OGV Energy - Issue 45 - June 2021 - Asset Integrity

JUNAUGUST 2021 - ISSUE 2020 45

UK’s No. ENERGY SECTOR

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PUBLICATION

THE ASSET INTEGRITY ISSUE

GLOBAL ENERGY NEWS

UK North Sea - Europe US - Middle East

FEATURING

WORLD PROJECTS MAP

STATS Group - Stena Drilling AVEVA - CAN Group - Presserv Fennex - Add Energy AFS Technologies

ASSET INTEGRITY ZONE GREEN ENERGY

ASSET INTEGRITY P.22

The asset integrity market in the energy industry is set to grow in coming years and decades

INNOVATION & TECH CONTRACT AWARDS

OIL-PRICE P.18

OPEC signalled confidence in oil demand recovery

ON THE MOVE STATS AND ANALYTICS

RENEWABLES P.32

Hydrogen, the road to a sustainable future?

LEGAL & FINANCE

INNOVATION P.35

EVENTS

Adapting to the fast-changing workforce

®

Tecno Plug

Non-intrusive Inline Isolation Scan with OGV APP

Read on page 4

www.statsgroup.com

CONTENTS

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COVER PARTNER 04 - STATS Group: High Integrity Isolation

GLOBAL ENERGY NEWS 11 - UK North Sea

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24

16

25

14 - Europe

HACK ALERT!

26

16 - US 18 - Middle East

WORLD PROJECTS MAP

28

20 - EIC - World's latest project updates

ASSET INTEGRITY ZONE 22 - Asset Integrity in the Energy Industry 24 - Presserv: Fresh approach to CUI mitigation 25 - CAN Group: How does AI add value?

26 - Fennex: Cloud technology for assets 28 - Stena Drilling: Digital twin technology 29 - Arnlea: Asset integrity through digital transformation

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29

30 - Spectis Robotics: Inspecting and evaluating assets

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31 - Add Energy: Data-driven maintenance improvements

GREEN ENERGY 32 - Renewable UK: Hydrogen, the road to a sustainable future?

INNOVATION & TECH ZONE 34 - OMNI Integrity: Digitising the asset integrity lifecycle 35 - Survivex: Adapting to the fast-changing workforce

35

EVERY MONTH

46

36 - Contract Awards 40 - On the Move 42 - Stats and Analytics

30

46 - Though Leadership: How Scotland’s offshore supply chain can win from the energy transition 48 - People in Energy: Ian Drummond, Regional Director, Europe & Africa, Abyss Solutions 49 - Community Partner: Aberdeen FC 50 - Legal and Finance

51 - Events

KENNY DOOLEY MAIN EDITOR Welcome to the June issue of OGV Energy at a time when the energy market is seemingly stabilising and at its healthiest point in a few years. Over the past few months the oil price has continued to keep up momentum with Brent almost at the $70 mark and in parallel with this we have started to see some significant contract wins in the offshore wind market. With the vaccinations moving forward and delivering results, the global economy will continue to open up and drive demand.

On the event side the positivity may have come just a little bit too late with the travel restrictions still causing some concerns, however at OGV Energy we are very positive that we will be heading to ADIPEC in November and hope to see a lot of our audience there too!

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Our cover partner this month is STATS Group, who talk to us about their pipeline integrity solutions and some of their trademark products.

Our theme this month is Asset Integrity and we also hear from CAN Group, Presserv, Add Energy, Aveva, Fennex, Arnlea, Stena Drilling, OMNI Integrity and AFS Technologies on this subject, as well and get an insight into the future of e-learning from Survivex.

The rest of this month’s magazine as always provides you with a review of the Energy sector in the North Sea, Europe, the Middle East, the US along with industry analysis and project updates from Rystad Energy, the EIC and Renewables UK.

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Thanks again to our readers for all their support as we close in on the first half of 2021.

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02 4

COVER PARTNER

STATS GROUP High Integrity Isolation

Temporary pipeline isolation technology to facilitate safe and efficient repair and maintenance activities.

Remote Tecno Plug Isolation allowing 12” Valve Replacement

High Integrity Isolation for Safe Pipeline Maintenance Pipeline owners and operators are constantly looking to improve operational safety and reduce time and costs during pipeline maintenance and repair. Pipeline isolation is a key requirement for safe and efficient maintenance and modification of oil, gas and petrochemical facilities.

Operators can often encounter difficulties isolating sections of their pipeline to facilitate maintenance activities if appropriate valves are absent from the line, or if the existing valves do not provide the required level of isolation.

Pipeline isolation tools have been utilised pre and post-shutdown to reduce the duration and limit maintenance activities while maintaining safety and maximising planned duties, providing a commercially cost-effective solution to the end-user. The use of isolation tools can also help the industry meet its Sustainable Development Goals (SDGs) by preventing the flaring and venting of vast sections of pipeline inventory, in some cases many kilometres.

Temporary Pipeline Isolation STATS Group provide a wide range of industryleading pipeline isolation plugs and line stopping equipment and with its vast experience can assist operators in assessing the optimum solution for their pipeline isolation, hot tapping and line stopping challenges. Temporary pipeline isolation and intervention can be undertaken safely and efficiently on piggable or unpiggable pipelines or pipework systems.

With appropriate material selection and testing, pipeline isolation and line stopping can be undertaken in any pipeline medium, examples include steam, liquid Co2, hydrocarbon liquid and gases. STATS has an extensive global track record of temporary pipeline isolation of onshore, topsides and subsea pipelines, from ¾ inch to 54 inches.

Non-intrusive inline isolation is provided by the Tecno Plug® which is pigged through the pipeline to the required isolation location from a pig launcher or receiver. Piggable isolation

www.ogv.energy I June 2021

tools require no welding or cutting into live lines, leaving no residual fittings or hardware on the pipeline. Once at the desired location the Tecno Plug is controlled remotely using an extremely low frequency (ELF) inductive system for reliable tracking and accurate positioning of the plug. The Tecno Plug is hydraulically activated engaging taper locks which grip the pipe wall and radially expand dual elastomer leak-tight seals. The dual seal design provides a zeroenergy zone to enable breaking of containment activities to be conducted safely and efficiently.

30” Remote Tecno Plug with Leak Test Module

STATS BISEP® developed more than a decade ago provides industry-first, leak-tight double block and bleed isolation technology for temporary line plugging, offering a leak-tight seal every time. Traditionally, operators use multiple split tee fittings and lip seal line stopping equipment to allow for necessary repair or maintenance activities to take place safely. The BISEP offers significant safety advantages over traditional line stop technologies and can be deployed through a single hot tap intervention while production is maintained through an integrated bypass, avoiding interruption to production and reducing costs, without compromising safety.

The SureTap® range of proprietary hot tapping machines provide performance and reliability for critical, high-pressure tapping operations. Designed and built to incorporate industry-leading features, the SureTap range incorporates a double block and bleed sealing configuration allowing taps to be performed safely on a wide range of pipeline materials and mediums, including use with sour (H2S) products.

A Safer Energy Industry STATS is constantly striving to improve the safety of its industry offering dual, proven barriers and controlled isolation, and replacing existing single seal unmonitored tooling with safer high integrity technology. STATS operate across the globe where its services extend over the entire lifecycle of hydrocarbon assets from construction, maintenance, assisting with extending the life of assets, through to decommissioning and on to hydrogen transportation, carbon capture and storage.

STATS aim is to drive higher levels of safety and support the industry in the transition to a low carbon future.

Two 30” BISEPs isolating a liquid CO2 pipeline operating at 2000 psi with 24” bypass line maintaining production while pigging facilities where installed

STATS Tecno Plug and BISEP are fully certified by DNV GL to verify that the design criteria satisfies the requirements for Pipeline Isolation Plugs to provide dual seal and isolation in accordance with Offshore Standards; DNV-OS-F101 (Submarine Pipeline Systems) and recommended Practices; DNV-RP-F113 (Subsea Pipeline Repair) and in compliance with the following code; ASME BPVC Section VIII, Division 2.

STATS Group are market leaders in the supply of pressurised pipeline isolation, hot tapping and plugging services to the global oil, gas and petrochemical industries.

Learn more at www.statsgroup.com

AVEVA 3D ASSET

VISUALISATION

IT’S TIME TO TWIN THE RACE TO SOLVE ASSET INTEGRITY CHALLENGES Economic and sustainability pressures are forcing oil and gas operators to work their ageing assets hard. But in the drive to achieve sustained operational excellence and protect margins, a reliance on traditional asset integrity methods is hindering maintenance programmes and risking HSE standards.

With the sector accelerating its adoption of digital solutions, it is now turning to digital twin technology to gain a significantly more accurate understanding of their existing asset’s integrity and minimise unplanned project delays and other risks associated with maintenance and upgrade programmes.

AVEVA, a global leader in industrial software, driving digital transformation and sustainability, has developed a full suite of unified digital solutions to support the digitisation of both brownfield and greenfield assets. The technology is being used to tackle a major lack of accurate ‘as-is’ asset information.

Poor asset information can have a far-reaching impact on engineering teams’ ability to understand the as-is integrity of an asset and deliver efficient maintenance project leaving companies at risk of falling short of HSE regulations. Hours can be wasted by engineers having to search for and verify information and, as a result, inaccurate data can lead to costly or even dangerous decisions being made or critical action being missed.

Through the use of laser scanning, sophisticated tagging systems and the digitisation and collation of existing documents into a single hub, a Digital Twin of the ‘as-is’ asset can be created. The twin, which provides, 3D, 2D and 1D engineering information insights generates a clear, accurate-to-themillimetre picture of the asset as it currently is no matter how much this varies from the original design.

Operators can ‘tag’ different parts of this Digital Twin, to help engineers search easily for parts, such as particular machines or models and check their maintenance log. They can also check to see if the same part needs to be replaced elsewhere on the asset.

“Without these insights designers may plan upgrades that turn out to be impossible – for instance, adding new types of equipment that are not fit for purpose. This causes project delays and downtime, potentially having a knock-on effect on other upgrade and maintenance projects, and so costing money. Worse, safety issues can arise," said Parvin.

With the maintenance projects scheduled throughout the summer months, operators will be exploring all options to keep downtime to a minimum while optimising the performance of their assets. Digital Twin technology is increasingly seen as a key enabler to achieve this.

“Many companies are using bad data to drive critical decisions,” says Steve Parvin, Vice President, Engineering Information Management at AVEVA. “They may be depending on their own outdated internal and siloed databases or legacy records on an asset they acquired. It’s possible that data handed over when the plant was first completed has not been updated with new maintenance details or updated engineering data. As a result, they are making critical decisions based on information that is not accurate enough to allow them to plan safely and efficiently.

“Engineering data is the core of the digital twin and without good quality engineering data, the twin will not be reliable. Advanced Digital Twin technology paves the way to the future - creating a foundation for making safe, effective and reliable decisions with quick and easy access to critical information and its context,” he added.

Embrace Your Digital Transformation - Start your journey today

www.aveva.com

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THE DIGITAL EVOLUTION OF ASSET MANAGEMENT IS HERE

Are you s�ll using outdated methods like folders or Excel spreadsheets for your asset management? If you answered yes, you need NAMS. NAMS is a cloud-based content management system developed to support Diving, ROV and Marine equipment, accessed anywhere in the world on any PC or mobile device with an internet connec�on.

Individual encrypted user logins are incorporated as an addi�onal security feature to make sure your data is safe.

The system encompasses all the usual features you would expect to find in any Content Management System.

However, there are also a few addi�onal features incorporated that will help you with your asset management, such as: ● Visual Dashboard

● Maintenance Rou�nes

● Automated Task Assignment

● Equipment Quaran�ne

● Fully Customisable Systems

● System Summary Report

● Mul�ple User Access

● Maintenance & History Reports

● Email No�fica�ons

● IMCA DESIGN & ROV Reports

● One click cer�ficate renewals ● QR Asset Labels & Scanning ● Spares Register & Cri�cal Spares No�fica�ons ● Equipment Project Management

NAMS is a product of:

www.ogv.energy I June 2021

namakasubsea.com

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MEMBER'S FEED OGV COMMUNITY MEMBER OF THE MONTH (Most shares on OGV web in May)

Breakthrough technology wins Software specialists a place in the finals of this year’s Offshore Achievement Awards Aberdeen based Solab has been announced as a finalist in this year’s Offshore Achievement Awards (OAA) in the category of Digital Innovation.

Solab’s Onboard Tracker™ software has led a digital revolution for clients such as Subsea 7, Sparrows, Boskalis and Ponticelli PBS who now use the online hub to manage Global Personnel Logistics & Planning, Crew Rotations, Training, Certification and Competence.

Onboard Tracker™ has become a leading light in the North East’s Digital Workforce initiatives and helps keep tens of thousands of energy workers trained, competent and safe in their daily activities when attending over 70% of the manned rigs in the UKCS and in over 50 countries.

ICR renews significant Quickflange™ contract with Apache Corporation’s North Sea Subsidiaries ICR Integrity (ICR), a leading global provider of integrated maintenance and integrity solutions to the oil and gas, power, chemical, nuclear and renewables industries, has signed a renewal agreement for its Quickflange™ service with Apache Corporation’s North Sea subsidiaries. Lindsay Thomas, Head of Sales – Quickflange™ at ICR, said: “We were initially awarded a contract extension in 2017 and re-bid for the work last year and we’re delighted to have been successful again. This renewal is a testament to the relationship we have with Apache, but also the quality of our Quickflange™ product and customer service.

MAATS Partner on Innovative Wind Energy Technology with SENSEWind MAATS Tech have recently completed engineering and project support on the successful and innovative SENSEWind Self Erecting Nacelle and Service System. The partnership with SENSEWind consisted of the development in a range of concepts that explored the available options to solve the physical and mechanical challenges of SENSEWind's base concept.

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Energy Recruiter Signs Exclusive Deal With Major Engineering Provider An energy recruitment specialist has signed an exclusive deal with one of the largest independent geoscience and engineering service providers.

Hydro Energy Group is working with Next Geosolutions to identify and engage with experienced and emerging talent. The project will see the recruiter deliver more than 40 staff in onshore and offshore positions. The roles include permanent placements in permanent placements in Naples in Italy, Ijmuiden The Netherlands in Europe, as well as in Norwich, UK.

LMS announces strong growth ahead of global expansion plans Intelligent lifting equipment specialists, LMS (Load Monitoring Systems Ltd), has reported a successful trading year prompting plans to continue with its expansion strategy including the opening of a new facility to support the US market and a focus on a new recruitment drive. Despite economic uncertainty of the past year, LMS has recovered and is reporting a 16% increase in turnover and 19% increase in profits.

The Solab team is thrilled to be recognised for its dedication and commitment to the development and advancement of the company’s revolutionary Onboard Tracker™ software.

Kevin Coll, Managing Director, said: “To secure a place in the finals of the Offshore Achievement Awards is absolutely fantastic news and is testament to how diligently we have worked to keep Solab and Onboard Tracker™ at the heart of the fastest growing sector in Scotland.

“The digital tech industry is experiencing an undercurrent of change as more and more companies prioritise the use of digital technology to transform the way they operate.

“I would like to thank the Onboard Tracker™ team for the hard work, passion and enthusiasm that enables us to always deliver an exceptional service for our clients as we strive to lead the way in this new digital age.”

Further Global Ambitions Mark 40th Anniversary A leading Aberdeen-based electrical company has celebrated its landmark 40th anniversary by announcing overseas expansion during a visit by the city’s Lord Provost. Founded in 1981, AEL (Aberdeen) Ltd has flourished to become an international brand providing first-class electrical and subsea products and services to the onshore, offshore, renewable, petrochemical, marine and industrial sectors. From its global headquarters in Aberdeen’s Bridge of Don and regional hubs in Houston and Baku, the company offers a broad range of electrical products and services which are delivered by an experienced and committed team.

Top Channel 4 Series ‘SAS: Who Dares Wins’ Uses Aberdeen Decommissioning Company To Film Rig-based Task For Its Latest Series Melding two distinctly different operating cultures on a remote operating environment for a SAS task is not without its challenges and is certainly not for the faint hearted. That said, with attention to detail, perfect planning, and adherence to the highest standards, it was a task that showcased the Oil & Gas sector’s finest safety culture.

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ENERGY NEWS

11

JUNE 2021

UK NORTH SEA

Energy Review

By Tsvetana Paraskova

The implications of a net-zero emissions world in 2050 on the UK offshore industry and supply chain, the strong first-quarter results of the key UK-listed operators in the North Sea, and a number of field development and ownership updates were the main themes in the UK oil and gas sector last month.

The International Energy Agency (IEA) published in the middle of May a stunning new report, in which the Paris-based agency created to safeguard global energy supply after the oil embargo in 1973 suggested that the world’s pathway to net-zero emissions doesn’t need any new investment in oil, gas, and coal. The report in which the IEA said that “Beyond projects already committed as of 2021, there are no new oil and gas fields approved for development in our pathway, and no new coal mines or mine extensions are required,” drew reactions from nearly every stakeholder in the oil and gas industry.

OGUK, the leading body of the UK offshore oil and gas industry, also issued a response to the landmark report.

“We strongly agree with the International Energy Agency’s recommendations that renewable, CCUS and hydrogen investment and development needs to be rapidly ramped up and that low emissions oil and gas from domestic production is to be favoured over high emissions options such as imports,” OGUK Sustainability Director Mike Tholen said.

“It is appropriate we use our own resources and invest locally, not only to meet our energy needs from now until beyond 2050 but to support UK jobs, the economy and our homegrown energy transition too. Stopping local exploration would be a major drawback for the energy transition underway – reducing the UK’s resilience and increasing our reliance on imports from countries whose carbon emissions we cannot control and that have lesser environmental regulations,” Tholen added.

OGUK also commented on the Queen’s Speech which included a point that the UK’s Ten Point Plan for the Green Revolution would “help create and support up to 250,000 highly-skilled green jobs in the UK and spur over three times as much private investment by 2030.”

Continues >

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ENERGY NEWS

“OGUK is clear that this can spark a UK-led global clean energy revolution, with the UK oil and gas sector at its heart,” said OGUK CEO Deirdre Michie.

“Building on this reinvigorated recognition for joint working to tackle climate change, the challenge now is now to work with government to champion the implementation of the recent North Sea Transition Deal and in so doing, accelerate the drive for the sustainable future we all want to see,” Michie noted.

Following the results of the Scottish Parliament election, OGUK urged all parties to support the sector and its world-class supply chain in order to realise homegrown greener energy.

“Our supply chain companies who are already well on the journey need the support of the Scottish Government to ensure we all deliver a turbo-charged transition. This will help move faster towards a low-carbon future, developing homegrown greener energy and reducing reliance on imported oil and gas,” OGUK’s Michie said.

The Oil and Gas Authority (OGA) published in early May its new Decommissioning Strategy stressing that the market could face higher decommissioning costs if action is not taken to improve commercial practices. Actions that could help foster a competitive and sustainable market include increased collaboration between operators and supply chain including new procurement models; the use of campaigns to coordinate multiple projects through which the supply chain would be given greater certainty about upcoming work; and data transparency.

“The Strategy emphasises the significance of decommissioning to deliver maritime restoration as part of the UK’s energy transition to net-zero and it also highlights emerging opportunities to reuse or repurpose infrastructure and reservoirs.

The OGA is working with industry to ensure that the right infrastructure is retained for reuse or re-purposing including in net-zero projects,” the authority said.

In company news, bp and Shell, two of the biggest oil and gas operators in the UK North Sea listed in London, reported a strong set of first-quarter results as higher oil and gas prices helped them boost earnings and cash flows. bp reported underlying replacement cost profit at US$2.6 billion for Q1 2021, triple the profit for the same period of 2020, as well as a surge in operating cash flow to US$6.1 billion from US$952 million for Q1 last year. Having achieved its debt-reduction target earlier than planned, bp resumed in the second quarter share buybacks worth US$500 million.

“With the acceleration of divestment proceeds, together with strong business performance and the recovery in the price environment, we generated strong cash flow and delivered on our net debt target around a year early.

We are commencing share buybacks in the second quarter which, alongside our resilient dividend, support the growth in distributions to shareholders,” CEO Bernard Looney said.

Shell, for its part, reported a surge in adjusted earnings for the first quarter and lifted its dividend by 4%. Shell also reported a 32% annual rise in cash flow from operating activities (CFFO) at US$8.294 billion. Free cash flow generation helped Shell reduce its net debt to US$71.3 billion at endMarch 2021, down from US$75.4 billion at the end of the fourth quarter of 2020.

Deirdre Michie

" OGUK is clear that this can spark a UK-led global clean energy revolution, with the UK oil and gas sector at its heart"

“We have reduced net debt by more than $4 billion this quarter, progressing towards the $65 billion milestone to increase shareholder distributions,” chief executive Ben van Beurden said. Once the US$65-billion debt milestone is achieved, Shell aims to increase shareholder distributions to 2030% of its cash flow from operations.

In field development news, EnQuest announced it had signed an agreement with Whalsay Energy Holdings to purchase their entire 100% equity interest in the P1078 licence containing the proven Bentley heavy-oil discovery. The discovery is within around 15 kilometres of EnQuest’s Kraken and Bressay operated interests, offering further long-term potential development opportunities and other synergies.

Reabold Resources, investor in upstream oil and gas projects, said at the end of April it had conditionally offered to acquire up to an additional 13.12% of Corallian Energy shares from existing Corallian shareholders, in exchange for Reabold shares. By potentially increasing its position in Corallian, Reabold would be increasing its economic interest in the Corallian-owned Victory Gas Discovery, West of Shetland, in which Reabold management sees significant value.

Jersey Oil & Gas introduced a Carbon Policy, saying that all existing JOG operations would be carbon neutral from the point of first oil for Scope 1 and 2 emissions. JOG also targets to identify Scope 1, Scope 2, and material Scope 3 emissions through the scrutiny of its operational activity both offshore and onshore.

Bernard Looney

"With the acceleration of divestment proceeds, together with strong business performance and the recovery in the price environment, we generated strong cash flow and delivered on our net debt target around a year early. "

A week later, JOG announced it had concluded the Concept Select phase of a field development plan for the Greater Buchan Area and plans to progress into Front End Engineering and Design (FEED) later this year.

Another operator announced plans this month to reduce its carbon emissions. NEO Energy published its Low Carbon Transition Plan (LCTP), under which it would seek to reduce the carbon intensity per barrel of oil equivalent produced by NEO’s portfolio by 50% by 2030. To achieve this, NEO will invest in technology and systems, such as the full or partial electrification of operations.

NEO also says it is aligned with the UK’s net-zero by 2050 target and is proactively working with partners, regulators, and industry bodies to play its part in achieving this goal.

Neptune Energy has acquired a 38.75% equity interest from Spirit Energy in the Pegasus West discovery and surrounding acreage in the UK Southern North Sea. Pegasus West was discovered in 2014 and is currently operated by Spirit Energy. Neptune will work closely with Spirit Energy on FEED studies in 2021 with the intention to reach a final investment decision by yearend. Once sanctioned, Neptune would become operator of the development through to first gas and into production.

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UK North Sea “We expect to announce further North Sea acquisitions as well as new partnerships in the near future,” Finder Energy’s CEO Damon Neaves said.

Tailwind has agreed to sell its entire working interest in the Conwy field to Eni UK with effect from 1 July 2021, subject to regulatory approvals. Conwy has had an excellent safety and production record under Tailwind ownership but now the asset fits more readily into Eni UK’s Liverpool bay operation, Tailwind said.

Gas company IOG announced that, as operator of its joint venture with CalEnergy Resources, it had awarded the Phase 1 Duty Holder contract for Installation and Pipeline Operator, as well as facilities operations and maintenance (O&M), to ODE Asset Management (ODE AM).

Maersk Drilling was awarded a one-well UK contract by INEOS to employ the harshenvironment jack-up rig Maersk Resolve for drilling and hydraulic stimulation at the Breagh Alpha A11 well in block 42/13 of the UK North Sea. The contract, with US$11.3 million, is expected to commence in Q3 2021, with an estimated duration of 140 days, and includes four additional one-well options.

Deltic Energy announced that Shell U.K. Limited, its Joint Venture Partner and Operator of Licence P2252, had appointed Fugro GB North Marine Limited to carry out geophysical and geotechnical site survey works over the Pensacola Prospect in preparation for the drilling of the Pensacola exploration well. The site survey is expected to start at the end of July and be completed in the third quarter of 2021.

Finder Energy has completed the acquisition of two highly prospective UK North Sea operated licences from Azinor Catalyst Limited. Licence P2502 is located on the western edge of the East Shetland Basin in the Northern North Sea, while licence P2524 is located on the southern flank of the South Viking Graben in the Central North Sea.

BRENT OIL PRICES OVER THE YEARS June review

1

YEAR AGO

- BRENT OIL PRICE 2020 - $40.27 Oil demand in 2020 is expected to fall by 8.1 mb/d, the largest in history, before recovering by 5.7 mb/d in 2021. Reduced jet and kerosene deliveries will impact total oil demand until at least 2022.

In this Report the forecast for 2020 oil demand has been raised by nearly 500 kb/d to 91.7 mb/d, due to stronger than expected deliveries during the Covid-19 lockdown.

5

YEARS AGO

- BRENT OIL PRICE 2016 - $48.25

Damon Neaves

DISCOVER OGV'S

Industry and government figures have been attending the annual Oil and Gas UK conference in Aberdeen.

Investment, exploration, and new technology form the focus of this year's event at the Aberdeen Exhibition and Conference Centre (AECC). Scotland's Economy Secretary Keith Brown and UK Secretary of State for Energy and Climate Change Amber Rudd were among those in attendance.

Discussion on the EU referendum is also playing a part in the two-day event. Jobs lost as a result of the downturn in the UK oil and gas sector could top 120,000 by the end of 2016.

10

PODCASTS AT

WWW.OGV.ENERGY

YEARS AGO

- BRENT OIL PRICE 2011 - $113.83 As supply and demand factors increasingly point to a future in which natural gas plays a greater role in the global energy mix, the International Energy Agency (IEA) released a special report exploring the potential for a “golden age” of gas.

The new report, part of the World Energy Outlook (WEO) 2011 series, examines the key factors that could result in a more prominent role for natural gas in the global energy mix, and the implications for other fuels, energy security and climate change.

MARINE & SHIPPING

ROBOTICS & AI

SUBSEA REVIEW

14

ENERGY NEWS

By Tsvetana Paraskova

Europe

Energy Review

The largest oil companies in Europe reported in the past month strong first-quarter results thanks to higher oil prices, some of those firms increased their commitment to alternative energy sources and solutions, while many other companies announced new hydrogen and wind power projects across Europe.

Oil Majors Report Strong Q1 Results as Commodity Prices Rise Norway’s Equinor reported strong earnings for the first quarter, driven by higher oil and gas prices, capital discipline, and sustained cost improvements. Equinor’s renewables division also delivered strong financial results with a capital gain from farm downs of around US$1.4 billion, due to the divestment of a 50% non-operated interest in the offshore wind projects Empire Wind and Beacon Wind in the US to bp, and to the sale to Eni of a 10% equity interest in the Dogger Bank A and B in the UK. Equinor also boosted its cash flows and reduced net debt during Q1.

Italy’s Eni also raised its adjusted net profit for Q1, thanks to the higher oil and gas prices which boosted the upstream business. Net cash from operations jumped by 41%.

“With the pandemic situation gradually improving, and a broadening economic recovery looking more likely, we have been able to improve our outlook for the coming months, forecasting free cash flow generation in 2021 of more than €3 billion under a Brent scenario of 60 $/bbl. In this environment, we will continue implementing our decarbonisation and energy transition strategy, maintaining a strong focus

www.ogv.energy I June 2021

on the robustness of the balance sheet and targeting a competitive distribution policy to our shareholders,” Eni CEO Claudio Descalzi said.

France’s Total reported adjusted net income of $3 billion, a level above the pre-crisis first quarter of 2019, also thanks to higher oil and gas prices, and to the group’s focus on LNG and renewable electricity generation.

“Cash flow (DACF) increased to $5.8 billion and gearing already decreased to less than 20% in the first quarter of 2021, validating the strategy of resilience and maintaining the dividend driven by the Board of Directors during the 2020 crisis,” CEO Patrick Pouyanné said, adding that the group’s organic cash breakeven was less than $25 a barrel in the first quarter.

Lundin Energy said at the end of April that it had sold the world’s first-ever certified carbon neutrally produced oil from its Edvard Grieg field offshore Norway to Italian refiner Saras SpA. Edvard Grieg field is the first oil field in the world to be independently certified by Intertek Group plc under its CarbonClear certification, the Sweden-based energy firm said.

“The provenance of a barrel and how it is produced is increasingly important, as society and industry require lower carbon feedstocks to achieve emission reduction targets and meet the goals of the Paris Agreement,” said Nick Walker, President and CEO of Lundin Energy.

Renewables and LowCarbon Energy Solutions In its ninth Offshore Wind Operational Report, The Crown Estate notes that the UK’s offshore wind sector is a mature, robust, and healthy market which is progressing to deliver a strong and sustainable pipeline in support of the nation’s net-zero ambitions.

The UK offshore wind sector generated enough green electricity for 39% of UK homes (40.7 TWh) in 2020, up from 30% (32TWh) in 2019, the report showed.

“The sector has stepped up admirably during an exceptionally difficult year caused by the global pandemic, demonstrating its resilience and ability to reliably deliver clean energy to millions of homes,” Adrian Fox, Head of Offshore Assets at The Crown Estate, said.

Provisional data from National Grid ESO showed that in the early hours on 21 May wind power was meeting 62.5% (16.3 GW) of Britain’s electricity demand, beating last August’s record.

RenewableUK urged the government in early May to commit to specific deployment targets for onshore wind, floating wind, renewable hydrogen, and marine energy by 2030, to meet the new UK target of slashing emissions by 78% by 2035, and reaching net-zero emissions by 2050. The recommendations include reaching 30 GW of onshore wind, 2 GW of floating wind, a minimum target of 5 GW of green hydrogen electrolyser capacity, and a 1 GW target for marine energy by 2030.

In projects and deals, bp and EnBW of Germany launched in May a bespoke online portal for the Scottish engineering and supply sector, as the companies aim to expand their partnership’s offshore wind portfolio by taking part in the upcoming ScotWind leasing round. Companies based in Scotland, with significant operations in Scotland or that have plans to relocate their base or operations to Scotland are encouraged to register interest for future opportunities.

“Scotland has a world-class supply chain with decades of experience in offshore energy – that deep skillset can be readily applied to offshore wind,” Dev Sanyal, bp’s executive vice president of gas and low carbon energy, said.

Perpetuus Tidal Energy Centre (PTEC) has signed an agreement with Orbital Marine Power, developers of the Orbital O2 tidal turbine, to bring the Isle of Wight a step closer to producing tidal energy. PTEC has obtained consents to place tidal turbines in the sea off the south coast of the Isle of Wight, and Orbital is the first company to sign up, with an initial target deployment of up to 15 MW by the end of 2025.

UK gas company IOG plc has signed a collaboration agreement with GeoNetZero CDT, Heriot-Watt University’s Centre for Doctoral Training, under which IOG will support research into carbon capture and storage (CCS) and other renewable opportunities in the Bacton area in the UK Southern North Sea.

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The sector has stepped up admirably during an exceptionally difficult year caused by the global pandemic

Ørsted announced in mid-May it had started the onsite construction work on the H2RES project in Copenhagen—its first renewable hydrogen project.

The 2-MW project will investigate how to best combine an efficient electrolyser with the fluctuating power supply from offshore wind.

The facility will produce up to around 1,000 kg of renewable hydrogen a day, which will be used to fuel zero-emission road transport in the Greater Copenhagen area and in Zealand. The project is expected to produce its first hydrogen in late 2021.

Germany’s RWE plans to establish its first test centre to investigate the potential of innovative airborne wind energy technologies after receiving planning permission to build the new facility in County Mayo, Ireland. Airborne Wind Energy Systems harness the strong and steady winds at altitudes greater than several hundred metres, and with reduced infrastructure costs, RWE says.

Total, together with Air France-KLM, Groupe ADP, and Airbus, have joined forces to carry out the first long-haul flight powered by Sustainable Aviation Fuel (SAF) produced in France, Total said. On 18 May, an Air France flight took off from Paris-Charles de Gaulle airport for Montreal with its tanks filled for the first time with sustainable aviation fuel produced in Total’s French plants.

“The development of biofuels is part of Total’s broad-energy strategy for decarbonising the transportation industry,” CEO Patrick Pouyanné said. bp, Iberdrola and Enagás plan to develop the largest green hydrogen project in the region of Valencia. The project would be located in the bp refinery in Castellón, where a 20-MW electrolyser will be built, powered by renewable energy produced, among other sources, by a 40 MW photovoltaic plant, Iberdrola noted.

“With this project, bp reinforces its commitment to hydrogen as a fuel of the future, as it will play a fundamental role in the decarbonisation of the energy, industry and transport, especially those that are difficult or expensive to electrify,” Carlos Barrasa, chairman of bp Spain, said.

Lundin Energy said at the end of April that it had sold the world’s first ever certified carbon neutrally produced oil from its Edvard Grieg field offshore Norway to Italian refiner Saras SpA.

Edvard Grieg field is the first oil field in the world to be independently certified by Intertek Group plc under its CarbonClear certification, the Sweden-based energy firm said.

Lundin Energy Norway announced a collaboration agreement with Ocean Harvesting Technologies to study how the installation of wave energy converters could provide clean, stable, and cost-effective electricity to an offshore oil and gas platform.

Project partners Shell, GASCADE, Gasunie, and RWE signed a declaration of intent to further intensify their collaboration on the AquaDuctus project to transport green hydrogen from the North Sea directly to the continent. The AquaDuctus pipeline is the vision for the first German offshore hydrogen pipeline, RWE said.

Norway’s Equinor has announced major deals in offshore wind and solar power in recent weeks.

Poland’s Energy Regulatory Office (ERO) announced Equinor and Polenergia’s Bałtyk II and Bałtyk III projects were awarded contracts for difference (CfD) under the first phase of Poland’s offshore wind development scheme. The projects, with a combined potential capacity of 1,440 MW, are among the first to secure offshore wind awards in Poland.

“Full-scale development of the two projects will constitute an offshore wind hub in the Baltic Sea. It will create industrial activity and jobs to support the Polish economy, and supply low-cost renewable electricity to Polish homes and businesses,” said Pål Eitrheim, Equinor’s executive vice president for New Energy Solutions.

On the following day, Equinor said it had completed an agreement to buy 100% in Polish onshore renewables developer Wento from private equity firm Enterprise Investors. Wento has 1.6 GW of solar projects in different stages of development. The acquisition supports Equinor’s effort to be a leading company in the energy transition and provides a strong platform for growth in the Polish energy market, the Norwegian firm said.

Equinor and Vårgrønn – a Norwegian renewable energy company established by HitecVision and Eni – have signed a collaboration agreement to jointly prepare and submit an application to the Norwegian authorities to develop floating offshore wind at Utsira Nord west off Utsira and Haugalandet in the Norwegian North Sea.

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ENERGY NEWS

By Tsvetana Paraskova

US

ENERGY REVIEW

In another eventful month for US energy, President Joe Biden set ambitious emissions reduction targets, a cyber-attack halted operations on a key fuel pipeline, shale producers showed they are keen to keep discipline and return cash to shareholders, and the oil and gas industry became more optimistic about its recovery.

New US Climate Plan President Biden, who rejoined the Paris Agreement on his first day in office, set at the end of April a new target for the United States to achieve a 50-52% reduction from 2005 levels in economy-wide net greenhouse gas pollution in 2030. The US aims to reach 100% carbon pollution-free electricity by 2035 and achieve net-zero emissions economy-wide by no later than 2050.

The announcement “is part of the President’s focus on building back better in a way that will create millions of good-paying, union jobs, ensure economic competitiveness, advance environmental justice, and improve the health and security of communities across America,” the White House said.

These ambitious targets are set to impact the US oil and natural gas industry in the coming years and decades.

The American Petroleum Institute (API) said that the goals address only half of the dual challenge to tackle climate change and at the same time ensure the nation’s energy security.

“API supports the goals of the Paris Agreement to reduce global emissions and alleviate poverty,” API President and CEO Mike Sommers said in a statement.

“The new U.S. nationally determined contribution addresses only half of the dual challenge of reducing the risks of climate change while ensuring affordable, reliable energy for all Americans. With a transparent price on carbon and innovation, we can make measurable climate progress within this decade without hurting America’s middle class, jeopardising U.S. national security, and undermining economic recovery,” Sommers noted.

Independent energy research company Rystad Energy, commenting on the plan, said that:

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Colonial Pipeline, the main pipeline carrying petrol and diesel to the US East Coast, shut down on 7 May, following a ransomware attack.

“The climate targets that were recently set by the Biden administration in the US represent a challenging task and require major changes in the country’s energy system that would shake the current fuel mix status quo.”

According to Rystad Energy’s model of what it believes is the most achievable pathway to meet these targets, fossil fuel use would have to significantly reduce and spending of US$2.5 trillion in renewable energy projects should be made this decade.

Cyberattack Shuts Down Colonial Fuel Pipeline for Days Colonial Pipeline, the main pipeline carrying petrol and diesel to the US East Coast, shut down on 7 May, following a ransomware attack. The 5,500 miles of pipeline is a significant mode of shipment for transportation fuels for the East Coast, carrying petrol, diesel, heating oil, and jet fuel from Houston, Texas, on the US Gulf Coast up to Linden, New Jersey, and serves several markets along the route through various branch lines. The cyberattack and the halting of the pipeline operations disrupted fuel deliveries to many states on the Eastern Seaboard, created panic buying, and sent the national US average petrol price above $3 per gallon for the first time since 2014.

The most prominent points in Rystad Energy’s roadmap for America meeting the targets include the reduction of US oil consumption by 32% by 2030 compared to estimated 2021 levels of 19 million barrels The US aims to per day (bpd). US natural Colonial Pipeline resumed gas consumption would reach 100% carbon operations five days after also have to decline, by the cyberattack, but fuel 27% by 2030 against pollution-free electricity by shortages in some eastern estimated 2021 levels 2035 and achieve net-zero US states continued for of 30 trillion cubic feet. several more days.

On the other hand, the emissions economy-wide share of battery electric The cyberattack highlighted vehicles in new US car by no later than 2050. the importance of the pipeline sales needs to reach 24% in delivering fuel to the US East in 2024 and 74% in 2028.

Coast on the one hand, and the Wind and solar capacity increased cyber threats the industry will also have to surge, along faces in the digital age, on the other hand. with battery storage, to meet the 2035 carbon-free grid target, as per Rystad Energy’s model.

“The U.S. critical energy infrastructure network is under constant threat of attack from both “The targets set by the Biden Administration state-sponsored and rogue hackers attempting are very ambitious and any suggested plan, to disrupt the supply chain. As attacks become including ours, represents an extremely more sophisticated, companies are tasked with challenging journey. In any scenario, properly training their workforce to recognise renewable energy will be the protagonist and and mitigate potential threats, while partnering flexible power will be needed to handle the with experts at the highest levels of government intermittency as a result,” said Jarand Rystad, to provide guidance on potential unseen chief executive officer at Rystad Energy. vulnerabilities,” said Deidre Kohlrus, Director Government Affairs at the Energy Workforce & “If battery costs decrease fast enough, storage Technology Council. will be preferred against grid upgrades and the battery market could consequently flourish and The cyberattack underscores two big points: become as big as the EV market,” Rystad added. the vital nature of energy infrastructure and

protecting against cyber threats is an economy-wide responsibility, API said.

“We want to build more pipelines in this country, and we want to invest in cybersecurity as well,” API President and CEO Mike Sommers said in an interview with CNN International.

US Oil Producers Keep Pledge To Focus on Shareholder Returns The first-quarter earnings season for US oil companies showed that shale producers kept the promised restraint in production and shifted their focus from output growth onto returning more cash to investors.

Many independent public shale companies, as well as supermajors ExxonMobil and Chevron, reiterated plans for capital discipline and for rewarding shareholders after generating record free cash flows as a result of said discipline while oil prices were rallying.

According to a sample of US firms that energy data provider Enverus tracks, independent E&P companies generated cumulative cash flow in Q1 ten times higher than in the same period last year.

Capital discipline set down in 2021 budgets and rising commodity prices helped to pivot the industry from growth to cash generation, Enverus noted.

“The question in most investors’ minds is will this be sustained into the future or will the industry shift back to growth and put pressure on commodity pricing with an influx of supply?” analysts now ask.

Pearce Hammond, Senior Research Analyst at Simmons Energy, a division of Piper Sandler, told a virtual market outlook seminar with members of the Energy Workforce & Technology Council: “U.S. oil production is going to grow, but it’s going to be more subdued going forward.”

“We think we’ll see tightening markets as demand improves and the industry maintains its capital austerity. That will grow the need for a non-OPEC reinvestment cycle commencing next year, if not sooner,” Hammond said.

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ENERGY NEWS

MIDDLE EAST

Energy Review

OPEC Sees Oil Demand Rebound OPEC and its allies in the OPEC+ coalition reiterated at the end of April their oil production policy, which envisages the group adding 1 million bpd of supply by July, beginning with a 350,000-bpd increase in production in May. Saudi Arabia, the largest oil producer in OPEC and the biggest oil exporter in the world, will also unwind its unilateral extra 1 million bpd cut between May and July.

At the Joint Ministerial Monitoring Committee (JMMC) at the end of April, OPEC Secretary General Mohammad Barkindo said that “the oil market continues to reap the benefits of the DoC’s support for sustainable oil market stability and providing a platform the global economic recovery.”

By Tsvetana Paraskova

Barkindo “highlighted the positive trajectory of the global economy, coupled with stimulus measures, progress on vaccinations and the summer travel season, as driving forces for the improving oil demand outlook in the second half of the year,” OPEC said.

In the middle of May, Russia’s Deputy Prime Minister Alexander Novak said that the oil

OPEC signalled confidence in oil demand recovery.

Over the past month, Middle Eastern oil producers have started to gradually return as much as 1 million barrels per day (bpd) on the global oil market

by July, expecting world demand for crude to rebound with the re-opening of major economies despite the dire situation with India’s COVID crisis.

OPEC signalled confidence in oil demand recovery both with its decision to proceed with unwinding the cuts and with its unchanged demand outlook in its latest Monthly Oil Market Report (MOMR) in May. Iran, an OPEC member exempted from the OPEC+ agreement, prepares to ramp up crude oil production and exports as indirect talks with the United States on a possible return to the so-called Iranian nuclear deal proceed and make some progress.

In addition, major national oil companies (NOCs) reported strong first-quarter results and signed deals with contractors for oil and gas projects.

www.ogv.energy I June 2021

market was fairly balanced with demand slightly exceeding supply.

“There is definitely a deficit on the market, that’s why oil stocks from last year are drawing down toward the five-year average,” Novak said, as carried by Russian news agency TASS. OPEC kept its global oil demand outlook unchanged and continues to see consumption rising by 5.95 million bpd in 2021, thanks to accelerating vaccination programs and rising fuel demand.

The organisation revised down its estimates for global oil demand for the second quarter of 2021 by 300,000 bpd because of weakerthan-expected demand in North America in the first quarter and the COVID resurgence in India and Brazil in the second quarter.

However, OPEC lifted its demand outlook for both the third and fourth quarters of 2021 by 150,000 bpd and 290,000 bpd, respectively.

The higher anticipated demand in the second half of 2021 is the result of positive fuel data from the United States, while “the acceleration in vaccination programs in many regions allows for optimism,” OPEC said in its MOMR for May.

Middle East Deals & Contracts

MIDDLE EAST REVIEW

The Saudi oil behemoth was also active in contracts and strategic agreements.

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Energy Investment in MENA Set To Exceed $805 Billion through 2025 Arab Petroleum Investments Corporation (APICORP) estimated in its MENA Energy Investment Outlook 2021-2025 published in May that overall planned and committed investments in the Middle East and North Africa region would exceed US$805 billion over the next five years to 2025. This would be a US$13-billion increase from the estimate in last year’s five-year outlook.

Sector-wise, investments in the power sector are surging, while investments in gas seem to be plateauing, despite Qatar’s North Field Expansion (NFE) megaproject, the single largest LNG final investment decision (FID) in history, APICORP said.

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Saudi Aramco, the biggest oil company in the world and also the largest oil exporter, reported a 30% jump in its net income for the first quarter

“For hydrocarbons producers, this decade might prove to be the last window for the low-cost producers to firmly re-establish their market share, particularly Saudi Arabia and Qatar,” APICORP said in its outlook.

International service provider to the energy industry Lamprell said at the end of April it had awarded an Engineering, Procurement, Construction and Installation (EPCI) contract

by Saudi Aramco as part of their Long-Term Agreement Programme (LTA) with Lamprell.

This is the organisation’s second award under the LTA framework.

The scope of work for Lamprell, based in the UAE and listed on the London Stock Exchange, includes the supply and installation of three drilling jackets and two new single well observation jackets/decks. Work is scheduled to be completed next year.

Italy-based engineering, drilling, and construction company Saipem said in the middle of May it had been awarded the extension of two contracts for onshore drilling activities in Saudi Arabia for a duration of 5 and 10 years, respectively.

“These extensions of existing contracts are a positive sign of a gradual resumption of activities following the Covid-19 pandemic,” Saipem said.

In the United Arab Emirates, the Abu Dhabi National Oil Company (ADNOC) has launched an initiative to standardise the terms and conditions for the procurement of drilling and oilfield goods and services across ADNOC’s entire value chain, in a bid to drive efficiencies in the tendering process.

“This initiative significantly speeds up ADNOC’s tendering process,” Jasim M. Saeed, Senior Vice President, Group Procurement at ADNOC, said.

Saudi Aramco, the biggest oil company in the world and also the largest oil exporter, reported a 30% jump in its net income for the first quarter, underpinned by higher oil prices and an improved economic environment.

Aramco’s net income came in at US$21.7 billion for the first quarter, while free cash flow stood at US$18.3 billion. The Saudi oil giant kept its quarterly dividend payment at US$18.8 billion, on track to pay US$75 billion in dividends for the full year.

Aramco also made headlines after Saudi Arabia’s Crown Prince Mohammed bin Salman said on Saudi television at the end of April that the oil giant was in talks to sell 1% to a “leading global energy company.”

ADNOC is also investing up to US$318 million (AED1.16 billion) to connect newly drilled smart wells to the main production facilities at Bu Hasa, which will sustain a production capacity of 650,000 barrels per day at ADNOC’s largest onshore asset.

ADNOC Onshore awarded the Engineering, Procurement and Construction (EPC) contract in two packages. Package 1 is valued at up to $158.6 million (AED582 million) and has been awarded to China Petroleum Pipeline Engineering Co. Ltd, while Package 2, with a value of up to $159.1 million (AED 583.9 million) has been awarded to Robt Stone (ME) LLC. The duration of the contracts is three years, with the option of a two-year extension.

“Given the positive signs for energy demand in 2021, there are more reasons to be optimistic that better days are coming. And while some headwinds still remain, we are well-positioned to meet the world’s growing energy needs as economies start to recover,” Aramco’s president and chief executive officer Amin Nasser said.

The crown prince did not offer many details, which spurred analysts to speculate which global energy company it was and where it is based. Most experts concur that a Chinese state energy giant would fit the bill and would have the means and willingness to pay an estimated around US$19 billion for 1% in Saudi Aramco.

“The award underpins our strategic objectives to expand production capacity and create a more profitable upstream business with over half of the contract value flowing back into the UAE’s economy, supporting local businesses and stimulating economic growth,” said Yaser Saeed Almazrouei, ADNOC Upstream Executive Director.

Saudi Aramco’s Net Income Surges 30% as Oil Prices Rise

Aramco’s net income came in at US$21.7 billion for the first quarter, while free cash flow stood at US$18.3 billion.

WORLD PROJECTS

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WORLD PROJECTS MAP

SAUDI ARABIA - Saudi Aramco Zuluf Field Development Programme US$9bn

Saudi Aramco is expected to award two onshore EPC packages by the end of 2021 with technical and commercial offers expected to be submitted in July 2021. Package one covers a 600,00 b/d central processing facility, while package two comprise the Utilities and water treatment, and water injection facilities.

JUNE 2021

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

WORLD PROJECTS SPONSORED BY

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BRAZIL - Petrobras Mero Oil & Gas Field (Phase 3) US$3.5bn

ALGERIA - Groupement Touatgaz Touat Gas Field US$220mn

TURKEY - Ronesans Holding Adana PDH and PP Plant US$1.4bn

BRAZIL - Enegix Base One Green Hydrogen Project US$5.4bn

MISC Berhad has awarded Siemens Energy an EPC contract for eight complete topsides modules for the Marechal Duque de Caxias FPSO.

Neptune Energy is to start FEED work on the second phase of Touat during 2021. The project which covers the development of the eight remaining fields in the associated block, aims of delivering plateau production of 75,000 b/d (450MMcf/d of gas) and will supply the Adrar refinery at a rate of 6,000 b/d of oil.

Renaissance Heavy Industries (RHI) and GS Engineering and Construction have been awarded a lump-sum turnkey EPC contract for the PP project. GS Engineering and Construction will undertake the engineering and procurement part of the LSTK while RHI will complete the project construction.

Enegix Energy has signed a memorandum of understanding (MoU) with Black & Veatch for the delivery of feasibility studies key to advancing the green hydrogen plant.

Siemens scope of supply includes the EPC work for all eight modules and several key components.

www.ogv.energy I June 2021

The facility is expected to be the first hydrogen hub in Latin America and will produce an estimated 600,000 tpa of green hydrogen.

WORLD PROJECTS

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ANGOLA - Eni Block 15/06 – Cuica Oil Discovery US$ Undisclosed

Eni has announced a light oil discovery at its Cuica prospect in Block 15/06.

The discovery well is close to the East Hub field development's subsea network, which will allow a fast-track tie-in of the exploration well and relevant production, thus immediately creating value while extending the Armada Olombendo FPSO production plateau. Eni said production is expected to start within six months after discovery. Eni is planning to sidetrack the discovery well.

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AUSTRALIA - Santos Caldita and Barossa Gas Fields US$3.6bn

PAPUA NEW GUINEA - Total Elk-Antelope Gas Field US$1.5bn

USA - Velocys Bayou Fuels Biomass-To-Fuels CCUS Project US$300mn

Santos has announced that a final investment decision (FID) has been taken on the gas and condensate project. BW Offshore has been awarded a major contract for the construction, connection and operation of the FPSO. BW will build the FPSO in South Korea and Singapore.

Papua New Guinea's government has approved the renewal of the retention lease over the large ElkAntelope gas fields for a five year period starting on 30 November 2021. This will allow the partners Total, ExxonMobil and Oil Search, to conduct project financing activities and strategic market studies.

The pre-FEED and federal permitting for the Bayou Fuels Biomass To Fuels Project have been completed. Velocys plans to sanction the Bayou Fuels project in Q4 2021.

WORLD PROJECTS SPONSORED BY

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ASSET INTEGRITY Identification Studies (HAZID), and structural integrity management, is estimated to be worth US$19.4 billion in 2020, ResearchAndMarkets said in a report in November.

The size of that market is expected to grow at a compound annual growth rate (CAGR) of 4.5% through 2025, reaching US$24.2 billion by that year. The key drivers will be growing demand for asset integrity management in new deepwater offshore fields and declining efficiencies of ageing assets, according to ResearchAndMarkets.

By Tsvetana Paraskova

ASSET INTEGRITY IN THE ENERGY INDUSTRY Asset integrity and asset integrity management systems (AIMS) are critical to the safe and smooth operations of oil and gas facilities and installations, from oil fields and offshore platforms to pipelines and refineries.

Maintaining asset integrity is a core business of all oil and gas companies and those in the support supply chain. Although asset integrity rarely makes headlines, except in cases of catastrophic failures, this is an integral part of all operations of the energy industry and no operation can run smoothly without ensuring the health and safety of the people and the reliability and safety of the energy supply.

“With the ageing infrastructure, the demand for asset integrity management services in the oil and gas sector is expected to increase, in order to prolong the life of these assets,” ReportLinker said.

North America, which has one of the oldest midstream infrastructures, with many oil and gas pipelines older than 40 years, is set to dominate the asset integrity management services market through 2025. In addition, most of the active platforms in the Gulf of Mexico are older than 25 years, ReportLinker noted.

Specifically for oil fields, the size of the asset integrity management market is expected to rise at a CAGR of 7.8% between 2020 and 2027, to reach US$22.87 billion by 2027, Fortune Business Insights said in a report in early 2021.

The growth will be driven by increased oil and gas exploration activities and the growing adoption of modern technologies such as artificial intelligence (AI) that is likely to propel the demand for advanced oilfield integrity management solutions globally, according to Fortune Business Insights.

Digitalisation Could Transform Oil, Gas & Energy Sector Operations The increased adoption of digital services in asset management and maintenance and the rise of AI in planning and predictive analytics could help the energy industry streamline operations and monitor the performance of plants and facilities easier, analysts in the industry say.

Carrying out remote video or augmented reality-assisted inspections in harsh environments, predicting maintenance plans and downtimes, streamlining work processes, and optimising asset performance via smart devices are some of the applications of advanced technologies in the energy sector.

The asset integrity market in the energy industry is set to grow in coming years and decades.

Asset integrity management ensures reliability and safety, reduces potential risks, optimises productivity, production, and downtime, and meets the relevant safety and operational requirements.

The asset integrity market in the energy industry is set to grow in the coming years and decades as operational oil and gas upstream, midstream, and downstream assets will continue to need efficient and cost-effective asset integrity management.

In addition, the expected exponential rise of renewable energy sources and wind and solar installations will also drive the asset management market in the energy sector.

Growing Market for Asset Integrity Management Services The size of the global asset integrity management services market, including risk-based inspection, corrosion management, pipeline integrity management, Hazard

www.ogv.energy I June 2021

Market research firm ReportLinker said in an April 2021 report that it expected the asset integrity management services market in oil and gas alone to register a CAGR of about 8.67% through 2025, due to rising demand for oil in coming years and the use of assets such as offshore platforms, rigs, and pipelines beyond their design life.

According to DNV, an independent expert in assurance and risk management, Internet of Things equipment such as sensors and Big Data advanced analytics could give a better overview of operations and more control and independence for manageing assets.

Digitalisation can bring benefits to day-to-day operations and cost reduction as historical and real-time data help operators improve maintenance and inspection regimes for condition monitoring, according to interviews DNV has carried out with 25 key stakeholders, including operators, rig owners, IT suppliers, and consultants.

DNV also published a report on the solar industry in April 2021, saying that the digitalisation of solar power generation assets could lower costs and increase the value of solar generation in the market.

Increased use of advanced analytics and machine learning could lower construction, development, and asset deployment costs. In terms of operations, digital tools will streamline and continuously improve how solar power is generated and delivered, according to the report.

Digitalisation “will provide the necessary insights and integration that solar projects will need to operate lucratively in an increasingly competitive environment,” says report author Dana Olson, DNV’s Global Solar Segment Leader.

Digitalisation has the potential to streamline oil and gas operations and help the industry rise to the challenge of the new reality of the sector, EY said in January 2021.

ASSET INTEGRITY

“Advances in digital technologies have the potential to allow the industry to respond effectively to changes in the market,” EY reckons.

The consultant has identified some of the areas with the greatest potential for impact across the oil and gas value chain. These include intelligent automation, data-driven decisions supported by AI, the Industrial Internet of Things, and blockchain.

Yet, digitalisation poses two key challenges to the energy sector—potentially increased susceptibility to cyber-attacks, and the need to reskill employees or attract digital-savvy young talent to the oil and gas industry.

The higher the use of digital tools, the higher the risks of malicious computer attacks become, so companies must also invest in cybersecurity to protect their digitalised assets.

Industry executives have come to realise that digitalisation would be crucial in the future energy systems, but a gap could emerge in the workforce if employees are not reskilled or young talent attracted soon.

“Energy’s struggle to attract millennial and Generation Z is well-documented as younger employees prioritise job growth, an environmental focus, and other factors which they believe (correctly or not) to be at odds with the oil and gas sector,” KPMG said in a recent report.

EY’s Oil and Gas Digital Transformation and the Workforce Survey 2020 found that there was “significant skill gaps even among current users of digital technologies.”

“Workforce composition and training are widely acknowledged barriers to technology adoption, and the skillsets needed to onboard and extract value from digital technologies — data analytics, cybersecurity, data science, design thinking, artificial intelligence and others — far outpace the current level of maturity across the industry.”

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ASSET INTEGRITY artificially created by coating manufacturers for accelerated humidity chamber testing to determine coating life.

FRESH APPROACH TO CUI MITIGATION

There are many solutions being tabled by both academics and coating manufacturers as to the most efficient method to mitigate CUI, or at least slow it down. These solutions are debated by O&G engineers, corrosion engineers and asset integrity professionals responsible for upstream and downstream asset life. Our own UK HSE recognise CUI as a Top 3 hazard and UK Oil &Gas along with OGTC are encouraging the corrosion service sector and coating manufacturers to develop solutions.

using STOPAQ visco elastic technology.

Regular inspection is imperative for maintaining asset integrity.

From tanks to vessels to submerged structures like bridges and dams, consistent inspection is crucial to ensure safety and efficiency.

OPEX budgets for fabric and operational maintenance have been slashed in 2020 and 2021, with a similar story emerging for 2023.

However, the ravages of corrosion continue to bite equipment and structures, especially those offshore and in marine environments.

The OGTC Asset Integrity Solution Centre recognised that one of the greatest challenges facing the offshore industry on the UKCS is the management of mature assets and that there is also an opportunity to reduce asset integrity costs by 30-50% through the adoption of innovative technologies, extend asset operating lives and maximise economic recovery.

Focusing on two specific issues: process vessel inspection (VI) and corrosion under insulation (CUI). It is estimated that the total cost to the UKCS from VI and CUI is in excess

We know that the current restrictions caused by the Covid-19 pandemic are having a profound effect on maintenance and asset integrity, both onshore and offshore.

The industry needs to find corrosion mitigation solutions that are: of £300 million per annum, of which over £100 million relates to operating expenditure incurred due to the limitations of the current VI and CUI inspection methods. It’s envisaged that technology can help the industry achieve efficiencies in maintenance and integrity, improving production uptime by over 10%.

This does not include the business risks and HSE risks for pipework failures caused by CUI. Recent testing by NACE suggests that Most hot insulation materials have a lot of open space or porosity in them. When water wicks into and fills the insulation material sitting against the steel surface of equipment operating at a temperature that is not hot enough to quickly drive away wetness, any unprotected carbon steel will experience CUI because of these repeated long intervals of wetness. In practical terms the pipework below the insulation is now in a high temperature, ultra-high humidity, and a low pH environment – exactly the same conditions

•

Cost effective in regard to reduced labour, materials, and time to apply.

•

Delivered savings relating to logistics and materials.

•

Longevity – the system has a 30+ year design life.

•

Ease of application – minimum surface preparation, limited footprint.

•

Significant waste reduction, as no blast media required.

•

Improves environmental impact compared to conventional blast and paint options.

•

No need for containment or disruption to SIMOPS

ABOUT PRESSERV Presserv provide total corrosion solutions, offering our clients the ability to extend the life of their assets by utilising proven technologies in surface preparation, coatings, and preservation of the asset.

www.presserv.co.uk

www.ogv.energy I June 2021

Presserv is the leading specialist in preservation and corrosion protection within energy, renewables and shipping industry globally For more information visit www.presserv.co.uk

ASSET SUBSEA INTEGRITY REVIEW

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AI: RISE OF THE MACHINES

F

or over 50 years Hollywood movies have featured the proliferation of artificial intelligence (AI); from HAL-9000 in Stanley Kubrick’s 1968 film “2001: A Space Odyssey” to the more universally known 1980’s cult movie (and follow-up series) “The Terminator” with one of the most well-known catchphrases – “I’ll be…"…well you know the rest.

The great thing about such movies is you already know the plot; the AI has suddenly determined humanity is a threat and begins a campaign of tyranny and destruction against its creators.

Fast forward to 2021, the world has come a long way in the digital revolution however we are by no means on the cusp of an AI uprising of Hollywood proportions. Nevertheless, the storylines of these movies do serve as an important reminder that trust and reliance on artificial intelligence may not always end well for any humans involved.

of examination candidates were given computer-generated exam results based on the modelling of previous years’ candidates.

In a high number of cases condemning students from historically poorer performing schools to much lower grades than their educators had predicted based on their proven ability. Thankfully those in authority saw sense and replaced the computed grades with those from, you guessed it……humans.

Whether we realise it or not, AI is part of our daily lives. Whether being used to determine what websites we can or can’t access or whether or not we qualify for a special deal on our next mortgage, AI-driven processes are So how does AI add value to all around us and many industry sectors have derived benefits of utilising machine learning CAN Group and its clients? algorithms in place of humans to achieve more cost-effective and efficient operations.

As an Asset Integrity specialist, celebrating So, there is no question there are benefits and 35 years in business this year (a little bit the AI lobbyists are quick to highlight younger than the first Terminator the success stories however, movie), CAN Group continually notably absent from fanfare harness advancements in or press are the times when technology with safety, CAN’s data intelligence replacing human decisions integrity and certainty platform ENGAGE, with machine learning at the forefront of our results in the realisation of operations. Our team utilises AI to help users unintended consequences. of specialists adopt a make informed decisions For example, a recent risk-based approach to on asset integrity by switch to AI-based fraud inspection using AI, Human aggregating data from a detection within some Intelligence and experience variety of sources. banks led to legitimate at its core. In this approach, customers being deemed an engineer will review data fraudulent and locked out of from a variety of sources to accessing their own accounts and make an informed decision on with limited ability to speak to a human which equipment to prioritise and how to challenge the decision (computer says no often inspections should occur. On the face of – and the account holders deciding things, this type of process is perhaps a good “I won’t be back”). opportunity to remove the human element and utilise a machine learning algorithm The argument often boils down to the to determine risk as this would remove assumption that machines are better the engineering cost and would make the than humans because they can never be decisions faster, however what consideration wrong. This somewhat simplistic worldview to unintended consequence? is amplified by the growing reliance on technology on a personal level. However, For instance, corrosion can often occur what is often overlooked is that the in a non-linear fashion and there may machines themselves are designed, built and be external factors at play that are not programmed by humans who are all capable immediately obvious if simply analysing of errors, so any flaws in programming or raw data. These are the types of issues that incorrect assumptions in an AI model will only an experienced engineer can identify ultimately result in a flawed system; an and mitigate. A machine learning algorithm example of this being the poor data modelling can only make its decisions based on the during the pandemic when thousands data used to train the model. This could

result in a blinkered view of the situation and unintentionally increase the risk of failure.

If the computer says the pipe should not be leaking, how do you explain the black liquid oozing into the sea?

All intelligence has its place; at CAN Group, we see the benefits of AI as an assistive tool rather than a replacement to the human decision-making process. CAN’s data intelligence platform ENGAGE, utilises AI to help users make informed decisions on asset integrity by aggregating data from a variety of sources. This system was designed and developed in-house by CAN Group’s expert Integrity professionals to overcome the technological challenges of assuring and maintaining safety critical asset information to ultimately ensure continued safe operations. A recent development within ENGAGE also uses AI Computer Vision to analyse all imagery. The system will flag any potential defects from the gathered imagery (with the emphasis on “potential”) to ultimately draw attention to objects that may have ordinarily been missed by the human eye and allow the engineer to make an informed decision on risk and further mitigation.

CAN Group fully embraces the principles of AI and uses it where it adds value; however, it’s important to remember that humans should be leading the decision-making process when it comes to asset integrity. After all, a significant hydrocarbon event is going to affect us an awful lot more than the machines.

NO HUMANS WERE HARMED IN WRITING THIS ARTICLE

CAN GROUP is a market leader in life of asset integrity services with our business streams CAN, ENGTEQ and VENTEQ providing a comprehensive and integrated asset integrity service to deliver innovative solutions to the energy industry worldwide.

For more information on CAN Group’s market-leading life of asset integrity services visit www.cangroup.net

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IT’S TIME TO EMBRACE REGTECH New Cloud Technology Enhances Compliance and Transparency for Assets in Offshore Drilling Industry.

“A team of digital solutions specialists from Aberdeen-based company Fennex have developed a new cloud-based Policy Assurance Management (PAM™) platform, a RegTech type solution designed to fully digitise and simplify the end-to-end internal Assurance, Audit and Inspection tasks relating to Policy and Regulatory Compliance”.

Efficiency is fast becoming a big mantra for operational management within the energy sector, and even more so in the field of global compliance and risk management.

Yet, despite the huge advances in technology, for some efficiency is still below par.

Compliance continues to be an intensely complex area to navigate, one that relies heavily on time-consuming methods with very little transparency.

With the rapid expansion of new technology, Aberdeen-based company Fennex is leading the charge with the deployment of Policy Assurance Management (PAM™) platform, an innovative cloud-based regulatory technology solution designed to fully automate and

integrate the end-to-end internal policy assurance process, supporting organisations to effectively manage their regulatory and compliance requirements.

Each year, non-compliance costs the oil and gas industry several millions of dollars and a variety of losses from damage to health, environment, financial balance sheets, reputation and in many cases all at the same time. In turn, these factors warrant the need for more effective company management systems that adopt a live and dynamic compliance process rather than relying on the good old trust and burdensome traditional verification methods.

Forward-thinking and innovative oil and gas organisations are embracing cutting edge technology and seeing the added value generated by having instant access to accurate, real-time data. As the energy sector starts to reap the benefits of digitalisation, this systematic shift in mindset is being reinforced further by a more contemporary concept - RegTech.

Regulatory Technology, or ‘RegTech’ as it has been coined, is the application of technology that ensures compliance to the relevant regulations, policies, and procedures to reduce losses for organisations.

RegTech is to the energy sector what FinTech is to the finance industry, whereby digital technology is used to automate the process that guides the regulatory policy compliance within organisations.

Technological advancements in the fields of Artificial Intelligence (AI), Machine Learning (ML) and Robotic Process Automation (RPA) are now playing a key role in the formation of effective regulatory compliance processes for organisations that embrace this technology to reduce value at risk.

AI

Synchronisation of data between online and offline platforms

ML

Machine Driven Analysis and Feedback to highlight areas of concern.

RPA

Removing manual tasks from the works – report generations and distributions.

Serving as a catalyst for new technology, RegTech is set to be the buzzword in 2021 as more and more companies look to stay ahead of the curve and realise the potential value at stake.

Fennex launches Policy Assurance Management solution (PAM™) to strengthen global regulatory compliance for leading offshore organisations.

Founded in 2016, Fennex is a digital solutions specialist which combines deep industry knowledge with its innovative and cloud-based technologies, to design, build and implement bespoke online platforms, that are capable of fully digitalising and transforming the industry’s most complex processes, and delivering substantial and tangible businesses efficiencies.

Following the unwavering focus on research and product development, Fennex’s innovative PAM™ solution uses cutting-edge cloud computing-including AI and ML applications and RPA, and has been deployed globally for some of the world’s largest oil and gas drilling contractors such, Noble Holding Corporation plc. (Noble Drilling) and Transocean.

Fennex launches Policy Assurance Management solution (PAM™) to strengthen global regulatory compliance for leading offshore organisations.

www.ogv.energy I June 2021

Our vision is to harness the latest cloud computing innovations, tailoring them to agile, cost effective solutions that make a significant difference in driving measurable business value for our partners.

For more information visit www.fennex.net

ASSET INTEGRITY Fennex Founder and Managing Director Adrian Brown, says: “This latest

advancement with the launch of our new Policy Assurance Management technology allows for complete transparency and offers simplicity for the most complex of processes. When compared to some traditional methods that not only hinder proceedings but also ramp up costs, there is simply no comparison”

The bespoke cloud-based software is tailored to each client, and is fully integrated within their Microsoft tenant and includes automated reports and data analytics, allowing real time access to data using a transparent live dashboard and reports. The use of mobile devices (Apple iOS and Google Android OS) to access the bespoke built-in apps is a key factor in wide adoption, which allows users to work online and offline with advanced dictation and photo capabilities.

“The wide adoption of the cloud solution enables teams to prioritise activities and optimise their Assets Integrity Audit/ Inspection and Verification program, increasing productivity by 40%, and driving up levels of compliance”

“As a company that recognises the value of technology as a vital tool for success, we are delighted to continue our long-standing partnership with Noble.

“Even whilst living through unprecedented Covid times, our technology has proved that remote working and shared platforms can hold the solutions to the many challenges that the industry faces going forward.”

While Oil & Gas companies have faced challenges to their efficiency, sustainability and profitability long before COVID-19, the severity of the challenges currently facing the industry has increased the urgency to tackle these issues.

The answer is simple: the most viable response to address these systemic challenges is to accelerate digitisation strategies to maximise efficiencies and improve resilience, and regulatory technology solutions are the next logical evolution that will underpin the assets integrity management.

The Fennex team continues to explore opportunities to bring the latest cloud technologies to companies across the oil and gas sector, to accelerate their digital transformation and unlock much further efficiencies in the strive towards operational excellence.

As one of the first companies to adopt Fennex’s new technology to facilitate and simplify its compliance process, Noble experienced first-hand the benefits of a bespoke digital solution that has transformed its policy assurance process by improving compliance while driving continuous efficiencies, improving safety and reducing operating costs.

Noble Corporation – Barry Quinn HSE Director “By implementing Fennex’s PAM™ solution, our teams have a far greater ability to execute key critical regulatory verifications and internal assurance, audits and inspections to ensure compliance, or just as important, to highlight areas of noncompliance in need of action.”

“The digital PAM™ solution has been used very successfully in ensuring regulatory compliance in some of the more challenging working environments such as UK, and Norwegian waters, but also across our global fleet for various key audits/ inspections for well control systems/ operations and high-risk drilling activities such as HPTH and MPD operations.”

“By combining years of industry experience with Microsoft Azure and advanced mobile technologies, the Fennex innovative, cloud-based collaboration platform PAM™ can be seamlessly integrated into any operating environment.”

Fennex specialise in the development of bespoke cloud-base software solutions that enables consistency, and transparency to aid decision making and drive operational performance.

For more information visit www.fennex.net

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To optimise offshore operations leading offshore contractors have started to explore the use of ‘Digital Twin’ technology to reduce costs, minimise operational downtime and increase environmental performance.

Kognifai &

DIGITAL TWIN TECHNOLOGY in a Deepwater Offshore Drilling environment

D

igital Twin technology takes data from a physical asset which is then interfaced with a virtual representation to make the information accessible for the end-user. This data provides real-time feedback to onshore and offshore technical teams which allows greater monitoring of an asset’s condition and also provides greater visibility on the current and historical performance. This information can then be used to maximise operational efficiency, influence maintenance programmes and minimise the likelihood of equipment damage by correct interpretation of the data available.

Digital Twins come in many shapes and sizes, from the asset view of a BOP through the hierarchy to the all-encompassing digital representation of a fleet-wide monitoring system. The first step in achieving Digital Twin capabilities is ensuring relevant data is accessible, available, and integration friendly.

A recent example of a company that has successfully commenced the journey to develop an advanced Digital Twin functionality has been Stena Drilling’s adoption of the Kongsberg Kognifai ecosystem across its entire offshore fleet.

Via the Kognifai ecosystem, Stena Drilling can visualise real-time and historical vessel data both onboard and onshore. Currently, over 18,000 sensors are accessible offshore in Kognifai with over 5,000 prioritised for synchronisation to shore. This provides users with advanced monitoring and analysis capabilities of systems across the fleet.

Since the first deployment to Stena Carron in mid- 2019 the Kognifai ecosystem has enabled: • • • • •

Improved decision making and support.

Access to data to enhance troubleshooting and fault-finding capabilities.

Detailed Failure analysis.

Improved safety through visualisation and supervision.

Vessel performance analysis.

Following deployment, efforts have been made to interface Kognifai with Stena Drilling's own digital twin ‘DigiMAX’. By connecting data across the entire Stena Drilling ecosystem, value can be mined, enabling analytics that previously were inaccessible. Through the integration of Kognifai to DigiMAX, numerous use-cases and success stories have been realised: To improve environmental performance and reduce vessel energy consumption Kognifai was used alongside the DigiMAX digital twin, to develop Stena Drilling’s Energy and emissions ‘Smart Meters’. The Smart Meters allow Stena Drilling personnel to monitor the energy consumption, associated costs, and

www.ogv.energy I June 2021

vessel emissions in real-time, eliminating the the engine original manufacturer to perform unpredictability of estimations. This allows condition monitoring leading to improved Stena Drilling to make informed decisions maintenance and engine performance. Kognifai about energy-consuming behaviours. Personnel data has also been used to assess the vessels onboard can visualise the effect of equipment performance for example DP offset data was or operations on energy consumption, raising used to successfully validate red watch circle awareness of how their actions affect energy for a reduced water depth feasibility study, and use and emissions. This innovation will vessel heave data was provided to our client to allow Stena Drilling to adapt its energy validate heave limits in riser analysis. management strategy and cut down on waste, providing long-term Adding to the success, Stena carbon and financial savings.

Drilling have implemented realFurthering the successes in time BOP health monitoring, energy management, data BOP Keyseating dashboards Through adopting from Kognifai has been and engine efficiency paired with operational environments. Throughout Digital Twin capabilities, performance data 2021, plans are in place Stena Drilling have inside DigiMAX to assist to extend the capabilities in carbon-reduction of the DigiMAX digital optimised asset performance tracking for twin and offer new digital performance. the year ahead. services to clients.

When COVID restrictions stopped client and third-party auditors travelling to a Stena vessel for 5-yearly DP periodic trials and rig acceptance, Kognifai was successfully used to provide the client with detailed trends and alarm reports of testing. This allowed the client to perform a large part of rig acceptance remotely, saving the client time and money.

Kognifai is being used to collect and export detailed vessel engine data which is used by

Through adopting Digital Twin capabilities, Stena Drilling have optimised asset performance. The examples presented prove that Digital Twin technology allows organisations to determine the intervention and maintenance required to optimise the performance of an asset and maximise its useful lifespan, before carrying out any work to the asset itself. This prevents unnecessary disruption and downtime and means the best-informed decisions can be made at the right time.

Stena Drilling is one of the world's foremost independent drilling contractors, consisting of 4 ultra-deepwater drillships and 2 semi-submersible rigs.

For more information visit www.stena-drilling.com

ASSET INTEGRITY

ASSET INTEGRITY

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Allan Merritt, CEO at Arnlea

One Step, Two Steps, Three Steps For Arnlea, the journey our customers are taking towards digital transformation could be described as steady as she goes. Some are taking their first step, others have moved to the second, and our challenge is to ensure that when they need the third step (and the fourth and the fifth), we have already prepared the way and have shown them what is next.

So what are these first, second and third steps?

What do we mean by this journey our customers are on?

There has been a shift in asset management and inspection in recent years, but the traditional model was, for example, an inspection team with pen and paper doing regular weekly, monthly, or annual inspections on assets that fall under the ATEX regulations. Even in 2021, there are energy businesses on and offshore conducting asset inspections this way. Our first step is to see customers embark on a digital journey and decide to deploy our Intrinsix asset management software. We provide the latest handsets, and our most recent updates have a UX/UI that rivals consumer software, something rare even in this landscape.

Many of our customers are at Step One. They have not moved to cloud-based software, rather Intrinsix is deployed on their servers. It integrates and functions well with SAP and other operational systems, and delivers high-value inspection software, and facilitates far better and more efficient reporting and decision-making. Sales pitch aside, Intrinsix is delivered to customers on a variety of different handsets. Many are now upgrading to our preferred and latest option but there are some who are still engaged with older handsets and other equipment.

As we’ve discussed elsewhere, we have a set of objectives for our business and customers that begin with a cloud-based approach to business – our platform for the future. This in truth is our Step Two. Our other two objectives, Mobile First and Product Agility meet our Step Two pathways for customers and also lay considerable groundwork for Step Three.

Step Two is the decision taken by customers who wish to move to a cloud-based software platform. In other words, they decide to use Intrinsix as a cloud-based web application, because of all the flexibility and operational efficiencies this approach delivers.

Our business is leading the way in developing third step platforms and when the energy industry is ready to share data, we will already be there!

What then is Step Three? We already have global operators pushing at the door for the next level again and this is the logical destination for customers who choose to partner with Arnlea. This Third Step is really a question for our CTO and his team, but from where I sit, our third step is about helping our second step customers take even greater advantage of their data by combining it, anonymously, to paint a fuller picture of how different assets perform in different environments or with different criteria.

This is something that the automotive and aerospace industries have been doing for years now and it’s something our industry would benefit from enormously, particularly as energy is, more than ever, under greater scrutiny and more pressure from all sides.

When I talk with senior industry figures about this digital journey, there is a real sense of the value and role of partnership relationships in this process, rather than just seeing businesses like Arnlea as mere suppliers.

We wish to be more widely recognised as the SaaS providers that we are. We want to be able to behave in this manner with all our customers, and this is part of our second and third steps forward. We believe, like them, that it makes for far more productive relationships.

Furthermore, it drives goodwill and a more open, productive collaboration, rather than the traditional dominant customer/subservient supplier approach to the supply chain that often still persists in our industry.

The global pandemic has also highlighted the benefits of an operational environment that is based in the cloud. The energy industry has effectively had its own pilot scheme in experiencing what it’s like to be tethered to an

office-based server, rather than the freedom, flexibility and financial benefits cloud-based software delivers. It’s rather a shame that we all had to endure something like this to see a physical demonstration of the benefits digital transformation brings, and it’s fair to say that many of the barriers to understanding those benefits are moving rather more quickly than they might otherwise have done.

We have customers embracing cloud-based SaaS provision, clearly understanding the value of controlling all their own data, directly connected with SAP or other systems. They have made the step-change forward and their mindset has also changed to consider that they do not have to have all their software physically on their own servers, nor do they need to conduct Ex inspections by hand using pen and paper, or by transferring the data into a complex but limited spreadsheet.

Many of our customers are still at Step One and will be for some time. Others, like Equinor and Total are pushing for more. Our business is leading the way in developing third step platforms and when the energy industry is ready to share data, we will already be there, with the platforms, security, and operational excellence they already experience. As we stand on the cusp of greater post-pandemic freedoms, it is my hope that our industry takes a brave step forward and fully champions digital transformation to garner all the 360-degree benefits it brings.

It is incumbent on Arnlea to make that transformation as seamless as possible, with technology that is leading-edge, with easy-tounderstand integration combined with customer service excellence. In other words, working with Arnlea will unite the IT architecture. And that’s a challenge we’re embracing.

Arnlea, the global leader in industrial mobile software for tracking, inspection & maintenance for the global Oil & Gas industry.

For more information visit www.arnlea.com

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B

eing on top of your assets allows organisations to prioritise repairs, maintenance and replacement schedules saving both time and money in the long run.

However, inspecting submerged infrastructure can be incredibly time-consuming, expensive and even dangerous. Underwater vehicles like Remotely Operated Vehicles (ROVs) and utility crawlers offer a convenient, cost-effective and safe solution for a variety of assets.

With submersible robotics operators can safely and regularly inspect from topside or shore at a moment’s notice. Spectis Robotics can supply innovative solutions to meet these challenges.

In this article, we discuss the benefits of Deep Trekker’s DTG3 and DT640 remote inspection vehicles, which can both be outfitted with a Cygnus Thickness Gauge.

What is the DTG3?

INSPECTING AND EVALUATING Underwater Assets Regular asset inspection is imperative for organisations to prioritise repairs, maintenance and replacement schedules, saving both time and money in the long run.

Deep Trekker’s world-class robots are used by thousands of customers around the globe; for structural inspections, marine surveys, sample collection, search and recovery, security checks and more. The DTG3 ROV allows for advanced power, heightened capabilities and high-end performance at a breakthrough price.

DT640 Crawler

What is the DT640?

The DT640 is a three-wheeled magnetic crawler with bespoke silicon and rubber wheel covers to aid traction and to avoid damaging the surface it is driven on. The magnets within the wheel hubs allow the vehicle to "stick" to a steel or ferrous surface, driving vertically or even upside down on the steel. The back pivot wheel is able to turn 360 degrees, allowing the vehicle to turn in one position with zero turning radius, making it extremely manoeuvrable.

Built with anodised aluminium and utilising our innovative magnetically coupled drive design, the crawler requires minimal ongoing maintenance.

Its rugged construction makes it suitable for the most difficult of tasks and environments.

Various payloads can be attached to the DT640, including sonar, HP cleaning tools and UT thickness meters.

Need to perform an inspection at a difficult to reach location along a steel surface like the hull of a ship or in a vertical shaft? Stick the DT640 Magnetic Crawler to the ferrous surface and drive along it instead of setting up scaffolding, fighting underwater currents or having to use man access in confined spaces. The DT640 MAG provides a safe and efficient alternative to ship hull and steel structure inspections. Its onboard HD camera and live-video feed provides operators with instant visual inspections in hard to reach and often impossible to access environments.

Even in rough conditions, the DTG3 provides stable, clear and crisp video. Operators can manipulate viewing by variable intensity main and auxiliary lighting for optimal inspections even in dark and low light environments. Direct sonar integration and an automated station holding capable of rotating 270 degrees allows the DTG3 to provide advanced stability.

The easy-to-use handheld controller, with 7” daylight readable screen, allows operators to get a clear underwater picture - even in sunny conditions. The DTG3 controller also gives users the flexibility to store data on either an SD card or USB memory stick, and video can be output via HDMI, or ethernet for external viewing on larger monitors.

With standard hybrid power, the DTG3 allows for more than 12 hours of battery operation.

Custom-built Pelican cases make travelling straightforward - users can wheel through an airport, train station or job site with ease.

The DTG3 Navigator Package adds a precision thruster and an advanced Ultra Short Base Line (USBL) acoustic positioning system to allow for position tracking, precise depth holding and manipulation capabilities.

What is the Cygnus Thickness Gauge?

Cygnus' industry-leading ultrasonic thickness gauge can be integrated onto Deep Trekker vehicles, allowing operators to evaluate the thickness of the steel on tanks, hulls or other metal surfaces without needing diver intervention or asset draining.

DT640 Utility Thickness Gauge

Placing the Ultrasonic Test (UT) probe on the surface provides an accurate measurement even through marine growth or coatings. The probe is able to take readings through up to 1/2" or 12mm of soft marine growth or coatings to take a reading of the steel. The data is then displayed and recorded via Cygnus software on a laptop.

This is a great tool for corrosion surveys for Underwater Inspections in Lieu of Dry-docking (UWILDs) on Floating Production Storage and Offloading (FPSO)s or vessels, as well as for steel tanks and pipes and other surfaces. Integrate the ultrasonic thickness gauge to understand the extent of corrosion at different spots along the hull or pipe as part of a proactive asset integrity maintenance plan.

DTG3 ROV with Cygnus Gauge

www.ogv.energy I June 2021

Isla Bella Vessel in Service

Remotely operated inspection vehicles can reduce inspection costs and risk to personnel.

For more information on Deep Trekker’s range of underwater inspection vehicles, please contact Spectis Robotics on 01224-701444 or info@spectisrobotics.com

ASSET INTEGRITY

CASE STUDY:

Achieving safety integrity assurance and performance excellence through a data-driven maintenance improvement project

A high performing plant is one that is safe, efficient, reliable, and profitable and there are many critical success factors that come into play when it comes to striving for excellence.

T

he philosophies cascading into the management systems and processes influences all 4 elements of what it takes to be a high performer. Without a meticulously designed and executed CMMS resulting from this, plants are subject to increased risk of equipment failure, loss of production, and excessive maintenance costs – which will directly impact the safety integrity and performance of the plant.

To truly optimise a plant’s maintenance and materials regime and unlock the associated benefits that come with it, it is key to build this regime using reliable, structured, and quality master data. Realising the need to have this in place, Add Energy were contracted by an international energy company to deliver a global maintenance optimisation project where we were tasked with enriching the CMMS data and optimising the maintenance management regime, and associated spare parts in excess of 1.3 million equipment tags.

The challenge To assure the right level of preventative and predictive maintenance and inspection, on the right equipment, was being done with the right materials, at the right time – no more, no less.

Achieved through:

What we did

The results

The Add Energy team was contracted to deliver the review, enrichment, and optimisation of their global approach to maintenance and integrity management. This included:

Having complete visibility of their equipment, and how important it is, has been instrumental in building the foundations for achieving maintenance excellence. The company now has confidence that they are maintaining equipment at an optimum level and ensuring the risk profiles are still being managed.

• Equipment identification: to ensure all equipment that requires maintenance was in the CMMS, by establishing and implementing the data standard • Equipment classification and criticality: to ascertain how critical the equipment’s function is to the asset’s production and safety integrity, to determine the optimal maintenance requirements • Equipment strategies: utilising an FMECA based approach and discovering existing pockets of maintenance excellence to apply learnings across assets, ensuring the optimum level of maintenance is assigned to equipment whether that be assurance, preventative, predictive, or contingency • Equipment task lists: providing high-quality task lists, and a consistent approach to how maintenance is performed by the maintenance team • Equipment materials: populating the CMMS with the correct BoMs to ensure the right spares parts are identified to execute the maintenance with consumable and contingency spares • CMMS implementation: Hassel free CMMS upload templates adhering to the change management process

Plant reliability and safety integrity of their facilities are of the most noticeable outputs of this project; not only are they setting record reliability statistics, but they are achieving this with optimised levels of maintenance, done at the right time, in a globally consistent manner.

As a by-product to the safety integrity and reliability benefits, this client also benefited from some significant cost savings, including: • Savings of over $7M per year through the cleansing and net removal of 210,000 tags in CMMS that were duplicates or decommissioned equipment, additional critical tags were also added • Savings of over $18.5M per year by rationalising 170,000 annual planned maintenance hours • Savings of $7M per year through optimisation of annual planned maintenance work orders • Savings of $14M on planning and efficiencies gains through enrichment of 147,000 Maintenance BoMs

• Having the means to operate safely, by having complete visibility of what equipment they have, how its classified and risk ranked, how and when it should be maintained, and the materials that are required to do this • Applying best-in-class maintenance strategies at an optimum frequency to mitigate failure, reduce risk and optimise cost • Consolidating the client’s approach to maintenance and integrity management by migrating into one standardised global CMMS solution

Add Energy offers consultancy solutions and specialised engineering services that enable operations to be safe, compliant and efficient.

For more information visit www.addenergy.no

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GREEN ENERGY

THE ROAD TO A SUSTAINABLE FUTURE

PAVED WITH GREEN HYDROGEN? Matthew Knight, Head of Market Development at Siemens Energy

Noise across the energy sector is growing with regards to hydrogen – particularly ‘green’ hydrogen. It is an, as yet, widely untapped market that seems to provide enormous potential for the global journey to net-zero. But how do we get there and what role might green hydrogen have to play?

Matthew Knight is one of several individuals and companies keen to help shape the future of hydrogen in the UK and abroad. He is the Head of Market Development at Siemens Energy – a new enterprise that spun out from Siemens AG last year – and he is tasked with supporting the company’s energy transition.

He has more than 30 years’ experience in the energy market, having been involved with electricity grid projects, the establishment of offshore wind farms and, more recently, he has been focused on developing the potential of green (and blue) hydrogen. He is also on the Government’s Carbon Capture and Storage Taskforce and Hydrogen Expert Group, engaging with Government as an industry representative to help shape sector regulations and support.

Matthew is passionate about the need for eminent and significant development of the industry, dramatically increasing production capacity and doing so relatively quickly. He says: “Hydrogen is only worth doing if done at scale. We don’t have time to mess around with something that won’t make a tangible

www.ogv.energy I June 2021

contribution to saving the planet. It will take 30 years to deploy hydrogen at the scale needed to replace the fossil fuel system, so we need to start making real progress now.

“Our current electrolysers use 17.5MW of electricity to make eight tonnes of hydrogen per day, but we need to be working towards 50MW in the next two to three years and 100MW in the next five. This would help the industry fulfil its green promises and would need to be followed by consistent deployment of gigawatts in the UK each year throughout the next two decades to play its part in delivering net-zero by 2050.

“We are going to need a lot of hydrogen.

Siemens Energy is currently building Europe’s most efficient natural gas fuel power station with SSE Thermal at Keadby in Lincolnshire, which could well be the last new natural gas station built in Britain. To run this on green hydrogen would require 55 tones every hour, which equates to 120 tube trailer loads an hour. Of course, a pipeline supply would be more practical, but this highlights the importance of adapting systems to cater for future needs.

“We are also developing the capability of our gas turbines to run on hydrogen. Consider the HYFLEXPOWER project, which uses one of the engines we build in Lincoln. As the world’s first integrated power-to-X-to-power hydrogen gas turbine demonstrator, it will run on 100%

hydrogen by 2023 – this is the very cuttingedge of the industry. I hope many more world firsts will happen in UK within our industrial clusters as we create and develop a new industry to decarbonise our planet.”

As is true in most walks of life, cost is a challenge in the upscaling of green hydrogen, as Matthew goes on to explain: “The goal is to reach green hydrogen production costs that rival natural gas. Right now, we can produce green hydrogen for around £5 per kilogram – we need to halve this by 2030. As the cost of green hydrogen comes down, new opportunities for largescale projects will open up.”

From a technology provider perspective, a massive increase in production capacity for electrolysers is needed, which is already being prepared for. The combination of hydrogen production capacity and costs has created what Matthew calls the “hydrogen conundrum”.

“The hydrogen economy is great once everything is set-up and running,” he says.

“However, there are two challenges to overcome first. One – no one wants to supply hydrogen until there’s a market for it, but no one can buy technology powered by hydrogen until there is a supply. Two – we know that the more projects we do, the more we learn,

GREEN ENERGY the better our electrolysers will get and the cheaper the entire process becomes. Going first comes with risks of being undercut by later projects, but if no one goes first, no one will learn. Cost and operational efficiencies are only developed over time and with experience, so business models must overcome both parts of the conundrum.

“There are some market niches where resistance to hydrogen is lowest. For instance, the value of energy is high in transport as we are used to paying duty on-road fuel. Hydrogen can, therefore, be cost-competitive in the right conditions, especially where zero-emission zones or premiums for high carbon emissions exist. Other sectors expressing a growing interest in green hydrogen include distilleries and breweries, the food and beverage industry, and leisure and tourism.”

The Port of Cromarty Firth recently announced plans for a green hydrogen hub for Scotland’s famous distilleries, supporting their targets for decarbonisation. For food and drink, there is a growing market for greener products, as driven by public demand. Similar circumstances could also increase the need for greater sustainability with regards to travel and leisure activities, further expanding the potential market for green hydrogen.

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investor interest in the sector and ensure that the supply chain is located in areas of greatest demand. Government funding of early 10-30MW scale projects could also provide the initial kickstart that the industry needs to flourish. As any new industry is established, success is not achieved by companies and individuals working in complete isolation. Co-creation between end-customer and supply chain is critical for significant and sustained growth.”

The importance of early projects cannot be overestimated.

Matthew believes in leading by example and, as such, has been personally involved with innovative projects that created world-firsts of their own. Just earlier this year, a GeoPura green hydrogen fuel cell unit powered a 100% emissionfree, live BBC Winterwatch outside broadcast. This uncovered a new demand for clean, off-grid energy, which the company is now developing The time is right and offering solutions for in collaboration with for green hydrogen.

Siemens Energy. One is focused on overcome Countries and grid constraints for car park owners and businesses are looking operators by using green hydrogen to power charging stations for electric vehicles. to get involved and www.geopura.com

money is available for investment in good projects.

Collaboration will be crucial across all relevant sectors for the successful and significant growth of green hydrogen. The Government’s hydrogen strategy, expected later this year, may prove pivotal, offering not just public investment in the sector, but also greater visibility to projects.

In another ‘first’, Siemens Energy showcased the possibility of using ammonia as a hydrogen carrier for easier transport and storage by building a demonstration plant in Oxfordshire. The concept is now being explored around the globe, with huge plans announced for green hydrogen and ammonia plants in Saudi Arabia. In April, Uniper also announced plans to build an ammonia import and cracking facility, which will deliver clean hydrogen in Germany.

Matthew comments:

Matthew concludes:

“We need the Government to help create the market for green hydrogen. Private capital can do a lot, allowing continual investment and boosting competition. The UK Government is working on a market support mechanism that would support the faster growth needed to unlock significant project activity in the UK.

“Hydrogen is the future. Siemens Energy is all about the energy transition and, though hydrogen is just one element, it is an important one. Our purpose as an energy technology company is to energise society and support customers with their energy transition to a more sustainable future.

“There is a substantial contrast in the UK’s market approach compared to most other European countries, where projects are largely funded by Government grants. The competitive nature here creates an envelope of secrecy that makes it difficult to assess the market as a whole. Indeed, during recent Government market research, they were pleasantly surprised to be informed of more than 90 projects currently being developed in Britain. More visibility could encourage greater public and

“The time is right for green hydrogen. Countries and businesses are looking to get involved and money is available for investment in good projects. When a viable business model emerges and this investment is released, hydrogen will become unstoppable.

It is critical that the UK takes advantage of the small window of opportunity we have to get to the front of the race for upscaling capacity and driving down costs if we are to benefit from the full potential available.”

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INNOVATION & TECHNOLOGY

DIGITISING ASSET INTEGRITY LIFECYCLE Reshaping the oil industry

OMNI Integrity Established in 2020, OMNI Integrity, a subsidiary company of ICR Group, is a new digital full lifecycle asset integrity management solution developed by industry experts, that allows companies to manage, predict, plan and optimise their asset integrity management programmes. OMNI is built on the combined knowledge of integrity engineers, software developers, and data scientists, and years of cross-industry experience.

OMNI’s software has been developed by industry and integrity experts and encompasses the entire integrity lifecycle from risk-based inspection (RBI) through to repair and inherently boasts features such as automation, tracking, collaboration and communication to help build cohesion across various assets and throughout entire organisations.

Company Details Website: www.omni-integrity.com Email: info@omni-integrity.com Tel: +44 (0) 1224 822822 Address: ONE Tech Hub Schoolhill AB10 1JQ, Aberdeen Scotland, UK

OMNI’s software has been designed to cover the full integrity lifecycle, which is made up of a suite of asset integrity modules, including Risk Based Inspection (RBI), Anomaly and Repair, Workpack, and Inspection. Through its efficient client onboarding and configuration process, OMNI has made it easier than ever before to implement a full lifecycle software solution into any organisation. Whether it is migrating from an existing software or database system, or implementing for the first time, OMNI has developed a data migration process using data mining algorithms that are proprietary to OMNI. Acting as “more than an integrity software”, OMNI has designed innovative features such as automation, operational tracking and a communications hub for digital collaboration and drives efficiencies and open up integrity management to the wider organisation. OMNI is fully interfaced with digital tools such as tablet technology for inspection reporting, corrosion sensor connection and QR tagging with the aim is to empower the workforce to continually drive efficiencies.

OMNI is working in partnership with the University of Strathclyde through the Knowledge Transfer Partnership (KTP), and funded by Innovate UK, to develop predictive algorithms and prognostics health management capability to be integrated into the software.

The OMNI software has been built on expertise gained in the field, with Insiso - the software developer - who have vast experience in AI and IoT (Internet of Things), together with data scientists and a Silicon Valley expert to hone a next-generation User Experience (UX) and User Interface (UI). That combined knowledge has been converted into a useful solution for operators, allowing them to extend the life of their assets and plan better in a simple to use system providing resilience, speed and accuracy.

Businesses often have decades of historical data which can be cumbersome to manage.

OMNI aims to accelerate the shift to digital asset integrity by incorporating the latest advancements in technology and delivering simple but powerful solutions. Additionally, OMNI can help organisations futureproof their business by continuing to innovate and develop its software products with machine learning, predictive analytics and sensor connections, ensuring that clients always remain ahead of the curve when it comes to digital asset integrity management.

OMNI is a cross-industry solution, part of ICR Integrity - a leading provider of integrated maintenance, repair and production solutions for industrial related services to the oil and gas, chemical, nuclear, marine and defence industry.

OMNI will leverage ICR’s global network, which includes its Aberdeen headquarters and operational hubs in the UK, UAE, USA, Norway and a JV partner in Australia.

Technology Development stage: Commercial Launch date: November 2020

INNOVATION &

TECHNOLOGY

IN ENERGY ANNUAL

202 1 www.ogv.energy I June 2021

VIEW THE FULL TECH ANNUAL MAGAZINE ONLINE AT

www.ogv.energy

INNOVATION & TECHNOLOGY

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ADAPTING TO THE FAST-CHANGING WORKFORCE The importance of innovation in the training industry

By Gavin Taylor, VP Global Sales and Strategy, 3t Energy Group

Despite e-learning being a mainstay of training delivery for a number of years, there has been a recent - and significant - shift towards more self-initiated and instant access content via mobile devices and smartphones. With the global pandemic accelerating the adoption of technology, both the training providers and the workforce have had to adapt to this new environment to ensure continued skills development and compliance with industry standards. As delegates lean towards digitised training offers, training providers have to be increasingly innovative in their thought process to accelerate product development by working with industry stakeholders and accrediting bodies, in order to accept and adapt to the new ways of learning.

Transforming training Simulation and VR have been scientifically proven to significantly aid knowledge retention when compared to classroom delivery results. With its more immersive and engaging nature, and the quality of learning and improved knowledge retention, this technology is helping to create a safer, smarter and more efficient workforce.

The way delegates want to consume their learning is constantly evolving and the rapid advancement of technology has allowed for a greater use of blended learning solutions, including Virtual Reality (VR), Augmented Reality (AR) and gamification.

The complementary nature of traditional and digital training methods through a mixed approach has never been more accessible. This blended approach enhances the user experience by increasing engagement and retention, and the accessibility of technology via cloud-based solutions not only simplifies access to content to a huge extent but also helps to reduce delivery costs.

However, despite the advances in technology and their additional benefits, the training industry does still require a blended approach. This allows learners to deal with real-life “live” scenarios and receive in-person evaluation. That’s why 3t offers a wider range of training solutions across our three main pillars - traditional training delivery, digital technology solutions and simulation. Our centres can accommodate the whole range of training needs, from market-leading classroom-based learning and innovative training grounds to virtual training, eLearning, video learning, VR, AR and R3 - our mobile knowledge retention tool. We also offer simulation capability for Crane Operations, Drilling and Well Control – available via either full-size assets or cloud-based solutions. Our learning delivery capability is underpinned by 3t’s market-leading workforce management solutions, including Training Management System (TMS), as well as competency management and learning management platforms.

The significance of innovation

The future outlook

Change is a constant in the training sector and innovation is the key to staying at the forefront of learning delivery. 3t Energy Group’s very essence is about Transforming Training with Technology. We really embraced the opportunity to be creative in catering to our clients’ complex needs, by providing holistic services and technologies that all work together as one harmonious eco-system.

Undoubtedly, there will always be a place for practical training delivery within the energy industry, but in order to cater to the modern, changing workforce, different learning methodologies and technologies must be incorporated, as virtual learning is definitely here to stay, forming a vital part of our delivery capability.

In being highly committed to continuously advancing our technology, and quickly adapting to the new pandemic-driven reality, we ensured that we continued supporting our clients by bringing training into their homes. In addition to supporting our key stakeholders during the challenging times by supplementing the academic education of their learners in colleges and apprenticeships programmes, we also developed video-learning programmes, with a focus on improving our virtual learning and cloud-based solutions, allowing delegates to have the training at the tips of their fingers, regardless of their location.

INNOVATION ZONE SPONSORED BY

"We are the UK's largest specialist R&D Tax and Innovation Funding consultancy. We have helped our clients successfully claim more than £880m in tax relief"

www.leyton.com

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Sponsored by

CONTRACT AWARDS Infinity Partnership: Your Partner in Business Infinity Partnership, a five-time winner at the British Accountancy Awards, provides accountancy advice and strategic business advisory services to clients in the northeast of Scotland, in the UK and internationally.

The Aberdeen firm is a proactive organisation that embraces the latest technology to ensure clients have the best financial and operational processes in place – positioning them to make informed decisions that are critical for business growth.

www.infinity-partnership.com Infinity is a recognised expert in research and development tax claims, with more than £100m secured in the past four years for clients – many of them directly connected to the energy sector.

Its client base ranges from small firms and startups to large firms and work with PLCs. Infinity acts as an outsourced financial manager for many clients or sets up financial systems to allow in-house teams to function fully, therefore reducing time and costs. The firm has a strong understanding of SAGE, IRIS, AutoEntry and other software solutions.

Led by Managing Partner Simon Cowie, Infinity is also an expert in mergers & acquisitions (M&A) and investment activities, having been involved in more than 100 transactions with a combined value of over £250m. One of its key strengths lies in sourcing finance for innovative companies looking to expand.

Innovative Infinity set up a Covid-19 hub when it realised existing and new clients required greater support. It further assisted clients during this challenging period by not charging for furlough, loan and grant applications work.

The practice is a member of ICAS (Institute of Chartered Accountants of Scotland) and ACCA (Association of Chartered Certified Accountants). It has attained ACCA Trainee Development Platinum status and is formally an ACCA Approved Employer across both Practicing Certificate Development and Professional Development.

Infinity Partnership Associate Director Greg Houston is chair of the ACCA Northeast of Scotland Network and is also on the ACCA Scotland committee. The firm, based in Carden Place, has a team of 25.

Simon said: “The role of the accountant is constantly evolving because of factors ranging from technological developments to a growing need for professional advisory services that support client sustainability. We see ourselves as much more than an accountant – we are a partner in business with our clients.

“We are open and transparent about our costs and are always ready to engage with companies to discuss how we can help them achieve their objectives.”

Simon Cowie, Manageing Director, Infinity Partnership

Saipem wins two onshore drilling contracts in Saudi Saipem, an Italian multinational oilfield services company, has been awarded the extension of two important contracts for onshore drilling activities in Saudi Arabia for a duration of five and 10 years, respectively.

With these acquisitions, Saipem consolidates its long-standing and solid relationships with some of its main customers, a Saipem statement said.

The company also received a new contract in Colombia for a duration of four years. The total of orders acquired by the onshore drilling division since the beginning of 2021 thus exceeds $250 million.

These extensions of existing contracts are a positive sign of a gradual resumption of activities following the Covid-19 pandemic, it added.

Bilfinger awarded €40 million inspection contract by Total E&P Denmark Commencing in July 2021, the contract will run for five years with 2x1-year extension options. With a focus on advanced nondestructive testing (ANDT) techniques, Bilfinger will provide a comprehensive range of services on all of Total E&P Denmark’s assets.

The contract will be managed from Bilfinger’s office in Esbjerg, Denmark.

“With this major contract from Total, Bilfinger continues on its growth path in the strategic business area of inspection services,” says Duncan Hall, Chief Operating Officer of Bilfinger.

Bilfinger will perform inspection services on the offshore assets of Total E&P Denmark (Exploration & Production). The €40 million contract will be booked under Bilfinger’s Engineering & Maintenance Europe segment.

www.ogv.energy I June 2021

“Our skilled team contributes to ensuring the integrity of Total E&P Denmark’s assets. The award follows two recent contract successes in Denmark, making Bilfinger one of the largest local providers of offshore non-destructive

testing inspection services just three years after the set-up of our local branch.”

In March 2021, Bilfinger Salamis UK was awarded a multi-million pound inspection contract by Altera Infrastructure Production AS. The three-year agreement sees Bilfinger extend its existing service delivery with Altera Infrastructure, providing a range of conventional and advanced non-destructive testing (ANDT) services on assets operated by Altera in the UK. Recently, Bilfinger has also won a five-year inspection contract for Corrosion under Insulation (CUI) at a major chemical plant in the Netherlands. By replacing insulation where needed, Bilfinger will also contribute to increasing the energy efficiency of the customer’s assets.

CONTRACT AWARDS

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Aberdeen based oil safety company renews a three year deal with Shell An Aberdeen based oil safety manufacturer has renewed its global partnership with Shell for a further three years to help promote goal zero.

Safety equipment company, Dräger Marine and Offshore, a division of the Draegar group who is worth a whopping €3.5bn (£3.09bn) , have been based in Aberdeen since 2010.

The company have re-entered its partnership with Shell to facilitate goal zero which aims to prevent leaks or harm in Shell operations.

The three-year agreement includes the provision of portable gas detection equipment and a variety of safety technology for Shell’s offshore plants and global operations.

Paul Davidson account manager at Draegar Marine and Offshore said: “We are delighted to welcome this new framework agreement with Shell and look forward to further supporting its operations both in the North of Scotland and wider UK. “Shell’s approach to safety is market-leading and we are delighted to be able to play a part in its drive towards Goal Zero ambition to achieve no harm and no leaks across all of its operations.”

As part of the deal, emerging products from Draegar will be tested out as prototypes at Shell before they are sent out to the market.

The agreement also includes purchase and rental options which follow the launch of Draegar Hire – the company’s new £2M UK rental division established in Aberdeen this year.

Chrystal Landgraf, regional HSSE manager at Shell said: “In Draegar, we have found a contract partner with whom we can work globally driving our efficiency and safety and

further contributing to our overall objective of Goal Zero.

“Our ambition is to achieve no harm and no leaks across all of our operations.

“Everyone working for Shell strives to achieve this goal each day. We want to help improve safety performances throughout the energy industry.”

The company hope the agreement will expand to further work at Shell’s operations in the North Sea and the wider UK.

Petrofac secures contract for bp project in Mauritania and Senegal Petrofac secured a contract with bp to develop operational procedures for their Greater Tortue Ahmeyim (GTA) Project in Mauritania and Senegal.

operating safely and responsibly, in their delivery of the GTA Phase 1 Project, which is creating a new LNG hub in Africa,” said Steve Webber, SVP Operations.

Centered on minimising risk and harm to personnel, plant and the environment, the procedures will encompass all offshore operations, including subsea, floating production storage and offloading (FPSO) and hub.

The Tortue/Ahmeyim gas field, with estimated resources of 15 trillion cubic feet of gas, is located offshore on the border between Mauritania and Senegal. The integrated gas value chain and near-shore LNG development will export LNG to global markets as well as supplying gas to Senegal and Mauritania.

“Bp is an important longstanding client and we look forward to supporting them in

Maersk Drilling awarded one-well UK contract by INEOS Maersk Drilling has secured a contract from INEOS Oil & Gas UK to employ the harshenvironment jack-up rig Maersk Resolve for drilling and hydraulic stimulation at the Breagh Alpha A11 well in block 42/13 of the UK North Sea. The contract is expected to commence in Q3 2021, in direct continuation of the rig’s current work scope, with an estimated duration of 140 days. The contract value is approximately USD 11.3m. The contract includes four additional one-well options.

“We’re delighted to be able to firm up Maersk Resolve’s drilling programme for 2021 with

this contract, which will see the rig take on its third campaign in a row involving drilling of the challenging Zechstein formations you encounter in this part of the North Sea. We’re confident that Maersk Resolve’s highly capable crew will be able to leverage best practice from the previous campaigns in a safe and efficient operation for INEOS,” says COO Morten Kelstrup of Maersk Drilling.

Maersk Resolve is a 350ft, Gustoengineered MSC CJ50 high-efficiency jack-up rig which was delivered in 2009. It is currently operating for Spirit Energy in the UK sector of the North Sea.

CONTRACT AWARDS SPONSORED BY

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CONTRACT AWARDS Subsea 7 awarded contract offshore Brazil

Subsea 7 announced the award of a very large(1) contract by Petrobras for the development of the Mero-3 field located approximately 200 kilometres off the coast of the state of Rio de Janeiro, Brazil, at 2,200 metres water depth in the pre-salt Santos basin.

The contract scope includes engineering, fabrication, installation and precommissioning of 80 kilometres of rigid risers and flowlines for the steel lazy wave production system, 60 kilometres of flexible service lines, 50 kilometres of umbilicals and associated infrastructure, as well as installation of FPSO mooring lines and hook-up.

Project management and engineering will commence immediately at Subsea 7’s offices in Rio de Janeiro and Paris.

Fabrication of the pipelines will take place at Subsea 7’s spoolbase at Ubu in the state of Vitória and offshore operations are scheduled to be executed in 2023 and 2024, using Subsea 7’s fleet of reeled rigid pipelay vessels.

Marcelo Xavier, Vice-President Brazil said: “This contract builds on our strong, collaborative relationship with Petrobras and track record of executing major EPCI projects globally. Subsea 7 looks forward to working closely with Petrobras to successfully deliver the project.”

www.ogv.energy I June 2021

CONTRACT AWARDS

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CONTRACT AWARDS SPONSORED BY

"Infinity Partnership is an awardwinning, multi-disciplinary accountancy and business advisory practice, with a proactive approach to customer service."

www.infinity-partnership.com

Sponsored by

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www.ducatuspartners.com hydrocarbon reserves, with the industry dominating the economic stability of Gulf countries. The move towards cleaner energy may be seen as a threat to the Middle East’s historic status of fossil fuel titan, however embracing and advancing this change instead brings the promise of stability and potential.

ON THE MOVE The sustainability of the world’s energy market is of critical importance and the agenda to reduce the carbon footprint of the current and future supply has reached a critical infliction point.

The Middle East has long occupied a central position as a top oil producer globally, but equally so as a contributor to greenhouse gases. The onus to limit environmental impact is now being felt universally, but this transition is arguably more profound to the region given it is home to the world’s largest

Samuel Leupold

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Schlumberger Names New Appointments to Energy Transition Business

Schlumberger has announced that Samuel Leupold has been appointed to the board of directors and sits on the finance and new energy and innovation committees.

He is currently the Chairman of Wind Energy at Green Investment Group, owned by Macquarie Group and was previously the Chief Executive Officer of Orsted Wind Power where under his tenure, Orsted delivered the industry’s first zero subsidy offshore wind farm bids a groundbreaking German auction.

Prior to this, Samuel held roles at ABB and McKinsey & Company where he specialised in utilities and industrials.

www.ogv.energy I June 2021

The active pursuit of sustainable development by governments and monarchies across the Middle East has set a clear directive from the top down of the intent to continue to assume a leading role in fueling the planet. Propelling this strategy are the initiatives mandated by state heads such as Saudi Arabia’s 2030 vision, which has ignited the charge to enhance competitiveness by positioning the country as a key player in renewables and alternative energy to diversity revenue streams, as well as nurturing innovation in established operations to prolong Saudi’s eminence as an oil and gas powerhouse.

Whilst the prevalence of renewables is relatively minimal at present, this share is anticipated to surge in the coming decades. The Middle East’s contribution to the global clean power mix is estimated to rise from just over 3% to 29% by 2035 and is pitched to be a $341 billion opportunity for companies supporting this growth over the next five years. For traditional energy sources, the region already boasts some of the most economic extraction costs thanks to conventional high quality reserves and an established infrastructure network, providing resilience to a lower-for-longer oil price, as well as benefiting from a baseline position of a low carbon intensity measure, creating a more minimal environmental impact relative to the that of heavy crude plays.

Shaping the evolving energy mix requires participants to embrace innovation and demonstrate

Fraser Moonie

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John Allan

Decom North Sea Makes Key Appointments

Decom North Sea has announced the appointment of a new Chief Executive and named a further addition to the board of directors.

Fraser Moonie joins as Chief Executive Officer, bringing over 25 years’ experience to the role including 15 years with Bibby Offshore where he previously served as Chief Operating Officer.

Fraser has worked on some of the sector’s highest profile North Sea decommissioning campaigns, as well as holding international experience in the Gulf of Mexico. John Allan, Decommissioning Director at EnQuest, has been named as a Board Advisor. John’s current role at EnQuest was preceded by 15 years with CNRI. with the majority of that period spent manageing global development and decommissioning projects.

resilience to the possibilities and challenges this new horizon brings. This has already put a frenetic period of activity in motion, which will continue to call for collaboration transcending sectors and borders by organisations across every facet of the value chain; from investing in cross-system energy storage solutions, scaling carbon capture initiatives and advancing commercialisation, leverageing artificial intelligence to inform power intermittency, exploring hydrogen fuel cell technology viability all the way through to engineering specialised maintenance tools for solar panels and providing consulting services to support heightened deal activity. Companies of all sizes and specialisms will have ample opportunity to play their part in setting the benchmark in renewable project execution and in achieving new breakthroughs in optimising the efficiency of traditional oil assets.

Across all components and as a whole, the pace of development required to achieve ambitious climate goals whilst also continuing to fulfil the critical responsibility of meeting the world’s ever growing energy demand, will make the Middle East a particularly interesting region to follow. The Ducatus Partners team is delighted to announce the establishment of our new office in Dubai, which will act as a strategic anchor in providing on the ground support to our existing clients during this time, as well as expanding our search and consulting capability in the region in order to align human capital strategies to the evolving energy mix.

By Sean Buchan

Manageing Partner - EMEA at Ducatus Partners

Osayande Igiehon

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Elumelu’s Heirs Oil & Gas Announces Key Appointments

Heirs Oil & Gas, a leading African integrated energy company, has announced the appointment of Osayande Igiehon as Chief Executive Officer and has named a non-executive board with considerable global and regional experience. Osayande joins from Shell where he was previously a Vice President with the group in the Netherlands. He brings over twenty-seven years of experience in the oil and gas sector with the business, where he held a series of senior management positions including serving as Chairman and Chief Executive Officer of Shell Gabon, where he led the successful turnaround of the operational, safety and financial performance.

Heirs has also appointed four industry leaders to its board. Joining as Non-Executive Directors are Sally Udoma, Anil Dua, Ahmadu Kida Musa and Stanley Lawson.

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KPMG Appoints Transaction Services Director

KPMG has appointed Rob Aitken as a Director in the transaction services team to support a pickup in deal activity fueled by ongoing trends such as digital transformation and the energy transition.

Rob joins PwC and spent almost 20 years with the firm, most recently serving as Senior Manager Transaction Services and previously in a number of senior assurance and audit positions.

Paul McDade, Anastasia Deulina, Ian Cloke

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Afentra Launches and Makes Executive Team Appointment

Afentra, the upstream operator focused on opportunities in Africa, has been launched with a mandate to look at opportunities to invest in the energy transition in Africa. Spearheaded by former Tullow Oil executive Paul McDade, the foundations have been laid with the development of a corporate strategy and appointment of to deliver against this new vision. Anastasia Deulina has been appointed as Chief Financial Officer and also joins from Tullow Oil where she was Group Head of Strategy, Planning and M&A. She brings over 20 years’ experience working in the energy sector within global investment banks, private equity and corporates.

Ducatus Partners Announces Establishment of Middle East Office and Makes Key Partner Appointment Ducatus Partners, the international executive search and leadership advisory firm, is proud to announce the opening of its new office in Dubai, United Arab Emirates, and the appointment of Abid Mirranay as Partner.

Ducatus Partners is expanding its global footprint with a physical presence in the Middle East to strengthen the firm’s capability in region and build on its well-established track record of over 500 successful mandates with energy, infrastructure and private equity clients across Oman, Saudi Arabia, Qatar, the United Arab Emirates and Kuwait.

Establishing this base also comes in response to rapidly growing demand from clients across the Gulf region for support in delivering their energy transition objectives from a human capital perspective.

Ducatus Partners’ Manageing Director, Kevin Davidson, commented on the move: “I am thrilled to establish our Dubai office, which will serve as a strategic anchor for our business in the Middle East, and to welcome Abid to the team. He brings considerable experience which will further enhance our capability across the region.

Collaborating with our established teams in Houston, London and Aberdeen, the Dubai office will enable us to deepen our regional knowledge and broaden our reach to the material benefit of our global client base.”

Newly appointed Partner Abid Mirranay will lead business development efforts in the region, as well as supporting Ducatus Partners’ existing base of clients in the Gulf. Abid has worked in Dubai for eight years and joins Ducatus Partners from Page Executive where he most recently held the role of Principal and focused on supporting Middle Eastern clients on key leadership appointments. Prior to this, he was based in Victoria as Senior Manager for the group’s Australian business.

This move follows the expectation that renewable capacity in the region will grow

Paul Danos

6

National Ocean Industries Association Makes Vice Chair Appointment

The National Ocean Industries Association, the industry body representing member companies across the offshore oil and renewable wind sector, has appointed Paul Danos as Vice Chairman of the board of directors. He will be working alongside Chairman Tim Duncan, current Chief Executive Officer Talos Energy.

Paul is presently the Owner and Chief Executive Officer of oilfield services company Danos and has held a number of regional and project leadership positions with the business. Prior to joining Danos, Paul was a Senior Consultant for special projects at Plains All American and a Senior Risk Consultant at Arthur Andersen.

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7

ArianeLogix Names Industry Experts as Advisors

ArianeLogiX, the energy asset evaluation business, has appointed Ian Bryant and Tom Levy as Advisors to the company.

Abid Mirranay

by a factor of 18 by 2025, with anticipated investment of over $180 billion. Ducatus Partners has been working with companies across the value chain to align talent to this evolving energy mix.

Sean Buchan, Manageing Partner, explains: “The assignments we have recently executed in the Middle East have largely been centered around supporting our clients’ clean energy strategy, both in the near term with several executive and board placements bringing strong renewables experience, and in the longer term, with market mapping mandates aiding companies’ decision making capability in terms of investment focus in emerging technologies and succession planning for upcoming projects.”

The Dubai operation will continue to provide search and consulting services to the traditional energy industry: “More than ever, we have found that our oil and gas clients in the Gulf value a highly bespoke and meticulous approach to execution. Progressing diversity within our clients’ organisations has been a growing focus for us in the Middle East, as well as catering to an increased demand for coverage of synergistic industries to secure executives with a forward-thinking approach to digitalisation.”

On joining Ducatus Partners, Abid comments: “Ducatus Partners has built a strong reputation in the Middle East and I am excited to be joining the business at a time of rapid development for the region, in particular Saudi Arabia and vision 2030. I look forward to providing on-the-ground capability to both current and future clients and expanding our track record across government, infrastructure and energy markets in the Gulf Region.” and brings considerable expertise in geoscience. He spent a number of years with Schlumberger in senior exploration roles and was previously with Exxon for over 27 years in various technical and managerial jobs in exploration, development and production.

Ian was previously the Chief Executive Officer of Packers Plus Energy Services and prior to this, spent over 22 years with Schlumberger holding senior roles including as Vice President Technology for the information solutions group. He began his career with Shell where he worked as a geologist based in The Netherlands and New Zealand.

Tom has over 40 years of industry experience

Tom Levy

Ian Bryant

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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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Rystad Analytics Offshore Rig Market Analysis

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Database version: Rystad Energy Databases June 2021 (May 2021 Review)

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Offshore Rig Market Analysis Global overview of current status

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STATS & ANALYTICS

Conducted by Craig Jamieson and Oddmund Føre @ Rystad Energy

Database version: Rystad Energy Databases June 2021 (May 2021 Review)

Offshore Rig Market Analysis Utilisation

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Date generated 23 June 2021

UKCS Status Report

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THOUGHT LEADERSHIP

READY AND WILLING How Scotland’s offshore supply chain can win from the energy transition

There are two golden rules of industry transformation: change is inevitable, and many people resist change.

However, after a year in which all norms have been turned on their heads, there is no doubting that the North Sea energy supply chain has a genuine desire and motivation to embrace both net-zero carbon and the broader energy transition.

The societal benefits are understood and very well supported. The transition also provides a second growth horizon. We are prepared to learn and grow as we have done in oil and gas over the last half century. As co-chair of the Oil and Gas Authority’s Supply Chain and Exports Taskforce, and as a part of the Strategic Leadership Group for the Energy Transition, my strategic focus, along with my colleagues, is clear: to ensure that the UKCS supply chain realises its full potential in contributing to the world’s first integrated net-zero Ensuring energy system in the North Sea.

For Petrofac, in the UK we have committed to achieving Net-zero by 2025. Our strategy is threefold: reduce emissions; transform and maximise energy efficiency by adopting new technologies; and actively support our stakeholders in their net-zero journeys.

We’re also actively supporting our clients to transition to new energy economies. The relevance and transferability of our expertise is well demonstrated on the Acorn Project – Scotland’s ambitious CCS and hydrogen programmes – where we are supporting the project team to establish the same best-practice project management and reporting tools that would be deployed on any major CAPEX project.

Ensuring that the UK is viewed as a good place for energy companies to anchor their resources will be key to the sector’s long-term success. It may have become fashionable for the UK supply chain to talk about avoiding the mistakes made in the wind space, but it’s also true. The UK has created the world’s most active offshore wind market and installed the most capacity globally, but it has lacked in the infrastructure and cost competitiveness required to secure the CAPEX opportunity. Learning from those lessons, the Government is actively driving an initiative to develop the HCCUS supply chain in the UK and realise its export potential. We must take a proactive approach to plan what we need, develop a that the UK globally competitive proposition, and anchor key capability to the UK.

is viewed as a good

place for energy The single biggest confirmation of the scale that transition offers, companies to anchor was articulated in the North their resources will Sea Transition Deal. Announced be key to the sector’s in late March, it aims to deliver between £14-16 billion of activity long-term success in decarbonisation, hydrogen and CCUS. The commitment to the supply chain includes voluntary UK content of 50% in new transition projects (and new decommissioning projects) as well as a 30% UK content commitment for technology spend. This deal really is a big deal.

We all know, however, that even the best plans and frameworks are only the starting point, and we all have to pull together to bring the potential to life.

For the supply chain, it’s about developing the right technical standards, taking what we have learned in oil and gas and overlaying that with quality and safety standards appropriate for renewable and low carbon projects. The industry’s technical expertise will of course be critical to the transition.

www.ogv.energy I June 2021

John Pearson, COO at Petrofac

THOUGHT LEADERSHIP

Making it real There are three clear steps to making this real at company level, especially for SMEs in the supply chain.

The first – and most fundamental – is that government must continue to collaborate with Industry to create robust policies and a regulatory and fiscal environment that makes projects viable. A good start has been made with the government’s ‘10-point plan’ which is expected to create up to 250,000 jobs. However, the investment levels outlined don’t yet tally with the UK’s ambition and we need greater clarity on the economic incentives. We can have all the policy we want, but the reality is if we don’t deliver the right number of low carbon projects by the right point in time, the UK won’t achieve its Net-zero target.

Industry bodies and the Taskforce are progressing step two. They are making the opportunity visible, supporting us to take legacy oil and gas expertise and point it towards new projects. Bodies like the EIC are doing a fantastic job helping the supply chain get to know a whole new set of customers.

For example, the Scottish supply chain still has a long and valuable OPEX opportunity to pursue in the wind space. By 2030, operations and maintenance in this area will be as big as it is now in oil and gas and we need to take advantage of that opportunity.

provides 75% of our needs in the UK. Our job is to support its delivery in a sympathetic and clean manner. On Petrofac’s projects, decarbonisation is an inescapable theme. We are minimising carbon intensity in the initial design and engineering phase, pursuing innovative renewable applications in construction, and driving new efficiencies in operation and maintenance.

A new era for the energy capital Aberdeen in particular has a unique chance to leverage its skills, technology expertise and industrial base as the “new energy” sector grows. I’m confident the supply chain will evolve in size and scale as demand increases.

Recent investment in port infrastructure and the creation of Aberdeen’s Energy Transition Zone provide scope to create something of a ‘one stop shop’ and will undoubtedly help attract future investment, putting the city and its supply chain expertise at the forefront of the transition.

Our skills are hugely relevant to the future low carbon energy mix and as I’ve said before, there is no issue with interchangeability

At company level, I would assert there is more than enough market information on the key elements of the transition. We can tell there’s a wall of work coming.

Granted, we do not quite know what order these projects will land in, but we almost don’t need to know yet.

The third step is to put our best foot forward; by evaluating and building our skills base, understanding the applicability of vendor products and services, and filling in the gaps.

Future Energy Mix We should also recognise that, for the supply chain, achieving netzero and maximising economic recovery are not mutually exclusive.

Instead, the two activity sets work in absolute support of each other.

Yes, the energy landscape is evolving, but oil and gas will continue to play a key role in the future energy mix – oil and gas still

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For these reasons, I remain positive about the role the supply chain will play in the medium-term and also in Energy Transition. But there will only be a medium term if the supply chain survives the short term. That’s why the Task Force has weighted its focus on real-time initiatives that support visibility of activity that ultimately supports us all to stay profitable, retain jobs and the skills required to deliver the transition.

As an industry collective, we’re looking at how to stimulate activity in well plugging and abandonment, viable brownfield projects that have slipped down the capital discipline list or can’t attract cash, ensuring maintenance isn’t deferred for too long, and opportunities for training.

Our skills are hugely relevant to the future low carbon energy mix and as I’ve said before, there is no issue with interchangeability. But we must protect our capability and capacity through the downturn. In the support of the transition, the Task Force recognises it has a responsibility to sustain the supply chain in the here and now. We’re actively working to stimulate activity, generate visibility of work, create a simple and frictionless tender process, and championing 30-day payment plans.

These changes transforming the offshore industry are inevitable but also refreshing. I am confident that – through a combination of investment and infrastructure, innovation and ingenuity – the Scottish offshore supply chain will prove to be as much of a force in sustainable energy in the next century as it has been in hydrocarbons over the last 50 years.

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One of the great things about starting with Abyss Solutions though, has been that we are very much a digitally connected business, so remote working comes very naturally and our customers can also benefit from using our bespoke remote solutions.

What has been the highlight of your career so far?

IAN

DRUMMOND

Regional Director Europe & Africa Abyss Solutions

Background: Ian Drummond joined Abyss Solutions in the role of Regional Director for Europe & Africa, in May this year and is looking forward to using his experience to help establish the company in the UK energy sector and supporting them to achieve their ambitious growth targets.

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

I graduated as an ECITB apprentice in Non-Destructive Testing in 1998 and joined the Leadership and Management Scheme at Rigblast Group. I spent 5 years supporting MachTen’s Offshore’s NDT & Inspection Divisions in Scotland, England and Qatar, before moving to Aberdeen as the Global Technical Manager. Since 2007, I have worked in leadership roles within asset integrity management services for Bilfinger Salamis and Cosalt Offshore, before joining Oceaneering International’s Asset Integrity Division as Senior Operations Manager, where I was responsible for operations in Europe, North Africa and Brazil before becoming their Regional Business Development Manager in 2017. I feel very fortunate to have gained a broad range of experience across many geographical areas, all of which has enabled me to step into my current role with Abyss Solutions.

What does your job involve on an average day?

Having recently joined Abyss Solutions, I’m very much on a steep learning curve at the moment to get a better understanding of our people and service capabilities around the globe.

An average day consists of a morning call with the team in Sydney and an evening call with the team in Houston and in between those calls, I’m talking to clients to better understand how Abyss Solutions can help support their technical challenges, which is what I enjoy the most.

Corporate golf trophies aside, I would have to say that as a big “People person”, I’m most proud of being part of the development process with those that I have worked with closely as a mentor. This is something I have been involved with a lot in my career and helping people to succeed is always very rewarding.

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

My role at present is to introduce and grow Abyss Solutions from a recent start-up organisation and help it to fulfil its true potential. Having always worked for large corporations, this is something I always wanted to try and a big part of the reason I took the role on, so I am finally ticking that box!

Abyss is revolutionising the industry landscape in advanced robotics, data analytics and innovative machine-learning technologies and so I’m delighted to be part of this industry step change and fulfilling my professional ambitions at the same time!

If you were inviting guests to a dinner party, which 3 people would you invite and why?

Billy Connelly, Michael Palin and Rachel Riley. It would be fascinating and hilarious to listen to the life stories of Billy and Michael, in particular, their travel adventures and misadventures around the globe. I have had the pleasure of meeting Rachel twice when hosting the Offshore Achievement Awards, she was charming, funny, and very generous with her time, it would be great to repay that generosity and give her the opportunity to let her hair down on the guest side of the table.

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

Lots of people have influenced my professional career, the key thing for me was to listen, learn and respect people who have the experience and knowledge to positively guide and to develop my skills. My first boss, David Dakers once said “mighty oaks from tiny acorns grow” this was in relation to supporting and completing a small job for a client in desperate need, that “small job” then led to a major contract and a position of trust because we had gone the extra mile to solve a problem that others had deemed too small to consider worthwhile. I have taken that learning and statement and apply it to everything I do in work and life.

"Abyss is revolutionising the industry landscape in advanced robotics, data analytics and innovative machine-learning technologies and so I’m delighted to be part of this industry"

Over the next 10 years, what do you think will be the key challenges in the energy sector in the UK?

The UK is well positioned to focus on net-zero emissions by 2050, we have the infrastructure and a highly-skilled workforce to support the transformation to low carbon solutions such as hydrogen, carbon capture and storage and electrification. The key challenges for the next ten years will be the acceptance and deployment of new technology that reimagines service delivery and the challenge to continue to attract the next generation of school levers to our sector. Abyss is well placed to embrace the diversification technology challenge and will work in partnership with Operators, industry bodies and academia to meet these challenges head on.

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

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

I normally spend a large amount of my time travelling to visit clients and specialist partners all around the globe, so working from home has been a much more comfortable environment than a cramped hotel room or a busy airport.

I have travelled to many exotic and beautiful places around the world but have spent most of that time in offices, hotels and airports. My self-advice would be “when you travel with work to new locations, make the time to experience and embrace the culture, history and people and of course, get a round of golf in!”

www.ogv.energy I June 2021

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AFCCT add £95m of value to the region as an anchor organisation for football participation Aberdeen FC Community Trust (AFCCT) is helping to add £95m of value to the region as a result of its anchor role in encourageing participation in football and delivering football-related activities in Aberdeen city and Aberdeenshire.

Aberdeen Football Club’s charity partner reveals in their 2019/20 Impact Report that participation in football and football-related activities directly contributes £16.3million to the regional economy.

Almost £13m of social benefits and £66.3m of healthcare savings are derived from the 71,000 participants involved in the sport and its related programmes in the region.

The report reflects on the Trust’s achievements over the past two years and sets out its ambition to expand its support to communities, particularly young people, across the region.

Between July 2019 to March 2020, AFCCT provided 7,540 meals for young people, tackling

food poverty at their place of education and in the community during school holidays.

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The charity’s priorities are shaped by local, national and international strategies, alongside local community needs and input from the Scottish Government, Education Scotland, SportScotland, the SFA and local authorities, with a strong commitment to increasing physical activity and tackling issues such as poverty, inequalities and wellbeing.

The Trust delivers programmes and activities across three pillars – Football for Life, Healthy Communities and Education.

Delivered in partnership with US-based not-for-profit organisation, Grassroot Soccer, the scheme brings mental health promotion into schools with the aim of improving the mental wellbeing of young people, teaching skills to cope with stress and breaking down stigmas around mental health.

The Trust’s base at AFC’s training facility at Cormack Park is now home to AFC Women, AFC Youth Academy and north-east community football.

The report reveals 15 grassroots clubs used the new pitches in the first three months – generating revenue of £13,000 for the charity – and 6,000 hours of hire time have been made available for community use every year.

Using a shared passion for football as a starting point, AFCCT works with 23 partner schools raising the aspirations of 8,300 targeted pupils as part of efforts to close the poverty-related attainment gap.

The Trust also collaborates with the University of Aberdeen’s Business School to widen access to further education for pupils, supporting youth development and career opportunities in the community as well as offering entrepreneurial workshops to develop skills in business, marketing, economic, numeracy and literacy.

Other Healthy Communities projects involve a wide variety of participants aged between 13 and 65 and range from youth work and public health initiatives to active ageing and dementia friendly activities.

To read the full 2019-2020 Impact Report please visit www.afccommunitytrust.org

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LEGAL & FINANCE

WHY WE NEED TO BE WARY OF BOILERPLATE PROVISIONS

By Vanessa Castillo

Boilerplate provisions are those general or miscellaneous provisions found mostly at the end of an agreement, and usually only briefly reviewed due to them being 'standard' provisions. They receive this name after the thick metal sheets used to build steam boilers, as a reference to their robust and standardised nature. However, if the appropriate drafting approach is not followed, these clauses can result in anything but 'standard' interpretations.

Deals Done and Assets Won Clauses that can be considered as boilerplate provisions include severability, no oral modification, confidentiality, waiver, entire agreement, assignment, governing law, counterparts, third party rights, no partnership and notices. Typically, most parties prefer to have uniform boilerplate provisions, importing the same form of wording into every agreement.

However, this usually results in the terms just being dropped in or accepted as being in the correct form without proper revision and consideration of whether they are appropriate to the circumstances of the particular transaction.

Boilerplate provisions, just like any other clause, must be reviewed in detail, and amended, if necessary, to fit the purpose of the contractual relationship and the interests of the parties to the contract.

Why is it important to revise them?

Case law has shown on multiple occasions that having inadequate wording in these provisions, or not including them in a contract at all, can have devastating results and result in the contract being interpreted in a manner wholly different to the one intended by the parties. Therefore, appropriate boilerplate provisions can save money and time.

WTI vs BRENT 1 YEAR

www.ogv.energy I June 2021

When reviewing boilerplate clauses, there are four key aspects to be considered. These are: (i) if the wording fully satisfies the intentions and expected outcome of each party, (ii) if the provisions are appropriate for the particular transaction or if they were drafted for a transaction with different characteristics, (iii) if they are adequate in the context of the transaction and interact properly with other provisions, and (iv) the impact they have on the overall position of each party to the contract.

For instance, having 'inadequate' or 'insufficient' wording in a no oral modification clause could result in the contract being modified by e-mail or in an informal conversation between the parties or by employees of the parties that do not hold the capacity to modify the contract.

Similarly, failing to have a proper entire agreement provision may lead to the courts considering representations made before signing the contract as being a part of the agreement. Moreover, not ensuring that proper dispute resolution provisions have been included could result in the parties having to solve their contract issues through a mechanism that does not fit their commercial relationship, such as a process before English courts when arbitration could have been more suitable.

contract that does not include an express severability clause, courts are still inclined to apply the doctrine of severance to the contract but may do so in a more restrictive way than would have been the case where the clause had been included.

With that in mind, these clauses should be treated with the same importance and care as the more commercial provisions. To avoid any potential litigation or unwanted consequence, their revision and negotiation should include a detailed analysis of the wording of the clause, its interaction with the other provisions of the contract and consideration of the risks of leaving interpretation to the courts.

It is also important to determine where any gaps in these provisions are to avoid unintended consequences. For example, in the case of a

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