OGV Energy - Issue 65 - February 2023 - Subsea

THE SUBSEA ISSUE

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A WORD FROM OUR EDITOR

explore the theme of ‘Subsea’ this

look forward to the ‘Subsea Expo’ from 21st to 23rd at TECA in Aberdeen.

A big thank you to our front cover partner Rotech Subsea and you can read all about their international growth and new hybrid tooling RS3 Jet Trencher system inside.

In a packed publication, we also have contributions from the Global Underwater Hub, National Subsea Centre, Proserv, Viper Innovations, J+S Subsea, Sword Group and Viewport 3.

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

Daniel Hyland, Sales and Operations Director, OGV Energy Media Group

LEADING SUBSEA TRENCHING & EXCAVATION CONTRACTOR raises the bar with introduction of cutting edge Hybrid Tooling RS3 system

Suspended jet trenching and controlled flow excavation specialist, Rotech Subsea, may be well established as the subsea sector leader in offshore renewables pre-commissioning, commissioning and IRM, but the team behind the Aberdeen-based contractor has never been known to stand still. The technologydriven company has dominated the sector for three decades by listening to the market and constantly innovating. And this relentless dedication to improvement has seen the company introduce yet another game changing innovation that is seeing them more in demand in 2023, and enter more markets, than ever before.

The recent launch of Rotech’s new compact third generation tool, the RS3 Jet Trencher, has taken the sector by storm. The tool - designed and built in-house - minimises deck space usage and is capable of cutting harder soils with jet pressures up to 350 kPa. Uniquely, the company’s RS3 tool can be paired with a number of its other high performance tools, such as the RS1 or the ultra shallow water RS1LD, with the hybrid tooling set up being able to be tailored for the precise scope or conditions of a project.

Compared to the one size fits all, blunt instrument approach of older mass flow excavation technology, Rotech Subsea’s introduction of Hybrid Tooling is a game changer, expanding further the capabilities and applications of its family of CFE tech that already enjoyed an enviable reputation. In hybrid tooling it boasts the Swiss Army Knife of trenching and excavation solutions that can call on a combination of its suite of powerful

CFE equipment, which can be precisely set up and calibrated for each project.

“We have always listened to the market to deliver more efficient and effective tools such as the new RS3,” says Rotech Subsea Global Head of Business Development, Stephen Cochrane. “It fluidises and excavates soils on the seabed in a controlled manner, with powerful jet trenchers allowing us to cut deep and very narrow trenches. And the new flexibility to have a twin tool set up - the TRS3 - or to pair it with other tools from our range increases productivity further.”

THREE DECADES AT THE FOREFRONT

To understand how Rotech Subsea came to be the go-to partner for trenching, excavation and IRM projects across the globe - employing in excess of 60 people - we must look back to the 1990s. Then, the first incarnation of the company took the subsea excavation sector by storm with ‘Rotech Subsea 1.0’ using a limited, but groundbreaking at the time, range of mass flow excavation tools for a variety of trenching and excavation applications in the oil & gas sector.

After a high profile sale of the company and its first generation technology, the team behind Rotech Subsea returned in 2015 after a non-compete period with a new, and better performing, range of controlled flow excavation (CFE) tools. The new RS1 and TRS1 tools were designed for specific applications, such as cable trenching, re-burial or sandwave clearance, with a focus on the renewables sector. Soon after the company launched its second generation TRS2 systems, with development efforts since focused on producing new generations of excavators with greater power, cutting capability, and controllability, to open up new opportunities.

Having now dominated the sector for the past eight years, introducing innovation after innovation - which has seen Rotech Subsea firmly established as the non-contact jet trenching and controlled flow excavation partner of choice to the renewables sector - the Aberdeen-based contractor has raised the standard again with the launch of the RS3 hybrid tool.

“When we sold our original mass flow technology in 2011 we could already see that change was on the horizon in the energy sector,” says Cochrane. “The original equipment was built for oil and gas but we could see that to be perfectly positioned to capitalise on any coming renewables boom you would need new, more precise tools.

“In 2015 - with the benefit of lessons learnt over hundreds of successful subsea projects - our R&D and engineering team began to design and purpose-build tools for renewables applications like cable trenching, which required narrower, deeper trenches to be cut in harder, deeper soils than typically experienced in the oil and gas sector. The result was our CFE RS range of jet trenching tools that we have been evolving ever since.”

INTERNATIONAL GROWTH

This relentless pursuit of innovation has seen further state-of-the-art tools developed for specific markets or sectors - such as the TRS2 Blade - which increases sandwave clearance productivity - developed for the United States renewables market - and the new RSBG Boulder Grab that is a bespoke tool for tackling debris and rock removal in Taiwan. The new Twin RSG has been custom built to carry out the retrieval of decommissioned pipelines and umbilicals, while the recently unveiled 10” Suction Dredger is designed for 160 m³/hr material removal. As a result, demand for Rotech Subsea’s specialist services are at an all-time high across multiple sectors and regions.

“As far as renewables go,” said Cochrane, “Europe has been the proving ground for our new tools. Typically, once clients see their capabilities first hand enquiries come in about work in other markets they are active in. Asia and the United States have been recent cases in point.

“In 2022 we won our first major US offshore wind farm export cable trenching contract - as well as delivering projects in the Caribbean. Breaking into the Americas with a major subsea cable installation player was a real coup for us. With the offshore wind sector in North America still in its infancy the potential for us in the region is huge.

“Asia too has been a key market for us recently,” adds Cochrane. “With multiple cable trenching and seabed levelling contracts running into 2024 in the region - predominantly in Taiwan’s offshore wind sector - we have established a new entity in the country while also being active in the Australian gas sector. And, actually, in general we have seen a huge spike in the number of enquiries from the oil and gas sector already in 2023.”

With 2022 the busiest year on record for Rotech Subsea, and with the company busy building new tools and additional equipment to meet growing demand in 2023, the year ahead is on course to be another record one.

Rotech is a technology-driven group of companies providing innovative products to the oil & gas, energy, renewables and decommissioning sectors

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Dubai Petroleum awards global logistics contract to Petrasco

A leading provider of international logistics solutions to the energy industry, Petrasco, has been awarded a key contract by Dubai Petroleum Establishment (DPE).

The multi-year agreement, worth a seven-figure sum, will see Petrasco provide global logistics support for five offshore fields, an onshore gas field, pipelines, and support services.

Work carried out in the emirate will be complemented with support from Petrasco’s other international offices in the energy hubs of Aberdeen, UK and Houston, TX. The company’s strategic partner, Middle East Tubular Services (METS), will also provide dedicated support throughout the duration of this contract.

Petrasco has operated in Dubai for almost 20 years and, following a recent restructure of its senior leadership team – which added considerable Middle Eastern experience, its management now possesses more than 90 years’ collective in-country experience.

Kevin Buchan, managing director of Petrasco, is also a member of respected international business network, GlobalScot. He commented: “We are thrilled to have secured this prestigious contract with Dubai Petroleum and look forward to developing a productive working relationship over the weeks and months ahead."

Acquires

LFH Fluid Control Ltd are delighted to announce the successful acquisition of Sabre Plant & Marine Ltd, which will continue trading under the same name, but as a subsidiary of LFH Fluid Control Limited. With both companies working in similar markets the natural synergy will support future growth and customer service across a wider range of products. The company has been relocated from its previous address at Greenwell Road, East Tullos to the LFH Main office at Castlepark Industrial Estate, Ellon. There is also further staff recruitment underway to support growth.

Developing

Polaris Learning and Praesidio were delighted to work with a team of managers from Intervention Rentals to complete the new Developing Resilience ILM Recognised three-day programme. This is the first of three programmes being run with Intervention Rentals.

This intensive programme has been designed to help managers build on their resilience so that they can cope with the unpredictability in their roles, and be in the best position to take decisive action under pressure.

Finalist Recognition As Subsea Company Of The Year

J+S Subsea are finalists in the Subsea Expo Company of the Year (under 50 employees) award. The prestigious awards ceremony, organised by the Global Underwater Hub, takes place on February 22, 2023, at P&J Live in Aberdeen. The awards celebrate the companies and individuals leading the way in the UK’s £8billion underwater industry.

Managing director Phil Reid said: “News of the award nomination rounds off a brilliant year for us. It’s been one of strong growth which relies on the dedication and expertise of our team.

Leading training provider, AIS Survivex, has reached the finals of one of the biggest and longest established awards competitions for the offshore energy sector - the SPE Offshore Achievement Awards (OAA's).

AIS Survivex, which is part of the 3t Energy Group, is one of three companies in the running for the Digital Innovation title – an important award for the offshore sector which acknowledges and celebrates the innovative digital work being done across the industry.

ModuSpec supports major drilling contractor with redeployment project

ModuSpec is delighted to announce an award to support a major European-based drilling contractor with technical advisory services.

The scope of work is to advise the drilling contractor of the feasibility of redeploying its 6th generation drillship to operate in other oil & gas basins. ModuSpec will conduct a series of discipline specific gap analyses and review compliance of the drillship to both international standards and area specific regulations.

Appointment for Semco Maritime UK

Ross Gatt has joined Semco Maritime Aberdeen to take up the position of UK Sales and Marketing Manager. Ross is an accomplished, growth-focused professional with over 15 years of business development, sales, and marketing, experience across Renewables and Oil and Gas industries. Holding the position of Group Marketing Director at Valor Energy Group for the past 5 years’, Ross has supported the Group’s development across the international Oilfield services sector and more recently the offshore wind industry. Having previously founded and grown a multimillion-pound business spanning the UK and Middle East, Ross has a proven track record of providing creative solutions to facilitate sales targets and business objectives.

Resilience

AIS Survivex named as finalists in the Offshore Achievement Awards

LFH Fluid Control Ltd

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U K NO RT H SE A Energy Review

By Tsvetana Paraskova

Scotland published in January its Draft Energy Strategy and Just Transition Plan, to consult on a draft route map of actions the government intends to take to deliver affordable, resilient and clean energy to Scotland’s workers, households, communities and businesses ”

The draft Strategy sets out key ambitions for Scotland’s energy future including more than 20 GW of additional renewable electricity onshore and offshore by 2030, an ambition for hydrogen to provide 5 GW or the equivalent of 15 percent of Scotland’s current energy needs by 2030, and 25 GW of hydrogen production capacity by 2045

The government will also target increased contributions from solar, hydro, and marine energy to Scotland’s energy mix and an accelerated decarbonisation of domestic industry, transpor t, and heat. Energy security is expected to be addressed through development of domestic resources and additional energy storage. A just transition would be achieved by maintaining or increasing employment in Scotland’s energy production sector against a decline in Nor th Sea production.

The government also said that “Unlimited extraction of fossil fuels is not consistent with our climate obligations ”

“For all these reasons, this draft Strategy and Plan suppor ts the fastest possible just transition for the oil and gas sector in order to secure a bright future for a revitalised Nor th Sea energy sector focused on renewables,” it notes.

“Whilst licensing is reserved to the UK Government, the Scottish Government is consulting on whether, in order to suppor t the fastest possible and most effective just transition, there should be a presumption against new exploration for oil and gas ”

Responding to the strategy, Offshore Energies UK said it was concerned at the plan’s suggestion of accelerating the decline in oil and gas production.

“Our industr y has pledged to work with the Scottish Government towards its target of net zero carbon emissions by 2045 So, we strongly suppor t the strategy’s commitment to develop a Scottish hydrogen economy, including the exciting ACORN project in the nor th-east,” Jenny Stanning, OEUK’s external relations director, said

Scotland’s draft energy strategy, the 33rd UK offshore oil and gas licensing round, and company drilling and activity plans were the spotlight in the UK North Sea oil and gas industry in the past month.

“However, we are concerned at the statement’s suggestion of accelerating the decline in oil and gas production ”

“Scotland

gets 79% of its total energy from oil

Across the UK about 24 million homes (85% of the total) rely on gas boilers for heat and we get 42% of our electricity from gas,” Stanning added

“The plain facts mean we will need gas and oil for years to come Additionally, in Scotland alone, the offshore industr y suppor ts 90,000 jobs Across the UK it’s around 200,000 ”

The UK’s 33rd offshore oil and gas licensing round attracted 115 bids across 258 blocks and par t-blocks, from a total of 76 companies, the Nor th Sea Transition Authority (NSTA) said The bids will now be carefully studied with a view to awarding licences quickly and suppor ting licensees to go into production as soon as appropriate There are several necessar y consents after licensing and before production to ensure these developments are also in line with net zero

The interest in the licensing round shows how UK offshore energy operators are doing their best to suppor t the nation’s energy future, Offsh Energies UK (OEUK) said

“The aim of issuing these new licences is simply to suppor t the UK while it builds the infrastructure needed for a low-carbon future As some of our older reser ves are becoming production of oil and gas and positively contribute to UK’s energy transition and energy security This is why new licences are so impor tant,” said Mark Wilson, director of HSE and operations at OEUK

The National Subsea Centre (NSC), a centre of excellence for subsea research and technology development, was opened on 11 January in Dyce, Aberdeen, by Michael Matheson, Scottish Government Cabinet Secretary for Net Zero, Energy and Transport, and UK Government Minister for Scotland, Malcolm Offord The centre explores the new technology needed by the energy industry to meet challenges of reduced emissions from operations, costeffective and resilient power grids, and the need to develop a highly skilled digital workforce

In company news, Harbour Energy – the biggest oil and gas producer in the UK Nor th Sea – said in a trading update on 19 January that its 2022 post tax earnings were impacted

(EPL) in the UK. As a result of the increase in and extension of the EPL, the revaluation deferred tax charge will be materially higher than the previously estimated $600 million charge disclosed in the 2022 Half Year Results.

Harbour Energy also reduced its total UK capital expenditure compared to previous expectations with certain opportunities no

longer being pursued following the changes to the windfall tax announced in November, including the Total-operated EIH well at Elgin Franklin and participation in the 33rd Licensing round The company launched a review of its UK organisation to align with lower future activity and investment levels in the country

“We remain committed to playing an impor tant role in the continued supply of reliable and responsible domestic oil and gas in the UK. However, while oil and gas prices have rever ted to more normal levels we still face a tax rate of 75 per cent in the UK due to the recent tax changes, making investment in the country less competitive,” CEO Linda Cook said. “As a result, the EPL necessitated a review of our future activity levels in the UK and reinforced our ambition to grow and diversify internationally ”

t ic E ne rgy said that S hel l , th e O p e ra tor of ex p l o rati o n o f the Pensa co la w ell in th e Sou the r n N o r th S ea , ha d re po r ted that g as had b ee n en cou nte red in the rese r vo i r and re comm ended to th e J o int Vent u re that a fu l l w ell testin g p rog ra mm e b e u nde r ta ken

Ithaca Energy and its artners said the results of a appraisal drilling at the Isabella discovery in the Central North Sea showed hydrocarbons were encountered Isabella lies about 25 miles south of TotalEnergies’ Operated Elgin Franklin Field Ithaca Energy and Dana Petroleum have made the decision to carr y out exploration drilling in Block 22/14c of the Central Nor th Sea – the K2 prospect Exploration drilling at the prospect is expected to commence between June and July 2023 for approximately 41 days in order to determine the presence of hydrocarbons

Kistos Holdings plc said that TotalEnergies, operator of the Benriach well west of drilled in 2023, star ting in the second quar ter This well is targeting recoverable resource of 638bcf (110MMBoe) gross with Kistos holding a 25-percent stake

Neptune Energy signed at the end of December a Memorandum of Understanding with Ørsted and Goal7 to explore powering new integrated energy hubs in the UK Nor th Sea with offshore wind-generated electricity The agreement will see the companies examine the potential to supply renewable electricity from Ørsted’s Hornsea offshore windfarm projects to power future Neptuneoperated hubs in the UK Nor th Sea

Transocean Ltd announced contract awards or Transocean Barents, a harsh environment semisubmersible, being awarded a new one-well contract with an estimated 110-day duration in the UK North Sea with a major operator Additionally, Harbour Energy exercised the third option on its UK North Sea contract with Paul B Loyd, Jr., a harsh environment semisubmersible, for eight P&A wells

Serica Energy has entered into an agreement to acquire the entire issued share capital of Tailwind Energy Investments Ltd from Tailwind Energy Holdings LLP The deal would lifting Serica into the top ten UK producers with net production expected to increase by 50-80 percent in 2023 and sustained until 2025 at above 40,000 boed, the company said. The transaction would diversify and strengthen Serica’s por tfolio by adding a new production hub in the Triton area, resulting in a balanced mix of gas and oil and an enlarged hopper of shor t cycle organic growth oppor tunities.

Aker Solutions has been awarded a contract from Altera Infrastructure for the complete upgrade of the Petrojarl Knarr vessel (FPSO) to be redeployed at Equinor ’s The selected development concept for the reuse of the existing Petrojarl Knarr FPSO owned by Altera The EPC work is planned to scheduled to be completed at the end of 2025

United Oil & Gas Plc has entered into a binding Asset Purchase Agreement with Quattro Energy Limited to sell UK Central Nor th Sea Licence P2519 containing the Maria discovery for a maximum consideration including contingent bonus payments of up to £5.7 million. The completion of the sale is subject to a number of pre-conditions, including the North Sea Transition Authority approval to the Licence acquisition and Quattro having available an amount equal to the completion payment of £2 45 million in cash

IOG plc issued an update on the Southwark stimulation of six reservoir zones, gas rates obser ved at Southwark A2 well to date have been lower than expected

“Having stimulated six discrete reser voir zones, a low gas rate and apparent formation water production at this stage of the A2 well clean-up is unexpected and disappointing,” said Dougie Scott, COO of IOG. “The production logging tool should provide impor tant gas and liquid which is likely to be to isolate water producing

THREE60 Energy with bp to provide well engineering services

Global Service Agreement, effective 1 June 2022, has already seen THREE60 Energy suppor t bp with well engineering services across the UK Nor th Sea, USA, and Trinidad. The agreement comes with the option to extend for two additional years on top of the

Crogga Limited has appointed THREE60 Energy as Contract Operator to drill the Crogga Independence appraisal well (112/25a-2) on the Crogga Gas Field in the East Irish Sea in 2023. If commercial production rates are established gas will provide energy independence and a the company said.

MarkWilson

BRENT OIL PRICES OVER THE YEARS

YEAR AGO 1

THE SOCIAL STRATEGIST

By Eric Doyle

From task-based to business risk.

In previous editions we’ve spoken about your sectors Digital Twin.

How Digital channels have opened new ways for us to grow our businesses into new markets and new locations.

We have discussed how the traditional rules of commercial engagement in this Digital Twin differ from what we’ve known and how to generate the types of results we need.

We have discussed how Social Media is the access point for your sectors Digital Twin.

Many believe that this means simply posting content on LinkedIn, but the issue is more complex and requires deeper, strategic thinking.

We use Social Media for our businesses to achieve 3 main things:

To build networks and communities: Turning connections into meaningful, supportive, and engaged sector communities. Building the Digital Twin of our sectors around us.

To gain algorithmic edge: Ensuring that our teams’ profiles, content and activity are tuned to give us the advantage over our competition.

To train the internet: When the internet is asked a question that you need to be the answer to, it offers your profiles and content as the answer.

We then use this to truly understand out markets, gain access to those markets, gain solid credibility in those markets and turn all of this into relationships that we can convert into commercial interaction.

If we want to be known for something, if we want key people to fully recognise that we understand their issues and can solve their problems, me must employ an all-encompassing Media strategy that delivers results.

…and this means a lot more that simply posting every now and then on LinkedIn. This is about achieving Digital Dominance in your sectors.

Recent studies have shown that 98% of CEOs say they need to overhaul their business model within the next three years.

This is not purely downsizing; this is a complete rewiring of the crucial elements of how we operate all aspects of our businesses.

How we prospect, how we network, how we close business, how we deliver and how we grow.

In these times of disruption, that many refer to as a ‘Polycrisis’, a collective term for interlocking and simultaneous crises of an environmental, geopolitical and economic nature, we must ensure our commercial processes are efficient and effective.

Efficient, in that all of our efforts are measurable and can be attributed to meaningful results.

Effective, delivering what we need to meet our business plans.

To get to this place, we must ask the questions and address the hard hitting business truths.

• Are we where we need to be with our media plan and activity...?

• Are we building networks and communities within our sectors?

• Does our Media activity give us algorithmic edge?

• Is our Media activity training the internet?

In 2023 we must know, without a question, not based on gut feel or ineffective data, but based on facts, that our commercial engine is driving meaningful business results.

The price of oil continued rising toward the $100 a barrel mark as more sanctions were imposed on Russia, a key energy producer, due to their ongoing invasion of Ukraine. Oil prices jumped after the US, the European Union, and the UK said they would block some Russian banks from the SWIFT messaging system, a move that would make it more difficult for countries to purchase Russian oil.

YEARS

The Energy Information Administration (EIA) reported that the US oil production reached 10.3 million barrels per day, the highest level in the country’s history and the first record since 1970.

Essar UK, one of Britain’s biggest oil refiners at the time, bought more US crude after testing it out the year prior, showing how rising output from the United States was squeezing out traditional European suppliers from the North Sea and Africa.

YEARS AGO 10

Oil majors Royal Dutch Shell and BP took the initiative in reforming the Brent crude benchmark after losing patience with the time it was taking for oil pricing agency Platts to decide changes. Shell announced it would apply a quality premium for forward contracts of BFOE – cash forward deals in Brent, Forties Oseberg and Ekofisk crude – for contracts from May onwards. BP supported the change.

- BRENT OIL PRICE 2013 - $118.29

- BRENT OIL PRICE 2018 - $64.95

- BRENT OIL PRICE 2022 - $96.18

BRENT OIL PRICE FEB 2023 - $82.17

Is your commercial engine driving the results you need now, and for the future?

Europe Energy Review

New discoveries and the investment and production activity in Norway, Germany’s new LNG import terminals, and the UK’s new offshore wind agreements and green ports have featured in Europe’s energy sector over the past month.

Oil & Gas

Investments and production offshore Norway increased in 2022 and set to keep a high level in the next few years, thanks to plans for new field developments and extension of the life of producing fields, for which operators have pledged 300 billion Norwegian crowns ($30 billion), the Norwegian Petroleum Directorate said in an annual review of the NCS activity.

“Only rarely have we seen so much oil and gas produced on the Norwegian shelf as was the case last year – and only rarely have we seen such significant investment decisions,” the regulator said.

SPONSORED BY

By Tsvetana Paraskova

Norway also awarded 47 new production licences on the Norwegian continental shelf in the licensing round APA 2022.

“Further exploration activity and new discoveries are important to maintain the production of oil and gas over time, both for Norway and Europe,” said Minister of Petroleum and Energy, Terje Aasland.

In company and new discovery news, energy group Parkmead announced the completion of drilling activities at the LDS-01 well in the Netherlands which has encountered gas columns in the primary target horizons. The well has been completed and is now ready for tie-in to production, which will follow the conclusion of the LDS-02 well.

Equinor and its partners Wintershall Dea and Petoro have made a commercial gas discovery in the Norwegian Sea. The discovery, Obelix Upflank, is estimated to hold about 12.6-69.2 million barrels of oil equivalent and was the first discovery made on the Norwegian continental shelf (NCS) in 2023. Obelix Upflank is around 23 kilometres south of the Irpa gas discovery, and 350 kilometres west of Sandnessjøen.

“We will together with our partners consider tie-back of this discovery to Irpa, for which we recently submitted a plan for development and operation,” says Grete B. Haaland, Equinor’s senior vice president for Exploration and Production North.

ENGINEERED TO TRUST

At Brimmond we specialise in the design, manufacture, rental and repair of lifting, mechanical and hydraulic equipment for industry, from our base in Aberdeenshire, Scotland.

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Following a major upgrade of the platform and the floating storage and offloading vessel, Equinor and its partners are now ready to produce oil and gas from the Njord field in the Norwegian Sea for another 20 years, after the field resumed operations at the end of December.

Vår Energi has announced a new gas discovery in the Barents Sea offshore Norway. The discovery is preliminarily evaluated at 57-132 million barrels of oil equivalent and has the potential to contribute to the future gas supply from the Barents Sea. The first LNG cargo arrived in early January at Germany’s LNG new terminal in Wilhelmshaven which was inaugurated at the end of December.

Later in January, TotalEnergies announced the start-up of the Deutsche Ostsee LNG import terminal in Lubmin on the German Baltic Sea coast. This project, to which TotalEnergies is contributing a floating storage and regasification unit (FSRU) and supplying LNG, will make the company one of Germany’s main LNG suppliers, the French supermajor said.

Höegh LNG signed in mid-January the second binding 10-year Time Charter Contract with Germany for the FSRU Hoegh Gannet, which will be located at the Elbehafen LNG project in Brunsbüttel operated by Deutsche Energy Terminal GmbH.

U.S.-based Excelerate Energy delivered its FSRU the Exemplar at the port of Inkoo, Finland, at the end of December. The FSRU Exemplar, which is chartered to Gasgrid Finland for ten years, will provide flexible, reliable, and secure delivery of regasified LNG to Finland and other Baltic countries, Excelerate Energy said.

By Tsvetana Paraskova

Low-Carbon Energy

The Crown Estate said in January it had signed Agreements for Lease for six offshore wind projects which could begin to generate green electricity by the end of the decade and have the potential to generate around 8 gigawatts (GW) of electricity, enough for more than seven million homes. Three of the six projects are located off the North Wales, Cumbria and Lancashire coast, and three are located in the North Sea off the Yorkshire and Lincolnshire coast. The agreements are the culmination of The Crown Estate’s Offshore Wind Leasing Round 4, adding further strength to the offshore wind sector’s track record in leading the UK's net zero energy transition, the Crown Estate said.

RenewableUK’s CEO Dan McGrail commented, “This announcement represents a major step forward not just for these major offshore wind projects but also for the industry as a whole, as these lease agreements will strengthen our energy security, create jobs and support development of new UK supply chains.”

Inverness and Cromarty Firth Green Freeport and Forth Green Freeport have been jointly selected by the Scottish and UK governments to become Scotland’s first Green Freeports. The two winning bids will be supported by up to £52 million in start-up funding and will benefit from tax reliefs and other incentives through a combination of devolved and reserved powers, the Scottish government said.

“Scotland has a rich history of innovation, trade and manufacturing and as we look to seize the many opportunities achieving net zero offers, the creation of these internationally competitive clusters of excellence will help us to create new green jobs, deliver a just transition and support our economic transformation,” Deputy First Minister John Swinney said.

The UK set a new record of wind energy generation on 30 December, a third record-high in a year, RenewableUK said.

“Wind is now the UK's cheapest source of new power, so every unit of electricity we generate from it helps consumers by reducing our reliance on expensive gas imports. Investing in more wind and other renewables is vital in tackling the cost of living crisis for hard-pressed bill payers,” RenewableUK’s McGrail said.

The new MAXBlade project – funded by the European Union and UK Research and Innovation – will look to develop the world’s largest tidal turbine blades, aiming to ensure the European composite sector becomes the international leader in tidal blade manufacture. The project plans to increase the area harnessed by Scottish tidal technology company Orbital Marine Power to generate power – known as the rotor swept area – by 70%, to more than 1,000 square metres.

"This announcement represents a major step forward not just for these major offshore wind projects but also for the industry as a whole, as these lease agreements will strengthen our energy security, create jobs and support development of new UK supply chains."

Marine Scotland has awarded the European Marine Energy Centre (EMEC) with section 36 consent for its grid-connected Billia Croo wave test site off the west coast of Orkney, Scotland. Technologies over 1 MW can now demonstrate at the Billia Croo test site without having to apply for individual section 36 consents. This streamlines the consenting process for EMEC’s clients, reducing the time and cost associated with offshore demonstration.

The share of renewable energy in total German power generation jumped in 2022 to 48.3%, from 42.7 % in 2021, thanks to a surge in onshore wind power generation, the German Federal Network Agency, Bundesnetzagentur, said in early January.

In Germany, bp announced plans to evaluate expansion of Germany’s green energy port with a new hydrogen hub. bp plans to evaluate the construction of an industrial-scale ammonia cracker and utilise repurposed oil/gas facilities to transport hydrogen at the new project, which would be located in Wilhelmshaven. The project is expected to include an ammonia cracker which could provide up to 130,000 tonnes of low-carbon hydrogen from green ammonia, per year, from 2028.

Norway’s Equinor and German energy major RWE have agreed to work together to develop largescale value chains for low carbon hydrogen. The partners aim to replace coal-fired power plants with hydrogen-ready gas fired power plants in Germany, and to build production of low carbon and renewable hydrogen in Norway that will be exported through pipeline to Germany.

Also in Germany, RWE has signed power purchase agreements (PPAs) for some 1,500 gigawatt hours (GWh) per year with eleven industrial customers and one large municipal utility. RWE’s Nordsee Ost and Amrumbank West offshore wind farms will supply those customers with green electricity starting in 2025.

“Scotland has a rich history of innovation, trade and manufacturing and as we look to seize the many opportunities achieving net zero offers, the creation of these internationally competitive clusters of excellence will help us to create new green jobs, deliver a just transition and support our economic transformation,”

H2Carrier AS and Greenland-based company

Anori A/S have signed a Letter of Intent to develop the first commercial wind farm in Greenland with subsequent production and export of green ammonia. The wind farm is projected to comprise 1.5 GW renewable energy which will supply power to H2Carrier’s floating production vessel for hydrogen and green ammonia.

Horisont Energi has entered into an option agreement on the location of an onshore terminal for the Errai carbon capture and storage (CCS) project in Norway. The receiving terminal for intermediate onshore storage of CO2 will be located in Gismarvik on the west coast of Norway. From there, carbon would be transported through pipeline to the North Sea, where it would be injected and permanently stored in an offshore reservoir. Errai is a key contributor to the goal of Neptune Energy – the other partner in the project – of storing more than carbon is emitted from the production and use of its sold products by 2023.

“We look forward to leveraging both our oil and gas operations capabilities as well as our significant global experience from operating carbon capture and storage activities,” said Neptune Energy’s Managing Director for Norway and the UK, Odin Estensen.

RenewableUK's CEO Dan McGrail said

Deputy First Minister John Swinney said

ENERGY REVIEW US

By Tsvetana Paraskova

By Tsvetana Paraskova

Cost increases have somewhat moderated, the Dallas Fed Energy Survey for the fourth quarter of 2022 showed, while the American Petroleum Institute (API) renewed its calls on the Biden Administration to remove the obstacles to US energy production growth.

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US Oil & Gas Production Rises But Uncertainty Also Increases

Activity in the oil and gas sector in Texas, northern Louisiana, and southern New Mexico continued rising in the fourth quarter of 2022, according to oil and gas executives responding to the Dallas Fed Energy Survey.

The business activity index—the survey’s broadest measure of conditions facing Eleventh District energy firms—remained positive but fell to 30.3 in the fourth quarter from 46.0 in Q3, suggesting the pace of expansion decelerated but remained solid as the business activity index stayed above the series average.

Oil and natural gas production increased at a slightly slower pace compared with the prior

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quarter, executives at exploration and production (E&P) firms said. Cost inflation was reported by most firms for an eighth quarter in a row, but the rate of the cost increases has slowed, according to the survey.

Supply-chain bottlenecks, however, persist and it is taking longer for firms to receive materials and equipment, although the pace at which those delays are growing has moderated. All labour market indexes in the fourth quarter remained elevated, pointing to strong growth in employment, hours, and wages.

But optimism waned in Q4 as uncertainty increased, the survey found. The overall outlook uncertainty index increased to 40.1 from 35.7, suggesting growing uncertainty, especially among E&P firms, 53 percent of which reported an increase in uncertainty.

US oil and gas production continues to expand, but at a much slower pace than in previous years, as supplychain delays and labour shortages persist.

MIDDLE EAST Energy Review

By Tsvetana Paraskova

Saudi Arabia reduced in early January the price of its crude oil going to Asia and Europe in February, expecting still weak demand, but signs started to emerge later in January that oil consumption in China could be set to rebound in the coming months, OPEC and the Saudi state oil giant Aramco said.

In addition, OPEC left its 2023 global oil demand forecast unchanged, but noted that now it expects better performance in China’s economy after its reopening from COVID-19 restrictions and slightly better economic performance in the Eurozone and the United States.

OPEC More Upbeat on Global Economy and Oil Demand

OPEC sounded a more upbeat tone on the prospects of the global economy and oil demand growth this year, following betterthan-expected data for the fourth quarter of 2022. The forecasts in OPEC’s Monthly Oil Market Report (MOMR) published in the

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middle of January were for slightly higher economic growth in major economies. The forecast for global oil demand growth in 2023 was left unchanged from the previous month’s assessment at 2.2 million barrels per day (bpd), with the OECD increasing by 300,000 bpd and non-OECD growth at 1.9 million bpd. Minor upward adjustments were made due to the expected better performance in China’s economy on the back of its reopening from the ‘zero COVID’ policy, OPEC said.

“The global momentum in 4Q22 appears stronger than previously expected, potentially providing a sound base for the year 2023, especially in the OECD economies. The 2022 growth in both Euro-zone and US has surpassed previous forecasts,” the organisation noted.

China’s latest efforts to reopen the economy and support the property sector have improved the prospects for a rebound in 2023 economic growth after the end of the ‘zero COVID’ policy, while India is likely to weather the current global economic issues relatively well in 2023, following strong growth in 2022, according to OPEC.

Moreover, additional impetus to the economy could come from the US Fed managing a soft landing for the American economy, the cartel said.

“Upside potential may come from the US Federal Reserve successfully managing a soft landing in the US. This is the most likely outcome, given the expected slowdown in inflation and the sufficient underlying demand dynamic. An even strongerthan-anticipated rebound in China is another possibility as well.”

Oil demand in China, the world’s top crude oil importer and a major customer of OPEC’s Middle Eastern heavyweights, “is on course to rebound” after the easing of the COVID restrictions, with the country’s GDP projected to grow by 4.8% in 2023.

“In addition, China’s plans to expand fiscal spending to aid the economic recovery is likely to support oil demand in manufacturing, construction and mobility,” OPEC said.

“The manufacturing sector is expected to start recovering relatively quickly, and the aviation sector is expected to see significant increases in both local and international travel given pent-up demand. Furthermore, the performance of the resilient petrochemical sector is also projected to improve further.”

Manufacturing and construction activity are set to accelerate in the second quarter of the year, and requirements for the petrochemical industry are also expected to expand. This would boost demand and output for middle and light

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distillate products. Accordingly, China’s oil demand is projected to accelerate further to reach year-onyear growth of 800,000 bpd, said OPEC.

Chinese Reopening Could Be Major Boost To Oil Demand

OPEC Secretary General Haitham Al-Ghais also expressed cautious optimism about an economic and oil demand recovery in an interview with Bloomberg in mid-January.

“We are optimistic, but we are cautiously optimistic,” Al-Ghais said.

“We’re seeing signs of green” as China is easing the Covid measures, OPEC’s Secretary General told Bloomberg.

Saudi Aramco, the Saudi state oil giant and the biggest oil firm and exporter in the world, also expects the Chinese reopening to result in a rebound in global oil demand in 2023, Aramco’s chief executive Amin Nasser told Bloomberg on the sidelines of the World Economic Forum in Davos.

“We are very optimistic in terms of demand coming back to the market,” Nasser said, adding – referring to China – “Hopefully, in the next couple of months, we’ll see more of a pickup in the economy there.”

Deals & Investments

While the Middle Eastern firms prepare for a rebound in Chinese oil demand this year, they have also recently signed major deals for investments, including in low-carbon solutions.

In the United Arab Emirates (UAE), Abu Dhabi National Oil Company (ADNOC) and Mubadala Investment Company announced at the end of December a transaction involving Austria-based energy and chemicals group OMV AG. Under the agreement, ADNOC will acquire a 24.9% shareholding in OMV from Mubadala. Financial details of the transaction were not disclosed.

ADNOC also allocated $15 billion to advance lowcarbon projects across its diversified value chain by 2030. The projects will include investments in clean power, carbon capture and storage (CCS), further electrification of ADNOC’s operations, energy efficiency, and new measures to build on ADNOC’s policy of zero routine gas flaring. The announcement follows the guidance by ADNOC’s Board of Directors in November 2022 to accelerate delivery of its low-carbon growth strategy and the approval of its Net Zero by 2050 ambition.

“Now, more than ever, the world needs a practical and responsible approach to the energy transition that is both pro-growth and pro-climate, and ADNOC is delivering tangible actions in support of both these goals,” said Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO.

ADNOC announced the setting-up of ADNOC Gas, effective 1 January 2023, its new worldscale gas processing, operations and marketing company. The company combines the operations, maintenance, and marketing of the ADNOC Gas

ADNOC will acquire a 24.9% shareholding in OMV from Mubadala. Financial details of the transaction were not disclosed.

ADNOC also allocated $15 billion to advance low-carbon projects across its diversified value chain by 2030.

MIDDLE EAST

Processing and ADNOC LNG businesses into one global consolidated business.

ADNOC has also entered into a partnership with the Fujairah Natural Resources Corporation (FNRC), Abu Dhabi Future Energy Company (Masdar), and 44.01 to pilot technology that permanently mineralises carbon dioxide (CO2) within rock formations found in the Emirate of Fujairah. The project, beginning in January 2023, will use 44.01’s Earthshot prize-winning Carbon Capture and Mineralisation (CCM) technology to eliminate CO2 from the atmosphere. It will be the first CCM project by an energy company in the Middle East.

Abu Dhabi Chemicals Derivatives Company RSC Ltd (TAZIZ) signed a shareholder agreement with Fertiglobe, GS Energy Corporation, and Mitsui & Co., Ltd., to develop an anticipated 1 million tonnes per annum low-carbon ammonia production facility at the TA’ZIZ Industrial Chemicals Zone. This is a further step in the project’s journey towards a final investment decision (FID).

Finally, ADNOC started in January work on the world’s first fully sequestered CO2 injection well in a carbonate saline aquifer. The project, expected to begin injecting CO2 in Q2 2023, marks another step in ADNOC’s commitment to decarbonise its operations, reduce its carbon intensity by 25% by 2030, and deliver on its Net Zero by 2050 ambition.

In Kuwait, Paris-listed Technip Energies has been awarded a large contract for Project Management Consultancy (PMC) by Kuwait Oil Company (KOC).

A “large” award for Technip Energies is a contract award representing between €250 million and €500 million of revenue.

The five-year framework agreement contract covers front-end engineering design (FEED), project management, and associated services for KOC’s major projects. This contract represents a renewal of the first five-year framework agreement that was awarded to Technip Energies by KOC in 2014.

Abu Dhabi Chemicals Derivatives Company RSC Ltd (TAZIZ) signed a shareholder agreement with Fertiglobe, GS Energy Corporation, and Mitsui & Co., Ltd., to develop an anticipated 1 million tonnes per annum low-carbon ammonia production facility at the TA’ZIZ Industrial Chemicals Zone.

Qatar’s state firm QatarEnergy announced in early January the Final Investment Decision (FID) with Chevron Phillips Chemical Company LLC (CPChem) to build the Ras Laffan Petrochemicals complex - a $6 billion integrated olefins and polyethylene facility at Ras Laffan Industrial City.

The Ras Laffan Petrochemicals complex, expected to begin production in 2026, consists of an ethane cracker with a capacity of 2.1 million tons of ethylene per annum, making it the largest in the Middle East and one of the largest in the world.

“This marks QatarEnergy’s largest investment ever in Qatar’s petrochemicals sector and the first direct investment in 12 years,” said Saad Sherida AlKaabi, the Minister of State for Energy Affairs and President and CEO of QatarEnergy.

The call for tenders to secure the drilling rig has been launched and should lead to a selection of the rig in the first quarter of 2023. Pre-orders have also been placed with suppliers for equipment required for the well, TotalEnergies said.

ENERGY PROJECTS MAP

EGYPT East Damanhour Exploration Block

Wintershall Dea

$100 million

Wintershell Dea and its partners, Cheiron Energy and INA have made a discovery of natural gas in the East Damanhour exploration block with the drilling of the ED-2X well. Wintershell Dea will evaluate the possibility of a tieback development to the existing infrastructures at the Disouq gas project.

The Lime Rock and Venice are two deep-water discoveries that were made in late 2022. The two wells, will be tied-back to the nearby Ram Powell platform. The Lime Rock well has logged over 78 feet of hydrocarbon pay, while the Venice well has logged over 72 feet. They are located 14km and 9km away from the Ram Powell platform, respectively, in the US Gulf of Mexico. The gross production is expected to reach between 15,000 and 20,000 barrels of oil per day.

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BRAZIL

Buzios Oil Field (Phase 10 –P82 FPSO)

Petrobras

$4.5 billion

Cosco Shipping Heavy Industry has been awarded an EPC contract associated with the production unit's hull and living quarters. The work will be executed at Cosco's yard in Qidong and is expected to be completed in late 2024. After completion, the elements will be transferred to Singapore, where topsides integration will take place.

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.

NORWAY Dvalin Nord Gas, Condensate and Oil Discovery

Wintershall Dea

$823 million

TechnipFMC has been awarded an EPCI contract for Dvalin North. The scope of work encompasses the design, engineering, fabrication, and installation of pipe for the Dvalin North field, which will be tied back to the Heidrun Platform through the existing Dvalin field. The contract's value ranges from $75 million to $250 million. Aker Solutions has been awarded the contract the supply of subsea production system that includes three horizontal subsea trees and control systems, a four-slot steel subsea template with an integrated manifold system, three wellhead systems and associated tie-in and installation work.

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.

GUYANA

Uaru Oil Field

ExxonMobil

$12.5 billion

Saipame has been awarded the EPC contract for the design, fabrication and installation of the project's SURF equipment. The contractor will deploy its FDS2 and Constellation vessels for the contract. Detailed engineering and procurement will start once the project achieves FID. Uaru is expected to feature 38-63 development wells and an FPSO capable of processing up to 263,000b/d and storing two million barrels of crude.

INDONESIA Hidayah Oil Discovery

Petronas

$100 million

SKK Migas stated that the government has approved the project's first plan of development (POD). the project's production facility construction activities can be carried out immediately. It is expected that the project is targeted to start producing in early 2027 with an estimated production level at around 8,973 b/d.

TURKEY Caycuma-1 Gas Discovery

TPAO

$500 million

A new gas discovery has been made through the drilling of the Caycuma-1 field. The gas resource was discovered by the drillship Fatih, in the water depths of approximately 2,000 metres at the Caycuma-1 block. The discovery, which is understood to have 2Tcf of reserves, is planned to be connected to the Sakarya field.

MALAYSIA

ISRAEL Tamar Gas Field –Expansion Project (Phase 1)

Chevron

$673 million

Chevron and its partners have made a final investment decision on the project. The project will see the laying of a 150km pipeline laid from the Tamar field to the Tamar A platform. Work on the pipeline is expected to be completed in early 2025.

CHILE Vientos Magallanicos Green Hydrogen Plant

RWE Renewables

$7 billion

Development of a green hydrogen plant in the Magallanes region, Chile. The site will have an electrolysis capacity of 835MW and it's expected to produce up to 475,000 tonnes of ammonia per year. The power will come from a 1GW wind farm. Still in the early stages of development, the operator expects the project to start operations by 2030.

CANADA Pathways Alliance CCS Project

Pathways Alliance

$16.5 billion

Pathways Alliance, a JV which comprises CNR, Cenovus Energy, ConocoPhillips, Imperial Oil, MEG Energy and Suncor, has announced the development of a carbon capture and storage project in Alberta that will capture CO2 from up to 20 oil sands facilities in Fort McMurray, Christina Lake and Cold Lake to a carbon’s storage hub near Cold Lake. CO2 will be transported via a 400km and stored in a saline aquifer.

Block

SK410B – Paprika Gas Discovery

PTTEP

$200 million

Discovery of a new sweet gas field in Block SK410B, in shallow waters about approximately 90 kilometres off the coast of Miri, Sarawak, Malaysia. The Paprika wildcat was drilled to a total depth of 3,348 metres and encountered gas pay in clastic reservoirs. This field could potentially be developed as a cluster development (potentially known as the ’Northern Sarawak Clastic Hub’) alongside other finds in this area. The discovery is located close to the Nangka gas discovery.

SWEDEN

Ornskoldsvik Power-toFuel Project

Orsted

$250 million

Ørsted has completed the acquisition of remaining 55% stake in the project from Liquid Wind AB and made a final investment decision on the e-methanol project. The e-methanol facility is targeted to be operational in 2025, with an output around 50,000 tonnes of e-methanol per year. The site is located on the grounds of Ovik Energi's biomass-fired CHP Horneborgsverket in Ornskoldsvik.

GLOBAL SUBSEA SECTOR SET FOR COMEBACK

By Tsvetana Paraskova

The subsea sector is set to benefit from highimpact exploration in South America, the Gulf of Mexico, emerging plays offshore Namibia, and in the Eastern Mediterranean. In Europe, Norway is starting up new oil and gas fields and awards exploration licences that could lead to more discovered resources and to keeping a high gas and oil production on the Norwegian Continental Shelf (NCS) in the coming years, helping Europe replace part of the Russian energy imports it has lost in the past year.

Moreover, global deepwater oil and gas production is expected to jump this decade, bringing more opportunities to the subsea industry to help keep reliable sources of supplies in a world where energy security is now the top priority of energy-importing nations.

In the UK, the offshore industry has warned repeatedly that the hike in the windfall tax on North Sea operators – with total taxes on UK oil and gas production now at 75% – risks

undermining future investment in the area. This would threaten to drive out investors, drive up UK’s oil and gas imports, and leave consumers increasingly exposed to global shortages, industry body Offshore Energies UK says.

Africa, Americas To Lead Subsea Tree Orders Through 2027

Subsea tree orders jumped in 2022 compared to the previous year, and project sanctioning activities in Africa and the Americas will lead global subsea tree demand over the next five years, Westwood Global Energy Group said in a monthly update in early January 2023.

Subsea tree contract awards in the fourth quarter of 2022 closed at 81 units, driven by the sanctioning of Aker BP’s Yggdrasil, Valhall PWP-Fenris, and Skarv Satellite projects. This brings 2022 total subsea tree orders to close at 294 units, a 79% increase compared to 2021, Westwood said.

The surge in oil and gas prices have not led to a jump in investments in offshore exploration and drilling in recent months. Yet, operators are now more confident of supplying the oil and gas resources the world needs in the aftermath of the Russian invasion of Ukraine and the change in global oil and gas trade flows it brought.

Major subsea tree contract awards anticipated in the first quarter of 2023 include Azule Energy’s Agogo development in Angola, Eni’s Baliene Phase II project off the Ivory Coast, and Petrobras’ SEAP development offshore Brazil.

“Our full-year 2023-2027 subsea tree demand outlook is forecast at approximately 1,310 units, with sanctioning activities in Africa and the Americas expected to account for over 66% of forecast demand,” Mark Adeosun, Director, SubseaLogix at Westwood, wrote.

Per Westwood’s base case, Petrobras will lead the subsea tree awards between 2023 and 2027 with expected 218 units, followed by ExxonMobil with 187, Equinor with 122, Woodside, and TotalEnergies. China’s CNOOC, Shell, Chevron, and BP follow in the list of operators expected to award the most subsea tree contracts through 2027.

High-Impact Drilling Improves Performance in 2022

In exploration, high-impact drilling in 2022 remained stable and improved performance and success rates despite a turbulent year for the energy markets, Westwood said in an insight in January 2023.

Discovered resources rose from 7.4 billion boe in 2021 to a preliminary estimate of 9.2 billion boe in 2022, and the commercial success rate increased from 29% in 2021 to 36% last year.

The number of high impact wells to be drilled in 2023 will likely be in line with the 2020-2022 trend, according to Westwood.

In 2023, South America will continue to be a key region for high impact exploration, particularly in the Suriname-Guyana Basin and offshore Brazil, while Argentina will see its first ever deepwater well drilled in 2023.

Drilling in North America is expected to rebound this year following a quiet 2022 when only nine high impact wells completed. This will include more than five high impact wells in the US Gulf of Mexico, further commitment wells offshore Mexico, and a key frontier basin test in the Orphan Basin offshore Canada.

Africa – with Namibia and frontier tests offshore Morocco, Gabon, and Mozambique – is also expected to be a top region for high impact exploration, as well as the Eastern Mediterranean, Westwood noted.

In the Eastern Mediterranean, Eni already announced in mid-January a significant new gas discovery at the Nargis-1 exploration well in Nargis Offshore Area Concession offshore Egypt.

Norway Looks To Develop More Resources While Uncertainty Rises for UK

In Europe, the two biggest oil and gas producers seem to be going in different directions. While operators offshore Norway continue to invest and approve new developments, UK North Sea operators are hesitant to invest and are scaling back commitments and evaluating each project, after the windfall tax on the profits of the companies was introduced in May and later raised to 35% in November.

In early January 2023, Norway’s Ministry of Petroleum and Energy offered 47 new production licenses on the Norwegian continental shelf in the licensing round APA 2022, of which 29 in the North Sea, 16 in the Norwegian Sea, and 2 in the Barents Sea.

“The annual allocation of exploration area is a pillar in facilitating a stable level of activity on the Norwegian continental shelf and in achieving the main goals of the government's petroleum policy. The petroleum sector is a highly productive industry that contributes large revenues, value creation and employment,” the Minister of Petroleum and Energy, Terje Aasland, said.

Norway is also expected to continue to pump the current high volumes of natural gas for at least another five years as operators have pledged around $30 billion (300 billion Norwegian crowns) to develop new fields and extend the lifetimes of producing fields, the Norwegian Petroleum Directorate said in January.

“Only rarely have we seen so much oil and gas produced on the Norwegian shelf as was the

case last year – and only rarely have we seen such significant investment decisions,” the regulator said in an annual overview of the activity on the Norwegian Continental Shelf. At the same time, operators in the UK North Sea have criticised the Energy Profits Levy –the so-called windfall tax. The tax changes threaten the long-term investment in the UK North Sea and consumers’ energy security, Offshore Energies UK warns.

“The tax changes would impact not just North Sea operators but the hundreds of other companies in their supply chains, operating in towns and cities across the UK. Many provide specialised services such as marine engineering, deep sea diving or subsea communications, and will face cutbacks or being driven abroad if investment declines,” OEUK said.

“No industry can invest or plan without knowing what kinds of tax regime will be in place. We want to work with the government to build a long-term tax regime that will let us play a full role in the energy transition,” the then OEUK’s chief executive, Deirdre Michie, said in November after the Chancellor of the Exchequer Jeremy Hunt announced the hike in the windfall tax.

Despite the fact that new investment allowances in the Energy Profits Levy offering 85% tax relief should stimulate activity, “Willing explorers are thin on the ground,” Wood Mackenzie said in November.

“Most companies that could take full advantage of the EPL allowances have shown little appetite to explore. IOCs have retreated, hastened by high political risk as new projects come under increased scrutiny. Drilling activity is at historic lows,” wrote Neivan Boroujerdi, Director, Research, Upstream Oil and Gas, and Glenn Morrall, Research Analyst, North Sea Upstream, at WoodMac.

Globally, deepwater oil and gas production is expected to increase by 60% by the end of this decade, Wood Mackenzie said in a report at the end of 2022.

“Deepwater is the fastest growing upstream oil and gas resource theme,” WoodMac said, noting that production jumped to 10.4 million boed in 2022, from just 300,000 boed in 1990. By the end of the decade, production is expected to top 17 million boed. The share of deepwater production of overall upstream production is set to increase from 6% now to 8% in 2030, with Brazil and Guyana leading the way, according to Wood Mackenzie.

Cost inflation and constraints in equipment and services availability could be a concern about project economics, the energy consultancy said. Still, the fastest growing resource theme in the industry has inherent emissions advantages for the sector, it noted.

NATIONAL SUBSEA CENTRE OFFICIALLY OPENED IN ABERDEEN

The National Subsea Centre (NSC), a centre of excellence for subsea research and technology development, has been officially opened in Dyce, Aberdeen by Michael Matheson, Scottish Government Cabinet Secretary for Net Zero, Energy and Transport and UK Government Minister for Scotland, Malcolm Offord.

The ministers joined industry and civic leaders to celebrate the launch of the multi-millionpound centre delivered through a partnership between Robert Gordon University (RGU) and Net Zero Technology Centre (NZTC), as part of the Aberdeen City Region Deal (ACRD).

The National Subsea Centre was established to provide advanced research to accelerate the transition to net zero. Driven by key industry challenges and the development of challenge-led research, the NSC focuses on three strategic research programmes: Transparent Ocean, Integrated Energy and Marine Operations. Each programme is delivered through interdisciplinary research projects in the fields of subsea engineering, artificial intelligence, data science, and integrated energy.

The centre explores the new technology needed by the energy industry to meet challenges of reduced emissions from operations, cost-effective and resilient power grids and the need to develop a highly skilled digital workforce.

The NSC is currently working with NZTC on a number of innovative projects, including the ‘SeaSense’ project which will develop technology that allows Remotely Operated Vehicles (ROV) to function in harsh, visually compromised environments. The two centres are also collaborating on the NZTC’s ‘Data for Net Zero (D4NZ)’ project which will deliver the world’s first Smart Energy Basin by utilising an integrated suite of data science, visualisation and modelling tools.

Professor John McCall, NSC Director, said: “We’re delighted to have welcomed our partners and key stakeholders to the official inauguration of the centre today to showcase the hugely impactful research our teams are doing.

“We already have an embedded culture of enthusiasm and curiosity at the centre, and we use this to drive the development of smart digital and engineering technologies to enable a faster, more cost-effective and sustainable transition to a net zero energy basin, both locally in the North Sea, and globally in other offshore energy environments.”

Professor Steve Olivier, Principal and ViceChancellor of Robert Gordon University, said: "I am delighted that the University has officially launched the National Subsea Centre with our partners at the Net Zero Technology Centre. The NSC is a major element of the University’s strategic approach to strengthening the excellence of its research base.

"The NSC has a major contribution to make to accelerating the transition to decarbonised energy through innovative research in the subsea environment. Partnership underpins how the NSC is working, particularly its crucial role in bringing together industry and academia. The research being carried out here, supported by our government partners, will have a far-reaching impact regionally, nationally and internationally as we plot a course towards a sustainable energy future."

Colette Cohen, CEO of the Net Zero Technology Centre, added: “We are delighted to be working in partnership with Robert Gordon University to establish the National Subsea Centre. This collaboration reinforces Aberdeen’s position as a leader in subsea and will accelerate the research into and deployment of new technologies to tackle subsea engineering challenges, moving Scotland and our sector closer towards its net zero targets.”

Michael Matheson MSP, Cabinet Secretary for Net Zero, Energy and Transport, commented: “In publishing our draft Energy Strategy and Just Transition Plan this week, we have set out a vision for our energy sector in a net zero Scotland. We have put the Aberdeen region at the heart of this transition, ensuring it is just and fair, and makes

the most of the skills and experience that have been built over the past five decades.

“The National Subsea Centre can be a tremendous asset to make this vision a reality. It is also another important milestone in the Aberdeen City Region Deal, embodying the collaborative ethos required both to successfully deliver our National Strategy for Economic Transformation and deliver a just transition to net zero.”

UK Government Minister for Scotland, Malcolm Offord, said: "The North East of Scotland has a wealth of skills and infrastructure and with investment in new technologies it will lead the transition to the secure, sustainable net-zero energy industry our country needs.

"This fantastic new facility will undertake important research on the subsea technologies that underpin so much of our offshore energy potential.

"The UK Government is supporting the National Subsea Centre through our combined investment with the Scottish Government of £180million in the Net Zero Technology Centre, and the regional economy through our North Sea Transition Deal."

O ILFIELD INST R UMEN TAT IO N & C O NT RO L SYSTEM S

RIG MONIT O RING SYSTE M

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HAZARDOUS AREA SOLAR SOLUTIONS

SUBSEA

SUBSEA SECTOR IN TRANSITION AS OFFSHORE WIND OPPORTUNITY STRENGTHENS

Ahead of Subsea Expo later this month, Neil Gordon, Chief Executive of Global Underwater Hub, looks at the subsea market outlook for 2023.

North America remains a major player in conventional offshore oil and gas, with operations in offshore Gulf of Mexico vital to retaining energy security. Activity is expected to pick up following a raft of announcements from majors and independents, with near-term operations at Kosmos Winterfell, tie-back options to Talos Ram Powell field and bp Atlantis, Mad-Dog 2 and Thunder Horse developments ensuring and increasing production.

While the Biden administration’s Inflation Reduction Act concentrates on clean energy, it also spurs future oil and gas activity which will help the sector remain buoyant. The Act aims to accelerate hydrogen and CCS projects in tandem and should stimulate further developments, including the offshore Bayou Bend CCS project.

In Canada, Equinor looks set to launch key contractor processes to unlock its Bay du Nord development.

Asia-Pacific

In tandem with the wider energy industry, the traditional subsea sector is in transition. It is an evolution that has been taking place for many years as companies identified opportunities to apply their technology, knowledge and skills in other sectors beyond just oil and gas.

Global Underwater Hub has seen, and continues to see, this evolution as members increase their work in other underwater sectors, including offshore wind, marine renewables, defence and aquaculture. This not only demonstrates how the supply chain is supporting the energy transition, but how companies are diversifying and remaining agile to new opportunities.

The UK-based energy industry and its associated supply chain have, for decades, provided a substantial contribution in supporting the development of energy exploration and production around the world. That expertise and reputation continues to be trusted internationally today.

Global Underwater Hub has hosted a number of international trade delegations in recent months, including from Estonia and Barbados, who are keen to learn from the UK underwater supply chain and build connections with these companies. As the UK continues on its path to net-zero, while ensuring the security of supply, we anticipate many more such visits.

The year ahead: a global perspective

Analysis by Global Underwater Hub’s SubseaIntel team notes that the global energy mix, transition, supply and security balance presents a different picture region by region. The maturity of conventional reserves and basins, together with the state of progress or aspirations for transition and net-zero targets,

can drive significantly different opportunities and near-term outlooks. The data shows that the subsea sector is evolving around the world.

North America

The United States has taken an aggressive approach to offshore wind. It announced one of the largest gigawatts ambitions – 30GW by 2030 – and aims to achieve this through lease awards (18GW) and area calls (21GW).

To date, most offshore wind development has focused on the east coast, including Vineyard Wind and Sunrise Wind. In late 2022, following the New York Bight record-breaking licences, California announced the awards in its much anticipated first leasing round, with the projects expected to be floating rather than fixed solutions.

Opportunities at either end of the conventional energy life cycle abound in Asia as the region looks to secure energy provision by developing its vast oil and gas reserves. At the same time, it is seeking to introduce guidelines for decommissioning existing structures, bringing it more in line with more mature basins such as the North Sea.

The Sarawak and Sabah regions of Malaysia are expected to see increased development as major projects including Rosmai-Marjoram and Gumusut-Kakap-Geronggong-Jagus East (GKGJE) progress. While expanding oil and gas activities, many countries in the region have been keen to tie these into net-zero commitments, seeking to abate the high CO2 output of gas development with integrated

Neil Gordon, Chief Executive of Global Underwater Hub

Many Asian countries have taken strong positions with regard to offshore wind. A combination of coastal conditions, a strong background in incremental technological improvements and an appetite to collaborate with experienced international players, creates an environment where floating offshore wind, in particular, could accelerate at pace. This produces a compelling opportunity for supply chain companies that have gained experience from early projects in Europe to look to the region.

Australia also recently announced plans to develop six priority regions for offshore wind, beginning with the Gippsland Basin which is already the proposed home to the Star of the South 2GW project. This comes in addition to what is expected to be an increase in domestic offshore gas projects.

South America

Brazil’s vast deepwater oil reserves in the prolific Santos and Campos basins, supported by recent sustained exploration success offshore Guyana, have long characterised South America’s offshore energy position. Although an oil and gas focus continues, plans for offshore renewable energy generation in Brazil and Colombia are advancing.

The two nations are expected to finalise their positions and the contracting environment for offshore wind concessions in the near future, including any available subsidies and the auctions of the fist offshore leases. Outline plans suggest that Brazil alone could develop upwards of 106GW of wind power.

In the traditional offshore oil and gas market, Brazil began 2023 with approval of TotalEnergies Lapa South-West development together with Petrobras’s high impact Morpho exploration programme, which aims to unlock a large-scale production centre to the north of the region.

Along with maintaining a focus on oil and gas, Petrobras noted in its recently approved strategic plan the intention for several

large CCUS projects at its Santos Basin developments, further illustrating plans to evolve its energy generation mix.

Europe

Nations in north-west Europe look set to benefit by being early movers in renewable energy with substantial opportunities to adapt their energy mix and also export their knowledge and expertise.

Norway is expected to tender for both the Utsira Nord and Southern North Sea for floating and offshore wind licenses, whilst at the same time increasing oil and gas production to support a stable energy supply to Europe.

AkerBP has submitted 10 production plans, signalling its ambition in the country in an environment of stability, strong returns and profitability against an average cost of $3540USD per barrel.

Equinor itself will seek to maximise production from existing infrastructure with an exploration programme of 25 wells that can be tied to existing fields at better commercial terms and lower carbon emissions.

United Kingdom

In UK waters, energy security dominated the agenda in 2022, with impacts into 2023 and beyond. A new licensing round was announced together with an aspiration to restart domestic production, as highlighted by new development plans being submitted to the North Sea Transition Authority.

Successful wind farm leases both in Scotland and England increased prospects for both fixed and floating wind, while the novel INTOG (innovation and Targeted Oil and Gas) leasing round helps to bridge the undeniable gap between current and future, transitioned energy.

In particular, the TOG (Targeted Oil & Gas) offering exists to support ongoing oil and gas production in the near term, decarbonises operations by providing wind powered electrification, offers a testbed for emerging technologies and provides continuous activity during transition and the kick-off of major

offshore wind projects. The latter being vital for the supply chain to retain visibility of upcoming projects and provide the confidence to continue to invest in people and assets.

At the same time, hopes remain high for the second track of CCUS and hydrogen projects to be selected from a range of quality cluster candidates.

Subsea Expo

Analysis of the outlook for 2023 shows that the energy transition and changing energy mix are altering the opportunities for the subsea supply chain – in some cases expanding them. Subsea Expo has gained a reputation for being an exhibition where business is done, and this year’s free-to-attend event will once again act as a barometer for the industry.

The international outlook will feature throughout the event’s three days, with the business breakfast on the opening morning exploring global opportunities and an address from Argentina’s Secretary of Energy, Flavia Royon.

Around 150 companies and organisations from across the underwater supply chain will feature in the exhibition arena, showcasing its capability, innovation, technologies and skills. This will include companies such as: Boskalis, Bureau Veritas, Concept Cables, EODEX, J+S Subsea, JDR Cable Systems, Spectis Robotics and Subsea Tooling Services.

Running alongside the exhibition are multiple parallel conference streams. The conference programme will open with plenary session with industry leaders discussing the potential of the Blue Economy across the established and emerging underwater sectors. It will also feature an address from Mr Andrew Bowie MP, the UK Parliamentary Under-Secretary of State for Exports.

In total, around 90 industry experts will deliver presentations during the conference’s three days. Along with traditional subsea topics, sessions will explore the security of critical national infrastructure, cable technologies for floating offshore wind, the energy transition, and data and digital, amongst other topics. Speakers include representatives from Baker Hughes, Equinor, Motive Offshore Group, Oceaneering, Ping Petroleum, Siemens Energy and STATS Group.

Subsea Expo 2023 is shaping up to be an engaging and insightful event, highlighting the opportunities presented by the Blue Economy and the accelerating energy transition globally.

CCS projects. Petronas-Carigali’s Kasawari project offshore Malaysia and bp’s Tangguh expansion in Indonesia are two such examples.

ASHTEAD TECHNOLOGY SIGNS RENTAL AGREEMENT with Maritime Robotics

International subsea rental equipment and solutions specialist Ashtead Technology has signed a multi-year rental agreement with Maritime Robotics, a leading provider of unmanned technology solutions.

Under the terms of the agreement, Ashtead Technology will be a rental partner for Maritime Robotic’s Otter Unmanned Surface Vehicles (USVs) for high-quality maritime data acquisition.

The Otter is the smallest member of Maritime Robotic’s USV family with a footprint of only 200 x 108 x 81.5 cm and a weight of 55 kg. The Otter's robust catamaran design and the tightly integrated survey sensors makes this system a cost-effective, turn-key solution for bathymetric surveys in sheltered waters.

Phil Middleton, Ashtead Technology’s Head of Survey & Robotics, said: “This investment marks our first step into the supply of autonomous technology solutions for unmanned offshore survey

operations. Autonomy is a key enabler for risk reduction, cost efficiency and reduced environmental impact and at Ashtead Technology we endeavour to ensure that our portfolio of rental equipment continues to meet our customers’ current and future operational requirements.

“We are excited about developing our partnership with Maritime Robotics and look forward to seeing these systems performing well in the field for our customers.”

Kristoffer Fortun, Chief Sales Officer at Maritime Robotics, said: “This agreement reinforces our commitment to growth and the

continued development of our autonomous data acquisition solutions. Ashtead Technology is a progressive business with a first-class reputation, and we are delighted to be working together to continue building momentum for our equipment globally.”

DISRUPTIVE TECHNOLOGY AND FRESH THINKING: a smarter subsea perspective

Tore Erntsen, Chief Technology Officer, Proserv, reveals how opportunities to break with traditional approaches offer gains around cost and carbon footprint.

Technology has been the enabler for change across industry since before the dawn of the steam engine. In today’s energy sector, machine learning presents leading technology companies like Proserv avenues into cuttingedge predictive data analytics, real-time optimisation and an ability to extend the life of critical infrastructure significantly. Meanwhile, sustainable energy accelerates into pioneering openings in hydrogen and carbon capture to stem the tide on global warming.

The oil and gas segment has been driven by innovation but, like all sectors, it can also be tied to tradition. This is understandable when regular methods become familiar and change involves uncertainty. But thinking outside the box can often be ground-breaking and provides efficiency gains affecting time, cost and, crucially, carbon footprint.

INNOVATION IN OUR DNA

At Proserv, we are renowned for developing technologies giving unique benefits and harnessing our ability to listen to market needs and identify trends to build impactful solutions. This is exactly what we are doing right now in offshore wind, as we create systems delivering real-time conditionmonitoring and intelligence insights.

Our value proposition in oil and gas has set us apart from the competition for years and we continually challenge operators and other suppliers to think differently about operational strategies. Our technology ethos is underpinned by regeneration and life extension, not removal and replacement.

This philosophy, allied to market-leading coexistence capabilities and subsea controls reliability, has meant we have always been able to supply an offering where there are obvious advantages around cost and time savings. But in a world where it is increasingly imperative that all industries think of a cleaner, smarter way of doing things, our template also has tangible environmental benefits.

REDUCING EMISSIONS

When operators deploy our subsea control module technology through the estimated 25-year lifespan of a field, Carbon-Zero, a division of Data Engineering Projects Limited, a sustainability and energy consultancy, has calculated that Proserv can deliver a 56% reduction in emissions, or 77 tonnes of CO2e, when compared to standard industry subsea control modules. The reason? The reliability of our technology, meaning a vastly reduced frequency of maintenance campaigns, and no need for the retrieval of our equipment throughout the life of field – a notable outlier when placed alongside the patchy performance of other controls providers.

Consider the potential environmental gains from fewer inspection trips to site, mitigating the carbon footprint of multiple vessels and regular maintenance campaigns, not to mention lessening the exposure of personnel to HSE risks when visiting an installation.

Subsea production is undertaken in inaccessible environments yet, conversely, obsolete subsea electronics and reliability failings are perpetual worries for operators. Its ability to confront these issues head-on makes our augmented controls technology (ACT) a genuinely disruptive solution for inefficient mature assets locked into a steady decline.

ACT SMART

Proserv’s independent and OEM agnostic mindset towards innovation has meant we have engineered an offering to solve the perennial issue of obsolete subsea control systems no longer supported by a legacy OEM provider that has already moved on to newer models. When electronics modules fail, the solution put forward by the original supplier is usually a full system upgrade.

This would not only mean the expense and time of a major offshore campaign to rip out the failing subsea infrastructure but the associated carbon footprint of an intensive intervention, the manufacture of replacement components and their shipping to site. But ACT represents a much smarter and less intrusive alternative that can extend life significantly.

Its rationale is the same as across our whole portfolio: our methodology is to reuse as much of the original equipment as possible. We seek to avoid the needless waste of replacing faulty equipment that, via our technologies, might actually be refurbished and rejuvenated.

Our Artemis 2G (A2G) subsea electronics module (SEM) can be retrofitted to coexist with the legacy control system meaning we can make ‘pinpointed’ interventions targeting problem SEMs, replacing them with A2G, regenerating performance and leaving much of the legacy system in situ.

Our communications bandwidth allows us to integrate further functionality as a simple add-on to the existing infrastructure with minimal impact (such as leak detection sensors) to improve visibility on condition and integrity. A reliable system is also an efficient one.

INTELLIGENCE INSIGHTS

Effective real-time data analytics, supplying early detection of irregularities, are not only integral to building a joined-up approach where maintenance becomes condition based and asset performance is optimised, alleviating inefficiencies and supporting life extension, but intelligence also buys time.

If an operator is aware of a developing issue in advance, it can avoid the typical time, and carbon intensive, urgency to ship components and rush personnel to site, and can potentially find smarter, cleaner alternative transit solutions instead.

Ultimately, though, by adopting a more innovative, and less traditional, philosophy regarding subsea operational strategy and embracing the right technologies, an operator can find real benefits around life extension, environmental impacts and its bottom line.

Tore Erntsen, CTO, Proserv

Providing leading controls technologies to enhance performance, optimise assets and extend life right across the energy sector. For more information see our website: www.proserv.com

Proserv's market-leading A2G subsea electronics module

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MAIDEN PROJECTS PROVE SUCCESSFUL FOR VIEWPORT3-DEVELOPED ‘DROP’ CAMERA

Necessity is the mother of invention, so they say. That was certainly the case when it came to the R&D of our new Viewport3 designed ‘drop’ camera. We discovered there was a lack of such cameras in the market which are capable of collecting the high-grade digital images which are our hallmark.

From our point of view the accuracy of these images assists in the creation of virtual 3D assets, which give our clients access to the benefits of modern 3D reverse engineering. Crucially, however, it is equally deployable out with 3D scanning tasks as a regular inspection camera to be used by diver, ROV or in a deployable ‘drop’ configuration.

What is its USP?

What sets this camera apart is that it squares the circle of combining high-quality images with ease of deployment. It is also light enough to be mated to small ROVs which tend to use basic IP cameras for flight navigation. What’s more, the independent tether provides the flexibility to power the camera’s lighting system, as opposed to limiting it to the power available through the ROV’s electrical channel.

Have you used it on any 3D scanning projects?

In Q3 of 2022, we were contracted by the National Manufacturing Institute of Scotland (NMIS), run by Strathclyde University to carry out underwater 3D scanning on a fish farm in Shetland, as part of a wider project to improve health and safety for divers inspecting these assets.

Viewport3 co-founder and Technical Director, Chris Harvey, said: “The Shetland project arose immediately following the completion of our deployable prototype. This allowed us to greatly improve the quality of images captured at the underwater site.”

How did the camera perform?

The camera was mated to a ‘Falcon’ ROV, with little to no work needed to ‘trim’ the ROV flight characteristics, expediting the project schedule. The ROV was then flown to and around the applicable sites identified by the client.

The topside control equipment provides a live view from the camera’s viewfinder allowing the capture personnel to shoot with confidence as well as ‘pull’ the data up the tether without having to retrieve the ROV.

We were very pleased that the camera worked perfectly, and had collected high-grade digital images which were then used to create virtual 3D versions of the identified hardware.

What progress has been made since then?

Since the Shetland project we reconfigured one of the cameras to facilitate 3D scanning of a Temporary Abandonment cap down a well. Chris explains why the ‘drop’ camera was ideal for this particular job: “The camera benefits from a very short focal distance, something which is crucially important when working in such small spaces, with only 2-3 inches available to achieve focus and enable high-grade image collection. As such, we expect it to be in demand for other such spatially restricted projects in the future, particularly as the well decommissioning efforts in the North Sea ramp up.”

What else does the future hold for your ‘drop’ camera?

Co-founder and Director, Richard Drennan, said: “While lightweight and micro ROVs have benefits that the energy industry is keen to exploit, they lack power and communication ‘channels’ that allow connection and control of external devices.

“In shallow water circumstances, a drop camera solves this issue by vastly improving the image collection capabilities without any external device channels. It is also very close to neutrally buoyant, something we identified as important in the micro-ROV sector.

“Our customers in the diving industry have also expressed interest in using the camera, both for 3D scanning and more typical inspection projects. In relation to these, the cameras is small enough to be considered for internal J-tube / caisson type inspections.”

enhanced with cutting-edge digital tools developed internally, maximise the financial benefits for any type of businesses.

With compliance always front of mind, we have been delivering optimal services for our clients for over 24 years. This provides peace of mind that you will always receive the maximum benefit, without taking risks.

About Viewport3

Viewport3 are specialists in 3D scanning and dimensional analysis services, predominantly in the technical and underwater sectors.

We apply 3D photogrammetry techniques to projects completed underwater by diver or ROV, as well as above water by drone or personnel. We process the data into 3D reports, dimensional analysis and reverse engineering outputs, which are intended to simplify inspections and retro-fit operations of our clients. We call the retro-fit assistance ‘wraparound design’, ensuring that our clients can confidently design hardware that fits first time.

We are proud to have a long list of returning customers that includes major operators and blue-chip marine contractors.

Raw image taken using drop camera

3D data – from images collected with drop camera

V-LIFE is the only preventative and active ‘healing’ solution for low insulation resistance caused by water ingress. Our patented technology has been designed to recover the electrical integrity of failing subsea circuits in the oil and gas sector. The only solution other than costly subsea repair or total umbilical replacement. Helping secure the critical supply of gas from subsea fields.

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V-LIFE

technology supporting operators for over a decade

www.sword-group.com

About Sword

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.

Rachel Black is one of Sword’s sales leaders and has worked with us for 5 years. Rachel is responsible for a team of Sales and Account Managers who manage the relationships and engagements with Sword’s customers and prospects, aligning their requirements with the appropriate Sword Platform and IT Operational Services.

The Technology Foundations of Being Data Driven

Rachel Black

and what foundations need to be put in place to access the data.

Our expertise in running critical infrastructure, deploying automated workflows, and managing information assets converges to put the right data, in the right hands, at the right time.

Why technology foundations?

In recent years the energy industry has embraced a steep learning curve surrounding digital adoption and changing technology landscapes. With a rapid pace of change in technologies and growing challenges in finding the right people to implement technologies, the industry continues to face concerns in an already complex and diverse landscape. Additionally, without smooth operations in their technology platform and infrastructure, organisations are increasingly finding access to data and applications becoming problematic.

Without the right talent and experience to design, implement and support the technology platforms which are now required, organisations will face barriers in accessing and trusting data. With these barriers, organisations will encounter difficulties when building and supporting applications that sit on data. Additionally, these applications rely on critical technology operations to be continuously running smoothly.

When we delve into technology, there are a myriad of pressures facing organisations including business continuity, skills shortage, changing technology landscape and cloud adoption. From an infrastructure and platform perspective the adoption of the cloud is an area the industry has been slower to embrace. The adoption of cloud technology presents new possibilities for the industry to work smarter, particularly in terms of mobility, realtime, and predictive analytics.

If not addressed, problems can manifest themselves when accessing regulatory

documentation. If a server is out of date and siloed data is inaccessible, it will present challenges in accessing the data you need when it’s required. In addition, our information frequently resides in disparate, on-premise, aging systems that are unable to connect without intervention. This hinders organisations on their journey to be data driven.

When organisations are thinking about technology investment, there is an increase in the need to concentrate on readily available solutions to integrate critical workflows across the business. The infrastructure which data and apps relies on often needs to be prioritised to ensure business can run as usual and support future projects.

How to build critical technology operations?

Sword works with the energy industry, delivering vital IT operations to allow customers to focus on their core business needs and objectives. With our deep understanding of the industry’s objectives and operational needs, we work to provide customers with a fit-for-purpose technology landscape, using the right infrastructure and solutions at the right time.

Organisations must focus on how they remain on top of their technology adoption. We work with customers to provide roadmaps that are aligned to their specific needs. These roadmaps provide a clear understanding of where your organisation needs to be in 3-5 years, how they need to be accessing data,

At Sword, we recognise the need for reliable infrastructure in an industry that undertakes multiple asset transitions. Our team have deep knowledge of oil and gas IT platforms, engineering content and subsurface data, and can be trusted partners throughout the process. With outdated data management platforms, the vast amounts of data being generated and stored across these systems makes it difficult for the end users to access and trust the lineage of data. Without trusted data, asset transition projects run the risk of falling behind and facing unforeseen expenses.

Our destination, data driven outcomes

Our industry can keep up to date with the rapid pace and change in technology. We have proven this over many decades, continually innovating in one of the harshest climates to operate.

Organisations should be looking at their overall objectives and aligning these with their critical IT technology. Maximising uptime, whilst minimising downtime, is just as important in IT infrastructure as it is on an offshore platform. Having secure and reliable infrastructure is critical when you want to deliver high-quality applications, built from trusted data.

If we, as an industry, are to achieve data-driven outcomes, we need to ensure that data is placed at the heart of our operational and project thinking. The only way we can do this is by ensuring the foundations our data is built on is a reliable and secure environment. With investment in solid, fit-for-purpose, platforms that integrate across office functions and operations, our customers can trust their data as a single source of truth.

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

We provide fit-for-purpose technology using the right infrastructure and solutions

www.renewableuk.com

PEOPLE ARE THE HEART OF THE ENERGY TRANSITION

RenewableUK speaks to one of the very deserving winners of its inaugural Global Offshore Wind Awards – Offshore Renewable Energy Catapult – about the organisation’s ethos.

When we speak about energy transition, our minds tend to immediately jump to the engineering and technical advancements involved.

At the heart of this transition though are the people who will make it happen. Only by giving people the pathways needed for them to find their place in the renewable energy sector can we really make the type of impact that we need. It is people who will make the energy transition happen and who will decide the shape and form that transition takes.

In the UK, we are blessed to already have a proud heritage of energy skills built up through decades of oil and gas production. This clearly gives us a strong foundation in terms of building a large skilled workforce capable of delivering the scale of renewable energy generation we need to see over the coming years. If we are to make the most of this foundation, then it is vital that we find new and creative pathways for transition between energy sectors.

That’s why we at the Offshore Renewable Energy Catapult are working with stakeholders across our sector to support ways of doing this. A recent survey of companies involved in the offshore wind supply chain that we carried out identified a need to attract more skilled people at all levels into the sector to realise the tremendous pipeline of ambition in the UK. We know that many of these are set to be those transitioning across from oil and gas in the years to come.

It is equally vital that we do all we can to make the offshore renewable energy sector fully

RenewableUK members are enabling a just transtion to a net zero future. Focusing on continuous improvement around the three pillars of our Just Transition Tracker - People, Place and Planet These inspiring companies are a true showcase of the best that our industry has to offer.

reflective of the wider society it serves, so that we can make sure we optimise the use of the diverse talent that exists, regardless of background. Without doing this, we are unlikely to capitalise on the skills and resources we need to ensure we stay at the heart of innovative thinking in our sector.

That’s why we’re also playing an active role in the wider efforts being taken by the industry in relation to equality, diversity, and inclusion. This includes the Offshore Wind Industry Council’s commitment to increase the representation of women in the workforce to a third by 2030.

In addition to supporting these wider efforts, we know that we also have a responsibility to lead by example and to do all we can to help foster an environment where people from all backgrounds, and with differing lived experiences, recognise the value they bring. We do this by striving for a culture where people can bring their whole selves to work, and to the work they do. To do this, we have focused on implementing a number of strategic themes for inclusion and diversity across our organisation.

For example, our inclusion and diversity strategy is centred around core themes which include engaging, equipping and empowering our people. Part of our engagement has been growing internal networks and groups with focus on specific protected characteristics. Our groups to date include our Young Professionals Network, Women @ Catapult, Interfaith Group, LGBTQ+ Allies, Race Ethnicity and Cultural Heritage Group, and Health & Wellbeing Network.

As a result, in recent years we’ve seen increasing openness around inclusion and diversity topics with positive signs of engagement across our organisation, and

most importantly, employees report feeling that our activities are genuine. We’ve worked to communicate regularly, including through targeted campaigns, about key inclusion and diversity topics, and have built partnerships with external diversity organisations like Inclusive Employers, the Association of BME engineers (AFBE), and Stonewall.

We’re delighted that this work has been recognised externally, such as at RenewableUK’s Global Offshore Wind Awards, where we received the Equality and Inclusivity Award for demonstrating our strong commitment to equality, diversity and inclusion.

We’ve also been recognised as one of the Best Workplaces for Women in the UK and are proud of our Gold Investors in People and Silver Investors in Young People accreditations.

These awards mean a lot to the team and myself, and they showcase our culture to our wider community, as well as acting as an exemplar within our sector. What brings us even more satisfaction though, is being part of the wider changes that are happening the industry. Over the next few years, offshore renewable energy is set to rapidly expand its already significant footprint on our society. If we all play our part, we can make it a place for everyone.

Pamela Nichol-Littlejohn DIRECTOR OF PEOPLE

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Saipem awarded two offshore contracts for a total amount of approximately 900 million USD

Saipem has been awarded two offshore contracts for a total amount of approximately 900 million USD.

The first contract - in partnership with Aker Solutions do Brasil - has been awarded by Total Energies, for the LAPA Southwest (LAPA SW) Development Project, a deepwater oil field in the Santos Basin in the South Atlantic, 270 kilometres off the coast of São Paulo, in Brazil.

The scope of work encompasses the Engineering, Procurement, Construction, and Installation (EPCI) of Subsea Umbilicals, Risers, Flowlines (SURF) as well as a Subsea Production System (SPS).

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.

LAPA SW Development Project is the first ever integrated SURF and SPS project awarded by TotalEnergies.

Saipem will maximise the local content by making use of its yard Guarujá CTCO (Centro de Tecnologia e Construção Offshore) for logistics activities and Quad Joints Fabrication and some other manufacturing activities.

The other contract has been awarded to Saipem by Equinor for the Irpa Pipeline project. The project, located in deep waters in the Norwegian Sea, consists of the installation of 80-kms-long swagged Pipe-in-Pipe pipeline connecting the subsea production template of Irpa field to the existing Aasta Hansteen platform.

The offshore operations are planned to take place in 2025 and will be performed by Saipem’s flagship vessel Castorone.

Saipem is an advanced technological

Transocean Ltd. announces contract award totalling $488 M

complete an upgrade and contract preparation project in the United Arab Emirates.

David Mullen, Chief Executive Officer of Shelf Drilling, remarked: “This award in the Middle East further demonstrates our customers’ confidence in Shelf Drilling to deliver safe and efficient operations and also represents an attractive opportunity for us to expand our footprint in this growing region, which will benefit the company and all stakeholders.”

and engineering platform for the design, construction and operation of safe and sustainable complex infrastructure and plants. Saipem has always been oriented towards technological innovation and is currently committed, alongside its clients, on the frontline of energy transition with increasingly digitalised tools, technologies and processes that were devised from the outset with environmental sustainability in mind. It is listed on the Milan stock exchange and operates in 70 countries around the world with 32 thousand employees from 130 different nationalities.

Shelf Drilling secures more work for jack-up rig off Egypt

UAE-headquartered offshore drilling contractor Shelf Drilling has won a contract extension for one of its jack-up rigs for operations offshore Egypt.

Shelf Drilling revealed that it received a one-year contract extension for the Trident 16 jack-up rig from Belayim Petroleum Company (Petrobel) for operations in the Gulf of Suez, offshore Egypt. The previous extension for this rig was exercised in 2021.

Offshore drilling contractor Shelf Drilling has been awarded a long-term contract for one of its jack-up rigs, which will carry out operations in the Arabian Gulf.

While announcing this five-year contract for the Harvey H. Ward jack-up rig, Shelf Drilling explained that the contract value for the firm period, including mobilisation revenue, is approximately $192 million.

In addition, this deal includes a two-year option. The start-up of operations is planned for late March 2023. Prior to starting this contract, the Harvey H. Ward jack-up rig is scheduled to

The 1981-built Harvey H. Ward jack-up rig had its previous upgrade in 2011. This rig is of a Friede & Goldman L-780 Model II design. It is capable of operating in water depths of up to 300 ft and can accommodate 108 people.

This deal comes a little over a month after Shelf Drilling secured another five-year contract for operations in the Arabian Gulf, which will be undertaken by the company’s premium jack-up rig, which was acquired from India’s Aban Offshore earlier this year.

The offshore drilling contractor also recently bought five jack-up rigs from Noble and has already secured an extension for one of these rigs. The rigs included in the agreement were Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert, and Noble Lloyd Noble.

While no financial details were disclosed at this point, the UAE-based player did explain that the rig will continue operations in direct continuation of its current contract, which includes a further one-year option period. This rig has been working with Petrobel in Belayim fields since 2015, and following this extension, the expected availability of the rig is February 2024.

The Trident 16 is a 300-foot jack-up drilling rig of Modec 300 C-38 design. It was built in 1982 and upgraded in 2012. The rig can accommodate up to 140 people.

The latest contract extension comes a day after the UAE-based company won a three-year deal with ONGC off India and a few days after the firm secured a contract extension with Chevron’s subsidiary in Angola.

NPCC wins $60 million contract for the ADNOC Hail and Ghasha project

National Petroleum Construction Company (NPCC), a National Marine Dredging Company Group subsidiary, has received a Letter of Award from the Abu Dhabi National Oil Company (ADNOC) for the PreConstruction Service Agreement (PCSA) related to the Offshore Facilities of the Hail and Ghasha Gas Development Project.

The Letter of Award covers the early project activities such as Initial Detailed Engineering and Procurement of critical Long Lead items.

The PCSA scope of work also includes the preparation of an Open Book Estimate for the full project delivery scope, which will be considered as part of ADNOC’s Final Investment Decision making process.

NPCC will execute the project together with its Joint Venture Partners, Saipem and China Petroleum Engineering and Construction Corporation (CPECC). The total value of the project related to the Letter of Award is about $60 million.

Eng Yasser Zaghloul, Group CEO of NMDC, said: “We are honoured that ADNOC awarded this project to the consortium led by NPCC. This award demonstrates our client’s confidence in our ability, and our readiness to support ADNOC as they increase natural gas production in the UAE.”

Eng Ahmed Al Dhaheri, CEO of NPCC, said: “We are committed to employing all our efforts to have a significant positive impact on the energy

The company will also provide well operator services, including engagement, liaison and accountability with regulators and stakeholders, emergency response capabilities and turnkey project management.

Crogga Limited was awarded an Isle of Man license for the Crogga gas field in 2018, with operations expected to commence in late 2023.

THREE60 Energy secures significant drilling contract with Crogga Limited to help Isle of Man achieve energy independence

THREE60 Energy, a leading independent energy service company offering complete asset life cycle solutions, has secured an extensive contract with Crogga Limited to drill an appraisal well in the Crogga gas field offshore Isle of Man. If the well proves successful, it has the potential to provide energy independence to the Isle of Man by 2026.

The appraisal well, called Independence, will be used to establish commercial flow rates of gas from the conventional Permian Collyhurst Sandstone reservoir. This is the first well to be drilled under the island’s jurisdiction and, if successful, could lead to Crogga becoming one of the largest field developments in the East Irish Sea.

The scope of work to be undertaken by THREE60 Energy is for the provision of detailed well engineering and well planning, including contracting of a drilling rig, procurement of drilling services and equipment, as well as offshore execution and project close out.

THREE60 Energy’s UK Wells Managing Director, Nick Ford, said: “This significant contract award reflects the increased confidence in reliable domestic gas production having a smaller carbon footprint than imported gas.

“Our well operator model provides organisations such as Crogga Limited the ability to develop prospects in a safe, aligned and cost-effective manner. We are looking forward to working with Crogga Limited and the wider stakeholder group on this exciting project.”

Richard Hubbard, Crogga Limited’s CEO, said: “Based on its proven track record of delivering well operator and well management projects, we know THREE60 Energy is ideally equipped to drill the Independence appraisal well for us.

“Having drilled 14 wells in the East Irish Sea, the company has an excellent track record with demonstrable experience. THREE60 Energy also has ongoing familiarity with the specific requirements, as well as the competence, organisation and systems, to safely deliver wells on a turnkey basis. From the outset THREE60 Energy has displayed a thorough understanding of our project requirements, looked for mutual alignment of project drivers and demonstrated fast and flexible project implementation.”

THREE60 Energy provides subsurface, wells, engineering, procurement, construction and commissioning (EPCC) and operations services throughout the asset lifecycle, with offices in Aberdeen, Bergen, Stavanger, Oslo, Kuala Lumpur, Singapore, Jakarta, Taipei and Brisbane.

eco-system and the UAE economy and support ADNOC’s development projects, particularly achieving the highest In-Country Value (ICV).

“This, in turn, will help to develop local resources, as well as human capacity and talent. We look forward to working with our JV partners to ensure the success of this ambitious project.

NorSea secures Equinor supply base contract extension

Wilhelmsen’s offshore supply base specialist NorSea has landed a contract extension with Equinor to deliver base and logistics services along the entire Norwegian coast.

The base agreement between Equinor and NorSea was entered into in 2015. The agreement had a duration of six years, with an option to extend by two plus two years.

The extension secures NorSea a contract to provide services for another two years starting from July 2023.

“Equinor is our largest and most important customer. We will continue to deliver safe, smart and sustainable logistics operations to Equinor and look forward to demonstrating our trust,” said Kevin Lied, vice president of base operations at NorSea Logistics.

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1

Repsol Sinopec Resources UK has appointed a new Chief Executive Officer (CEO) as its previous one is relocating to Spain.

Repsol Sinopec revealed on Wednesday that Nicolas Foucart has been appointed as the firm’s new CEO, effective from 1 September 2022. Foucart replaces Jose Luis Muñoz, who is relocating to Spain upon being appointed Director of Mergers and Acquisitions (M&A) for Repsol in Madrid. He took over the CEO role back in April 2020. Foucart, who joined Repsol Sinopec in August 2018, most recently held the position of COO.

While commenting on the appointment, Foucart explained that the firm’s “aim is to consistently deliver results against our corporate strategy, which is focussed on safe and sustainable oil and gas production, efficient decommissioning, and the energy transition. For us, the energy transition means emissions reduction and achieving net-zero, whilst contributing to the UK’s domestic energy supply.”

To feature new senior hires and appointments within your organisation, please contact Jordan Clarke, Head of Marketing & BD at Norman Broadbent. +44 (0) 7912 564 797 / jordan.clarke@normanbroadbent.com

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Paul is a Client Partner within Norman Broadbent’s industrial practice, bringing over 20 years’ experience in search, talent solutions and recruitment. He supports our clients across all our service offerings including executive search, consulting, research & insights, and interim management. His specific focus spans power & utilities, renewables, chemicals, building products and automotive. Prior to joining Norman Broadbent, Paul worked for a global talent solutions provider, working extensively over Europe and the US with large enterprises, SMEs and start-ups to deliver tech & digital talent across a range of sectors. Paul has held a number of senior leadership roles including managing large teams across Europe, leading company-wide strategy and building & heading client development functions globally. Paul has vast experience in all areas of talent acquisition from executive & retained search, RPO solutions to contractor recruitment.

NEO Energy, the UK’s fifthlargest North Sea oil and gas operator, has named Nexen veteran Paul Harris as its new CEO.

Mr Harris replaces Russ Alton who, alongside CFO Rob Adams, has decided to depart the company. Robert Gair is named the new chief financial officer.

In a statement NEO Energy, which is owned by Norway private equity player HitecVision, said the pair “have decided that now is the right time to step down from their roles”.

Mr Alton, a specialist in mergers and acquisitions (M&A), has been replaced by Paul Harris who is currently the chief operating officer at NEO (a role he is retaining) and has a background in process engineering and project management.

Mr Harris spent around 17 years at Nexen, including more than a decade in project management roles at the Buzzard oilfield and Golden Eagle developments in the UK.

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Kellas Midstream, has appointed Nathan Morgan as its CEO starting in February 2023.

Nathan is joining from Total Energies where he has spent the last 17 years in a range of roles, most recently Head of E&P Gas and LNG Marketing and Business Support with responsibility for a multi-country team. He also headed up business development for Uganda, leading commercial, planning, government

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Seadrill Limited announces the appointment of Ana Zambelli as a new board director.

Ms. Zambelli brings significant industry experience to the Company, with more than 20 years’ experience in the energy services sector in operational, commercial and finance roles.

Ms. Zambelli served as Chief Commercial Officer at Maersk Drilling, Managing Director at Transocean, and President of the Brazilian division of Schlumberger. Last, she served as a Managing Director in Brookfield's Private Equity Group, responsible for business operations in Brazil, where she also provided operational and financial oversight for Brookfield portfolio companies. Ms. Zambelli previously served as an independent member of the Board of Directors of Petrobras and Braskem, and was the founder and leader of the Diversity Committee at the Brazilian Petroleum Institute (IBP) from 2018 to present.

relations, corporate communications, and asset management activities.

Nathan said, “Kellas has been critical to the development of the UK North Sea and is positioned to play an equally significant role in its future. Building on the solid foundation established by Andy and the rest of the team, I look forward to working closely with my new colleagues, our customers, operating partners, and shareholders to deliver innovative and sustainable energy infrastructure solutions across the existing business and new energies.”

Alan Quirke has been named as Chief Operating Officer of HydraWell and brings to the role almost 30 years of experience gained in the UK and international markets such as Europe, Libya, Tunisia, Brunei, Burma, Kazakhstan, Canada, Venezuela.

This newly created role will focus on the delivery of operations across the business’s portfolio, with Alan set to bring a unique perspective thanks to expertise amassed within the operator and service communities. His most recent role was Head of Wells for a UK Operator where he was accountable for the repeatable and reliable delivery of well activities including well abandonment.

Last year, HydraWell and READ (including subsidiaries READ Cased Hole and ANSA) joined forces to create a new leading light in late life oilfield activities, including cost efficient and environmentally safe permanent plugging and abandonment of hydrocarbon wells.

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French oil major TotalEnergies (PAR: TTE) has named a new managing director for its UK North Sea business.

Nicolas Payer takes up the role, replacing Jean-Luc Guiziou who has been in the position for nearly five years. TotalEnergies said Mr Guizou is taking up a new role as senior vice president for Exploration and Production across Europe.

Nicolas Payer has held several management roles across the group, most recently leading TotalEnergies

Aker Solutions appoints Hallvard Norum as Head of Media and Channels.

Hallvard Norum has been appointed Head of Media and Channels at Aker Solutions and will take up his role from mid-March 2023. Norum comes from a position as climate and economics journalist at the Norwegian Broadcasting Company (NRK).

“It will be exciting to work in a company that is so close to some of the biggest challenges of our time, namely energy security and the energy transition.

Semco Maritime Norway appoints new Managing Director.

Semco Maritime has appointed Tor Erik Christoffersen Managing Director of the Group’s Norwegian business. He took up the position on 1 January 2023 and will work from the offices in Bergen and Stavanger, leading Semco Maritime’s 400 colleagues in Norway as well as the activities at the Hanøytangen facilities and offshore in the North Sea.

Tor Erik Christoffersen has a strong background from the international maritime and oil service sectors with more than 15 years of experience in management positions and commercial roles. He most recently served as Chief

Global Procurement, which handles its purchasing services. He previously had a managing director role as head of E&P in Cote d’Ivoire.

TotalEnergies has several assets in UK waters, including the Culzean, Alwyn and Elgin-Franklin production hubs in the North Sea. The firm owns and operates the Shetland Gas Plant, as well as the LagganTormore gas production fields in the West of Shetland and a series of other discoveries.

Jean-Luc Guizou became managing director of TotalEnergies E&P UK in 2018, in part to oversee the final phase of its acquisition of Maersk Oil.

Aker Solutions is innovative and skilled, and I am looking forward to getting to know my new colleagues better,” says Norum.

As Head of Media and Channels, Hallvard Norum (45) will work with communications through Aker Solutions' official channels, press work and internal communication. He will report to Senior Vice President Communications Kari Ertresvåg.

Hallvard is a Norwegian national with a broad journalism background, including more than a decade with NRK. He holds a master's degree in economics from the University of Oslo and a college degree in journalism.

Commercial Officer and part of the Executive Management team of Norway-based PSW Group, which provides a wide range of services and solutions to the global energy and drilling industry. Prior to his 12-year tenure with PSW Group, he held a management role with responsibility for Market & Operations in GC Rieber Shipping where he worked for 6 years.

“We are pleased to welcome Tor Erik Christoffersen as head of Semco Maritime Norway and look forward to leveraging his comprehensive commercial experience and building an even stronger business with solid traction in the market. He will play a key role in developing our offering to customers and expanding our business in Norway,” says Nikolaj Vejlgaard, Senior Vice President Rig & Offshore Marine, Semco Maritime.

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“A huge amount to celebrate” - Decom North Sea Awards to acknowledge sector transition

individual and company performance, will focus upon all forms of innovation, the sector’s community of emerging professionals and sustainable activity in decommissioning. New for 2023, a photography category will recognise the images which tell the decom story and capture some of the recent successes of the sector. The “Decom North Sea Member” category will once again acknowledge outstanding achievement from within the organisation’s UK and international membership.

The closing date for entries is 28th February 2023, with full entry details available at The Decom North Sea Awards | Decom.

This year’s categories are:

Sustainability: companies who have made a significant impact in diving energy efficiencies, the circular economy or decarbonisation in decommissioning, aligned with the Energy Transition.

The energy industry’s only awards dedicated to decommissioning excellence are now open for entry.

Celebrating innovation and success across the sector, the winners of the sixth annual Decom North Sea Awards will be announced at a ceremony on 16 May as a part of the organisation’s flagship conference, Decom Week.

This year the Awards, which were established by DNS to celebrate both

Sam Long, Decom North Sea CEO comments: “There is a huge amount to celebrate within the decommissioning sector right now, and we know first-hand from our members that 2023 is set to build upon an active 2022. The impressive technicality and scale of what’s been achieved during the past 12 months deserves to be justly acknowledged through the Decom North Sea Awards.”

Discussing this year’s categories, Sam points out: “It’s important to note that the Emerging Professionals category is not age-specific. Whilst looking forward to receiving entries from those relatively early in their career, we would also strongly encourage entries focused on individuals who have transitioned into decom from elsewhere, thus reflecting the transferable nature of the energy industry skillset.”

Innovation in Decommissioning: innovative solutions to late life/decom projects resulting in material benefits including safety, deployment of risk reduction techniques, or high-impact technical, commercial or contractual outcomes.

Emerging Professional in Decommissioning: individuals who have recently joined the decommissioning arena and have made notable professional and developmental impact.

Decom North Sea Photography Award: awarded for the image that best tells the decom story and captures the successes of 2022.

Decom North Sea Member: registered Decom North Sea member companies’ outstanding achievements during the past 12 months.

Global Maritime completes Marine Warranty Surveying Decommissioning Scope

Global Maritime recently completed the Marine Warranty (MWS) scope for another removal campaign in Southern North Sea, making a total of ten successful campaigns in the region over the last four years for three different clients and five removal contractors.

This latest project consisted of the removal of four platforms by offshore contractors AF Decom and DEME with vessel ‘Orion’, including Vanguard QD, North Valiant SP, South Valiant TD, and Vulcan RD. All structures were transported and loaded at Able UK, Hartlepool, where they will be dismantled for recycling.

Global Maritime is delighted to deliver another decommissioning project bringing the number of platform removals approved by GM in UK/ Ireland to 35.

Global Maritime provides services to the decommissioning industry including:

• Marine warranty

• Marine assurance

• Structural engineering

• Jack up site assessments

• Operational planning and simulation

Global Maritime is a marine, offshore and engineering consultancy that specialises in marine warranty, dynamic positioning and engineering services. Known for innovation, practical experience, operational excellence and safety. Global Maritime has a proven track record in delivering the world’s most successful marine and offshore projects.

Saipem secures decommissioning work in UK North Sea

Italy’s Saipem has secured a contract from UK-based operator EnQuest to remove the upper jacket that has supported its Heather platform in the North Sea.

The contract covers all the engineering, preparation, removal, and disposal of the upper part of the jacket in accordance with the submitted decommissioning programme, EnQuest said.

Saipem will deploy its S7000 14,000t combined twin crane capacity to

Aker

: A decommissioned platform's final journey

conduct a single lift and transport on hook of the upper jacket structure. This will include nine conductors, caissons, and riser sections.

Allseas was awarded the contract to remove the Heather topsides by EnQuest last year. The operator said the two companies will work closely with the Heather decommissioning team to deliver both heavy lift programmes. The Heather facility was brought online in 1978 and produced oil until a fire incident in October 2019. The topside removal is set for 2025.

Explosives sped the demo along and made it safer by bringing heavy steel structures to ground level, making for less work at heights. Hydropower drove the stationary-scissor and water-grit cutting machines, ensuring lower emissions and noise pollution.

Demos and newbuilds

Decommissioning the original Valhall installations concludes a fascinating chapter in the Norwegian oil and gas story. A giant on the Norwegian continental shelf, Valhall has produced over a billion barrels of oil equivalent since the original field came entered production in 1982. Three of its platforms were recycled at Stord. A fourth will be decommissioned by year-end 2023.

While the Valhall originals will live on as raw materials, Aker Solutions is helping Aker BP extend the life of the remaining Valhall center an extra 40 years. Across the bay from sprawling Stord is the newbuild assembly area, w1|here the topside of a new Valhall production and wellhead platform will be assembled.

Recycled material and equipment from Valhall DP could yet find its way onto the newbuild topside.

Growth market

As part of its decommissioning offering, Aker Solutions can now hand the offshore operator a Second Life Report on the raw materials a platform contributes to the circular economy. A drilling platform, it turns out, can be 99% recycled.

The report spotlights the quantity of all materials yielded in decom work. For topsides that broke heavy lift records when they were installed, that's a lot of valuable raw materials recovered.

More sustainable economic activity means reusing as much steel and other materials as possible, as far less energy is used recovering

recycled materials than in the production of, say, ingots of steel. Aker Solutions is also learning that steel recovered offshore has unique qualities and uses.

But the work reducing towering oil platforms into, say, additives for 3D printing can be "brutal". The Valhall drilling platform's final journeycarried on the "back" of the Pioneering Spirit heavy lift vessel - ended in May 2022 at Aker Solutions' Stord yard, where large machines waited to chop it to pieces. The 6,700-ton platform was first stripped of hazardous materials and electrical waste before being levelled by explosives.

About 10,000 platforms now in operation will one day have to be decommissioned - a giant salvage market. That means a corresponding trove of recovered raw materials are now also within the reach of Aker Solutions' offshore operator customers.

Much of that decommissioning stems from both the North Sea, from where Aker Solutions has secured a pipeline of orders for structural teardowns. Already, some 40,000 tons of recovered hulks await dismantling and recycling at Stord's decom yard.

Field Development Update

As we look ahead to 2023, a review of offshore O&G-related engineering, procurement and construction (EPC) contracting activities in 2022 indicated that total EPC contract award value closed at approximately US$52.4 billion (excluding letters of intent). A total of 294 subsea tree unit awards were recorded, over 3,750km of subsea umbilical riser and flowline (SURF) and 3,800km of line pipes in 2022. 18 floating production systems, including three floating liquefaction natural gas (FLNG) units were awarded, as well as 99 fixed platforms. Since the turn of the year, several notable contracts have been awarded, including a formal award from Petronas to a JGC-Samsung Heavy Industries (SHI) consortium for the engineering, procurement, construction and commissioning (EPCC) contract for its nearshore FLNG unit, PFLNG Tiga, with the unit expected to be delivered in 2027. During the period under review, Aker Solutions and its joint venture (JV) partner Drydocks World-Dubai announced an EPC contract award from Altera Infrastructure for the complete upgrade of the Petrojarl Knarr floating production, storage and offloading (FPSO) unit to be redeployed at Equinor's Rosebank field offshore UK. The contract is valued at approximately US$401 million, pending a final investment decision (FID) and regulatory approvals of the Rosebank field.

In the subsea sector, Aker Solutions will be responsible for the supply of subsea production systems, tools and all related EPCI interfaces for TotalEnergies' Lapa South-West field offshore Brazil, following an FID announcement by the operator. The work scope includes up to three subsea trees and control systems, tie-in, structures and subsea umbilicals. In Guyana, Strohm announced it will supply a minimum of 24 thermoplastic composite pipe jumpers for ExxonMobil's Uaru development, whilst TechnipFMC confirmed the EPCI contract award for the subsea flowline to be installed on Wintershall's Dvalin North project offshore Norway, which was sanctioned in December 2022.

Overall, Westwood anticipates 2023 offshore O&G-related EPC contract value to close at approximately US$76 billion, a 45% increase compared to 2022.

Offshore Rig Update

The global committed jackup count totalled 398 units in December, one rig higher than the previous month. The marketed available and cold-stacked jackup counts now stand at 39 and 54, respectively. Marketed, committed utilisation and total fleet utilisation held steady at 91% and 81% during the month. A total of 74 new contracts were awarded, and one option was exercised during the month, amounting to 35,100 drilling days. The contract fixtures came from CNOOC, which awarded multiple oneyear contract extensions to China Oilfield Services Limited (COSL), Sinopec and CPOE under annual evergreen contracts, with all contracts commencing in January 2023.

The global committed semisubmersible (semi) count grew by two to 67 during December. There are 14 available and 14 cold-stacked rigs left in the fleet. Marketed, committed utilisation and total fleet utilisation rose to 82% and 70%, respectively. There were 14 new fixtures and one option exercised with a total of 5,455 drilling days during the month. Most notably, TotalEnergies awarded a $135 million contract for Deepsea Mira to work off West Africa commencing in 2Q 2023.

Finally, drillship demand grew by one unit to 77 rigs this month, leaving only four active units available in the market, while another 15 rigs are cold stacked. Marketed, committed utilisation and total fleet utilisation stayed at 95% and 80%, respectively. There were six new contracts signed in December, totalling 6,115 drilling days. Petrobras awarded five contracts, representing 94% of total drilling days. The longest award of four years was awarded to Transocean’s Deepwater Corcovado for work offshore Brazil, commencing in direct continuation of its current contract in 2Q 2023.

Offshore Wind Update

Since the last update, Siemens Gamesa has been selected as the preferred supplier of the turbines at the 1GW Thor wind farm, located offshore Denmark. Under the Preferred Supplier Agreement, Siemens Gamesa will supply a total of 72 SG 14-236 DD turbines, and it will also provide maintenance services for the turbines. The firm contract is subject to the project developer, SSE Renewables, taking a positive FID on the project.

Dominating headlines was news that Japan relaunched the second major round of offshore wind auctions to select operators for four new areas capable of generating 1.8GW of offshore wind power. The areas include the 356MW offshore wind farm in Happo-Noshiro, off Akita prefecture in northern Japan, which was initially put for auction last December, but the process was suspended in March after complaints from businesses about the lack of clarity around first-round bidding. The other auctioned areas are the 336MW Oga-Katagami-Akita and 700MW Murakami-Tainai in northern Japan, and 424MW Saikai in southwestern Japan.

Finally in the Netherlands, Ecowende, a Shell and Eneco JV, won the tender for the rights to develop the Hollandse Kust West VI site offshore wind farm. Ecowende will construct a 756MW offshore wind farm and it will feature a total of 54 turbines. The project, one of two designated in the 1.4GW Dutch HKW offshore wind farm zone, is expected to come online in 2026.

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Westwood Global Energy Group are specialist providers of detailed market intelligence for the offshore energy sector, covering; offshore rigs, production facilities, subsea equipment, subsea services, offshore marine and offshore renewables and power.

www.westwoodenergy.com

Brimmond invests in new stock fleet to strengthen marine crane offering

Aberdeenshire-based provider of hydraulic, lifting and mechanical equipment and services, Brimmond, is entering 2023 with a pipeline of new and exciting projects, as well as a new fleet of stock marine cranes available after a recent investment.

Recognising current lead times for new marine cranes are lengthy and causing issues for clients, Brimmond –the exclusive UK and Ireland provider and servicer of Heila Marine Cranes – will have a wide range of cranes available throughout 2023, with four available immediately in the UK from January.

Heila models available in January 2023:

Heila HLM10-3S: 940kg @ 10.3m

Heila HLM25-3S: 2200kg @ 10.5m

Heila HLM25-5S: 1200kg @ 14.7m

Heila HLRM45-5S: 1750kg @ 14.9m

Celebrating a successful year since the partnership with Heila, Brimmond is continuing to stock, rent, refurbish, repair and upgrade a diverse and ever-increasing range of new and second-hand marine cranes.

Managing Director of Brimmond, Tom Murdoch, said: “Heila has been a strong strategic fit for us, and we’re excited to kick off another year as the exclusive UK and Ireland distributor, service partner and agent for Heila Marine Cranes.

“Confirming our commitment to providing our clients with a high-quality product and service, we recently invested in various marine cranes in a bid to reduce lead times for clients. We’re confident this will allow us to offer an even higher level of service to our customers, providing a greater product range and enhanced delivery options.”

Heila is a global leader in the manufacture of specialist heavy-duty marine cranes with over 700 customers worldwide. Heila’s manufacturing facility in Italy has several cranes currently in build for Brimmond stock with four fully foldable versions available to purchase from January 2023.

Technical Sales Manager of Brimmond, Paul Dingwall, said: “Following the impact of Covid-19, supply chains are once again being tested this time by the current conflict which has affected all marine crane manufacturers as they struggle to source materials. This has translated into increased costs and even possible project delays.

“We pride ourselves on our high-quality service, which is a crucial reason for our ongoing client loyalty. The current situation has reinforced our decision that it is imperative for Brimmond to keep stock of Heila marine crane models which should assist our clients who require a quicker turnaround at a secure cost.”

Brimmond recently added two new fully equipped service vans for their experienced team of crane technicians who carry out servicing, maintenance and thorough inspections on client equipment throughout the UK and Ireland.

By Laura Petrie, Partner, Brodies LLP

PRODUCTIVE PARTNERING IN THE OIL AND GAS INDUSTRY

February – and February 14th in particular - is traditionally when we as individuals focus on relationships and showing our appreciation towards our partners. For the oil and gas industry, partnerships and joint ventures are equally important and are typically highly negotiated arrangements where the participants seek ways to obtain leverage, protect their position and maximise their own benefits from the relationship. With new relationships likely to be borne out of the recent closing of the 33rd Licensing Round, what should prospective partners be thinking about?

Discover, determine, develop & define

In romantic relationships, psychologists have identified four phases when charting how a relationship progresses and the same stages apply equally to commercial relationships.

During the discovery phase, parties are seeking out the best possible partner. Consideration should be given to what it is you need in a potential partner well in advance, whether that is specific technical or financial capability, a proven history of skills or experience or perhaps even the underlying team members working for and supporting that partner. It is important to gather sufficient information on these factors and establish that the parties are all keen to work towards the same end goal. Using confidentiality agreements and / or memorandums of understanding can help the parties properly assess their intentions and discover if they are the right fit for each other.

Determining the relationship means moving forward and establishing the ground rules for how the parties are going to interact. If the relationship is for the purposes of bidding for a licence or considering future prospects together then the use of joint bidding agreements or agreements setting out areas of mutual interest can clarify the roles of each party. If a wider commercial endeavour is the objective, then the creation of heads of terms can ensure everyone is focussed on the same end goals while also setting out their expectations.

Once it's clear there is a good foundation, the relationship will enter the development phase. Here is where the fundamental agreements for the joint venture or project are negotiated. Whether entering into a traditional joint operating agreement or using a farm-in arrangement, incorporated joint venture or some other form of collaborative endeavour the development of the basic terms and more bespoke requirements will take time and parties should be clear from the outset on their expectations for that timeframe.

Finally, the parties will move into the define phase. This is where agreement has been reached and the roles of the parties are clear with the partnership moving forward in these defined roles under the agreed terms. Frequently, this is where relationships can stagnate unless the parties focus on maintaining communication, developing the established relationship and having regard to the defined parameters set down in the agreements.

Partnering principles

Whichever phase parties are working through there are some key principles around entering into agreements, of any type, that should always be kept in mind.

• Be clear and transparent on any hard lines. Whether it is caps on values, elements requiring unanimous decisions or simply expectations regarding frequency of engagement during project delivery, parties should seek to establish their parameters as early as possible and in an unambiguous way.

• Don't lose sight of the end goal. In the midst of negotiations, it can be easy to forget what the original intention was as well as the expected outcome. When negotiating, ensure that discussions are frequently brought back to the intended aim so that parties are discussing in a clear and focussed manner.

Happily ever after?

• Include appropriate processes. Where decision making or action is required always include practical steps as to how this will be achieved. Include timeframes, clear steps and obvious lines of responsibility to ensure that joint venturing can be managed efficiently. Also, include alternatives. Use of escalation or expert provisions ensures that there is always a backstop should matters reach a point where the parties cannot otherwise reach alignment.

• Ensure risk is appropriately managed. Parties may have different appetites when it comes to risk so appropriate allocation of risk and use of indemnities is vital to ensure all parties know what they are responsible for. This also allows for suitable insurances to be applied and the benefits of the joint venture to be appropriately analysed.

With all relationships, there can be no guarantees that things will work out perfectly. However, whether dealing with romantic or commercial relationships, taking the time to ensure that there is compatibility, clarity and shared objectives ensures there is a strong foundation to build on.

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7-9 LONG BEACH, USA

SOLAR PRAGUE

FEB 9-11 PRAGUE, CZECH REPUBLIC

LNG INVESTMENT & TECHNICAL WORKSHOP

TRAINING

FEB 13-14 ZURICH, SWITZERLAND

EGYPS 2023

FEB 13-15 CAIRO, EGYPT

7TH GREEN SHIPPING SUMMIT

FEB 15-16 ROTTERDAM, NETHERLANDS

ELECRAMA

FEB 18-22 NOAIDI, INDIA

WIND ENERGY IRELAND ANNUAL CONFERENCE

FEB 21-23 DUBLIN, IRELAND

SUBSEA EXPO

FEB 21-23 ABERDEEN, UK