OGV Energy - Issue 59 - August 2022 - Hydrogen & CCS by OGV Energy

AUGAUGUST 2022 - ISSUE 2020 59

UK’s No. ENERGY SECTOR

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THE HYDROGEN & CCS ISSUE

GLOBAL ENERGY NEWS

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Hydro-C - NECCUS AGR - Deloitte - HydraWell Global Maritime - NZTC Sword Group - Intertek QHSE ABERDEEN Xodus

MONTHLY THEME INNOVATION & TECH RENEWABLES CONTRACT AWARDS ON THE MOVE DECOMMISSIONING STATS & ANALYTICS LEGAL & FINANCE EVENTS

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CONTENTS

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COVER PARTNER 04 - Stats Group: Helping the industry transition to more sustainable energy supplies and a carbon net-zero future

COMMUNITY NEWS

08 - Latest updates from our OGV Community members

GLOBAL ENERGY NEWS 11 - UK North Sea 14 - Europe 16 - US 18 - Middle East

WORLD PROJECTS MAP 04

20 - EIC: World's latest project updates

MONTHLY THEME 22 Hydrogen & CCS

24 - Deloitte: UK hydrogen market development: Where are we now and where we might be going? 25 - AGR: CCUS for Increased Oil Recovery a new business opportunity? 26 - Fugro: Geo-data to support the development of offshore carbon storage 28 - Global Maritime: From 'Energy Transition' to 'Energy Transformation' 29 - NECCUS: Let's be "real" about industrial decarbonisation 30 - Xodus: Advises Dutch government on second CCS project

31 - NZTC: Direct Air Capture - A decarbonisation toolkit essential 32 - HydraWell: marking an important milestone for the future of CO2 storage in the Netherlands 33 - QHSE ABERDEEN: ISO management standards Want to be carbon neutral? 34 - Hydro-C: Creating a lasting positive legacy

INNOVATION & TECHNOLOGY 36 - Intertek: Helping the industry improve efficiency and maximise performance through BIG DATA ANALYTICS

OUR DIGITAL INDUSTRY 38 - Sword Group: Harnessing digital technologies to enable operational efficiencies

RENEWABLES

42 - RenewableUK: pushing the boundaries of what is possible in offshore wind

PEOPLE IN ENERGY 44 - Tracey Cepeda: Contractor Management Services (CMS) Advisor, Energy Resourcing

EVERY MONTH 46 - Contract Awards 48 - On the Move 50 - Decommissioning 52 - Stats & Analytics 54 - Legal & Finance 55 - Community Partner 56 - Events

KENNY DOOLEY MAIN EDITOR Welcome to the 59th issue of OGV Energy publication. This month our theme is on the topic of “Hydrogen and CCS”, a developing industry sector with growing importance. We are delighted to be partnering with Stats Group who have been helping their clients reduce emissions for the past 20 years as this month’s front cover partner. You can read all about their technology in their double page spread on page 4. Other contributions this month on the theme of “Hydrogen and CCS” come from Deloitte, AGR, NECCUS, Fugro, The Net Zero Technology Centre, HydraWell, QHSE Aberdeen, Global Maritime and Xodus, who are all making positive progress within the energy transition path and are also helping other companies in the industry work towards meeting net-zero targets.

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We also have global project news from the Energy Industries Council, analytics and insights from Westwood Global Energy Group, contract news sponsored by Infinity Partnership and decommissioning news sponsored by Well-Safe Solutions. Finally, we can confirm we will release the first issue of the new quarterly publication OGV Renewables, so please get in touch if you are interested in engaging with us for the launch publication. Thanks again to our readers for all their support. Have a great month.

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COVER FEATURE projects, giving the company a deep knowledge base of the very infrastructure that, in the future, may be repurposed.

ENERGY TRANSITION

STATS Group primed to support industry with Net-Zero goals

With decades of experience working on oil and gas pipeline projects, the Aberdeenshireheadquartered company has at its disposal the skills and proven technologies to isolate in Carbon Capture, Utilisation and Storage (CCUS), related CO2 pipelines, and natural gas pipelines blended with hydrogen. STATS Group chief executive officer, Leigh Howarth, said: “STATS double block and bleed isolation technologies have been helping our customers reduce emissions for 20 years. Our focus on innovation means we’re ideally placed to continue this support, not only in the traditional hydrocarbon sector, but also as the industry transitions to more sustainable energy supplies.” With investment in both CCUS and hydrogen projects accelerating, there is a growing focus on how existing pipeline infrastructure can be repurposed for both CO2 and blended or pure hydrogen transportation. Therefore, the requirement for isolation, hot tapping and line plugging technology to safely and efficient isolate these pipelines for repair, maintenance and modifications is increasingly important. Over the past two decades, STATS Group has played a central role in the UK and internationally, in pipeline isolation, repair and maintenance

www.ogv.energy I August 2022

Leigh Howarth said: “After safely completing multiple workscopes for Kinder Morgan on their high-pressure (up to 138 bar) CO2 pipelines in New Mexico in the United States, we’re in an excellent position to support CCUS infrastructure owners and operators with future pipeline maintenance and upgrade projects. “Also, with an eye to the future, STATS is partnering in a joint industry project with DNV and a number of pipeline owners and operators, looking at in-service welding for the purposes of providing isolation solutions on natural gas pipelines blended with hydrogen. The objective is to determine if welding onto an in-service pipeline that contains a mixture of methane and hydrogen results in an increased risk of hydrogen cracking, and if so, to develop guidance pertaining to measures that can be taken to mitigate the increased risk.”

STATS Group are in a strong position to capitalise on new opportunities arising in the transition to more sustainable energy supplies and a carbon net-zero future.

Iain Smith, Senior Vice President, Proserv

In that same period, and directly relevant to CCUS, STATS has established itself as the “go-to” provider of hot tapping and line stopping services on high-pressure liquid CO2 pipelines.

Notwithstanding the opportunities in relation to CCUS and hydrogen, STATS continues to support its customers to reduce emissions, recognising the pivotal role that natural gas is playing as the world seeks to first reduce carbon emissions ahead of a longer term transition to more sustainable sources of energy. Using the company’s proprietary double block and bleed pipeline isolation technologies, localised repair and maintenance worksites can be safely isolated without the need to depressurise large sections of the pipeline, thereby avoiding the need to discharge significant quantities of greenhouse gases into the atmosphere. In the case of large diameter gas pipelines, this can prevent the potential discharge of thousands or tens of thousands of tons of methane emissions into the atmosphere. Mr Howarth concluded: “We’re excited about the future energy transition and the role STATS is playing in supporting our customers to achieve their net-zero goals.”

Remote Tecno Plug, inline isolation tool deployment, Shetland, UK

COVER FEATURE

30” BISEPs isolating liquid CO2 pipeline while the system remains operating at 148 bar

The latest iteration of the A-type, Ampelmann’s flagship system, has already been fully electrified, tested and has recently been commercially deployed at sea

30” BISEPs isolate short section of liquid CO2 pipeline while production is maintained through bypass

New launcher installed into the system while the BISEP provides leak-tight isolation of liquid CO2 pipeline

STATS Group are market leaders in the supply of pressurised pipeline isolation, hot tapping and plugging services to the global energy industry For more information visit: www.statsgroup.com

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CONTRIBUTORS

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LOGISTICS PARTNER Leading provider of logistics services to this industry, offering its customers airfreight, road freight, sea freight, project forwarding, customs compliance, training and consultancy, packing, crating, lashing & securing services warehousing, distribution, freight management, rig relocation and mobilisation services and offshore logistics. Disclaimer: The views and opinions published within editorials and advertisements in this OGV Energy Publication are not those of our editor or company. Whilst we have made every effort to ensure the legitimacy of the content, OGV Energy cannot accept any responsibility for errors and mistakes.

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OGV COMMUNITY NEWS

the successful completion of two scopes of work in the Netherlands – one for a leading tomato producer and the other for a salt mining client.

HydraWell proves innovative technology is worth its salt with Dutch successes HydraWell has marked an important diversification milestone by completing two significant geothermal projects totalling 350,000EUR in the Netherlands.

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Northeast steel and cladding company shortlisted as finalists for Vibes Awards Local steel and cladding company, KR Group, has been shortlisted as a finalist for the VIBES Scottish Environment Business Awards 2022. Once again, KR Group’s environmental achievements have been recognised on a national level. Following a series of awards finals this year, including the CeeD Awards and Northern Star Business Awards, the team at KR Group are hopeful. The VIBES Scottish Environment Business Awards are held each year to showcase organisations that have demonstrated significant business benefits from good environmental practice.

Verlume shortlisted in two categories at low-carbon awards Verlume, a specialist in intelligent energy management and energy storage, has been shortlisted in both the Technology & Business Innovation and Green Business Growth categories at the upcoming Scottish Renewables Net-Zero Energy Transition Awards. Taking place in Aberdeen on 25th August, the black-tie awards will see 34 individuals, companies and projects that are delivering the energy transition compete to scoop prizes in eight categories across the industry.

www.ogv.energy I August 2022

The company’s ingenious HydraHemera™ patented Perf, Wash & Cement (PWC®) solution was originally developed for the energy sector. Now, in a significant step towards embracing a growing number of diversification opportunities, the technology has entered new territory thanks to

Petrofac awarded North Sea contract extension by EnQuest Petrofac, a leading provider of services to the global energy industry, is set to take its tenure supporting the Kittiwake platform into two decades, following the award of a contract extension from EnQuest. Under the terms of the three-year contract renewal, Petrofac will continue in its capacity as Duty Holder of the Kittiwake platform in the Central North Sea. It has held the role with EnQuest since 2014, and the asset’s previous owners since 2003. Nick Shorten, Chief Operating Officer of Petrofac’s Asset Solutions business, commented: “We have developed a productive and longstanding relationship with EnQuest over the past eight years."

asset55 celebrates 10 years in business this year Established in 2012, asset55 has grown to be an industry leader by creating tangible value in the Operational and Capital Project space. With continuous innovation of their technology solutions, asset55 provides industry changing software supported by subject matter experts in the field of engineering, software development, and site deployment. To celebrate this milestone, asset55 are officially rebranded with a new company logo, website and software names.

Whilst hydrocarbons, oil and gas, are absent in a salt mine, hot water is required to dissolve salt so that it can be circulated out for processing – and, just like the energy sector, P&A is required when a well reaches the end of its life. In the recent salt mine project, the innovative solution was deployed on a P&A scope of work which was completed in a 4700m underground well with flawless execution and in a single run. The versatile system has also been successfully put to work on behalf of a leading tomato producer which uses geothermal energy to heat its facility. HydraWell was approached by its client whose affiliate had experienced reliability issues due to corrosion, leading to the decision to schedule the geothermal well for permanent P&A. In less than two days, the HydraHemeraTM PWC® system was applied to perforate the 810m deep well before washing behind the casing and then setting the cement plug in the well.

World-first for AIS Survivex following major investment in new state-of-theart lifeboat simulators AIS Survivex is celebrating a world-first after investing close to $1m into the very latest lifeboat simulator technology to increase marine safety and boost competency for coxswains. This major investment complements AIS Survivex’s existing marine training facility in Aberdeen Harbour and provides a major differentiator as the company becomes the very first training business globally to offer OPITO-approved lifeboat training for coxswains both practically in the Harbour and virtually via a simulator for free fall and twin fall escape scenarios.

EIC Appoints Four New Directors to its Board The Energy Industries Council—one of the world’s leading energy trade associations and purveyor of world class industry data, events, and insights—announced today that it has added four new members to its Board of Directors as the EIC continues its mission of helping its member companies achieve their strategic goals.

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www.tracrenewableservices.com renewable.services@trac.com +44 (0) 1224 725800 TRAC Renewable Services (part of TRAC Energy Ltd) leverages the inspection, engineering, repair and maintenance experience and the expertise held within the full TRAC International group. We provide a range of seamless and innovative front-end solutions for Generators, Operators, OEMs and EPCI Contractors. TRAC has been involved with the renewable sector, alongside our other markets almost since its start and our client base has long demanded evidence of a reducing carbon footprint. Nonetheless, as the global energy transition gathers pace we believe that a combination of political, environmental, economic and technological factors mark a new phase of maturity in the offshore wind sector - and the point at which all the accreditations, and experience, necessary to operate in our more traditional sectors can be leveraged to reduce annual IMR costs over the offshore wind asset lifecycle.

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ENERGY NEWS

AUGUST 2022

UK NORTH SEA

Energy Review By Tsvetana Paraskova

The Energy Profits Levy, the Energy Security Bill, mergers and acquisitions, exploration and operational updates were the highlights in the UK North Sea oil and gas industry over the past month. The Energy Profits Levy Bill became law in the middle of July after passing in the House of Lords.

The new law imposing £5 billion of new taxes on the UK’s offshore oil and gas operators risk driving away investors and undermining the nation’s future energy supplies, the industry’s leading trade body, Offshore Energies UK (OEUK), warned. The windfall tax risks starving crucial North Sea projects of tens of billions of pounds of investment, OEUK said.

Deirdre Miche

The UK’s oil and gas operators were already paying a 40-percent tax rate on profits from oil and gas production on the UK Continental Shelf (UKCS). Under the new law, the UK’s offshore oil and gas operators must pay an additional 25-percent tax on UK oil and gas profits. This means the combined rate of tax is now 65 percent – by far the highest tax rate faced by any business sector, OEUK noted. “Exploring for oil and gas and then bringing it to shore is inherently a risky and expensive business so our members need the UK’s fiscal rules and other regulations to be stable and predictable before they consider investing the hundreds of millions of pounds needed for such projects,” said Deirdre Michie, OEUK’s chief executive. “That raises the cost of borrowing and so discourages investment in new energy sources just when global events suggest the UK should be doing all it can to maximise its own energy sources,” Michie added. Michie also formally announced on 1 July that at the end of 2022 she would hand over the reins after almost eight years as Chief Executive of Offshore Energies UK.

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The UK’s Energy Security Bill was introduced to Parliament in early July, as the UK looks to boost its energy independence and security. Measures include such to support the deployment of low carbon technologies at scale such as carbon, capture, usage and storage (CCUS) and hydrogen, helping drive investment by giving businesses the certainty they need. The bill envisages the biggest reform of the UK’s energy system in a decade, designed to minimise market disruption and ensure energy security in Britain. The North Sea Transition Authority (NSTA) welcomed the bill, saying “We welcome the Energy Security Bill and stronger NSTA powers before companies change hands. We also note the proposals on CCS and as the carbon storage licensing authority will continue to work closely with government and industry progressing this.” NSTA appointed on 13 July Stuart Payne as new Chief Executive to succeed outgoing Chief Executive Dr Andy Samuel, and assume responsibilities on 1 January 2023. Payne joined the NSTA in 2015 and is currently responsible for decommissioning, leading work with the supply chain and heading the HR function. He co-chairs the industry’s Supply Chain and Exports Task Force and is a member of the Scottish Government’s Energy Transition Leadership Group.

UK NORTH SEA the GLA interest to our portfolio is an important step towards expanding and diversifying our producing asset base in one of the largest gas hubs in the UK,” said Andrew Austin, Executive Chairman of Kistos. Kistos also proposed to Serica Energy a merger “to create a leading independent North Sea champion, led by the right team with the right strategy.” On the following day, the Board of Serica Energy plc confirmed it had received a non-binding proposal from Kistos regarding a possible cash and share offer, but said it rejects the offer. “Following careful consideration, the Board of Serica, together with its financial advisers, unanimously rejected the Kistos Possible Offer on 1 June 2022, on the basis that the Board strongly believed it significantly undervalued the Company and its prospects and was not in the best interests of shareholders or other stakeholders,” Serica said. Separately, Serica Energy announced that the North Eigg exploration well had spudded. Serica owns 100 percent in the High Pressure, High Temperature (HPHT) exploration well targeting Upper Jurassic turbidite sands, similar to those encountered in the nearby Serica-operated Rhum field.

OEUK welcomed the appointment of Stuart Payne as Chief Executive of NSTA. “I have no doubt that Stuart will lead the NSTA to further success and will also work constructively with industry as we continue to journey through the energy transition while ensuring the security of energy supply for the UK,” OEUK’s Michie said in a statement. At the end of July, the NSTA awarded a gas storage licence to Centrica offshore UK Ltd (COUK) for the Rough site off the East Coast of England in the Southern North Sea, in a first stage of potential reopening of the storage site. The award of a licence allows Centrica to progress with seeking the further regulatory approvals required before gas storage operations can commence, including further approvals required from the NSTA. Ithaca Energy completed the acquisition of Siccar Point Energy, announced in April 2022, which positions Ithaca as one of the leading E&P operators in the UK North Sea with four of the basin’s largest producing fields and some of its largest development projects. Gas producer Kistos plc completed the acquisition of a 20-percent interest in the Greater Laggan Area (GLA) producing gas fields and associated infrastructure alongside various interests in certain other exploration licences, including a 25-percent interest in the Benriach prospect, from TotalEnergies. “We look forward to working with TotalEnergies and our partners within the GLA. The addition of

www.ogv.energy I August 2022

Stuart Payne

“In a success case, this means that any development could utilise the existing production facilities on the Bruce platform, thereby reducing the need for extensive investment in new facilities and reducing the carbon footprint of the development and subsequent production period,” CEO Mitch Flegg commented.

Waldorf Production Limited has entered into a binding Sale and Purchase Agreement with a wholly-owned subsidiary of Shorelight Partners for the acquisition of Alpha Petroleum Resources Limited. Alpha Petroleum’s assets include a 100-percent working interest in the Cheviot field and an operated interest in three late life/redevelopment fields in the Southern Gas Basin. Cheviot is one of the largest undeveloped fields in the UK North Sea, with estimated contingent resources of 50 MMbbls oil and 120 bcf gas, Waldorf Production said. THREE60 Energy has acquired well and pipeline operator and well management specialist Fraser Well Management. The company’s three offices, located in Aberdeen, Great Yarmouth, and Rotterdam, will remain in operation under THREE60 Energy. Neptune Energy has joined the Aiming for Zero Methane Emissions Initiative, a project to cut emissions of the harmful greenhouse gas to near zero by 2030. Neptune’s support for the initiative complements its own ambitious target for zero methane emissions by the end of the decade.

Neptune Energy also announced it had been awarded gold medal status from the environment, social and governance (ESG) ratings organisation EcoVadis. The score places Neptune in the top 5 percent of all 95,000 global companies assessed by the organisation. Shell-operated Edinburgh exploration well, drilled in offshore UK license P255, is being plugged and abandoned having failed to encounter commercial quantities of hydrocarbons, said DNO ASA, which holds a 45-percent interest in the Edinburgh prospect. United Oil and Gas Plc shared in early July the publication of a new research note by Optiva Securities on the Company’s Maria discovery, located in the Outer Moray Firth Basin in the Central North Sea. According to the research note, Optiva Securities values the Maria project at £33.5 million or 5.2p per share on a risked basis. Over the life of the Maria field, the operation is expected to generate US$545 million in revenue, Optiva Securities said. Hurricane Energy said on 19 July in an operational and financial update that if oil prices for the July cargo of Lancaster crude are above $110 a barrel, the net free cash forecast increases to be above $85 million. “With another steady month of production, we now look beyond repayment of the bonds with a strong cash position and balance sheet,” Antony Maris, CEO of Hurricane, said. Serica Energy’s operations update noted on 20 July that the company has no debt, limited decommissioning liabilities, and with growing cash reserves is well positioned to continue to invest in further projects and other opportunities to add shareholder value. Serica is now accelerating further well intervention work on Bruce and Keith fields following the success of the recently completed campaign. Well decommissioning specialists Well-Safe Solutions have signed an agreement to plug and abandon (P&A) 14 wells on the UKCS. The deal is the first scope agreed for the Well-Safe Defender semi-submersible rig, which Well-Safe Solutions purchased in June 2022. Hartshead Resources has received a “Letter of No Objection” from the North Sea Transition Authority in respect of the development concept for the Phase I development of the Anning and Somerville gas fields. The selected development concept consists of six production wells from two wireline capable Normally Unmanned Installation (NUI) platforms at Anning and Somerville, which have been classified to hold combined 2P Reserves of 301.5 Bcf (52 MMboe) of gas following an independent technical and commercial audit by ERC Equipiose. These platforms will then connect via a subsea pipeline to third-party infrastructure for onward transportation and processing to entry into the UK gas transmission network. Following the approval from the regulator, Hartshead Resources now intends to progress its Phase I development through the Front-End Engineering & Design (FEED) stage and submission of a field development plan prior to the final investment decision (FID).

BRENT OIL PRICES OVER THE YEARS August Review

THE SOCIAL STRATEGIST

1 Eric Doyle

The Professional v Personal conundrum… By Eric Doyle

As the Digital Transformation and Social Media continue to change how we live and work, big business is taking action, so what can we in the Energy sectors learn from their shift in thinking? A recent article and video by Elisa Xu and Julia Hood for Business Insider put a spotlight on how large corporations are addressing the issue of people becoming stronger than the brand. In an interview series titled ‘Marketing leaders from Amazon, LinkedIn, Lego Group and more tell Insider what pandemic-fuelled business changes are likely to stick around’, leaders from large global organisations share insight into what parts of their business have evolved, and what parts have stayed the same through the past few years of unexpected change. These leaders were interviewed at the 2022 Cannes Lions International Festival of Creativity in June. The company executives featured in the video are from Diageo, Amazon, Mastercard, LinkedIn, TikTok, Accenture, Lego Group, Deloitte, EY Americas, Lowe's Companies, and Snap. Julia Goldin, Chief Product and Marketing Officer and Executive VP at Lego Group, said: “we really believe creativity is an essential skill for everyone, in the world today and the world of the future. And if you don’t believe that creativity is your job, you know, whether you work in supply chain, whether you work in shipping, logistics, we really believe that everyone has to be creative”. A large organisation now viewing creativity as an essential skill, across all disciplines. Suzan Kounkel, Chief Marketing Officer at Delloite US, said:

A modern CMO at a huge global organisation now understanding that the employees have the power in Social Media and Digital and their view of the ‘professional and the personal’ has to change. So how can the Energy sectors put this into action? How can engineering and service companies leverage the agency that their wider employee base has in this modern age, where the rules are being rewritten? In previous articles I’ve discussed how ‘influence over broadcast’ is key to progress in the strategic application of Social Media. Buyers are telling us that they are more interested in your teams thought leadership content than your marketing materials and product sheets, they want to hear from the people not the brand…. People are winning the battle over the brands… Buyers are cutting out the ‘door openers’, choosing which doors they want to open and opening themselves. The battle lines for market share are drawn and they are online… Buyers want thought leadership content to allow them to assess whether you really understand their issues and can solve their problems, so it makes sense to have your team dominate the thought leadership space in your sector. So often we see organisations stuck in a cycle of stiff, glossy brochureware that is blending into the mass of other stiff, glossy brochureware that is not in any way creating influence in their sectors. Influence comes from people connecting with people on a technical, commercial, and personal level, this means bringing expertise, knowledge, specialism and personality into the picture, and putting it to work. It’s time to see the army of technical and commercial influencers you have in your team. Look outside your office or on your next team video call…your Digital and Social army is right there.

“work is everywhere, we’re people everywhere and that mixture of what is both personal and professional has become very, very blurry. And in that world our employees have a lot of agency and it’s something we have to really think about and lean into…”

Eric is a Co-Founder of Crux Consultancy Limited who train and coach cross sector B2B teams in the art and science of Strategic Social Media through Social Selling & Influence. www.consultcrux.com

YEAR AGO

- BRENT OIL PRICE 2021 - $71.14 Australia’s Woodside Petroleum looked set to acquire BHP’s entire petroleum business through an all-stock merger that would create a company with a combined market capitalisation of up to $29 billion. Scotland’s First Minister, Nicola Sturgeon, called on the UK government to reconsider oil and gas licenses, just days after a United Nations panel warned of the consequences for the planet without serious steps to cut emissions.

YEARS AGO

- BRENT OIL PRICE 2017 - $50.73 It was said that fracking for oil and gas in the UK may produce much less fuel, and profits, than had been previously suggested, according to research based on seismic imaging of the country’s underlying geology. Maersk Oil Group was in the process of selling its oil and gas business to France’s Total in a $7.45 billion share and debt deal that would step up its focus on its core container shipping and logistics operations.

YEARS AGO

- BRENT OIL PRICE 2012 - $113.90 Total and Gazprom joined fellow oil and gas giants, ExxonMobil and Chevron, in signing up for concessions to drill for oil in the Kurdistan region of northern Iraq. Baghdad had condemned the deals as in violation of the Iraqi constitution. Ministers insisted that punishment would come for companies who signed deals without approval from the central government and the oil ministry.

ENERGY NEWS

Europe

By Tsvetana Paraskova

Energy Review (Photo: Kristian Helgesen)

Permits for increased gas production in Norway and new oil and gas discoveries on the Norwegian Continental Shelf, UK renewable auctions and opportunities, and announcements of major hydrogen projects across Europe featured in the European energy sector over the past month >>

A few days later, the ministry approved the development plan for the third phase of the Ormen Lange field, which is the secondlargest gas field offshore Norway. The start of production at Ormen Lange Phase 3 is expected in 2025. The development plan for the Tommeliten A gas and condensate discovery southwest of the Ekofisk field in the North Sea, and the plan for the Frosk petroleum discovery in the North Sea were also approved.

Oil & Gas

Norway also averted in early July a major strike at oil and gas fields, after the government intervened and imposed compulsory arbitration in the dispute over pay between the employers’ association, Norwegian Oil and Gas, and trade union Lederne.

As Europe scrambles to procure non-Russian gas, Norway approved applications from operators to boost production from several gas fields – Troll, Gina Krog, Duva, Oseberg, Åsgard, and Mikkel. The Energy Ministry has also granted a production permit for the Nova gas field, which is expected to start up in the near future. The permits for higher gas production mean that Norway is on track to export record volumes of gas through its pipeline system this year, the Energy Ministry said. Norway’s gas fields supply 20-25% of the gas demand in the EU and the UK.

www.ogv.energy I August 2022

Production from Frosk is set to begin in 2023 with an expected production horizon of 10 years, while production start-up at Tommeliten A is planned for 2024. Total investments in the Frosk project are projected at around NOK 2 billion (US$230 million), while recoverable reserves at the field are estimated at around 10 million barrels of oil equivalents, operator Aker BP said. The Frosk field will tie back to Alvheim FPSO via existing subsea infrastructure and will utilise free capacity in processing facilities.

Aker BP made a gas discovery near the Skarv field, with preliminary estimates indicating recoverable gas volume at between 25 and 80 million barrels of oil equivalent. Further delineation of the discovery is planned in 2023. As part of efforts to reduce dependence on Russian gas, Gasunie subsidiary EemsEnergyTerminal has signed the first suppliers that will supply LNG via the port

of Eemshaven in the Netherlands. ČEZ a.s. and Shell Western LNG B.V. have jointly contracted 7 billion cubic metres (bcm) of capacity—an important precondition for the security of supply of LNG. EemsEnergyTerminal expects the remaining 1 bcm of capacity to be sold in the coming months.

Low-Carbon Energy The UK’s Fourth round of Contracts for Difference scheme, the biggest renewables auction so far, secured almost 11 gigawatts (GW) of clean energy - enough to power around 12 million homes, the UK government said in early July. The round secured the 11 GW across a range of clean technologies, including offshore wind, solar, onshore wind, and - for the first time ever - floating offshore wind and tidal stream – helping to boost British energy security and independence with cleaner, more affordable and diverse energy created in the UK.

EUROPE

Scottish renewable energy projects won contracts for 3 GW to sell their power in the vital UK auction – at record low prices, Scottish Renewables said. Offshore, two projects off Scotland’s east coast won Contracts for Difference in a competitive UK Government auction process – at just £37.35 per megawatt-hour, 6% cheaper than in previous auctions. The UK government’s British Energy Security Strategy set out how Great Britain will accelerate the deployment of renewable technologies, with an ambition to see 95% of electricity being low carbon by 2030. The strategy also set out an increased ambition for the number of clean jobs in the UK by supporting 90,000 in offshore wind by 2030. The Crown Estate identified on 5 July five broad ‘Areas of Search’ for the development of floating offshore wind in the Celtic Sea – a region rich in natural resources, including world-class wind resource that can be developed with floating turbines. It is intended that these areas will deliver 4 GW of floating offshore wind power by 2035 – kick-starting industry in the region and providing power to almost four million homes, The Crown Estate said. Six fixed offshore wind projects, with the potential to generate renewable electricity for more than 7 million homes, have been given the green light by the Secretary of State for Business, Energy and Industrial Strategy to enter into an Agreement for Lease with The Crown Estate. UK’s offshore industry investments could generate 26,000 new green energy jobs by 2030, according to research by Robert Gordon University (RGU), but only if investment conditions were right. RGU’s Energy Transition Institute examined the potential benefits of three new fastexpanding energy technologies: mass production of hydrogen, carbon transport and storage, and electrification of offshore platforms to reduce emissions from oil and gas production. The UK could have an active Floating Offshore Wind (FOW) workforce of between 22,000 and 67,000 by 2040, according to a report developed and delivered by Opergy Limited in partnership with the Offshore Renewable Energy Catapult’s Floating Offshore Wind Centre of Excellence (FOW CoE). The actual number will depend on the deployment strategy pursued by the UK, the report says. With a base case deployment scenario of more than 18 GW, this will require an active workforce of more than 31,000 employed in floating offshore wind by 2040. “Key shortfalls in skills and jobs have been identified in a number of areas. This includes development and consenting, project management, electrical and high voltage electrical systems (including cable jointing), and a range of vocations and skills

The shareholders of Mainstream Renewable Power and Aker Offshore Wind have entered an agreement to combine the two companies to create a stronger renewable company with a 27-GW portfolio across solar, onshore wind, and bottom-fixed and floating offshore wind projects.

bp and thyssenkrupp Steel announced on 11 July they had signed a memorandum of understanding (MoU) focused on the development of long-term supply of lowcarbon hydrogen and renewable power in steel production, helping accelerate the steel industry’s wider energy transition.

William Lin, bp Executive Vice President

Shell will start building Europe’s largest renewable hydrogen plant after taking the final investment decision to build Holland Hydrogen I on the Tweede Maasvlakte in the port of Rotterdam. The renewable power for the electrolyser will come from the offshore wind farm Hollandse Kust (noord), which is partly owned by Shell.

associated with fabrication and advanced manufacturing. More broadly there is a shortfall in digital skills across all areas and, to a lesser extent, most engineering disciplines,” the report noted. The Global Underwater Hub (GUH) said in early July that floating offshore wind represents the greatest opportunity for the £8 billion subsea industry in the UK this generation and must not be missed. “With our world-leading status and marketshare, the subsea industry clearly has competitive advantage. The underwater elements of manufacturing, assembling, installing and then operating and maintaining floating offshore wind projects are eminently transferable from offshore oil and gas, where subsea expertise was, largely, honed and refined,” said Neil Gordon, Chief Executive of GUH.

“As part of our strategy to provide a range of decarbonisation solutions to corporates, bp is already investing in and working to develop a portfolio of industrial-scale hydrogen projects in Germany, the Netherlands, Spain, the UK and Australia. With our aligned ambitions and complementary investments, thyssenkrupp Steel and bp can together help this hard-toabate sector decarbonise faster,” said William Lin, bp Executive Vice President, regions, cities & solutions.

Hydrogen company HyCC plans a Project H2era to construct a 500-MW green hydrogen plant in the Amsterdam port area. HyCC intends to start operations of the new plant in 2027. HyCC and the Port of Amsterdam have completed a first feasibility study and the project will be further developed in the coming months during the study phase (pre-FEED). Gasunie will develop the hydrogen network in the Netherlands in the coming years, after which it will assume the role of TSO (Transmission System Operator), the company said at the end of June, after Dutch Minister for Climate and Energy Rob Jetten announced new plans for the construction of a national transport network for hydrogen.

Johnson Matthey (JM), a sustainable technologies provider, announced that it is building a £80 million gigafactory at its existing site in Royston, UK, to scale up the manufacture of hydrogen fuel cell components. Earlier this year, JM announced a refreshed strategy, with an ambition to be the “market leader in performance components for fuel cells and electrolysers”, targeting more than £200 million sales in Hydrogen Technologies by end of 2024/25. Equinor said that supply chain bottlenecks, especially in the global steel market, would delay the delivery of the final four tower sections for the wind turbines at the Hywind Tampen project. The seven first Hywind Tampen turbines will come on stream this year as planned, but the final four will be installed next spring at the site, which is about 140 kilometres off the Norwegian coast.

(Photo: Source HyCC)

ENERGY NEWS

ENERGY REVIEW By Tsvetana Paraskova

Ukraine, the possibility of slowing economic growth, how sanctions would affect Russia’s oil production, the production decisions of the OPEC+ group after August, and the rate at which US oil and natural gas production rises. Refinery utilisation across the US is expected at or near the highest levels in the past five years. However, operable US refinery capacity has fallen by about 1 million bpd over the past two years, which means that US refinery output of products would not reach its highest level in the past five years in 2022. US natural gas production is expected to hit an all-time high in the coming months, exceeding 100 billion cubic feet per day (Bcfd) by the end of 2022, helping feed global demand as the world faces a severe supply shortage, a Rystad Energy analysis showed in July. Production growth from the major US gasproducing basins of the Haynesville and Appalachia, in addition to associated gas volumes from the Permian, will solidify the country’s position as the world’s largest gas producer, stretching its lead over Russia, and surpassing the official growth expectations of the EIA, Rystad Energy noted. “Already the top gas producer in the world, the US stands ready to boost output further to meet the global demand, but takeaway constraints are a serious risk. However, with new LNG capacity expected to be added after 2024, the US is set to grow its role in global gas markets for some time to come,” said Kristine Vassbotn, Rystad Energy senior analyst.

US LNG Exports To Rebound in 2023

While petrol prices in the United States fell in July from the record highs of June, the US oil and gas industry continued to call on the Biden Administration to stop its mixed messages to conventional energy producers and not frustrate the sector’s efforts to raise oil and gas production, which is badly needed not only in the United States but also in Europe in the aftermath of the Russian invasion of Ukraine.

www.ogv.energy I August 2022

Meanwhile, US benchmark natural gas prices have almost doubled in a year, due to the strong demand for US liquefied natural gas (LNG) in Europe, which scrambles with low Russian gas supply and with efforts to wean off Moscow’s energy influence.

Record US Oil & Gas Production Expected in 2023 The Energy Information Administration (EIA) continues to expect US crude oil production to reach a record annual high next year, rising by nearly 1 million barrels per day (bpd) from 2022 to 2023. In its July Short-Term Energy Outlook (STEO), the EIA sees US crude oil production averaging 11.9 million bpd in 2022 and 12.8 million bpd in 2023. If the forecast for next year materialises, it would set a record for most US crude oil production in a year. The current record is 12.3 million bpd, set in 2019. Still, the US administration warned that its forecasts are subject to heightened uncertainty due to Russia’s invasion of

US LNG exports averaged 11.2 billion cubic feet per day (Bcf/d) in the first half of 2022, but they would be lower in the second half because of the outage at the Freeport LNG export facility, which will not return to full operations before January 2023, the EIA said. This year’s LNG exports are set to average 10.9 Bcf/d, while exports are set to jump to an average of 12.7 Bcf/d in 2023. Europe has become the primary destination of US LNG exports, as the EU looks to fill gas storage sites ahead of the winter amid low Russian gas flows, trying to avoid a heating season of rationing of gas use for some industries and even households. Following the Russian invasion of Ukraine and the reduced Russian gas flows to Europe as of June, European countries are now importing more US LNG than the volume of pipeline imports from Russia, Fatih Birol, Executive Director of the International Energy Agency (IEA), said at the end of June. “Russia’s recent steep cuts in natural gas flows to the EU mean this is the 1st month in history in which the EU has imported more gas via LNG from the US than via pipeline from Russia,” Birol tweeted on 30 June. “The drop in Russian supply calls for efforts to reduce EU demand to prepare for a tough winter,” the head of the agency added.

US France, Spain, the Netherlands, Japan, and Italy were the top five destinations of US LNG exports in May, representing 46.4% of all US LNG shipments that month, the US Department of Energy said on 15 July. US LNG exports in May rose by 6.4% from April 2022 and by 11.5% from May 2021, according to the latest available US data. In May 2022, Freeport – currently out of service – shipped 22 cargoes out of the total 114 cargoes that left US shores. As demand for natural gas domestically and abroad has risen over the past year, the monthly average Henry Hub natural gas spot price, the US benchmark, nearly doubled, the EIA said in July, citing data from Refinitiv Eikon. The price rose from $3.84 per million British thermal units (MMBtu) in July 2021 to $7.70/MMBtu in June 2022. Since the middle of 2021, demand growth has outpaced domestic production growth, keeping inventory levels low, the EIA said. The benchmark US price fell after the Freeport LNG outage, which made more gas volumes available domestically.

Frank Macchiarola, Senior Vice President of Policy, Economics and Regulatory Affairs at the American Petroleum Institute (API), commented on the proposed programme:

“From Day One, President Biden and I have made clear our commitment to transition to a clean energy economy." Secretary of the Interior, Deb Haaland, said.

US Producers Criticise Proposed Offshore Leasing Programme In early July, the US Administration invited comments on its proposed five-year programme for offshore oil and gas leasing, which removes federal waters off the Atlantic and Pacific coasts from consideration and puts forward several options from no lease sales to up to 11 lease sales over the next five years. The proposed programme removes from consideration the federal waters off the Atlantic and Pacific coasts while inviting public comment on 10 potential sales in the Gulf of Mexico and one in the Cook Inlet off south-central Alaska. “From Day One, President Biden and I have made clear our commitment to transition to a clean energy economy. Today, we put forward an opportunity for the American people to consider and provide input on the future of offshore oil and gas leasing. The time for the public to weigh in on our future is now,” Secretary of the Interior, Deb Haaland, said. “These potential lease sales, including in the GOM, could be further refined and targeted, based on public input and analysis, prior to program approval. The Final Program also may include fewer potential lease sales, including no lease sales,” the Department of the Interior said in a statement. The US oil and gas industry criticised the decision and called on the Administration once again to prioritise US energy production growth, including of oil and gas resources which are now needed domestically and in European allies more than ever.

“At a time when Americans are facing record high energy costs and the world is seeking American energy leadership, tonight’s announcement leaves open the possibility of no new offshore lease sales, the continuation of a policy that has gone on for far too long.” “Because of their failure to act, the U.S. is now in the unprecedented position of having a substantial gap between programs for the first time since this process began in the early 1980s, leaving U.S. producers at a significant disadvantage on the global stage and putting our economic and national security at risk,” Macchiarola added.

The Energy Workforce & Technology Council also expressed dissatisfaction with the proposed leasing programme, with CEO Leslie Beyer saying “I applaud the Department of Interior for finally releasing its five-year offshore leasing plan, which they are required to do by law. However, it contains much ambiguity and uncertainty for the industry, signalling a plan for 11 lease sales, but not guaranteeing any lease sales.”

“If the Administration’s goal is truly to bring down energy costs and provide energy security for our nation, the Department should be expanding offshore drilling access to boost production to meet demand instead of limiting leases and continuing to disincentivise domestic production,” Beyer added. While US President Biden visited in mid-July Saudi Arabia to discuss oil supply, among other things, the API once again invited the President to visit American energy sites and support US producers. “Instead of meeting with foreign governments to ask them to increase energy production, look to reliable U.S. energy sources here at home,” API President and CEO Mike Sommers said in a video. “With a tight global market, Washington can no longer ignore the immense potential of American energy,” Sommers said. “President Biden, join me and the men and women of America’s energy industry – from the fields of New Mexico and plains of North Dakota, to the mountains of Pennsylvania and bayous of Louisiana. Together we can tackle today’s energy challenge with energy solutions right here under our feet.”

France, Spain, the Netherlands, Japan, and Italy were the top five destinations of US LNG exports in May, representing 46.4% of all US LNG shipments that month, the US Department of Energy said on 15 July. US LNG exports in May rose by 6.4% from April 2022 and by 11.5% from May 2021, according to the latest available US data.

ENERGY NEWS

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What Will OPEC+ Do Next?

Energy Review By Tsvetana Paraskova

The supply management policies of the OPEC+ production group, US President Joe Biden’s first visit to the Middle East, and the spare capacity left at major oil producers were the focus of the past month in the Middle East’s oil and gas sector. What Will OPEC+ Do Next? The OPEC+ group, led by Saudi Arabia, confirmed it would have rolled back by the end of August all the production cuts they started to implement in May 2020 in response to the oil demand crash in the pandemic’s early days. The meeting at the end of June reiterated the previous month’s decision to accelerate the production increase initially planned for September to July and August. Saudi Arabia, OPEC’s top producer, will have a target production level of 11 million barrels per day (bpd) in August, according to the quotas OPEC shared at the end of the latest

www.ogv.energy I August 2022

meeting. Russia, the leader of the non-OPEC group in the pact, has the same target as Saudi Arabia, but although it has managed to restore some output lost in April and May, Moscow is still way below target and unlikely to reach it amid bans and embargoes for its crude oil and products in the West. Analysts have now shifted their focus to the bigger question: what happens next when OPEC+, at least on paper, will have unwound all the cuts from 2020. OPEC alone was around 1 million bpd below its production target in June, the organisation’s latest Monthly Oil Market Report (MOMR) showed in the middle of July. For the wider OPEC+ group, production is estimated to be

around 2.7 million bpd below target. Several producers in OPEC, most notably Nigeria, have been struggling for months to pump to their quotas, due to a lack of capacity and investment. Russia is also well below targets, contributing to the growing gap between the OPEC+ group’s targeted production levels and actual oil supply to the market. The OPEC+ agreement per se currently ends at the end of 2022. Market observers are now watching closely whether the group, or some members of it, would move to boost production further, considering the physical market tightness ahead of the EU embargo on imports of Russian seaborne crude oil and petroleum products, which is set to kick in at the end of this year.

MIDDLE EAST OPEC and the wider OPEC+ group are also under pressure to boost supply and lower prices from major consuming economies, including the United States, which is scrambling to fight the highest annual inflation rate in more than 40 years.

President Biden Fails To Secure Specific Pledge for Output Boost

Middle East’s Spare Capacity Could Be Critically Low

Qatar Proceeds with Massive LNG Expansion

It is uncertain, however, whether those producers would be willing and/or able to tap into their spare capacity in short order and keep elevated production levels for a sustained period of time.

Elsewhere, QatarEnergy completed the line-up of international energy majors taking part in the North Field East expansion project in Qatar, the single largest project in the history of the liquefied natural gas (LNG) industry, by picking Shell as a partner in early July. Shell thus joins TotalEnergies, Exxon, ConocoPhillips, and Eni as a partner of the Qatari state energy firm in the LNG expansion project. The project will also be integrated with carbon capture and sequestration to reduce emissions.

Saudi Arabia, for example, has rarely pumped more than 11 million bpd – its target for August – and surely not on a sustainable basis. OPEC’s spare capacity appears to have almost entirely eroded as oil production by the group has ramped higher over the last year, Enverus Intelligence Research (EIR) noted in a report issued just ahead of President Biden’s trip to the Middle East.

US President Joe Biden visited the Middle East, including Saudi Arabia, in mid-July, but the meetings with the Arab leaders and the rulers of OPEC’s top producers did not result in any immediate announcement regarding an increase in oil production. During meetings in Saudi Arabia and on the sidelines of an Arab summit in Jeddah in the middle of July, President Biden failed to secure firm pledges from the Saudis, Iraq, or the UAE for an imminent supply increase.

“Aside from sanctions-bound Iran, EIR reiterates its view that consumer pressure on OPEC countries for extra oil supply in the very near term is unlikely to produce positive results,” Enverus Intelligence Research said.

“If President Joe Biden is hoping that his July trip to the Gulf will yield an immediate and significant tranche of extra oil supply from Arab Gulf producers, he will likely be disappointed,” said Bill OPEC’s spare Farren-Price, report author capacity appears to and a director at Enverus have almost entirely Intelligence Research.

eroded as oil production by the group has ramped higher over the last year

The White House said “The leaders recognised ongoing efforts of OPEC+ towards stabilising the global oil market in the interests of consumers, producers, and supporting economic growth. They welcomed the recent announcement by OPEC+ members to increase supply over the course of July and August, and commended the Kingdom of Saudi Arabia’s leading role in achieving consensus between the members of OPEC+.” President Biden commented on his meetings in Saudi Arabia “We had a good discussion on ensuring global energy security and adequate oil supplies to support global economic growth. And that will begin shortly. And I’m doing all I can to increase the supply for the United States of America, which I expect to happen. The Saudis share that urgency, and based on our discussions today, I expect we’ll see further steps in the coming weeks.” While President Biden and officials at his Administration express confidence that Middle Eastern oil producers could take “further steps” to boost oil supply in the immediate future, analysts question how much spare capacity there is left with those producers. Saudi Arabia and the UAE are believed to be the only producers with some capacity still left for a meaningful rise in oil production.

“A more likely outcome is that if talks go well, Riyadh commits to increase supply over the medium term.”

Unless Saudi domestic refining is squeezed, stocks drawn from storage or direct-burn crude reduced, that capacity is not immediately available now, EIR added. However, EIR analysts believe that Saudi Arabia could increase supply (if it wanted to) towards its official 12 million bpd ceiling if it deploys additional rigs over the next 6 to 12 months. Saudi Arabia will not have additional capacity to increase production above the 13 million bpd it has pledged to have by 2027, Saudi Crown Prince Mohammed bin Salman said at the Arab summit attended by US President Biden. Commenting on Saudi Arabia’s commitment to ensure global supplies, the Crown Prince said that “The Kingdom will do its part in this regard, as it announced an increase in its production capacity to 13 million barrels per day, after which the Kingdom will not have any additional capacity to increase production.” Currently, no one really knows how much spare capacity the Middle East has left. Estimates range from an optimistic 3 million bpd to a critically low level of fewer than 1 million bpd. The lower the spare capacity, the more shocking another supply shock would be to the market and to oil prices.

Shell’s CEO Ben van Beurden said, commenting on the new partnership: “Through its pioneering integration with carbon capture and storage, this landmark project will help provide LNG the world urgently needs with a lower carbon footprint. Lower carbon natural gas is a key pillar of our Powering Progress strategy and will also help us achieve our target of becoming a net-zero emissions business by 2050.”

Contracts & Deals Abu Dhabi National Energy Company PJSC (TAQA) said in early July it had completed the strategic review of its oil and gas business announced in September 2021, and decided to retain its oil and gas portfolio. “As part of the review, the company had been exploring the potential sale of certain of its oil and gas assets. It has been concluded that TAQA’s oil and gas portfolio will be retained, except for the upstream assets in the Netherlands where discussions are ongoing,” the company said. “We have concluded that retaining the vast majority of the portfolio will deliver the best value for the company and its stakeholders. This is in part evidenced by the strong contribution – over 15% – that the oil and gas business contributed to our revenue and earnings in 2021. That trend has continued into this year,” Group CEO Jasim Husain Thabet said. Worley said on 19 July it had been awarded two project management service contracts for Saudi Aramco’s unconventional gas programme in North and South Arabia and Jafurah. Under the contracts, Worley will provide front-end engineering design (FEED), detailed design support, project management services, and construction management services. Abu Dhabi National Oil Company (ADNOC) and TotalEnergies signed on 19 July a strategic partnership agreement that aims to jointly evaluate new growth opportunities in the development of oil and gas projects in the UAE to ensure sustainable energy supply to the markets and contribute to global energy security; supply of diesel from the UAE to France; and prospects for a commercial carbon capture, utilisation, and storage (CCUS) project in the UAE.

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WORLD PROJECTS

WORLD PROJECTS MAP 8 3

8 12

5 10 6 1

2 4

11 7 8

NIGERIA

Bonga North Tranche 1 – OML 118 Shell

$3.9 billion Expressions of interest for three EPC packages have been submitted and the prequalification process is currently underway. The three contracts cover: modification of an FPSO and integrating the FPSO with subsea umbilical, flowlines and risers: delivery of the SURF package; subsea equipment.

CAMEROON

NETHERLANDS

INDONESIA

Holland Hydrogen I

Timpan-1 Gas Discovery

$150 million

$200 million

$250 million

Tower Resources

Tower Resources are looking to drill the NJOM-3 appraisal well by the end of 2022. If the drilling goes ahead and is deemed successful, a decision will be made regarding three wells that are set to be drilled in Q1 2023, before contracts are awarded for the MOPU and the small platform set to beused. First production is planned for 2024 and will subsequently be followed by further drilling campaigns.

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www.ogv.energy I August 2022

Njonji Oil Field

Shell

A final investment decision has been made to build the 200MW electrolyser which will produce 50,000 – 60,000kg of hydrogen per day. The electricity will come from the Hollandse Kust (Nord) wind farm. Construction will begin for the plant to be operational in 2025.

Energy projects and business intelligence in the energy sector The EIC delivers high-value market intelligence through its online energy project database, and via a global network of staff to provide qualified regional insight. Along with practical assistance and facilitation services, the EIC’s access to information keeps members one step ahead of the competition in a demanding global marketplace.

Harbour Energy

Harbour Energy announced that the company has completed the drilling of Timpan-1 exploration well, located 150km off shore Indonesia in the Andaman II PSC. The company stated that the well was drilled to a total depth of 4,211m and flowed 27MMcf/d of gas and 1,884bpd of associated 58 degrees API condensate. It is mentioned that further work will be required to establish commerciality and the full potential of the project.

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.

WORLD PROJECTS USA

INDIA

Sparta Offshore Oil Field Shell

$5.5 billion

BELGIUM / NORWAY

Laminaria-Corralina Fields Decommissioning

North-Western Europe Carbon Capture Infrastructure Project

$260 million

$6.5 billion ACME is planning to develop a 1.5GW green hydrogen and ammonia plant, powered by a 5GW solar plant to produce 1.1 million tonnes of ammonia. The project will cost USD6.55 billion. Ammonia and hydrogen from the plant will be used to decarbonise fertiliser production, for refining and steel manufacturing and for power. pipeline to an onshore central processing facility.

ALGERIA

AUSTRALIA

Northern Territory Government

ACME Solar

Pending approval by relevant authorities and customary conditions Shell announced that they are to acquire the 51% operating interesting from Equinor for the North Platte field, which has been renamed Sparta. The companies will review the FEED work and the development plan. It is understood that the project could use the same design as previously used for Shell’s Vito and Whale development projects.

BRAZIL

Tamil Nadu Green Hydrogen & amp; Ammonia Plant

The federal government has awarded Wood with a contract for the decommissioning project. Under the contract, Wood will be overseeing the first decommissioning phase of the Northern Endeavour floating production, storage and offloading vessel. The company will work closely with the Department of Industry, Science, Energy & amp; Resources (DISER) and contractors to ensure the safe, efficient and responsible initial phase of this critical decommissioning scope.

ANGOLA

Block BM-C-33 - Pão de Açucar Gas Field

Hassi R’Mel Gas Field – Lias Carbonate Reservoir

Block 17: CLOV Field Development Phase III

$4 billion

$1 billion

$850 million

Equinor

TechnipFMC has signed a letter of intent with Equinor for an integrated front end engineering and design (iFEED) contract for the project. The FEED is expected to lead to an EPCI contract worth more than US $1 billion following a final investment decision, which could be seen in May 2023. Pending the FID, the EPCI contract would include subsea trees, manifolds, jumpers, rigid risers and flowlines, umbilicals, PLETs, subsea distribution units and topside control equipment, in addition to life-of-field services that will become operational by Q2 2023.

Sonatrach

A significant new gas discovery made by Sonatrach in the Sahara Desert may contain up to 12 trillion cubic feet of reserves. The preliminary evaluation of this potential showed a volume that varies between 3.1 Tcf and 13 Tcf of gas. The project intends to move quickly, with the first production beginning in November 2022. A development work program is underway to confirm the estimated volumes and achieve fast-track production of around 300 MMcf/d.

Total

Equinor / Fluxys

$1 billion

Equinor and Fluxys plan to develop an infrastructure project connecting Belgium to Norway to capture carbon dioxide (CO2) from emitters to store in the North Sea. The project includes a 1000km CO2 export trunkline operated by Equinor which will transport CO2 for storage under the seabed on the Norwegian continental shelf. A final investment decision is expected by 2025.per annum of green hydrogen and 10 million tonnes of green ammonia.

USA

Corpus Christi LNG Liquefaction Terminal Stage 3 Cheniere Energy

TotalEnergies and its partners have reached a final investment decision (FID) on the USD$850 million CLOV Phase 3 development. This work will see an extension of the subsea production network and its interconnection to the CLOV FPSO to develop additional production from existing fields. It will involve the drilling of five new wells, in water depths between 1,100 and 1,400 metres. The phase is expected to begin production in 2024, with a target production of 30,000 boe/d.

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$10 billion

The final investment decision (FID) on developing the project has been made by Cheniere Energy and contractor Bechtel has been given a full notice to proceed with the initiative’s construction. Startup is expected in late 2025, most likely in Q4.

HYDROGEN & CCS

ENERGY CRISIS BOLSTERS GREEN HYDROGEN AND CCUS PROJECTS By Tsvetana Paraskova

The energy crisis and the Western drive to cut dependence on Russian fossil fuels, coupled with government and company pledges for net-zero economies and operations by 2050, have accelerated plans for decarbonisation projects such as green hydrogen and carbon capture, utilisation and storage (CCUS).

Low-carbon hydrogen is one of the ten items in the UK’s The Ten Point Plan for a Green Industrial Revolution unveiled two years ago. The UK Hydrogen Strategy from August 2021 says that low-carbon hydrogen will be critical for meeting the UK’s legally binding commitment to achieve net zero by 2050. “Hydrogen can support the deep decarbonisation of the UK economy, particularly in ‘hard to electrify’ UK industrial

Hydrogen and CCUS are part of many government plans for net-zero emissions. They are also part of investments in decarbonisation of energy-intensive industries of many international oil and gas majors, most of which have pledged to become net-zero energy companies within three decades. Hydrogen and CCUS will need a lot of government support and massive private investment to become cost-effective solutions in the energy transition. Yet, projects in these areas are already gaining momentum with the net-zero emission targets and, most recently, the upended global energy markets after the Russian invasion of Ukraine, which prompted Western economies to accelerate the development of hydrogen projects as part of an irreversible policy to move away from Russian oil, gas, and coal.

Hydrogen Features in Government Plans for Decarbonisation Hydrogen is a key pillar in government plans for decarbonisation in Europe, including in the latest energy strategies of the UK and the European Union.

www.ogv.energy I August 2022

energy across power, heat and transport. Moreover, the UK’s geography, geology, infrastructure and expertise make it particularly suited to rapidly developing a low carbon hydrogen economy, with the potential to become a global leader on hydrogen and secure economic opportunities across the UK,” the strategy says.

split across industry, power, and the transport and storage network, the plan says. The EU also looks to accelerate the development of hydrogen and hydrogen corridors in the Mediterranean and the North Sea, as part of its REPowerEU Plan, its response to the hardships and global energy market disruption caused by Russia’s invasion of Ukraine. The EU Energy Platform will enable the joint purchase of renewable hydrogen. The EU is also proposing setting a target of 10 million tonnes of domestic renewable hydrogen production and 10 million tonnes of imports by 2030, to replace natural gas, coal, and oil in hard-to-decarbonise industries and transport sectors. The European Commission will also roll out carbon contracts for difference to support the uptake of green hydrogen by industry.

The UK has an ambition to have up to 10 gigawatts (GW) of low carbon hydrogen production capacity by 2030, as set in the recent Energy Security Bill. The UK Hydrogen Strategy sets out a so-called ‘twin-track’ approach to supporting both electrolytic ‘green’ and CCUS-enabled ‘blue’ hydrogen production from natural gas. The UK has recently doubled its target for hydrogen production from 5 GW to up to 10 GW by 2030, with at least half of this coming from electrolytic hydrogen.

Green hydrogen’s attractiveness as a source of renewable energy supply has grown as the cost of the other forms of hydrogen production – blue and gray – have soared with high natural gas and coal prices, according to Rystad Energy.

The Energy Security Bill aims to enable the delivery of a large village hydrogen heating trial by 2025, providing crucial evidence to inform strategic decisions in 2026 on the role of hydrogen in heat decarbonisation. Two potential locations for this have already been announced in Whitby, in the Ellesmere Port area, and Redcar.

The war in Ukraine has turbocharged the green hydrogen sector. Green hydrogen’s potential win comes at the expense of its fossil fuel-linked blue and gray alternatives, whose costs have increased by over 70 percent since the start of the war in Ukraine, rising from about $8/kg to $12/kg in a matter of days, Rystad Energy said a month after the Russian invasion of Ukraine.

The plans also includes a target to capture and store 20-30 Mt CO2, which includes 6 Mt CO2 of industrial emissions, per year, by 2030. This could support over 12,000 jobs across the hydrogen value chain and 50,000 jobs in the CCUS sector

“Green hydrogen promises energy security as well as potential new regional economies for renewable energy. While some countries are focused on domestic usage, others are focusing on exports, suggesting that we may be moving

Green Hydrogen Attractiveness Grows

HYDROGEN & CCS from a world where energy is sourced in a few key regions, to a world where production is more spread-out,” according to the independent energy consultancy. “The decade ahead is a make or break one for the green hydrogen sector – if production can be increased as planned to more than 10 million tons globally by 2030 and costs cut to $1.5/kg or less, then the

policy support, especially in Europe. Clean hydrogen-focused companies are raising more money than ever before, and the value of a quadrupled since the end of 2019,” the IEA said in its report. Investment in CCUS has also jumped, to around US$1.8 billion in 2021, as six

the global energy mix,” Rystad Energy says.

investment decisions last

“While industry and governments are heading in the right direction, their challenge is to lower the risks for green hydrogen investors and create incentives necessary to scale up quickly both the demand and supply,” commented Minh Khoi Le, head of hydrogen research with Rystad Energy.

private capital are starting to

Carbon Capture Also Set for Surge Another key technology for reducing emissions as the energy transition accelerates, CCUS, is also poised for major uptake this decade, according to Rystad Energy research. Globally, CCUS projects are on track to pull more than 550 million tonnes of CO2 out of the atmosphere every year by 2030. This would be a more than tenfold increase over today’s 45 million tonnes per annum (tpa) of CO2 captured, as the drive to decarbonize gathers pace, Rystad Energy said in April. As a result of supportive policies and incentives, Europe and North America are expected to dominate the CCUS market by 2030, contributing 450 million tpa of capture capacity, more than 80 percent of the projected global total of 550 million tpa. are the main reason for CCUS projects not moving ahead as planned, but more countries are starting to see the importance of providing support to such projects,” Rystad Energy said. “Demand for carbon capture projects through to 2030 will be predominantly driven by policies and support, especially for hard-to-decarbonize sectors such as cement, steel, maritime and chemicals,” the consultancy added. Moreover, service sector spending on CCS developments is set to quadruple from 2022 to 2025, with cumulative global expenditure over the next three years topping $50 billion, Rystad Energy research found in March. Globally, there is rapid growth underway in spending on emerging technologies such as low-emissions hydrogen, CCUS, and batteries, the International Energy Agency (IEA) said in its World Energy Investment 2022 report in June. “The momentum behind low-emissions hydrogen has been reinforced by Russia’s invasion of Ukraine, which has bolstered

costly technologies to remove CO2 from the air and store or use it, the IEA noted.

Project Developments Abound It’s not only start-ups that work on hydrogen and CCUS. Major legacy oil and gas producers are also increasing investment in green technologies as they aim to become net-zero energy companies by 2050, slash their operational emissions, and help hard-to-decarbonise industries reduce their carbon footprint. For example, Wood is partnering with C-Capture on a project which has been awarded £1.7 million in UK government funding to demonstrate the feasibility of a next generation, low-cost carbon capture solutions in hard-to-decarbonise industries. bp – the operator of the Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP) projects in the UK – has already awarded contracts to two separate consortiums of engineering, carbon

capture licensors, power providers, and EPC contractors. Net Zero Teesside Power is a integrated with carbon capture technology, with emissions planned to be exported and securely stored by the Northern Endurance Partnership. bp will also lead and operate one of the world’s largest renewables and green hydrogen energy hubs, based in western Australia, after taking a 40.5-percent stake and operatorship of the Asian Renewable Energy Hub (AREH) project in the Pilbara region. AREH intends to supply renewable power to local customers in the largest mining region in the world and also produce green hydrogen and green ammonia for the domestic Australian market and export to major international users. Shell, for its part, will start building Europe’s largest renewable hydrogen plant after its subsidiaries Shell Nederland B.V. and Shell Overseas Investments B.V. took the FID to build Holland Hydrogen I. This will be Europe’s largest renewable hydrogen plant once operational in 2025. The 200-MW electrolyser will be constructed on the Tweede Maasvlakte in the port of Rotterdam and will produce up to 60,000 kilograms of renewable hydrogen per day. The renewable power for the electrolyser will come from the offshore wind farm Hollandse Kust (noord), which is partly owned by Shell.

HYDROGEN & CCS

UK HYDROGEN MARKET DEVELOPMENT: Where are we now and where we might be going?

Progress was made in UK policy to help establish the hydrogen economy in the last two years. Large-scale projects – mostly based on blue hydrogen – in industrial clusters are also moving closer to final investment decisions. While interest in hydrogen has also been growing outside of clusters, the volume of investment committed to date has been relatively limited. The tide on investment decisions should hopefully turn rapidly when details of the proposed funding mechanism become clearer. At the same time, high natural gas prices may compel stakeholders to re-examine the investment case for blue hydrogen. However, such scrutiny must be viewed against the wider economic benefits that blue hydrogen projects could bring to local economies.

Where are we now? Two years ago, our Investing in hydrogen – Ready, set, net-zero report called for targeted policy interventions in four areas to attract investment into hydrogen: • a clear policy framework based on a national strategy and roadmap • sectoral coordination based on industrial clusters • a supportive short- to medium-term funding structure to reduce investment risk and stimulate innovation • development of a regulatory regime and standards to enable the production, transport and use of hydrogen.

British Energy Security Strategy doubled the hydrogen production capacity target to 10 GW and stipulated that half of this target should be green. The same month saw the publication of the Hydrogen Investor Roadmap, a summary of policies enabling the development of the UK hydrogen market.

Dan Grosvenor

There is also greater sectoral coordination between demand and supply based on industrial clusters. In October 2021, the government confirmed that HyNet and the East Coast Cluster would be taken forward to Track-1 negotiations on the level of support they are going to receive from the £1 billion Carbon Capture and Storage (CCS) Infrastructure Fund. In addition, progress has also been made to Blue hydrogen is expected to build the market create a funding structure to support early by providing larger volumes of low carbon hydrogen production projects and boost hydrogen over shorter timescales than it innovation. In autumn 2021, the government would be possible via electrolysis. Transport launched a consultation with businesses on and storage infrastructure costs can be the preferred funding models for hydrogen minimised by serving customers concentrated production projects that are not eligible for in industrial clusters. business model support under the CCS cluster sequencing process. In April However, the historically higher spot and 2022, the government confirmed futures prices for natural gas cast that revenue support will be doubt over the financial feasibility Blue hydrogen is used to support such low of blue hydrogen projects. In carbon hydrogen producers. comparison, green hydrogen expected to build the The government also projects are starting to look market by providing promised new business economically more attractive. models for hydrogen In addition, infrastructure larger volumes of low transport and storage requirements for blue and green carbon hydrogen over infrastructure by 2025. hydrogen are different; Instead of the complex CCS infrastructure shorter timescales Finally, the publication of the and a steady flow of (reasonably low carbon hydrogen standard priced) natural gas, green hydrogen in April 2022 was an important projects require access to renewable regulatory change that will be electricity and water. As such, they may necessary to establish the hydrogen economy. allow production facilities to be more closely located to end-users outside of clusters, serving a potentially wider range of customers. Where we might be going? While most of the policy foundation has been laid for the UK hydrogen market, some areas – such as hydrogen’s role in residential heating – still need further clarification. Nevertheless, businesses and investors are now focused on getting clarity on funding support, which will be crucial for the financial viability not only of projects currently planned but also potential future projects. The two industrial clusters selected for Track-1 negotiations are advancing on their project plans. HyNet, for instance, is on schedule to reach the final investment decision before the end of 2022.

While the economics of UK blue hydrogen projects may be challenged by the current and expected high natural gas prices, their impact should be evaluated against a wider set of metrics. The Net-Zero Humber industrial cluster contributes £18 billion to the UK economy annually and supports 360,000 jobs directly and indirectly*. Ramping up green hydrogen production to the same level, and within the same timescale as the planned blue hydrogen projects could achieve, would be a challenge. Longer project lead times may disrupt the continuation of carbon emission-intensive industrial activities in the area and risk missing national decarbonisation targets.

The past two years have seen progress across all four areas. In terms of the policy framework, two key documents were published in 2021. The Hydrogen Strategy outlined the government’s policy roadmap to help build the UK hydrogen economy and reach a 5 GW low carbon hydrogen production capacity target by 2030. The NetZero Strategy in turn explained how hydrogen fits into the UK’s overall approach to achieve net-zero emissions by 2050. In April 2022, the

www.ogv.energy I August 2022

Deloitte Touche Tohmatsu Limited, commonly referred to as Deloitte, is an international professional services network headquartered in London, United Kingdom. For more information visit www2.deloitte.com

Ole Gunnar Tveiten

CCUS FOR INCREASED OIL RECOVERY a new business opportunity?

Most people agree that we need to reduce carbon gas emissions now for our future generations.

By Ole Gunnar Tveiten, Advisor Geology, AGR

With this in mind, Carbon Capture Utilisation & Storage (CCUS) stands out as an important solution, if we want to keep our standards of living and mitigate climate change impact. More than 60 different CCUS projects are in progress in Europe (Map of global CCUS projects | IOGP Publications library). Worldwide, regulators follow the Paris Accord on climate changes and facilitate CCS financially representing business opportunities for the heavy industry in general and particularly within oil and gas.

The CCUS Challenges So, if we have the solution to achieve lower carbon world, why aren’t we closer to the target already? There are several challenges to overcome: 1. Capturing of CO2 is technically challenging and costly task. If we are going to be successful in carbon capture and storage, large-scale emissions must be captured from cement factories, energy production, refineries and ship engines to mention but a few. 2. Creating the infrastructure to make CCS economic should largely depend on use of the current oil and gas infrastructure. The re-use of appropriate facilities, however, requires detailed further studies. 3. The safe storage of CO2 in adequate aquifers at sufficient depth and reasonable distance from pumping stations is vital. Offshore storage is preferred, but some countries may opt for onshore storage. While #1 and #2 involve great challenges, #3 has already been tested and is actually widely used already.

A recently launched Norwegian multidisciplinary research effort (180 mNOK LinCCS) aims to solve the CCS challenges and could offer cost efficient solution for the entire carbon capture and storage supply chain. A collaboration between a number of operators, research institutions and service providers aims to meet the expectations of the Paris accord. A multidisciplinary project is essential, since the challenges are complex, and the number of disciplines are great. In addition, the desire to store clean energy, such as hydrogen, ammonia and natural gas, only adds to the complexity.

Turning North Sea into carbon storage tank Looking into the future, we can expect great demand for CO2 storage offshore. A plethora of saline aquifers commonly associated with oil and gas production are to be found in the North Sea, offering significant CO2 storage capabilities. The challenge is to find the best opportunities for storage in terms of injectivity, capacity, facility and end of field life. Key drivers for carbon storage are the size of aquifer; and the large depositional systems with significant clastic input that means accumulation of massive sands. Such reservoirs have yielded long term production of oil and gas and are in some fields at the end of production life, offering safe storage in the vicinity of significant infrastructure, such as pipelines and huge GBS platforms, that can serve for many years to come. In the North Sea, there are three massive depositional systems representing different ages of deposition and containing many fields at different stages of depletion. These are:

1. Statfjord - Brent reservoirs; Statfjord-, Gullfaks-, Oseberg-, Snorre fields, Early to middle Jurassic deposition from south to North. 2. Sognefjord, Fensfjord Fm late Jurassic delta building great depositional thickness of clastics from east to west, based on Caledonide denudation. 3. Andrew, Forties, Frigg/ Tay and Alba sequences constitutes a huge depositional system from the west into Central and Northern North Sea during Paleocene and Eocene.

Each drilled structure reveals a find or not, and with a nearly complete coverage of 3D seismic across the North Sea, this means that there is a very good control of saline aquifer reservoirs. The Norwegian Petroleum Directorate (NPD) has mapped and published "CO2 Atlas" where depositional clastic sequences, which could qualify as CO2 storage. Equinor together with Shell and TotalEnergies is operating the first CO2 transport and storage facility incorporating the Johansen Fm saline aquifer.

The Northern Lights is a costly project and heavily subsidised and without reuse of oil and gas facilities. The re-use of facilities may provide more cost-effective solutions. In Denmark, Ineos is working on CO2 storage in the Nini West field, which is at the final tail end of production, however without a final investment decision to date.

Carbon storage for improved recovery Increased recovery has been a measure of economic success throughout the history of oil and gas, and vast efforts have been put into different methods. Pressure support, water and gas injection, extended reach wells and horizontal wells, have all increased recovery from 30% in the 1950’s to 60% in recent years. Since the 1970’s CO2 has been used for displacing oil to increase recovery in the US, with CO2 at reservoir conditions having similar fluid density as oil, and in certain conditions becoming miscible, therefore making it ideal for displacing the oil. An economic game changer can be found if we allow Improved Oil Recovery (IOR) as a part of the CO2 storage project. The use of CO2 for displacing oil will increase recovery by 7% as a rule, representing a very good economic return. Politically, however, this is a big IF. The purpose of CO2 storage is to mitigate CO2 emissions from oil & gas. On the other hand, the tail production in oil and gas fields usually means that CO2 emission expressed as kg/bbl increases as production decreases. Frankly tail production, with very high emissions per barrel, should be avoided to improve energy efficiency and limit CO2 emissions. Norwegian Petroleum Directorate and Operators on the Norwegian Continental Shelf have been very successful in increased recovery, gaining record breaking results positive when considering resource utilisation where an IOR price is presented to the best company every year. However, maybe this should be reconsidered when 95% or more is water coming out of the production wells – something which is common. Using CO2 which to a large extent will remain stored in the reservoir may be a better choice, and at the same time the infrastructure for CO2 storage can also be established. To conclude, we see great opportunities for profitable CCUS, combining existing infrastructure in areas of extensive oil and gas production, where huge saline aquifers are located and opportunities exist for CO2 injection as an IOR technique.

With almost 40 years’ of industry experience, Ole Gunnar Tveiten has a deep knowledge of the North Sea. His track record in operational geology and geomechanics covers advising some of the most historical discoveries and field development projects in the basin. For more information visit agr.com

HYDROGEN & CCS

FUGRO’S GEO-DATA

supports development of offshore carbon storage

Carbon capture, usage and storage (CCUS) is now viewed as a key part of the world’s future low-carbon energy portfolio and plays a crucial role in realising emission reduction targets. To accelerate the energy transition in the UK, the North Sea Transition Authority has recently launched a licensing round for offshore CO2 storage on the UK Continental Shelf.

The new carbon storage areas, alongside the six licences which have been issued previously, could have the ability to make a significant contribution towards the aim of storing 20-30 million tonnes of CO2 by 2030. Whilst legislation and standards of CO2 storage are evolving, winning bidders will require extensive site characterisation to help plan, develop and operate carbon storage sites safely and efficiently.

Traditional CO2 leakage detection methods are inadequate The principal uncertainty in relation to offshore CO2 storage is modelling and detecting the volume of CO2 that has the potential to leak from the reservoir, migrate up to the seabed and ultimately be released back into the environment. The traditional methods to model fluid migration based on oil and gas 3D seismic data do not have sufficient resolution to detect the likely future CO2 leakage pathways. The maximum resolution of exploration and production scale 3D seismic data simply aren’t high enough, being constrained to 5 – 10 m bed resolution.

The starting point Operators bidding for offshore CO2 storage licences will rely heavily on site characterisation to provide a framework for managing the containment risks associated with the project. To establish a baseline, they need to be able to understand the overburden model (the multiple layers of rock above the reservoir) from a containment-risk perspective and identify all potential CO2 leakage pathways.

www.ogv.energy I August 2022

Fugro’s innovative approach for this initial stage involves: • Cost-effective, high-resolution 2D geophysical surveys – we combine seismic highresolution (HR) and ultra-highresolution (UHR) bandwidths to achieve a resolution of >0.5 m at a penetration depth of 500 m; and between 3 m and 10 m at 1200 m. Essentially shooting deep and shallow simultaneously. Improved definition in the overburden enables us to identify potential CO2 leakage pathways with far greater precision to optimise location of CO2 monitoring equipment at seabed.

Fugro seabed monitoring system awaiting deployment

• Oceanographic and environmental sensors – the dissolution of CO2 occurs within the first 4 m above the seabed, increasing the acidity of the water. We use seabed landers, observational tools that are lowered into position on the seafloor and equipped with oceanographic and environmental sensors, to continuously measure, monitor and verify any changes in the marine environment within the vicinity of potential leakage pathways identified in our geophysical surveys.

Always on the look-out for leakage Monitoring for potential leakage of CO2 must be carried out at regular intervals throughout the injection phase (which could last for up to 40 years, depending on the capacity of the reservoir) to detect any new fractures or changes in the characteristics of the leakage pathways.

Seabed landers continuously monitor the water column to detect any changes that indicate a potential leakage of CO2. The data is relayed in near real time to our network of remote operation centres, meaning that any anomalies are identified without delay, with precise information about their location and rate of leakage.

Looking to the future The UK has a large capacity for offshore CO2 storage, along with the skills and experience to be able to develop it quickly in the North Sea.

The UK has a large capacity for offshore CO2 storage, along with the skills and experience to be able to develop it

The offshore CO2 storage industry is in its infancy. Government legislation, standards and insurance requirements are evolving quickly, leaving investors and operators with quickly in the questions that have yet to be answered. What should North Sea. the sensors on the seabed landers be monitoring? What are the detection limits for CO2 leakage? The monitoring responsibilities will of What is the recommended frequency for course continue long after the CO2 has been the geophysical surveys? And how frequently permanently sealed in its storage location, should surveys be repeated? deep below the seabed. Conducting a traditional seismic survey is a very expensive operation requiring large technical vessels with a high day rate. In contrast, our cost-optimised solution: - Relies on smaller vessels (which have a lower day rate, use less fuel and require fewer offshore personnel, thereby also reducing cost and safety risks);

Much has yet to be decided, but we’re poised and ready to help the industry take on this exciting new challenge.

- Is more focused, because the baseline and subsequent data can be used to target identified potential CO2 leakage pathways with a high degree of accuracy; - Combines HR and UHR resolution to provide a much better definition of the overburden; - Enables subtle changes to be identified quickly by comparing current and previous datasets.

Image of 2D seismic surveys at potential leakage points (data courtesy of Energinet)

Fugro are here to help you create and operate assets safely, sustainably and efficiently. Reduce your project risk and enhance data insights. For more information contact Rob Hawkins, Regional Commercial Excellence Manager r.hawkins@fugro.com or visit www.fugro.com

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HYDROGEN & CCS HYDROGEN & CCS

Energy Transition is no longer relevant… We need to stop talking about an ‘Energy Transition’.

Why? Because this suggests an activity that has not started, that still needs to overcome resistance and build momentum. However, projects have been sanctioned, contracts won, and work is already well underway. We are no longer in the transition phase; we are transforming. So, forget ‘Energy Transition’ and embrace ‘Energy Transformation’. With energy transformation comes technology development, infrastructure, and the resources necessary to support industrial decarbonisation. Whilst we cannot solve every problem in every sector, we must At Global Maritime (GM) our focus is the blue economy. By developing this sector sustainably, it’s possible to drive transformation and accelerate decarbonisation. There is no one “silver bullet” to solve the decarbonised energy conundrum. However, if we view this challenge with ingenuity, it’s possible to identify a multitude of silver bullets to drive solutions.

Where the maritime sector is demonstrating leadership and vision in energy transformation is CCUS and offshore hydrogen production.

Carbon Capture Utilisation and Storage (CCUS) CCUS capture’s carbon dioxide (CO2) emissions from power generation and industrial processes, like steel and cement production. CO2 is captured via chemical absorption, physical separation, or membrane underground in geological formations. This system creates opportunities for traditional marine and offshore engineering service sectors. A recent example of these opportunities is the award to Global Maritime for Marine Warranty Surveying (MWS) for Northern Lights CCUS project. GM are using the skills and experience they have attained in the Oil and Gas (O&G) industry and transferring them to an alternative type of subsea infrastructure.

gas, the weight of the ship will increase. This will impact the design and operation of the vessels. This creates additional opportunities for GM building on our expertise in marine services and vessel inspection activities.

Floating Hydrogen Production – Hydepoint Demand for renewably produced hydrogen is rapidly increasing alongside utilisation of offshore wind resources. Further strengthening of the power grid, however, a partial or full conversion of energy to hydrogen will reduce the need for grid investments and increase production of hydrogen.

Demand for renewably produced hydrogen is rapidly increasing

Once commissioned, Northern Lights will be a CO2 transportation and storage infrastructure facility, delivered via an Equinor, Shell and Total Energies Joint Venture, (JV). This project will use an innovative ship design for transporting CO2. As liquid CO2 has a

As part of the Moreld Group and in partnership with Arendals Fossekompani and Kongsberg, we are developing the “Hydepoint” concept; a complete solution for receiving, converting, and transmitting energy from offshore wind farms, with reduced dependence on the onshore power grid. The

near offshore wind farms, converting all or part of the produced renewable energy into hydrogen, reducing the need for upscaling the power grid. Global Maritime will provide expertise in vessel hydrodynamic design and engineering, mooring analysis through our proprietary software, ‘GMoor’ and constructability review through our marine operations capability in Transport and Installation (T&I).

The offshore industry is no longer the sole playground for O&G. It is now shared with new energy companies, developing innovative solutions to drive energy transformation. There is an increase in the number of projects being commissioned and delivered. This will have a continued impact on meeting both Net Zero goals and climate change ambitions. Global Maritime are at the forefront of this, using our expertise and competency in marine consultancy to support new and existing customers. It is with this mindset that we are working with our customers to reimagine a low carbon offshore industry that progresses energy transformation.

www.ogv.energy www.ogv.energy II August June 2022 2022

Global Maritime is a marine, offshore and engineering consultancy that specialises in marine warranty, dynamic positioning and engineering services For more information visit www.globalmaritime.com

HYDROGEN & CCS

Being real about industrial decarbonisation and what does Snow White have to do with it anyway?

In the middle of this record-breaking summer, it’s easy to forget the winter just gone. And while it wasn’t especially cold – we had the Warmest New Year’s Day on record – we did see some extraordinarily powerful winds. Storm Arwen bought havoc to the UK’s infrastructure in November with Storms Dudley and Eunice doing more damage in February. By any measure this weather is weird and getting weirder, so much so that we’d have to go a very long way to find a scientist to disagree with the notion that we are responsible for these shifts in climate patterns through our emissions of greenhouse gases. And with every passing of another weather event, be it hottest, coldest, strongest or wettest there is no time for dopey false equivalence here. The scientific community and governments concur that we as a species need to reduce our emissions before the damage we are self-evidently doing to the planet becomes irreparable. In May 2022 the US National Oceanic & Atmospheric Administration documented that its monitoring station in Hawaii averaged 421 parts per million of CO2 for the month. This is about the same level as earth experienced 4.1 to 4.5 million years ago. This is not about saving the planet – earth will endure, changed, perhaps sleepy but continuing. It will be our civilisation that will reap what has been sown over modern times. NECCUS was formed late in 2019, just in time to witness one of the other great cataclysms of our time (Covid-19), as a membership organisation, a platform, and a network by which information can be shared and transferred between all those interested in developing a low carbon industrial future for Scotland, whether they be industrial emitters, academics, professional services firms, or supply chain companies. NECCUS is the central convening body that delivers that convergence. And while decarbonising Scottish industry might sound like a simple objective it is, of course, fiendishly complex. NECCUS, with the support of its members manages projects that

Ronnie Quinn CEO NECCUS

will allow both a greater understanding of what is required, but also sets out what needs to be done to achieve that. We manage Scotland’s Net-Zero Roadmap (SNZR) project with funding from Innovate UK and major industrial partners to identify pathways to decarbonisation for 28 of the top 30 emitters of CO2 in Scotland. The SNZR project will report later this year. We are also closely involved with Scotland’s NET-Zero Infrastructure (SNZI) project. Our members benefit from monthly newsletters setting out policy updates, funding opportunities, and funding calls, project updates in Scotland, updates about other UK and international projects and a list of major forthcoming events. Members also get access to policy makers at government and decision-making level as well as plenty of opportunities to meet like-minded organisations to understand each other’s interest in or progress towards decarbonisation. A series of webinars brings up to date information and allows for members to explain their role and capabilities. Our first major in-person event is being planned for early 2023 where we intend to showcase Scotland’s achievements but also the challenges.

decarbonise sectors of industry to play their part. Scottish Ministers support NECCUS and the Scottish Cluster in promoting Carbon Capture and Storage. This is seen as mission critical for meeting the targets (the UK Target is Net-Zero by 2050), but also as the primary means to maintaining our industrial base, allowing industry to continue, and importantly maintaining jobs. This will be key to achieving not just Net-Zero but also the Scottish Government’s ambition of achieving a Just Transition too. Scotland has a world class resource offshore for the safe storage of millions of tons of CO2. Phase 1 alone is planned to store about 150 Mt. This facility will allow not just CO2 from Scotland to be safely stored but also provides the opportunity to reduce costs by shipping CO2 from the rest of the UK and indeed further afield.

Scotland has a world class resource offshore for the safe storage of millions of tons of CO 2

The latest published figures for 2020 show that CO2 from regulated industries in Scotland are running about 10.6 million tons per annum (Mt pa). The happy news is that this is down from 26.5 Mt in 2007. For those of a grumpy disposition who say that 2020 was an exceptional year for emissions due to Covid, the data suggests that this is part of a more prominent downward trend. However, more needs to be done for Scotland to meet its world leading target of Net-Zero by 2045. The industrial energy sector has largely decarbonised, and it is now down to the hard to

The UK Government has estimated that at least £15bn will be spent by 2030 by four industrial clusters in implementing CO2 storage solutions. This investment will be supported by up to £1bn of Government funding, which will include commercial business models. We should not be bashful about saying that Carbon Capture and Storage can be operational in Scotland by 2029 with 6 Mt pa being stored rising to 20 Mt pa by 2035. This is an industry and a sector on the cusp of delivery. You may now rightly ask what has Snow White got to do with it? Very little, except that I’ve mentioned all her dwarves except one, if you want to find out more about that one, or indeed have ambitions to decarbonise then please contact NECCUS through our website.

NECCUS is an alliance of industry, government and experts, united by their determination to drive the changes and programmes needed to reduce carbon emissions from industrial sources in Scotland and beyond. For more information visit www.neccus.co.uk

HYDROGEN & CCS to the infrastructure through an open access concept. This pre-investment in the infrastructure can provide the backbone to support wider build out of CCS projects in Europe and deliver on the decarbonisation objectives set out by the Netherlands and in the EU.”

XODUS ADVISES DUTCH GOVERNMENT ON SECOND CCS PROJECT Global energy consultancy Xodus has delivered a review of the project concept, cost estimates and the economic models to enable large-scale CO2-reduction for industrial clusters in the Netherlands. The work for the Dutch Ministry of Economic Affairs and Climate Policy focused on the Aramis Carbon Capture and Storage (CCS) project which will capture, transport and store CO2 from both gaseous and shipped emitters through an open access transport system. This is the second landmark CCS tariff review that Xodus has delivered, following a review into tariffs for the Porthos project in 2020. Xodus’ report on Aramis will provide guidance to the Dutch Ministry on the project’s requested subsidy for funding through the government’s latest SDE++ round. The Netherlands has climate objectives to reduce greenhouse gases by 49% in 2030 and 95% in 2050 compared with 1990 levels.

Counties across Europe are taking differing approaches to encourage early-stage CCS investment. Mr Fuller added: “If we look at the different approaches taken by different European countries, we do see subtly different tactics to encourage investment in these first of its kind CCS projects. Norway and The Netherlands have provided certainty to emitters and transport and storage companies through proposing minimum CO2 prices in 2030 of 200 Euro/tonne (Norway) and 125 euro/tonne (Netherlands), thereby creating a carbon price floor that can support CCS investments.

Jonathan Fuller

“The UK considers only Emissions Trading Jonathan Fuller, Global Head of Advisory Scheme (ETS) prices, which has been relatively and Energy Transition at Xodus volatile. This gives less certainty to said: “Aramis has the potential to investors; however, it lowers the risk make a significant contribution that a government is accused in helping the Netherlands of allowing early investors to The Aramis reach its carbon reduction make excess profits. The UK CCS project is a targets. This review builds mechanisms to support CCS on the work we completed are similar in mechanics to partnership between for the Porthos project two offshore wind whereby a years ago when our input contract for difference CO2 TotalEnergies, Shell, was integral in ensuring price will underpin the emitter EBN and Gasunie the development was costs and a regulated asset successful in qualifying for base (RAB) business model for €2.1 billion of SDE++ support. transport and storage. “The Aramis project is unique in combining multiple sources of emissions from gaseous and shipped emitters, whilst pre-investing in the transport system to enable future emitters and storage sites to connect

“Only time will tell which approaches have provided the best balance in terms of encouraging a new CCS value chain, at a sensible level of government and ultimately tax-payer support.”

The Aramis CCS project is a partnership between TotalEnergies, Shell, EBN and Gasunie to develop a backbone transport and storage system to bring captured CO2 from emission sources to offshore storage sites. The project differs from the Porthos project, which is led by privately owned companies in TotalEnergies and Shell. The Aramis project aims to contribute to the reduction of emissions by providing CO2 transport to unlock storage capacity for industries such as the steel, chemicals, cement, refineries, and waste incinerators. It will offer a decarbonisation solution for the industrial sectors by transporting CO2 to depleted offshore gas fields under the Dutch North Sea. This will be based on an ‘open access’ philosophy to give industrial customers and offshore storage providers the possibility to connect to the infrastructure at a later stage. Aramis is currently in concept select phase with this due to be completed this summer with a final investment decision by 2025 and an operational start-up in 2027. The project aims to make an important contribution to the CO2 reduction targets for 2030, as laid down in the Dutch National Climate Agreement and the European Union’s Green Deal.

www.ogv.energy I August 2022

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Port of Rotterdam

Xodus are a global energy consultancy powered by the expertise and experience of our unique and diverse people. For more information visit www.xodusgroup.com

HYDROGEN & CCS

DIRECT AIR CAPTURE A decarbonisation toolkit essential

the air in a simple, scalable solution. The SMARTDAC technology is designed around the concept of a standardised module which can be arranged in several configurations to fit the available space or required capacity for CO2 removal. This flexibility makes SMART-DAC an ideal solution for small, medium or large industrial sites looking to reduce their carbon emissions or for industries looking to utilise the captured CO2.

The drive to net-zero is well underway; however, it will be impossible to cease using fossil fuels completely in the short term. We are in a transition, and the advice from the Climate Change Committee is that the transition from heavy reliance on hydrocarbons to clean, renewable energy must be bold and technology-led to deliver our climate goals, whilst creating jobs and economic opportunities.

In June 2020, the Prime Minister announced up to £100 million of new research and development funding to help develop direct air capture (DAC) technologies in the UK. As part of this, the Department for Business, Energy & Industrial Strategy (BEIS) launched the Greenhouse Gas Removals (GGR)Innovation Competition which seeks to support the development of GGR technologies to reach commercialisation.

"We can't suddenly cut all our emissions from fossil fuels. It must be a transition. Combining a mix of clean energy sources and carbon reduction and capture methods will accelerate our journey to net-zero", says Iain Martin, Project Manager at the Net Zero Technology Centre.

A capture solution smarter than the rest The Net Zero Technology Centre, along with consortium partners, worked with DAC technology developer CO2CirculAir to secure BEIS funding for it’s SMART-DAC technology. The novel solution captures CO2 directly from air by utilising natural airflow, avoiding using energyintensive air blowers, while harnessing renewable energy to power the absorbent regeneration process —making it a zero Iain Martin emissions solution for CO2 capture.

The Net Zero Technology Centre was established in 2017 as part of the Aberdeen City Region Deal, with £180 million of UK and Scottish government funding, it focuses on accelerating the transition to a long-term sustainable energy system Ronnie Quinn through innovation and CEO NECCUS technology development and The SMART-DAC technology deployment. It brings together uses a two-step process to technology developers, industry capture and separate CO2 from partners and academia to identify and the air. The first step in the process is drive the creative solutions needed. membrane gas absorption, which uses an alkaline solution to absorb the CO2 from the air Removing carbon from the atmosphere, as it passes through the membrane. converting, and utilising it will lead to carbon neutrality. The centre sees developing The second step is the regeneration of the practical carbon capture solutions as an absorbent by membrane electrolysis where integral part of its work. the CO2 saturated alkaline solution is recycled back into absorbent liquid while the CO2 "All pathways to net-zero propose the use of is concentrated and separated, creating a carbon capture. Thirty-one per cent of global continuous absorption cycle. emissions come from manufacturing, much of which is particularly hard to abate, either The captured CO2 can be used as a carbon because the processes are challenging to source for sustainable chemicals, materials or electrify or switch to hydrogen, or because synthetic fuels or stored to remove CO2 from the of negative effects on product quality. This atmosphere permanently. makes direct air capture and other greenhouse gas removal technologies essential in the Membrane gas absorption offers significant cost decarbonisation toolkit," says Iain Martin. efficiencies and the capacity to remove CO2 from

The technology requires a significantly smaller footprint than enhanced weathering, Bioenergy with Carbon Capture and Storage (BEECS) and afforestation to remove the same quantity of CO2. As the world moves away from fossil fuels, DAC will be the primary short CO2 cycle solution to produce and use synthetic fuels for transport, shipping and aviation. "Extracting CO2 from the air and using it as a future carbon source, replacing the use of fossil fuels, creates a short energy cycle essential to achieving net-zero," says Jeffrey Felix, CEO at CO2CirculAir. The SMART-DAC technology recently secured additional BEIS funding to support the construction of a pilot plant that will begin testing in spring 2023, capturing a minimum of 100 tonnes of CO2 per annum. Iain Martin continues; "The SMART-DAC technology is a significant opportunity for the UK to capitalise on the engineering strengths and capabilities of the existing energy sector. Successful demonstration, with industry support, of this technology at the pilot scale is an essential first step on the road to scaling up and commercialisation. We need to drive this type of technology down the cost reduction curve and improve reliability." He concludes, “Achieving net-zero requires government initiatives like the BEIS GGR Innovation Competition, which provide essential financial support for new carbon capture projects, bringing the world closer to decarbonising and quickly."

For more information visit www.netzerotc.com

HYDROGEN & CCS

FIRST MAJOR CARBON CAPTURE PROJECT IN THE NETHERLANDS Supported by HydraWell’s innovative technology Norway-based well integrity specialist company HydraWell has applied its cutting-edge technology in the first commercial Carbon Capture and Storage (CCS) campaign on the Dutch continental shelf. HydraWell’s pioneering PWC® system, designed for specialist wellbore applications, provided a ground-breaking solution to complete a significant part of the key environmental undertaking - marking an important milestone for the future of CO2 storage in the Netherlands. The revolutionary campaign saw HydraWell’s ingenious HydraHemera™ patented Perf, Wash & Cement (PWC®), originally developed to replace traditional Plug & Abandonment (P&A) and downhole tooling techniques, enter new territory thanks to the successful completion of the project in June 2022. The £450m Porthos (Port of Rotterdam, CO2 Transport Hub and Offshore Storage), CCS Project, is a joint venture between the Port of Rotterdam Authority, Gasunie, and Energie Beheer Nederland (EBN). The project forms part of the Netherland’s fundamental goal to reduce emissions. The Netherlands has clear climate objectives: the emission of greenhouse gases must be reduced by at least 55% in 2030 compared with 1990. By 2050, the Netherlands must be climate neutral. The Dutch Climate Agreement underlines the importance of CCS for the energy transition. Around 14% of CO2 emissions in the Netherlands takes place in the Rotterdam port area, making the region’s contribution to the national climate objectives extremely important.

Carbon Capture and Storage is currently the fastest way to substantially reduce CO2 emissions into the atmosphere for relatively low costs. With the support of various cross-sector organisations, the Porthos plan involves the transportation and storage of CO2 from industry in the Port of Rotterdam. The CO2 will be transported through an offshore pipeline to a platform in the North Sea, approximately 20 km off the coast. From this platform, the CO2 will be pumped in an empty gas field. The empty gas fields are situated in a sealed reservoir of porous sandstone, more than 3 km beneath the North Sea. Porthos will store around 37 metric tonnes CO2, approximately 2.5 Mton CO2 per year for 15 years.

HydraWell Office

The latest application in the Netherlands is a further clear indication of its adaptability in rising to new challenges.

HydraWell’s scope of work involved harnessing its PWC® technology to place a rock-to-rock barrier above the reservoir to prevent Hydrocarbon migration into the sea. The innovative solution was deployed with flawless execution and in a single run.

“We have discussed carbon capture with only a small handful of clients in the last couple of years so to have supported the Netherland’s first commercial CCS project is a significant milestone for HydraWell,” adds Erlend.

“The campaign was delivered in less than 36 hours, which compared to conventional methods, would have taken up to 7 or 8 days.

“The successful completion of our latest scope of work in the Netherlands is an important acknowledgement not only of the trust placed in us by clients in the developing carbon capture sector, but also in our team’s ability to step up and seize the opportunity to diversify into fresh and exciting contemporary marketplaces.

Combined with a sustainable and cost-effective Erlend Engelsgjerd, Sales Manager, approach, HydraHemera™ was an ideal fit HydraWell, says, “This was the for the Netherlands project. first time we had deployed our PWC® technology to Mark Sørheim, HydraWell Chief CCS is currently complete a CSS project and Executive Officer, comments: we are delighted to have “As pioneers and problem the fastest way to been able to showcase solvers, we are proactively substantially reduce the flexibility of our participating in delivering operations. advanced solutions for future CO2 emissions for energy needs. relatively low “By deploying our proprietary PWC® “Our experienced team is costs technology, we delivered committed to developing less operational risk, increased technologies to transform energy efficiency with optimum results. industry operations around the world.

“This project has demonstrated that our technology can be implemented across a range of cross-sector industries and represents an important advancement in our diversification plans." HydraWell’s popular HydraHemera™ portfolio for wellbore specialist applications has played a pivotal role in realising the company’s ongoing drive to re-think existing well integrity operations. This nimble and flexible method is much in demand across a range of applications from permanent P&A and slot recovery to restoring annulus integrity and casing shoe repair.

“As a company, we remain fully committed to ESG best practices and look forward to continuing to leverage our technology to reach our goal of netzero emissions. “Our experience in Norway, along with our strong track record in P&A operations underpinned by a well sustainability strategy and a deeper sense of responsibility, will ensure we continue to offer smart, superior and sustainable options which exceed expectations.”

Port of Rotterdam

www.ogv.energy I August 2022

HydraWell is a rapidly growing well integrity specialist providing a range of step-changing proprietary tools and associated services to oilfield operators and services integrators. For more information visit www.hydrawell.no

HYDROGEN & CCS

ISO MANAGEMENT STANDARDS

WANT TO BE CARBON NEUTRAL?

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They can assist with developing and implementing an ISO 14001 Environmental Management System, which helps organisations improve their environmental performance through more efficient use of resources and a reduction in waste.

For over 7 years QHSE ABERDEEN have been helping organisations, taking away the burden of starting from scratch, complying with regulations and standards and ensuring that products and services are welcomed by customers and accepted by regulators. In today’s markets it is essential that you outrun your competition by delivering superior value to your customers and others impacted by your business and continually improve your organisational capabilities. Some of the most commonly used generic standards are...

For businesses wishing to achieve carbon neutrality of their Organisation, events, building or products there is verification to PAS 2060 the only internationally recognised specification for achieving carbon neutrality. We all need to take action now, and we’re here to help. QHSE ABERDEEN have signed up to SME Climate Hub and we commit to joining The Climate Pledge, the cross-sector community committed to reaching net-zero-carbon emissions by 2040. We can measure and analyse your carbon footprint, environmental impact and resource efficiency to help you become a more sustainable business. Our team of Environmental experts will help you identify a range of energy efficiency and cost cutting opportunities that will save your organisation money, we can measure and analyse all aspects of your company’s carbon and environmental impact, including your product.

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Have your organisation or product verified to PAS 2060, the international standard for carbon neutrality.

'Carbon Neutral' label In order to achieve verification, a company must:

• Define the carbon boundary • Determine the reporting period • Identify the reporting methodology • Develop a qualifying explanatory statement (QES) • Produce a carbon management plan with targets for GHG reductions • Plan and implement ongoing emission reductions • Identify Offset strategy • Purchase carbon credits from approved projects to compensate for remaining emissions • Carbon neutrality is an ongoing process and must be verified each year to keep the carbon neutrality status of the business

ISO 45001 – Occupational health and safety Make workplaces safer and healthier for all ISO 14001 – Environment Both the impact of the environment on your business and the impact of your business on the environment ISO 27001 - Information Security Manage the security of assets such as financial information, intellectual property, employee details or information entrusted by third parties.

QHSE Aberdeen provide a Consultancy and Advisory service to organisations of all sizes and sectors that require assistance in the development & implementation of robust Management Systems. For more information visit www.qhseaberdeen.com

We deliver on our promises and drive the change the change

HYDROGEN & CCS We deliver on our promises and drive

Hydro-C Ltd is a British company Hydro-Cwith Ltd its is amain British Headquarters in the heart of company with its main Scotland. Headquarters in the heart of Scotland. Established in 2013, it supports international Established in 2013, itOil andsupports Gas operators overseas. international Oil Ourand company has followed Gas operators overseas. company haswhich followed theOur model of Shell, the model of Shell, which started as a trading company started as afirst trading company in 1833. Shell focused 1833. Shell first focused on in import-export operations onbecome import-export operations then the company then become the company as we know it today. Our main as we know it today. customers are BP, Shell,Our main customersAnton are BP,Oil, Shell, ExxonMobil, BGC, ExxonMobil, Oil, BGC, DNO, refineries Anton and EPCs. DNO, refineries and EPCs. In 2018 the business In 2018 the business expanded rapidly. 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WeWe want to to add Our goal we don’t have. want add Our goalis istotocreate createa a The business strongly believes that those who share our interests those who share our interests contact today at us today at future next to the success thethe energy "Our aim is to help achieve energy security introduction of of innovative renewable sustainable The goalfor is create a sustainable future for sustainable future forto next to the success of energy and concentrate andthe concentrate onlowering lowering (0)141 582 1213 1213 by investing in+44 the UK's major commodities, solutions is the only way forward theAssist next generation by assisting energy on the sector rather than diminish it. it. for thegenerations. generations. Assist theenergy energy sector rather than diminish carbon emissions carbon emissionsand and including wind,or go and to hydrogen. 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WE DELIVER ON OUR PROMISES AND DRIVE THE CHANGE

Creating positive legacy Creating a lasting positive Creatingaalasting lasting positive legacylegacy

Shapingaasustainable sustainable energy future Shaping

www.ogv.energy I August 2022

For more information contact Hydro-C at +44(0) 141 582 1213

Exceeding Limits, Pushing Horizons

UK OFFICE:

info@hydro-c.co.uk

126 Stanley Street, Glasgow, G41 1JH Scotland

hydro-c.co.uk

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BIG DATA ANALYTICS Intertek is an industry leader with more than 46,000 employees in 1,000 locations. We deliver Total Quality Assurance expertise 24 hours a day, 7 days a week with our industry-winning processes and customer-centric culture. Interpret is part of Intertek’s portfolio of technology innovations, which allows Intertek to work with clients to extract the value from their data and deliver solutions.

Company Details Website: www.intertek.com/ep Email: production.support@intertek.com Tel: +44 (0) 1224 708 500 Address: Exploration Drive, Aberdeen Science & Energy Park, Bridge of Don, Aberdeen, AB23 8HZ, Scotland, UK

Technology Development stage: Commercial Launch date: 2018

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Although big data analytics is a hot topic in many sectors, companies from banking to pharmaceuticals have only recently started to realise the value locked in their data. The Oil and Gas industry is not exempt from this, and it’s safe to say that it is no stranger to large amounts of process data. For many years data historians have worked away collecting measurements from instrumentation around oil and gas processes globally. The data is large and complex with many interactions and correlations between variables which are not easily interpreted.

What is Big Data? Put simply big data is a collection of information gathered through various means which is so large and complex that significant benefits can only be extracted through the application of computational algorithms. Indeed the exponential development of computational processing power and storage is the key driving force behind the wider application of big data analytics.

Upstream production involves many complex processes and numerous properties are constantly monitored including temperature, pressure, flow rates, GOR. As there are numerous processes occurring simultaneously, it can sometimes be difficult to pinpoint exactly where an error is originating from and this is where data analytics can step in. To give an example, a client approached Intertek as they were having intermittent problems with their upstream process. The issue was resulting in damage to certain seals, and was often a cause for shutdown. To identify where the problem was occurring, Intertek received data from around the installation. The data contained information from periods of normal operation as well as during process disruptions. Intertek undertook data analysis with two primary objectives:

Identify root cause for process disruption

2. Establish a method for more efficient process monitoring

To promote efficiency, it was necessary to automate the process to monitor the performance of every process unit through the combinatorial analysis of all key instrumentation measurements. In this example the dataset contained measurements from over 150 process sensors. Taking the data every 2 minutes over 2 months gives The Status Quo 43,000 time periods and therefore 6.5 million data points! The need to reduce the It is a fact that contained within large complexity of the dataset into historical datasets is valuable easy to visualise trends and information and knowledge that, correlations which focus on the when coupled with domain Intertek uses key parameters and add value expertise, can be used to to the process will now be achieve a variety of benefits proprietary software demonstrated for including: more efficient (Interpret) in order to this example. maintenance, scheduling, improved performance, undertake big data Data Purification reduced downtime and analytics activities maximised margins. To maximise value from data it is key to understand outliers and However, this valuable ‘clean’ the data set before moving information is hidden in the forward to any additional analysis such quantity of data and further as process modelling, optimisation etc. Data compounded by dataset issues such as purification can be a lengthy process and, it is the noise from unrepresentative operation i.e. our experience that, a large portion of all big process upsets, malfunctioning instrumentation data analytics activities is around screening etc. Hence, to simplify analytics, operators and pre-processing the data to ensure usually focus on time series trending and first conclusions are valid. order effects.

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Intertek uses proprietary software (Interpret) in order to undertake big data analytics activities. interpret allows the user to look at the data and visualise features such as: missing data, constant values, faulty sensors, questionable values etc. Interpret plots can be used to identify process outliers by looking at combinations of process variables and latent variables. Any questionable data is highlighted and assessed against underlying trends and effects.

Correlating regions A key piece of information for any process plant is to have an in depth understanding of those properties that correlate. There will be some properties within the data where you would expect correlation, however there will be other regions where correlation was not anticipated and those are the regions that require further exploration. To continue with our previous example, where our client was looking to understand the root cause for failure; the below heat map shows the correlation of every variable with every other variable within that dataset. The extent of correlation is indicated by a colour scale, where red indicates a strong positive correlation and blue a strong negative correlation.

For the upstream study we have been discussing, what emerged on interrogating the data with PCA was that a certain pump was the root cause of failure. The pump in question was designed to be a multiphase pump and processed both gas and liquids at the same time. The pump had a certain operational region, but it was found that it was sometimes operating outside of that region which caused increased vibration within the unit. This increased vibration had a knock on effect and damaged the seals within, this repetitive damage eventually resulted in seal failure which would trigger a plant shut down. PCA enables this information to be expressed visually, as shown in the figure below. As can be seen from the figure, Interpret identified distinct regions where the pump was operating. These processing regions were identified on data interrogation, which allowed for the identification of root causes of failure. These regions could also be harnessed to monitor the performance of the system going forward and prevent future shutdowns.

Identified operating regions for pump: What was visible from the heatmap, was that there were a number of regions showing strong correlation. Some of those correlations could be easily explained as they came from the same unit, for example heat sensors around one lubricating unit. But there were other strong correlations that required further examination and principle component analysis was undertaken on those regions.

Principle Component Analysis Principle component analysis (PCA) is a very powerful multi variate statistical procedure, that is used to reduce data down to its principle components. A principle component defines the variance between the data, with the first principle component defining the maximum amount of variance within the data set, the second principle component defines the second most amount of variance and so on.

Green – Good, Pump operating within boundaries Grey – Warning, pump moving outside of boundary seal damage may ensue Red – Stop, pump operating outside of boundary, seal failure may be imminent

Benefits of Data Analytics Using advanced data analytics to expose the underlying structure of complex datasets enables very large and complicated datasets to be broken down and the valuable information held within extracted. By uncovering underlying trends and correlations the operator can extract maximum value from a dataset. It is also critical to analyse the dataset as a whole, and not just to focus on the simple first order relationships, but to examine the more detailed effects, such as those caused by combinations of many different variables. Interpret uses advanced mathematical and statistical algorithms to analyse the effect of other variables that do not have obvious or intuitive first order effects on the process. Ultimately this gives the operator a much greater understanding of the process and how to maximise performance. Effective use of this data analysis tool can help mitigate/minimise potential future problems that impact on margins such as shutdowns and deferrals.

Using PCA, Interpret is able to break down and understand the underlying trends in the data which cause features such as operating regions and determine the key instruments which have the largest impact. We do this by analysing not just the most obvious (first order) relationships but also other relationships caused by combinations of variables.

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Who is Sword? Andy Pearson leads Sword’s Digital Engineering Practice, where he works closely with operational and technology leaders in our Energy industry customers to enable business optimisation and digital transformation.

www.sword-group.com

As the North Sea’s largest provider of data and digital services, Sword focuses on solving the industry’s most critical business technology challenges by enabling our clients to capture, manage, and utilise data to make informed decisions. This is supported by technology adoption and people engagement, together with modern ways of working to give confidence that the right decision is made every time.

DIGITAL ENGINEERING: 'Enabling Operational Efficiencies'

Across the Energy industry, organisations are striving to go ‘digital’. Harnessing digital technologies can drive better decision-making, especially when underpinned by reliable data, to achieve operational efficiencies in every business area from finance through to production. IT departments are often tasked with introducing digital capabilities that unlock the power of data throughout their business, with a growing focus on ‘digital engineering’.

What is Digital Engineering? At Sword, we define digital engineering as ‘the ability to create, capture and use data to make engineering decisions using a digital skillset’. Starting from drawings through to 3D models, engineers use increasingly advanced technologies to capture data and design solutions in a digitised environment. To keep it simple, the use of any kind of technology by an engineer (who would traditionally use paper-based drawings to make decisions) can be classed as digital engineering. 3D models are considered as the most comprehensive form of digital engineering, however there are many other variations.

Digital Engineering in the real world There has never been so much pressure to achieve more with less. Years of cost and production pressure, manpower reductions and increasingly ageing assets mean that operators must embrace innovation to move forwards. Some think that digital transformation is all lofty ambition and piein-the-sky, but our digital engineering practice is geared around practical, quick-to-deploy solutions that solve the challenges besetting operators right now, such as: • Turnaround planning and execution • Weeps and seeps • Mobile technology for operator routes, process isolations, inspections etc. • Management of change including new tag numbers, document numbers etc. • Stock optimisations and BOM creation to support work planning • Increasing onshore support capability • Systems integration and rationalisation.

www.ogv.energy I August 2022

Designing Digital Engineering Solutions 1. Data foundations are key: The ability to surface and interrogate data is increasing, alongside access to user-friendly tools in onshore and offshore environments. This makes it easier for anyone to create reports that appear useful. However, to ensure any increase in the pace of data-driven decision-making is robust, first trust must be built in data sources. We ensure our solutions deliver high data quality, from newly-developed data models to scanning and checking solutions, allowing engineers to make business-critical decisions quickly in operational environments. 2. Engineers remain engineers: Going digital doesn’t mean that engineering principles change. Technology should enhance the ability of an engineer to make decisions based around classic engineering principles, augmented with digital tools to streamline their tasks. 3. Offshore-friendly technology solutions: We often build solutions that are fit-for-purpose in an onshore office environment, but the real goal is often to enable decision-making in challenging offshore environments where safety and efficiency are key.

Breadth of Digital Engineering Solutions The ability to visualise and analyse data-driven content is increasing as well as the environment around us becoming ‘smart’, e.g., through connecting and tagging equipment. This brings near limitless options when it comes to deciding how best to apply digital engineering to improve processes. Sword have delivered wide-ranging solutions, from the use of tablets offshore to create master data models of engineering tags and class libraries, to making drawings come to life through 3D modelling. Choosing the best digital solution is often influenced by whether the project is greenfield or brownfield in nature, as both bring different data collection challenges.

Greenfield Projects In terms of engineering information handover, most Owner/Operators have experienced the

Andy Pearson

same inadequate results on major capital projects over the last 40 years. In fact, it is normal to spend between £4-10 million on data handover for each project, with no guarantee that the information is complete, correct, consistent or connected. In many cases, extensive post-handover remediation takes place within the operational expenditure phase of a project, incurring unpredicted costs. This is why some of the world’s largest projects have adopted, and now embrace, our proven best practice techniques in content and information management. We ensure engineering information is focused on justified requirements, which helps mitigate project risks. It also creates many benefits and cost efficiencies that pay for the investment many times over.

Brownfield Projects The prospect of undertaking a digital transformation project on a legacy asset in operation can seem daunting, but it’s often essential for safe and efficient operations. Taking advantage of shutdown and turnaround periods provides opportunities to take inefficient and often sporadic content, and integrate it into newly gathered data for optimum results. Brownfield projects have commonly been subject to traditional, one-dimensional, disparate data collection and access processes, which is time consuming, generates risks and is error prone. Collating, creating, and updating data correctly overcomes the issue of rework, however it‘s often undertaken by engineers, which causes delays to their primary objectives. Having comprehensive electronic data ensures that the right decisions can be made at the right time, and removes inefficiencies in the handover process between Owner/Operators and EPCs. It is important to start at the level to which everyone can relate. Whether that is converting a procedure to be electronic with checklists and sign off, or laser scanning an asset, the engineering and IT functions need be aligned in deciding priorities. We have a long history of working directly with production functions, facilitating business challenges workshops. These are successful in focussing efforts on areas for improvement and supporting the IT function in providing iterative solutions. Understanding the people, processes, and tools available is at the core of successful digital engineering solutions. Our capability in this area has never been stronger, with the recent acquisition of Phusion IM, who have over 30 years experience delivering intelligent solutions that turn complex engineering information into trusted assets. Together we work with various operators and EPC’s across oil and gas and renewables to enhance their digital capabilities.

For more information, visit www.sword-group.com

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A TRULY UNIQUE PROJECT PUSHING THE BOUNDARIES OF WHAT IS POSSIBLE IN OFFSHORE WIND RenewableUK speaker to the team managing operations for Dogger Bank Wind Farm for the latest insights into this ground-breaking project. Dogger Bank Wind Farm is unique in many ways. The size is as yet unrivalled around the globe at 3.6 GW – it will provide enough electricity to power 6 million homes. The project covers an area in the North Sea equal to that of Greater London at 1,674 km2. To reach the corner of Dogger Bank A from the North East coast is almost 130km – which is a logistical challenge in itself, especially given the harsh and unpredictable weather conditions. Dogger Bank is also the first UK offshore wind farm to use HVDC technology, and at 1.2 GW per project phase, it is the largest HVDC link ever used as well. Another worldwide first, the project will also be utilising GE’s Haliade-X turbines.

Mark Halliday, Operations Director for Dogger Bank, offers an update of how preparations for the project are coming along: “From an operations perspective, we are focusing on our readiness to receive Dogger Bank phase A – early 2024 isn’t far off now. We’re looking at everything from infrastructure to the O&M base, our control room, logistics, service operation vessels (SOVs), warehouse, hardware/software and management systems for safe day-to-day operations. It’s also critical that we have the personnel and relevant contractors in place to deliver from day one. Other considerations during the preparation stages include commercial operations such as compliance with licence requirements, aligning with key stakeholders, liaising with National Grid– the list goes on.

Mark Halliday

“Our O&M base is key for us right now. To service our offshore wind farm, we need a base for our SOVs to birth and to change personnel, consumables, tools and equipment. We chose the Port of Tyne for the location of our new O&M base due to their strategic foresight and net-zero ambitions – they have invested in a clean energy park and upgraded the quayside to provide land with direct access to deep waters capable of efficiently birthing our vessels. “The base is currently under construction and due for completion at the end of this year. This will give us at least 6 months to get settled before the first wind turbine becomes operational mid next year. It is purposebuilt and being constructed with a net-zero carbon framework in line with the UK Green Buildings Council. As such it utilises low carbon and recycled materials, PV panels for on-site energy generation, EV charging points to support future electric car use, and other sustainable features. We have also incorporated a welfare recreation space in the office to provide a great place to work for our staff at Dogger Bank.

www.ogv.energy I August 2022

RENEWABLES

“Finally, we have concentrated on local suppliers and support for the project, including North East architects and construction companies who, in turn, source materials from local organisations for significant reinvestment into the local economy. In addition, we’re collaborating with nearby recruitment agencies to bring in local talent.” In pioneering a lot of cutting-edge technology, the construction and operation of Dogger Bank presents several challenges – there is little existing expertise and experience to utilise in ensuring this equipment operates effectively, so the learning curve will be unavoidable. That means the planning stage of the project is critically important.

was to design some innovative ways to reduce manual handling requirements, and increase accessibility points around foundations for SOV stability and minimal drift. We also removed a lot of manual lifts from the SOV to the turbines and we have a walk to work system that enables transfer of powered tools directly from the SOV warehouse area to the turbine without any lifting operations.” As data is used to guide health and safety aspects, it is integral to the daily operation and development of a wind farm too. The key is not only to collect relevant data but to also use this to intelligently guide project design, operation and maintenance. Mark considers how the project is incorporating data during the planning stage and how it will influence the wind farm in the coming years:

“Good planning is crucial for Dogger Bank,” Mark continues. “There is a lot of learning from a threeThe UK has a large phase project like this, such “There are many systems capacity for offshore as getting all the supply feeding data into the Dogger chain contracts organised in Bank control room, so it’s CO2 storage, along with the right order considering been challenging to design potential external factors. an interface that operators the skills and experience Fuelling for the vessels can use efficiently. We to be able to develop it has been a challenge, are creating an overlaid, because we have had to integrated SCADA system quickly in the consider what’s available now that allows operators to North Sea and what might be the gold use all the different systems standard in the future if fuelling intuitively and instinctively. systems change. Our vessels have been future-proofed so that a hydrogen “We are also developing a decisionsystem or batteries could be installed.” support system that analyses the data we collect to guide our decisions in the design of In addition to creating a wind farm that can the wind farm. We will use a similar approach evolve with the times, Dogger Bank is also to direct O&M decisions once Dogger Bank is an opportunity to optimise health and safety operational, as this will be key in prolonging the protocols for the workforce. Mark continues: useful lifetime of the assets. In particular, this will be helpful as we move towards condition“Another challenge for us has been in ensuring based and predictive-based maintenance to safety by design and using any existing intervene in the right places before technical knowledge to minimise risks around Dogger failures occur.” Bank. We looked at data available from G+ to focus on the top safety issues and address All of this will only be achievable with the right these. team on board. Finding the right talents and competencies has become essential for the “Firstly, it’s important that we can get people realisation of Dogger Bank. Mark says: to the turbines and back safely, even in difficult weather conditions. That’s why we’ve partnered “To build our team for Dogger Bank operations, with North Star Renewables for our SOVs, we’ve focused on local talent, diversity of which are leading-edge vessels designed to the workforce and transferring skills from work in harsh environments. any industry that might have valuable insight into some of the cutting-edge technology “From the G+ reports, we identified top risks we are using. Many do not have experience to be incidents during manual handling, lifting specifically in renewables, but they bring operations and access/egress. Our response important experience with some of the

technological systems and control room management that will help us achieve our goals for Dogger Bank. “We have been building our team around our overarching strategy for the wind farm, ensuring we have the right engineers, technicians, operators, safety experts and administrators to support the different systems and equipment we have on a day-to-day basis. Dogger Bank already has huge involvement with local STEM (science, technology, engineering and mathematics) learning projects and there has been substantial commitment to apprenticeships, scholarships for up to 50 students and other pathways to train a new generation of offshore wind workers both directly through our supply chain. We have also invested in the local community, encouraging individuals from the North East to get involved with career opportunities. Equinor has joined supply chain events and TIGGOR – a North East business growth programme for Technology, Innovation & Green Growth for Offshore Renewables – further demonstrating our dedication to local growth. We’re a partner of the North East Energy Catalyst as well, alongside Port of Tyne, local university institutions and other companies, designed to promote collaboration in offshore wind and drive innovation to solve challenges in the North East, across the UK and globally. “Ultimately, it’s important to us that we create a team of people with the right competencies but also values. In the future, Dogger Bank will have more than 200 full-time roles." This is clearly an exciting time for Dogger Bank and everyone involved in designing and building the facilities. As a joint partnership between SSE Renewables, Equinor and Eni Plenitude, the project is pushing the boundaries of what has been achieved so far in the industry and what may be possible in the future. Watch this space!

RENEWABLES

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What does your job involve on an average day? One of my favourite parts of my job - It’s a versatile role, so no two days are the same! One day I can be processing offers for new starts and supporting any ongoing contractual queries. The next day I could be involved in various client meetings and getting to meet our contractors, but at any minute be ready to arrange everything from PPE to travel for an urgent mobilisation to site the following day, which in this industry happens a lot!

What has been the highlight of your career so far?

TRACEY CEPEDA

Contractor Management Services (CMS) Advisor, Energy Resourcing Tracey has been part of the Energy Resourcing business now for around 5 years. Prior to that she worked for Energy Resourcing’s parent company Worley, where she worked as a Logistics Coordinator on various projects for 2 years. In her current role as CMS Advisor, Tracey is part of the team that supports all of Energy Resourcing’s PAYE & PSC contractors through the life cycle of their assignment. This includes a range of different activities from onboarding, compliance, supporting with general queries & managing any changes to their assignments right through to the end of their assignment.

How did you get into the Energy sector and how long have you been working in it? I’ve been part of the energy sector for over 9 years now. I first came into the industry as a Logistics Coordinator at a drilling contractor back in 2013. As with a lot of people in Aberdeen, the fact Oil and Gas is such a large employment sector in the area meant I quickly landed in an oil and gas role. I’ve always been a people person, so the logistics role really appealed to me as it meant I could have that communication with lots of different people on a daily basis.

www.ogv.energy I August 2022

I have several highlights from all of my different roles within the Oil and Gas Industry. One of my biggest successes, is the way in which I have been able to adapt and evolve my previous customer service experience to each of the new roles that I have held. It was a huge change moving from the beauty industry to oil and gas. There is nothing similar content wise between the conversations I was having when I worked in the beauty industry to when I’m speaking to offshore personnel in terms of content, but the end result of ensuring the customer is happy is the same. I’m always thankful for my customer service skills that I learnt throughout my career as they’ve helped me get to where I am today.

What ambitions have you still got to fulfil professionally in your career? I am still progressing within my team, and currently transitioning into a new role as a Senior CMS advisor. This will include managing a team aswell as being point of contact for any complex contractual queries. This is going to open more opportunities for me to get involved in different areas, such as looking at and hopefully improving our processes which I am excited to do, as well as sharing my knowledge and expertise with my team. I look forward to continuing to grow and learn with Energy Resourcing, to help achieve both my own personal and the business, goals and targets.

Who has been the most influential person in your life professionally? If I had to choose someone that impacted my career, it would have to my first HR manager Tracey from my first job in Oil and Gas at a drilling contractor. She directly taught me everything about the industry, aiding in my learning process. She had 26 years’ experience

at the time, and I really respect her. Not only did I learn the basics of the industry, but I also learned so much indirectly. I was given tasks that were out of my comfort zone and really challenged me which allowed me to reach goals I never thought I could which has helped me to this day.

Over the next 10 years, what changes would you like to see in the energy sector with respect to D&I? I think like most women in the energy sector, we want to see other women succeed here. Be that engineering through STEM, offshore, or management roles through career progression & success. Its empowering as a female to see women in such a male dominated sector in positions of power. It must be so inspiring for the young people of today when their mothers, aunties, sisters & friends are being given these opportunities. It allows them to believe it’s possible for them too. A quote I came across by Sundar Pichai ‘A diverse mix of voices leads to better discussions, decisions & outcomes for everyone.’ With the rapidly evolving world we live in right now diversity & diverse thinking is the only way we can move forward.

Given the experience you have now, what advice would you give a graduate just starting their career in the Energy sector? Dream Big! Don’t be afraid to share your aspirations with people. If people don’t know where you want to be, they can’t help you get there. Also, always say yes to the opportunities you are given, even if you fail, you will have grown from the experience & it will help you in the future.

If you were inviting guests to a dinner party, which 3 people would you invite and why? JLO – Queen of POP and I love her! I want to also know her secrets to looking so amazing at the age of 52! The Queen – Britain’s longest-ruling Monarch, I would love to ask her about so many historical moments Brad Pitt – He is beautiful and I would love to give him the opportunity to sweep me off my feet & whisk me away to his Hollywood mansion!

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Eni, Total, Occidental sign $4 bn Algeria oil contract

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.

Rome with "significant volumes of natural gas", as Europe seeks alternatives to Russian supplies. The accord aims to produce one billion of oil equivalent barrels, Sonatrach said in a statement. The partners will "develop additional liquid hydrocarbon resources, while reducing these fields carbon intensity through a dedicated carbon reduction program", Total said in a separate statement.

Italy's Eni, US major Occidental, France's Total and the Algerian group Sonatrach signed a $4 billion oil and gas production-sharing contract for the Berkine field in the country's southeast. Algerian President Abdelmadjid Tebboune, hosting his Italian counterpart Mario Draghi on Monday with whom he sealed a clutch of deals, said the 25-year accord would provide

The deal was signed under Algeria's 2019 hydrocarbon law that allows for production sharing with foreign partners. It drew heavy criticism from the Algerian opposition and street protests over an alleged sell-out of national resources.

imports historically coming from Russia. But Rome has increasingly looked to Algeria, historically its second biggest supplier, to reduce that dependence after Russia's invasion of Ukraine sparked sanctions against Moscow and sent energy prices soaring. Algeria is Africa's biggest gas exporter and supplies around 11 percent of the natural gas consumed in Europe.

Worley wins unconventional gas work from Aramco

According to an Algerian government source, the North African country will increase gas exports to Italy by four billion cubic metres in the coming days. Italy buys the majority of its natural gas from abroad, with some 45 percent of its

Extending drilling capacity in Brazil with Valaris DS-17 have high expectations to their deliveries on safety and efficiency,” says Geir Tungesvik, executive vice president for Projects, Drilling and Procurement. Drilling services and other additional services such as remotely operated vehicle (ROV), managed pressure drilling (MPD), casing running, slop treatment and cuttings handling are included in the contract. A fuel reduction incentive has also been agreed on. On behalf of the Bacalhau licence partners, Equinor Brazil has awarded Valaris, represented by Ensco UK Drilling Limited and Ensco do Brasil Petróleo e Gás LTDA, a 540-day drilling contract scheduled to start in 2023. The Valaris DS-17 drillship has been tasked to drill an appraisal well, plug an old exploration well and conduct additional drilling scope in Brazil. “Brazil is one of Equinor’s core areas, and Bacalhau is one of our flagship projects internationally. We are pleased to land an agreement with the Valaris, on deliveries from an advanced drillship for this important field. We look forward to working with one of the world’s largest rig contractors and we

www.ogv.energy I August 2022

“The second rig in Bacalhau will expand our drilling capacity in Brazil and will further enhance our understanding of Bacalhau North through an ADR (Reservoir Data Acquisition) well. The decision to bring in DS-17 demonstrates our commitment to create value in Brazil, where we have a longterm presence perspective,” says Veronica Rezende Coelho, country manager in Brazil. DS-17 is an ultra-deepwater drillship, capable of operating in water depths of more than 3600 metres. Partners in Bacalhau: Equinor 40% (operator), ExxonMobil 40%, Petrogal Brasil 20% and Pré-sal Petróleo SA (production sharing agreement manager, not an investor).

Australia's Worley has secured project management services contracts from Saudi Aramco for unconventional gas projects both in and out of the kingdom, it said on July 18. Under these three-year deals, Worley will provide front-end engineering and design, detailed design support, project management services and construction management services. They include twoyear extension options. The value of the contracts was not disclosed. “We are pleased Aramco has selected Worley for this programme that is key to meeting the Kingdom’s growing energy needs," Worley CEO Chris Ashton said in a statement. "We look forward to continuing our longstanding global relationship with Aramco and supporting its assets’ long-term sustainability goals, while remaining committed to delivering a more sustainable world."

CONTRACT AWARDS

Ørsted awarded contract for world’s single biggest offshore wind farm The UK Department for Business, Energy and Industrial Strategy (BEIS) has awarded Ørsted a contract for difference for its Hornsea 3 offshore wind farm. The project was awarded at an inflation-indexed strike price of GBP 37.35 per MWh in 2012 prices. With a capacity of 2,852 MW, Hornsea 3 will produce enough low-cost, clean, renewable electricity to power 3.2 million UK homes, making a significant contribution to the UK Government’s ambition of having 50 GW offshore wind in operation by 2030 as part of the British Energy Security Strategy. Hornsea 3 will play a key role in the ongoing development of a larger and sustainably competitive UK supply chain to support the next phase of the UK’s offshore wind success story. Ørsted has already announced a multi-million pound agreement for Hornsea 3 to be the first and lead customer at SeAH Wind’s monopile factory in Teesside, underpinning SeAH’s investment decision to establish a new, globally competitive monopile factory in the UK. Hornsea 3 will contribute significantly to Ørsted’s ambition of globally installing 30 GW offshore wind by 2030. Ørsted currently has approx. 7.5 GW offshore wind in operation, approx. 3.5 GW under construction, and another almost 11 GW of awarded capacity under development including Hornsea 3.

£2m contract wins for innovative engineering and fabrication firm JBS Leading UK training provider, AIS Survivex, has secured a major five-year contract to deliver Training Management Services (TMS) for Stork in the UK. AIS Survivex, part of 3t Energy Group, has delivered training services for Stork for more than 10 years and the new bespoke TMS solution will fully digitalise Stork’s training management process. AIS Survivex and its technology partner, 3t Transform, will deploy its market leading integrated learning platform, which will be fully connected with Stork’s existing people management system, resulting in increased efficiency, transparency and flexibility to its UK workforce. Stork, a value-driven provider of fully integrated maintenance, modifications and asset integrity solutions, has numerous locations throughout the UK, serving various sectors. The new tailored TMS will ensure complete consolidation of its

155 billion pounds and almost 100,000 people to be employed in the sector by 2030. Hornsea 3 will support up to 5,000 jobs during its construction phase with up to a further 1,200 permanent jobs both directly and in the supply chain for the long operational phase. Hornsea 3 will be operated from Ørsted’s operations and maintenance hub in Grimsby. The Hornsea Zone will also include Ørsted’s Hornsea 4 project, which could have a capacity of approx. 2.6 GW. Hornsea 4 is currently going through the planning process with a decision expected in early 2023. Ørsted will build Hornsea 3 including transmission assets (offshore and onshore substations and export cables). When the wind farm has been fully commissioned, Ørsted will, in accordance with UK regulation, divest the transmission assets to a new owner. Ørsted expects to take final investment decision on Hornsea 3 within 18 months and potentially as soon as by end of 2022. The two-way contract for difference (CfD) for Hornsea 3 runs for up to 15 years starting after commissioning of the wind farm, which is planned for 2027. The strike price is inflationindexed up to and throughout the CfD period. The nominal starting price per MWh will be determined based on the strike price plus accumulated inflation from 2012 until the CfD starts. After the CfD ends, Hornsea 3 will receive the market price for electricity or enter new power purchase agreements. The information provided in this announcement does not change Ørsted’s financial outlook for the 2022 financial year or the expected investment level announced for 2022.

Sword celebrates 3-year IT and IM contract award with leading North Sea operator Sword is delighted to have signed a three-year agreement with Ithaca Energy UK Ltd for the provision of Information Technology (IT) and Information Management (IM) services. The three-year contract utilises Sword’s full managed service offerings to deliver a proactive service improvement program for Ithaca Energy. This builds on a working relationship that began in 2019 between Sword and Ithaca Energy, spanning information systems, data, and digitising working processes. By elevating their IT and IM services to a scalable provider, Ithaca Energy can access relevant specialist expertise and resources on demand to fit their evolving business priorities over the next 3 years and beyond. Stable technology foundations also enables Ithaca Energy to focus on delivering enhancements to their UKCS operations. Dave Bruce, Chief Executive Officer at Sword, commented: “We are delighted to continue and extend our strong working relationship with Ithaca Energy. Sword Group has much to offer with the combination of our extensive Energy Sector experience, strong service management ethos and the wider capabilities of our organisation - we look forward to working alongside Ithaca Energy for the years to come.” Ian MacKenzie, Technology and Innovation Manager at Ithaca Energy, added: “We have an excellent working relationship with Sword and are pleased to have made this contract award. We look forward to collaborating with them to deliver enhanced outcomes to our business and realising the benefits of their breadth and depth of experience.”

supply chain to support Stork’s aim of setting industry standards of excellence. Gavin Taylor, Vice President, 3t Energy Group, commented: “We are delighted to announce this TMS contract with one of our most long-standing clients. Stork has worked with our team since the inception of AIS Survivex and this is the next stage of supporting the business with the digitalisation of its processes to deliver a highly efficient and flexible managed training service. “As the sectors we serve work towards the energy transition, it’s more important than ever to have tailored solutions that support compliancy and transparency to develop global workforces. We are excited to be part of Stork’s journey as we continue to build on our mission to transform training with technology.” Nicola Murray, Stork’s Regional Director for Human Resources in the UK added, “A trained and competent workforce is fundamental to the safety of our people and successful delivery of our contracts. Having a complete digital solution, which works with our existing people management system, adds to increased efficiency for our clients. We look forward to

continuing our relationship with AIS Survivex and reaping the rewards of their smart solutions.” AIS Survivex is part of the 3t Energy Group portfolio of companies which includes Drilling Systems, 3t Transform and joint venture 3t EnerMech. Across its businesses, 3t Energy has offices in Europe, North America, China, and the Middle East. The 3t Energy Group businesses provide ground-breaking technology to deliver worldclass, industry focused solutions across its three offerings - Training, Simulators, and Software & Technology.

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ON THE MOVE

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David’s sector experience includes chemicals, energy, healthcare, infrastructure and transportation, and manufacturing. However, he has had a specialist focus on the chemicals industry since 2014. During this time, David has developed a deep knowledge of the global chemicals sector and has strong relationships across Europe, Asia and North America and has successfully placed leaders in PE-backed, privately owned, and fully listed international organisations. David has a keen understanding of psychometric testing and the interpretation and analysis of psychometric results. He is a fully trained Saville Wave Behaviour Assessment Practitioner and a Thomas International Practitioner for Personality Profile Analysis.

To date, 4C has supported activity with tier one global contractors in decommissioning, well intervention, well management and offshore drilling as well as working alongside global rig moving and rig upgrade engineering specialists. In new energy, 4C currently consults in both power and marine renewables.

Mr Bryce takes on his new role with the Aberdeen-based consultancy having previously worked in the Energy Sector for more than 30 years. He worked predominantly within the drilling industry, and more recently within the renewables marine space and brings a wealth of knowledge to 4C where he will work with Managing Director, Finlay Johnston. The duo will offer strategic support to management teams looking to improve their efficiency, enhance opportunities, and increase profitability.

Martin Houston

EnQuest PLC - Londonbased North Sea and Malaysia-focused oil and gas company - Says Chair Martin Houston has informed of his intention to step down

Houston has been chair since October 1, 2019. The company says the timing of his departure will be confirmed once a successor has been recruited. Houston says: "I have much enjoyed leading the EnQuest board, but now is the right time to focus on my wider portfolio of companies in the sector. Over the last three years, EnQuest has made significant progress, despite the challenges of the pandemic and commodity price volatility. With a strengthened and diversified board, I believe EnQuest is well positioned for the next phase of its journey."

Finlay Johnston & Jon Oliver Bryce

North-east consultancy 4C Global has secured a “key new appointment” to supports its ambitious growth strategy

Energy industry executive Jon Oliver Bryce has joined business growth consultancy 4C Global (4C) as a Senior Advisor. 4C, launched in 2020, supports companies with strategy and business growth in multiple industries including Oil and Gas, Marine and New Energy.

Andy Duncanson

North Sea oil and gas firm Dana Petroleum has announced the appointment of a new chief operating officer

Andy Duncanson joins the Aberdeenheadquartered company from London-listed operator EnQuest, where he held the position of upstream director. During his career, he has held a number of other roles in the oil and gas industry, including as head of operation in Qatar and Copenhagen for Maersk Oil. Mr Duncanson will be responsible for all Dana’s operations in the UK, Egypt an the Netherlands, and will take up his new role in mid-August.

www.ogv.energy 2022 www.ogv.energy II June August 2022

Robin Allan

Hurricane Energy plc the UK-based oil and gas company, today announced the appointment of Robin Allan to its Board as an Independent NonExecutive Director, effective from 1 July 2022

During his career, Mr Bryce has undertaken a series of senior positions for both public and private companies, most notably with a nineyear stint as CEO of Awilco Drilling PLC. Having managed various companies with a diverse range of operating models, he has considerable experience including IPO listing and Capital Markets funding. He has successfully built upon both established and new start companies and has a proven track record for creating shareholder value through identifying opportunities, strategic development, commercial and technical innovation, topquartile operational performance and strong organisational leadership. “Robin brings a wealth of industry technical, commercial and environmental experience to the board of Hurricane and I am pleased to welcome him as an Independent Non-Executive Director. His wide experience at executive level with Premier Oil, including as Director, North Sea and Exploration, and his role as Chairman of BRINDEX, the Association of British Independent Exploration Companies, will serve the Company well as it navigates the next phase of growth as we make important financial and strategic decisions. Robin was one of a diverse range of strong candidates highlighted in the extensive and thorough search process managed by a leading sector-focused executive search firm, Preng & Associates. We are very pleased that he has accepted our offer to join the board.” said Board Chair, Philip Wolfe. Robin will also join the Environmental, Social, and Governance Committee as Chair and the Technical Committee as a member.

ON THE MOVE ON THE MOVE

49 41

Repsol Sinopec is pleased to announce it has appointed Adam Sheikh as Vice President (VP) Decommissioning and Energy Transition highlights the strategic importance of both decommissioning and the energy transition to Repsol Sinopec and the increased focus on these integrated parts of the business. “Decommissioning is a key part of the UK’s transition to low-carbon energy and its aim of reaching net zero by 2050 and will bridge the gap as we navigate through the energy transition towards cleaner, greener energy sources. Decommissioning and late-life asset management spend is increasing and presents one of the few areas of guaranteed growth in our industry.

Bettina Karsch

Cepsa appoints New Human Resources Director

Bettina Karsch will become Cepsa's new Human Resources Director on September 1, replacing Carlos Morán, who will leave the company in October after a decade as Human Resources Director. Bettina Karsch, who will become a member of the Management Committee and report to the CEO, Maarten Wetselaar, has spent most of her professional career at Vodafone, where she previously held the position of Human Resources Director for Europe (EU Cluster). Before that, she was the Human Resources Director in Spain and Germany.

Adam Sheikh

The newly created role sits on Repsol Sinopec’s Executive Management Team (EMT), reporting to CEO Jose Luis Muñoz. Mr Sheikh, whose most recent EMT role was VP Business Projects, commented: “I’m really pleased to have been appointed VP Decommissioning and Energy Transition. The creation of this role

“Decommissioning does not signal the end for the North Sea - on the contrary, it represents an unrivalled opportunity. Increasing numbers of decommissioning projects in the North Sea will co-exist as part of the energy mix and offer significant career opportunities. In fact, Repsol Sinopec aims to deliver one of the North Sea’s most ambitious decommissioning programmes in the years ahead and are recruiting a number of positions now.

Chinese oil and gas giant CNOOC Limited has revealed several changes to its board of directors

Jadestone Energy plc (“Jadestone” or the “Company”), an independent oil and gas production company focused on the AsiaPacific region, is pleased to announce the appointment of Bert-Jaap Dijkstra as Chief Financial Officer (“CFO”) and director of the Company, effective 1 September 2022. Mr Dijkstra joins Jadestone from SBM Offshore, where he held a number of finance and management roles since 2013. Most recently he served as Group Treasurer and Director of Investor Relations. In this role he has built significant experience of equity and debt capital markets. He has been directly responsible for managing all financing activities for SBM Offshore, including structuring c.US$5 billion in recent project financings, managing the group’s financial risk (including hedging programmes), optimisation of funding sources and corporate finance. He was voted best investor relations professional for the energy services sector in the 2019 Extel and in the 2020 and 2021 Institutional Investor surveys. Prior to his employment at SBM Offshore, Mr Dijkstra held various finance roles in European commercial real estate and also Royal Dutch Shell, where he lived and worked for a period in Southeast Asia as Finance and Planning Manager. Mr Dijkstra holds a MSc degree (with honours) from Wageningen University. He is a Chartered Management Accountant and completed an MBA in Financial Management from MIT Sloan School of Management.

Stuart Payne

The North Sea Transition Authority (NSTA) has announced that has been appointed as the organization’s new chief executive

The North Sea Transition Authority (NSTA) has announced that Stuart Payne has been appointed as the organization’s new chief executive. Payne will succeed outgoing chief executive Andy Samuel and assume responsibilities on January 1, 2023, the NSTA noted, adding that Payne was appointed by the NSTA board following a competitive internal and external recruitment process. Payne’s work will include supporting the industry on vital projects involving electrification, carbon storage, energy hubs and exploration, liaising with other organizations with interests in the North Sea and working even more closely with government and industry in light of challenging global politics, according to the NSTA. Payne first joined the organization in 2015 and is currently responsible for decommissioning. He has held a variety of leadership positions in the oil and gas industry and was awarded a CBE for services to the sector in the Queen’s Birthday Honors List in 2020, the NSTA highlighted.

Robin Watson

Ken Gilmartin

John Wood Group PLC announces the appointment of Ken Gilmartin as Chief Executive Officer (CEO)

Effective from 1 July 2022. Ken’s appointment follows an extensive selection process that considered both internal and external candidates. Following 15 years with Jacobs, Ken joined Wood as Chief Operating Officer in August 2021. In his time at Jacobs, Ken held a variety of executive, operational and project leadership roles. Most recently, he was Executive Vice President of the firm’s People & Places solutions business, responsible for more than half of Jacobs’ overall business portfolio, serving public and private sector clients across a wide range of end markets. With over 25 years’ experience, Ken has worked internationally throughout his career including leading the delivery of major projects, and running major operations, in Europe, Asia, North America, and the Middle East. Ken will succeed Robin Watson (left), who announced his intention to retire in April 2022. Robin will step down from the board effective 1 July 2022 and will remain with Wood until 30 September 2022 in an advisory role to support a smooth transition.

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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.

Well-Safe Solutions inks new UKCS decommissioning deal Gavin Robinson, Commercial Manager at Well-Safe Solutions, added: “We are delighted to assist our client, a leading European operator, with meeting their decommissioning obligations on these historic fields. “Like the Well-Safe Guardian and Well-Safe Protector, the Well-Safe Defender is a dedicated decommissioning asset converted from a drilling rig. Clients benefit from a greatly reduced carbon footprint and quicker mobilisation times as a result, as no virgin steel is required for a new-build rig.

Well decommissioning specialists WellSafe Solutions have signed an agreement to plug and abandon (P&A) 14 wells on the UK continental shelf. The deal is the first scope agreed for the Well-Safe Defender semi-submersible rig, which Well-Safe Solutions purchased in June 2022. The project, for an undisclosed value, will see the Well-Safe Defender mobilising in March 2023 for approximately 250 days of work.

Neil Ferguson, Operations Director at Well-Safe Solutions, said: “This is a very exciting time for our teams, with a little over a month between Well-Safe taking ownership of the Well-Safe Defender and the signing of this contract with our latest client.” The Well-Safe Defender is currently undergoing a host of efficiency enhancements as part of its integration into the business as well as the completion of its recertification ahead of mobilisation in March 2023.

“In addition to the clear economic benefits of this approach, we expect this work to generate approximately 60 new positions offshore, with several supporting roles also required onshore. This will take the total estimated headcount in Well-Safe to 330 people in early 2023.” This contract announcement is the latest in a summer of growth for Well-Safe Solutions, who previously announced a well decommissioning contract with Ithaca Energy as well as a capital funding boost of £50m+ by new and existing investors.

GNPC kicks off Saltpond Field decommissioning project The Ghana National Petroleum Corporation (GNPC) has officially commenced the decommissioning of the Mr. Louie Platform in the Saltpond oil field. The decommissioning project is estimated to last 12 months. Being the first decommissioning project of its kind in Ghana, GNPC, its lead contractor, as well as other relevant stakeholders, showed their readiness to work hand-in-hand to ensure the success of the project. Having obtained majority of the statutory approvals and key permits, GNPC will provide both financial and technical support to fully execute the year-long project. The Chief Executive of GNPC, O.A Danquah stated that “the decommissioning of the first oil platform in Ghana is necessary to ensure that the marine ecosystem around the Saltpond area is returned to its pre-licence condition. With several oil and gas platforms expected to be decommissioned in the future, GNPC personnel will gain

www.ogv.energy I August 2022

additional hands-on technical capabilities by collaborating with other experienced industry experts during this exercise.” Mr. Danquah further revealed that the field decommissioning process was preceded by pre-planning and a feasibility study that was endorsed by the Ministry of Energy. “While we continue to work to meet all the technical and safety requirements, the corporation is also enhancing its social license to operate by continuously holding stakeholder and community engagements in coastal communities where the project is taking place. This is to sensitise fisherfolk about the importance and need to observe safety measures and stay away from the restricted zone. We have also supported the traditional authorities to perform all the necessary customary rites for the project to kick-off.” Mr Danquah added. The Chief Executive Officer of GNPC thanked the Ministry of Energy, Petroleum

Commission, Ghana Maritime Authority, National Security, Environmental Protection Agency and other key stakeholders whose representatives were present at the kickoff for their support in ensuring that the project takes off successfully. The Decommissioning Project The Mr Louie Platform (commissioned in 1970) has reached the end of its operational life and is deteriorating. GNPC has engaged Hans & Co. Limited [a wholly Ghanaian owned Company] to lead a consortium of industry experts in undertaking the project on a turnkey basis. The project will be supported by a project management consultancy firm to ensure that all aspects of the decommissioning, including well plugging and abandonment and topside removal, are performed with strict adherence to Health, Safety, Security and Environmental (HSSE) protocols.

DECOMMISSIONING Xodus forms advisory group to tackle decommissioning challenges in Australia Global energy consultancy Xodus has established a new Contaminant Advisory Group to help tackle the decommissioning regulatory challenges facing operators in Australia. The group, which includes representatives from ANSTO, SA Radiation, Total Hazardous Integrated Solutions and Qa3, has been formed in response to the Australian Government’s Offshore Petroleum and Greenhouse Gas Storage Amendment Bill which aims to strengthen and clarify Australia’s offshore oil and gas regulatory framework. The bill, an amendment to the Offshore Petroleum and Greenhouse Gas Storage Act 2006, requires operators who are decommissioning in situ to report their precise contamination levels to limit further pollution. The Contaminant Advisory Group has been created to provide advice and integrated solutions on the best approach to decommissioning and the associated contamination issues. The members’ combined capabilities and experience will evaluate potential contamination risks for offshore and onshore infrastructure (both in-situ and through the disposal or recycling pathways), particularly in relation to

naturally occurring radioactive material (NORM) and mercury, common byproducts during oil and gas extraction. NORM and mercury are hazardous materials and may pose a risk to the environment if not dealt with appropriately during decommissioning and can be difficult to detect without expert knowledge and skill. There are currently only a select number of companies that have developed both the skillsets, experience and equipment necessary to detect, differentiate and treat these contaminants. Using its knowledge on full field decommissioning, Xodus will lead the team of specialised contaminant consultants, having benefitted from established ongoing relationships with operators in the region. Alasdair Gray, Late Life and Decommissioning Lead at Xodus said: “We believe that collaboration will be key to the future success of decommissioning in the region, and we are excited to bring this group together to tackle some important challenges relating to legacy offshore oil and gas equipment. “As laid out in NOPSEMA’s recent research strategy, the risk of

contaminants is one of the primary knowledge gaps. Each member of the group has proven experience in the areas of NORM and mercury research, detection, analysis, decontamination and disposal. In bringing these experts together, we can provide not only Australian operators but the wider supply chain with an end-to-end solution to support their decommissioning decision making and ultimate demonstration of ALARP to the regulator. “Knowledge sharing will be key in ensuring that we are offering the best integrated bespoke solutions to each operator’s unique contamination issues to protect the environment, increase safety and reduce the costs of decommissioning in Australia.” Kent Gregory, Director of SA Radiation added: “SA Radiation is proud to be part of the Contaminant Advisory Group put together by Xodus. We look forward to pooling our expertise to find the best solutions for our oil and gas clients.”

Wood to oversee first decom phase of Timor Sea FPSO UK oilfield services provider Wood Plc has been contracted by the Australian government to supervise the first decommissioning phase of a floating production, storage and offtake (FPSO) vessel located in the Timor Sea off Australia. Wood revealed on Tuesday that it has been awarded the role of owner’s team by the Australian government, with responsibility for overseeing the first decommissioning phase of the FPSO Northern Endeavour in the Timor Sea. Ralph Ellis, Wood’s President of Operations across the Asia Pacific region, remarked: “The responsible decommissioning of the Northern Endeavour FPSO is of great national interest, with safety, cost, and sustainability in sharp focus throughout. We are proud to have been selected by the Australian government to represent their interests in the first phase of the field’s decommissioning journey.” The oilfield services provider explained that it will work closely with the Department of Industry, Science, Energy & Resources (DISER) and contractors on behalf of the Australian government to ensure the “safe, efficient, and responsible” initial phase of this critical decommissioning scope.

“As owner’s team, we will leverage our unrivalled offshore decommissioning expertise garnered in mature basins across the world to support the successful delivery of this critical scope of work. We look forward to working closely with both DISER and the lead contractor on this important project,” added Ellis. According to Wood, this is the first time the government has selected a partner in this type of contract and will be “key to building momentum” in the country’s growing decommissioning market. Back in April 2022, Petrofac disclosed that it was hired as an outsourced operator to complete the decommissioning of Phase 1 for the FPSO Northern Endeavour through a deal estimated at AUD$325 million or $236 million. At the time, Petrofac advised that it would start a managed transition of operational control from the existing operator, Upstream Production Solutions, who was contracted in May 2020 to provide operations and maintenance services for this FPSO. Based on the information from DISER, the decommissioning and remediation are anticipated to take several years and

DECOMMISSIONING SPONSORED BY

involve three phases. In lieu of this, Phase 1 entails decommissioning and disconnecting the FPSO Northern Endeavour from the subsea equipment. Afterwards, Phase 2 will cover the permanent plugging and well abandonment while Phase 3 requires the removal of subsea infrastructure and remediation of the Laminaria and Corallina fields. Permanently moored between the Laminaria and Corallina oilfields – approximately 550 km northwest of Darwin in the Timor Sea – the FPSO Northern Endeavour is 274 metres long. The production from this FPSO started in 1999 and peaked at 170,000 barrels of oil per day.

STATS & ANALYTICS

STATS & ANALYTICS PROVIDED BY

Field Development Update

Westwood Global Energy Group

Offshore O&G-related engineering, procurement, and contraction (EPC) contract awards announced in the last 30 days are estimated at c.US$8 billion, bringing the year-to-date total to US$26.5 billion (excluding letters of intent), representing 38% of total EPC award value anticipated in 2022.

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.

Recent EPC contract highlights include Saudi Aramco's multiple engineering, procurement, construction and installation (EPCI) contract awards as part of its offshore long-term agreement (LTA) for 50 fixed platform jackets, five production deck modules, as well as associated subsea pipelines and cables across its Abu Safah, Marjan, Manifa, Safaniya and Qatif fields. The contract was distributed amongst Saipem, Abu Dhabi's National Petroleum Construction Company (NPCC), Larsen & Toubro (L&T) and Subsea 7. Another major contract announcement during the period is Petrobras' award of a four-year contract to Tenaris to supply a comprehensive package of products and services for the Buzios development offshore Brazil. The contract is expected to exceed 100,000 tonnes of seamless and welded casing in carbon, sour service, and high collapse steel grades. Industry sources have reported that Keppel Shipyard is the preferred bidder to build the P-80 and P-82 floating production, storage, and offloading (FPSO) units to be deployed at the Buzios project. However, neither Petrobras nor Keppel have formally confirmed the award.

www.westwoodenergy.com

US-based Flour was awarded the engineering, procurement, and fabrication management for New Fortress Energy's Fast LNG 2 project. The unit is expected to have an LNG capacity of 1.4 mmpta. However, the location where the unit will be utilised was not disclosed. Major awards anticipated in 3Q 2022 include a formal EPC award for the fixed platform, subsea line pipes and umbilicals for Shell's Crux development which was sanctioned in May 2022. Shell is also expected to sanction its Jackdaw field in the UK North Sea, after receiving approval of the revised development plan. Saudi Aramco is also expected to continue its award spree under its contract release purchase orders (CRPOs) for its Zuluf project, with QatarEnergy expected to sanction its North Field South (North Field Expansion Phase 2) development.

Offshore Rig Update The global committed jackup count remained at 380 in June, leaving 51 marketed jackups available and another 58 jackups cold stacked. Marketed, committed utilisation stood at 88%, while total fleet committed utilisation came in at 77%. One new jackup was delivered: COSL’s SinoOcean Harvest, while WFD 300 was retired. There were 18 new fixtures finalised in the month, totaling 10,217 drilling days at an average dayrate of $98,000. Global committed semisubmersible (semi) count increased by one to 67 in June. Another 16 units are available in the marketed fleet, while 14 are cold stacked. The marketed, committed utilisation was at 81% while total fleet utilisation was 69% and total supply remained at 97 in the month. Three new fixtures, with a total of 778 drilling days, were recorded in June. The longest came from Equinor for a 1.6-year, Norwegian deal for Transocean Spitsbergen, commencing in Q4 2023. Finally, drillship demand continued to increase with 73 rigs committed in June and marketed, committed utilisation reaching 93%. Only five drillships are available in the marketed fleet, while 18 remain cold stacked. One new unit joined the global fleet: Transocean’s 20k psi BOP Deepwater Atlas. Three new contracts, with a total of 478 drilling days, were signed in June at an average dayrate of $297,000/day.

Offshore O&G EPC Awards $billions 80

Expected

Sanctioned

60 50

43.0

40 68.4

30 44.7

42.3 26.5

16.0

0 2019

2020

2021

2022

2023

Westwood’s 2022-23 outlook assumes a $65/bbl Brent oil price

Subsea Tree Awards #XTs 2022

123

2021

Sanctioned Firm

179

Pre-Order Probable

FPS Throughput Additions by Year of Sanction kpoepd 3000 2500

LNG

Gas

Liquids

2000 1500

Since the last update, Siemens Gamesa signed firm turbine supply contracts for a total of three offshore wind farms. The turbine OEM will supply a total of 60 SG 14-222 DD turbines with a 14.7MW power boost at the 882MW Moray West wind farm, located offshore UK. The company will also supply 83 SG 11.0-200 DD turbines at the 913MW Borkum Riffgrund 3, and 103 SG 8.0-167 DD turbines with a 9MW power boost at the 927 MW Gennaker wind farms, both of which are located offshore Germany.

1000 500 0 2019

2020

2021

2022

2023

Offshore O&G EPC Awards 2022-26 by E&P $billions to be awarded

Dominating headlines was the Contracts for Difference (CfD) announcement in the UK. CfDs were awarded to five offshore wind projects at a strike price of GBP 37.35/MWh. The offshore wind farms awarded CfDs are 2,852MW Hornsea Three, 1,372MW East Anglia Three, 1,396 MW Norfolk Boreas, 1,080MW Inch Cape Phase 1, and 882MW Moray West (for 294 MW). Hexicon’s 32MW TwinHub Floating Offshore Wind Project was also successful in securing a CfD at a strike price of GBP 87.30/MWh.

www.ogv.energy I August 2022

11.9

11.5

11.1

10.4

9.7

Woodside

ExxonMobil

Shell

QatarEnergy

ENI

Chevron

9.1

8.9 Aramco

17.9

CNOOC

22.2 Equinor

36.1 Petrobras

Finally, in India, the Ministry of New & Renewable Energy announced it is planning to launch the country's first offshore wind lease auction in 2H 2022. A total of 4 GW of offshore wind capacity will be made available, and the lease areas will be located offshore Tamil Nadu state. Seven further auctions are also planned to take place between 2023 and 2030.

120.9

Other

Offshore Wind Update

Offshore Energy Services Dashboard June / July 2022

Offshore Rigs available from

RigLogix

Global Rig CountBacklog Month-on-Month (Rig Years)

June Rig Counts Jackups

Jackups

Semisubs

489

16 54

Jackups

Contracted

Semisubs Drillships Drillships

July 1

672.2

85.9

July 1

119.0

Drillships

Semisubs

490

380

Semisubs Jackups

Drillships

RigLogix

Available

Stacked

Semisubs June 1 692.657

DrillshipsJune 1 121.3

June151

89.9

344

Regional Month on Month Rig Counts (June vs July)

Jackups

Semisubs

Drillships

3.3

2.1 85.00% 80.00% Global Rig Utilisation -0.3 75.00% 70.00% Semisubs 65.00% 90% 60.00%

85% 80%

50%

Effective 90% 85%

65%

60%

55%

50%

45%

40%

17%

June 1 18%

20%

120.4 26%

600 400

0 2019

May2021 1 2020

687.0

2022

2023

May-21

Arabian Gulf

Jan-21

South America Mar-21

Sep-20

SE Asia Nov-20

Expected by Region

June 1

89.0

800

200

Arabian Gulf

South America

SE Asia

US GoM

Total

Effective

WindLogix

12%

40%

Awarded by Backlog Month-on-Month (Rig 55% Years) OEM

668.3

Latin Arab Gulf America

WindLogix

45%

4%2%

May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22

June 1

1000

SE Asia

50%

Offshore WTG Awards (excl. Mainland China)

1200

US GOM

40%

80%

60%

1400

60%

70%

1600

80%

70%Europe

65%

Awarded

90%

Global

65% Offshore Wind available from

Expected

Jan-20

Sep-19

Arabian Gulf

Jul-19

Latin Arab Gulf America

75%

1800

-0.8

100%

70%

2000

0.9

Drillships

70%

#WTGs

Latin Arab Gulf America

-0.5

75%

SE Asia

0.6

Global Rig Utilisation Total

US GOM

May-20

SE Asia

May-21 South America

Jan-21

Mar-21

SE Asia

US GoM

US GOM

NW Europe

NW Europe Mar-20

NW Europe

Nov-20

Sep-20

NW Europe Jul-20

May-20

85% 80% 75% Global 70% 65% 60% 55% 50% 45% 90% 40%

Global

NW Europe

Global

Arabian Gulf

South America

SE Asia

US GoM

NW Europe

Global

Arabian Gulf

Latin Arab Gulf America

Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22 Jun-22

80%

-0.8

Latin Arab Gulf America

Global

85%

SE Asia

0.3

May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22

SE Asia

US GOM

Global Nov-19

US GOM

Jun-20 Aug-20 Oct-20 NW Europe Dec-20 Feb-21 Apr-21 US GoM Jun-21 Aug-21 Oct-21 SE Asia Dec-21 Feb-22 Apr-22 South America Jun-22

NW Europe

0.3

60.00%

Jul-19

-5.1

90% 85% 80% 75% 70% Global 65% 60% 55% 50% 45% 90% 40%

Global

4.9

Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Feb-22 Apr-22 Jun-22

Jackups

Arab Gulf

Jan-20

-1.4

Latin

Mar-20 Global

0.5

Asia America 85.00% 80.00% 75.00% 70.00% -0.6 65.00%-2.0

Nov-19

US GOM

0.8 -0.4

-0.8

-1.5 South America

NW Europe

SE Asia

US GoM

NW Europe

Global

0.8

0.1

0.7

-1.5

US GoM Jul-20

0.2

Sep-19

0.1

Arabian Gulf

0.3

Regional Rig Count Month-on-Month (June vs May)

Siemens Gamesa

Vestas

General Electric

Goldwind

Ming Yang

Other

May 1

91.2

West Europe North America Asia May 1 & FSU East Europe

124.6 STATS & ANALYTICS SPONSORED BY

42%

LEGAL & FINANCE

By Laura Petrie

CONSIDERING CONSEQUENTIAL LOSS When it comes to addressing liabilities and indemnities in the context of energy industry contracts, whether relating to the supply chain, operational matters or otherwise, consequential loss and its definition is something that is always carefully reviewed. Recent consideration of consequential loss by the courts has again raised the question of how best to define these types of losses to ensure that exactly what the parties intend to be included, or excluded, is achieved.

Case analysis The Court of Appeal ruled in May this year (in the case of Soteria Insurance Ltd (formerly CIS General Insurance Limited) v IBM United Kingdom Ltd) that where a contract excludes consequential loss, this does not necessarily preclude any claim in respect of wasted costs unless these are specifically excluded. In this case, Soteria had contracted with IBM for the provision of new IT systems. When delivery of the system was delayed, Soteria refused to pay and IBM issued notice of termination of the contract. Soteria then sought to claim the purported termination amounted to a repudiation of contract and that it was entitled to damages including recovery of costs incurred in anticipation of the new system. The courts decision turned on whether these wasted costs were included or excluded from the definition of consequential loss. The definition of consequential loss followed the traditional model that the energy industry is used to seeing in LOGIC standard form contracts. Therefore, the court sought to determine whether these wasted costs could naturally fall within one of the typical exclusions such as loss of profit. Ultimately the Court of Appeal held that if the parties had intended to exclude wasted costs, they would have specified such costs within the definition of consequential loss and accordingly Soteria was entitled to make a claim for such costs. The outcome in this case supports the decision taken in Transocean v Providence Resources. In that case, additional wording was added to the definition of consequential loss so as to expressly exclude "loss of use or the cost of use of property, equipment, materials and services including without limitation, those provided by contractors or subcontractors of every tier or by third parties)". This allowed the court to identify that by amending the usual standard form definition used by LOGIC, the intent of the parties was clearly that the additional type of costs specified in the definition intended to be categorised as consequential losses.

www.ogv.energy I August 2022

Consequences for consequential loss definitions In both cases, the judges focussed on interpretative principles when considering the way in which the consequential loss definitions were to be applied. This provides those drafting such definitions with a clear checklist to work through. 1. The wording of the definition should apply words using their ordinary and natural meaning. If wasted or spread costs are to be explicitly excluded then clear, unambiguous wording doing so should be set out in the definition. 2. Consider the exclusionary nature of the clauses in which the definition will be used. Consequential Loss is defined so as to exclude it from any liability accepted by a party, therefore, courts will look to exclude what is referenced but will rarely seek to widen or narrow the definition. If a party feels strongly that something should (or should not) be included in the definition, it should be drafted in (or removed). 3. Assess the types of loss being defined. The types of loss included in the usual standard definition reference speculative types of loss (eg: loss of profit). If the loss trying to be included is more quantifiable, then it should be explicitly included rather than relying on a pre-existing reference.

Laura Petrie

Consequential loss conclusions As more transitional energy projects are progressed, allocation of liability for consequential losses will be an important part of the contractual framework. Drafting consequential loss definitions carefully and with reference to exactly what the parties want to determine as consequential losses is essential to provide certainty for all involved.

COMMUNITY PARTNER

AFC Pledges to Tackle Climate Change Aberdeen FC has taken a major step forward in its commitment to tackling climate change by signing up to the UN Sports for Climate Action Framework. The Club is joining a growing group of sports clubs, federations and other rights holders who are taking responsibility for and seeking ways to reduce their carbon footprint. By signing up to the framework, organisations commit to reducing emissions by 50% by 2030 and achieving net-zero by 2040, aligning the Club’s ambitions with those of the city. This commitment is only the start of a journey towards becoming more sustainable and the Club

is in the process of working with an independent consultancy to measure its current carbon footprint and develop a sustainability strategy with clear short, medium and long-term goals to dramatically reduce its impact on the environment. On signing the UN pledge, chairman Dave Cormack said: “Signing this pledge underlines our intent to become net-zero but it’s only the beginning. Behind this pledge is the ongoing development of a robust strategy with clear, measurable goals and an implementation plan around every aspect of our activities. “As a Club, we already have initiatives in place to reduce our impact on the environment, but we must go much further. With our widespread reach and unique impact, we can show real leadership on combatting climate change. Working with our partners, sponsors, corporates, suppliers and fans, we will explore even more ways in which we can make a significant, tangible difference and help drive change in our behaviours.”

As part of the pledge, Aberdeen FC has committed to undertake systematic efforts to promote greater environmental responsibility, reduce overall climate impact, educate for climate action, promote sustainable and responsible travel and consumption and advocate for climate action through communication. For several years, the Club has been reducing its environmental impact through innovative water management, LED sensor-operated lighting, ecofriendly showers and heating at Cormack Park as well as recycling of food, waste oil for biofuel, grass cuttings and wood, scrap metal and plastics, paper and cardboard. Through its partnership with First Bus and subsidised park and ride facilities, it has also sought to reduce the impact of travel among fans. Cormack added: “This will be no easy challenge as some of our biggest impacts on the environment relate to travel and our ageing stadium. Any new stadium will be integral to meeting our emissions reduction targets. It’s therefore our ambition to design and build a worldclass, net-zero facility and adopting the UN’s framework will help us to achieve this.”

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COMPANY NEWS

SAFELIFT Solutions For Complex Material Handling, Lifting & Rigging Challenges Across All Norwegian Energy Industries!

"PRODUCTS THAT MAKE A DIFFERENCE" As a long-term service provider to Norwegian customers over many years, Safelift have developed proven experience in meeting the high standards of product innovation, integrity & safety which are fundamental market expectations.

The Counterbalance Floor Crane provided 3 different lifting positions across the different lifting heights available to the operator by means of the in-built hand-operated hydraulic system plus a high efficiency roller bearing slewing mechanism whilst multiple features & safeguards were adopted in the design to assure user safety. Similarly, the Swivel Castor Trolley makes use of a lifting cradle arrangement mounted on the Trolley platform to chock or support the payload being stowed & transported upon it to best ensure safe operation and the security of the load being handled. Safelift can also point to the delivery of multiple products largely from their standard product range for inclusion within the refurbishment scopes on the Njord A floating platform & Njord B floating storage vessel during their recently completed life extension upgrades, which followed a site visit to their premises by representatives from both the Operator & Contractor to discuss best practice & assess their suitability for the applications they’ve been adopted for

The highest possible level of environmental protection in terms of achieving long-term product service life is just one example of the challenging selection criteria prevalent within the sourcing philosophy which Safelift incorporates in their equipment designs to meet the requirements of Norwegian industry. This is reflected in the use of specialist nonferrous stainless steels in a couple of items the company has recently delivered there, namely a Counterbalance Floor Crane & Swivel Castor Trolley, which are pictured below. Engineered with 500 Kgs & 8500 Kgs SWL capacities respectively, both products meet the stringent requirements for use in an ATEX Zone 1 working area, which is a specialism that Safelift provide for the benefit of their energy market customers on a routine basis. Both items had to fulfil third party independent verification checks too.

Safelift Counterbalance Floor Crane

www.ogv.energy I August 2022

“We always strive for constructive dialogue with the customer’s personnel to complement their own efforts to achieve the best outcome in terms of the performance, safety & versatility of the equipment they need to utilise for a particular application or work scope”, he adds, “And we’ve had very effective engagement with our customers in Norway on this basis for many years now”. Safelift recognise the significant contemporary focus within Norwegian industry being driven by societal objectives as a whole to adopt commercial scale “clean tech” renewable or sustainable energy technologies at pace and look forward to supporting such ambitions whilst seeing the role which more conventional means of energy production will to continue to play in ensuring the nation’s economic prosperity & energy security for some time to come underpinning their contact & relationships with both existing & new customers alike. “As a well-established service provider to a diverse customer base operating in all segments of Norway’s highly progressive energy industries, Safelift anticipates significant new opportunities for collaborative business initiatives based upon our singular focus of achieving excellence in innovative mechanical handling solutions”.

Njord A; Source: Aker Solutions

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

FURTHER DETAILS CAN BE FOUND ON THE COMPANY’S WEBSITE

WWW.SAFELIFT.CO.UK

Safelift Swivel Castor Trolley

Safelift Offshore - suppliers of offshore lifting equipment - Deck Baskets, Barrel Clamps, Drum Clamps, Pallet Trucks, Offshore Cabins at Safelift Offshore. For more information visit www.safelift.co.uk

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OGV Energy - Issue 59 - August 2022 - Hydrogen & CCS

Articles inside

Big Data Analytics

We Deliver On Our Promises and Drive the Change

Digital Engineering 'Enabling Operational Efficiencies'

First Major Carbon Capture Project in The Netherlands

Net-Zero Technology Centre: Direct Air Capture

Xodus Advises Dutch Government on Second CCS Project

Global Maritime: Energy Transition is no longer relevant...

NECCUS: Being real about industrial carbonisation and what does Snow White have to do with it anyway?

Energy Crisis Bolsters Green Hydrogen and CCUS Projects

EIC: World's latest project updates

US Energy Review

Deloitte: UK hydrogen market development: Where are we now and where we might be going?

Latest updates from our OGV Community members

Energy Transition STATS Group primed to support industry with Net-Zero goals