DECAUGUST 2021 - ISSUE 2020 51
UK’s No. ENERGY SECTOR
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PUBLICATION
RISK MANAGEMENT & WELLBEING FEATURING
Brimmond Group Matthews Daniel - Dekra Prism Energy - Spectis Robotics Salus Technical - DNV Futura Investments
GLOBAL ENERGY NEWS WORLD PROJECTS MAP MONTHLY THEME RENEWABLES INNOVATION & TECH CONTRACT AWARDS DECOMMISSIONING ON THE MOVE STATS AND ANALYTICS LEGAL & FINANCE EVENTS
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CONTENTS
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COVER PARTNER
04 - Brimmond Gorup - Celebrating its 25th anniversary
COMMUNITY NEWS
08 - Latest updates from our OGV Community members
GLOBAL ENERGY NEWS 04
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11 - UK North Sea 14 - Europe 16 - US 18 - Middle East
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WORLD PROJECTS MAP
20 - EIC - World's latest project updates
MONTHLY THEME 22 - Risk Management and Well Being in the Energy Industry 24 - Spectis Robotics: Removing a hazard is the primary method for reducing risk 25 - Salus Technical: Paying heed to weak signals pays off
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26 - Matthews Daniel: The importance of risk management in energy transition 27 - Prism Energy: The Do’s & Don’ts of managing risk 28 - Futura - Futura joins forces with WorkLife to bring topof-the-range employee benefits to more Scottish employers 29 - Dekra - Control of Major Accident Hazards (COMAH) reports what is there really to know? 30 - DNV - Effective risk management generates business value, here's how your organisation can benefit
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INNOVATION & TECH ZONE 32 - Innovair: Reduce uncertainty & minimise the risk of rework or delays
EVERY MONTH 34 - Renewables 36 - Contract Awards 38 - On the Move 40 - Decommissioning 42 - Stats and Analytics 44 - Legal and Finance 46 - Community Partner 47 - Events
KENNY DOOLEY MAIN EDITOR Welcome to the December edition of OGV Energy Magazine, where this month we will be exploring ‘Risk Management and Wellbeing’ as our theme. Our team have just come back from our first major international event in ADIPEC and were delighted to be back hosting a pavilion and helping our clients to develop their network and engage with new customers. Thank you to everyone that came to our business breakfast at the Aloft hotel on Monday 15th November, we were thrilled to partner with Westwood Global Energy Group who moderated the event and host leaders from Deloitte, Proserv, Cognite, Microsoft and Petrofac to discuss our theme of ‘The Energy Evolution’, which provided a fascinating insight into how the global energy sector is changing. The full video of the discussion can be seen on our website here: www.ogv.energy/tv This month we are delighted to welcome Brimmond Group as our front cover partner and you can hear all about why they have been awarded four brand new contract wins on their double page feature inside. We also have insights from Bureau Veritas, Salus Technical Services, DNV GL, DEKRA and Prism Energy inside. 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 and Australasia along with industry analysis and project updates from Westwood Global Energy Group, the EIC and Renewables UK.
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BRIMMOND GROUP CELEBRATING ITS 25TH ANNIVERSARY 2021 has proved a significant year for Brimmond Group, the Aberdeenshire-based provider of hydraulic, pneumatic, electrical and mechanical equipment and services. Celebrating its 25th anniversary, and with a strong track record in the tailor-made design and manufacture of safe and cost-saving machinery for a wide range of client sectors, Brimmond is expanding its team with additional staff and apprenticeships, in response to securing four contract wins totalling £1.75 million, and a strong performance in rental sales throughout the year.
“One of our most recent wins is a six-figure contract with a renewables client, The contracts span a variety of sectors from production to oversee fabrication, manufacture and testing of a subsea anchoring ROV. and subsea to renewables, and will be delivered in early Once completed, one of the ROV’s first operations will be to install anchors to 2022. Engineering Director for Brimmond, Tom Murdoch, which a tidal platform will be secured, in the Labrador Sea off Newfoundland, reflects on the company’s recent journey: “These contract Nova Scotia.” wins come at what we hope is the end of a challenging period for the industry. We’ve been fortunate to weather Looking ahead, Brimmond has recently secured a UK distributorship with the effects of the pandemic reasonably well, increasing our KAMAT, a global manufacturer of high pressure pumps, which will be a critical turnover and remaining profitable. This is due in no component to the company’s continued diversification, both in terms of small part to the range and breadth of expertise product offering and new regions. With an established client base of our in-house team, and the international spanning the UK, Europe and Africa, Brimmond also has a foothold reputation they’ve helped us secure for in the Middle East, having explored further opportunities there One of our most pushing boundaries, being proactive and during ADIPEC in November. They will also be exhibiting at recent wins is a sixcollaborative – we rely on a long-held Offshore Europe and Subsea Expo in February 2022. figure contract with a history of employing existing technologies in new ways, as well as taking the time to The company recently expanded its team with the addition of renewables client, to partner with clients to truly understand two apprenticeships and two workshop technicians, and is oversee fabrication, their brief. Our successful outcomes are actively recruiting for three further office-based roles. manufacture and testing anchored in this strategy.” of a subsea anchoring “The global demand for our range of specialist equipment has Custom designing equipment for different remained high over the last year as our clients have focused on ROV. regions and scenarios is key to Brimmond operations and maintenance, and it’s fantastic to be reaching our Group’s approach, as Tom continues: 25-year milestone with such a variety of projects in the pipeline,” “We recently won a repeat order for the design and concludes Tom. “We look forward to seeing this trend continue through manufacture of a Mechanically Lined Pipe Hydraulic 2022 and beyond.” Pressurisation Unit (MLP HPU). This second generation unit will build on the success of the first MLP HPU. The Brimmond Group designs, manufactures, rents and services a range of unit is capable of maintaining a constant pressure within hydraulic, pneumatic, mechanical and electrical equipment. With a team of two individual lengths of pipeline up to 8km long, and experts working across the sectors of energy, marine, defence, renewables and prevents damage to the pipeline’s alloy liner during spooling decommissioning, the company’s core equipment includes diesel and electric operations. The HPU will be permanently installed on one of hydraulic power units (HPUs), marine cranes, umbilical reelers, spoolers, flushing the largest pipelay vessels currently in operation globally.” units and pump units of all shapes and sizes. The company is nothing if not versatile, a fact reflected in the variety of recent contract wins: a recent sevenfigure agreement will see them design and manufacture equipment to assist with converting a jack-up rig into a production platform for use in the Middle East, while other recent projects include providing a 90 Tonne Meter fully foldable, knuckle boom crane to support a diver’s golden gate project in West Africa, and a 44 Tonne Meter knuckle boom crane to increase an aquaculture vessel’s lifting capacity. Decommissioning remains key to Brimmond’s revenue, but in recognition of the sector’s finite nature the company has already embarked on an ambitious journey towards new sectors and geographies, as Tom explains: “While oil and gas remain pivotal to our core business, diversification is critical as the industry adapts to navigate the energy transition. We’re actively targeting opportunities for sustainable growth in other sectors and pleased to be increasing both our presence and product offering in markets such as renewables, marine and aquaculture.
Brimmond Group and Rigrun Europe are a collective of experienced organisations, which deliver innovative, bespoke and integrated solutions for any hydraulic, mechanical and electrical need. Contact us on 01467 633 805 or email sales@brimmond-group.com
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COMMUNITY
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The IPO marks the latest stage in the growth journey of the Aberdeen-headquartered company, which provides subsea equipment rental solutions, advanced technologies and support services to the global offshore energy sector.
Ashtead Technology starts new growth chapter after successful IPO Ashtead Energy has announced that it has secured strong support from new institutional investors and will become a publicly listed company on Tuesday 23 November when its shares begin trading on the London Stock Exchange’s Alternative Investment Market (AIM). Current owners Buckthorn and APICORP will remain significant shareholders in the business.
VR and software firm doubles in size thanks to training technology adoption in oil and gas Digital transformation in the oil and gas market is helping training technology and software firm, 3t Transform achieve phenomenal growth. In the last 12 months 3t Transform has doubled turnover, launched several next generation technology products and secured 34 new global customers with plans for more significant growth by 2023. The company, which is part of the 3t Energy Group, develops market-leading, cutting-edge training technology such as virtual reality, augmented reality, digital twins, mobile apps and software to manage competency and training.
Namaka Subsea expands operations at Moorfield’s Aberdeen Energy Park Namaka Subsea has upsised operations at Aberdeen Energy & Innovation Parks in Bridge of Don, with the subsea consultancy company moving from Unit 16 to Units 6 and 7 at the Innovation Centre, having agreed a five-year lease with Moorfield Group, the Parks’ owner and landlord. Namaka has recently been awarded a new contract with a leading global energy provider to supply dive system auditing, onshore support, technical advice and assurance services.
www.ogv.energy I December 2021
Over the past four years, Ashtead Technology has expanded its operations with five acquisitions which have helped drive strategic growth through geographic expansion and enhanced product and service offerings across its three service lines – survey and robotics, mechanical solutions and asset integrity. So far this year, Ashtead Technology has invested £8 million in new subsea equipment and technology to expand its extensive equipment rental fleet. It has also increased its workforce by 34 taking employee headcount to 204. The company is experiencing strong momentum across its end markets, with increasing customer activity helping to drive revenue growth of approximately 25% in the six months to 30 June
Training and competency experts sign partnership agreement to offer enhanced safety solutions Aberdeen-based training and competency consultancy, Ann McRobb Associates, has signed a partnership agreement with Array Training Ltd, a leading NDT training, examination and consultancy firm. The newly announced agreement will see the two companies working together with a focus on maximising efficiency and driving long-term safety solutions. The collaboration will combine their market-leading services to deliver the full scope of NDT training and competency, as well as providing Ann McRobb Associates’ global customer base access to Array Training’s unrivalled technical knowledge and expertise.
New energy transition skills initiative X-Academy receives encouraging response from applicants and industry X Academy, a new initiative to inspire and harness young minds towards energy innovations and the climate crisis, has been met with an encouraging reaction from both industry and applicants ahead of the deadline for submissions to take part in the inaugural programme. The scheme, driven by global energy consultancy firm Xodus, provides a two-year mentored placement in Aberdeen, giving graduates and those looking to reskill the chance to work on real climate issues.
2021 compared to the first half of 2020. It has continued to win new contracts for offshore wind developments and recently secured a series of awards to support the construction and installation of the Neart na Gaoithe (NnG) offshore windfarm, in the Firth of Forth. The offshore renewables energy market now accounts for 30% of Ashtead Technology’s revenue. Three highly experienced Non-Executive Directors have been appointed to the Group’s Board, with Bill Shannon joining as Independent Non-Executive Chair, and Thomas Thomsen and Tony Durrant as Independent Non-Executive Directors. Allan Pirie, Ashtead Technology’s CEO, said: “This development marks another exciting milestone in the evolution of Ashtead Technology. As a newly listed company, we plan to continue to grow and strengthen our core business in subsea technology rental and solutions both organically and through acquisition to further broaden our range of complementary equipment and services and expand our geographic presence.
Innovo secures Energy Technology Partnership funding to support drone vessel development Scotland-based Innovo Engineering and Construction has secured £10,000 funding from the Energy Technology Partnership (ETP) in conjunction with Strathclyde University, Glasgow, UK. The funding will support a research and development (R&D) project for Innovo’s innovative autonomous eco-robotic wind, solar and hydrogen fuel cell powered surface vessel – Oceandrone. Oceandrone is the latest in Innovo’s line up of innovative products, being a fully autonomous, zero-emission sailing craft that is uniquely capable of operating in unlimited sea-state parameters.
3t Energy Group strengthens leadership team with new appointment Leading training and technology organisation, 3t Energy Group, has appointed a new director of strategic projects to support the business as it enters its next exciting growth period. Jill Ogilvie will work with the senior management team on a range of strategic initiatives to help 3t Energy Group cement its leading position in the global training sector and realise its ambition to transform training with technology.
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ENERGY NEWS
11
DECEMBER 2021
UK NORTH SEA
Energy Review By Tsvetana Paraskova
The state of North Sea oil and gas exploration and decommissioning, the industry’s efforts to decarbonise operations, and updates on project developments on the UK Continental Shelf have featured in the past month’s news about the UK North Sea oil and gas sector.
Exploration and production of oil and gas from the North Sea is still needed if the UK is to meet its energy needs, while ensuring a successful energy transition to net-zero, the Chairman of the Oil and Gas Authority (OGA), Tim Eggar, said at a conference at the end of November. “If we need to be reminded of their importance to daily life, we only have to look back a matter of weeks, when we saw long queues at petrol stations and a gas crisis which brought the prospect of higher gas bills for millions of consumers. Security of supply is back in vogue – not before time,” Eggar noted. According to OGA’s analyses, domestic gas production has less than half the carbon footprint of imported liquefied natural gas (LNG), OGA’s chairman said. “In fact, we can produce gas with a lower carbon footprint than almost all other producing countries. So it really makes no sense to be more reliant than we need to be on imports – particularly from countries with less to no commitment to reducing their emissions,” Eggar concluded. OGUK published at the end of November its Decommissioning Insight 2021 report, which showed that over the last five years the UK decommissioning industry has improved its efficiency and cut its costs by an estimated 23 percent. The industry remained resilient during the pandemic, spending £1.07 billion in 2020, and is expected to spend £1.46 billion in 2021, the report finds. Decommissioning is set to account for 12 percent of industry expenditure offshore the UK in 2021. From 2022 to 2024, the OGUK forecast shows business returning to its usual pace after the slowdown. With annual expenditures just over £1.5 billion, it is anticipated that almost 600 wells and around 45 topsides and jacket structures will be decommissioned. A total of 69 km of pipelines, almost 6,000 tonnes of subsea structures, and just over 4,000 mattresses are expected to be removed.
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“This is going to be an exciting 10 years – there’s a huge amount of work to be done and with £16.6 billion to be spent, there will be many opportunities for UK companies and workers,” said Joe Leask, OGUK’s Decommissioning Manager. “Decommissioning is more than a great challenge. It’s also a huge opportunity for UK companies to show their engineering skills, powers of innovation and ability to compete on a global scale,” Leask added.
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ENERGY NEWS
The 34th edition of the Oil and Gas Transition Survey by Aberdeen & Grampian Chamber of Commerce (AGCC), KPMG UK, and Fraser of Allander Institute showed that companies in the UK’s oil and gas sector expect their businesses to transform substantially over the next decade. Firms polled expect that on average, the share of their business outside of oil and gas will jump from 21% today to 47% by 2030. Overall, the sector continues to be positive about the future, and 69% of companies anticipate their revenues to rise in 2022. In addition, three quarters of companies report being either ‘moderately’ or ‘extremely’ optimistic about Aberdeen, Scotland, and the UK playing a leading role as a future energy hub.
Following debates in Scotland whether the UK should allow the Cambo oil and gas field to proceed to development, OGUK said that blocking long-planned oil and gas projects would risk leaving UK consumers even more exposed to the global energy shortages. “OGUK is warning that if new projects like Cambo are not approved then UK production would plummet with gas output, for example, falling up to 75% by 2030. This would leave the UK increasingly reliant on imported energy,” said the trade body. Earlier in November, Scotland’s First Minister Nicola Sturgeon said that the Cambo oilfield “should not get the green light.”
A total of 80% of firms indicated that strong sustainability credentials were critical to their long-term future.
The Cambo field, led by operator Siccar Point Energy with Shell as a partner with a 30% stake, is expected to help reduce the volume of imports required to meet energy demand in the UK, by delivering up to 170 million barrels of oil equivalent during its 25-year operational life, Siccar Point says.
However, the survey showed that firms have identified a range of key skills gaps, particularly in non-oil and gas activities, and have expressed concerns about a loss of skilled workers. “Careful planning and investment at a corporate and government level are needed to make sure Scotland’s years of experience, skills and infrastructure are used to their full potential as we move towards a greener future,” Martin Findlay, office senior partner KPMG Aberdeen, commented on the survey. Trade bodies from the UK, Denmark, Norway, the Netherlands, and Germany – the five countries across Europe pioneering lower carbon oil and gas in the North Sea – signed in early November a formal agreement to work together to advance the transition to net-zero emissions, OGUK said. “Today’s agreement recognises that climate change doesn’t stop at the border and commits us to work together to give millions of people access to cleaner energy and deliver a managed transition towards netzero,” OGUK Chief Executive Deirdre Michie said, commenting on the agreement. Electrification of oil and gas platforms in the UKCS is time-critical if the UK wants to replicate the Norwegian success in platform electrification which has helped Norway to keep absolute emissions flat, despite an increase in activity and infrastructure, Wood Mackenzie said in a report in early November. The economics for electrification of platforms in the UK are challenging, particularly given field maturity in the UK, according to WoodMac. “With longer field lives, hubs in the Central North Sea and West of Shetland are the best candidates – but significant investment and rapid action will be needed to meet North Sea Transition Deal targets,” wrote WoodMac’s Lucy King, Research Analyst, North Sea Upstream, and Neivan Boroujerdi, Principal Analyst, North Sea Upstream.
If approved by the OGA, drilling at Cambo could begin as early as next year.
Martin Findlay, Office Senior Partner KPMG Aberdeen
“Careful planning and investment at a corporate and government level are needed to make sure Scotland’s years of experience, skills and infrastructure are used to their full potential as we move towards a greener future,”
In company news, Orcadian Energy announced at the end of October that it had received three expressions of interest for the provision of an FPSO for the development of the Pilot oilfield. Neptune Energy has completed a first-of-its-kind collaboration with the Environmental Defense Fund (EDF) to measure methane emissions on a working UK offshore platform using advanced drone technologies. The results of the study will be published in a scientific peerreviewed paper in 2022, the company said. Neptune Energy was also awarded in November Gold Standard status by the Oil & Gas Methane Partnership (OGMP) in recognition of setting ambitious targets and establishing credible plans to reach a net-zero methane intensity by 2030. Cairn said in early November it planned to change its company name from Cairn Energy PLC to Capricorn Energy PLC, effective from 13 December 2021. The LSE stock ticker will remain as CNE. The new name reflects continuity and evolution: the majority of Cairn’s subsidiaries have been known as Capricorn for some time. ConocoPhillips Skandinavia as operator of the Tommeliten A Unit announced that the plan for development and operation of the Tommeliten A field in the North Sea had been submitted to the Norwegian Ministry of Petroleum and Energy and the UK Oil and Gas Authority. The Tommeliten A field is primarily a Norwegian development, however, as the field extends into the UK Sector, it is being developed in accordance with the UK and Norwegian authorities’ guidelines for development of transboundary oil and gas fields.
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EnerMech has been awarded a five-year contract to deliver tensioning, torqueing, and associated services across all of TAQA’s North Sea platforms, including Cormorant Alpha, North Cormorant, Eider Alpha, Harding, Tern Alpha, Brae Alpha, and East Brae. Deltic Energy has completed the 3D seismic survey over Licence P2428 and surrounding areas, with the final results expected to be delivered in the second quarter of 2022. IOG plc announced in a market update on 22 November that the offshore
subsea and hook-up scopes for the Blythe and Elgood fields had been completed. IOG continues “to work closely with Bacton terminal operator Perenco and an enlarged workforce to complete the reception facilities recommissioning and deliver First Gas in Q4, albeit this may be challenging,” Andrew Hockey, CEO of IOG, said. Serica Energy plc announced on 26 November that first production from the Columbus field in the Central North Sea was achieved during the fourth quarter, as planned. Columbus is expected to be producing at its potential by early December, the company said.
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ENERGY NEWS
Europe
Energy Review By Tsvetana Paraskova
Oil & Gas Germany suspended on 16 November the process of certification of the Nord Stream 2 gas pipeline. The Federal Network Agency of Germany, Bundesnetzagentur, said it suspended the procedure to certify Nord Stream 2 AG as an independent transmission operator until an operator of the pipeline in Germany is incorporated under German law. The suspension delays by at least a few weeks the completion of certification and the potential increase of gas supply from Russia to Europe that would come with the start of gas flows via Nord Stream 2. Shell said it plans to drop ‘Royal Dutch’ from its name, move its tax residence to the country of incorporation in the UK, simplify its share structure to a single line of shares simpler for investors to understand and value, and move its CEO and CFO to the UK. “The simplification will normalise our share structure under the tax and legal jurisdictions of a single country and make us more competitive. As a result, Shell will be better positioned to seize opportunities and play a leading role in the energy transition,” Shell’s
www.ogv.energy I December 2021 2021
New discoveries, developments, and divestment in oil and gas, the suspension of the certification of the Nord Stream gas pipeline in Germany, Shell moving from the Netherlands to the UK, Scotland’s hydrogen strategy, and many agreements for development of low-carbon energy sources were the highlights in Europe’s energy sector in November. Chair, Sir Andrew Mackenzie, said about the move, which is pending shareholder approval on 10 December. Equinor, together with partners PGNiG Upstream Norway and Longboat Energy Norway, announced an oil discovery of 19-62 million barrels in exploration well 6407 / 1-9 - Egyptian Vulture in the Norwegian Sea. The discovery, announced on 1 November, is the sixth Equinor has made on the Norwegian shelf so far this year. On behalf of the Wisting licence partners, Equinor signed later in November a contract with Aker Solutions for front-end engineering and design (FEED) of a floating production and storage vessel (FPSO) for the Wisting field, a standalone field development in the
Barents Sea containing close to 500 million barrels of oil equivalent. bp and Aker said on 11 November they successfully sold 18,010,000 Aker BP shares, representing a combined 5 percent of shares in the company, at a price of NOK 310 a share. bp sold 7,718,571 shares, representing an approximate 2.1-percent stake in Aker BP, for a total of NOK 2.39 billion, equal to around $266 million. Neptune Energy has signed agreements with OKEA ASA and M Vest Energy AS whereby Neptune will divest its non-operated working interests in three producing fields and two export pipelines offshore Norway. The asset stakes Neptune is divesting include the producing Draugen, Brage, and Ivar Aasen fields, as well as the Edvard Grieg Oil Pipeline and the Utsira High Gas Pipeline.
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infrastructure to connect them to high demand centres, the authors of the study noted.
The Scottish government unveiled its Hydrogen action plan, detailing the actions Scotland plans to take over the next five years to support the development of a hydrogen economy to contribute to the reduction of greenhouse gas emissions from Scotland’s energy system while ensuring a just transition. Scotland committed £100 million of funding towards the development of its hydrogen economy over the next five years.
In company and project news, Dogger Bank Wind Farm, which will be the world’s biggest offshore wind farm, officially broke ground in November for its net-zero carbon Operations and Maintenance (O&M) Base at the Port of Tyne. At 3.6 GW, the wind farm will become the biggest in the world when fully operational in 2026. It will be capable of providing around 5% of the UK’s electricity.
“Scotland has the resources, the people and the ambition to become a world leader in hydrogen production and our Hydrogen Action Plan sets out how we will work collaboratively with the energy sector to drive progress over the next five years,” Net-Zero & Energy Secretary Michael Matheson said. Aberdeen City Council said on 10 November it would accelerate delivery of its hydrogen hub and reinforce efforts to build a hydrogen economy in the city following a £15-million funding boost. In October, Aberdeen City Council had already announced bp as its preferred bidder for a commercial partner for the Aberdeen Hydrogen Hub, which will incorporate solar power, green hydrogen production, and a refuelling facility for public transport. Aberdeen Harbour announced in November it would collaborate with bp to identify and develop projects that could reduce emissions and lower air and noise pollution from vessels calling to the port.
“We will be bringing bp’s core skills in solving complex energy problems to a progressive and highly capable port that is uniquely positioned to play an integral part in Scotland’s energy transition,”
The third phase of the Dogger Bank Wind Farm project, Dogger Bank C, secured at the end of November 15-year offtake Power Purchase Agreements (PPAs) with external offtakers Centrica and Shell. The agreements are subject to financial close on Dogger Bank C, which is expected by the end of 2021. Earlier in the month, Italy’s energy firm Eni said it would buy a 20% stake in Dogger Bank C. Once the transaction is complete, the new shareholding structure will be comprised of SSE Renewables (40%), Equinor (40%), and Eni (20%) for all the three Dogger Bank project phases (A, B, and C). Equinor revealed on 1 November its preferred floating wind foundation design for full-scale gigawatt (GW) commercial floating offshore wind, if successful in the ScotWind tender. The Wind Semi, a semisubmersible wind turbine foundation, has been designed with flexibility, specifically to allow for fabrication and assembly based on local supply chain capabilities, Equinor said. Hydro Havrand, Hydro’s green hydrogen company, and Shell New Energies have agreed to explore the potential for joint projects producing hydrogen from renewable electricity. The ambition is to use the hydrogen to help decarbonise Hydro’s and Shell’s own operations, and to supply customers in heavy industries, the maritime sector, and road transport.
Nearly 2 million bpd of US Gulf Coast refining capacity was also estimated to be offline immediately after the storm hit.
bp North Sea Senior Vice President Emeka Emembolu said. Prime Minister Boris Johnson announced at the end of October up to £160 million in new government funding to support new large-scale floating offshore wind ports and factories in Scotland and Wales. It is expected that the funding, boosted by private sector investment, will develop port infrastructure capable of mass-producing floating offshore wind turbines and installing them out at sea, creating thousands of new jobs in the UK’s industrial heartlands, whilst reducing the need to import from overseas. In another UK government funding to support low-carbon energy, the UK Government said at the end of November it would invest £20 million per year across the UK in Tidal Stream electricity as part of its flagship renewable energy auction scheme, starting a new chapter for Scotland’s tidal industry and looking to create jobs across Scottish coastal regions. A few weeks before that, new research led by the University of Plymouth showed that tidal stream power could generate 11% of the UK’s electricity demand. However, tidal power will need government funding to accelerate innovation and drive down its cost so that future projects can provide cheap electricity. The regions with the highest tidal stream resource are the Pentland Firth and Orkney Waters, Scotland, and the Channel Islands – but both would require major grid
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Shell also signed an agreement to explore low-carbon energy solutions with RWE of Germany. Shell New Energies and RWE Generation SE intend to jointly advance projects for the production, use, and distribution of green hydrogen, as well as further options to decarbonise RWE gas and biomass-fired power plants in northwest Europe.
Geoscience and geospatial technology provider Getech announced in mid-November that its wholly-owned hydrogen subsidiary, H2 Green, had signed a collaboration agreement with Shoreham Port, which grants H2 Green exclusive rights for the development of all port-based hydrogen, ammonia, and new onshore wind and solar power generation capacity at the Port of Shoreham, West Sussex. UK-based Low Carbon Limited and the Massachusetts Mutual Life Insurance Company have joined forces to build a leading global renewable energy Independent Power Producer (IPP) targeting 20 GW of renewable energy capacity by 2030. The partnership with MassMutual will also support Low Carbon’s ambition to raise third-party investment funds with the aim of directing capital into large-scale renewable energy infrastructure projects in the UK, Europe, and selected global markets. TotalEnergies, Iberdrola, and Norsk Havvind have teamed up to respond to the Norwegian authorities’ call for tenders for the development of floating and bottom-fixed wind projects for a cumulated capacity of 4.5 GW at two offshore sites in southern Norway. Scottish Enterprise has commissioned an international collaboration project called ‘Scot2Ger’ to explore future export opportunities for Scotland’s green hydrogen. The project, led by ScottishPower, Wood, KPMG Germany, and DS Consulting, will examine the German demand for zero-emission hydrogen and how it could be met by green hydrogen produced in Scotland. The project is also supported by the Scottish Government, Highlands and Islands Enterprise, and South of Scotland Enterprise.
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ENERGY NEWS
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ENERGY REVIEW
US crude oil production is recovering from the pandemicdriven impact and from the shut-ins due to the hurricanes in August and September, while petroleum demand in the United States held strong in October. By Tsvetana Paraskova
The largest US shale region, the Permian in West Texas and eastern New Mexico, is set to see its highest ever oil production in December, estimates from the US administration show. Due to rising global oil supply, including from the US, the oil market is expected to swing into a surplus as early as in 2022, the US Energy Information Administration (EIA) said in its latest monthly Short-Term Energy Outlook (STEO) in November. While the Biden Administration is looking at ways to reduce the highest US petrol prices in seven years, including via a release from the Strategic Petroleum Reserve (SPR), the US shale patch continues to exert capital discipline and is not rushing to raise production too much even at oil prices at around $80. US producers prefer to grow within cash flows and reinvest less of the record cash they have been raking in in recent months. The US oil and gas industry is also apprehensive about the US Administration’s policy toward oil and gas with expected additional fees and taxes on the sector that
www.ogv.energy I December 2021
has been discouraged to invest in more production while President Joe Biden is calling on OPEC+ to raise output.
Efforts to bring down high petrol prices Since the summer of 2021, the Biden Administration has been signalling increased efforts to try to bring down high petrol prices, which hit their highest since 2014 in the US. Continued pleas with OPEC+ have been ignored for months by the group, and as of the end of November, the US was considering releasing crude oil from the Strategic Petroleum Reserve in a coordinated effort with other major oil consumers such as India, Japan, and China, to reduce prices at the pump. On 23 November, President Biden announced that the Department of Energy would make available releases of 50 million barrels of oil from the Strategic Petroleum Reserve “to lower prices for Americans and address the mismatch between demand exiting the pandemic and supply.”
High petrol prices in the US are a major concern for a sitting president, as expensive petrol typically directly impacts ratings and voter approvals. Apart from calls on OPEC+ to open the taps and announcing a SPR release, President Biden has also requested the Federal Trade Commission (FTC) to investigate rising petrol prices. The American Petroleum Institute (API) issued a statement on 17 November in response to the renewed request for investigation. “This is a distraction from the fundamental market shift that is taking place and the ill-advised government decisions that are exacerbating this challenging situation. Demand has returned as the economy comes back and is outpacing supply,” Senior Vice President for Policy, Economics and Regulatory Affairs Frank Macchiarola said. “Further impacting the imbalance is the continued decision from the administration to restrict access to America’s energy supply and cancel important infrastructure projects. Rather than launching investigations on markets that are
US regulated and closely monitored on a daily basis or pleading with OPEC to increase supply, we should be encouraging the safe and responsible development of American-made oil and natural gas,” Macchiarola added.
53 % for the same period in 2020 and way lower than the historical average of above 130 %. The reinvestment rate is calculated by comparing shale producers’ oil and gas capex against their cash flow from operations (CFO). The CFO for the third quarter was the strongest since the second quarter of 2019, Rystad Energy reckons.
Permian oil output set for record
The independent energy research firm expects reinvestment rate will fall further to 40 % in the fourth quarter of 2021.
Operators in the Permian are expected to produce a record volume of crude oil in December 2021, driving US oil production growth as prices rise and operators add more rigs. Crude oil production in the Permian is set to reach a record high of 4.953 million barrels per day (bpd) in December, up by 67,000 bpd from November, the Energy Information Administration said in its monthly Drilling Productivity Report in November. The expected crude output in December would be higher than the current record of 4.913 million bpd set in March 2020. The Permian, with more prolific wells compared to other shale basins and operators scaling up efficiency gains, will be the key driver of the expected 85,000-bpd increase in US shale production in December. Crude oil output from the seven largest shale regions is expected to rise to 8.316 million bpd, according to EIA estimates, which show that the Permian will be the only one to add a meaningful volume of production. The Anadarko, Appalachia, Bakken, Eagle Ford, and Niobara regions will see their production growth at between 2,000 bpd and 5,000 bpd in December. EIA forecasts total annual US crude oil production will average 11.1 million bpd in 2021, increasing to 11.9 million bpd in 2022 as tight oil production rises and offsets production decline rates, the Short-Term Energy Outlook (STEO) for November showed. Global oil supply will outpace slowing growth in global oil consumption in 2022 and contribute to Brent prices declining to an annual average of $72 per barrel, EIA said before the OPEC+ meeting in early December. In natural gas, US dry natural gas production averaged 94.9 Bcf/d in October, slightly up from 94.5 Bcf/d in September, and up from 91.9 Bcf/d in the first half of 2021. Production is expected to rise to an average of 95.2 Bcf/d during the winter season between November and March and to average 96.7 Bcf/d during 2022, driven by natural gas and crude oil prices, which EIA expects to remain at levels that will support enough drilling to sustain production growth.
US oil and gas industry sticks to discipline Uncertainty in the US oil industry regarding future US Administration policies and pressure from investors on companies to return more cash to shareholders have resulted in the lowest reinvestment rate of 21 large US shale producers, excluding majors, Rystad Energy said in an analysis on 22 November. The peer group’s combined reinvestment rate in the third quarter of 2021 was 46%, down from
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“Although the current trend of high oil prices indicates a more favourable economic outlook, the growth of EPCI costs is a cause for concern in the near term. Costs are expected to rise even further after 2023, with drilling contractor and subsea cost increases becoming the prime headache for oil and gas operators,” Rystad Energy noted.
“Such a low reinvestment rate stands out for shale industry observers, especially as the peer group reported a record-breaking free cash flow (FCF) and earnings before interest, tax, depreciation and amortisation (EBITDA) of $6 billion and $16 billion, respectively. But it’s not the end of the reinvestment slide,” says Alisa Lukash, vice president for North American shale at Rystad Energy. The recent rally in oil and gas prices encourages growth, but within cash flows, Enverus Intelligence Research said in early November. “Current price levels support production growth of more than 10% even while spending well within cash flow, but investor definitions of ‘capital discipline’ are evolving through the run-up in prices. Recent commentary from public operators suggests the growth discussion has returned, but investor pressure to focus on cash returns remains unyielding,” said Farzin Mou, vice president of Enverus Intelligence Research.
Cost inflation in US oil & gas projects Going forward, the US oil and gas supply chain faces considerable cost inflation, with the engineering, procurement, construction and installation (EPCI) segment being the first to record a double-digit %age hike in costs, Rystad said in a report. EPCI costs, mostly driven by rising wages and material costs, are set to gain about 10% in 2023 from current levels, the research company estimates. “Although the current trend of high oil prices indicates a more favourable economic outlook, the growth of EPCI costs is a cause for concern in the near term. Costs are expected to rise even further after 2023, with drilling contractor and subsea cost increases becoming the prime headache for oil and gas operators,” Rystad Energy noted. The latest Dallas Fed Energy Survey from endSeptember had already shown that costs rose sharply in Q3 for a second consecutive quarter. Among oilfield services firms, the index for input costs increased to 60.8, a record high and indicative of significant cost pressures, the survey showed. US natural gas producers are set for significant hedging losses next year, to the tune of billions of US dollars, as they had hedged most of their 2022 production before the energy crunch led to surging gas prices, a Rystad Energy analysis showed in November. A peer group of 11 shalegas-focused producers, accounting for 35 % of unconventional gas production and 53 % of shale gas production, stands to lose more than $5 billion in 2022 if the average Henry Hub price strip is at $4/MMBtu, and these losses could double if Henry Hub prices average $5/MMBtu, Rystad Energy estimates.
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By Tsvetana Paraskova
The OPEC+ group dominated by Middle Eastern oil producers decided in early November to add 400,000 barrels per day (bpd) to its monthly production in December, ignoring calls from the US Administration and other major consuming nations to boost supply more to tame high oil and petrol prices that could slow the global economic recovery.
The leader of OPEC+, Saudi Arabia, raised by more than expected its official selling prices (OSPs) for December loadings, in a move suggesting that the largest crude oil exporter in the world believed the market would continue to tighten by the end of this year. The OPEC+ alliance, however, continues to pump below its target as several members of OPEC from Africa are struggling to raise production. While the OPEC+ producers look to guide the oil market to balance in a still uncertain macroeconomic situation, the International Energy Agency (IEA) urged Middle Eastern producers to speed up clean energy transition efforts.
www.ogv.energy I December 2021
We’re always looking for new ways to add value and routinely introduce new technological solutions to make service delivery even simpler, smoother, faster.
Middle East Finally, Abu Dhabi National Oil Company (ADNOC) announced several major deals in oil, gas, and renewables development. The announcements were made at the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), one of the world’s largest energy forums, which was held in person in the middle of November.
OPEC+ stays the course
OPEC cuts 2021 global oil demand outlook, leaves 2022 view unchanged A week later, OPEC said in its Monthly Oil Market Report (MOMR) for November that slower than expected demand from China and India in the third quarter and higher energy prices would slow the pace of recovery in the fourth quarter. In midNovember, OPEC expected oil demand growth in 2021 at 5.65 million bpd over 2020, down from 5.82 million bpd growth expected in the previous month’s report.
The OPEC+ group decided in early November to stick to their monthly increase in production of 400,000 bpd for December, despite continuous calls from the United States and other major consuming In mid-November, OPEC economies to add more expected oil demand barrels to the market.
Yet, OPEC left its estimates for 2022 unchanged—the growth in 2021 at 5.65 organisation still “The meeting reaffirmed the million bpd over 2020, expects global oil continued commitment of down from 5.82 million demand to grow by the Participating Countries 4.2 million bpd in 2022 bpd growth expected in the in the Declaration of compared to 2021. Total previous month’s report. Cooperation (DoC) to ensure oil demand next year is a stable and a balanced oil estimated to reach 100.6 market, the efficient and secure million bpd, some 500,000 supply to consumers and to provide bpd above the pre-COVID levels clarity to the market at times when in 2019. other parts of the energy complex outside the boundaries of oil markets are experiencing ADNOC signs deals to raise oil, extreme volatility and instability, and to continue to adopt a proactive and transparent approach gas, renewables output which has provided stability to oil markets,” OPEC said after the meeting on 4 November. ADNOC, which pumps nearly all the oil in Partially informing the OPEC+ decision was the expected surplus on the oil market in early 2022, analysts and Middle Eastern energy officials say. Yet, data from OPEC’s monthly reports and from vessel-tracking firms in recent months have suggested that OPEC and the OPEC+ group are actually pumping and exporting lower volumes of crude than the 400,000 bpd increase they add each month. This has been the result of some African OPEC members, including Nigeria and Angola, struggling to raise their respective oil production because of a lack of capacity and underinvestment in recent years. The under-production of the collective quota of OPEC+ has raised questions about how much spare capacity the group has left and how much further it would be willing to reduce that capacity over the next year.
Saudi Arabia Hikes Prices for its Crude Days after the OPEC+ meeting, Saudi Arabia announced a much larger-than-expected increase in the prices of its crude in December to all customers. Saudi Aramco aggressively raised the price of its flagship Arab Light crude grade to Asia for December by $1.40 per barrel to a premium of $2.70 a barrel over the Oman/Dubai average, the benchmark off which Middle East’s crude oil exports to Asia are being priced. “The price increments are much higher than market expectations and give a bullish signal on supply tightness,” ING strategists Warren Patterson and Wenyu Yao said, commenting on the Kingdom’s price hike.
OPEC’s third-largest producer, the United Arab Emirates (UAE), announced on 16 November record investments worth up to nearly $6 billion (AED22 billion) to enable drilling growth as it looks to boost its crude oil production capacity to 5 million bpd by 2030 and drive gas self-sufficiency for the UAE. The investments are in the form of procurement awards to top-tier contractors for Wellheads and related components, Downhole Completion Equipment (DCE) and related services, and Liner Hangers and Cementing Accessories, ADNOC said.
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Construction Company (NPCC) and a joint venture (JV) between Técnicas Reunidas and Target Engineering, include the construction of gas conditioning facilities, wellhead topsides, pipelines, and umbilicals. The Dalma field is part of the Ghasha Concession, the world’s largest offshore sour gas development, which is expected to be a key driver of the plan for gas selfsufficiency, ADNOC said. The UAE energy company signed a strategic partnership that confirms a $6.2 billion (AED22 billion) investment agreement between the company and Borealis AG to build the fourth Borouge facility - Borouge 4 - at the polyolefin manufacturing complex in Ruwais. Also at ADIPEC, ADNOC’s artificial intelligence joint venture with Group 42, AIQ, announced a strategic collaboration agreement with Baker Hughes to develop advanced analytics solutions for the global oil and gas industry. Finally, ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) – Abu Dhabi’s two energy giants – launched a new global renewable energy and green hydrogen venture. The companies aim to create a clean energy powerhouse, with a total generating capacity of at least 30 gigawatts (GW) of renewable energy by 2030, which is set “to position Abu Dhabi and the UAE at the forefront of the energy transition and further advance its global leadership role in green hydrogen,” ADNOC said. The strategic partnership will focus on domestic and international renewable energy and waste-to-energy projects as well as the production, processing, and storage of green hydrogen and ancillary activities. Speaking at ADIPEC, Al Jaber of ADNOC said: “Today’s strategic partnership between two Abu Dhabi energy giants future-proofs ADNOC’s business model, creating compelling business and commercial opportunities, as we fully embrace the energy transition.”
“ADNOC’s world record investments in drilling-related At the ADIPEC conference, equipment underlines IEA Executive Director Fatih our commitment to Birol urged Middle Eastern responsibly unlocking our producer economies to world-scale hydrocarbon accelerate clean energy resources and expanding transition as he accepted a our production capacity to lifetime achievement award. Dr. Sultan Ahmed continue providing the world Al Jaber with some of the least carbon“More than at any other point in intensive barrels for decades to recent history, fundamental changes come,” said Dr. Sultan Ahmed Al Jaber, to the economic model of resource-rich UAE Minister of Industry and Advanced countries look unavoidable. The future will Technology, and ADNOC Managing Director look very different from the past,” Birol said in and Group CEO. his acceptance speech. ADNOC also awarded two engineering, procurement and construction (EPC) contracts totalling $1.46 billion (AED5.36 billion) for the Dalma Gas Development Project offshore the UAE. The two EPC contracts, awarded to National Petroleum
“We need to deploy traditional strengths in support of economic diversification and low-carbon transformation. First movers – countries that take a proactive approach to this – could do especially well,” the IEA’s Executive Director noted.
WORLD PROJECTS
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The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally. It 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. The EIC provides one of the most comprehensive sources of energy projects and business intelligence in the energy sector today.
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SPAIN - BlueFloat Energy Mar de Ágata Floating Offshore Wind US$6 billion
BlueFloat Energy and Sener are planning to develop a 300MW floating offshore wind farm in Andalusia, Spain. The power generated from the wind farm could be utilised to power an electrolyser which would produce 20 tonnes of green hydrogen a day. The wind farm would comprise 20 floating offshore wind turbines with an output of 15 MW each.
3 PAPUA NEW GUINEA ExxonMobil Angore Gas Field Development Project US$1 billion The joint venture operating the PNG LNG project have approved a $1 billion investment in the field development. Associated project activity began in late July, and Santos said the development represents the next tranche of gas backfill to maintain plateau production beyond 2030. Project activity commenced in July 2021 and first gas is expected in 2024.
www.ogv.energy I December 2021
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SENEGAL - BP Yakaar and Teranga Gas Fields US$1 billion BP has commenced FEED work on the development which is expected to reach a final investment decision in 2022. Although not disclosed it is worth noting that KBR has previously undertaken work on the offshore developments for BP’s Greater Tortue project. The fields have the potential to produce up to 20 Tcf of gas.
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GUYANA - ExxonMobil Mako-Uaru Oil Field Complex US$4 billion
NORWAY - Equinor Egyptian Vulture Discovery US$300 million
NORWAY - Equinor Wisting Central Oil Discovery US$8.9 billion
The Mako-1 and Uaru-1 exploration wells found a combined 79 metres of high quality, oil-bearing sandstone reservoirs when drilled in 201920. Appraisal wells drilled in 2021 confirmed the quality of both finds. The Mako-Uaru area is a possible fifth choice for the development phase of the Stabroek block. The SURF component of any future project could be worth $1 billion according to TechnipFMC. Guyana and Brazil are considered major markets for TechnipFMC in 2022.
Equinor announced the discovery of light-oil at the Egyptian Vulture prospect in the Norwegian Sea. Equinor's initial estimate of recoverable resources in the Egyptian Vulture discovery is 19 to 63 MMboe (gross), and the oil-inplace volume has been estimated at 220 to 440 MMboe (gross). Further appraisal drilling will be undertaken to understand the flow potential of the reservoir.
Equinor, and partners, have confirmed the signing of a contract with Aker Solutions for front-end engineering and design (FEED) of a floating production and storage vessel (FPSO) for the Wisting field. Valued at around NOK 350 million, the study includes an option for engineering, procurement, construction, and installation (EPCI) calculated at NOK 8-12 billion. Involving up to 270 people, the FEED work will mainly be carried out in Norway. Leirvik AS and Sevan SSP AS will contribute as sub-suppliers of engineering services for the living quarters and hull respectively.
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USA - RENEWABLE ENERGY GROUP (REG) Geismar Biorefinery Expansion Project US$950 million
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Renewable Energy Group Inc. (REG) has awarded Wood plc a contract to provide engineering, procurement, and construction management (EPCM) services for the refinery's expansion and related works. The project will take total site production capacity from 90 million to 340 million gallons, enhance existing operations, and improve operational reliability and logistics.
8 NORWAY - Norwegian Ministry of Petroleum and Energy Utsira Nord Offshore Wind Development Area US$1.8billion Further bids have been submitted to develop commercial scale floating offshore wind farms in the Utsira Nord area. Aker Offshore Wind, Ocean Wind and Statkraft will propose to build the 500 MW Vestavindar floating wind farm at Utsira Nord, while Iberdrola in partnership with TotalEnergies, and Norsk Havvind have jointly submitted bids for the tenders at the Utsira Nord and Sorlige Nordsjoe II sites.
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SOUTH KOREA - COENSHEXICON Floating Offshore Wind Farms Pohang and Yeonggwang US$500 million
INDONESIA - ExxonMobil Cepu Block Carbon Capture and Storage US$500 million
Yeonggwang and Gyeongbuk counties have granted CoensHexicon, a joint venture between Hexicon and Coens, permission to measure wind conditions in a total of four offshore areas in South Korean waters which entails a priority right to develop offshore wind farms within the area. The development of these areas has been going on for just over a year and the approval from the local authorities has been obtained by CoensHexicon in cooperation with Korean partners who are also joint owners in these areas.
ExxonMobil and Pertamina have signed a memorandum of understanding (MoU) for the development of carbon capture and storage in Indonesia. The project developers will identify potential subsurface carbon dioxide (CO2) storage sites and study the feasibility of transporting CO2 at ExxonMobil's Cepu block in East Java.
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RISK MANAGEMENT & WELLBEING
By Tsvetana Paraskova Paraskova
Risk Management and Well Being in the Energy Industry
Specifically in the UK Continental Shelf, companies have had to manage pressure on balance sheets, as well as the challenges associated with ensuring safe offshore operations and risks to investments due to the pandemic, the offshore industry body OGUK said in its Business Outlook 2021 earlier this year. During the early days of the pandemic and the first lockdowns globally and in the UK, companies responded to the oil and gas price collapses and reduced offshore personnel levels by around onefifth to help manage COVID-19 exposure risk, OGUK estimated. “Companies continue to face a range of pressures such as investor confidence, rebuilding balance sheets, challenges in safely increasing offshore personnel levels, changes to regulatory and policy frameworks and work to incorporate net-zero considerations into projects,” OGUK’s Business Outlook reads. A total of £11.6 billion was spent on the development and operation of UKCS oil and gas resources and infrastructure last year, down by 23 compared to the £15 billion spent in 2019 and the lowest total expenditure in real terms since 2004, as E&P companies reduced activity and investment in response to COVID-19 safety and operational requirements and sought to conserve cash in unprecedented market conditions. Although total expenditure remains constrained in 2021, OGUK anticipates a slight increase is possible, with spend expected to be between £11.4 billion and £12.4 billion.
The pandemic and the additional safety-related protocols and procedures it brought to the energy industry have highlighted the importance of risk management and well-being, but these aspects have always been a crucial integral part of operations and workers’ safety in the sector.
By June 2021, the number of personnel working in the UK offshore sector had returned to levels not seen since the beginning of the first national lockdown in March 2020, OGUK estimated. For the week ending 13 June 2021, the average number of workers offshore was 11,238, an increase on 10 March 2020 when there were 11,183 personnel on board installations and 4,037 more than the height of the first lockdown in April 2020. “While we welcome this milestone, the safety of our workforce offshore remains our top priority. We encourage those returning to work offshore to maintain those barriers which have been put in place, to protect the safety of themselves and their colleagues. As well as this, we also encourage all members of the workforce to take the vaccine, when offered,” OGUK Health, Safety and Environment Director Trevor Stapleton said in June 2021.
Risk preparedness, assessment, and management have always been on the forefront of industry operators to ensure safe and reliable operations even at times of high uncertainty such as those the oil and gas sector had to undergo in most of 2020 and 2021.
Workers’ Safety
Companies have added to their risk management strategies COVID protocol safety measures such as social distancing and changes in offshore platform roster rotations to minimise risks of outbreaks.
In addition, the well-being of employees in the industry has expanded to include mental health and increased diversity and inclusion in the workforce.
Risk Management Risk management issues in recent years have grown beyond the risk of hazards or safety breaches and prevention of incidents. Exploration and production (E&P) companies, as well as the supply chain, now have to account for risks related to the long-term demand for oil and gas. Many supply chain firms have started to diversify into businesses linked with low-carbon energy sources, providing services and skills expertise to players in the renewables sector, hydrogen, or carbon capture, storage, and utilisation (CCSU).
OGUK and Step Change in Safety said in June they had launched an information campaign to maximise COVID-19 safety offshore. OGUK and Step Change in Safety designed and launched a series of posters and social media visuals as they believe that these consistent, industry-wide messages will not only reduce complacency, but will inform those who may not have been offshore since the pandemic started, to help reduce Covid (and other infectious diseases) transmission offshore. Commenting, Step Change in Safety Head of Communications Kirstin Gove said: “The COVID-19 pandemic has had an impact on the way that we all work and has made us reassess how we protect people to help minimise them contracting similar viruses in the future.”
The total cost of decommissioning UKCS offshore oil and gas infrastructure has reduced to £46 billion
For oil and gas companies, risk management now includes being proactive to reposition themselves in the energy transition. Some of the largest European energy firms, including bp, Shell, TotalEnergies, Equinor, and Eni, are investing growing amounts of cash in low-carbon energy sources, aiming to slash emissions and remain attractive investment cases in the future. Oil and gas operations remain their “cash engines” for increased investment in renewables, transport electrification, biofuels, hydrogen, or CCSU.
www.ogv.energy I December 2021
Apart from the economic and financial risks related to the energy transition and long-term demand for fossil fuels, the industry continues to work to keep workers safe in the exceptional circumstances that the COVID pandemic has posed over the past year and a half.
Trevor Stapleton
“As we move forward in these unprecedented times, we will continue to share examples of how different organisations are reminding colleagues of the guidelines so that, as an industry, we can continue to work together to protect our workforce,” Gove added.
OGUK’s Pandemic Steering Group worked with key stakeholders to put in place the necessary COVID barriers to enable people to return to work safely, the industry association said in its Workforce & Employment Insight 2021 in August 2021. These included the introduction of pre-mobilisation temperature checks and testing, snoods for offshore travel, COVID-secure medevac capabilities, and safe passage arrangements to allow offshore workers to travel to heliports.
Well Being Workplace safety and measures to minimise the possibility of COVID spreading are just a part of the well-being of employees in the industry. The sector is increasingly working to include in well-being fair work principles, mental health, emotions, inclusiveness, diversity, and prospects for employment in the energy transition.
RISK MANAGEMENT & WELLBEING “Recognising when workers feel, and believe, they are being treated fairly provides a greater benefit to all stakeholders and supports greater job satisfaction, safer working environments, improved performance and productivity, increased engagement, healthier lifestyles, and improved wellbeing,” OGUK said in its workforce report. Fawaz Bitar, Chair at the International Association of Oil and Gas Producers, said at the OGUK HSE Conference 2021 in March: “Mental health and well-being are perhaps becoming the number one threat to companies enjoying the benefits of a thriving workforce. This may not have been an industry priority in the past but has now been brought to the fore during the pandemic. Leaders have cited numerous examples: employee burn-out, relentless organisational change and a culture to be constantly ‘switched-on’ are just some of the problems noticed around the industry. Fawaz Bitar
“We must value our people, help them develop the skills they need, empower them and then let them unleash their potential.”
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RISK MANAGEMENT & WELLBEING
REMOVE THE HAZARD or remove the person?
Removing a hazard is the primary method for reducing risk. If a tank or vessel needs to be inspected it is commonplace to remove harmful gases by purging or ventilating, to add lighting, build access platforms, along with many other mitigations and control measures. All of these measures need to be in place to protect the people completing the work in confined or difficult to access spaces. Spectis Robotics are passionate about remote inspection technologies, and believe that removing inspection personnel from hazardous locations and environments can often be easier, cost effective and safer than removing the hazards. Case Study: Sediment (carried over during bunkering water from supply vessels) accumulates in water storage tanks in offshore platforms, and may affect water quality if significant quantities are present. In order to remove sediment, the tanks have to be drained and personnel enter the
tanks (under a confined space work permit) and manually remove the sediment. In response to a customer enquiry, Spectis developed the Self-Contained Underwater Vacuum Accessory (SCUVA) to aid in the recovery of sediment from potable water storage tanks. A powerful pump on board the SCUVA draws sediment through a fine mesh filter, which retains the sediment within the body of the SCUVA for disposal once the SCUVA has been retrieved. The SCUVA is deployed by the Deep Trekker DTG3 ROV through a maintenance hatch in the top of the water tank, removing the need for any personnel entry, or draining of the tank.
Please contact Spectis Robotics for more information on remote inspection equipment, including the Deep Trekker DTG3 and the SCUVA: 01224-701444, www.spectisrobotics.com
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RISK MANAGEMENT & WELLBEING
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PAYING HEED TO WEAK SIGNALS pays off
What do you do if your engine warning light comes on when you are driving your car? Book your car in to the garage? Or ignore it completely? The engine warning light in your car is designed to alert you to a problem that may be just around the corner, so you can take action, and avoid a potential breakdown or accident. What is the equivalent of an engine warning light on an oil and gas installation offshore? How do we know if a major accident is just around the corner? We hear a lot about companies celebrating their personal safety record. ‘365 days without a Lost Time Incident (LTI)’, or ‘Project completed LTI free’. Such achievements should rightfully be celebrated, but they are about as useful an indicator of process safety performance as your car manufacturer’s factory floor LTI record is an indicator that your car is about to break down. The trouble is that these are personal safety metrics, not process safety. Personal safety describes the higher frequency, but lower consequence events that are normally limited to harming individuals, such as falls from height or manual handling incidents. Process safety is what we all do to prevent major accidents. These are the much lower frequency, but higher consequence events such as fires and explosions, dropped objects or ship collisions, which have the potential to result in the death or serious injury of multiple people and/or significantly damage the environment. Here’s the rub though: the underlying causes of process safety incidents can be very difficult to spot beforehand. Nonetheless, investigations into process safety incidents have consistently flagged up noticeable warning signs that a problem was developing prior to the incident occurring. These are known as weak signals. Operators with robust process safety management systems in place actively search for weak signals. These often include the number of small hydrocarbon leaks, the amount of critical maintenance backlog, or number of near-miss incidents. They must act upon weak signals in the same way that we should call a mechanic if an engine warning light comes on.
David Jamieson is the founder of process safety firm, Salus Technical, which works with customers to help them better understand and manage the risks of major accidents within their operations.
It could be argued that the industry’s engine light started flashing at least three years ago. That was when Director of the HSE’s Energy Division, Chris Flint, stated that the offshore industry was ‘perilously close to disaster.’ Arguably, the situation has not improved significantly. But what weak signals do we have available to us as the wider industry? We know that the number of hydrocarbon releases that occur offshore in the UK have increased year-on-year since 2018. Independent research has also revealed that over 60% of managers in the oil, gas, and renewables sectors outlined concerns in their organisation about the possibility of a major safety incident occurring over the next five years. Over two-thirds of that same group reported that safety investment or training within their company has been cancelled or delayed due to the pandemic. And finally, the number of non-compliance issues found by the HSE during offshore inspections has doubled since 2014, with the issues most commonly identified relating to maintenance and operating procedures.
While there is no doubt that these statistics provide cause for concern, there are actually straightforward steps that the industry can take to reverse the trend. It’s incumbent on any organisation which operates with the risk of a major accident occurring to actively search for weak signals, and take appropriate action if any are found. Typically, these are expressed as Key Performance Indicators (KPIs), and are reported on a process safety dashboard. This system provides ongoing assurance that risks are being monitored and controlled, which in turn improves reliability and avoids complacency. Performance against KPIs should always be communicated to the entire workforce to provide reassurance that management prioritise process safety, and that progress is continuously being made. Maintaining vigilance of this system, actively taking steps to address weak signals, and an ongoing open dialogue with team members – this is how we, as an industry, prevent that warning light turning into something with far greater consequences.
Salus Technical offers three complementary services: online software packages including Bowtie Master, which allows customers to visualise their risks and communicate them with their team; process safety engineering support, and a range of tailored and on-demand training courses. For more information visit: salus-technical.com
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RISK MANAGEMENT & WELLBEING For example, MatthewsDaniel has recently been awarded a project to support the development of a new offshore CCS project in the Netherlands, where it will support its customer with warranties around the pipeline installation, the integration of the pipeline into an existing platform and boat landings on the platform. This utilises the company’s decades of experience as a Marine Warranty Survey provider on a new type of project that is enabled by tried and tested offshore construction methods. MatthewsDaniel has an unsurpassed global reputation and is a trusted partner the world over with recent project successes in Europe, the Middle East, Asia, Bangladesh and Russia and a host of industry firsts under its belt.
THE IMPORTANCE OF RISK MANAGEMENT in energy transition
Energy transition is arguably both the biggest opportunity and challenge faced by the oil and gas sector in recent times.
need to utilise the expertise that exists in the traditional oil and gas sector as we transition to this new broader energy mix.
With legislative commitment around reducing carbon emissions, ESG requirements and maturing fields, there is increasing pressure for change. However, businesses across the industry are already taking the opportunity to transfer their expertise from traditional sectors to contribute to the refreshed renewable energy mix.
“We work with our clients to support them on this journey, helping limit their potential exposure due to unforeseen risk as they transition to new areas, whether that’s decommissioning existing oil and gas infrastructure or moving into the construction and operation of new renewable energy projects.”
But as any offshore service provider will know, the sector comes with specific risks – and moving into a new area of business means the threat from operational risk can be increased.
Decommissioning activity is continuing to increase in mature fields such as the UKCS. In these fields, where there are vast amounts of existing infrastructure, there can be a real risk of damaging not only visible assets, but also remaining subsea infrastructure as work is carried out to safely remove and dispose of assets that are decades old and weigh up to 25,000 tonnes.
As a result, how companies manage that risk, both from a profitability, reputational and responsibility standpoint, is critical. MatthewsDaniel, a global leader in specialist services for the marine and energy industries and their insurers, works with customers across the world to help manage risk in traditional oil and gas, while also working with companies as they transition to a broader energy mix. MatthewsDaniel is perhaps best known for its expertise working with clients in post-risk events – such as loss adjusting – but also supports customers in pre-risk situations, with services such as Marine Warranty Surveys (MWS), risk surveys and wider proactive risk reduction services. Simon Ward, Director and Chief of Staff at MatthewsDaniel, said: “The global demand for energy is only going to increase, and the need for reliable, increasingly green supplies, will continue to grow. “As a global community, we are all committed to the transition to a cleaner supply in order to meet the ambitions set out in the COP26 agreement, limiting global temperature rises to within 1.5 degrees C, and to do this we
www.ogv.energy I December 2021
Just one of these was the support provided as MWS on the first tension leg platform (TLP) in the Gulf of Mexico, where MatthewsDaniel provided services from a technical engineering review of the full project scope and suitability surveys of all marine assets to transport and discharge of the TLP hull from Asian to Gulf of Mexico fabricators and it’s tow and installation to site, including the mooring and suction piles installation and hook-up. MatthewsDaniel has recently strengthened its commitment to the UKCS, and its North Sea clients in particular, with the opening of its new office in Aberdeen. This will allow MatthewsDaniel, which is a Bureau Veritas Group company, to enhance its offering to clients in the region, providing them with the rapid solutions they need while many are working to navigate the energy transition and manage the associated risks.
However, with proper support and project management, clients working with MatthewsDaniel can help protect themselves from potential insurance claims.
While involvement with MatthewsDaniel can be mandated to energy companies as part of the insurance requirements of their project, the company has many clients who proactively engage without any mandated requirement as they see the value of independent experience and input as this will ultimately help them deliver a successful outcome and reduce the risk of unforeseen costs arising, impacting their budget.
Simon added: “The earlier we can engage with clients, the greater benefit we can add to their project. For instance, we can make recommendations for engineering or operational procedures, vessel types, vessel routing or plan changes earlier that could avoid potential challenges and unforeseen costs.”
Simon added: “The cost pressures on the energy industry are a continuing challenge and we always want to work in partnership with our clients to make recommendations and support them in offsetting additional pressures to both their budgets and reputations through our risk assessment services.
Beyond decommissioning, the broader offshore renewables sector – including carbon capture and storage (CCS), fixed and floating wind turbines and wave power – offers even more opportunity for skills transference where there is some alignment in activity. Whilst this also has its own challenges that oil and gas companies will need to face, there are a lot of readily transferrable skills and experience from the traditional offshore sector that are equally applicable in renewable energy.
“We want to make it as easy and as fast as possible for them to get that support and that’s why we have made the commitment to our office in Aberdeen giving immediate local access to our expertise for operators in that area. “The excitement around the opportunity and challenge of the energy transition is something MatthewsDaniel is prepared for, and we look forward to supporting our clients as they move into this new phase in their businesses.”
Operating since 1962, MatthewsDaniel’s experts are world-renowned in conducting specialist technical reviews both onshore and offshore for critical project phases and activities, employing a well-researched and qualityassured approach to identify and advise on measures to mitigate and minimise risk. For more information, visit www.matdan.com
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Andy shares his top ‘Do’s & Don’ts’ to consider when managing risk:
THE DO’S & DON’TS
of managing risk
A risk can be: • A threat (negative) or, • An opportunity (positive) Threats & opportunities both need managed to enable the best outcome.
People manage risks every day but most of the time are unaware that they are doing it. As in everyday life, risk management in any work-related sector is the process of identifying, analysing and managing risks that could arise and the best approach is to keep it simple.
There are 3 main components of risk management • Risk identification – simple review of an activity to highlight risks. • Risk assessment – An evaluation of the risks to determine how likely they are to occur and also how big an impact they could have if you don’t take steps to manage it. • Risk mitigation – putting steps in place to manage the identified risk.
All businesses & projects have risk as they are trying to achieve targets that are unique, constrained, based on assumptions, performed by people and subject to external influences. Andy Sutherland, founder of Prism Energy who provide digital solutions & consultancy services to help companies manage projects & risk, explains, “I started the business to help people realise that effectively managing risks will help improve performance & results. Risk management really is a simple process if followed and managed correctly, we just need to reaffirm the three-step process, Review – Identify – Manage.” Andy continues, “Our Prism Project Management system is now used by thousands of people around the globe and has been built to give people a simple platform to manage key elements of a project including risk.”
DO - be clear on your targets to ensure a focused approach to identifying risks. This will massively improve how effective you are at achieving your targets DO – score risks honestly in terms of likelihood & severity. All too often we see risks that are massively over scored. DO – discuss risk at all levels in the business. A successful approach to risk management has to be led by management to ensure everyone is engaged. DO – get an external input. It’s easy for teams to convince themselves as a group that everything is ok and miss something important. Using someone with relevant experience will bring the most benefit. DO – look to improve your process regularly. The more effort you put in the more effective you will become. DO – have an agreed risk matrix that is suited to your business. If the scoring criteria is unsuitable it will incorrectly either highlight or downgrade risks. DO – be proactive in how you manage mitigations. If you’re not going to do work to manage identified risks then there’s no point doing it. Tracking progress of actions will drive you to better performance levels. DON’T – forget that the most successful companies are great at managing risk. It creates a competitive edge & makes them more resilient. DON’T – forget that risk management is a simple process. Review – identify – manage. DON’T – just focus on negative risks. A risk can be a threat or an opportunity & most businesses ignore the opportunities completely. DON’T – use spreadsheets if you have more than one risk register in your company. There are systems available that will improve how you manage & communicate risk within your company that will save you time & don’t cost a lot. DON’T – forget to read ISO 31000 for guidance and advice on effective risk management strategies. This will help you plan how to improve your process for managing risk including introduction of advanced methodologies like probabilistic analysis. DON’T – let your business view risk management as a drag or a tick box process. This will lead to frustration within the company and a poor output. DON’T – use the risk management process to try and artificially put focus on a certain risk. This will waste the time & resources of the company.
Andy Sutherland has experience in managing a number of projects in the North Sea and provides consultancy advice to many large capital & decommissioning projects. For further information on Prism Energy and how they can help your company manage projects & risk, visit: www.prismenergy.co.uk or call 01224 061786.
Corporate financial planning simplified. financial planning simplified. RISK MANAGEMENT & WELLBEING
28 Corporate
At Futura, we take a refreshingly different approach to financial planning. At Futura, we take a refreshingly different approach to financial planning. Our philosophy is that money is intrinsically linked to is our sense of wellbeing. Our philosophy that money is intrinSo, while ‘money doesn’t you hapsically linked to our sensebring of wellbeing. piness’, this statement is only partially So, while ‘money doesn’t bring you haptrue. Money is a conduitisthat us piness’, this statement onlygives partially opportunities choicesthat around true. Money isand a conduit giveswhat us we do with ourand time, how we takewhat care opportunities choices around of health, wehow support our care loved weour do with ourhow time, we take ones, enables us tosupport make memories ofAberdeen-based ourand health, how we our loved financial planning firm, and leave meaningful legacies. ones, and enables us to make memories Futura, has partnered with WorkLife by OpenMoney, the employee benefits and leave meaningful legacies. platform, to bring employee Over the last twohigh-quality years, every individual benefits to a broader range of businesses has been on a personal journey through Over the last two years, every individual across Scotland. the pandemic. Some havethrough found has Covid been on a personal journey positives in it, while others have been the Covid pandemic. Some have found Through this close partnership, Futura impacted more severely. One thing will offer in its corporate clients access to is positives it, while others have been WorkLife’s online benefits for certain: we’ve all hadand to wellbeing adapt impacted more severely. One thingtois platform, which supports all aspects of new and often challenging for certain: we’ve all had tothings adapt that to employee wellbeing through a suite of have altered the way we think, thethat way new and often challenging things benefits and services, such as an NHSwe work, and thewellbeing waywe wethink, live our lives. approved mental support app, have altered the way the way financial wellbeing and money management That’s quite lot to process, and we work, anda the way we live our has lives. tools, a range of employee savings and resulted in a abig in mental illness, That’s quite lotrise to process, and has discounts and easy access to a range of stress, exhaustion and physical illness. resulted in a big rise in mental illness, sought-after insurances and protections. stress, exhaustion and physical illness. AsThe annews employer, havingboth a team inand your demonstrates Futura continued commitment to business that is happy, relaxed, fulfilled AsWorkLife’s an employer, having a team in your empowering every business the and energised makerelaxed, allaround the differbusiness that iscan happy, fulfilled UK with the tools to support and reward and energised can make all the differtheir employees.
ence to your company’s success, and ing and finance, preferential insurance also own sense of rates, discounts leading retail brands, enceto toeach your individual’s company’s success, and ing and finance, on preferential insurance wellbeing. importantown – now more and access to ouronhighly flexible also to eachIt’s individual’s sense of rates, discounts leading retail and brands, than ever –It’s that we recognise the need competitive wellbeing. important – now more and access toWorkplace our highlyPension flexibleScheme. and to take care each Thisthe goes than ever – of that we other. recognise need competitive Workplace Pension Scheme. beyond offering the occasional We can also provide personal advice to to take care of each other. This pay goesrise – this isoffering about making life less pay comindividuals, wepersonal go far beyond beyond the occasional rise We can also where provide advice just to plicated, helping your team cope with talking about pensions, – this is about making life less comindividuals, where we goinvestments, far beyond just striking elusive work/life balance and what the stock-market is doing. plicated,the helping your team cope with talking about pensions, investments, and making them feel valued.balance We’ll talk about your goals. Your values. striking the elusive work/life and what the stock-market is doing. The that motivate you. What and making them feel valued. We’llthings talk about your goals. Your values. As financial planners, our role commented: is to makes you that tick…motivate you. What The things Paul Shanahan, Director of Futura, enhance ourplanners, clients’ wellbeing. As financial our roletend is to makes you tick… “Most employee benefitsfinancial providers to focus onstriking the physical aspect wellbeingin but, as the By rightoffinancial balance this area, And most of all, what makes you happy. enhance ourthe clients’ wellbeing. challenges workers evolve, we need to think it can also facing have a huge and positive By striking the right balance in this area, And most of all, what makes you happy. differently about how we can support people in other impact on other areas of their lives as Through an innovative and personalised itessential can also have hugefirst and positive areas too.aWhat drew us to WorkLife well career, physical and cash flow foreimpact on other of their lives asfive key process Throughofananalysis, innovative and personalised was – its e.g. clear focus areas onsocial, supporting workers on pillars their wellbeing – financial, mental, physical, casting mental health. Therefore, we help peotax planning, supported well – of e.g. career, social, physical and process and of analysis, cash flow fore- by social environmental. them, ple useand their money inIna partnering positive way to regular progress tracking, mental health. Therefore, we helpwith peocasting reviews and tax and planning, supported by we will not only continue to strengthen our existing fulfil their changing needs as their lives we helpreviews employers and employees use ple use their money in a positive way to regular and progress tracking, workplace benefits proposition, but also have a hand evolve. money in a way that gives valuable fulfil their changing needs lives of their we help employers and employees use in driving a fundamental shift in as howtheir businesses all sizes view their ability to support and reward hard peace of mind, fulfilment, inner satisevolve. their money in a way that valuable Paul gives Shanahan, Director of Futura working employees.” To further support this, we have partfaction joy.fulfilment, inner satispeace ofand mind, nered with support the WorkLife platform, which To further this, we have partfaction and joy. gives and theirplatform, teams access Futura provides bespoke, simple solutions nered employers with the WorkLife which Paul Chedzey, relationship director WorkLife commented: past 18 months have to a wide range of benefits for at minimal to help provides companies and “The individuals manage gives employers and their teams access by OpenMoney, Futura bespoke, simple solutions shone a real spotlight on the need for workplace benefits that genuinely support people’s overall wellbeing. cost; including access to healthcare their finances and improve their wellbeing. toUntil a wide range of benefits for minimal to help companies and individuals manage now, the options available to corporate advisers who want to provide high-quality, consultancy driven professionals, tools Please getFutura in touch toperfect find out how can cost; including accesshas to been healthcare their that finances and improve their wellbeing. benefits for theirinformation, clients fairly and limited - we believe is the partner towe help us research across a wide to range of subjects support you. start bringing ourinformation, offering the tools wider adviser andget to in take us one to achieving professionals, and community Please touch tostep findcloser out how we can our overarching aim of ensuring the of benefits support and support from mental health support to budgetresearch across a wide range oftypes subjects you.available at large corporates are made accessible and affordable to every employee in the UK.” from mental health support to budget-
FUTURA JOINS FORCES WITH WORKLIFE
to bring top-of-the-range employee benefits to more Scottish employers
Corporate financial Corporate financial planning simplified. planning simplified.
Corporate financial planning doesn’t need to be complicated. Corporate financial planning doesn’t simple need tosolutions be complicated. Here at Futura, we provide bespoke, so that Here at Futura, we provide bespoke, simple solutions so in that you can manage your business with peace of mind. Get you can with peace mind. Get in touch tomanage find outyour how business we can support yourof organisation. touch to find out how we can support your organisation.
Futura +44 1224 582185, info@futurainvestments.co.uk Futura +44 1224 582185, info@futurainvestments.co.uk Aberdeen Business Centre, 11 Bon Accord Crescent, Aberdeen AB 11 6DE
www.ogv.energy I December 2021 Aberdeen Business Centre, 11 Bon Accord Crescent, Aberdeen AB 11 6DE www.futurainvestments.co.uk www.futurainvestments.co.uk
RISK MANAGEMENT & WELLBEING CONTROL OF MAJOR ACCIDENT HAZARDS (COMAH) REPORTS what is there really to know?
COMAH regulation was introduced in 1999 (revised in 2015) to ensure that businesses take all necessary measures to prevent accidents involving dangerous substances. Enforced by the HSE (UK), a COMAH report exists to keep people and assets safe and is required for all organisations that use or store specified volumes of hazardous substances. COMAH reports are not always easy to understand especially for non experts. Many questions can arise within organisations when it comes to a COMAH report. For example, how do you know which COMAH tier applies to your organisation? How do you make the report a ‘living document’ as is now required? How do you make the report useful and useable in practice? DEKRA compiled a series of webinars to answer these questions. WEBINAR 1: COMAH Deconstructed What you need to know
WEBINAR 2: Top Tips to Make Your COMAH Report a Living Document
The HSE and Environment Agencies have developed their position and put great emphasis on a COMAH report being “a living document”. This is important, but it is also a lot easier said than done. This webinar lays the foundations, detailing COMAH report regulation tiers and builds understanding of requirements in each of the sections.
Safety is only real when everyone understands it, everyone has a say in it and everyone follows it. Building on from COMAH Deconstructed- What You Need to Know this webinar explores how we engage everyone in a company with the COMAH report. The HSE now requires it to be a “living document” accessible by and understood by everyone. What are the fundamentals for achieving this? The webinar will be held on the 19th January 2022 2pm GMT.
A recording is now available HERE .
Registration available HERE .
WEBINAR 3: Safety Success: Putting COMAH Theory into Practice COMAH & Beyond… Once the technicalities of COMAH are understood – how do we use the report to maintain drive? Human Factors integrate the process, the plant and the people allowing COMAH and safety culture to integrate into a way of working and a state of mind, not just a process. This final session will introduce you to Human Factors and detail how to create a Culture of Care that builds on COMAH outputs and transcends your organisational safety. The webinar will be held on the 2nd March 2022 2pm GMT.
DEKRA’s promise is to ensure the safety of human interaction with technology and the environment.
Registration opens soon, watch out for it HERE.
Providing specialist services for the identification, analysis, prevention and management of fires, explosions and accidental chemical releases in the chemical and process industry, we work with our clients to develop pragmatic solutions to protect people and assests. For more information visit: www.dekra-uk.co.uk
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RISK MANAGEMENT & WELLBEING
EFFECTIVE RISK MANAGEMENT GENERATES BUSINESS VALUE
here's how your organisation can benefit Organisations of all types face internal and external factors that make it uncertain whether they will achieve their objectives. The effect this uncertainty has on an organisation's development can be referred to as risk. Today's business environment is more competitive than ever, characterised by complexity, rapid change and volatility. For this reason, leading organisations regard risk management as a process integral to decision making. Risk management should be of high concern at all levels in organisations from objective setting through to project execution, and a significant number of companies work with dedicated risk management teams to ensure this risk is identified and mitigated. The perception of risk is moving from tangible aspects towards strategic issues and companies recognise that risk management will play a crucial role in their overall business strategy and affect their performance in the longer term. The concept of risk can signify not only a negative outcome (an incident or a loss) but also a positive outcome (business profit). This is because effective risk management can create value by preparing organisations to take advantage of unexpected outcomes, as well as protecting against threats.
www.ogv.energy I December 2021
Forward thinking, leading companies, are already approaching risk management in a structured manner that is integrated in the overall business strategy. Attributes of companies in this leading group include: • The company has a risk management strategy and has set measurable goals on risk management. • The company uses at least one standard, guideline or framework to define its risk management frame.
But how can organisations judge their readiness and how they rank in terms of managing, and benefiting from, the business risk that occurs in their operations? One of the key methods is to utilise a self-assessment tool to provide a clear understanding of how your organisation operates, where failures may occur, and to generate improvement points for business processes. In this way, the tool offers a structured approach for assessing, planning and testing contingency plans to build organisational resilience. DNV offers a self-assessment suite as part of our range of digital tools developed to add value throughout the training and certification journey. From training and preparing for your first audit to improving your management system and maintaining your certification, our solution always focuses on our technical expertise, riskbased approach and digital tools. DNV is one of the world’s leading certification bodies, providing independent expertise in assurance and risk management, empowering our customers so that critical decisions can be made with confidence.
• Risk management is practiced throughout the organisation. • When self-assessing risk maturity, the company determines that they are a "leading" or "building" business in risk management.
For more information visit www.dnv.co.uk/assurance
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Using the latest survey & inspection technology, including our pioneering Autonomous Robotics Solutions, Laser Scanners, Drones, Remote Visual Inspection & Advanced NDT equipment, we collect accurate & repeatable data from precisely where you need it. A team of problem-solvers, driven by innovation, we work with our clients to fully understand their challenges, selecting the right tool(s) to complete each project safely, efficiently and to the highest standards.
Company Details Website: www.innovair.co.uk Email: info@innovair.co.uk Tel: 01224 434 806 Address: Unit 3 – Energy Development Centre, Claymore Drive, Aberdeen, AB23 8GD, UK
Technology Development stage: Various, with our initial autonomous robotics offering being at prototype Launch date: Initial autonomous robotics offering targeting Q3 2021
www.ogv.energy I December 2021
• Remote Visual Inspection • Laser Scanning • Autonomous Robotics Solutions We continue to enhance these capabilities, with our in-house R&D team focused on developing intelligent robots which can navigate, position, and deliver complex projects in unstructured & dynamic environments. Work remains to be done before the value of robots is fully realised by the Energy sectors, at Innovair our solution(s) aim at progressing the wider adoption of in-service robotics in industrial environments, including offshore oil & gas platforms and renewable assets.
Accurate & repeatable data from precisely where you need it Remote sensing technology has advanced considerably over the past decade and when integrated with robotic technology the applications and use cases will continue to expand over the coming years. Innovair believes that robotics will play a significant part in supporting asset operators to overcome the current and future challenges. As a business our objectives are clear: • Capture the most accurate and repeatable survey & inspection data; • Promote the use of robotics; to complete projects safely in the most complex, dangerous & difficult to access environments. Want to find out more about the solutions we currently offer, take a look at the summaries below.
Drone Survey & Inspection Using our fleet of fixed wing, multi-rotor, and confined space drones, we deliver survey & inspection services across various assets & sites. Our team of experienced engineers use drones to collect and deliver data
INNOVATION & TECHNOLOGY
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INNOVATION &
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with the highest level of accuracy and repeatability. Our stringent procedures ensure our operations are completed safely and we deliver the correct, actionable information to our clients so they can make data driven decisions and examine their assets. We can also provide alternative payload solutions including LiDAR, Thermal cameras and contact NDT.
Our engineers can provide results in a variety of formats, supporting you to make best use of the data. Data can be presented in PDF reports, edited video & photographs, or visualised through point clouds and highly accurate 3D models.
Remote Visual Inspection (RVI) Our RVI solutions enable the safe and effective collection of visual inspection data. Drawing on a wealth of industry expertise, our experienced & competent inspection team are poised to meet your challenges. Our range of state-of-the-art remotely deployed inspection systems are used for a variety of applications. Working with our clients, we collect the required data from the most difficult to access areas on their assets. Using systems including push rod/drop cameras, crawler vehicles and bespoke robotics, fitted with LED lighting, 360° pan & tilt camera functionality and the appropriate centralisation or adhesion solution for the task at hand, be that internal pipe work, tanks, vessels, towers, exhausts, wind turbine monopiles, blade internals or otherwise.
Laser Scanning Using the latest laser scanning technology, our teams capture accurate as-built information quickly, delivering holistic data sets to an internal accuracy of +/- 5mm. Combined with HDR panoramic images, the colourised point cloud data outputs provide a digital visualisation of your environment, with the ability to extract measurements. Highly accurate data sets are
produced efficiently providing our clients with the data they need, when they need it.
Working across multiple sectors, our data collection techniques are extremely transferable. Whether your asset is below or above ground, a confined space or at height, we will provide a solution to capture actionable point cloud data. Our team of Chartered Surveyors & Site Engineers deliver highly accurate measured surveys to enhance decision-making, reduce costs, save time, and improve safety.
Advanced NDT Using a tethered drone fitted with a modular robotic arm, Innovair can collect ultrasonic thickness (UT) measurements across a range of structures, at various angles. The highly accurate, real-time and web accessible data makes the decision-making process faster and more efficient. Innovair are also preparing to launch a series of automated NDT scanning systems from late 2021. Designed for a range of in-service inspection requirements, our solutions will draw on the experience of our team and support our Energy clients to capture highly accurate and repeatable inspection data from across their assets. Deploying quantitative inspection techniques, via intelligent robotics, for challenging areas such as underdeck, splash zone, internal structures, pipework and confined spaces, will allow us to collect rich “as-found” data and give our clients a thorough understanding on current condition.
people safe and to enable sustained production in a changing economic climate. Our R&D team are developing a fleet of intelligent service robots which can navigate, position, and deliver complex services in dynamic & unstructured environments. With these pioneering solutions offering a modular and flexible approach, the systems will adapt to different types of structures and surfaces, selecting the correct approach for each task, integrating with tethers, tooling, light and heavy lift platforms as required. Advanced control solutions & continuous monitoring will enable SIMOPS and safe integration with human teams around them.
Selecting the right tool(s) to complete each project safely, efficiently and to the highest standards At Innovair, we have an ambitious team working towards common goals. We look forward to continued engagement with our clients’ and wider industry as we expand our business through 2021 and beyond. We aim to provide autonomy, safety and cost efficiency to our clients, whilst focussing on innovation, advancing technology and continuously developing the competency of our experienced personnel.
Functions and Benefits • Capture accurate & repeatable survey & inspection data from precisely where you need it. • Remove the need to put personnel at risk. • Access dangerous environments more effectively.
Autonomous Robotics Solutions We envisage a world where robots are used to complete the most dangerous of tasks, in the harshest of environments, in order to keep our
• Achieve cost reduction through data & technology.
INNOVATION & TECH SPONSORED BY
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RENEWABLES SPONSORED BY
Step into a safer environment High quality, industrial anti-slip safety products.
www.scotgrip.com
For over 30 years, we’ve designed and manufactured market-leading anti-slip safety products that hugely improve safety standards on stairways, walkways, decks, ladders, ramps, gangways and pipes, in a range of industrial settings.
RENEWABLEUK RELEASES
floating offshore wind intelligence report There is no one solution to the challenge posed by climate change. Indeed, our netzero ambitions can only be realised through a combination of different innovations, cross-industry collaboration and nationwide dedication. Floating wind is only one part of the jigsaw, but it has been heralded for its potential to become a major contributor to decarbonisation both in the UK and further afield. As the professional association presenting all areas of renewable energy in the UK, RenewableUK has published its latest report on floating offshore wind to demonstrate how far we have come and how far we could yet go in the future.
www.ogv.energy I December 2021
THE CURRENT LANDSCAPE One of the key findings of RenewableUK’s latest Floating Offshore Wind Project Intelligence report is that global floating offshore wind has the potential to deliver an estimated 54GW of offshore wind, if the vast number of projects around the world currently in development are fully constructed. Some of the biggest players in the market include Oceanex, OX2, Iberdrola, Renexia, Equinor and TotalEnergies, and projects are being progressed across Europe, East Asia, North America and Australasia.
Across the whole of Europe, approximately 19,500MW is currently being developed and lease auctions are underway that could result in an additional 9,800MW of floating wind projects depending on their outcome. As would be expected by the UK’s trailblasing approach to innovation and supply chain optimisation across the entire renewable energy field, our pipeline of projects continue to lead the way with a capacity at 8,808MW, compared to Ireland’s 7,700MW, Sweden’s 6,227MW, Italy’s 3,654MW, Norway’s 1,611MW and Spain’s 1,477MW. Looking further afield, there is an estimated 16,345MW of floating offshore wind capacity in development around the world, outside of Europe. Approximately 5,460MW is also currently moving through the leasing process, with countries such as Australia, South Korea, the USA, Taiwan and Japan demonstrating the most growth in floating offshore wind.
RENEWABLES
THE FUTURE OF FLOATING OFFSHORE WIND The global forecast for the sector is nothing but positive right now. Nearly all markets around the globe are predicted to grow in the next ten years, with significant development expected in Northern Europe. Both the UK’s commissioning activity and forecasted growth are greater than that of any other individual country within Europe, keeping Great Britain at the forefront of the industry for at least the next decade. On a global scale, South Korea and Taiwan are expected to deliver a substantial proportion of the projected expansion in floating offshore wind until 2029, at which point the USA and Japan are set to contribute in a big way as well.
THE BIGGER PICTURE Floating offshore wind is just one part of the complex solution that renewable energy will deliver in our quest for global net-zero. With the opportunity to upscale capacity surpassing that in several other green energy sectors, it is likely to be a major contributor. In the UK, the government has set a target of 1GW of floating wind capacity by 2030. Speaking at RenewableUK’s Floating Offshore Wind 2020 event, in his previous role as the Minister for Business, Energy and Clean Growth, before he was promoted to become the Energy Secretary, Kwasi Kwarteng, said floating wind would play a major role in the UK's future energy mix. He described it as "a hugely exciting opportunity and a dynamic area of growth which sits squarely and centrally in the Government's goal to reach net-zero emissions by 2050". The Minister emphasised that early deployment will create long term economic growth and industrial benefits, ensuring that supply chain benefits are captured in the UK. He added that
there is no reason why the UK cannot seize the opportunity of world leadership in this technology. Though many appreciate that floating offshore wind has been directly recognised, there have been several calls to increase the 1GW target to encourage maximum growth in the sector. With even greater support, there is widespread potential to accelerate development in the field and fully utilise the opportunities afforded by locations currently being established, such as the North Sea and the Celtic Sea. It is now up to world governments, project designers, developers, manufacturers, stakeholders and other organisations throughout the global supply chain to help realise the potential of floating offshore wind. Rhys Thomas, Information Manager at RenewableUK, comments: “The recent RenewableUK Offshore Wind Project Intelligence report demonstrates the massive opportunities within floating offshore wind both here in the UK and around the world. It is interesting to note how the UK compares to other countries around the globe when it comes to floating offshore wind, with a larger pipeline proposed here than anywhere else. Though other markets in countries such as South Korea, Japan and Australia could grow exponentially in the coming years, our world ranking is a testament to our focus on innovation as well as our established leading position in fixed foundation technology offshore wind. “With all this in mind, floating offshore wind is likely to become a major contributor not only to the production of green energy and the realisation of net-zero, but also for world economies as it creates employment opportunities for a highly skilled workforce. “Training and the transfer of skills from existing industries into floating offshore wind is just one way to support growth of the sector. We also need to see the continued fast-paced development of technologies, a higher level of ambition from Government on deployment targets and considerable investment from the private sector.” As all of these areas come together, the UK will be able to move floating wind projects into deeper seas. There will also be much inspiration and knowledge to be shared with other countries and experiences to be learned from as we all work towards a greener planet. For your copy of the RenewableUK Offshore Wind Project Intelligence Reports, contact RenewableUK to become a member today at www.renewableuk.com
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Infinity Partnership: Your Partner in Business Infinity Partnership is an award-winning, multi-disciplinary accountancy and business advisory practice, with a proactive approach to customer service.
www.infinity-partnership.com
Infinity has been a five-time winner at the British Accountancy Awards and has been a three-time finalist at the Scottish Accountancy Awards in recent times.
Craig International secures over £5m in new contracts with Altera and Bilfinger Salamis UK The first contract will see the Aberdeen headquartered, global business source and supply oilfield consumables for Altera’s UK and Brazil operations while the second includes the provision of third-party procurement for goods and services to Bilfinger Salamis UK’s onshore and offshore business.
Craig International has secured two three-year contracts with global energy services firms Bilfinger Salamis UK and Altera Infrastructure, worth a combined value of more than £5m. The energy procurement specialist attributes the new wins to the efficiencies delivered by their market-leading digital platform, ebuy. Craig International is able to source products globally for local supply with attractive fixed prices for the duration of the contracts, avoiding timeconsuming requisitions for recurring orders.
Both deals, secured through competitive tender, will use Craig International’s ecobuy service which offers customers the option of more environmentally friendly and less wasteful products. With a more sustainable approach to procurement, the service also limits logistical requirements for the delivery of products by combining orders to further reduce the industry’s carbon footprint. The work will be delivered from Craig International’s base in Aberdeen with a dedicated team working on the contracts for the duration of the three-year projects.
Carol Ross, general manager of Craig International in Aberdeen, explained: “The new contracts with Altera and Bilfinger for Craig International reinforce our position as a market leader in procurement with a clear differentiator through our approach to efficiency with our digital platform, ebuy, and to environmental performance with ecobuy. “As our customers ramp up their efforts to reduce the carbon footprint of their operations, ecobuy is ideally placed to support industry targets by making a real difference, not only through the use of less plastic and less wasteful products but also in the way they are procured to reduce the number of journeys by lorries and vessels. “We’re looking forward to working closely with both companies over the coming years to streamline their procurement processes and provide a more sustainable, technology-led offering.”
80 new jobs created as PD&MS wins three-year North Sea contract with Dana Petroleum construction on Dana’s Triton and Western Isles FPSO assets in the North Sea. PD&MS chief operating officer Liam O’Neil said: “This contract with Dana Petroleum underpins our leading market position. We look forward to working in partnership with the team at Dana to unlock maximum efficiencies through delivery of safe, predictable, and sustainable solutions.
International engineering and construction company, PD&MS Group has further expanded its customer portfolio, securing a significant modifications contract with Dana Petroleum which is expected to create up to 80 jobs at its Aberdeen base. International engineering and construction company, PD&MS Group has further expanded its customer portfolio, securing a significant modifications contract with Dana Petroleum
www.ogv.energy I December 2021
“We have an extensive track record of delivering rightsized and innovative modification projects across the full asset lifecycle and combining this with our wellestablished decarbonisation expertise and experience means we are very well placed to deliver lower carbon and lower cost modifications to Dana over the term of the contract.” which is expected to create up to 80 jobs at its Aberdeen base. The contract, which is for an initial three years with options to extend to five years, forms part of a Dana Petroleum strategy to create increased longer-term value through contractor consolidation in the modifications space. The award will see PD&MS carry out a range of engineering modifications and execute offshore
Eiko van Dalen, chief operating officer at Dana Petroleum said: “We are really pleased to award this contract to PD&MS. It represents an opportunity to build a new partnership together. Our aim is to offer clarity and commitment to our supply chain partners through a series of three-year contracts, all of which include options for extension. Taken together, they represent a £71 million pound commitment to the regional economy over the next three years.”
CONTRACT AWARDS Saipem awarded SURF contract for Búzios 7 project Saipem has been awarded a new SURF EPCI contract by Petrobras for the installation of a rigid riser-based subsea system for the Búzios 7 project, to serve the pre-salt field located about 200 km offshore the state of Rio de Janeiro, in water depths of around 2000 m. The project awarded to Saipem includes the Engineering, Procurement, Construction and Installation (EPCI) of the Steel Lazy Wave Risers (SLWR) and associated flowlines interconnecting 15 subsea wells to the FPSO together with the related service lines and control umbilicals. Furthermore, Saipem will also be responsible for the provision and installation of the FPSO anchors and for the hook up of the FPSO at field. Saipem will use its FDS, its field development ship, for the installation of the SLWRs.
In July 2020 Saipem was awarded a contract by Petrobras for the Buzios 5 project for the EPCI of the SLWR and associated flowlines between all wells and the FPSO. Francesco Caio, CEO and General Manager of Saipem commented: “This project is a further important evidence of a new investment cycle and of Saipem's competitiveness in projects with a high technological content. The contract also confirms the trust placed in Saipem by major clients such as Petrobras for the realisation of projects central to their strategies, as well as it confirms the solid position of the company in geographic areas with significant development prospects."
KCA Deutag secures land drilling contract extensions in Middle East KCA Deutag has been awarded contracts worth almost US$185 million from exploration and production companies across key markets in the Middle East region. Multiple rig extensions have been confirmed in Saudi Arabia, representing 13 years’ work across three rigs, and in Oman, 1-year contract extensions have been awarded for two heavy 2000 hp rigs. Simon Drew, President of Land, commented: “These awards are a sign of rising confidence in our core markets as we increase and sustain activity following the
COVID-19 pandemic challenges and resulting reduction in oil demand. We have invested significantly in the Middle East and these contract extensions illustrate that our strong operational and technological performance is delivering value for our clients in the region. The awards contribute towards building a strong and secure future for KCA Deutag in key core markets and stimulate further growth as we leverage our Group-wide experience and expertise to further develop our customer-centric, Well of Innovation technologies and continue to make our rigs more energy efficient.”
Aquaterra Energy secures $4.4 million conductor tensioning contract offshore Gabon Aquaterra Energy, a leader in global offshore energy engineering solutions, has been awarded a $4.4 million (USD) contract with BW Energy to provide procurement, engineering, manufacture, installation, and commissioning support of multiple conductor tensioning units for the repurposing of the Hibiscus Alpha jack-up rig to an offshore installation (OI), located offshore Gabon, West Africa. As part of this contract Aquaterra Energy will provide its new digital tensioning monitoring system, which will remotely monitor the tension applied via an app. The technology will monitor the tension being exerted on each riser, sending real-time data about the tension tolerance to BW Energy engineers off and onshore. Reduced human error and instant alerting create major safety improvements, while the long-term benefit of the data will enable operators to monitor asset fatigue over time, resulting in safer and more cost-efficient operations.
in Dubai. Once the rig is shipped and commissioned offshore Gabon, Aquaterra Energy will provide training and support to upskill the local workforce. “This is a first of its kind project for us in this region. West Africa continues to be a prominent market for our services and we’re building an impressive track record for our riser and well solutions, alongside offshore platform development. Our engineering philosophy is built upon providing intelligent
solutions that create project efficiencies, enhance safety and reduce risk. I’m pleased we can now add digital solutions that provide real-time data for our customers into that mix.” said Andrew McDowell, Operations Director at Aquaterra Energy. The announcement follows Aquaterra Energy’s recent partnership to repurpose jack-up rigs for green hydrogen production as well as its latest Sea Swift contract wins offshore Angola.
The rig modifications and installation of the conductor tension units will take place
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ON THE MOVE SPONSORED BY
Norman Broadbent
John Begley, MD
We have a simple and straightforward objective: to help our clients manage and successfully drive change, mitigate risk, grow, and succeed.
www.normanbroadbent.com
Jill Ogilvie
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Mark Cowieson
3t Energy Group strengthens leadership team with new appointment
Leading training and technology organisation, 3t Energy Group, has appointed a new director of strategic projects to support the business as it enters its next exciting growth period. Jill Ogilvie will work with the senior management team on a range of strategic initiatives to help 3t Energy Group cement its leading position in the global training sector and realise its ambition to transform training with technology.
Matt Street Maarten Wetselaar
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Our portfolio of integrated Leadership Acquisition & Advisory Services, coupled with our #ClientFirst philosophy, collaborative innovative culture, and trusted brand, makes us a proven business partner.
Maarten Wetselaar Becomes New CEO of Cespa
Cespa announces the appointment of Maarten Wetselaar as new CEO. Maarten has over 25 years within the industry and is joining Cespa from Royal Dutch Shell where he was Director Integrated Gas, Renewables and Energy Solutions Director. Maarten I will join Cespa in January 2022 and will be responsible for accelerating Cespa’s energy transition strategy.
www.ogv.energy I December 2021
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Mooring and safety equipment specialist appoints Mark Cowieson as new CEO
LHR Marine, based in Aberdeen has announced the appointment of oil industry veteran Mark Cowieson as its new Chief Executive Officer (CEO). Cowieson will head up Corporate Strategy, Business Control and Management Review, bringing with him a wealth of knowledge to ensure that the organisation's structure and processes meet the strategic and cultural needs of the organisation.
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EV Private Equity (EV) appoints Shell’s Ulrika Wising to its advisory board
Ms Wising is currently VP of Global Customer Solutions at Shell and being knowledge from a career in business across the energy sector. She joined Shell as VP of Strategy & Portfolio in 2019 where she helped to establish Shell’s first capital investment forum for power projects, a committee that she subsequently chaired. EV says they intend to leverage Ms Wising experience and insights as it continues to develop its portfolio with a particular focus on decarbonisation.
David Bucknall
Alan Linn
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Ulrika Wising
Alan Linn Resigns From His Role As CEO At Providence Resources
After less than 2 years in post, following a review of the future development of the Barryroe project, Cork. Mr Linn said: “I have decided to step down from the board to devote more time to my other business interests,” said Mr Linn. “Following the recent strategic decision by the board to take the management and financing of the Barryroe project in-house, this is the opportune time to hand over to new leadership.” Providence’ Chairman, James Menton, will assume that tole of executive chair until the permanent successor is appointed.
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David Bucknall Becomes New CEO of Ineos Energy
Ineos Energy announces David Bucknall as their new CEO. David joins Ineos from bp where he was SVP of Refining & Products Trading and Low Carbon Trading. David Bucknall joins the company from oil and gas giant BP, where he was head of the global oil & low Carbon trading businesses. He has previously held “senior financial, commercial and risk management roles”, with a specific focus on “new business development, renewables, and clean energy”. .
ON THE MOVE
Sean Buchan
Thomas Schulz Phuthuma Nhleko
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Phuthuma Nhleko Announced As non-executive Chairman of Tullow Oil plc
Phuthuma Nhleko announced as new nonexecutive Chairman of Tullow Oil plc with effect from 25th October 2021. Mr Nhleko takes over from Dorothy Thompson, CBE, who will steps down as Chair and retires from the board by the end of the year. Mr Nhleko has extensive experience in emerging markets with over 30 years of working across Africa. Currently, Phuthuma is Chairman of Phembani Group, an investment group which he founded in 1994, and is Chairman-designate of the Johannesburg Stock Exchange Ltd. Phuthuma is also a non-executive Director of South African downstream energy company, Engen Petroleum, and a non-executive Director of IHS Towers, the NYSE-listed Emerging Markets Telecom Infrastructure Provider. .
David Mitchell
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OSSO accelerates Middle East growth with strategic hire
OSSO, the specialist fluid temperature control and separation solutions provider, has appointed David Mitchell as Middle East Manager in Dubai, UAE to implement its regional growth strategy. David brings 23 years of industry experience, having previously worked in global operational leadership roles at Hoover Ferguson and FMC Technologies, with a particular focus on the Middle East. His extensive energy sector knowledge has seen him successfully grow plans in prior roles, leading multimillion-dollar projects and ensuring design standardisation across oil and gas products. With a wealth of experience across the Middle East, and his understanding of client challenges in the oil and gas market will be essential in spearheading OSSO’s regional growth.
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Thomas Schulz Announced as New CEO Of Bilfinger
Bilfinger announces the appointment of Thomas Schulz as its new CEO, effective from March 2022. Mr Schulz has a several years’ experience in stock-listed industrial groups. Prior to joining FLSmidth, Schulz worked for thirteen years at SANDVIK AB, Stockholm, in various international positions and most recently as President SANDVIK Construction and Senior Vice President SANDVIK AB. In particular, Schulz has successfully developed and implemented strategies for achieving sustainable profitable growth for his companies on several occasions during his career. In doing so, he explicitly focused on employee development and customer focus.
Zoë Yujnovich
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Norman Broadbent announce the appointment of Sean Buchan as Group Managing Director
Norman Broadbent, a leading London quoted Professional Services firm offering a diversified portfolio of integrated Leadership Acquisition & Advisory Services, is pleased to announce the appointment of Sean Buchan as Group Managing Director, reporting to Kevin Davidson, CEO. Sean has 20 years of progressive experience in executive search in the UK and internationally. He will assume responsibility for operational leadership; driving performance and profitability improvements across the business, as well as continuing to personally generate revenues. Along with the CEO and other members of the Executive Leadership Team, Sean will also be instrumental in pushing the sustainable growth agenda across geographies, sectors and service lines.
Wael Sawan
Royal Dutch Shell plc Zoë Yujnovich & Wael Sawan
Royal Dutch Shell plc has announced the appointment of Zoë Yujnovich as its new Upstream Director and Wael Sawan as its new Integrated Gas and Renewable and Energy Solutions (R&ES) Director. Both appointments will be effective on October 25. Sawan, who is currently Shell’s upstream director, will remain a member of the executive committee in his new role and will continue to be based in the Netherlands. He takes over as Integrated Gas and R&ES Director from Maarten Wetselaar, who will leave the company after more than 25 years on October 25. Yujnovich, moved from her tole as executive vice president of conventional oil and gas at Shell, will join the executive committee and will also be based in the Netherlands.
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Eugene Vogel
Eugene Vogel Announced As New Chief Development Officer At Jera Co Middle East and Africa
Jera Co announce the appointment of Eugene Vogel as their new Chief Development Officer at Jera Middle East & Africa. Eugene joins Jera from Sumitomo Corporation where he was Head of Business Development / Deputy General Manager. Eugene has vast experience of regional power generation development and will drive business development in this critical market. Eugene’s appointment and the establishment of their new regional subsidiary represents another milestone in JERA’s mission to provide cutting-edge solutions to the world’s energy issues.
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DECOMMISSIONING SPONSORED BY
www.wellsafesolutions.com
SAFE, SMART & EFFICIENT The complete package for well decommissioning Well-Safe Solutions provides a ground-breaking approach to the safe and cost-efficient decommissioning of on and offshore wells. We offer a specialist well abandonment service that allows operators to meet the challenges and regulatory imperatives around decommissioning, while significantly reducing costs.
Over £400,000 pipeline contracts seals a strong 2021 for Northern Ireland’s Decom Engineering A Cookstown firm, Decom Engineering Limited (Decom), has consolidated a strong 2021 performance with a hat-trick of international contract wins valued at more than £400,000.
platforms, which followed on from supporting a well-abandonment workscope located in the Kinsale gas field in the Celtic Sea, off the south coast of Ireland.
The decommissioning solutions specialist has recently deployed two of its pipeline cutting saws to the Asia Pacific region to start a six month campaign on behalf of a global oil and gas operator.
In addition to the triple contract success, Decom Engineering Ltd has invested £200,000 to establish a new operational base near Aberdeen, and will mark its opening in the coming weeks with a series of technology showcase demonstrations for UK Continental Shelf-based clients.
This contract follows on from two other successful projects in the North Sea and Celtic Sea. The Gulf of Thailand project will see Decom Engineering Ltd’s cutting technology engaged in a 1000-cut programme to remove seabed pipeline infrastructure located in water depths of 70-100 metres, and includes concrete-coated pipelines ranging in diameter from 5-18 inch. Prior to the Asia Pacific mobilisation, Decom Engineering Ltd completed the cutting of a production spool in 160 metres of water from one of the UK North Sea’s most northerly
Highlighting the increase workload and opening of the new facility, Decom Engineering chief executive officer, Sean Conway, said: “We have had an extremely busy and successful final half of 2021 with lots of strong interest in both our cutting tools and our Pipeline Coating Removal technologies. “This has been sealed with landing our largestvalue cutting project to date, and if all goes to plan
in the Gulf of Thailand, we expect this will create more opportunities. “We are in the process of tendering for a number of other significant contracts, which if successful would propel the business forward and ensure we start 2022 in a very strong position. With the imminent opening of our new facility in Aberdeen, located on the doorstep of a strategically important North Sea client base, and further investment planned for extending our equipment fleet, we are very much looking forward to taking the business to new levels of activity in the year ahead.”
Complete Abandonment Contract Offshore New Zealand The Crown’s early estimate was around $154.641 million for the decommissioning of the subsea development, featuring eight wells and associated infrastructure on the seafloor. Production from the field began in 2007 and was as high as 50,000 BOPD. Oil production from five producing wells was supported by gas lift and flowed to the FPSO Umuroa, owned and operated by BW Offshore. The Crown’s approach to the decommissioning process is detailed here. Helix Energy Solutions Group Inc. will start work on a five-well complete abandonment project in the offshore Tui field in late 2022. Located offshore New Plymouth, New Zealand, the Tui field is managed by the New Zealand government following the financial problems affecting the previous permit operator, Tamarind Taranaki Ltd. Tamarind was placed in receivership and liquidation in December 2019. Its parent company, Tamarind Resources Private Ltd. of Singapore, went into receivership in March 2020 and into liquidation in April 2020. The New Zealand Crown is an unsecured creditor in respect of Tamarind Taranaki Ltd. The liquidators of the Tamarind companies have disclaimed the Tui assets to the Crown, but the petroleum mining permit currently remains with the liquidators.
www.ogv.energy I December 2021
Helix, an international offshore energy services company headquartered in Houston, will begin the work for New Zealand’s Ministry of Business, Innovation, and Employment (MBIE) with its Helix Q7000 and 10K Intervention Riser System (IRS). The contract with MBIE is the second recent award for Helix in the Asia Pacific region, following the award of Cooper Energy BMG wells abandonment in Australia’s Bass Strait. The Q7000 is expected to mobilise late 2022 to the field and perform the work in three phases, including well abandonment, recovery of Christmas trees, and wellhead severance and recovery. Excluding mobilisation, the project is anticipated to last approximately 60 days.
“This award, coming on the heels of our award with Cooper Energy, shows that an integrated vessel package such as the Q7000 can address a wide range of subsea decommissioning challenges. With Schlumberger, our partners in the Subsea Services Alliance, we provide a complete solution to complex decommissioning scopes. As we commence this project, we look forward to working with tangata whenua [a Māori term that means ‘people of the land’], MBIE, and the wider community to protect and restore the mana [dignity] of this location,” David Carr, senior vice president–international for Helix Well Ops, said. Equipped with an IMO-certified DP3 system and the Helix-designed IRS, the Q7000 can execute well intervention and decommissioning operations in water depths ranging from 85 m to 3000 m. With its open deck plan and triaxial configuration, the Q7000 is capable of a wide range of production enhancement operations as well as well cleanup and field development support. It is equally optimised for well decommissioning, including suspension, tubing removal, tree recovery, and seafloor clearance. It features a full suite of Schlumberger equipment as part of the joint Subsea Services Alliance, providing integrated subsea well services including coiled tubing, slickline, e-line, and cementing services.
DECOMMISSIONING Decommissioning project dashboards give suppliers the inside track An industry taskforce has launched an initiative harnessing data and digital solutions to give the supply chain a clearer picture of future decommissioning work. A lack of certainty and transparency around the timing of projects has been a persistent source of frustration for many service companies. To tackle this issue, the Decommissioning and Repurposing Taskforce (DaRT), co-chaired by the Oil and Gas Authority (OGA) and industry, is piloting the Decommissioning Data Visibility project. Operators bp, EnQuest and Spirit Energy agreed to the release of a wide range of field-specific decommissioning information, including allimportant schedules. The OGA has presented this data in interactive dashboards on its website to help suppliers keep abreast of work that will come up in the medium-term, giving them confidence to invest in technology and training. DaRT intends to expand the project next year to feature more operators’ decommissioning plans. The initiative aims to support all parts of the decommissioning supply chain, including heavy-lift vessel owners, drilling contractors, subsea specialists, onshore dismantling firms and waste managers. As well as finding out when work is expected to begin, users can see how many wells need to be decommissioned on each field and how much subsea infrastructure, including concrete mattresses and pipelines, must be cleaned and/or removed. The dashboards also display the weight of topside modules and jackets earmarked for removal. This project ties in with the OGA’s Decommissioning Strategy, which highlights the importance of data transparency to help fozzster a competitive and sustainable decommissioning market. Improved collaboration and knowledge-sharing will be important if the industry is to achieve
its target of reducing the UK Continental Shelf (UKCS) decommissioning cost estimate by 35% by the end of 2022. The taskforce’s Decommissioning Data Visibility project complements the OGA’s Pathfinder website, which has been revamped and expanded to include a wider scope of information about near-term tendering opportunities across all types of projects, including energy transition developments. Pauline Innes, DaRT co-chair and OGA Head of Decommissioning, said: “Supply chain companies have told us they find it difficult to plan effectively because they don’t always know which decommissioning work scopes are coming up. “By putting a wealth of data in one place, DaRT’s project is showing the service sector the bigger picture view across the UKCS, helping it come up with solutions for delivering costefficient decommissioning.” Neil McCulloch, DaRT co-chair and Executive VP, Technical & Operated Assets at Spirit Energy, said: “Cost-effective decommissioning remains a key Stewardship Obligation and a shared priority. “In the Government’s response to the Call for Evidence in ‘Strengthening the UK’s offshore oil and gas decommissioning industry’, transparency of the future decommissioning pipeline, setting and sharing appropriate KPIs and benchmarks, adoption and deployment of new technology, and mechanisms to improve market intelligence were identified as key priorities. “The Decommissioning Data Visibility project, and OGUK’s new interactive tool accompanying their Decommissioning Insight report, will give the supply chain greater visibility of future work, which will enable more efficient operations in decommissioning. This, in turn, will support industry in its journey to achieving its netzero target.”
Oil and gas decommissioning costs to hit nearly £17bn with 1.2m tonnes from North Sea to be removed “From 2022 to 2024 the forecast shows business returning to its usual pace. With annual expenditures just over £1.5 billion, it is anticipated that almost 600 wells and around 45 topsides and jacket structures will be decommissioned. “It is also anticipated that 69km of pipelines, almost 6,000 tonnes of subsea structures and just over 4,000 mattresses will all be removed.” Work is expected to continue so that £16.57 billion will be spent on decommissioning in the UK over the next decade, the report added. With 1.2 million tonnes of disused oil and gas installations from the North Sea expected to be removed for reuse and recycling, UK oil and gas firms are being forecast to spend some £16.6bn on decommissioning work over the next decade. Industry body Oil and Gas UK (OGUK) said work in this area would be “returning to its usual pace” after a decline last year. In 2020 only 84 wells were decommissioned on the UK continental shelf – compared to 150 in a typical year. But in a new report, OGUK said: “This year, 150 wells are forecast to be decommissioned, which is a sign of market recovery.
About 95% of the material that is decommissioned from old oil and gas platforms and other structures is typically recycled, OGUK said. But it added the focus was now switching to how items could be reused, so that parts – or sometimes even whole structures – could be used for new purposes. Here it cited the example of the Brae Bravo Platform, operated by the Abu Dhabi National Energy Company (Taqa). The 36,000-tonne platform, lying 170 miles north-east of Aberdeen, produced 500 million barrels of oil equivalent over its 33-year lifetime – with the structure then ending up being sent to Norway where 95% of it was either recycled or reused. Joe Leask, OGUK’s decommissioning manager, said: “Decommissioning is more than a great challenge. It’s also a huge opportunity for UK companies to show their engineering skills, powers of innovation and ability to compete on a global scale."
DECOMMISSIONING SPONSORED BY
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Offshore Energy Services Dashboard October / November 2021 Offshore Energy Services Dashboard October Offshore Energy Services Dashboard October/ November / November2021 2021
42
Offshore Field Development available from Offshore Field Development available from
www.westwoodenergy.com
Field Development Update Offshore O&G related engineering, procurement and construction (EPC) contract awards announced in the last 30 days is estimated at c.US$900 million, bringing the year-to-date total to US$32.6 billion (excluding pre-awards). Recent EPC contract highlights include Petrobras’ award to Aker Solutions for the supply of 13 vertical subsea trees, including subsea distribution units, subsea control modules and related tie-in equipment for the Mero 4 development offshore Brazil. Offshore UAE, Abu Dhabi National Oil Company (ADNOC) also awarded EPC work scope for its Dalma development labelled package 2, to the National Petroleum Construction Company (NPCC). The period under review was characterised by the issuing of letters of intent (LOI), turnkey contracts and EPC awards pending final investment decision (FID). This level of contracting activities further solidifies a strong EPC outlook for 2022 driven by projects such as ExxonMobil’s Yellowtail development offshore Guyana, where TechnipFMC was issued a contract to supply 51 enhanced vertical deepwater trees (EVDT), 12 subsea manifolds, associated controls and tie-in equipment subject to government approval and project FID which is anticipated in 2022. Furthermore, SBM Offshore was also awarded a turnkey contract for the floating production, storage and offloading (FPSO) unit for the same project. There has been a further US$3.5 billion downward revision to our 2021 total EPC forecast spend compared to our September/October 2021 outlook due to delays to major contract awards such as Shell-operated Crux gas condensate development (Australia) and TotalEnergies Lapa South West (Brazil), bring full-year 2021 forecast EPC award value to US$48.8 billion. Offshore Rig Update [JLT updated / AM edited 19 Nov 2021] The global offshore jackup rig count now stands at 343 rigs, with an increase of four units contracted in Southeast Asia since last month. Meanwhile in the Middle East (Persian Gulf) and Latin America, contracted rigs reduced by two and one unit(s) respectively. The global semisubmersible rig count has decreased by four units to 54 rigs, with Northwest Europe accounting for half of these. Lastly, the drillship rig count increased by two units to 55 rigs, with changes mostly coming from the Americas. Effective utilisation for jackups continue to hold steady at 80%, while drillship utilisation has edged higher to 75%. Semisubmersible effective utilisation dropped almost 5% to 64%. Looking at contract backlogs, total rig days dropped by around 3% this month, with the lack of new fixtures observed in the jackup and semisubmersible rig sectors. Several new long-term contracts (i.e. longer than two years) starting in 2022 were fixed for the drillship segment, namely West Jupiter (Seadrill) and Valaris DS-4 in Brazil for Petrobras, and Valaris DS-9 in Angola for ExxonMobil. Offshore Wind Update (MG updated 18 Nov 2021) Since the last update, a further 75 turbines have been ordered and attributable to Vietnam’s largest intertidal project, the 375MW Ca Mau 1. This order further builds on Ming Yang’s share of turbine awards outside its home country, with the Original Equipment Manufacturer (OEM) now accounting for 101 turbine orders across Vietnam and Italy over the 2020/21 period.
Offshore O&G EPCAwards Awards Offshore O&G EPC $billions $billions 9090
Expected Expected
8080
Sanctioned Sanctioned
7070 6060 5050 16.3 16.3
4040 3030 2020 10
10 0
0
42.9 42.9
31.2 31.2
32.6 32.6
14.4 14.4
2018 2018
2019 2019
2020 2020
2021 2021
www.ogv.energy I December 2021
2022 2022
Westwood’s 2021-22 outlook assumes a $60/bbl Brent oil price Westwood’s 2021-22 outlook assumes a $60/bbl Brent oil price
Subsea Tree Awards Subsea Tree Awards #XTs #XTs
2021 2021
153 153
2020 2020
15 26 15 26 Sanctioned Sanctioned Firm Firm Probable Probable
191 191
FPS Throughput Additions by Year of Sanction FPS Throughput Additions by Year of Sanction kpoepd kpoepd
3000 LNG Gas 3000 2500 LNG GasLiquids 2500 2000 Liquids 2000 1500
1500 1000 1000500 500 0
2018
0
2019
2018
2019
2020
2020
2021
2021
2022
2022
Offshore O&G EPC Awards 2021-25 by E&P $billions to be awarded Offshore O&G EPC Awards 2021-25 by E&P $billions to be awarded
Excluding Mainland China, year-to-date awards total 592, of which 54% are destined for Western Europe developments.
117.8
10.9
10.8
10.4
10.2
Shell
16.9
10.4
10.2
10.1
QatarEnergy QatarEnergy
18.1
10.8
Shell
10.9
Saudi Aramco Saudi Aramco
16.9
Chevron Chevron
29.5
18.1
Equinor Equinor Woodside Petroleum Woodside Petroleum CNOOC CNOOC
29.5
Petrobras Petrobras
A flurry of agreements have been signed for projects, which have yet to make Final Investment Decision (FID), albeit anticipated by the end of the year. These include conditional turbine foundation supply and installation contracts awarded to Sif/Smulders and Seaway 7 respectively for the 1.2GW Dogger Bank C offshore UK, as well as the selection of Cadeler and Seaway 7 for turbine installation at the 900MW Borkum Riffgrund 3 and 242MW Gode Wind 3 wind farms offshore Germany.
80.7 80.7
10.1
9.2
9.2
7.5 117.8
7.5
Others Others
Westwood Global Energy Group are specialist providers of detailed market intelligence for the offshore energy sector, covering; offshore rigs, production facilities, subsea equipment, subsea services, offshore marine and offshore renewables and power.
PlatformLogix PlatformLogix
TotalEnergies TotalEnergies
PROVIDED BY
SubseaLogix SubseaLogix PlatformLogix PlatformLogix
ExxonMobil ExxonMobil
STATS & ANALYTICS
SubseaLogix SubseaLogix
Westwood Westwood Global Energy Global Energy Group Group
43 Offshore Energy Services Dashboard October / November 2021 Westwood Westwood Global Energy Offshore October // November November 2021 2021 Global GroupEnergy Offshore Energy Energy Services Services Dashboard Dashboard October Group
Offshore Rigs available from Offshore Rigs available from
RigLogix RigLogix
Month on Month Backlog (Nov 1 vs Oct 1) Month on Month Backlog (Nov 1 vs Oct 1)
May Rig Counts May Rig Counts Jackups Jackups
Semisubs Semisubs
67
54 54
19 19
492.8 Jackups Jackups
November 1 November 1
October 1 October 1
October 1 October 1
October 1 October 1
29,088 29,088
43,186 43,186
95
103.8
103.8 Semisubs Semisubs
95 Drillships Drillships
54 54
55
19
55
19
31
343
November 1 November 1
195,320 195,320
21
31
343
November 1 November 1
21
19
24 24
492.8
82 82
Drillships Drillships
19
67
RigLogix RigLogix
Contracted Contracted
Available Available
201,958 201,958
Stacked Stacked
30,077 30,077
43,338 43,338
Regional Rig Counts Counts (November (November vs vs October) October) Regional Month Month on on Month Month Rig
US US GOM GOM
SE SE Asia Asia
NW NWEurope Europe
US US GOM GOM
SE SE Asia Asia
Effective
75%
85% 85% 80% 80% 75% 75% 70% 70% 65% 65% 60% 60% 55% 55% 50% 50% 45% 45% 40% 40%
70%
80% 80%
65%
75% 75%
60%
70% 70%
55%
50%
65% 65%
Oct-19 Oct-19 Dec-19 Dec-19 Feb-20 Feb-20 Apr-20 Apr-20 Jun-20 Jun-20 Aug-20 Aug-20 Oct-20 Oct-20 Dec-20 Dec-20 Feb-21 Feb-21 Apr-21 Apr-21 Jun-21 Jun-21 Aug-21 Aug-21 Oct-21 Oct-21
Oct-19 Oct-19 Dec-19 Dec-19 Feb-20 Feb-20 Apr-20 Apr-20 Jun-20 Jun-20 Aug-20 Aug-20 Oct-20 Oct-20 Dec-20 Dec-20 Feb-21 Feb-21 Apr-21 Apr-21 Jun-21 Jun-21 Aug-21 Aug-21 Oct-21 Oct-21
45% 45% 40% 40%
Latin Arab ArabGulf Gulf Latin America America
Arab ArabGulf Gulf
NW NW Europe Europe
Latin LatinAmerica America
Global Global
available from from available
Oct-19 Oct-19 Dec-19 Dec-19 Feb-20 Feb-20 Apr-20 Apr-20 Jun-20 Jun-20 Aug-20 Aug-20 Oct-20 Oct-20 Dec-20 Dec-20 Feb-21 Feb-21 Apr-21 Apr-21 Jun-21 Jun-21 Aug-21 Aug-21 Oct-21 Oct-21
Total
-0.7 -0.7
Global Global
May-21 May-21
Arab ArabGulf Gulf
Latin Arab Arab Gulf Gulf Latin America America Latin LatinAmerica America
Jan-21 Jan-21
SE SE Asia Asia
SE SE Asia Asia
Global Rig Utilisation
85% 85%
60% 60%
Mar-21 Mar-21
Sep-20 Sep-20
Nov-20 Nov-20
US US GOM GOM
US US GOM GOM
Jul-20 Jul-20
NW NW Europe Europe NW NWEurope Europe
May-20 May-20
SE SE Asia Asia
Global Global
Global Global
US US GOM GOM
Jan-20 Jan-20
NWEurope Europe NW
Latin Latin Arab Arab Gulf Gulf America America
Mar-20 Mar-20
SE SE Asia Asia
Nov-19 Nov-19
US US GOM GOM
Jul-19 Jul-19
NW NW Europe Europe
0.7 0.7
-4.1 -4.1
Sep-19 Sep-19
Global Global
Global Global
-0.1 -0.2 -0.2 -0.1
1.6 1.6
-2.0 -2.0
ArabGulf Gulf Arab
0.1 0.1
85.00% 85.00% 80.00% 80.00% 75.00% 75.00% 70.00% 70.00% -0.7 -0.7 65.00% 65.00% -1.7 -1.7 60.00% 60.00%
LatinAmerica America Latin
3.6 3.6
WindLogix WindLogix
WindLogix WindLogix
Offshore WTG WTG Awards Awards by by Status Status (exc. (exc. Mainland Mainland China) Offshore China) #WTGs #WTGs 1200 1200 1000 1000
Ming Yang Ming Yang 4% 4% General General Electric (GE) Electric 13%(GE) 13%
Expected Expected Awarded Awarded
800 800
Others Others 2% 2%
Awarded by Awarded by OEM OEM
600 600
Asia Asia 26% 26%
Siemens Siemens Gamesa Gamesa 53% 53%
Vestas Vestas 25% 25%
400 400
Western Western Europe Europe 60% 60%
200 200 0 0
Goldwind Goldwind 3% 3%
2018 2018
2019 2019
2020 2020
2021 2021
Expected by Expected by Reigion Reigion North America North America 14% 14%
2022 2022 STATS & ANALYTICS SPONSORED BY
44
LEGAL & FINANCE
Oil & gas sector braced for UK Government's new review powers for M&A deals The UK's new National Security & Investment Act will come into force from 4 January 2022. It has significant implications for the oil & gas sector, in which many deals could become subject to a mandatory UK Government approval process before the transaction can complete. This date also marks the commencement of the Government's power to 'call in' for review other deals, including asset deals and deals completed on or after 12 November 2020, that it reasonably suspects may create a national security risk. Under the Act, investments in entities operating in 17 key sectors (including energy) will have to be notified to and approved by the Government where the investor acquires:
• 25%, 50% or 75% of the shares or voting rights (with a fresh obligation for each threshold); or
• the ability to pass or block any class of resolution. A qualifying deal that is completed without approval will be void, with those involved exposed to civil and criminal penalties. There are no de minimis target turnover or deal value thresholds. The Government has published draft regulations defining the entities within scope in those 17 key sectors. For energy, the notification obligation will apply to a target that (among other things):
• is an owner, operator, licensor or developer
of an upstream petroleum facility (terminals, pipelines and infrastructure), where the relevant facility had a throughput of 3m tonnes of
oil equivalent over the preceding 12 calendar months (or, for a new facility, is expected to reach that within its first 12 months) and is (or will be) "situated in whole or in part in the [UK]; or used in connection with the supply of petroleum to persons in the [UK]";
• owns or operates an onshore LNG import and export facility or gas processing facility in Great Britain, where the facility has the capacity to handle more than six million cubic metres of gas per day; • is licensed to transport gas or operate gas interconnectors; or
acquirer; the sensitivity of the target asset or entity; and the level of control to be acquired. The guidance says the Government is most likely to call in deals closely connected with the sectors to which mandatory notification applies. This is particularly relevant to the oil & gas sector given the prevalence of asset deals, which may be most at risk of being called in (and potentially unwound) where the deal would have to be notified if it involved acquisition of a company that owned the asset.
• is involved in the UK supply chain for
petroleum-based road, aviation or heating fuels (including liquefied petroleum gas), where the target handled more than 500,000 tonnes per year, or owns a facility that handled more than 50,000 tonnes per year, in one of the previous three years.
Parties can already informally engage with the Government's new Investment Security Unit (ISU) if their deal might otherwise attract attention once the Act comes into force, with some making deals conditional on the ISU providing sufficient comfort that the deal will not be called in after 4 January.
The Government has also published guidance on the 'call-in' power, which can be used for essentially any deal up to five years after completion – or six months from the Government becoming aware of it. Risk factors will include the identity of the
Anyone contemplating, or in the process of, acquiring companies or assets active in the UK oil & gas sector should seek specialist assistance with this new and complex regime.
Is fossil fuel use a legal or political issue? Climate change litigation continues to dominate the legal headlines, as increasing numbers of claims seeking to hold governments and companies to account for their climate change commitments are pursued. However, as demonstrated by the recent case of Greenpeace Ltd v The Advocate General, not all courts consider the effects of fossil fuel use to be a legal issue. In this case, Greenpeace appealed to the Scottish Court of Session against the decision made by the secretary of state for business, energy and industrial strategy (the SoS) and the Oil and Gas Authority (OGA) to grant BP Exploration Operating Company Ltd and Ithaca Energy (UK) Ltd consent for two new production wells in the Vorlich oil field in the North Sea. The OGA had granted consent under section 3(1) of the Petroleum Act 1998, following a decision by the SoS that consent could be granted under regulation 5(A1) of the Offshore Petroleum Production and Pipelines (Assessment of Environmental Effects) Regulations 1999 (the 1999 regulations).
www.ogv.energy I December 2021
Greenpeace originally sought to have the OGA’s decision reviewed in the High Court in London, alleging that, in deciding to approve the granting of consent, the SoS had failed to take into account the effect of the consumption of the oil on the UK’s carbon budget and its contribution to climate change. However, the High Court refused permission for judicial review, so Greenpeace then lodged an appeal against the consent and a parallel petition for judicial review in Scotland. Permission for judicial review was also refused by the Scottish Court of Session, but the appeal proceeded. The appeal was primarily raised on certain technical grounds that the notice requirements pursuant to the 1999 regulations had not been complied with, such that the public had been deprived of their right to make representations opposing the consent and were consequently prejudiced. But the real heart of Greenpeace’s case was that, when granting consent, the SoS and the OGA had failed to take into account the impact of the consumption of the oil that would be produced from the Vorlich field by end-users.
The Court of Session firmly rejected the appeal on both grounds. It largely accepted the submissions by the SoS and the OGA that the procedural publication formalities of awarding a permit pursuant to the 1999 regulations were ‘substantially met’ and held that Greenpeace’s case was ‘overwhelmingly technical and unconvincing’. Further, it rejected the argument that end-user consumption of oil and gas is a relevant consideration when deciding whether to award a permit for a fossil fuel extraction project.
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COMMUNITY PARTNER
AFC welcome new partners onboard Aberdeen Football Club offer a range of commercial opportunities with tailored packages created to suit the needs of local, national and international brands. Recently the Club strengthened its relationship with one of the UK’s leading providers of wealth management and employee benefits, Mattioli Woods, with a key sponsorship deal. The innovative collaboration will see a hospitality area in the Main Stand at Pittodrie re-branded the ‘Mattioli Woods Lounge’, with the company utilising the space to entertain clients on a match-day. Mattioli Woods will further enhance their brand exposure throughout the Club with strategic advertising across a variety of its media platforms including the website and match-day programme. Additionally, the Club was delighted to welcome
www.ogv.energy I December 2021
on board exciting new law firm Esson & Aberdein as the Official Legal and Property Partner of Aberdeen Football Club. Through the partnership supporters of the club will enjoy a host of benefits including getting their season ticket fully paid for if they sell a home with the law firm. Since launching earlier this year, Esson & Aberdein has expanded rapidly and its official appointment by the Pittodrie club as its Legal and Property Partner is an important milestone. Anyone selling through Esson & Aberdein, will be entitled to a free season ticket for the rest of the 2021/22 season courtesy of the company. The law firm will also offer legal and property services on preferential terms to all Dons fans who have season tickets or are members of the club’s AberDNA scheme, as well as the club’s 300 staff.
Other benefits mean season ticket holders and AberDNA members can secure a simple Will for £250, enjoy a discounted Property Management fee of 7.5% and No Broker Fee mortgage advice. Esson & Aberdein was launched in April by Joni and Rob Aberdein, another of the city’s bestknown legal names. As well as property and estate agency the firm specialises in family law and will continue to expand its range of services. It aims to harness technology to improve the service and experience of clients, to make legal services less transactional and far more focused on building valuable, long-term relationships. Esson & Aberdein is part of the Moray Group, which was founded by Mr Aberdein in 2020. It is a stable of professional services firms focused on using technology to deliver better services across property, law and finance.
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FREE OGV EVENT
VENTUR – THE TRAVEL PARTNER Specialists in connecting people through travel, ventur’s expertise in partnering with businesses in the oil and gas industry is second to none. In May this year, the travel management specialist formerly known as Traveleads, unveiled its new identity as part of a business transformation to elevate standards of service and deliver clients a premium, tailored travel management experience. Following in-depth research which highlighted that customers truly valued the firm’s expertise, consultative approach and relationships with the team, the new identity of ventur – the travel partner was revealed, bringing together the decades worth of experience, efficiency and accessibility with a commitment to creating a culture of success and adding even more value to customers’ travel programmes. Here, we chat to client services director – corporate, Maggie Monteith, about the company’s exciting year and plans for the months ahead.
TELL US A LITTLE MORE ABOUT VENTUR As Ventur, it’s important to us that we’re constantly evolving to meet and exceed customer needs – that’s what makes us The Travel Partner. Customers are always at the heart of what we do, whether it’s understanding the often-urgent nature of enquiries, ensuring travellers are safe or simply helping them navigate a complex travel landscape, they can rely on our expert team to get them to their ‘there’ seamlessly. We help them travel safely wherever they need to be – whether they’re travelling to industryleading conferences, carrying out essential work or building relationships with business associates across the world, we’re here to help them every step of the way.
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