, however – dating back to 1999 - are in the fishing industry: repairing and maintaining mechanical equipment and mobilising personnel to ports around the UK or further afield; all to ensure vessel’s idle time was down to a minimum – because idle time meant lost revenue.

From there, the company transferred this mindset into the energy sector, where it engineered and delivered innovative cable and pipelay equipment – first made to order, then to grow its own rental range.

MDL operates a modern fleet of equipment and the forward-thinking approach incorporated in the design creates a technical advantage, optimising the uptime and efficiencies on projects. To ensure these benefits are safely replicated on every project, the equipment undergoes a rigorous maintenance programme, keeping everything ready for the next challenge.

To deliver such performance takes ownership of the product at all stages. MDL has honed a wide skillset who can design, manufacture, assemble and commission bespoke mechanical systems, hydraulic or electrically driven, and project manage the complete delivery to suit a specific brief.

These skills and experience that made MDL a highly competent and respected equipment manufacturer are directly transferable, and come together to form a truly value-added service, under the name of Asset Maintenance & Engineering (AME).

Complete solution The AME division is focussed on the various challenges associated with the day-to-day operations, keeping equipment safe to operate and at the same time minimise any downtime.

MDL has been making positive traction with a number of Operators by offering a viable and costeffective service to supporting mechanical lifting or pulling equipment. Services provided under AME include: Project Management & Engineering Crane / Winch Integrity & Maintenance Mechanical Handling – Lift plans, Storyboards, Design of Handling Aids Hydraulic Systems Design / Assessment Electric & Instrumentation Systems Design / Assessment MDL AME’s focus is on performing as much of the front-end Project Management & Engineering work as possible from the “desktop”, minimising unnecessary trips to an Asset - demonstrating a cost aware approach, which also introduces efficiencies in the overall execution of work scopes.

MDL’s multi-skilled technicians can perform the maintenance and overhaul works on location, minimising impact to POB and off critical path.

www.ogv.energy I January 2021

MDL AME’s focus is on performing as much of the front-end Project Management & Engineering work as possible from the “desktop”, minimising unnecessary trips to an Asset

This approach is best demonstrated by a recent challenge to reinstate a riser pull-in winch on North Sea FPSO that had not been used in over 10 years.

A single-source approach

MDL offshore expertise also came into play for the winch wire respooling, carried out in-situ under tension by experienced MDL technicians, followed by operation of winch to carry out riser pull-in under the direction of the installation contractor.

Thanks to its complete in-house capabilities, MDL was able to deliver a complete solution that was fit for purpose and added value by extending the equipment’s service life without costly and lengthy repair works onshore. Since then, MDL has executed numerous scopes across the client’s North Sea assets, including feasibility studies, safety assessments, delivery of bespoke handling aid solutions and crane control system upgrades, amongst others.

“The two-decade experience of working with a variety of clients on and offshore - including Operators and Pipelay Contractors - is reflected in MDL AME’s safety culture, work processes and procedures, and – importantly - through consistently delivering on targets of optimising schedules and meeting budget,” says Marvin Morrison, MDL Commercial Developments Manager.

On this project, the initial scope of work carried out by MDL’s engineers was to survey and inspect the lifting equipment on board the facility, to assess condition and plan a 5-year maintenance and testing programme.

Following the survey, the MDL team prepared a detailed schedule and work pack to execute the refurbishment on board the FPSO during the summer shutdown without taking the equipment ashore, which was not feasible as the winch could not be removed from the turret. The work pack covered method statements, lift plans, storyboards, structural design and detailed drawings.

The on-board equipment overhaul included complete winch strip down, service, re-certification of ATEX-rated HPU to DNVGL code, reassembly and overall system load testing.

MDL has been working on winches since 1999.

“At the same time, MDL retains all the benefits of being an independent business: agility, impartiality, responsiveness and flexibility to adapt to our clients in terms of work scopes, schedules, deliverables and system processes; providing truly tailored solutions, with complete transparency from the onset - meaning no surprises at any stage of the project."

Maritime Developments provides tailored consultancy, equipment and personnel packages for the global energy sectors.

Learn more about MDL at: www.maritimedevelopments.com

Get a free quote Call us today +44 (0)1224 446100

INNOVATION & TECHNOLOGY INNOVATION ZONE

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TO LEARN MORE ABOUT HOW GLOBAL GRAVITY SUPPORT YOUR OPERATION CONTACT TO LEARN MORE ABOUT HOW CAN GLOBAL GRAVITY CAN SUPPORT YOUR OPERATION CONTACT www.ogv.energy I January 2021

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LOGIES ALIGN TO SOLUTION: SAFE, SYSTEMATIC AND OPTIMISED THE TUBELOCK®

LIFTING ATIONS

THE TUBELOCK® SOLUTION: SAFE,INTRODUCING SYSTEMATIC AND OPTIMISED GLOBAL

FER

TUBELOCK® SOLUTION

GRAVITY

Improve safety and efficiency in drilling operations.

Global Gravity introduce the world´s first Tubular Transport Running System.

• TubeLock ® is a unique, effective and safe method of transporting and running pipe to and from the rigs.

• TubeLock ® eliminates inefficient and costly processes from the industry, improving YOUR revenue.

We see great potential in offering the unique combination of Global Gravity´s TubeLock® and Verton´s innovative lifting technology to our clients in the offshore drilling industry. The combination will increase the safety of handling pipes offshore with no personnel in direct contact with the pipes, and fewer handlings.

Tom Rasmussen, COO Global Gravity

THE TUBELOCK® SOLUTION: SAFE, SYSTEMATIC AND OPTIMISED

VERTON AND GLOBAL GRAVITY: REINVENTING LIFTING OPERATIONS Everything we do is aimed at solving critical issues associated with lifting and orientating your loads.

Together we can complete same operations only SAFER, FASTER AND SMARTER.

VERTON AND GLOBAL GRAVITY: REINVENTING LIFTING OPERATIONS Everything we do is aimed at solving critical issues associated with lifting and orientating your loads.

VERTON EVEREST 6 Together we can complete same operations only SAFER, FASTER AND SMARTER.

The Everest 6 has all the necessary functions to effectively orientate any suitable load while giving unparalleled data visibility. It is also the springboard to much larger versions under VERTON EVEREST 6 development.

It Features a self-contained lifting beam. Provide wireless remote-control load orientation, using gyroscopic The Everest 6 has all the necessary functions to effectively of the smartest technological VERTON AND GLOBAL GRAVITY: REINVENTING LIFTING OPERATIONS technology.

Allsuitable information directly available in our app and the simplest ideas. In any our orientate loadiswhile giving unparalleled data Everything we do is aimed at solving critical issues associated with lifting and orientating your loads. dashboard specific needs. opic force, combined visibility. with Itto is address also theyour springboard to much larger versions under

Together we can complete same operations only SAFER, FASTER AND SMARTER.

s that make it possible to development. It Features a self-contained lifting beam. Provide ly and improve site operations wireless remote-control load orientation, using gyroscopic t 6 and the Everest 7.5 have all EVEREST 7.5 / 30 SPINPODSVERTON MODULAR UNITS EVEREST 6 and technology. available in our app s to effectively orientate All anyinformation is directly The Everest 6 has all the necessary functions to effectively dashboard to your specific needs. ing unparalleled data visibility.

This Everest 30address system focuses on powerful gyroscopic orientate any suitable load while ight or complexity. modules that can be combined to provide orientation control for giving unparalleled data

Y AND TIONS

visibility. It is also the springboard to much larger versions under

even the largest of loads. Integrating to existing spreaders and development. It Features a self-contained lifting beam. Provide rigging to provide the utmost capability.

Provides wirelessload remotewireless remote-control orientation, using gyroscopic EVEREST 7.5 / 30 SPINPODS MODULAR UNITS control load orientation and flexible modular design to attach technology.

All information is to directly available in our app and This Everest 30 system focuses onScalable, powerful gyroscopic dashboardthrough to address your specific needs. existing or custom spreader beams. combining PRODUCTIVITY modules that can be combined to provide orientation control for units to give greater load orientation.

even largest of loads. Integrating to existing spreaders and ded loads can nowthe be handled EVEREST 7.5 / 30 SPINPODS MODULAR UNITS rigging to provide control system.

We reinvent liftingthe utmost capability. Provides wireless remoteEverest 30 system focuses on powerful gyroscopic y rotate loads in either direction. control load orientation and flexibleThis modular design to attach to modules that can be combined to provide orientation control for be near or under moving loads, existing or custom spreader beams.even Scalable, through combiningto existing spreaders and the largest of loads. Integrating s way. Verton technology eliminates rigging to provide the utmost capability. Provides wireless remoteunits to give greater load orientation. and helps keep your workers safe. control load orientation and flexible modular design to attach to

TOGETHER WITH OUR HIGH TECH LINE OF PRODUCTS, WE PROVIDE SOFTWARE INTEGRATION FOR AN EVEN BETTER USER EXPERIENCE.

track, analyse, and deliver your y integrations. Increased automation elivered by a single person means resources. We put precise control TO LEARN MORE ABOUT analytics in your hands so you gain ove your operations.

ONTACT

existing or custom spreader beams. Scalable, through combining units to give greater load orientation.

TOGETHER WITH OUR HIGH TECH LINE OF PRODUCTS, WE PROVIDE SOFTWARE HOW VERTON CAN SUPPORT YOUR OPERATION CONTACT INTEGRATION FOR AN OUR EVEN BETTER USER EXPERIENCE. TOGETHER WITH HIGH TECH LINE OF PRODUCTS, WE PROVIDE SOFTWARE INTEGRATION FOR AN EVEN BETTER USER EXPERIENCE.

Craig Millis Email craig@verton.com.au Tel +31 648 922 596

TOVERTON LEARN MORE ABOUT HOW VERTON CAN SUPPORT YOUR OPERATION CONTACT TO LEARN MORE ABOUT HOW CAN SUPPORT YOUR OPERATION CONTACT Craig Millis Email craig@verton.com.au Tel +31 648 922 596

Craig Millis Email craig@verton.com.au Tel +31 648 922 596

GREEN ENERGY ZONE

GREEN ENERGY Construction crew hired for Port of Dundee upgrade

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Construction specialist Graham has been contracted to deliver a new wharf and land upgrade at the port of Dundee in Scotland to secure the port’s future in offshore renewable energy and North Sea oil and gas projects.

Port of Dundee is carrying out a £40m redevelopment programme, with the latest plans to augment development work already completed at the port during 2018 and 2019.

Graham will replace the existing Caledon East Warf as part of plans for a new heavy lift quayside that is capable of roll on/off operations as well as conventional lift on/off, as well as upgrade over 15 hectares of land.

Prince Charles Wharf is also undergoing an upgrade after almost 45 years’ service.

Once completed at the end of 2021, the total quayside available at this specific part of the port will be 485 metres.

The quayside, combined with the capital dredging program under way in the River Tay, will allow large semisubmersible vessels or wind installation to berth in the port.

Dundee is currently the construction hub for the construction of EDF Renewables’ and ESB’s Neart na Gaoithe offshore wind farm.

Dundee senior port manager David Webster said: “This significant investment in the Port of Dundee demonstrates our commitment to bring large-scale renewables and decommissioning projects to Scotland.

SPONSORED BY

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

Peter Tipler Renewables Director, Xodus Group

“We are pleased to work with Graham on this project in Dundee following their successful delivery of our new freight ferry terminal in Tilbury2 earlier this year.”

Graham civil engineering division managing director Leo Martin said: “This will be our second project working in collaboration with Forth Ports, following our completion of Tilbury2 on the Thames.

“This is a fantastic scheme for Graham to be working on and another opportunity to demonstrate our wide-ranging marine construction and civils capabilities.

“The offshore renewables construction facility at the Port of Dundee promises to bring significant benefits to both Dundee and indeed the whole of Scotland, both socially and economically, creating jobs and supporting the supply of low carbon electricity.”

Equinor joins Europe’s biggest green hydrogen project, the NortH2-project “This is a groundbreaking project that Equinor is looking The project forward to contribute to. The project can be an important aims to produce part in our efforts to build a competitive position in hydrogen, green hydrogen creating future value and industrial possibilities. Our aim is to be a net-zero energy company by 2050 and developing using renewable a profitable low carbon value chain for hydrogen will be an electricity from essential part of our transition to become a broad energy offshore wind company. Hydrogen will be key to decarbonisation and net zero efforts for the energy market, especially in otherwise off the coast hard to abate sectors which cannot be served by electricity,” of Netherlands says Equinor CEO, Anders Opedal. of about 4 NortH2 was launched in February 2020, with Shell, gigawatts by Groningen Seaports Gasunie and the province of 2030, and 10+ Groningen. Equinor joins RWE as new partners to the gigawatts by project. The project will complete a feasibility study by 2021, with the aim to start project development activities in 2040, kickstarting the second half of 2021. the hydrogen economy in The project will have a capacity of 1 GW in 2027, 4 NortH2 expands GW by 2030 and 10+ GW by 2040 for electrolysis.

Northwest This equates to 0.4. million tonnes of green the energy Europe. hydrogen production in 2030 and 1 million tonnes

transition agenda for Equinor

green hydrogen production by 2040. This can abate 8 to 10 million tonnes of CO2 emissions.

This is equivalent to the yearly emissions from road traffic in Norway. The rapid growth in offshore wind is well suited to developing a green hydrogen value chain.

www.ogvenergy.co.uk www.ogv.energy I January January-February 2021 2020

The North Sea has a great potential for large-scale wind development, there is extensive existing natural gas infrastructure that is suitable for storage and large-scale transport of hydrogen, and there are large industrial clusters in the Netherlands and Germany as well as heavy-duty vehicle OEMs that could economically benefit from a ‘first mover’ advantage.

NortH2 expands the energy transition agenda for Equinor by adding a significant green hydrogen value chain. This complements already existing renewable and low-carbon world-class projects like Dogger Bank (offshore wind), Northern Lights (CCS) and H2H Saltend (Blue hydrogen).

NortH2 sets a vision for 4 GW integrated offshore-windto-green-hydrogen value chain by 2030, and for 10+ GW by 2040. Through the parallel development of the required hydrogen infrastructure by repurposing existing natural gas infrastructure, the project could supply major Northwest European clusters.

By doing so the NortH2 project will make an important domestic contribution to meet expected quickly growing hydrogen demand and thereby to meet Dutch as well as EU climate targets for 2030. It also ensures long term decarbonisation in line with the Paris Agreement. The project fits well with the agenda of the Northern Netherlands to become a leading region for green hydrogen, supporting economic development and the creation of high-skilled jobs.

GREEN ENERGY

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RWE chooses Van Oord for foundations and array cables at Sofia Offshore Wind Farm RWE, the world’s number two in offshore wind, has advanced the development of Sofia Offshore Wind Farm. The company has selected the international marine contractor Van Oord as the preferred supplier for the engineering, procurement, construction and installation (EPCI) of the monopile foundations and array cables, for one of the world’s largest offshore wind projects.

Source: sofiawindfarm.com

The 1.4 Gigawatt (GW) Sofia is sited on Dogger Bank in the central North Sea 195 kilometres from the North East coast, where Van Oord, through its UK-branch MPI Offshore, will create a logistics hub to deliver the comprehensive scope of work.

Van Oord will deploy its offshore installation vessel Aeolus to install the 100 extended monopile foundations without transition pieces, while the 350 kilometres of array cables will be installed by the family-owned firm’s first cable-laying vessel Nexus. The company will sub-contract the fabrication of the foundations and array cables.

Sven Utermöhlen, Chief Operating Officer Wind Offshore Global of RWE Renewables said: “On Dogger Bank, we are realising one of the world’s largest offshore wind farms. Van Oord is a well-known partner to us, with Sofia the fifth and largest UK offshore wind farm that we have worked on together. This gives us a wealth of experience to draw on as we progress the project through its construction phase. Sofia is a flagship for RWE Renewables in terms of technology and innovation, and for the UK through regional supply chain opportunities and as a major contributor to the nation’s net zero ambitions.”

Van Oord worked closely with RWE on the construction of the Rampion, Humber Gateway, Robin Rigg and London Array offshore wind farms. Sofia brings the opportunity to further develop UK supply chain relationships, evolve construction techniques, and optimise the design of the foundations, which will be supporting some of the largest turbines currently on the market.

Pieter van Oord, CEO of Van Oord said: “We are extremely proud to be working together with RWE Renewables as the EPCI contractor for the permanent works of the Sofia Offshore Wind Farm. Van Oord is again at the forefront of projects that contribute to the transition to renewable energy. The project will be executed by MPI Offshore from our Stokesley office in Teesside and will deliver excellent opportunities for the local supply chain and labour market and to support the industry’s UK Sector Deal ambitions.”

Onshore construction will get underway at Sofia’s converter station site in Teesside early next year. Work on the foundation and array package is set to begin after the project’s financial investment decision in Q1 2021, with installation scheduled for 2024.

By the end of 2022, RWE aims to expand its renewables portfolio to more than 13 GW net capacity by investing €5 billion net, with the UK one of the core markets in Europe.

This foundation and array cable news now completes the main packages for Sofia with preferred supplier agreements already in place with Prysmian Group for the project’s HVDC export cable; a consortium of GE’s Grid Solutions and Sembcorp Marine for its HVDC transmission system, and Siemens Gamesa Renewable Energy, set to supply the wind farm with its most advanced 14 Megawatts (MW) offshore wind turbines.

Sofia wind farm is 100% owned by RWE, the second biggest player in offshore wind globally and the UK's second largest generator of electricity.

The UK plays a key role in RWE’s strategy to grow its renewables portfolio and to become carbon neutral by 2040. The company is currently constructing the offshore wind farm Triton Knoll. In addition, RWE and partners recently, signed Agreements for Lease with The Crown Estate to develop extension projects at four offshore wind farms; Gwynt y Môr, Galloper, Greater Gabbard and Rampion.

By the end of 2022, RWE aims to expand its renewables portfolio to more than 13 GW net capacity by investing €5 billion net, with the UK one of the core markets in Europe. Together with partners, the gross investment volume can amount to up to €9 billion. To achieve its growth targets, RWE has an attractive project development pipeline of more than 22 GW, across all of the company’s strategic core regions.

GREEN ENERGY ZONE SPONSORED BY

www.xodusgroup.com

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CONTRACT AWARDS

Aker Solutions gets $114M Kristin Sør deal from Equinor Norwegian engineering firm Aker Solutions has signed a letter of intent with compatriot oil major Equinor for the delivery of a subsea production system to the Kristin Sør oil and gas satellite fields in the North Sea. Aker Solutions said on Friday that the contract value was about NOK 1 billion ($114.3 million), with options for some additional work. The intention is to start work during 2021 and to complete the delivery in the first half of 2023.

The Kristin Sør development consists of the fields Lavrans and Kristin Q, both satellites to the existing Kristin platform.

The planned scope will include a subsea template with four of Aker Solutions’

www.ogv.energy I January 2021

standardised vertical subsea trees for the Lavrans Centre.

The delivery will also comprise a manifold for the Kristin Q field, to be installed in the Kristin Q template which Aker Solutions delivered in 2007.

Kjetel Digre, CEO of Aker Solutions, said: “With improved technical solutions and cost levels for subsea technology, development of satellite fields is attractive for several oil companies.

“This is also a responsible approach to utilising marginal resources with a minimum of new installations. We

see that an increasing number of our subsea projects are related to such satellite projects“.

The standardised subsea tree developed by the company enables shorter time from project start to first oil. The standardised tree is designed with Vectus control systems and reduced use of steel.

These improvements contribute to 50% reduced weight as well as reduced costs, simplified installation and operations.

“This award demonstrates that our standardised solutions are competitive and have the flexibility to also be applied on fields with demanding temperature and pressure conditions. We have over

CONTRACT AWARDS

time cooperated closely with Equinor in the development and optimisation of such equipment, and we are pleased to continue this close collaboration in the new Kristin Sør project“, Digre added.

The Kristin Sør project will include deliveries from Aker Solutions in Tranby, Egersund, and Ågotnes in Norway, Curitiba in Brazil, Reading in the UK, and Port Klang in Malaysia. The manufacturing of the subsea trees will take place at the facility in Curitiba. At peak, around 220 employees from the various locations will work on the project.

The high-pressure, high-temperature Kristin gas-condensate field is located

in the Norwegian Sea, off the coast of mid-Norway. The development is done by operator Equinor and partners Petoro, Vår Energi, and Total.

The contract award for Kristin Sør is subject to a final investment decision and final regulatory approval. According to Aker Solutions, the new order will be booked in the fourth quarter of 2020 in the Subsea segment.

To remind, Aker Solutions and Kvaerner last month completed a merger whereby Aker Solutions absorbed all the assets, rights, and obligations of Kvaerner. As a consequence and Kvaerner has been dissolved.

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www.ogv.energy/contact

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CONTRACT AWARDS Equinor awarding contracts for supply vessels

Havila Shipping ASA has been awarded three-year contracts for the Havila Charisma and Havila Foresight platform supply vessels.

Both contracts include four one-year options and have a total framework of close to NOK 800 million.

AThe total framework includes options and costs related to Havila Charisma modifications.

“We have received safe and efficient deliveries from Havila Shipping for several years and look forward to continuing our cooperation with the shipping company. Long-term contracts bring predictability to both Equinor and our suppliers, and form the basis of continuous improvement,” says Peggy Krantz-Underland, Equinor’s chief procurement officer.

The vessels are part of a fleet of supply vessels supporting Equinor’s operations on the entire Norwegian continental shelf (NCS). Havila Charisma will also be modified to support seismic services in the form of permanent reservoir monitoring. This includes increased accommodation capacity. The vessel’s capacities for supply duties will remain unchanged. Havila Charisma will sail from the supply base in Florø when it is not on seismic assignments.

“The supply vessels along the entire Norwegian

coast are the vital nerve of the more than 40 fields we operate on the NCS. By modifying Havila Charisma to provide seismic services in addition to supply services, we are utilising our scale advantage to achieve higher efficiency and flexibility in our operations,” says Morten Sundt, who is leading Equinor’s supply vessel activities on the NCS. Havila Foresight has its home base at Equinor’s supply base at Mongstad. With the new contract Havila Foresight will have supplied Equinor’s installations from Mongstad for 15 years.

Both vessels have previously been fitted with a battery and adapted for shore power, which increases safety and reduces CO2 emissions.

All vessels on longer-term contracts for Equinor (approx. 20 vessels) have, or will have, a battery and a shore-power system within 2021. The two Havila vessels are among the most fuel-efficient vessels in Equinor’s fleet of supply vessels. Previously the vessels have been modified to ensure safer operations on board, such as heightened cargo rail on Havila Foresight’s loading deck.

Separo seals 3-year contract with Neptune Energy Andrew Hardie, General Manager UK, said: “We are delighted to continue our ongoing collaboration with Neptune Energy. We developed the SepSORB® range to enable customers to lower the hydrocarbon levels in produced water, and it is great to see these systems in operation across the UK and Netherlands sectors of the North Sea. “We are determined to build on this success and further expand our Wastewater Treatment Services division.”

The Wastewater Treatment Services (WTS) division was recently launched following the company’s rebrand from Solids Control Services, which has been operating around the world for the last 30 years, to Separo. The exciting move also saw the creation of Solids Control and Industrial Waste divisions, which serve energy and industrial clients.

Solids control, hazardous waste stream and wastewater expert Separo has been awarded a three-year contract for the provision of produced water treatment services from Neptune Energy.

Separo’s SepSORB® water treatment system has, over the last two years, successfully reduced hydrocarbon content in produced water, supporting consistent environmental

www.ogv.energy I January 2021

compliance on Neptune Energy’s Cygnus Alpha gas production platform, which is located in the UK Southern North Sea. The new contract is another endorsement of Aberdeenshire and Den Helder-based Separo’s expertise in dealing with reducing hydrocarbon levels in produced water, with SepSORB® already being used on platforms in the Dutch sector of the North Sea.

Separo Chief Operating Officer Andrew Crutchley said: “The WTS division is a new addition to the business, but we have been supplying these highly effective produced water treatment solutions across the North Sea and beyond for a number of years.

“The treatment at source solution our skilled teams have developed enables our customers to lower their carbon footprint and reduce costs, which is crucial at this critical time for the industry in the UK and beyond.”

CONTRACT AWARDS Adnoc awards $519m contract to CNPC subsidiary to carry out seismic surveys Abu Dhabi National Oil Company (Adnoc) awarded a $519 million contract to expand the scope of the world’s largest combined threedimensional (3D) onshore and offshore seismic survey to discover new oil and gas resources in the emirate.

of recoverable unconventional oil resources estimated at 22 billion stock tank barrels (STB).

It announced an increase in conventional oil reserves of 2 billion STB, boosting the UAE’s conventional reserves to 107 billion STB.

The contract was awarded to BGP, a subsidiary of China National Petroleum Company (CNPC), represented in the UAE by Al Masaood Oil Industry Supplies & Services Company, according to a statement from Adnoc on Thursday.

SPC also announced a rise in hydrocarbon reserves of 7 billion STB of oil and 58 trillion standard cubic feet of conventional gas, as well as the discovery of unconventional recoverable gas resources totalling 160tn scf in November last year.

“This award builds on the solid progress we are making in executing the world’s largest combined 3D seismic survey, which is an important part of our strategy to accelerate the exploration and development of Abu Dhabi’s hydrocarbon resources,” Yaser Saeed Al Mazrouei, Adnoc upstream executive director, said.

In July 2018, Adnoc awarded the first set of contracts for the seismic survey and has so far recorded almost 60% progress in executing the initial scope which includes onshore and offshore areas. The entire survey, including the added coastal scope, is on track to be completed in 2024.

“It further demonstrates Adnoc’s commitment to realising the full potential of our conventional and unconventional oil and gas resources to ensure the UAE remains a long-term and reliable energy provider to the world.”

The new contract increases the scope of ongoing surveys to capture coastal areas, islands, and shallow water, capturing 3D images of subsurface structures to pinpoint potential hydrocarbon reserves.

Abu Dhabi’s Supreme Petroleum Council (SPC) earlier this week revealed the discovery

The data will then be used by successful exploration partners in a first block bid round

and will be available to purchase for successful bidders who make it through to the second bid round, which will begin to be awarded this year following the SPC’s recent approval.

About 50% of the total award value for the expanded scope is expected to flow back into the UAE’s economy to support local businesses in line with Adnoc's 2030 strategy, according to Adnoc.

Maersk Drilling secures $100m Suriname contract with Total Maersk Drilling has received a conditional letter of award from Total E&P for the supply of two drilling units, semi-submersible rig Maersk Developer and drillship Maersk Valiant, for an exploration and appraisal project in Suriname’s Block 58.

The campaign is expected to commence early 2021, with a duration of around 500 days.

The estimated firm total contract value is approximately $100m.

The CLOA is conditional upon finalisation of the formal contract as well as certain other customary conditions.

“We’re delighted to get this opportunity to add further to our long-standing relationship with Total through a two-rig contract, building on our previous collaboration on deepwater exploration projects and on Maersk Drilling’s recent experience with starting up operations in Suriname for Maersk Developer,” said Morten Kelstrup, COO of Maersk Drilling.

New helicopter contract for Stavanger Equinor has awarded CHC Helikopter Service AS a contract for personnel transportation from Stavanger airport, Sola.

The contract will run from 1 July 2021 for a fixed period of three years and includes three yearly options. The total value of the contract with options is estimated at NOK 1 billion.

The contract covers crew change services with two Sikorsky S-92 helicopters, with a possibility to increase with one additional helicopter.

In connection with this procurement, Equinor and Vår Energi have entered into a cooperation agreement and will share capacity on one of the helicopters.

“We have good experience of cooperation with

Vår Energi on joint procurement of helicopter services. The cooperation contributes to efficient use of helicopter capacity and increases flexibility for both companies. It also allows for better long-term planning from the service provider”, says Peggy Krantz-Underland, Equinor’s chief procurement officer.

For Equinor, the helicopters will be used in connection with crew change services in the southern part of the North Sea, serving the fields Johan Sverdrup, Gina Krogh, Sleipner, Grane, Gudrun, Heimdal and Draupner, as well as drilling rigs in the area.

“Stavanger airport, Sola, is a cornerstone for our operations in the North Sea. About 50,000 passengers are annually transported from Sola to Equinor’s offshore installations and back. We

look forward to cooperate with CHC and Vår Energi to deliver safe and efficient personnel transportation from Sola airport”, says Steinar Mathisen, responsible for aviation on the NCS for Equinor.

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www.ducatuspartners.com

ON THE MOVE As the oil and gas sector reflects on 2020, the enormity of the vertiginous change which the industry has faced in the space of just 12 months is brought to light and compounds that this has been a year unlike any other.

Whilst annual forecasts made tentative references to the threat of a potential economic downturn and murmurs of the fragility of oil demand in retrospect to the spread of an emerging virus were heard at the start of the year, this did not foreshadow just how rapidly these headwinds would intensify.

As the global pandemic was declared, the chain reaction that followed drove oil prices to never below seen negatives following the first demand contraction in nearly half a century, bringing rig count, expenditure, investment and headcount down with it. With the sectors health markers decimated, companies were forced to switch into survival mode. Executives channeled their focus

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Sandra Stachs

Lucid Energy Appoints Independent Director

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i3 Energy Announces Appointment of NonExecutive Director

i3 Energy has announced that John Festival has been appointed to the company’s board as a Non-Executive Director. John brings over three decades of experience in the oil and gas industry. John is currently Chief Executive Officer of Canadian operator Broadview Energy, prior to which he served as Chief Executive Officer of BlackPearl Resources. He was also the President of BlackRock Ventures before the company’s acquisition by Shell. John is on the board of Compass Compression, Gibson Energy and Athabasca Oil Corporation.

www.ogv.energy I January 2021

into measures to secure short term business continuity, their decisions blighted by the extreme uncertainty of the situation. Leaders were forced to leap into action to safeguard critical supplier networks and address the maze of the logistical considerations that came with transitioning an entire workforce to operate remotely overnight.

Across the organisation, employees faced deep professional and personal uncertainties as the world navigated virus and shutdown implications.

As trying as 2020 has been, not being able to fall back into a comfort zone has pushed companies to accelerate initiatives that bring a lasting and positive impact to the sector. In parallel to a fight to keep afloat in an unprecedented climate on the surface, the sector has lived up to its reputation of resilience and far from battened down the hatches behind the scenes. Whilst the industry has been forced to make decisions as a necessary reaction to unfolding events in 2020, looking back, many may see that these have propelled a longerterm reinvention for oil and gas. Digitalisation has accelerated at a rapid pace, technology has continued to advance optimisation across the value chain, employee engagement has been on leaders agendas as a key priority and the importance of diversity has been further realised and actioned, new operating models and strategic

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John Festival

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consolidation mergers have been explored, a fresh approach to human capital planning has been adopted in response to remote working and the need to redeploy and reskill talent, as well as the move towards cleaner energy sources picking up in pace and commitment.

The new year typically heralds a pause for leaders to reflect before realigning or evolving their strategy, not necessarily re-imagining it. This past year however, has broken all norms and just as no one could have anticipated the turmoil of 2020, the outlook for 2021 is hazy at best, with the only certainty being that whatever an eventual rebound may look like, it will not be one which brings oil and gas back to what a recovery has traditionally encompassed. A clear ‘new normal’ is yet to emerge amidst the disruption the past year has brought, but as the turmoil begins to stabilise the upcoming year represents a turning point whereby companies will need to make an exception to evolve their strategy to keep pace with the rapid changes in the global economy. This will bring a need to actively embrace and pursue change, rather than continuing to just adapt and react to it.

By Sean Buchan

Managing Partner - EMEA at Ducatus Partners

Craig Yeoman

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Cheryl Burgess

Lucid Energy, the Delaware Basin focused natural gas processing company backed by Riverstone and Goldman Sachs, has announced the appointment of Sandra Stash as an Independent Director. Sandra brings 39 years of experience across 25 countries and has served as a senior executive for leading global energy companies. Her most recent executive role was as Executive Vice President Safety, Operations, Engineering and External Affairs at Tullow Oil and she has also served in key leadership roles with Talisman Energy, BP America, TNK-BP and Atlantic Richfield. Sandra’s boardroom experience includes serving as Non-Executive Director for Diversified Gas and Oil Company, Trans Mountain Pipeline Company, EDF Energy and Thermal Generation. She has also held board roles with First Montana Bank, Montana Technological University Foundation, the Federal Reserve Bank of Minneapolis and Colorado School of Mines.

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MRDS Name New Finance Director

MRDS Group have announced the appointment of Craig Yeoman as Finance Director. Craig holds 30 years’ commercial, corporate finance, and banking experience. He joins from SPEX Group where he was a Senior Commercial Manager and prior to this, was a Business Development Director with Johnston Carmichael, Finance Director with Power Jacks and Area Director with Clydesdale Bank. Craig also spent nine years with PwC during his early career, progressing to hold the role of Assistant Director Corporate Finance.

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Society for Underwater Technology Name New Chief Executive Officer

The Society for Underwater Technology has named Cheryl Burgess as its new Chief Executive Officer. She holds over 30 years of experience in the energy industry, including in onshore and offshore oil and gas, renewables and utilities.

Cheryl was previously the Director General of the Pipeline Industries Guild and holds extensive international expertise from her years with UK Trade & Investment and the Society of British Gas Industries.

ON THE MOVE

Content provided by Ducatus Partners

8 Lori Lancaster

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Laredo Petroleum Announces Board Appointments

Laredo Petroleum has announced the appointment of Jarvis Hollingsworth and Lori Lancaster to the company’s board as Independent Directors. Jarvis brings extensive experience leading and advising boards in environmental and diversity inclusion strategies and will support Laredo’s vision of expanding their thinking beyond that of a traditional exploration and production mindset. He currently serves as the Secretary and General Counsel of Kayne Anderson Capital Advisors and was previously a Partner at Bracewell where he led the firm’s fiduciary practice. Lori holds a background in substantial deal-making and has played a key role in more than $60 billion of announced energy mergers and acquisitions and joins as Laredo pursues a strategy to transform its asset base. Her experience is concentrated in energy investment banking and she has served as Managing Director at UBS Securities, Nomura Securities and Goldman Sachs.

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MacArtney Name New Managing Director

MacArtney Underwater Technology Group have announced that Phil Middleton has been appointed as Managing Director.

Phil joins from Seatronics where he spent 18 years, initially holding the role of Sales Engineer before progressing into account management and operations positions, before ultimately serving as Group Managing Director for over five years.

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Maersk Drilling Appoints Chief Financial Officer

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WindEurope Make Chairman Appointment

WindEurope have announced that Andreas Nauen has been appointed to the board as Chairman. Andreas Is currently Chief Executive Officer of Siemens Gamesa Renewable Energy and brings 29 years of experience in renewable energy. He has spent the majority of his career with Siemens, holding key leadership roles including as Chief Executive Officer for the company’s global wind turbines business where he led the integration of the newly acquired company Bonus Energy. He has also held executive roles with Senvion and KTR Systems. His board experience includes serving as a Non-Executive Director with both Semco Maritime and Denmark based NKT.

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Christine Morris

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Andreas Nauen

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John Guy

Well Services Group Make Leadership Appointment

Well Services Group has announced the appointment of John Guy as Director for the company’s global process, pipeline and industrial services division.

John brings 30 years of industry experience and is tasked with supporting the business in their next phase of international growth. John was most recently with Enermech where he spent nine years, joining the business as Regional Director for Asia Pacific before progressing to become Chief Operating Officer. Prior to this, he spent a number of years with Halliburton and served as Regional Manager after joining through the company’s acquisition of PSL Energy Services.

10

Sulmara Subsea Makes Key Appointments

Sulmara Subsea, the survey business, has announced the appointment of Paul Naysmith as Global QHSE Manager and Al Rumson as Innovation Lead. Paul brings over 20 years experience in aerospace, medical Phil Middleton devices and oil and gas services. He joins from Enermech and prior to this, held senior safety roles with RigQuip, Expro and Johnson & Johnson.

Al was most recently with Swire Seabed as a Data Management Lead and has also spent over four years with DOF Subsea in Norway.

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10

Al Rumson

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Paul Naysmith

Anasuria Announce Chief

Maersk Drilling has appointed Christine Morris Operating Officer Appointment as the company’s new Chief Financial Officer.

Christine has over 25 years of broad finance experience and joined from BJ Services where Anasuria Operating Company has appointed Peter she served most recently Chief Financial Kavanagh as its new Chief Operating Officer.

Officer. She has also held Chief Financial Peter brings over 27 years of experience Officer roles with NESR, Datalogix and and joins the business after spending 12 Case Logic, as well as spending seven years with Petrofac across the North Sea years with Halliburton as Head of FP&A, and Middle East, where was most recently bringing a strong track record of leading Operations Director Operated Assets, a role finance organisations within public and which included Anasuria as part of Peter Kavanagh private companies. his responsibilities.

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STATS & ANALYTICS

Conducted by Craig Jamieson and Oddmund Føre @ Rystad Energy

Service Market Drivers Greenfield project sanctioning

Sanctioning year (2016 - 2022)

Year (2016 - 2022)

Year (2016 - 2022)

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www.ogv.energy I January 2021

Rystad Analytics Offshore Rig Market Analysis

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Database version: Rystad Energy Databases January 2021 (December 2020 Review)

Fleet current stats

Offshore Rig Market Analysis Global overview of current status

STATS & ANLAYTICS PROVIDED BY

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STATS & ANALYTICS

Conducted by Craig Jamieson and Oddmund Føre @ Rystad Energy

Database version: Rystad Energy Databases January 2021 (December 2020 Review)

Offshore Rig Market Analysis Utilisation

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

Offshore Rig Market Analysis Contract backlog

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Date generated 11 December 2020

UKCS Status Report

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LEGAL & FINANCE

42

HOW CAN OIL AND GAS FIRMS MANAGE IR35 REFORM IN 2021?

APRIL’S CHANGES ARE MANAGEABLE, BUT THE WORK MUST START IMMEDIATELY

T

he rollout of IR35 reform in the private sector on 6th April this year is up there with the Coronavirus pandemic and Brexit as an issue that deserves the full attention of businesses.

With IR35 reform rapidly approaching, oil and gas operators and recruitment agencies placing contract workers will soon become responsible and, as the fee-payer, liable for IR35 - the legislation that determines if a contractor provides their service as a self-employed worker or an employee for tax purposes.

Incoming IR35 changes mean medium and large firms must equip themselves with the skills and expertise needed to carry out compliant IR35 status determinations, while also ensuring they have the infrastructure in place to manage all other aspects of the off-payroll reform by the book.

If IR35 reform is mismanaged it could wipe out a company’s ability to attract and engage contract workers and therefore operate with the flexibility needed to navigate the economic challenges that lie ahead.

Thousands of businesses now understand this well aware that the agility offered by contractors, along with the skills and cost-effectiveness of these workers, are likely to be crucial in 2021.

These firms - over 2,200 of which Qdos is supporting - are either fully prepared for 6th April or will be ready to engage contractors outside IR35 while also mitigating the risk posed by the reform.

Others still have work to do, whether because Coronavirus delayed their preparations or they intend to move all contractors onto the payroll - the path of least resistance, but one likely to prove costly in more ways than one.

The message I’d like to send to these businesses is that IR35 reform can in fact be managed.

www.ogv.energy I January 2021

I realise there has been a lot of concern and even scaremongering surrounding the changes, but I can assure you that there’s simply no need to panic and stop working with contractors.

on its own merit - will provide a more reliable assessment of status than blanket determinations, which are not deemed compliant by HMRC given they lack ‘reasonable care’.

Devise and action a strategy

Role-based assessments - where contractors with identical contractual terms and conditions can be assessed as one - are allowed under the reform. But even so, given working practices can easily vary from contractor to contractor, we recommend that individual IR35 status reviews are carried out.

How well prepared are you?

Consider additional support

So at a glance, here are some of the questions you should ask yourself about IR35 reform, followed by the steps to take in the coming months.

Start by assessing your readiness for the changes. Consider each and every facet of the business that IR35 reform will impact. How many contractors does your business place or engage? How will you determine their IR35 status? How will you compliantly deduct the correct PAYE tax from contractors determined inside IR35 and pay this to HMRC? A project of this importance requires careful consideration, which is why it’s vital that a clear and coherent plan is mapped out, before being actioned - and actioned quickly, given reform is now just a few months away.

This strategy should ensure that a clear audit trail is kept, that all parties in the supply chain are aware of the processes in place to manage reform (along with their responsibilities) and that, above all else, IR35 compliance is prioritised.

Do not rely on CEST Is HMRC’s Check Employment Status for Tax (CEST) tool reliable?

As part of your plan, decide on how you intend to assess IR35 status - which brings me onto HMRC’s IR35 tool, CEST. Frankly, you’ll do well to find any genuine IR35 experts that recommend using CEST to determine the status of contractors.

Having been dismissed in court, unable to provide an answer 19% of the time (amounting to over 188,000 indeterminate decisions in the past year alone) and arguably still not reflective of IR35 case law, businesses should not rely solely on CEST when assessing IR35 status.

The tool - which is not mandatory - poses a significant risk to a firm’s IR35 compliance.

Carry out case-by-case IR35 determinations With my above point in mind, what is the safest way to determine IR35 status?

Firstly, in-depth and case-by-case IR35 determinations - where each engagement is judged

Do you possess the resource and knowledge to be sure that you’ve carried out accurate IR35 decisions?

Engaging the support of an independent IR35 specialist may prove crucial in ensuring compliance. A third-party, such as Qdos, will conduct a thorough examination of a contract and if instructed the working practices too, before providing an objective and considered view of IR35 status.

To offer you some confidence, we carry out over 2,000 of these monthly and have completed more than 150,000 status reviews since the IR35 legislation landed over 20 years ago.

Consider your IR35 risk Just how much of a risk does IR35 reform pose to your business?

I’m not only talking about the liability, that the fee-paying party in the supply chain will be transferred on 6th April - although the sums at stake in IR35 investigations are considerable, which is why many businesses choose to protect themselves with IR35 insurance.

What I mean is, have you thought about the consequences of, say, no longer working with contractors? If banned, the likelihood is that contractors - the vast majority of whom want to carry on working independently - will take on work elsewhere, where they can continue to legitimately operate outside the clutches of this legislation. Where would this leave you and the projects you need completed? Do you want to see your competitors - who will continue to work with contractors - gain an advantage?

I raise all of these points not to scare you, but to highlight how important it is that companies in the oil and gas sector give IR35 the focus it clearly needs.

To reiterate, IR35 reform can be managed but the work must start now - after 2020, a year fraught with difficulties brought on by the Coronavirus, the last thing firms need is yet another setback.

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LEGAL & FINANCE

43

Time for the bubble to burst?

By Laura Petrie, Brodies LLP

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

Equally, within the global oil and gas market the UK exists in an operating bubble. Historic economic analysis has highlighted that operating in the UKCS provides one of the best $/BOE returns on investment, especially during lower oil price environments. This may be due, in part, to the range of differing operating environments available under one licensing regime, from established onshore projects and the harsh locations West of Shetland, to the shallower waters of the North Sea. There is also an easily accessible local and overseas market given the established infrastructure which helps to reduce initial capital costs. The UK fiscal regime which sets oil and gas apart internally within the UK is considered one of the most competitive regimes in the global oil and gas arena and actively supports development, decommissioning and encouraging new entrants.

However, in the current climate, with significantly lower oil and gas prices, constrained movement of personnel and supply restrictions as a result of COVID-19 and the rise of new oil and gas jurisdictions offering onshore development opportunities with lower cost profiles, has the UKCS bubble burst?

Definitely not. Through industry initiatives including the OGA strategy, Vision 2035 and the development of the Oil and Gas Technology Centre the UK oil and gas industry is moving

WTI vs BRENT 1 YEAR

into a new phase of operations. Focussing on developing centres of excellence for the advancement of clean, transformational technology, the growth of underwater innovation and to highlight more collaborative decommissioning practices, the UK is seeking to lead the way in innovation in the industry.

Moreover, increased diversification and focus on energy transition as well as a heightened awareness of climate change and the need for Net Zero to be incorporated into daily operations has positioned the UK as a leader in addressing key issues facing the industry. In fact, one facet of such diversification (offshore wind generation) has placed the UK 6th globally against such giants as China, the US and India – not bad for a country that is, on average, thirty-two times smaller in size.

personnel implications to consider as diversification of business may need a change to contract terms if staff are also required to diversify.

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

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

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

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

WTI 1 MONTH

BRENT 1 MONTH

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MEMBER'S FEED

John Lawrie Tubulars Releases Carbon Emission Savings Data

Dales Marine Services supports local charity CLAN Cancer Support ‘Light the North’

Industry leader Nucore Group announces end of year results and strong focus for 2021

Dales Marine Services Ltd is delighted to be sponsoring a Lighthouse as part of CLAN's 'Light the North' fundraising initiative. Dales is working with a local artist to create the Dales Marine Lighthouse which will form part of the trail of lighthouses situated across the North East and the Northern Isles from March 2021 to the end May 2021.

Nucore Group, a specialist engineering company providing integrated engineering solutions in hazardous environments, has announced ambitious growth plans for the coming year, as portfolio companies Oteac and HVAC & Refrigeration move to now operate within the single Group entity.

John Lawrie Tubulars UK has further outlined its commitment to supporting the reduction of carbon emissions by undertaking a completely bespoke life cycle assessment (LCA) based on its own unique steel tubular management processes. The findings detail that for every tonne of repurposed steel tubulars used there is a carbon dioxide equivalent (CO2e) saving of 97.21% over new manufactured prime steel products.

STATS Group have been named Company of the Year in the Energy Industries Council Awards 2020 and also placed in top spot in two categories.

Wellpro Group announces expansion into Saudi Arabia

Glacier Energy strengthens inspection team with new appointment

Global well intervention company Wellpro Group has enhanced its ambitious international expansion by announcing its entry into the Saudi Arabian oil and gas market. The thru tubing, inflatable packer and well intervention service portfolio provider has signed a long-term agreement with leading Saudi Arabian energy services company i-Energy as part of a full country start up business plan and large-scale commitment. This will involve complete operational asset and field support – including Wellpro Group’s industry leading downhole tools and best in class service. The expansion will lead to the initial creation of up to 10 jobs in Saudi Arabia.

Glacier Energy, has appointed Grahame Mackie as Business Development Manager for its Inspection Services division.

The Aberdeenshire-based pipeline technology specialist picked up the top accolade in the Export category and also shared the Service Solutions award with Aquaterra Energy.

STATS also picked up the biggest award of the night, the EIC Company of the Year, with its winning submission in the 2020 EIC Survive and Thrive Insight Report, highlighting the success of their patented BISEP® technology.

Grahame brings with him over 28 years of inspection and advanced non-destructive testing experience in both new build construction and existing plant refurbishment projects. He joins Glacier Energy from Applus where he held various senior business development, technical and project management roles both in the UK and internationally.

Join the OGV Community and take part in our fifth online event on the subject of "Rigging and Lifting" on January 21st at 2pm.

OVER THE LAST MONTH WE HAVE SEEN A NUMBER OF NEW SIGN-UPS TO THE OGV COMMUNITY

The Well-Safe Protector made it home - passing the Well-Safe Guardian as she arrived!

Over the last few days, she has journeyed from Norway across the North Sea to arrive safely in Invergordon. Whilst quayside, rig readiness work will continue in preparation to go to work in Q2 2021.

www.ogv.energy I January 2021

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

Never more so than at a time like this.

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

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

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

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

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

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

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

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

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and it’s the place where I’ve always been most comfortable.

“I think it speaks volumes that we have so many players who settle here for extended periods with their families, and indeed see players such as Jonny Hayes and Niall McGinn, returning to the area.

“That is testament not only to the Club, particularly now we have the fantastic facility at Cormack Park which is a huge pull for players, but also to the city and its surroundings which offer an excellent way of life.”

Aberdeen FC launch campaign to re-ignite pride in the Club and region

F

ollowing the success of #StillStandingFree, Aberdeen Football Club has launched a new campaign that aims to ignite a renewed sense of civic pride and passion for the Club and the region.

Taking inspiration from the unique characteristics of Aberdeen City and Shire, including location, famous landmarks and tourist attractions, scenery, culture, language and humour, the campaign reaches and connects with audiences across the city and shire, celebrating what it means to be an Aberdeen fan and an Aberdonian.

Using the hashtag #OurHome the Club are telling the story of why players, former players and others associated with the Club love the

www.ogv.energy I January 2021

region and the Club, and are encouraging fans to share their own stories. The Club are working with other regional stakeholders, such as Aberdeen Inspired and VisitAbdn, to amplify their campaigns and share content which promotes specific initiatives to promote the region and its businesses.

The campaign was kicked off by Scotland and Dons star, Andy Considine. A proud Aberdonian, born and brought up in Banchory, Considine said: “Aberdeen is home. It always has been.

“I’ve been very fortunate to spend my entire career at my hometown Club, and I have always been proud to pull on the red shirt and represent my team and this region to the best of my ability. My family and friends remain in the area

Rob Wicks, AFC’s commercial director, said: “If ever there was a time when we needed reminding of what a great place Aberdeen City and Shire is and what a fantastic club AFC is, it’s now.

“The success of the #StillStandingFree campaign demonstrated that AFC is at the heart of its community with a valuable role to play in the socio-economic wellbeing of the region. It underlined that the collective power of the Red Army, the Club and the Trust, along with its sponsors and corporate partners, can be an inspirational force for good in so many ways.

“This powerful combination has the potential to help the region get back on its feet from the pandemic and on the road to recovery, lifting the spirits of our fans and citizens.

“With this new campaign, we are supporting city and region promotion, to promote business - especially those sectors hardest hit by the pandemic such as tourism and retail – and to remind everyone of why they should be proud to support Aberdeen Football Club and proud to live in Aberdeen City and Shire."

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