OGV Energy - Issue 67 - April 2023 - Innovation & Technology

COVER SPONSOR

OGV COMMUNITY NEWS

GLOBAL ENERGY NEWS

WORLD PROJECTS MAP

MONTHLY THEME

OUR DIGITAL INDUSTRY

RENEWABLES

CONTRACT AWARDS ON THE MOVE DECOMMISSIONING

A big thank you to our front cover partner Proserv and you can read all about how they are creating radical real-time optimisation solutions for the offshore wind

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

Aiming for the sweet spot

Whena company establishes a work group to accelerate its digital push into offshore wind which is headed by its CEO, supported by its CTO and driven by its global VPs in digital innovation and renewables, it is safe to say this is a vital growth initiative for that business.

It also stands as a litmus test for how the energy industry is geared up for change in the coming years as sustainable sources, propelled by the latest technologies, must become an ever-louder voice in the conversation around provision and supply.

The fact the company in question is Proserv comes as no surprise. The global controls technology outfit has retained a laser-like focus on its pivot and realignment to the transition for a while.

A year ago, Proserv had won a landmark deal for its ECG™ holistic subsea cable monitoring system on the mega Dogger Bank Wind Farm, but fast forward 12 months and that same solution is set to be deployed on Equinor’s Hywind Scotland, the world’s first commercial floating wind asset. Meanwhile, its CEO Davis Larssen now sits on the Board of two of its closest technology partners, Synaptec and Intelligent Plant, while further alliances have been cemented with other disrupters, including real-time optimisation (RTO) start-up Ortomation.

Entrepreneurial spirit

A prime focus for Proserv is innovating independent, holistic asset-wide control and monitoring systems to deliver insights across an entire wind farm. This is R&D at the frontier and Larssen suggests Proserv is channelling all its qualities:

“One of our core values is fostering an entrepreneurial spirit. This outlook has been as important to our innovation as harnessing our heritage and reputation around control systems and harsh offshore environments. As we push further into renewables, yes, we are trusting in what we know, but equally using our natural enterprising flair to identify openings.”

To drive this, Proserv has engaged the power of partnership to fuse capabilities and expertise. Its real-time predictive data analytics SaaS offering has emerged from its work with software engineering firm Intelligent Plant and was nurtured in the familiar environment of subsea oil and gas in the waters of the Gulf of Mexico. The company has harnessed these foundations, alongside its other close collaborators

like Synaptec, Ortomation and BPP Cable Solutions, to direct an ambitious package into offshore wind.

Stuart Harvey, Proserv’s VP, Digital Innovation, says collaboration offers multiple gains, “Partnership is not just about moving into new areas of innovation, it also helps to generate best-in-class technologies whatever the specific domain. We are leveraging our agility to out manoeuvre others in the market.

“We see significant advantages in not owning all technologies and Proserv has the cultural maturity not to be held back by a ‘but it’s not built here’ bias which has led to the demise of many technology companies. The main winner with this strategy is the customer who prospers from industry-leading solutions.”

Proserv CEO Davis Larssen and VP, Digital Innovation Stuart Harvey tell OGV Energy’s Dan Hyland how the controls technology leader is innovating radical real-time optimisation solutions for offshore wind.

Hywind Scotland floating wind farm (image: ©Equinor)

One of Proserv's global facilities

A specialist disrupter

Harvey’s words fit with Proserv’s playbook where its unique and disruptive subsea controls offerings, built on best-in-class reliability, rapid bandwidths and OEM agnostic coexistence, have seen it earn a global reputation as “the industry’s controls specialist”

Identifying opportunity has been the cornerstone of Proserv’s narrative, innovating creative solutions either to remedy major industry challenges or to develop new propositions, and it is employing the same template in offshore wind. Larssen explains:

“Our attention is on actually ‘sustaining’ sustainable energy. While many OEMs are focused on building the world’s biggest turbine, what we are looking at is the real-time optimisation of performance so that wind farms with a 25-year design life can effectively extend their operational function by another ten or fifteen years. The impacts on future power generation and ROI would be immense.

“Currently, wind farms tend to be built following the same traditional models as installations in oil and gas always have been, where lowest up-front cost wins, but that leads to siloed, disconnected infrastructure making future optimisation so much harder. We are challenging that way of thinking.”

Harvey describes what Proserv is presently innovating alongside RTO expert Ortomation as a potential “leapfrog technology”:

“Optimising wind turbines is a really interesting and significant challenge for the industry. They are constantly chasing a moving target – the variable direction and speed of the wind. As a result, achieving optimisation by currently known and established modelling techniques is

very inefficient and leaves significant potential yield gains on the table.

“Our RTO solution is a self-learning application which, using live data, autonomously calculates the optimum turbine set points, essentially the sweet spot, to achieve maximum power yield across the whole field while minimising structural stress and fatigue.”

The sweet spot

Proserv’s Digital Innovation VP details how the technology can not only improve base line performance, but can also be used dynamically to support an operator’s strategic objectives:

“Most operators get nervous when you discuss optimisation with them and we fully understand why. What is unique with our philosophy is how dynamic it can be, enabling an operator to enhance power yield while monitoring remaining residual life, thus providing a safeguard, and allowing the sweet spot to be tuned further according to strategic objectives.

“If an operator chooses to maximise power yield for whatever reason during a window of opportunity, they can shift the optimiser to do exactly that and positive results will be generated in minutes. Traditional optimisation methods could never achieve that. Conversely, should an operator strategically choose to optimise their turbines more conservatively for a time, they can do that as well.”

Harvey also describes a powerful, and lucrative, benefit of asset-wide engagement:

“By implementing RTO to optimise the power yield of multiple turbines across a wind farm, an operator could effectively gain the equivalent of a free turbine for every 16 based on our initial tests. That is a new additional turbine that has no purchase, installation or operational costs.

“In my opinion, making our energy industry green and committing to sustainability means not only installing more turbines in the future, but optimising what we already have and enabling new and old turbines alike to be as efficient and as long-lasting as possible.”

Harvey stresses a collaborative culture must be prioritised between designers and suppliers to avoid the “unnecessary decommissioning of turbines if they have been controlled sub-optimally, when a technology actually exists to prevent that”.

Larssen comments that the evolving application is underpinned by Proserv’s established value proposition from its simplicity and scalability, either across specific systems or holistically over an entire asset, through to its independent OEM agnostic integration into existing architecture:

“The goal is for this RTO solution to optimise processes on multiple levels. So, we are engaging human factors engineering to simplify how key data is visualised for busy control room operatives. We are reimagining how this

information is relayed via HMIs, using multiple data points on a flat 3D plateau, so that we can also optimise human performance day-to-day.”

Like-minded partner

The likely next step for Proserv is to establish another of its innovative partnerships – but this time with an operator, asset owner or major OEM to accelerate the technology’s route to market. Larssen knows the type of collaborator wanted:

“We need a partner that buys into our philosophy around doing things differently. So, holistic asset-wide connectivity in the design phase of the next generation of wind farms, recognising the importance of life extension to expand the market and how real-time optimisation can be an enabler to doing that and to maximising revenues for the operator.”

Larssen sees the industry at a nexus right now as uncertainties involving energy security, policy and climate change interconnect with big ticket opportunities to propel innovation and local UK content.

“Offshore wind is just getting started really. Hundreds of billions of dollars are to be spent on its rollout in the next decade as the transition accelerates. That is an exciting place to be for innovators. There are challenges ahead but the UK, through projects like ScotWind, can lead the way in technology evolution, new skills and expertise development, and can transfer that know-how around the world.

“Our on-going work in RTO is equally pioneering and comes from recognising industry issues ahead of time. We have the capabilities, alongside those of our technology partners, to engineer the answers to these key questions. We are reinventing how assets will be controlled in the future.”

Providing leading controls technologies to enhance performance, optimise assets and extend life right across the energy sector.

For more information, see our website: proserv.com

Davis Larssen

Stuart Harvey

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CONTRIBUTORS

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STATS Group (STATS) is targeting growth in the Scandinavian energy sector with a new distributor arrangement with a leading equipment and services supplier.The UK-based pipeline technology specialist has strengthened ties with Stavanger’s Asset Integrity AS in a partnership to supply a range of Process Plant Solutions to clients in Norway and Sweden. STATS’s tools are well established in Scandinavia and forming a distributorship comes on the back of increased demand for services including hydrostatic weld testing tools, weldless connectors, pipe cutting equipment, pin-hole leak clamps and ambient barrier tools.

Located in Abercrombie Court, Westhill, the new facility will allow for additional growth following more than £500,000 investment to support local operations. With increased demand from existing clients to support Engineering projects across the North Sea and UKCS, the new premises allows for increased headcount whilst the firm continues to add experienced staff to the business.

Supporting activity within the oil and gas and renewables industries, large scale EPC projects are currently undertaken by the firm which employs more than 2000 personnel globally.

The official office opening saw team members from across UK and Denmark join CEO, Steen Brødbæk, for cutting the ribbon to inaugurate the office this week. Accompanying Steen during the opening presentation was Anders Benfeldt, Senior Vice President, and David Hutchinson, UK Managing Director, who will be heading up the office in Aberdeen.

David Hutchinson, comments; ”This move marks a significant milestone for us, as it not only paves the way for our continued growth but also brings us closer to many key clients and our partners at PBS”.

“The office move enhances our commitment to the Energy sector and North Sea, whilst bolstering our already successful operations across the UK.”

The Well-Safe Defender is a floating city for 110 energy workers and is currently moored quayside at the Port of Cromarty Firth in Invergordon. The AIS Survivex team got a rare opportunity to visit the Well-Safe Defender and see offshore life on a bespoke well plug and abandonment rig up-close thanks to our well decommissioning client, WellSafe Solutions.Key members of our operations, sales and marketing teams visited the Well-Safe Defender semi-submersible rig to get an insight into how training translates in the field.

Global energy consultancy Xodus has signed a Memorandum of Understanding with Daymark Energy Advisors to collaborate on advancing the development and deployment of projects in the rapidly growing North American offshore wind industry. The partnership is the first of its kind for the offshore wind consultancy market in North America. Daymark brings deep knowledge and an integrated view of onshore energy infrastructure, regulation, and markets while Xodus is a global leader in techno-commercial offshore wind development.

Aberdeen-based process safety firm, Salus Technical, has secured a significant training course contract from oil and gas exploration and production company, Serica Energy. Salus will share the recently launched online process safety course with Serica Energy’s UK workforce, with 250 delegates signed up to complete the course. A small group from Serica Energy completed a successful trial of the ‘Process Safety Awareness’ course before committing to the on-demand training which is accessible over a three-year period.

Polaris Learning and Praesidio were delighted to work with a team of managers from UTEC to complete a two day Developing Resilience programme. UTEC, a provider of a wide range of survey, positioning and data management services, undertook the programme to complement its current leadership programme. UTEC is a Geo-services brand in Acteon’s Data and Robotics division. Trevor Moore, Group Offshore Resources Manager, completed the programme with his colleagues, following his lunch and learn experience with Praesidio and Polaris Learning held in December 2022.

EthosEnergy has been awarded a Long-Term Service Agreement (LTSA) for gas turbine maintenance, inspection, and repair services by Global Power Synergy Public Company Limited (GPSC) – one of the leading power generation companies in the AsiaPacific region (APAC). The LTSA runs for 12 years and starts in Q1 of 2023. The LTSA covers eight GE Frame 6B gas turbine units at two cogeneration power plants in Rayong: Central Utility Plants 1 and 2 (GPSC CUP-1 and GPSC CUP-2). These plants use natural gas as a main fuel and supply power and steam to the Electricity Generating Authority of Thailand (EGAT).

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Developing Resilience with UTEC, Polaris Learning and Praesidio

Semco Maritime office relocation in Aberdeen

Salus Technical secures £55k training course sign-up from Serica Energy

EthosEnergy cements long-term partnership with GPSC

Xodus and Daymark sign North America offshore wind MOU

Don’t look down! AIS Survivex gets rare insight into life onboard a decommissioning rig

STATS Group target Scandinavian energy asset integrity sector with distributor deal

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UK NORTH SEA Energy Review

By Tsvetana Paraskova

Offshore Energies UK (OEUK) expressed disappointment by the Spring Budget statement’s lack of recognition for oil and gas as the key pillar in UK energy security – providing 75% of the nation’s energy. The biggest UK offshore industry body praised new support for carbon capture and storage (CCS) as part of a longer term approach, but is calling for engagement from the UK government with energy companies. OEUK is ready to work in partnership with all parties to boost energy investment and to meet with ministers in the coming weeks to deliver the energy transition whilst maintaining energy security, the association said.

“While we welcome the support for decarbonisation and carbon capture and storage, the UK risks becoming a hostile environment for wider investment in domestic offshore energy. We must work together to make the most of our homegrown industry and use this as the platform for a low carbon future,” OEUK CEO David Whitehouse commented.

A new independent report commissioned by the Scottish Government showed that “Scotland will need to carefully manage the decline in O&G alongside the growth of the new low carbon sector to minimise any negative impacts of transition on society and the economy.”

A faster decline in production than current forecasts is more likely to increase Scottish oil and gas imports unless affordable low carbon replacement technology is available to meet consumers’ expectations, according to the report.

Continues >

The UK’s energy security and windfall tax continue to be major topics for the UK North Sea industry, which also saw acquisitions and projects advanced over the past month.

Commenting on the report, Jenny Stanning, OEUK’s external relations director, said,

“This new independent analysis shows accelerating the decline of North Sea oil and gas production could increase Scotland’s emissions because we’d simply import more. It’s why we remain concerned about the Scottish Government’s draft plan, which suggested accelerating the decline of Scottish oil and gas production.”

“More broadly, this independent analysis shows the Scottish economy is set to lose £11 billion per year under existing Scottish Government transition plans. Scotland will be poorer under these plans and we cannot allow this to happen.”

The UK’s energy import bill surged to £117 billion last year, more than double from the 2021 total of £54 billion, according to data in OEUK’s Business Outlook Report.

It is the first time UK annual energy import costs have broken the £100 billion barrier. The report warns that UK consumers and businesses could face similar import bills in this and future years – especially if the windfall tax imposed on UK oil and gas operators remains unchanged.

At a debate on the energy trilemma in the House of Commons at the end of March, OEUK made a case for new investment in the UK’s energy production.

“As we build that future there is no simple choice between oil and gas or renewables. The reality is we need both,” OEUK’s Whitehouse said.

“In the mid-2030s, oil and gas will still provide 50% of our energy needs. By investing in homegrown production we avoid costlier, less secure and higher carbon imports while supporting an industry we need to make cleaner, more affordable energy in the UK, for the UK,” he added.

In response to the Innovation and Targeted Oil and Gas (INTOG) leasing round, designed to enable offshore wind energy to directly supply offshore oil and gas platforms with renewablegenerated electricity, Whitehouse said,

“By the mid-2030s oil and gas will still provide half our energy needs, so supplying as much of this demand as possible from domestic production will help to control import emissions while protecting the critical skills and jobs needed for the energy transition. It’s therefore essential that the oil and gas we use during that time is produced as sustainably as possible, and electrification will be one of many solutions needed to make that happen.”

The North Sea Transition Authority (NSTA) said in a report that flaring in the North Sea halved between 2018 and 2022. North Sea flaring has been cut in half following four consecutive years of reductions driven by tough measures to make UK oil and gas production cleaner, according to the NSTA analysis.

Offshore flaring fell again in 2022, by 13% to 22 billion cubic feet (bcf) of gas, contributing to a total decrease of 50% since 2018, when volumes totalled 44 bcf.

Last year’s reduction alone was equivalent to the gas demand of 80,000 UK homes, a boost for the UK’s energy security and net zero ambitions, NSTA said.

“The NSTA expects reductions to continue and remains firmly focused on both supporting and challenging industry on emissions, including from flaring and venting,” said Hedvig Ljungerud, NSTA Director of Strategy.

The authority said at the end of March that it was investigating an oil and gas company for possibly failing to meet licence commitments designed to stimulate activity, in support of the UK’s energy security. The investigation will look into whether the company met its seismic survey and work programme commitments.

The UK fiscal regime – with the hike in the Energy Profits Levy (EPL) which took the headline tax rate for UK oil and gas producers to 75% – could accelerate an exodus of rigs from the North Sea, Westwood Global Energy Group said in a report at the end of March.

Despite improving North Sea rig market fundamentals last year, rigs were being enticed abroad by jobs with longer durations and higher day rates, and this trend will likely continue this year, as well, says Teresa Wilkie, Research Director at Westwood’s RigLogix service.

Rig demand in the North Sea has struggled to recover from the 2014 price crash, Westwood noted.

“The added fiscal volatility from the UK will further challenge any previously anticipated recovery expected from the rising commodity prices, as has been the case in many other areas of the world that have seen increased rig demand, utilisation and dayrates,” Wilkie wrote.

In company and project news, Equinor has signed an agreement to buy the UK operations of Canada’s Suncor Energy for $850 million. The deal includes a non-operated interest in the producing Buzzard oil field (29.89%), an additional interest in the Equinor-operated Rosebank development (40%), and Suncor employees based in the UK who work with these assets.

The UK Energy Profits Levy has “all but wiped out our profit for the year,” the UK’s largest oil and gas producer, Harbour Energy, said in its 2022 results release.

In the first full year as a listed company, Harbour Energy delivered materially higher production and improved margins.

“However, the UK Energy Profits Levy, which applies irrespective of actual or realised commodity prices, has disproportionately impacted the UK-focused independent oil and gas companies that are critical for domestic energy security. For Harbour, the UK’s largest oil and gas producer, it has all but wiped out our profit for the year,” CEO Linda Cook said.

“This has driven us to reduce our UK investment and staffing levels. Given the fiscal instability and outlook for investment in the country, it has also reinforced our strategic goal to grow and diversify internationally.”

IOG plc also criticised the EPL in its 2022 results announcement, saying that

“The introduction, swiftly followed by the extension, of the Energy Profits Levy (EPL) presents clear risks to upstream investment and industry competitiveness.”

“The 75% marginal tax rate, without price floors or allowances for smaller projects, is now effectively one of the world's most punitive fiscal regimes. While the ultimate amounts to be paid will depend on our production volumes, realised gas prices and the size and nature of future investments, these accounts reflect a 2.2 p/share value impact for IOG.”

ICR Integrity, a provider of specialist repair, inspection and integrity solutions, has announced the re-award of their Master Service Agreement (MSA) with Petrofac valued at over £1 million a year following a successful tender exercise. The MSA was initially awarded in 2019, as a result of ICR’s partnership with Petrofac delivering specialist repair and inspection services for all duty holder assets in the North and Southern North Sea, with the purpose of strategically aligning the various ICR services delivered to Petrofac under a single cross-asset agreement.

Specialist drilling waste management company TWMA has secured a seven-figure contract with a major North Sea oil and gas operator. The award will see TWMA deploy its RotoMill® technology on a harsh environment semisubmersible unit in the Central North Sea.

IOG plc announced that the Blythe H2 well was spudded in early March, and is expected to take approximately three months to drill, complete and hook-up, subject to the usual offshore operational risks to scheduling.

“The Blythe H2 well has the potential to significantly enhance our current production levels, reduce water production into the pipeline and minimise associated opex. It also has fast payback potential and will enable us to boost cash flow from mid-2023,” said IOG chief executive Rupert Newall.

Well-Safe Solutions will support the decommissioning of two suspended wells in bp’s Kate field in the North Sea, 220 kilometres from Aberdeen. The programme of work, expected to be executed from the Noble Innovator jack up vessel during the second quarter of 2023, will see Well-Safe Solutions carry out well engineering support services using its bespoke Well Decommissioning Delivery Process (WDDP).

Prax Exploration & Production and Hurricane Energy announced in mid-March that they had reached agreement on the terms of a recommended acquisition of the entire issued and to be issued ordinary share capital of Hurricane by Prax. The acquisition values the entire issued ordinary share capital of Hurricane at around £249 million.

Hartshead Resources has entered into an agreement with Shell on the key commercial terms for the transportation and processing of Hartshead’s Phase I gas field production via Shell’s Southern North Sea infrastructure. Gas will be transported to the Shell infrastructure via a planned, Hartshead-owned pipeline and subsea connection.

BRENT OIL PRICE APR 2023 - $78.19

YEAR AGO 1

- BRENT OIL PRICE 2022 - $105.49

Oil prices fell sharply in April last year, partly due to fears Beijing would soon join Shanghai in a damaging COVID lockdown. Analysts suggested the bulk of the oil price falls, which would provide some relief at UK fuel pumps, were down to expectations of a slump in demand.

THE SOCIAL STRATEGIST

By Eric Doyle

Marketing – Sales – Operations – Accounts

Let’s call this the ‘commercial engine’ and imagine a company that uses it well. They have products and services that are required in particular sectors, they know this as organisations within those sectors buy their products and services and they have competitors in the same industry. They have solid evidence of market need, and commercial history to support it.

They have a basic but effective commercial engine.

YEARS

- BRENT OIL PRICE 2018 - $74.62

It was suggested that oil markets were underestimating the impact that a collapse of the Iran nuclear deal, and the re-imposition of U.S. sanctions on Iran, could have on prices. It was believed that at least 250,000 to 350,000 barrels of Iranian crude a day could be a risk –potentially causing Brent to rise to “anything north of $80.”

YEARS AGO 10

- BRENT OIL PRICE 2013 - $97.48

The price of brent crude oil was expected to fall throughout the year due to an increasing supply of fuels from nonOPEC countries. However, OPEC nations continued to overshadow the world in terms of reserves, holding more than 80% of the world’s proven oil reserves, with the bulk being in the Middle East.

Every year they create a sales and marketing plan. Each of the stakeholders are involved: the management team, operations, HSEQ, materials, HR, accounts, marketing, and sales.

They look at past performance data, market trends, project data and growth ambitions. They create a commercial plan that combines all of their Sales, Marketing and Operational activity. It is designed to suit the organisations capacity and capability, and they agree on an element of achievable stretch.

Sales and Marketing go away and develop campaigns that suit the plan and present these to the team – they agree and put the plan into play.

Marketing start to run the new year’s campaigns: From advertising, webinars, website focus and directory’s/listings to vents, emailing and social media….among other activities. All designed to grab attention, to create interest and demand.

The organisation is watching and ready to move…Sales, Operations and Accounts...ready Marketing begins to receive market feedback - Insight data and enquiries – now the leads element of the commercial engine is firing up.

They are filtering this information to pass onto Sales as Marketing Qualified Leads.

They enter all this data into the company CRM so that Sales, Operations and Accounts have full visibility.

Sales take these leads and begin the process of converting them into conversations. They are setting up meetings to understand the prospects needs, forming relationships, considering solutions…. and the proposal / tender element of the commercial engine starts to fire up.

All of this is logged in the CRM system so Marketing, Operations and Accounts are aware of what may be coming through the pipeline…

Proposals are accepted, tenders are won and Sales are now handing purchase orders over to Operations – the delivery part of the commercial engine is firing into life.

Operations are working with Accounts on invoicing, so they have full visibility on payments dates and values.

Accounts receive payment from the clients and update the financial forecasts against the plan.

The cycle continues and this team are working hand in hand to tune their commercial engine to suit market peaks or troughs.

A basic but effective commercial engine supported by all of the other functions within the business. HR, HSEQ, R&D, CONTRACTS etc –with marketing at the leading edge, providing the fuel for this engine.

Too simple, too naïve to believe that organisations can work like this...?

Why...? Many organisations already work like this… However, we often we find that these critical elements of a well-functioning commercial engine work in relative isolation.

We meet organisations where marketing has been marginalised, working without visibility of the overall plan…typically in reaction mode to ‘stuff’ that Sales or Operations need throughout the year. Working with blinkers on…

We regularly find organisations where Sales rarely speak with Marketing unless they needed a brochure, business cards or some give-aways for a show.

The commercial engine starved of fuel and the responsibility for creating demand left to Sales, who are too busy trying to get meetings and wade through unqualified information to create anything of any real commercial value.

The commercial engine spluttering and stalling…

The relationship between Marketing, Sales, Operations and Accounts is crucial – working together and driving forward.

It’s time we all realised that our marketing leads the way in creating demand for our products and services and is the fuel that keeps the engine running….and in 2023 a huge part of ‘leading that way’ is accessed through Digital channels and Social Media…

Is your commercial engine firing on all cylinders or does it need a tune up for the Digital and Social age..?

Let’s imagine the most basic of all commercial models.

Eric Doyle is the Managing Director of The OGV Studio, a Digital Media Strategy company whose mission is to Energise your Media for growth. Eric is a Fellow of the Institute of Sales Professionals.

“GOOD MEDIA MAKES PEOPLE VISIBLE, GREAT MEDIA MAKES THEM THE LEADERS IN THEIR SECTORS...”

Europe Energy Review

Oil and gas discoveries and new projects offshore Norway, UK policies to support the development of low-carbon energy solutions, and progress in major clean energy projects featured in Europe’s energy sector over the past month.

Oil & Gas

Equinor is strengthening its presence in the northern North Sea by signing an agreement to buy equity interest in five discoveries in the Troll, Fram and Kvitebjørn area in the North Sea on the Norwegian continental shelf (NCS) from Wellesley Petroleum AS.

“With this transaction, we strengthen our position in one of our core areas on the Norwegian continental shelf. These discoveries can be put into production

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with low costs and low CO2 emissions by being connected to the suitable infrastructure in the area,” said Kjetil Hove, Executive Vice President for Exploration and Production Norway.

Equinor has also welcomed OKEA as a new partner in the Statfjord area, after entering into an agreement to sell a 28% working interest in PL037 (Statfjord area) to OKEA with an effective date 1 January 2023. Following the transaction with OKEA, Equinor will have a 54.7% working interest and remain the operator of the Statfjord field.

Equinor made in March its second oil and gas discovery near the Troll field in the North Sea this year, for the eighth discovery in the area since 2019. The volumes at the discovery, named Heisenberg, are estimated at between 24 and 84 million barrels of oil equivalent, with slightly more oil than gas.

The discovery is considered commercially interesting, partly because it can utilise existing infrastructure connected to the Troll B platform. However, an appraisal well, to be drilled next year, is needed to get a more precise estimate of the size before it can be concluded whether the volumes can be recovered, Equinor said.

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Aker BP has successfully started production from the Frosk field development in the Alvheim area, on schedule and within budget, only 18 months after the Plan for Development and Operation (PDO) was submitted. The Frosk field is tied back to Alvheim FPSO in the North Sea via existing subsea infrastructure and utilises existing capacity in the processing facilities with only a marginal increase in power consumption and CO2 emissions.

Aker BP also informed Norway’s Ministry of Petroleum and Energy that it would be moving ahead with nine out of ten projects submitted for approval in December 2022. The Troldhaugen project in the Edvard Grieg area, which represents around four per cent of the net estimated resources in the ten projects, has been discontinued as it is no longer considered to have sufficient financial robustness, the company said.

Low-Carbon Energy

Crown Estate Scotland announced at the end of March the results of INTOG (Innovation and Targeted Oil & Gas) leasing, the world’s first leasing round designed to enable offshore wind energy to directly supply offshore oil and gas platforms.

By Tsvetana Paraskova

Kjetil Hove, Executive Vice President for Exploration and Production Norway. Image: upstreamonline.com

Thirteen 13 projects out of a total of 19 applications - five for IN and eight for TOGhave been offered Exclusivity Agreements. Crown Estate Scotland will offer a seabed lease of 50 years for TOG projects and 25 years for IN projects. The lead applicants that have been offered Exclusivity Agreements include Bluefloat Energy/Renantis Partnership, Simply Blue Energy, BP Alternative Energy Investments, ESB Asset Development UK, Flotation Energy, Cerulean Winds, TotalEnergies, and Harbour Energy.

The UK government is offering £205 million in its latest renewables auction for this year’s Contracts for Difference scheme. The fifth CfD allocation round is the first CfD auction to run annually.

UK Chancellor of the Exchequer Jeremy Hunt allocated up to £20 billion of support for the early development of carbon capture, utilisation and storage (CCUS), starting with projects from the East Coast to Merseyside to North Wales – paving the way for CCUS everywhere across the UK as we approach 2050.

“This will support up to 50,000 jobs, attract private sector investment and help capture 20-30 million tonnes of CO2 per year by 2030,” Hunt said in his Spring Budget 2023 speech.

Crown Estate Scotland and The Crown Estate have launched the first round of formal engagement with developers on CCUS. The two organisations have issued a joint survey to industry stakeholders to explore and understand market requirements for future seabed and subsurface carbon store development. Feedback will be shared with the North Sea Transition Authority (NSTA), which is responsible for carbon capture licensing, and the two organisations will publish an anonymised summary of the main findings.

RenewableUK said that the Spring Budget was not enough to mobilise investment at scale in renewable energy.

“Overall we need a much bigger response to match the incentives being offered to renewable energy developers by the US and the EU – this wasn’t forthcoming today,” RenewableUK’s Executive Director of Policy and Engagement Ana Musat said.

Ports in the UK need development and upgrades as soon as possible to ensure they are ready for mass floating wind deployment by the end of this decade, RenewableUK said in March, commenting on a report on Britain’s floating offshore wind opportunities.

“There is a huge opportunity for the UK to show international leadership in the race to deploy this new technology at scale, however it is clear from our own dialogue with developers and ports that this must go hand in hand with the rapid establishment of a new supply chain and upgrading ports,” Nicola Clay, Head of New Ventures at The Crown Estate, said.

The UK needs to do much more in terms of policy and development to achieve a reliable, secure, and decarbonised power system by

2035, a new report by the Climate Change Committee (CCC) showed. Such a system is possible, but not at this pace of delivery, the committee said.

In company and project news

carbon energy to power 93,000 homes, is part of the first phase of a 4 GW renewable energy development in the Celtic Sea, enough to power for 4 million homes.

UK’s Geothermal Engineering has secured £15 million funding from Kerogen Capital and Thrive Renewables to expand the development of deep geothermal electricity and heat production in the UK. The investment will fund the UK’s first deep geothermal plant at United Downs site in Cornwall. In total, the investment will help to initiate 25 MWe of renewable electricity and 100 MWth of renewable heat across GEL’s portfolio by 2028. Equinor has awarded Ocean Installer a contract for installation of dynamic inter-array cables on Hywind Tampen in Norway, the world’s largest floating wind farm and the first related to the electrification of Oil and Gas assets. The wind farm is estimated to meet about 35% of the annual electricity power demand of the five platforms at Snorre A and B, and Gullfaks A, B and C.

Ørsted has appointed Havfram Wind to install turbines at its Hornsea 3 offshore wind farm, starting autumn 2026. Hornsea 3 will consist of up to 231 offshore wind turbines, located within a 696-square-kilometre area, approximately 120 km off the Norfolk coast and 160 km off the Yorkshire coast. With a capacity of 2,852 MW, Hornsea 3 will be capable of producing enough low-cost, clean, renewable electricity to power over 3 million UK homes.

SSE says it is providing a £100 million investment boost into what can be Britain’s biggest pumped hydro storage scheme in 40 years. Located on the shores of Loch Lochy, between Fort William and Inverness, the Coire Glas project is expected to require a capital investment of over £1.5 billion to construct and, if approved for final delivery, would be the first pumped hydro storage scheme to be built in the UK in 40 years. Coire Glas could power 3 million homes and more than double GB electricity storage.

Energy firm Drax is progressing plans to build a new 600 MW underground plant adjacent to its existing underground Cruachan facility in Argyll, Scotland, and has hired hydro engineering consultants Studio Pietrangeli to optimise the plans.

Lhyfe and Centrica have agreed to jointly develop offshore renewable green hydrogen in the UK in a first for the country. The companies have signed a memorandum of understanding (MoU) to explore combining their expertise to collaborate on a pilot green hydrogen production site in the Southern North Sea.

The First Minister of Wales, Mark Drakeford, visited TotalEnergies’ French headquarters in Paris to discuss TotalEnergies’ 100 MW Erebus floating wind project and wider opportunities of floating wind in the Celtic Sea. Erebus will be Wales’ first floating windfarm 40 kilometres off the Pembrokeshire coastline and Blue Gem Wind, and is on target to begin operating in 2026. Project Erebus, expected to provide enough low

“Securing this work is a key step in delivering Ocean Installer’s strategy of leveraging our extensive marine construction experience from complex Oil and Gas projects to enter the floating wind market,” said Ocean Installer’s CEO Kevin Murphy.

Sval, Storegga, and Neptune Energy have applied for a CO2 storage licence in the Norwegian North Sea. The project, called Trudvang, has the potential to store up to 225 million tonnes of CO2. The application comes after the Norwegian Ministry of Petroleum and Energy on 11 January 2023 announced a new area in the North Sea for applications related to injection and storage of CO2.

bp launched at the end of February the green hydrogen cluster of the Valencia region (HyVal) at its Castellón refinery. Led by bp, the publicprivate collaborative initiative is intended to be based around the phased development of up to 2 GW of electrolysis capacity by 2030 for producing green hydrogen at bp’s refinery. HyVal is expected to play an instrumental role in decarbonizing the operations of bp’s Castellón refinery. Its transformation - including green hydrogen, biofuels and renewable energy - could see bp invest a total of up to 2 billion euro in Castellon by 2030.

bp pulse and APCOA Parking Group, the UK’s leading provider of tailored parking solutions, have signed a strategic pan-European frame agreement to open more than 100 EV fast charging hubs across Europe, bp said in early March. Under the agreement, bp pulse plans to install ultra-fast charging at APCOA car parks – ‘Urban Hubs’ – in Germany, Austria, Belgium, Luxembourg, The Netherlands, Poland, and the UK over the next three years to help expand its charging network in city centres and further accelerate urban e-mobility infrastructure throughout Europe.

bp has also signed a strategic collaboration agreement with Iberdrola to help accelerate the decarbonisation of transport. The companies plan to invest up to 1 billion euro in deploying up to 11,000 fast-charge points across Spain and Portugal by 2030.

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Energy Review

By Tsvetana Paraskova

The US oil and gas sector saw major projects approved over the past month while the industry continues to call for a lasting, bipartisan permitting reform that would unlock more domestic energy resources.

Biden administration approves Willow project in Alaska

The Biden Administration approved in March ConocoPhillips’ Willow oil project in the National Petroleum Reserve-Alaska (NPR-A), allowing three out of five proposed drill sites. The scaled-down project would be profitable and will work, the company and analysts say.

ConocoPhillips welcomed the decision, saying that it continues to review the Department of the Interior’s Record of Decision (ROD) and would advance internal approval processes towards a Final Investment Decision.

“Willow fits within the Biden Administration’s priorities on environmental and social justice, facilitating the energy transition and enhancing our energy security, all while creating good union jobs and providing benefits to Alaska Native communities,” said ConocoPhillips chairman and CEO Ryan Lance.

The Willow project is expected to produce 180,000 barrels of oil per day at its peak, decreasing American dependence on foreign energy supplies, ConocoPhillips says. The project is set to deliver between $8 billion to $17 billion in new revenue for the federal

government, the state of Alaska, and North Slope Borough communities.

Even with a three-well pad development instead of the five-pad project ConocoPhillips had sought, Willow would be economically viable, consultancy Wood Mackenzie said.

“ConocoPhillips has frequently said that anything less than the “Alternative E” project scope for three well pads would render the Willow project uneconomic. Our independent economic model substantiates that claim,” said Mark Oberstoetter, head of Americas (non-L48) upstream for Wood Mackenzie.

“With Willow joining other projects like Pikka, new pads at Milne Point, Narwhal, Nuna and Coyote, we see production returning to 700,000 b/d by 2030, levels last seen in 2008. Without production from Willow and these other new projects, the Trans Alaska Pipeline System (“TAPS”) would eventually run into low flow issues, jeopardising all production coming from the North Slope,” Oberstoetter added.

In addition, Wood Mackenzie projections suggest Willow’s Scope 1 and 2 emissions intensity would be lower than other Alaska projects, and lower than many of the current sources of US oil imports.

The project approval was welcomed by the oil and gas industry and slammed by environmental campaigners.

The American Petroleum Institute (API) and North America’s Building Trades Unions (NABTU) welcomed the approval of the project.

“The approval of critical energy infrastructure investments like Willow is essential to strengthening U.S. energy security and creating new economic opportunities across the country. Our organisations appreciate the support shown by the President to safeguard national energy security while securing middle class sustaining employment opportunities that will drive our country forward as we transition to a sustainable future derived from our vast energy resources,” API President and CEO Mike Sommers and NABTU President Sean McGarvey said in a joint statement.

Energy Workforce & Technology Council President Tim Tarpley also welcomed the news but also called for a streamlined approval process.

“Investments in domestic energy, including oil and gas, are essential for our economic and national security and that of our allies. However, the process for approving these projects must be streamlined, and not take a decade to decide, shorting our nation of vital energy resources,” Tarpley said.

While the industry applauded the decision, environmental organisations were disappointed with President Joe Biden breaking a key campaign pledge not to allow new drilling on federal land.

People vs. Fossil Fuels, a national coalition of over 1,200 frontline, climate justice, and progressive organisations, strongly condemned the Biden Administration for its decision to approve the Willow Oil Drilling Project.

“Biden’s presidential powers allow him to reject all new fossil fuel projects and declare a climate emergency that would ensure the survival of our communities and our planet. Instead, he is choosing to fatten the wallets of Oil CEOs by expanding fossil fuel infrastructure that will drive us further into climate chaos,” the coalition said.

Friends of the Earth also slammed the decision, with Raena Garcia, Fossil Fuels and Lands Campaigner for the organisation, saying that “President Biden’s approval of the Willow project is a colossal and reprehensible stain on his environmental legacy.”

“While the Administration sides with Big Oil and exploitation of our public lands, we will keep fighting until this project is stopped dead in its tracks,” Garcia added.

Another US LNG export reaches FID

Venture Global LNG announced in March a final investment decision (FID) and successful closing of the $7.8 billion financing for Plaquemines Phase Two LNG project, the first US LNG project to take FID in 2023.

The company also issued a full notice to proceed to KZJV to continue construction on phase two of Plaquemines LNG.

“Investments in domestic energy, including oil and gas, are essential for our economic and national security and that of our allies. However, the process for approving these projects must be streamlined, and not take a decade to decide, shorting our nation of vital energy resources,”

“Venture Global is proud to announce a positive Final Investment Decision (FID) for phase two of Plaquemines LNG, less than 10 months after sanctioning phase one,” said Mike Sabel, CEO of Venture Global LNG.

Together, phase one and phase two represent approximately $21 billion of investment, the largest project financing ever done.

Policy issues in US oil & gas industry

Several Republican Senators sent a letter to US Ambassador to Japan Rahm Emanuel in early March, urging the Biden Administration to publicly support the export of abundant US natural gas to America’s allies in Europe and Asia, particularly Japan, which has prioritised energy security in its term leading the G7.

“Excessive restrictions on public financing of gas projects and unnecessary delays in approving privately-financed projects impede the development of critical infrastructure to expand output and exports,” the Senators wrote in the letter.

“These impediments must be addressed immediately, as U.S. allies and partners continue to face energy insecurity, with many forced to increase reliance on or return to higher-emitting energy sources.”

The American Petroleum Institute, National Association of Manufacturers, and American Clean Power Association sent in March a letter to United States Trade Representative Katherine Tai calling for continued action to hold Mexico accountable for its discriminatory energy policies by using every tool available under the U.S.-Mexico-Canada Agreement (USMCA).

Measures like Mexico’s holdup in the issuance of permits for energy activities undercut US companies and can restrict the supply of energy that North American manufacturers and consumers need, the trade groups say.

“The Government of Mexico’s escalating pursuit of discriminatory policies dramatically favors Mexico’s state-run electrical utility and state-run oil and gas companies, hindering private sector investment, threatening companies in the United States and their workers, and undermining North American energy integration and our regional competitiveness vis-à-vis China and other rivals,”

“The Government of Mexico’s escalating pursuit of discriminatory policies dramatically favors Mexico’s state-run electrical utility and state-run oil and gas companies, hindering private sector investment, threatening companies in the United States and their workers, and undermining North American energy integration and our regional competitiveness vis-à-vis China and other rivals,” the letter states.

API President and CEO Mike Sommers expressed support for the Lower Energy Costs Act, a bipartisan proposal that could help ensure meaningful action on permitting reform to unlock more domestic oil and gas supplies.

“Real, lasting change comes from bipartisan, common-sense, economically-sound solutions,” Sommers writes in a letter to House Speaker Kevin McCarthy and House Democratic Leader Hakeem Jeffries.

“We all share the common goals of providing reliable energy to Americans; enhancing our energy security; cementing our energy independence for years to come; and making energy safer, cleaner, and more affordable.”

Energy Workforce & Technology Council President Tim Tarpley

API President and CEO Mike Sommers

MIDDLE EAST Energy Review

By Tsvetana Paraskova

OPEC, led by its biggest producers in the Middle East, raised its demand forecast for Chinese oil consumption this year, while the world’s biggest oil firm by both production and market capitalisation, Saudi Aramco, reported a record profit for 2022 and a record for any oil company ever.

OPEC sees higher Chinese oil demand

OPEC left in the middle of March its estimate for global oil demand growth this year unchanged from the February assessment, but raised slightly its forecast for China’s demand.

“In the emerging economies, China’s reopening, following the lifting of the strict zero-COVID-19 policy, will add considerable momentum to global economic growth,” OPEC said in its Monthly Oil Market Report (MOMR) for March in the middle of the month, when global financial markets were roiled by concerns about the health of the banking sector in the United States and Europe.

China’s oil demand is expected to average 15.56 million barrels per day (bpd) in 2023, up by 710,000 bpd compared to 2022, according to OPEC’s latest estimate. The forecast is higher than the 590,000-bpd growth expected in OPEC’s report for February.

“A stronger-than-anticipated rebound in China, with consumption accelerating significantly, following years of stringent lockdown measures, is another factor to be considered,” the organisation said, commenting on the upsides and downsides for global oil demand this year.

Saudi Arabia raises oil prices to Asia again

Amid expectations of rising demand in China, Saudi Arabia’s oil giant Aramco, the world’s single largest crude oil exporter, raised its official selling prices (OSPs) for its crude loading for Asia in April, for a second consecutive month of an increase in prices.

Thus, Saudi Arabia’s flagship Arab Light crude will sell in April in Asia for $0.50 per barrel more than in March. The increase in prices was the second consecutive month with higher prices for Saudi crude loading for Asia. The price hike in February for the March prices came as a surprise to the market as it was the first time in six months that Aramco had hiked prices for its crude.

Saudi Aramco Books Record Profit for 2022

Meanwhile, Aramco, the world’s biggest oil firm by market capitalisation and production, reported in March a record-breaking net profit for 2022.

Aramco announced a full-year 2022 net income of $161.1 billion — its highest annual profits as a listed company, thanks to stronger crude oil

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MIDDLE EAST

prices, higher volumes sold, and improved margins for refined products. The net income jumped by 46.5% from $110 billion in 2021. Free cash flow also hit a record, at $148.5 billion in 2022, compared to $107.5 billion FCF generated in 2021.

Aramco also declared a fourth quarter dividend of $19.5 billion, to be paid in the first quarter of 2023. This represents a 4.0% increase compared to the previous quarter, aligned with Aramco’s dividend policy aiming to deliver a sustainable and progressive dividend, the company said.

Capital expenditure also rose last year, by 18% annually to $37.6 billion. Aramco expects capital expenditure in 2023 to be even higher—at between $45 billion and $55 billion including external investments, with capex increasing until around the middle of the decade.

The company says it continues to boost its oil and gas production capacity, as well as its downstream portfolio, to meet anticipated future demand. The Saudi giant aims to have an oil production capacity of 13 million bpd by 2027, as mandated by the government. The Marjan and Berri crude oil developments are expected to add production capacity of 300,000 bpd and 250,000 bpd, respectively, by 2025. Other projects to boost capacity include Zuluf and Dammam and they are also expected to increase Saudi Arabia’s production capacity by 2027, Aramco said.

“Ultimately, we believe the world will continue to need oil and gas for the foreseeable future. Indeed, the future will most certainly favor the lowest-cost, least carbon-intensive producers, and Aramco is exceptionally well-placed in this respect,” Yasir Al-Rumayyan, Chairman of the Board of Directors, said in a statement in the results release.

While praising the record results, Aramco’s president and chief executive officer Amin Nasser warned once again that the world could be sleepwalking into an oil supply crisis if investments do not increase soon.

“Given that we anticipate oil and gas will remain essential for the foreseeable future, the risks of underinvestment in our industry are real — including contributing to higher energy prices. To leverage our unique advantages at scale and be part of the global solution, Aramco has embarked on the largest capital spending program in its history, and last year our capex rose by 18.0% to reach $37.6 billion,” Nasser said.

“Our focus is not only on expanding oil, gas and chemicals production, but also investing in new lower-carbon technologies with potential to achieve additional emission reductions — in our own operations and for end users of our products,” Aramco’s top executive added.

Aramco has signed a letter of intent to become a potential minority stakeholder in a new powertrain technology company, to be established by Geely Holding Group and Renault Group. The new company will develop internal combustion and hybrid powertrain technologies.

Deals and ADNOC gas IPO

In recent weeks, Aramco has also signed several agreements to explore and develop opportunities in lower-carbon technologies.

Aramco has signed a letter of intent to become a potential minority stakeholder in a new powertrain technology company, to be established by Geely Holding Group and Renault Group. The new company will develop internal combustion and hybrid powertrain technologies. A potential Aramco investment would support the growth of the company, and contribute to key research and development across synthetic fuels solutions and nextgeneration hydrogen technologies. The new company aims to have an annual production capability of more than five million internal combustion, hybrid, and plug-in hybrid engines and transmissions per year.

“This partnership with Aramco will raise our joint powertrain company together with Geely Group to the next level and give it a head start in the race towards ultra-low-emissions ICE powertrain technology,” said Luca de Meo, CEO of Renault Group.

Daniel Li, CEO of Geely Holding Group, said, “The proposed investment by Aramco represents recognition from global industry leaders in the PWT’s future business prospects and vision for pioneering low and carbon-free fuels such as methanol and hydrogen.”

Aramco also signed an agreement with Linde Engineering to jointly develop a new ammonia cracking technology. The collaboration will combine Linde Engineering and Aramco’s experience and capabilities in industrial research and development, lower-carbon hydrogen, and ammonia cracking technology.

Through this agreement, Aramco and Linde Engineering plan to build a demonstration plant in northern Germany to showcase the new ammonia cracking technology. Linde Engineering intends to offer this technology to current and new customers, creating new commercial opportunities within the global lower-carbon energy supply chain, Aramco said in a statement.

In the United Arab Emirates (UAE), the gas unit of Abu Dhabi National Oil Company (ADNOC) debuted on the Abu Dhabi Securities Exchange (ADX) on 13 March, having raised $2.5 billion by selling 5% in an initial public offering.

The IPO of ADNOC Gas was the largest-ever listing on the Abu Dhabi Securities Exchange and the largest IPO globally to date in 2023, one of the advisers, Gibson, Dunn & Crutcher LLP, said.

The IPO was more than 50 times oversubscribed in aggregate, while the retail offering, which attracted the largest-ever demand in a MENA IPO, was over 58 times oversubscribed. ADNOC Gas’ debut on the ADX implied a market capitalisation of around $50 billion.

“Ultimately, we believe the world will continue to need oil and gas for the foreseeable future. Indeed, the future will most certainly favor the lowest-cost, least carbon-intensive producers, and Aramco is exceptionally well-placed in this respect,”

Yasir Al-Rumayyan, Chairman of the Board of Directors, said in a statement in the results release.

ENERGY PROJECTS MAP

SENEGAL

Greater Tortue-Ahmeyim Phase 2BP

$2 billion

Sval, and its partners, Storegga and Neptune have applied for the Trudvang storage licence in the Norwegian North Sea. The carbon capture and storage project will involve the capture of CO2 by multiple industrial emitters across Northern Europe and the UK, followed by liquefaction and shipping of the liquid CO2 from individual export terminals to an onshore receiving terminal in the south-west of Norway. The CO2 will then be transported via a purpose-built pipeline to Trudvang, where it will be injected and permanently stored in the Norwegian North Sea.

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COLOMBIA

Tayrona Block – Orca & Uchuvu Discoveries

Petrobras

$1.5 billion

Petrobras' US$6bn exploration budget for 2023-2027 includes drilling activities at the Tayrona block. The operator is looking to restart drilling activities on the block in 2024, which will comprise of two well campaign and include drilling of the Uchuva-2 appraisal well and the Buena Suerte-1 exploration well.

MOROCCO

Anchois Gas Development

Chariot Ltd

$500 million

Chariot has announced the completion of the FEED work for the field, and has requested commercial proposals for the EPC work. The field development will comprise initially of three subsea producer wells. The gas will flow to an onshore central processing facility with an initial capacity of 105 MMcf/d via a subsea flowline.

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.

SENEGAL

Greater TortueAhmeyim Phase 2 bp

$2 billion

A pre-FEED tender for the project is set to be launched during 2023, which is to be followed by full FEED tender in 2024. BP is planning to reach a final investment decision on the project in 2024.

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TANZANIA Tanzania LNG Liquefaction Plant

Shell

$30 billion

Shell and Equinor have concluded negotiations with the Government of Tanzania for the construction of the facility. The partners are now drafting contracts for the project, one is the Host Government Agreement and the other is regarding blocks 1, 2 and 4 which will provide the natural gas for the resource. The FID on the project is planned for 2025.

NAMIBIA Jonker-1X Oil Discovery Shell

$1 billion

Shell and its partners have announced a light oil discovery via the Jonker-1X exploration well located in the Orange Basin. The well was drilled by Northern Oceans Deepsea Bollsta semi-submersible drilling rig drilled to a total depth of 6,168 metres in 2,210 metres of water. This is third significant discovery made in Namibia and follows the Graff1X and Venus-1X discoveries that were made in 2022.

CHINA Bozhong 26-6-2 Oil Discovery CNOOC

$1 billion

CNOOC has announced a new discovery at the Bozhong 26-6 oil field which is located in water depths that average 22 metres. The discovery well BZ26-6-2 was drilled and completed at a depth of 4,480 metres and produced on test approximately 2,040 b/d of oil and 11.45 MMcf/d of gas.

ANGOLA Agogo Full Field Development

Azule Energy

$10 billion

Following the final investment decision announcement, a number of contracts have been awarded on the project. Successful contractors for the various subsea packages include Saipem, Baker Hughes, TechnipFMC, Subsea7 and Aker Solutions, while Yinson has been awarded the contract to supply the FPSO.

BRAZIL Neon Field Development

Karoon

$500 million

Karoon has started engineering studies for Neon ahead of the concept selection stage and FID. Meanwhile, data from the Neon-1 and Neon-2 control wells will be analysed in order to support an updated resource estimate for the field (a 2C estimate in 2018 indicated 55 million barrels of oil).

Petrobras finished the bidding process without selecting a winner. Decommissioning activities might require more time to begin as it is still unclear whether Petrobras will relaunch the tender or include the decommissioning scope in a Libra SURF contract. The decommissioning programme's schedule foresees the end of activities in mid-August 2027.

INDONESIA Timpan-1 Gas Discovery

Harbour Energy

$500 million

Harbour Energy is currently evaluating the development options for the project. The operator is planning to drill at least three exploration and appraisal wells across its Andaman acreage beginning in the second of 2023.

KAZAKHSTAN

Tengiz Third Generation Project

Tengizchevroil

$48.5 billion

The construction phase has been completed. Chevron is set to put into operation its remaining facilities from 2023 up to 2024. The oil produced from the Tengiz field will flow through the CPC (Caspian Pipeline Consortium) pipeline and expected to reach the peak flow in 2024.

INNOVATION AND TECHNOLOGY IN THE ENERGY INDUSTRY

By Tsvetana Paraskova

Oil and gas producers and their supply chain contractors are using cloud computing, big data and analytics, smart devices and the Industrial Internet of Things (IIoT), artificial intelligence, augmented and virtual reality, 3D modelling, digital twins, and robotics to assist them and have safe and cost-efficient upstream, midstream, and downstream operations.

At the same time, energy firms look to develop innovative solutions to help them advance low-carbon energy projects and make those projects scalable, feasible, and profitable.

Alongside investments in oil and gas, energy majors are testing and developing technologies to tackle carbon emissions and enter into partnerships to study carbon capture and storage (CCS) and hydrogen solutions.

Innovation in clean energy technology needs more efforts, both in the R&D department and in terms of massive additional investments,

in order to make a meaningful impact on the global efforts to lower energy-related emissions and curb the rise in temperatures to the limits set in the Paris Agreement, the International Energy Agency (IEA) says.

Oil & Gas technology markets set for continuous growth

Meanwhile, investments in new technologies and the markets for AI, robotics, digital twins, and AR and VR are expected to jump this decade, various analyses and reports have shown recently.

In the UK, oil and gas companies are increasing investments in new technologies for improved operations and sustainable energy sources, bolstered by high demand and rising prices, a research report by global technology research and advisory firm Information Services Group (ISG) showed in March.

The energy industry is increasingly relying on innovation and technology to streamline asset management and maintenance, lower emissions from fossil fuel production, and develop lowcarbon solutions to futureproof operations in a world looking to achieve net-zero emissions by 2050.

“The most competitive and sustainable oil and gas companies in the U.K. will be those that are building a strong digital foundation,” said Ola Chowning, partner, North Europe, with ISG.

Jan Erik Aase, partner and global leader, ISG Provider Lens Research, commented, “Oil and gas companies have a role to play in the U.K. reaching its overall environmental goals.”

“Service providers are helping them adopt digital tools for identifying and managing their carbon emissions,” Aase noted.

In a separate report in March, ISG said that oil and gas enterprises in the Nordics are adopting new digital technologies to boost output, reduce carbon emissions, and cut costs as they navigate multiple industry disruptions.

“Decarbonisation will be a major issue for oil and gas companies in the Nordics for years,” Aase said, commenting on the report.

“Many global and regional service providers can help them carry out carbon monitoring and reporting and renewable energy projects.”

Globally, the market of AI in oil and gas is expected to earn $7.99 billion by 2031, rising at a compound annual growth rate (CAGR) of 13.5%, an Allied Analytics report has found. Growing demand for quick fault identification and quality improvement, lower production cost, and security requirements have largely driven growth in AI in the oil and gas market, according to the report.

Robots are set to be the oil and gas industry’s growth engine, a report by GlobalData has found

Robotics has been a part of the industry for decades, but now digitalisation and integration with other technologies have helped diversify robot use cases. A myriad of robots are now involved in oil and gas operations, including terrestrial crawlers, quadrupeds, aerial drones, autonomous underwater vehicles (AUVs), and remotely operated vehicles (ROVs), GlobalData says.

“Robots will be the industry’s growth engine, and the oil and gas sector will greatly benefit from emerging use cases,” says Anson Fernandes, oil and gas analyst at GlobalData.

“Industrial robots with analytical support from digital technologies is expected to become the mainstay across the oil and gas industry, especially in the upstream sector, where personnel safety and operational security concerns are heightened.”

Energy majors could play leading role in the transition

Technology and innovation could also help oil and gas companies become leaders in the energy transition.

According to McKinsey & Company, many oil and gas companies are well positioned to become leaders in the energy transition.

“This is not only because of their global scale, the risk appetite of their investors, their large balance sheet and cash positions, and their long-standing relationships with energy customers and stakeholders, but also because of their unique capabilities related to offshore projects and hydrogen and sustainablefuel production and transport,” McKinsey consultants and partners wrote in an article in February.

Those companies can win with their experience and expertise in low-carbon energy development such as offshore project development, hydrogen production, and fastcharging services for EVs, according to the consultancy.

“The rise in investments in clean and renewable technologies provides compelling evidence that power markets will continue to change rapidly. To stay ahead of the curve in the power value chain, oil and gas players will need to be

thoughtful, strategic, and intentional in playing to their strengths. There is no time to waste; the industry cannot afford to wait to see what happens,” McKinsey concluded.

Digitalisation – The backbone of the energy transition

Digitalisation is the backbone that will support the energy transition, a global survey of 350 C-suite executives conducted by MIT Technology Review Insights has found. Companies need to focus on accelerated digitalisation to help decarbonisation and emissions reduction, and to drive innovation, MIT Technology Review Insights said in a report sponsored by Shell and titled “Digital technology: The backbone of a net-zero emissions future”.

The energy sector is eager to develop carbon sequestration technologies, the report found. “The high share of hydrocarbons in the global energy mix means that for energy companies to meet their decarbonisation targets, carbon capture and sequestration is essential, especially factoring in GHG Protocol Scope 3 emissions that can be traced back to a company but not directly produced by the authors of the report

Energy industry leaders, an exception among executives from the many industries in the survey, show a high willingness to experiment with new digital technologies, and more openness to new technologies in general, the report found.

“Digital technology is going to be fundamental to running the future energy system,” said Dan Jeavons, vice president of computational science and digital innovation at Shell.

In clean energy technology, more efforts are needed to drive innovation and get the energy system on track with the Net Zero Emissions by 2050 Scenario, the IEA said in a recent progress report on the industry.

“While most of the CO2 emission reductions can be achieved by 2030 with existing technologies, the path to 2050 relies on technologies that are not yet ready for widespread uptake, particularly in sectors that are hard to decarbonise such as heavy industry and long-distance transport,” the international agency said.

Therefore, innovation and technology will be crucial to accelerating clean energy adoption, as well as helping the energy industry continue to provide reliable energy supply with a lower emission profile.

THE NEXT-GENERATION TIME AND COST ESTIMATION SOFTWARE IMPROVES AUTOMATION AND OFFERS WELL PLANNING RISK REDUCTION

P1ANS™ software enables well teams to estimate more accurate drilling project budgets with in-depth analysis of risks. The management is able to make well-informed investment decisions based on the accurate AFE (Approval For Expenditure).

Last month, global energy engineering consultancy and software provider, AGR, launched a new and innovative software that gives drilling professionals unrivalled understanding of time, cost and risk when planning wells.

The next-generation P1ANS™ application builds on the global success of AGR Software’s fieldproven and industry-leading P1™ application. P1ANS™ combines trusted techniques with improved technology and new features, including rig campaign time and cost modelling, auto distribution from historic reference data, company specific tagging and templates increasing standardisation in well construction.

P1ANS™ employs Monte Carlo probabilistic simulation technique to analyse thousands of data points, before predicting a range of possible outcomes.

Designed for D&W (Drilling & Well) engineers and management, D&W digitalisation leads and cost controllers, P1ANS™ helps ensure time and cost for single wells and drilling campaigns are thoroughly planned and consider all risks.

The next-generation P1ANS™ application builds on the global success of AGR Software’s field-proven and industry-leading P1™ application.

“P1ANS™ gives operators the ability to unify data streams imported from other programs while standardising the well time and cost estimation output, such as AFE or time/cost curve for quicker decision-making.

“P1ANS™ is the latest addition to our expanding portfolio of industry-leading software, iQx™.”

The software integrates seamlessly with a range of other widely used technologies and is compliant with all modern software architecture requirements, including cybersecurity compliance, Single Sign On (SSO) and OpenAPI.

Users benefit from a learning curve feature which enables greater forecasting over the duration of a campaign. The solution also offers greenhouse gas emission prediction, helping companies achieve low carbon ambitions. With the option to import historical data and input from other digital solutions, users can seamlessly integrate time and cost outputs in their overall software network without the risk of data duplication or guessing errors.

P1ANS™ was developed in close consultation with AGR’s users and partners. As a result, it offers enhanced collaboration features to license partners, service companies and stakeholders at all levels.

Commenting on the launch, Øystein Andersen, VP of Software at AGR, said:

“This eagerly anticipated release of the nextgeneration drilling time and cost estimation software helps to further AGR Software’s ambition of digitising the well delivery process, unlocking an array of workflow efficiencies.

Key benefits of P1ANS™:

• Modern software architecture with OpenAPI, SSO and option for local deployment

• Improved collaboration across all project partners

• Comprehensive campaign time and cost modelling with learning curve

• Greater transparency of budgets and risk exposures

• Enhanced exploitation of historic reference data

• Improved standardisation with data tagging and templates

• Selective data output with autodistribution

• Seamless data flow with external sources for empowered drilling time and cost analysis

• CO2 estimation as standard feature in well costing

AGR Software’s iQx™ platform helps energy companies to digitise their well delivery process with immediate results. By believing that collaboration empowers knowledge sharing and creates improved decisions, the company is focussing on developing a plugand-play data library that makes life easier for drilling engineers.

In addition to P1ANS™, the platform includes applications:

• P1™: Probabilistic time and cost simulation

• CT™: Actual time and cost tracking

• Ex™: Archive of Lessons Learned

• RIG™: Flexible scheduling of rig portfolio

is a multi-disciplinary engineering consultancy and software provider. We have the experience, agility and creativity to deliver a compelling solution that solves today’s and tomorrow’s energy challenges. Learn more at: agr.com

Øystein Andersen

PLACING A PREMIUM ON SAFETY WITH STATE-OF-THE-ART OIL TANK CLEANING TECHNOLOGY

Re-Gen Robotics’ Commercial Director

Chris Platt discusses what innovation looks like for him and his team of designers and engineers as they work on revolutionising safety and efficiency in the tank cleaning sector.

Chris joined Re-Gen Robotics as Commercial Director in February 2023. He brings extensive senior-level and technical experience in oil and gas operations, health and safety, and project management to the no man entry robotic tank cleaning company.

A chemical engineer with over 35 years’ experience in world-scale oil and gas processes in refineries and storage terminals, Chris has a track record of delivery in multi-national and rapidly growing businesses.

He says his coalface experience in innovating in his sector has made him optimistic about the direction that the future of tank cleaning is heading.

“Re-Gen Robotics has access to the latest and best in technology and innovation and over the last few years has responded to the demand in the industry for safe, reliable and affordable robotic tank cleaning solutions. Our patented tank cleaning service is significantly reducing clients’ risks and

improving the uptime of their assets. Since 2019, we have removed sludge and waste deposits from more than 50 crude oil and middle distillates tanks in the UK, with our Zone 0 Ex-certified technology.

“As new technology emerges, people reskill and upskill and what is so exciting for us is that we can actually create more jobs than those being replaced. Overall, the demand for no man entry cleaning is growing rapidly, but we still need experienced personnel to control the robots. Essentially, we are creating better-paying jobs and conditions as a result of our technological advances.

“The robotic operator manages all aspects of the tank clean from a dedicated, airconditioned control room through a series of ATEX cameras and gas monitoring equipment. This ensures every clean, no matter what category of tank, is safe and straightforward as the operation is remotely controlled.

“A key part of our business strategy is the commitment to continually invest in new product development to drive safety and efficiency in the industry. We are currently working on an advanced range of telemetry technology in our vacuum trucks, new tech for our control units, robots and supplementary equipment including washing and suction heads.

“The team is also exploring and trialling a fuel reclamation system which will enable crews to separate solids and liquids to reduce the volume of waste for disposal and, in so doing, recover viable materials for clients’ use.

“Our ambitious, young team is driving the company’s success. It is ready to meet the needs of our customers, staying close to them to establish what additional features we can create to provide them with most value.”

Since 2019, Re-Gen Robotics has committed over £7 million in investment across all key areas of their service. In order to lay the ground for a sustainable future, Re-Gen Robotics has scaled up and is working hard to get the message out about its pioneering solution to prospective clients in Europe and the USA.

APPS GENERATED

BY MACHINES ARE YOU READY?

As the industry continues to evolve, software and digital transformation is becoming more of a differentiator. The challenge historically has been the need to use specialist individuals, programmers and coders to build even the most straightforward applications.

Leaders in this sector are continually looking to do more, faster, democratising the software development process so that digital transformation and process improvement is spread across an organisation. This allows organisations to become more efficient without the bottleneck or cost constraints that industry has struggled to address, until now.

Software now exists to help simplify the process of creating applications, not just by enabling programmers and coders to work much faster, with lower costs and improved quality but now broadening out to others who don’t have a computing degree or many man years of experience to build apps.

This is just the next stage in the evolution of the software development industry; software making it easier to embrace digital transformation, reduce maintenance costs and technical debt and the need for people around who know how to run and maintain old systems.

The future is software that doesn’t age and will run forever, reflecting your business processes without costly maintenance and re-testing because the original products and technology that were used to create it are no longer supported.

TAAP is an organisation that provides software technology to enable domain experts and specialists to create applications without relying on programmers and coders, thus allowing for a wider adoption.

Using TAAP, businesses are creating custom applications tailored to their specific needs using business technologists with no previous development background. This allows them to automate processes, streamline operations, improve customer service and create powerful analytics tools to gain insights into their business to make smarter decisions.

TAAP is also introducing generative technologies that means the majority of an app can now be machine-generated, in seconds, based upon business data. This is a shift in how organisations approach software development. TAAP call this ACE and where with ChatGPT, ask a question and it provides answers; with ACE, you provide a data model and in seconds it builds you a fully functional bug-free app.

IK Subsea COMPACT INTEGRITY CLAMP//

Trusted for the worlds deepest subsea repair, the compact integrity clamp is proven to seal off leakages and reinstate structural integrity across all relevant sizes of pipeline up to a pressure rating of 600 bar and at depths in excess of 2000m.

Got something that can beat our current record? Challenge our brilliant engineers and let’s make history together.

The apps created using TAAP leverage a highlevel notation that describes the function and flow of the application in relation to the data it processes, also referred to as No Code. It is designed to allow people with no programming experience to be able to create apps with ease.

So how do businesses plan and strategise how they leverage generative AI?

Until recently, the AI space has been unclear about its tangible benefits for businesses wanting to scale through difficult economic times. No Code is driving this space; however, innovation starts when you enable generative AI into business systems and processes. As subject matter experts build applications focusing on data they need to process, AI can be an intelligent part of this process and then finessed with human interaction.

Success for businesses is a combination of humans driving the data and technology i.e. No Code integrated with AI as best practice for application creation. We believe the industry is on the cusp of this today.

These tools allow businesses to quickly and easily create AI-powered machine-generated applications that reduce error. This now further reduces the costs and time frames of typical No Code development.

In this rapidly evolving technological landscape, businesses that choose to innovate and embrace this change by implementing solutions not just for their current needs but their future outlook will be best positioned to succeed with business innovation.

Contact TAAP for further information on how we can help you achieve your digital transformation objectives. www.ontaap.com tel: 03452309787

360 PHOTOGRAPHY AND POINT CLOUDS: A POWERFUL COMBINATION FOR ASSET MANAGEMENT VISUALISATION

ZynQ 360 captures and creates a comprehensive digital twin of your asset, delivered within their secure visualisation software, which integrates with your existing data and systems. Providing you and your enterprise with the innovative tools to centralise and streamline both planning and operations. Reducing risk, costs, and environmental impact.

Evolving technology allows for capturing and analysing physical spaces with increased accuracy, boosting remote working capabilities.

Point cloud data is a powerful way to visualise the shape and structure of a 3D scene. A point cloud is a construct of individual points in a 3D space. Every point has an X, Y and Z coordinate, giving them their position in 3D space. Grouped together, these points form an overall model called a point cloud.

However, they often lack the colour and texture information that can make the scene more realistic and immersive. Point clouds come to life when used in conjunction with high-quality 360° photography, allowing teams to navigate their point clouds more efficiently, giving the most value to their data.

Creating Point clouds

Two common methods can be used to create a point cloud. Photogrammetry and Lidar. They both have their own characteristics, influencing when and where each technique thrives.

The continuous improvement in camera technology has allowed photogrammetry to flourish. The details in photogrammetry point clouds are forever increasing, allowing software to extract more feature points producing higher fidelity models. This method is grounded in photography, meaning a photogrammetry model will automatically have colour information, which is excellent for better understanding as-built features within a point cloud.

Lidar devices can come in multiple forms, from the traditional tripod-mounted laser scanner capable of impressive accuracy to the small hand scanners often used for reverse engineering.

A well-rounded option is Simultaneous Localisation and Mapping (SLAM) devices. These devices can produce accurate point clouds over a large area with a quick turnaround. They are also an excellent option for drone-based scanning. This gives SLAM the ideal configuration to produce detailed asset overviews.

ZynQ 360 offers a custom solution that utilises SLAM to produce accurate geospatial colourised point clouds and a 360° imagery walk-through for high-definition visual context.

Why Point clouds

Measurement extraction: As each point within a point cloud is a digital reference of the physical environment, a user can confidently select points for measurement. Common measurement types such as linear, area, angle and volume measurements can be taken easily within ZynQ’s point cloud viewer.

3D Modelling: As point clouds contain measurement data, they can be an excellent source of information for generating 3D models.

Point clouds are an excellent source of accurate information that can be referenced when producing high-quality CAD models of the as-built environment. By extension, they are also an accurate way of creating floor plans for an entire asset.

ZynQ 360 offers both Photogrammetry and SLAM scanning to bring point clouds to life. The high-fidelity scans are then uploaded into ZynQ, where several tools can be applied to the point cloud, allowing users to get the most out of their scanned assets. Their web-based platform, ZynQ, allows easy access, sharing and storage of point cloud data in an intuitive user interface, helping you make the most of your data.

ZynQ 360 offers both Photogrammetry and SLAM scanning to bring point clouds to life.

AVOIDING TECH FOR TECH’S SAKE: ENSURING REAL VALUE FROM DIGITALISATION

Technology is evolving rapidly; every day new products or services are conceived to solve the ever-growing number of problems facing organisations and consumers worldwide. Some of these products and services are so “innovative” that they may even claim to solve problems that people aren’t facing or issues that haven’t happened yet!

As applications and challenges become more complex, the risk posed to organisations by “digital snake oil” is increasingly high as applications, and in particular software-as-aservice products, become more ubiquitous. An application might look impressive, but it’s important that the user organisations fully understand what it will do for them, if it is appropriate and whether or not it will add real value. Just because a variety of expensive technology is available to produce something that looks great, it doesn’t always mean that it’s fit for purpose.

Many organisations often look to digital transformation projects to save money. An example of this is turning to machine learning to replace manual processes undertaken by people as a more efficient and cost-effective solution. Vendor X calls an organisation to tell them about a software package that will solve all their problems for one low monthly cost. Then, after signing on the dotted line, it becomes apparent that the manual process was more complicated than first thought, or a specific detail was overlooked that the digital process can’t initially do. This quickly leads to customisation costs and although the technology still doesn’t do the exact steps, it does them slightly faster, so the solution is chalked up as a success and the fact that the organisation is now paying

more money for the same level of efficiency is ignored, and everyone gets a pat on the back.

Worryingly, a recent study by McKinsey found that over 70% of Digitalisation projects worldwide technically end in failure. This may be due to exceeding budget, failing to meet their basic goals, overshooting their planned timescales continually, or a combination of all three.

So, how can organisations ensure successful delivery of digital projects and guarantee they will add value?

CAN Group has been in business for over 35 years and in that time, has brought a significant amount of innovation to the market.

CAN Group has been in business for over 35 years and in that time, has brought a significant amount of innovation to the market. Technology has been at the forefront in helping us advance the field of inspection and asset integrity, from pioneering alternative access solutions in the 80s and 90s to extending into the field of Advanced Non-Destructive Testing (ANDT) in the 00s and most recently, bringing to market a comprehensive cloud-based digital intelligence platform; ENGAGE. In this time, we’ve seen considerable innovation but it’s fair to say that for every ground breaking solution or way of working that’s changed the industry for the better, we’ve seen 10 “next-bigthings” never get beyond preliminary trials and end in abject failure. A strong understanding of the appropriateness of technology has always been key to successful delivery.

Being one of the first to do something innovative doesn’t always mean it’ll be the best, an example being the “Joo Joo”, one of the first tablet-based computers. Announced in 2008, a full two years before Apple officially

announced the iPad, it was beset by massive project delays, an underwhelming final product and almost immediately consigned to history. In addition to this, the famous Sinclair C5, ultimately the downfall of the once great tech company of the same name, suffered a similar fate in the 1980s (although one might argue it was a good idea that was hobbled by the available technology of its time, given the abundance of single user electric transport like scooters and e-bikes around today).

The energy sector is not immune from tech failures and has seen a number of promised technological innovations fail to live up to their initial promise (several “Wave Energy” tech companies being the most notable casualties of this). Nevertheless, by understanding the reasons for these failures in the past and controlling what we do in the present, we can ensure success in the future.

At CAN Group we follow some simple guidelines for success:

1) Define Transformation Goals

Too often digital projects are conceived as a way to make the company “look good”. Instead of looking at problems and how they can be solved. Solutions in the marketplace are often shoehorned into an organisation to try to solve issues that don’t exist. Ensuring goals are clearly established from the outset means that the outcomes can be measured.

2) Ensure Buy-In and Establish a Shared Vision

It’s important that all stakeholders are involved in the digital transformation process. Having a shared vision across the organisation and its supply chain will ensure that everyone is reading from the same script and share the same goals.

3) Respond,

Don’t react

Digital transformation should be a response to the needs and problems faced by your organisation. Too often it’s initiated as a reaction to what competitors are doing. Ultimately, key to success is to ensure that the needs of the organisation will be met by the proposed technological solution and that it’s not being done simply to “keep up with the Jones’s’”.

4) Ensure Value

The Transformation process needs to add value. No matter how innovative a piece of technology may be, if there’s no value to it there is almost always no need. For example, if humans can be replaced with Artificial Intelligence to perform a task, but the software costs twice as much as the labour, or ends up only being 60% as accurate, there is little value, irrespective of how much more “efficient” it may be on certain metrics.

If your digitalisation journey is asset integrity related, CAN Group’s experts have decades of experience to draw upon to help set you up for success.

www.leyton.com

The UK’s largest innovation funding consultancy

Leyton is an international consulting firm that helps businesses leverage financial non-dilutive incentives to accelerate their growth and achieve long lasting performance.

We simplify your access to these complex incentives. Our combined teams of highly skilled Tax and Technical specialists,

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.

INNOVATION AND TECHNOLOGY IN THE OIL AND GAS SECTOR: NAVIGATING THE FUTURE

The Oil & Gas industry has been a pioneer in technological innovation for decades, and is constantly pushing the boundaries of technological advancements in drilling, exploration, and production activities for the extraction of hydrocarbons from even the most challenging of environments. However, with the increasing demand for sustainable energy, and the necessity to reduce carbon emissions for a greener world, the industry is facing new challenges that require fresh ideas and innovative solutions.

As a response to present challenges, the industry has begun started to embrace new technologies that promise to enhance efficiency, reduce costs, and minimise the impact of its operations on the environment. The industry has made significant strides in the areas of exploration and production, with constantly improving technology such as seismic imaging, drilling technology, and data analytics enabling companies to extract from unconventional sources like shale oil and gas. The industry has also adopted newer techniques like Enhanced Oil Recovery (EOR) and well stimulation to increase the productivity of existing wells. EOR involves the injection of chemicals or gases into wells to increase the flow of oil. This helps increase the amount of oil that can be recovered from a well by up to 30%. Well stimulation, involves the use of hydraulic fracturing or acidising to

increase production. This is useful where oil produce is trapped in between rocks that are not easily permeable.

The industry has also undergone what is terms as digital transformation, with automation and digitalisation revolutionizing operations. The use of digital technologies like AI, IoT, and big data analytics, Oil & Gas companies gain greater insights into their operations and improve decisionmaking. IoT sensors, for example, are used to monitor equipment performance and detect problems before its occurrence, while AI algorithms optimise drilling operations, and improve drilling efficiency thereby reducing costs.

Through investments in technology and exploring renewable energy sources, the Oil & Gas industry can continue to advance and meet the world's ever increasing energy needs.

Carbon capture technologies are another area where the industry is advancing to reduce emissions and meet net zero carbon goals that help with current climate issues. Carbon capture, utilisation, and storage (CCUS) technologies involve the capturing of CO2 emissions from industrial processes and storing them underground. Though still in its early stages, CCUS has great potential to significantly reduce emissions from the Oil & Gas industry.

There are various challenges facing the industry, however there are significant opportunities for growth and innovation. Through investments in technology and exploring renewable energy sources, the Oil & Gas industry can continue to advance and meet the world's ever increasing energy needs while minimising its environmental impact. The future of this industry depends entirely on its ability to innovate and adapt to future changes, and by embracing change, the industry can shape a future that is both sustainable and profitable.

If you have encountered unanticipated and challenging developmental work to meet your company's technological innovation needs, it could be beneficial to seek advice from your accountant or financial advisors about the possibility of making a claim under the HMRC R&D Tax Relief Scheme. Leyton UK is a market leader in innovation funding and offers expert guidance to organisations seeking financial support for their Research and Development (R&D) projects through the HMRC https://leyton. com/uk/rd-tax-sme/ R&D Tax Relief Scheme. With Leyton UK's extensive experience and knowledge, companies can benefit from significant tax relief for their innovative work. As of April 2023, changes will be implemented to the R&D Tax Credits scheme, reducing the additional deduction for SMEs from 130% to 86%, and the SME credit rate from 14.5% to 10%. Companies can use Leyton UK's R&D Tax Credits calculator to determine how much they can claim and to navigate the changes ahead. Moreover, Leyton UK also helps identify eligible businesses that can apply for compensation for a significant proportion of the costs of their energy bills through the Energy Tax Exemptions scheme, among other offerings. By partnering with Leyton UK, companies can rest assured that they will receive expert advice and support, helping them to maximise their R&D tax relief claims and make the most of government initiatives.

Benson John MSc CEng MIMeche Assistant Manager - R&D Tax Incentives

Aize was founded in 2020 with a vision to fundamentally change how capitalintensive projects and operations are performed. Developed by and for domain experts, the Aize workspace allows users to see, navigate, collaborate and work on assets digitally. The company is building on 30 years of software experience and 180 years of industrial heritage as part of the Norwegian Aker group. Aize is based in Norway and the UK.

Company Details

INDUSTRY SOFTWARE

That Solves The Worker’s Problems

We founded Aize in 2020, and already benefit from solid industry collaborations. We root our mission to transform the industry in five decades of world-leading offshore industrial expertise.

Website: www.aize.io

Email: info@aize.io

Tel: +44 (0) 7522 729412

Address:

Building 2, Aberdeen International Business Park, Dyce Drive, Aberdeen, AB21 0BR, United Kingdom Technology

Development stage: Commercial

Launch date: 2020

With Aize, we are now creating one core product with modules and functionality that will serve heavy-asset industries throughout their life cycle.

For us, the worker is in focus

The Aize workspace lets your data collaborate so that your people can collaborate in real-time, eliminating unnecessary paperwork and physical meetings freeing up time for every industry worker to do their actual job.

Our goal: To create industrial software enabling one single source of truth for companies and experts building, operating and collaborating on heavy assets, enabling them to utilise the digital twin in the best way possible.

For workers in EPC

IN ENERGY

Aize lets you coordinate capital-intensive projects together in real-time. Streamline all communication and relevant data involved in designing, constructing, and commissioning heavy assets into a single source of truth. Aize empowers contractors, vendors and partners to make unified decisions based on the same information. A combination of 3D visualisation, advanced information modelling and Google-like search experience will help you understand data in actual context, driving efficiency and profitability of greenfield developments as a result.

For workers in operations

Aize is a collaborative, shared workspace bringing entire heavy assets to its operator’s fingertips. Running an operating facility can be capital-intensive and requires solid control over maintenance and safety. That’s why Aize provides a single access point to all engineering data by integrating internal and 3rd party apps. As a result, operators are always a few clicks away from determining the overall asset performance, enabling them to act quickly and confidently.

3 things you should know about Aize

1. Our job is to keep every industry worker involved in heavy-asset projects or operations in the know and help them excel at their job.

2. Digitalisation is not the goal in itself. We work to create a simpler, more creative and more productive every-day for industry workers, empowering them to spend less time looking for information and more time on critical tasks. Aize helps build more sustainable and competitive companies, both large and small.

INNOVATION & TECHNOLOGY 31 INNOVATION & TECH

3. We focus on our domain because we genuinely believe the change in the oil and gas industry is essential to changing everything. Building a more sustainable future will take time. We are doing our part in speeding up the process by starting in the industry we believe is most influential at the moment.

SPONSORED BY

www.sword-group.com

Graeme Humphrey is the Principal Consultant at Sword’s engineering-led application development business, producing high-quality bespoke software systems. With over 25 years’ experience in software engineering, Graeme focuses on developing solutions that help energy organisations to make data driven decisions.

Using Momentum to solve data driven challenges

Industry challenges

How well a thriving organisation adapts to harness data driven technology is key to success in the energy industry. Technology investment is often driven by the need to address out-growing systems suited to smaller organisations, or when recognising that efficiencies are needed to make informed business decisions.

It is common knowledge that off-the-shelf software solutions don’t always fulfil customers’ needs alone, which can lead to a compromise on how well the solution tackles business challenges. Organisations can be lumped with extra costs from continuous product upgrades and increasing licence costs with additional users leaving them with no choice but to fork out for a system that doesn’t do everything they need it to do.

On the flip side, many organisations don’t have the budget available for a full bespoke software development when addressing a business challenge. Additionally, bespoke software development can be time consuming and due to the rapid change of pace in our industry organisations are looking for new solutions with shorter timescales.

The nature of energy industry organisations growing to involve multiple sites, assets and locations adds a layer of physical complexity meaning localised solutions no longer meet operational needs. The need for central database systems or software solutions often arises to rationalise procedures across different areas of the business.

Sword’s Solution

At Sword, we have developed a template-based software development solution, Momentum. Momentum is a starting point for bespoke software projects with a variety of web-based templates, which are fully customisable to each project. Momentum allows the build of software solutions that sit between off-the-shelf products and bespoke solutions.

The templates are based on proven, existing architecture that we know performs well over slower network connections. Customers have

the security of a protected log in, and we can create applications hosted in the cloud that meet our customers’ needs.

Momentum is centred around business operations primarily involving people, stock and assets, and manufacturing. We understand that companies have personnel and equipment procedures and should be able to manage this through a single database system that unify operational procedures across all sites.

Momentum in Action

Our software templates have three primary uses; personnel, stock and assets, and manufacturing.

Personnel management is a key focus in many of our customers where growth has led them to find talent acquisition increasingly complex. We have helped organisations implement software solutions that help to manage their recruitment process, using Momentum templates as the base, building bespoke code to create a solution tailored to their own processes.

approach, our software engineers can build bespoke systems to suit each organisation’s asset and stock management requirements.

Production planning in manufacturing is the third area where our software templates have proved useful, allowing significant divergence between project applications, but achieving the outcomes needed to enhance operations.

Benefits of Building with Momentum

As the source code is already built and doesn’t require starting from scratch, a Momentum project can take as little as 8 weeks. As the process is considerably quicker than full bespoke projects and carries no licensing cost, there is a significant reduction in expenditure.

We treat momentum projects as bespoke, as the base templates act as a ‘boost’ to project timescale’

We treat Momentum projects as bespoke, as the base templates act as a ‘boost’ to project timescales, with source code then being tailored to individual customers without restrictions as the project unfolds.

Enabling a Data Driven Future

Asset and stock management is another area where the software template concept comes into its own. As with any business process, every organisation does things slightly differently, but the core purpose of the process is similar in the outcomes needed. Utilising Momentum’s

Investing in tailored, solid technology systems that are fit-for-purpose is proving to be the key for many energy industry organisations in building data driven foundations. Integrating processes across office functions and operations allows insights and analytics to enable informed data driven decisions on everything from recruitment to asset maintenance.

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 people engagement and technology adoption, together with modern ways of working to give confidence that the right discission is made every time.

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

Graeme Humphrey

CORPORATE PARTNER

www.renewableuk.com

£100M BOOST FOR BIGGEST UK HYDRO SCHEME IN DECADES

A giant hydro scheme which would double the UK's ability to store energy for long periods is taking a leap forward with a £100m investment by SSE.

The proposed 92m-high dam and two reservoirs at Coire Glas in the Highlands would be Britain's biggest hydroelectric project for 40 years.

Scottish ministers approved the 1.5GW pumped storage facility in 2020.

But power giant SSE wants assurances from the UK government before finally signing it off. A spokesperson for the Department for Energy Security and Net Zero said it was "committed to supporting the low carbon hydro sector, including hydro storage".

Perth-based SSE says the £1.5bn scheme would help tackle climate change and improve UK energy security.

The concept of Coire Glas is simple. It involves two reservoirs at different heights in the Great Glen, the geological fault which slices through Scotland between Inverness and Fort William.

When power is plentiful and cheap, water would be pumped 500 metres uphill for storage in an upper reservoir with the capacity of 11,000 Olympic-sized swimming pools.

When supply is tight and prices high, it would be released, using gravity to generate electricity by spinning four turbines way below on the banks of Loch Lochy, before flowing into the lower reservoir.

By storing electricity generated in windy or sunny weather for use on cold, still or dark days, Coire Glas could help smooth the transition from oil, gas and coal to more sustainable but intermittent sources of energy such as wind and solar.

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.

"We believe strongly it could play a huge role in enabling a decarbonised energy system," said Finlay McCutcheon, SSE's director of onshore renewables.

Keith Bell, professor of future power systems at Strathclyde University, said the proposed scheme would also help with another policy objective: reducing the UK's reliance on imported gas, a challenge given added urgency by the invasion of Ukraine last year by the world's largest gas exporter, Russia.

However, Prof Bell injected a note of caution, saying: "We need a lot more energy storage capacity to get rid of fossil fuels completely... probably 10 to 50 times greater even than the capacity of Coire Glas."

Nonetheless it would still be the UK's largest hydro scheme since the "Electric Mountain" project was completed at Dinorwig in Snowdonia in 1984, and one of the biggest-ever engineering projects in the Highlands, creating up to 500 construction jobs at its peak.

Debate about the pace of the energy transition has featured in the current campaign for the SNP leadership after outgoing First Minister Nicola Sturgeon expressed concern about new North Sea drilling in the context of meeting Scotland's target of net zero greenhouse gas emissions by 2045.

Mr McCutcheon, of SSE, insisted there was a clear case for the UK government to support a strategic expansion in hydro capacity.

The firm's existing assets had been "absolutely critical" in keeping the lights on during a "fullblown energy crisis" in the UK and Europe this winter, he said.

Despite mild weather, "our existing pumped storage - Foyers on the shores of Loch Ness - has never been used so intensely," Mr McCutcheon added.

Scotland's only other pumped storage scheme, operated by Drax Group, is housed within a giant artificial cavern inside Ben Cruachan on the shores of Loch Awe in Argyll.

The North Yorkshire-based company plans to more than double the generating capacity of its facility, nicknamed Hollow Mountain, to more than 1GW, with the construction of a new underground power station.

But both Drax and SSE have been reluctant to press ahead without assurances from Whitehall.

"SSE needs clarity around how the UK government is going to support projects like Coire Glas," Mr McCutcheon explained.

"It was a key element of their energy security strategy last year, but we need to see how that's going to work in practice."

He added: "It doesn't require subsidy but they are enormous investments."

Specifically, SSE would like a commitment to a revenue stabilisation mechanism and more assurances about how the regulated energy market would reward low carbon power generation.

Prof Bell of Strathclyde University said answers were urgently needed by industry, pointing out that the Climate Change Committee, which advises the UK and devolved governments, had published a report this month asking ministers for greater clarity.

The Department for Energy Security and Net Zero spokesperson accepted that hydro would be "critical to delivering greater energy security and independence, economic growth, and our net zero ambitions".

"Already we are supporting up to 480,000 wellpaid green jobs, and leveraging up to £100bn of private investment in low-carbon technologies including storage by 2030. This will bolster our energy security and help ensure we bring down wholesale electricity prices to among the lowest in Europe," they added.

SSE says it hopes to make a final investment decision next year. If it goes ahead, completion is expected in 2031.

When running, Coire Glas could reach full generating capacity in under 60 seconds, providing rapid flexibility in the case of a loss of power elsewhere on the national grid.

Alternatively, operating at a more sustainable level, it could power three million homes for up to 24 hours.

The £100m outlay announced by the FTSE 100 company will be used for exploratory work, which includes boring a tunnel four metres wide for about 1km into the hillside to assess the geology of the site.

The investment in Coire Glas comes on the 80th anniversary of the Hydro Electric Development (Scotland) Act 1943, which nationalised the industry and kick-started the creation of more than 50 dams.

The visionary Labour politician Tom Johnston was the driving force behind the expansion, which brought power and jobs to the glens, dramatically improving life in rural Scotland in the years after the war.

It's amazing how this old technology is suddenly becoming necessary again - but for very different reasons.

Pumped hydro schemes were once vital when we all demanded electricity at the same time.

The moment when Dirty Den served divorce papers on his wife Angie during the 1986 Christmas Day episode of Eastenders was watched by 30 million people.

Most of them needed a calming cup of tea when the credits rolled.

All those kettles created a phenomenal demand for electricity, and that's when the sluice gates opened on our pumped hydro plants.

Changing TV habits mean that doesn't happen as often now, and it's the peaks and troughs of supply - rather than demand - which this sort of technology will resolve.

In 15 years, when we're tucked up in bed on a windy night, it'll provide somewhere for all that excess power to go so that it can be used when we wake up.

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Edda Wind Nets CSOVs Contracts with Vestas

Offshore wind service vessel company Edda Wind has signed contracts with the Danish wind turbine manufacturer Vestas for its commissioning service operation vessels (CSOVs) in 2024 and 2025.

According to Edda Wind, the contracts total a minimum of 750 days of firm work with options for extension of each work scope.

The company recently placed a EUR 250 million order with Vard for four new CSOVs, with options for ordering up to four additional vessels.

Once these four newbuilds are delivered, Edda Wind will have a fleet of 14 vessels, of which two are currently in operation, with five more expected to commence operation this year.

Infinity Partnership: Your Partner in Business

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

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.

Last month, the company took delivery of the CSOV Edda Boreas which is scheduled to start working at the Dogger Bank Wind Farm in the UK this May.

The vessels that will serve the contracts are to be nominated from Edda Wind’s fleet of CSOVs at a later stage, the ship owner said. All CSOVs in the fleet can accommodate

Worley awarded FEL 2 contract to engineer Cerilon’s US gas-to liquids facility

approach. This modularisation methodology is one that Worley has considerable experience in, with customers leveraging this approach to enable a quick response time to market.

120 persons and are prepared for zeroemission operations with hydrogen as an energy carrier in a Liquid Organic Hydrogen Carrier (LOHC) concept.

When it comes to Vestas, the turbine manufacturer recently acquired ST3 Offshore in the sixth tendering round since the Polish offshore steel foundations maker declared bankruptcy.

Dolphin rig starts operations offshore Nigeria

Melbourne, Australia (15 March 2023): Worley, a global project delivery and asset services provider, has been selected by Cerilon, a Canadian based energy and resource development company, to provide engineering services for the FEL 2 stage of Cerilon’s gas-toliquids (GTL) facility in North Dakota, US. This GTL facility will convert natural gas to produce up to 24,000 barrels per day of low carbon emission, synthetic energy products, including ultra-low sulfur diesel, naphtha, and lubricant base oils. With new mandates expected in the US on transportation fuels, the production of these liquids will help meet high demand and assist with the country’s low carbon objectives.

The GTL facility will also include carbon capture and sequestration (CCS), to further enhance the project’s sustainability. The overall plan for the project is to adopt a design one, build many

Worley’s global expertise and capacity to provide full EPC services were key drivers in Cerilon’s decision to select the company as its engineering partner. Rhys Mersereau, SVP of Operations, Worley, stated, “This energy transition project directly aligns with our purpose of delivering a more sustainable world. With escalating future energy demand and concerns for energy security at the forefront of our mind, the production of these low carbon energies will be crucial as we navigate towards net zero.”

Cerilon’s strategy is to replicate this major GTL facility in other sites across North America, with speed – achieved through modularisation – and sustainability as the main drivers. Ron Opperman, CEO of Cerilon GTL, notes, “Cerilon GTL intends to adopt a design one – build many approach and the Worley team has the GTL experience and global reach that we were looking for in an engineering partner. Their capability to provide full engineering, procurement, and construction services and to support other important elements of our project design such as CCS makes them the right fit for our team.”

Dolphin Drilling’s semisub Blackford

Dolphin has started a 12-month drilling contract with General Hydrocarbons Ltd. offshore Nigeria.

Recently the rig underwent recertification for a new five-year period in Las Palmas, the Canary Islands and was then towed to Port Harcourt in Nigeria.

Dolphin Drilling announced it secured a 12-month contract with Nigeria-based General Hydrocarbons Ltd. worth $96 million in October 2022.

Seadrill drillship gets more work in Gulf of Mexico

Offshore drilling contractor Seadrill has secured a contract extension for one of its drillships, which will continue to carry out operations in the U.S. Gulf of Mexico.

Back in April 2022, Seadrill reported that the West Neptune drillship secured a four-well extension with two one-well options with LLOG Exploration Offshore in the U.S. Gulf of Mexico. The 2014-built drillship has been working for LLOG since September 2021 and the firm part of its contract was set to expire in October 2022 with options until December 2022.

In November 2022, the offshore drilling contractor disclosed that the West Neptune

Ørsted, Simply Blue Group and Subsea7 win Scottish floating wind lease

Salamander, a joint venture between Ørsted, Simply Blue Group and Subsea7, is pleased to have been offered an exclusivity agreement as part of Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round.

The 100 MW Salamander floating offshore wind project, located 35km off Peterhead, is designed to provide Scotland and its supply chain with an early opportunity to deliver floating offshore wind ahead of the largerscale ScotWind buildout. With gigawatts of floating wind buildout expected in Scotland and the UK over the next decade, Salamander will be a valuable stepping-stone to ensure local supply chains are ready and able to take full advantage of this opportunity. Salamander will demonstrate a package of innovative technologies at commercial scale, readying them for roll out in utility-scale projects such as the ScotWind leases. These technologies will be critical to ensuring floating offshore wind energy is deliverable, affordable for consumers and contributes value to local industry and business.

The INTOG round was split into two pots – one for smaller scale innovation projects of 100 MW or less and one for larger projects linked to oil and gas infrastructure. Salamander was successful in the innovation route.

drillship got a six-month firm term extension, with a further six-month optional period with LLOG. The extension was expected to keep the rig busy until Q4 2023.

In an update on Tuesday, 7 March 2023, Seadrill revealed that LLOG had executed approximately six months of term extensions for the West Neptune drillship, adding to the rig’s backlog in the Gulf of Mexico. The extensions will start in direct continuation of the existing term and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. According to Seadrill, the total contract value for the extension is approximately $79 million.

The West Neptune is a sixth-generation ultradeepwater Samsung 12,000 drillship. It is capable of operating in water depths of 10,000 ft to 12,000 ft. The rig’s maximum drilling depth is 37,500 ft.

Huw Bell, Salamander Project Director, said: “This opportunity through INTOG will allow us to progress the project, which will play a significant role in how the industry delivers floating wind going forward and help the Scottish supply chain to ramp up activities for the local and international market.

“We expect our approach to support the floating wind industry in the same way that fixed offshore wind successfully reduced costs over the last ten years. De-risking floating wind technologies for future commercial projects will allow Scotland to maximise the financial benefit of its strong offshore wind resource and generate longterm jobs for local communities.”

Salamander is currently undergoing an environmental impact assessment (EIA). The project has submitted its EIA Scoping Report to Marine Scotland and Aberdeenshire Council, who have now passed it to statutory and non-statutory consultees for their review and responses to the proposed project and scope of the EIA. The project has a grid connection agreement with the National Grid to enable the project to be delivered by 2030 and contribute to the UK’s 5GW floating wind target.

Gabriel Davies, Head of Floating Wind at Ørsted, said: “Salamander is a stepping-stone project designed to stimulate and support innovative, renewable supply chains in Scotland, maximising opportunities to support renewables around the world. With floating wind on the cusp of industrialisation, Salamander will play a crucial role in bringing down costs and accelerating the technology’s full-scale commercial deployment.”

Duncan Clark, Head of Ørsted UK and Ireland, said: "This award comes a year after we successfully secured the 1 GW Stromar floating lease in the Scotwind lease round and marks another major milestone in pursuit of our global floating wind strategy. Alongside our Stromar project, the pair form a complementary floating offshore development portfolio in Scotland.”

Regarding Seadrill’s recent activities, it is worth noting that one of the company’s drillships recently embarked on its assignment at a field offshore Brazil with the country’s oil and gas giant, Petrobras.

This drillship started its contract with Petrobras only a week after the West Jupiter drillship did the same.

TRAC Energy Ltd secures contract as sole UK distributor for Elastopipe™ flexible piping system and Firestop passive fire protection (PFP) provider

Vipo, specialists in developing and manufacturing rubber based thermal, fire and corrosion protection products for global markets, have selected TRAC Energy Ltd to be its sole UK distributor for its Elastopipe™ and Firestop Passive Fire Protection product ranges.

This is the first time TRAC Energy Ltd has been awarded a distributor contract and represents an opportunity for growth for the UK-based company. In addition, it will allow Vipo to better meet the demand of its UK customer base, by providing local knowledge and support.

TRAC Energy Ltd is a leader in providing a wide range of engineering support services, including rope access inspection, repair, and maintenance for the global energy industry.

Vipo has over 125 years of Polymer material technology expertise and over 50 years’ experience in offering high-end active and passive fire protection solutions. Elastopipe™ exists as a patented flexible piping system developed to protect people, assets, and the surrounding environment during active fire scenarios. The Firestop Passive Fire Protection range ensures the protection of vulnerable areas to allow for people and valuable equipment to be saved in the case of fire spread.

Contract manager for TRAC Energy Ltd, Tommy van Huuksloot, commented, “We are proud to be able to partner with such an expert in their field of topside safety solutions in the energy market. After working with the company for more than 18 years, we are delighted to strengthen our service delivery through this new partnership.”

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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Amplify Energy gets

new COO

Oil and gas company Amplify Energy Corp. has revealed the appointment of a new Chief Operating Officer (COO), who will assist the firm in bolstering its cash flow generation.

Amplify Energy announced earlier this week that Dan Furbee had joined the company as Senior Vice President and Chief Operating Officer. Prior to joining Amplify, Furbee served as a partner at Sentinel Petroleum from February 2022 to March 2023 and as an independent advisor for various companies from January 2021 to January 2022.

Martyn Willsher, Amplify Energy’s President and Chief Executive Officer, remarked: “I am excited to announce that Dan has decided to join Amplify. Dan will be a valuable addition to the management team and brings extensive operational and managerial experience to the company that will help maximise the value of our cash flow generating properties.”

Previously, Furbee served as the Executive Vice President and Chief Operating Officer of Riviera Resources from August 2018 to December 2020, as Linn Energy’s Vice President of Asset and Business Development from March 2018 to August 2018 and as Vice President of Business Development and Asset Development for Sanchez Energy Corporation from September 2013 to February 2018.

From 2005 to August 2013, Furbee, who holds a B.S. in Petroleum Engineering from Marietta College and a Masters in Business Administration from the University of Houston, served in various engineering roles of increasing responsibility at Linn Energy.

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EthosEnergy Appoints Former ItalPresseGauss CEO, Mario Cincotta as New East Hemisphere Executive Vice President

EthosEnergy has appointed Mario Cincotta, former CEO of ItalPresseGauss and Senior Vice President of Norican Group, as its new Executive Vice President of East Hemisphere. Mario will

John Begley,

John is a Managing Director for Norman Broadbent Group and leads our Industrial Practice. He has over 20 years’ experience across executive search, research & insight, and leadership advisory (leadership development, psychometric evaluation, and leadership assessment).

During his career, John has worked with business leadership teams across the US, EMEA and more recently the Asia Pacific region, primarily in the Industrials space. John works closely with companies of all sizes and ownership structures including pre-revenue start-ups, private equity-backed, privately, and publicly owned, AIM listed, and International PLCs. Besides his strong background in executive search, John has pioneered the use of leadership advisory services around succession planning, and the on-boarding of senior and high potential future leaders.

John is qualified in a variety of psychometric evaluation techniques and assessment methodologies.

UK oil & gas player promotes from within to fill CEO role

UK-headquartered and AIM-listed oil and gas player Europa Oil & Gas picked a new Chief Executive Officer (CEO) after its current one decided to resign.

Europa Oil & Gas revealed on Wednesday, 15 March 2023, that Simon Oddie, the firm’s Chief Executive Officer since August 2020 and Executive Director since November 2019, has decided to retire from the role. However, Oddie will remain on the board as a Non-Executive Director.

Brian O’Cathain, Chairman of Europa, commented: “On behalf of the board, I would like to thank Simon for his service to the company as Chief Executive Officer. Simon was appointed to the board initially as NonExecutive Chairman in January 2018 before becoming Interim Chief Executive Officer and Executive Chairman in November 2019 and then Chief Executive Officer in August 2020.

I am pleased that Simon will remain as a Non-Executive Director to ensure a smooth handover and enable business continuity going forward.”

Due to Oddie’s decision to step down from the CEO role, William Holland is moving from the role of Chief Financial Officer to Chief Executive Officer with immediate effect, according to the UK firm. With over 30 years of experience predominantly in corporate, financial and M&A roles, Holland started his career as an engineer with a particular focus on North Sea operations with Halliburton.

have strategic and operational leadership for the East Hemisphere. He will be based in Italy and report into the CEO, Ana Amicarella.

He brings with him 25 years of experience across the energy industry having spent 20 years with the GE Energy business in various leadership roles prior to his former position.

Ana Amicarella, CEO of EthosEnergy, said, "Mario is known for his strategic vision, strong leadership and ability to execute. I am excited to welcome him to EthosEnergy and look forward to

UK-headquartered international industryfunded spill-response cooperative Oil Spill Response Limited (OSRL), wholly owned by environmentally responsible oil and gas companies around the globe, has welcomed a new Chief Executive Officer (CEO), who previously worked in various executive positions at BP.

Oil Spill Response Limited, a provider of oil spill response services, announced the appointment of Vania De Stefani, who brings over 20 years of experience in the oil and gas industry with a strong background in engineering, operations and process safety, as its new CEO on Tuesday, 14 March 2023. The appointment is effective from 1 April 2023.

Astrid Sorensen, Chair of OSRL’s Board of Directors, commented: “We are delighted to have Vania join us as our new CEO. Her deep experience in the oil and gas industry, as well as her proven track record of leadership and technical expertise, will be invaluable as we continue to expand our services and support our members’ and customers’ needs.”

working closely together to deepen customer relationships, strengthen our position in the market and grow our business."

Mario added, "I am delighted to join EthosEnergy at such an exciting time in their transformation and growth journey. I believe that building talent, team engagement, and inclusiveness as well as developing sustainability are key competitive factors, and look forward to working with the team to execute on these areas to take our business to the next level."

Managing Director

John Begley, Managing Director

Harbour Energy appoint Belgacem Chariag and Louise Hough to Board

Harbour Energy Plc has announced today the appointment of Belgacem Chariag and Louise Hough as independent NonExecutive Directors. Belgacem and Louise will join the Board on 1 May 2023 and will stand for election by shareholders at the Company’s Annual General Meeting to be held on 10 May 2023.

With current CFO stepping down, Carnarvon promotes from within to fill the role

Australian oil and gas company Carnarvon Energy has picked a new Chief Financial Officer (CFO), after its current one decided to resign.

Carnarvon Energy announced on Friday, 3 March 2023, the appointment of Alex Doering to the CFO role, effective from 1 June 2023. Doering’s appointment follows the decision of incumbent CFO, Thomson Naude, to depart Carnarvon in mid2023 after 13 years of service.

Thomson Naude, Departing Carnarvon CFO, remarked: “I am pleased to be leaving Carnarvon in such a strong position. Together with securing the partial Bedout divestment with CPC Corporation, Taiwan, and with a strong level of interest from traditional lenders and alternative funding sources for the Dorado development, the business is in excellent financial shape. I look forward to remaining a close friend and strong supporter of Carnarvon into the future.”

The Australian oil and gas player explains that Doering, who has been with the firm for over ten years, is the current Financial Controller, as well as being Joint Company Secretary. Doering is a qualified Chartered Accountant, an Associate of the Governance Institute of Australia and has a Graduate Diploma in Corporate Finance.

Adrian Cook, Carnarvon Managing Director and CEO, commented: “I would like to welcome Alex to the role of CFO. He has amply demonstrated his ability to undertake this role over the past few years and it is exciting to see the next phase of his career progression within the business. On behalf of the entire Carnarvon team, my gratitude goes to Thomson for his excellent record of service to the business over the past 13 years. He leaves Carnarvon with great financial strength and well equipped to meet its funding requirements upon targeted FID of the Dorado development.”

5 6

ASCO Appoints Business Development & Operations Manager To Lead Growth In Northeast England

Global integrated logistics and materials management specialist, ASCO, has appointed Ryan Thompson as Business Development & Operations Manager for Northeast England. Based in Sunderland, Ryan will lead the company's growth in the northeast, while overseeing regional operations for its Ship Agency business, Seletar. As one of the leading ship agents for the UK

7 8

Belgacem has extensive experience in the energy, materials and chemicals industries. He has held a variety of leadership positions within oil field services companies, including nine years at Baker Hughes and before that over 20 years at Schlumberger.

Most recently Belgacem was Chairman and CEO of Ecovyst Inc., a leading global provider of specialty catalysts, materials, chemicals and services. He is currently a non-executive director for Helmerich & Payne, Inc., a New York listed provider of drilling solutions and

technologies for oil and gas exploration and production companies. Belgacem will also join the Board’s Health, Safety, Environment & Security Committee and the Nomination Committee.

Louise has a wealth of experience and deep understanding of both the financial and energy markets, having spent 25 years at UBS where she held a variety of roles, including Head of Specialist Sales. More recently, Louise was Head of International Investor Relations for Saudi Aramco, playing a lead role in preparing the company and management for its IPO and first public bond issuance’s. She was also a member of the Saudi Aramco Sustainability Steering Committee, working extensively on all aspects of ESG reporting and has significant experience advising investors, boards and executive management teams on capital marketsrelated activity and sustainability and governance issues. Louise will also join the Board’s Audit & Risk Committee and the Remuneration Committee.

His appointment comes at a pivotal time for Ashtead Technology as the company continues to build momentum in the offshore renewable energy sector supporting the construction and installation stages of offshore wind farm developments.

Ashtead Technology strengthens team with new offshore renewables appointment

International subsea rental equipment and solutions specialist Ashtead Technology has appointed Rich Fry as Group Business Development Manager – Renewables.

The appointment underlines the company’s strategic ambition to accelerate the growth of its capabilities, services, and track record in the offshore renewable energy sector to strengthen its market position and support customers globally in the delivery of the energy transition. Rich brings strong credentials to the company with over a decade of experience working with equipment manufacturers, installation and O&M contractors in various engineering, project management and business development roles in the offshore renewables market.

energy industry, Seletar provides crew coordination, freight management, procurement services, onshore logistics, and an extensive range of complementary services such as fuel provision, industrial tank cleaning, waste management, and ship spares logistics. Seletar's services are facilitated by its eight strategic UK locations, serving more than 20 neighbouring ports.

With over six years of experience as a Ships Agent and a history within the marine industry, Ryan brings specialist skills and knowledge to the ASCO team. Outside of work, Ryan utilises his skipper experience by volunteering as a crew member for the RNLI.

Bob Gillespie, Ashtead Technology’s Commercial Director, said: “Offshore renewable energy is a key growth sector for our business with offshore wind projects now accounting for a significant proportion of our Group revenue. Working alongside our highly skilled team, Rich will play a key role in leveraging our existing strengths and capabilities to grow our presence in the global offshore renewable energy market utilising his wealth of domain knowledge and industry expertise. I’m looking forward to working with Rich and our wider team of experts to support the continued delivery of best-inclass and cost-effective offshore wind energy lifecycle solutions for our customers.”

Commenting on his appointment, Rich, said: “I have witnessed Ashtead Technology’s impressive growth over recent years, and it is a privilege to be able to play a part in the next stage of the company’s exciting growth journey. Ashtead Technology has developed a strong position in offshore renewables and I look forward to building on this track record through raising awareness of the broader range of technologies, expertise and services we have to offer from across the Group.”

Ryan said: "I am proud to be joining ASCO to support them at this significant stage of their growth in the northeast. I look forward to meeting with clients and colleagues, both old and new, to discuss ASCO's full range of logistics services and how Seletar can support them with specialist ship agency services."

Ross Irvine, General Manager for Seletar, said: "Ryan is a great addition to the ASCO team, and his expertise will be a valuable asset to us. I look forward to working with him to develop our support in the region and share the breadth of services we offer."

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SAFE, SMART & EFFICIENT

The complete package for well decommissioning

www.wellsafesolutions.com

Well-Safe Solutions provides a ground-breaking approach to the safe and cost-efficient decommissioning of on and offshore wells. We offer a specialist well abandonment service that allows operators to meet the challenges and regulatory imperatives around decommissioning, while significantly reducing costs.

Well-Safe Solutions supporting decommissioning of bp Kate wells in North Sea

isolation criteria including identifying and quantifying zones of flow potential and risks associated with redevelopment.

“In addition, we will also examine existing barriers and optimise the barrier strategy, taking into account the attributes of the region to safely and efficiently deliver this project.”

Well-Safe Solutions personnel will work alongside bp staff throughout, realising the decommissioning company’s promise to provide safe, smart, and efficient well decommissioning through collaboration.

International well decommissioning specialists Well-Safe Solutions is supporting the decommissioning of two suspended wells in bp’s Kate field in the North Sea, 220km from Aberdeen.

The programme of work, expected to be executed from the Noble Innovator jack up vessel during Q2 2023, will see WellSafe Solutions carry out well engineering support services using its bespoke Well

Decommissioning Delivery Process (WDDP).

Ruth Thomas, Subsurface Team Lead at Well-Safe Solutions, said: “We are very much looking forward to supporting bp with this work scope, which involves detailed subsurface and well engineering basis of design studies ideally suited to our specialist capabilities.

“Well-Safe Solutions will be instrumental in establishing and evaluating key subsurface

James Richards, Well Abandonment Director at Well-Safe Solutions, added: “The Well Decommissioning Delivery Process (WDDP) guides operators through the well plug and abandonment process efficiently and effectively, without the extended commitments and high costs historically associated with engineering resources over long periods.

“The WDDP is built to realise the benefits of capturing, retaining and sharing of knowledge between our personnel, clients and stakeholders.”

This announcement is the latest in a busy year for Well-Safe Solutions, as it prepares for the mobilisation of the Well-Safe Defender and the fitting out of the Well-Safe Guardian with a bespoke dive spread system by summer 2023.

Neptune Energy to spend $23 million on decommissioning in Germany this year

Neptune Energy today announced it will spend $23 million on a targeted decommissioning program in Germany this year, plugging and abandoning wells which have ceased production and removing associated infrastructure.

Operations have now been completed on the plugging and abandonment (P&A) of a well in the Bentheim gas field, located in western Lower-Saxony, with a second well on the field due to be decommissioned later in 2023.

It follows the P&A of two wells in the Itterbeck-Halle field in recent months.

Andreas Scheck, Managing Director for Neptune Energy in Germany, said: “Neptune continues to play an important role in

supporting energy security in Germany, operating production assets across Eastern and Western Germany, and in the Rhine Valley in the south.

“Decommissioning is an important and natural step in the lifecycle of our business and we are committed to returning these sites to nature safely and responsible, once production has ceased.”

Last year, Neptune spent $12 million on abandonment and renaturation activities in the country. Plans are also being developed for decommissioning operations in the Fronhofen gas field, the Reitbrook West oil field, and the Victorbur mud pit.

Across its global portfolio, Neptune Energy expects to spend approximately $112 million on decommissioning activities in 2023.

Decom Engineering makes the cut in Congo decommissioning project success

end of the jumper, with the chop saw deployed by ROV with hot stab capability, and using a Tungsten Carbon Tip blade with an average cutting time of 1 hour 15 minutes.

The Congo project follows other successful workscopes on behalf of major oil and gas operators and contractors including workscopes in the North Sea, Mauritania, Norway, and Gulf of Thailand.

“Our latest project in deep water offshore DCR is another tick in the box for the versatility, safety and efficiency of our cutting technologies, adding to an extensive track record of completed workscopes in the major hydrocarbon producing regions.

Decom Engineering’s (Decom) specialist cutting technology has been successfully deployed on a decommissioning project offshore West Africa.

Decom deployed its C1-24 chop saw in water depths of up to 1,050 metres as part of an operation to recover a jumper connector on behalf of Total Energies in the Gulf of Guinea, offshore the Democratic Republic of Congo.

The workscope included the cutting of the insulated 6” Duplex flowline at each

Established in the United Kingdom in 2011 and with bases in Aberdeen and Belfast, Decom is an R&D specialist focusing on the design and fabrication of cutting solutions and innovative decommissioning equipment, with a growing reputation for providing complex deep water project solutions.

Decom Engineering managing director, Sean Conway, said: “Our C1 range of chop saws are firmly established in the decommissioning sector where the nature of the work and complexity of the projects require smart solutions and fresh thinking.

“Decommissioning redundant piping infrastructure or repurposing assets to be converted for low or zero carbon energy storage is a massive global market, and we are committed to investing in research and development to ensure our clients have the most sustainable means at their disposal to address their needs.”

The C-1 chop saw range is certified for use in water depths of up to 2,000 metres, has multiple buoyancy options, hot stab integration, blade reverse capability and bespoke customisation capabilities.

Decom are expanding its C1 chop saw range with development of new model which will be capable of cutting piping infrastructure of up to 46” in diameter.

James Fisher disposes of nuclear decommissioning services firm

asset disposals made over the last three months are important steps in streamlining the group's operations and strengthening the balance sheet.

"JFN has some valuable and unique capabilities and requires the right investment to exploit the market opportunities in front of it.

"In Rcapital we are pleased to have found the right owner for the next chapter in this business's development. We wish the business and its employees every future success."

Josie Richardson, investment director at Rcapital, added: "JFN plays a crucial role in the UK's nuclear decommissioning industry and, hence, the delivery of the government's strategic energy plan.

A supplier of engineering, manufacturing and technical services to the UK's nuclear decommissioning industry has been sold by marine services provider James Fisher and Sons.

Myneration – a wholly-owned investment vehicle of Rcapital Partners – is behind the acquisition of the entire issued share capital of James Fisher Nuclear Holdings Limited (JFN) and related properties.

The sale forms part of the James Fisher board's ongoing commitment

to "rationalise and focus the group's portfolio".

Management and staff will remain with the business as it transitions into new ownership and Rcapital will provide JFN with a £3m secured revolving credit facility to fund the growth of the business.

Chief executive Jean Vernet said: "The sale of JFN is a further step in the implementation of our strategy to rationalise and focus the portfolio and, taken together, the business and

"Its management team, market-leading technical services and unique UK-based experience in specialist fields put it in a strong position.

"We are pleased to have the opportunity to support the business as it enters a new phase of growth and development."

Rcapital was advised by Cortus Advisory Group (Financial), Pinsent Masons (Legal) and PHD Property Advisory (Property). James Fisher & Sons Plc was advised by Teneo Financial Advisory (Chris Nichols, Craig Lukins, Dom Young).

Field Development Update

Offshore O&G-related engineering, procurement and construction (EPC) contract award value year-to-date is estimated at approximately US$7 billion (excluding letters of intent), of which contracting activities in the last 30 days have been driven by the Azule Energy-operated Agogo development offshore Angola. In addition to the finalisation of a charter agreement with Yinson for a floating production system (FPS), Azule Energy awarded Baker Hughes a contract for the supply of 23 subsea trees, whilst TechnipFMC received a contract for the engineering, procurement and supply of jumpers, flowlines, risers and all associated ancillary equipment for the field. Furthermore, Aker Solutions was contracted to supply dynamic and static subsea umbilicals, and Subsea 7 confirmed it was awarded a transport and installation (T&I) contract for approximately 98km of flexible pipes, 30km of umbilicals and associated subsea structures.

Other notable contract awards recorded during the period under review include reports that OneSubsea will manufacture and supply 16 subsea trees and associated equipment for Petrobras’ Buzios-10 project in the Santos Basin, offshore Brazil. Initial delivery of the subsea components is scheduled for 1Q 2025, with the P-82 FPSO to be deployed at the field currently under construction at Sembcorp Marine’s yard.

On the other hand, a prevailing high inflation environment continues to impact field development timelines as BW Energy stated that a final investment decision (FID) on its Maromba field offshore Brazil is subject to further cost optimisation. Meanwhile, TotalEnergies has also reiterated its concerns over the cost of its Cameia-Golfinho project amid anticipation of a final investment decision (FID) in 2023.

Looking forward, Westwood forecasts a further US$70 billion of offshore O&G-related EPC spend for the remainder of 2023, driven by c.250 subsea trees, c.5,000km of subsea umbilicals, risers and flowlines (SURF), c.6,600km of pipelines, c.230 fixed platforms and 17 FPS units. Key projects anticipated to be sanctioned in 1H 2023 include Eni’s Baleine Phase II development (Ivory Coast), Petrobras’ Sergipe-Alagoas (Brazil), ExxonMobil’s Uaru (Guyana), Mellitah’s Structure A & E (Libya) and Qatar Energy’s North Field South expansion project.

Offshore Rig Update

The global committed jackup count totalled 398 units in February, one rig lower than the previous month. The marketed available and cold stacked jackup count now stands at 40 and 55, respectively. Marketed, committed utilisation dipped by 1% to 91%, while total utilisation sustained at 80%. During the month, a total of 10 new contracts were awarded and three contract options were exercised, amounting to 4,967 days (13.6 rig years). Among the more notable fixtures were new multi-year deals from Saudi Aramco to Valaris for the Valaris 108 and Valaris 76, with work commencing in 2023 and 2024, respectively.

The global committed semisubmersible (semi) count grew by one to 67 during February. There are 13 available and 15 cold stacked rigs remaining in the fleet. Marketed, committed utilisation and total fleet utilisation rose to 83% and 70%, respectively. Apache and Well-Safe Solutions agreed on a multi-year framework agreement to decommission wells in the North Sea for a period of three years firm plus two-year options for both the Well-Safe Guardian and Well-Safe Defender.

Finally, drillship demand grew by three units to 81 over the month, leaving only two marketed units available plus 14 rigs cold stacked. Marketed, committed utilisation and total fleet utilisation grew to 97% and 84%, respectively. There were four new contracts awarded and five options exercised in February, totalling 4,092 drilling days (11.2 rig years). Three Stena Drilling rigs were awarded work, including a two-year contract for the Stena IceMAX with BP in the US Gulf of Mexico.

Offshore Wind Update

Since the last update, Vestas has been selected as the preferred turbine supplier for the 600 MW Wando Geumil wind farm, located offshore South Korea. Under the agreement, Vestas will supply a total of 40 V236-15 MW turbines, and it will also provide 20 years of operation and maintenance service for the wind farm once it comes online.

Vestas has also been selected by RWE and Northland Power as the preferred turbine supplier for the 225 MW Godewind and 435 MW Nordsee 2 wind farms, located offshore Germany. The V236-15 MW turbine model will be delivered to the two wind farms, subject to a successful FID being taken on the projects.

Dominating headlines was news in the US, with the state of New Jersey opening its third offshore wind solicitation. Approval was granted for this third round by the New Jersey Board of Public Utilities (NJBPU), with applications being accepted between 6 March and 23 June 2023. New Jersey is aiming to awarded between 1.2 GW and 4 GW of offshore wind capacity in this latest solicitation.

Finally in Germany, an additional four offshore wind project site tenders were launched by Germany’s Federal Network Agency. The areas are the 420MW N-3.5, 480MW N-3.6, 630MW N-6.6 and 270MW N-6.7. Bids will be based on qualitative and quantitative criteria. Up to 60 points will be awarded for the bid value. The deadline for the submission of bids is 1 August 2023.

STATS & ANALYTICS

PROVIDED BY

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

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RNG FORUM

4-6 APRIL 2023, DRUMMONDVILLE, CANADA

SUSTAINABLE SKIES WORLD SUMMIT

5-6 APRIL, FARNBOROUGH, UK

ATYRAU OIL&GAS

5-7 APRIL ATYRAU, KAZAKHSTAN

SOLAREX ISTANBUL

6-8 APRIL, ISTANBUL, TURKEY

SAVENERGY

7-9 APRIL, NICOSIA , CYPRUS

BIEL LIGHT + BUILDING

12-15 APRIL, BUENOS AIRES, ARGENTINA

GREEN ENERGY EXPO

12-14 APRIL, DAEGU, SOUTH KOREA

HAMBURG MARITIME FORUM

18-19 APRIL, HAMBURG, GERMANY

SEISMIC

19 APRIL, P&J LIVE, ABERDEEN

INTERNATIONAL

GASSHOW EXHIBITION & CONFERENCE

19 APRIL, WARSAW, POLAND

BATTERY TECH EXPO 20 APRIL, SILVERSTONE, UK

EXPO GAS

19-20 APRIL, KIELCE, POLAND

WIND EUROPE

25-27 APRIL, COPENHAGEN, DENMARK

POWER & ELECTRICITY WORLD AFRICA

25-26 APRIL, JOHANNESBURG, SOUTH AFRICA

By Niall McLean and Rebecca Morrison, Brodies LLP

THE RISE OF "GREENWASHING"

LITIGATION AND HOW IT AFFECTS THE ENERGY SECTOR

Introduction

One emerging trend is a type of litigation challenging so called "greenwashing", when a public body or company describes its operations or its products as more environmentally friendly or "green" than they actually are. Greenwashing can also be used to describe when an organisation attempts to emphasise sustainable aspects of a product or business practice to draw attention away from the organisation's involvement in other environmentally harmful practices.

Litigation in this area usually arises when consumers or other affected persons seek to hold organisations accountable for their claims about their products, or the nature of their operations, and how they are better for the environment.

Greenwashing litigation is of increasing importance given the widespread public debate about the contribution that individual lifestyle and consumer choices have on reducing the impacts of climate change. It also highlighted the importance of clear and accurate messaging by organisations about their green credentials.

We have seen a significant rise in greenwashing challenges before the courts and regulators like advertising standards boards. While these challenges have spanned various sectors including aviation and food and beverage industries, they have predictably centred on the energy sector given increasing societal pressures to reduce fossil fuel usage and switch to renewable energy sources.

One example of a recent greenwashing challenge in the energy sector is the lawsuit brought in the United States in July 2022 by environmental groups and thinktanks, including Client Earth and the non-profit organisation US Public Interest Research Group (PIRG) Education Fund against Washington Gas Light Company, a natural gas utility. , The groups claim that Washington Gas has breached consumer protection laws by misleading customers by using language and imagery that suggests methane gas is a sustainable and environmentally friendly fuel.

Washington Gas is said to have advertised that methane or natural gas provides "clean, efficient and reliable energy" and that there are environmental benefits associated with switching to natural gas from electrification. The challengers claim that such advertising is greenwashing the environmental impact of methane gas which itself is a fossil fuel that contributes to global warming. Washington Gas has filed to have the case dismissed but the court has not yet set the matter down for hearing.

Further afield in Australia, shareholder advocacy group, Australian Centre for Corporate Responsibility (ACCR), commenced legal proceedings against the Australian gas company, Santos alleging that it breached Australian corporate and consumer protection law by attempting to greenwash its operations to appeal to investors by claiming to produce "clean fuel". The shareholders also challenge Santos' claim that it will reach net zero emissions by 2040 noting its plans for fossil fuel expansion. The legal challenge (like many greenwashing challenges) is set to be a long-running litigation, having commenced in August 2021, and with ACCR expanding its allegations around greenwashing in August last year following additional information produced by Santos in the litigation discovery process.

Recent claims have also demonstrated that it is not just energy companies who need to be aware of the risks of climate litigation –other businesses or organisations who are involved in the sector may also find themselves being targeted. For example, last month in February 2023 a group of

three French NGOs announced they had raised an action against major European bank BNP Paribas. The campaigners allege BNP Paribas has failed to comply with the responsibilities imposed by French law on large businesses there to set out clear measures to prevent environmental damage caused by business activity. The groups want BNP Paribas to immediately stop financing the expansion of fossil fuels and adopt an oil and gas exit plan.

The action demonstrates just one of the many novel legal approaches which environmental groups are now pursuing to put pressure on companies regardless of whether they have a direct link to the energy sector, if it is believed that their conduct or actions may have negative environmental impacts and insufficient action has been taken to slow the effects of climate change.

What does 2023 have in store?

The energy sector is likely to continue to be a primary focus for climate litigation targeting greenwashing. Companies working within the sector ought to be alive to the risk of greenwashing challenges, and proceed with caution when considering new messaging and advertisements promoting more environmentally friendly practices and environmental commitments, such as intentions to reduce carbon emissions or commitments to reach net zero.

Niall McLean