OGV Energy - Issue 69 - June 2023 - Offshore Wind

OFFSHORE WIND

GLOBAL ENERGY NEWS

WORLD PROJECTS MAP

MONTHLY THEME

INNOVATION & TECH

RENEWABLES

CONTRACT AWARDS ON THE MOVE

DECOMMISSIONING

STATS & ANALYTICS

LEGAL & FINANCE EVENTS

FEATURING

JBS Group I The Impulse Group

Ashtead Technology I Dräger

Offshore Solutions I Proserv

Global Maritime I QHSE Aberdeen

Decom-Mission

Welcome to the June edition of ‘OGV Energy Magazine’ where we will be exploring the theme of ‘Offshore Wind’.

A big thank you to our front cover partner JBS Group, who are supporting multiple engineering projects in the renewables sector and have recently won a ‘Going Global’ award at the coveted ‘Northern Star Business Awards’.

In a bumper publication, we also have contributions from Proserv, Global Maritime, Offshore Solutions Group, Ashtead Technology, Dräger, QHSE Aberdeen, HFI, Sword Group and Norman Broadbent.

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 and the USA 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

STATS GROUP

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Booth Welsh Managing Director, Martin Welsh, along with the senior leadership team, are delighted to announce the successful completion of their Management Buyout. This marks an exciting new chapter for the business.

As of April 2023, the full umbrella business, Booth Welsh Holdings, is now fully owned by the senior leadership team. This returns the business to its independent roots under which they successfully operated for the first twenty-five years in operation from 1989 to 2014.

Booth Welsh, and their subsidiary iTech, will continue to develop a strong brand and culture, operating as an agile and responsive business with a 300+ workforce. Operating throughout the UK and beyond, Booth Welsh will remain headquartered at their existing premises in Irvine.

ModuSpec success in MENA region

ModuSpec has recently been awarded a series of new contracts for various clients in the Middle East and North Africa (MENA) region, worth over £1 million.

In Egypt, work covering seven rigs has commenced for two existing clients, providing

continuous rig assurance and verification services for operational units both on and offshore. One project is for shared jack-up rig intake where two operators are utilising ModuSpec to provide a collaborative approach, sharing resources and delivering a focussed and engaged service. Elsewhere, ModuSpec has also been selected by a local joint-venture partnership to deliver rig inspection and acceptance services for a land rig being reactivated.

In the Middle East, ModuSpec has been supporting an international oil company with the reactivation of a land rig that was mobilised from Continental Europe to the UAE. The rig had previously been cold stacked for several years and has been contracted for a high-profile exploration well with significant risk of H2S gas during the drilling programme.

STC INSISO secures contracts to provide risk and assurance software to water utilities in England

The team at Appetite for Business is celebrating after being named in the prestigious Sunday Times Best Places to Work 2023 list alongside household names such as David Lloyd Leisure, FatFace and Pizza Express.

The annual Top 100 identifies UK organisations with the highest employee engagement and wellbeing levels, which in turn helps retain and recruit employees. The award is based upon the organiser’s trust index employee survey and culture audit.

In addition to being featured in the rankings, Appetite was also highly commended in the Best Places to Work for Women category. The winner was OVO Energy.

Environmental energy service company, Legasea, the first subsea company built around circular economy principles, today announced the launch of its apprenticeship programme.

The programme will offer two positions for Circular Economy Engineering Apprentices and one position for a Business Administration Apprentice.

“We are excited to launch our apprenticeship programme and to help create the next generation of circular economy leaders,” said Ray Milne, Operations Director at Legasea. “These apprenticeships will provide young people with the skills and knowledge they need to make a real difference in the world. We are committed to creating a sustainable future for the subsea industry and these apprenticeships are a key part of our strategy to achieve this goal.”

Aberdeen-headquartered, STC INSISO has announced two significant software agreements with water utilities covering South West England, the Midlands and Wales.

Severn Trent Water has signed an 18-month SaaS (software as a service) contract to use STC INSISO’s audit and investigation tool, COMET Investigate, and this could potentially be extended to a three-year deal. Meanwhile South West Water, has renewed its contract for the product, with both deals totalling over £70k.

South West Water, and parent company Pennon Group, have been COMET customers for several years. STC INSISO created content for the company’s HomeSafe programme previously, which was designed to improve safety performance through the delivery of e-learning modules.

FutureOn expands its reach into Latin America with multi-year contract award from Petrobras

Dales Marine Services are delighted to launch its 2023 apprenticeship recruitment campaign, with training opportunities across its Aberdeen, Leith, and Greenock dry dock facilities. Applications are now open and close at the end of June; interviews will be held in July, and new apprentices will commence with Dales Marine during August.

Dales Marine, a well-established ship repair and marine specialist, continues its commitment to developing young workers and works closely with local schools and colleges to inspire pupils to consider entering the maritime/ship repair industry as a future career. Currently, Dales Marines has thirty-four apprentices across their dry dock sites.

FutureOn, the global energy software company, has secured a multi-year contract with Petrobras to license its groundbreaking digital design and decision-making platform, FieldTwin. The major Brazilian oil and gas company will leverage the platform to spearhead the digital transformation of its subsea operations.

FieldTwin will disrupt the current subsea workflow, enabling Petrobras’ teams to accelerate project delivery from concept to operations. The platform –used by a number of global operators – has a proven track record of achieving cost and time efficiencies across the life cycle of assets.

Booth Welsh Holdings Returned to Original Ownership

It’s official! Appetite for Business named one of Britain’s best places to work

Legasea Launch Circular Economy Apprenticeships

Dales Marine Services Apprenticeship applications window is now open.

Specialists in Flexible Pipe Riser and Flowline Integrity Management. TIG are also dedicated to developing a knowledge hub for flexible pipe understanding and research by utilising joint ventures with operators.

theimpulsegroup.com

Kloeckner Metals UK is the largest mill independent multi-metal stockholder & distributor in the UK, and a key member of the Klöckner & Co. group, one of the largest independent distributors of steel and other metal products as well as one of the leading steel service centre companies worldwide.

www.kloecknermetalsuk.com

At Apollo, we engineer smart, sustainable solutions for the energy sector, working across oil and gas, hydrogen and carbon capture, nuclear, and offshore renewables.

Fuelled by a diverse and talented workforce, we deliver transformational engineering projects. At Apollo, we’re not afraid of a challenge, because impossible only means not possible yet.

www.apollo.engineer

Sentinel Subsea specialises in providing advanced passive integrity monitoring solutions for subsea infrastructure and equipment. Operating assets in a marine environment can often be complex and challenging. With transformative passive technologies, Sentinel Subsea delivers continuous subsea monitoring solutions that lower risk, reduce costs and protect the environment.

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Engineering, design, fabrication, installation, service and maintenance of offshore assets and comprehensive project management across all phases of energy projects.

www.semcomaritime.com

OceaneeringWe provide engineered services and products to the oil and gas, defense, entertainment, logistics, aerospace, science, and renewable energy industries.

www.oceaneering.com

Revolutionising your Supply Chain Management with Digital Inventory Systems. A Platform which enables Operators and their Global Suppliers to collaborate through a trusted network, in order to minimise lead items, reduce supply chain complexity in support of local and regional manufacturing.

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A leading provider of innovative Living Quarters Refurbishment, Architectural Outfitting, HVAC, Piping, Electrical and Modular new build to the International Marine, Offshore, Renewables and Defence sectors.

www.modutec.com

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Providing E2E Corporate Training, Compliance & Education Solutions in Virtual & Augmented Reality. IoT Integration with predictive AI models, leveraging best-in-class data analytics and visualisation for collaboration and Actionable insights.

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Caledonia Competence is a Competence and Learning & Development Consultancy providing specialist services in the area of personnel assessment and development. Core services included are the set-up, auditing and health checks of client Competence Management Systems.

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Wintershall Dea is Europe’s leading independent natural gas and oil company with more than 120 years of experience as an operator and project partner along the entire E&P value chain.

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Your worldwide Supply Chain partner. With a large network all over the world, GEODIS is a true growth partner to its clients offering end-to-end solutions based on its knowhow, its infrastructure, processes and information systems that ensure operational excellence and the best service quality.

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UK NORTH SEA Energy Review

By Tsvetana Paraskova

Offshore Energies UK (OEUK) says that decarbonisation is ‘one of the greatest challenges of our time’, and announced a conference on the topic in Aberdeen in October. At the conference, the leading representative body for the offshore energy sector will also publish its annual Emissions Report, highlighting the progress the sector continues to make while supplying the energy the country needs in a more sustainable way.

According to OEUK, for the energy sector, decarbonisation means reducing greenhouse gas emissions from the production of the energy the UK needs while also cutting the emissions from the usage of that energy.

The UK’s offshore oil and gas industry operating in the North Sea was one of the first industrial sectors to commit to the UK’s Government net zero target of 2050, and the 2045 such target in Scotland.

“Offshore energy companies are already scaling up the solutions needed to fight climate change, expand our energy mix, and position the UK as a future world-leader in low-carbon solutions,” said OEUK Sustainability and Policy Director Mike Tholen.

“By the mid-2030s, oil and gas will still provide 50% of our energy needs, so we must make sure the UK can continue supplying its own demand in a sustainable and cleaner way instead of increasing our reliance on costly, higher-carbon imports.”

Since the start of last year, the North Sea Transition Authority (NSTA) has given the go-ahead to seven projects with potential to produce 100 million barrels of oil and gas, the authority said after a meeting of major North Sea energy operators.

Seven projects capable of producing nearly 100 million barrels and requiring about £1.1 billion of expenditure have been approved by the NSTA since the start of 2022. Those projects can significantly boost the UK’s security of supply amid the energy transition.

Operators in the North Sea currently plan to progress 22 projects in the coming years which, subject to robust emissions checks, would target 1.5 billion barrels of oil and gas resources, according to the NSTA.

Stuart Payne, NSTA Chief Executive, said,

Decarbonisation and net zero, decommissioning contracts, and operational updates on oil and gas fields in the North Sea were the key themes in the UK oil and gas industry over the past weeks.

“The North Sea boasts a vast array of oil and gas, wind and storage resources which can secure the UK’s supply of cleanly-produced energy, rapidly reduce its greenhouse gas emissions, and support hundreds of thousands of skilled jobs. The NSTA will lead the way on efforts to integrate these resources, optimising their enormous potential.”

North Sea operators held open and constructive discussions with the NSTA representatives and placed “a sharp focus on actions and projects which accelerate the transition to net zero,” Payne added.

In the middle of May, the NSTA revoked offshore petroleum licences P.108, P.313 and P.340 insofar as they relate to Fujairah Oil and Gas UK 12 Limited (UK12). Consequently, UK12 is no longer a party to any of these licences. The licences remain in force as they relate to the other licensees.

Notices were served on UK12 in January 2023 and as no further change of control was arranged the NSTA used its powers to partially revoke the licences.

This was the first time in which the NSTA has used its power to partially revoke a licence, and the action has been taken because UK12 did not meet regulatory requirements, the authority said.

In company news, Neptune Energy and its partner, Spirit Energy, announced production had started from the 11th well at its operated Cygnus gas field in the southern North Sea.

The new well is expected to produce around 4,000 barrels of oil equivalent per day (boepd), enough gas to heat around 200,000 UK homes. Together with the 10th well which started up earlier this year, the Cygnus facility is expected to produce enough gas per day to meet the needs of around 1.9 million UK households, Neptune Energy said.

“Cygnus plays an important role in supporting UK energy security and has the capacity to supply around 6% of the country’s gas demand,” Neptune Energy’s UK Country Director, Alan Muirhead, said.

Service provider for the energy industry, Petrofac, said in its 2022 results release that performance last year was negatively affected by challenges in the legacy engineering and construction (E&C) portfolio.

“Petrofac’s performance for 2022 was severely impacted by the challenges in the Group’s legacy E&C portfolio, which continues to feel the direct and indirect effects of pandemic delays,” said Tareq Kawash, Petrofac’s Group chief executive since 1 April 2023.

The asset solutions and Integrated Energy Services (IES) divisions are performing well, Kawash added.

“The outlook for new awards in E&C remains robust, supported by high energy demand and increased focus on energy security and the energy transition. E&C is well positioned on a number of other near-term prospects

as evidenced by the recent multi-year, multiplatform Framework Agreement award in support of TenneT’s 2GW offshore wind programme,” the CEO noted.

Reabold Resources said that its analysis had identified on PEDL 183 licence a significant potential discovery, Crawberry Hill, which was drilled by Rathlin in 2013. Reabold’s priority now is to develop plans with the aim of making this a drill-ready appraisal opportunity.

In addition, a Competent Person’s Report (CPR) has highlighted the potential across all of Reabold’s key central and northern North Sea assets, namely: the Inner Moray Firth, East Shetland Basin, and the North West of Shetland. The opportunities comprise a number of play types of both gas and oil with proven potential from analogue fields.

IOG plc said in an operational update in midMay that first gas from the Blythe H2 well is still expected to commence by the end of the second quarter this year. Production from Blythe H2 will be initially ramped up to safely and efficiently manage the production of the resident pipeline fluids into Bacton, then expected to build up to 30-40 mmscf/d rate post ramp-up, IOG said.

The Blythe H1 well is initially planned to be shut in once the H2 well is fully onstream to reduce water production into the pipeline; however, the H1 well will remain available for production, the company added.

Ithaca Energy has signed an agreement with Shell which defines a marketing process for Shell’s 30-percent working interest in the Cambo field in the West of Shetland region.

The project could progress to a final investment decision if Shell sells part of its interest or the entire 30-percent stake, Ithaca Energy said.

In all sale scenarios, Ithaca Energy would retain at least a 50-percent working interest in Cambo and will remain the operator of the asset.

“Our agreement with Shell represents a meaningful step towards the development of Cambo, the second largest undeveloped field in the UKCS and a key asset in helping maintain the UK’s future energy security. Securing a new owner for Shell’s stake is an important step in Ithaca Energy progressing to Final Investment Decision,” said Ithaca Energy’s CEO Alan Bruce.

“We are actively engaging, in a constructive manner, with the UK government in pursuit of the fiscal stability required to make critical investment decisions that will support the UK’s long-term energy security,” Bruce added.

Neptune Energy has received its best environmental, social and governance (ESG) rating to date from Sustainalytics, putting it in the top 3 percent of all global oil and gas companies rated by the organisation.

In its latest ESG rating report, Sustainalytics stated Neptune’s ESG reporting “is in line with best practice standards. It has an executivelevel ESG committee responsible for ESG issues. Furthermore, management integrates climate transition risks into the wider business processes,” Neptune Energy said.

In announcing the Q1 2023 results, Neptune Energy said that the Seagull development offshore the UK is close to completion with start-up expected in July.

Harbour Energy said in its Q1 results release that as far as capital allocation is concerned, the company reduced UK activity in certain areas due to the Energy Profits Levy (EPL), including partner cancelled programmes at Elgin Franklin and Beryl and rephasing of certain decommissioning activities.

Harbour Energy’s review of the UK organisation is on track to complete in the second half of 2023 and expected to result in a reduction of around 350 onshore positions. This is forecast to deliver annual savings of approximately $50 million from 2024, following an estimated $15 million one-off charge to be taken in Harbour’s 2023 interim financial statements.

Hartshead has completed the farm-out agreement with RockRose Energy for the divestment of a 60-percent equity interest in its UK Southern Gas Basin License P2607. The farm-out materially de-risks the project and provides a clear pathway to full financing and subsequent project development of the previously producing gas fields.

A Final Investment Decision (FID) for Phase 1, which includes the redevelopment and drilling of the Anning and Somerville fields, will be taken in the third quarter of 2023, Hartshead said.

Shearwater has been awarded two 4D surveys by TotalEnergies over the Laggan, Tormore, and Edradour fields with an option to extend to the Glenlivet field. The surveys, beginning in May, will last around two months.

Diamond Offshore has been awarded a contract for the harsh environment semisubmersibles, Ocean Patriot, Ocean Endeavor, and Ocean GreatWhite in the UK North Sea, the service company said Energy services provider Expro has secured a new contract with Harbour Energy for a well abandonment campaign as part of the decommissioning project for the Balmoral area in the UK Continental Shelf. The multiyear contract, valued at more than $20 million, will utilize Expro’s Subsea Well Access technology with a combination of open-water and in-riser applications deployed from a semi-submersible rig.

Saipem has been awarded a contract for decommissioning activities in the North Sea by EnQuest Heather Limited, the Italybased energy services provider said in the middle of May. Saipem will work on the decommissioning of the Thistle A Platform, around 510 kilometres northeast of Aberdeen, in a water depth of 162 meters. Saipem’s activities entail the engineering, preparation, removal and disposal of the jacket and topsides, with possible extension to further subsea facilities. 

Stuart Payne, NSTA Chief Executive

BRENT OIL PRICES OVER THE YEARS

THE DIGITAL MEDIA STRATEGIST

DIGITAL MEDIA AND YOUR BOTTOM LINE

By Eric Doyle

What does Digital Media mean to you and your business?

Driving internet results: Making sure that your organisation, your team and all of your digital content is head and shoulders above anyone else in your sector.

BRENT OIL PRICE 2022 - $128.44

Oil prices rose in June as tight global supplies outweighed worries that demand would be pressured by a flare up in COVID-19 cases in Beijing. Oil supplies were tight as OPEC and allies were unable to fully deliver on pledged output increases because of a lack of capacity in many producers, with sanctions on Russia and unrest in Libya slashing outputs.

Is it something you do because you think you should?

Do you see it as a necessary evil?

Or is it core to your commercial success?

Most businesses have a website and do some sort of Digital marketing, whether that's some advertising or posting content on Social Media, but why do we do it? What is it really for, what does it do for you and, more importantly, what could it be doing?

Making a definable and measurable commercial impact to our bottom line.

Not once or twice…consistently.

It all starts with creating a detailed digital commercial strategy. Defining exactly what you need to do and where you need to be in order to affect the results you want.

Whilst many are simply posting the odd bit of content every now and then because they feel it's good for ‘visibility’, others have realised the weight of the opportunity if they take a strategic approach to the digital aspects of their commercial strategy.

BRENT OIL PRICE 2018 - $72.02

Major-oil producing countries agreed to jointly raise exports. Officials from OPEC, as well as other major oil producers like Russia, were set to increase their total output by around 1% of the global oil supply. Despite it being a relatively small addition to the world energy market, the move nevertheless signalled a willingness to address rising prices.

We talk about the ‘Digital Twin’ of your sector, how over the last 10 years a curtain has appeared that separates the traditional, analogue commercial processes we've all utilised for many years, from the modern digital commercial world. This applies to all of us, regardless of which sector we work in, the Digital Twin of your commercial sector is growing.

Some have noticed this evolution in Marketing, Sales and Business development and have developed effective strategies and applications to allow them to flourish in the Digital Twin of their sectors. Others are curious but have not yet fully bought in and the remainder are unaware of the opportunity.

One of the fundamentals is that the strategies and plays are very different in the Digital Twin of your sector, to that of which we know as traditional demand generation tactics and techniques. The modes of operation are different, the language is different and it requires a shift in mindset and process.

We always start with a question: Who are the leading technical and commercial digital influencers in your sector..?

Being a technical and commercial influencer may not be something you've ever considered and the concept doesn't sit well with everyone, but as the digital commercial evolution continues to grow, it's important for all professionals, of all ages, all disciplines to realise that this is important.

I often advise business leaders who tell me that they don't like social media “you may not like social media but I'm sure you like revenue, profit, ebitda and growth…” - the digital mindset shift.

As the digital commercial world grows, those that are leading in digital are soaking up all of the attention, the connections, the conversations and the commercial interaction in your sector.

So, imagine if the leading technical and commercial influencers in your sector were you and your team…

BRENT OIL PRICE 2013 - $105.80

Oil demand in developing countries surpassed that of wealthy nations for the first time. This was a demonstration of how rapid growth in Asia was changing trade and increasing competition for resources. Rising demand had boosted global oil prices but also encouraged countries to increase supplies, helping to keep a lid on prices.

With Digital Media we focus on 4 main areas: Creating influence within important business communities: How you and your team provide consistent proof that you understand the challenges of your prospect base and can provide the correct solutions to those challenges.

Creating demand for your products and services: Allowing your digital audience to buy into you, your team and how you can help them.

Gaining algorithmic favorability: Working in a way that means that digital channels are working with you, to support you.

Whether you are an engineering company, a service company or make widgets…the Digital Twin of your sector is open for business and growing.

We are in the midst of the biggest shift in modern commerce since the industrial revolution - the digital transformation. The question is, are you leading the digital charge in your sector and taking all of the benefit, or are you playing in the margins..?

We run an ‘Introduction to Digital Commercial Strategy’ session that unpacks all of this, and we would be happy to walk you and your team through it. 

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

Europe Energy Review

By Tsvetana Paraskova

Equinor made a gas and condensate discovery near the Kristin field in the Norwegian Sea, but the primary exploration target for the wildcat well was to prove petroleum in Middle and Lower Jurassic reservoir rocks. Preliminary estimates place the size of the discovery in the Garn Formation between 0.2 and 1.1 million Sm3 of recoverable oil equivalent. The licensees will assess the discovery alongside other nearby discoveries/prospects, as regards further followup, the Norwegian Petroleum Directorate said.

In the middle of May, Equinor officially opened the Njord field, which had undergone extensive upgrades in the past years. Following the upgrades on the platform and the floating storage and offloading vessel (FSO), they are now ready for doubling the field life – and more than doubling production, the Norwegian energy giant said.

The Njord field started production in 1997 and was originally supposed to produce until 2013. Work with increased recovery means that there are still large volumes of oil and gas left, while new discoveries in the area can also be produced and exported via Njord. The field is now ready to produce and export oil and gas for another 20 years.

Neptune Energy and its partners, Vår Energi, Sval Energi, and DNO, began production from the Fenja oil and gas field in the Norwegian Sea. Fenja is expected to produce 35,000 barrels of oil equivalent per day (boepd, gross), via two oil producers, with pressure support from one water injector and one gas injector. Total reserves at the field are estimated between 50 and 75 million boe, of which 75 percent is oil and 25 percent is gas.

Oil & Gas

Norway’s Ministry of Petroleum and Energy announced the tender for the Awards in predefined areas (APA) 2023 on 10 May, encompassing the predefined areas with blocks in the Norwegian Sea, Norwegian Sea, and Barents Sea. Since the tender in 2022, the predefined areas (APA acreage) have been expanded by 78 blocks in the Barents Sea and 14 blocks in the Norwegian Sea. The deadline to apply for APA 2023 is 23 August 2023, while awards are expected during the first quarter of 2024.

Neptune Energy has also awarded a more-than-$100 million contract to Tenaris to provide equipment and services to support drilling activities on the Norwegian Continental Shelf. The contract covers the manufacture, transport, handling, and repair of a broad range of casing materials used in offshore drilling activities. Initially this will include support for one exploration well and one appraisal well in the Neptune-operated Gjøa area in the Norwegian Sea in 2023. The five-year contract has two two-year extension options.

Subsea7 was awarded a major contract by Turkish Petroleum for the second phase of the Sakarya gas field development offshore Turkey in the Black Sea. Subsea7 defines a major contract as being one where Subsea7’s share of revenue over $750 million. The contract is awarded to a consortium including Subsea7 and its partner in Subsea Integration Alliance, OneSubsea, as well as SLB and Saipem. The integrated project scope of the engineering, procurement, construction, and installation (EPCI) contract will cover the subsurface solutions including subsea production systems (SPS), subsea umbilicals and flowlines (SURF). Offshore activities are expected between Q2 2025 and Q3 2025, with optional scope between Q4 2026 and Q4 2027 subject to final investment decision by the client, Subsea7 said.

New hydrocarbon discoveries and project start-ups offshore Norway, opportunities to power offshore oil and gas platforms with wind power generation, and a number of projects and government awards in wind, solar, carbon capture, and green hydrogen marked the European energy scene this past month.

Drone photo of the Njord field in the Norwegian Sea. (Photo: Even Kleppa / Lizette Bertelsen – Equinor)

Low-Carbon Energy

Hywind Tampen, the world’s first project to deliver renewable power for offshore oil and gas, is already delivering power to the Snorre field, Equinor said in mid-May. This is a great milestone for the world’s largest floating offshore wind park, following first power to the Gullfaks field in 2022, the Norwegian firm said.

Another oil and gas operator offshore Norway, Vår Energi, has entered into a collaboration with Odfjell Oceanwind and Source Galileo to pursue a pilot project, GoliatVind, for floating offshore wind at the Goliat platform.

In a setback for a similar project, Equinor said on 22 May it would postpone a further development of the Trollvind offshore wind initiative indefinitely, due to rising costs and a strained timetable to deliver on the original concept.

“Trollvind was a bold industrial plan to solve pressing issues concerning electrification of oil and gas installations, bringing much needed power to the Bergen-area, while accelerating floating offshore wind power in Norway. Unfortunately, we no longer see a way forward to deliver on our original concept of having an operational wind farm well before 2030,” said Siri Espedal Kindem, vice president of renewables Norway.

In the UK, the North Sea Transition Authority (NSTA) offered for awards 20 carbon storage licences at offshore sites, including some near Aberdeen, Teesside, Liverpool, and Lincolnshire.

Once the new storage sites are in operation, they could make a significant contribution to the aim of storing up to 30 million tonnes of carbon dioxide (CO2) per year by 2030, approximately 10 percent of total UK annual emissions, NSTA said.

Land will be the crucial resource in the European Union’s energy transition, McKinsey & Company said in a report in May.

The amount of land required to meet the wind and solar PV capacity targets in Europe is significant. For example, in France, Germany, and Italy, where roughly 50 percent of the EU renewable energy sources (RES) installations are expected, meeting 2040 RES capacity targets would require an additional 23,000 to 35,000 square kilometers of land—an area equivalent to the size of Belgium, McKinsey’s analysts say. In addition, land will be needed to serve as a source of biogenic CO2 for bioenergy with carbon capture and storage and the production of e-fuels.

On top of that, technical, regulatory, and environmental constraints often reduce the amount of land available for RES development.

“Technical limits include existing RES installations and areas with limited natural wind or sun intensity. And regulatory and environmental limitations, which acknowledge local communities’ concerns about land use, can reduce the land available for RES development,” according to McKinsey.

A report from RenewableUK in early May urged the UK Government to work closely with the domestic green hydrogen industry to implement new policies to enable the UK to accelerate the rate at which it builds major projects as fast as possible.

“If the UK does not step up, it risks being left behind due to ambitious tax incentives and subsidies offered abroad, such as the United States Inflation Reduction Act, which may attract investment and prospective suppliers away from this country,” RenewableUK noted.

In company news, Cerulean Winds and partner Frontier Power International plan to build the North Sea Renewables Grid (NSRG), an offshore integrated green power and transmission system, powered by floating wind, that oil and gas platforms will plug into for clean power. Cerulean and Frontier Power International will develop three sites of hundreds of floating turbines, producing multiple GW of electricity, after being offered the lion’s share of seabed leases in the recent Crown Estate Scotland INTOG round.

Nova and consortium partners The University of Strathclyde, Shetland Islands Council, and Ricardo Energy have been awarded funding from the Scottish Government’s Emerging Energy Technologies Fund – Hydrogen Innovation Scheme for their Green Hydrogen and Oxygen Supply from Tidal Energy (GHOST) project. GHOST will look at the potential of producing green hydrogen and oxygen from Nova's tidal energy projects in Shetland.

TGS, a provider of energy data and intelligence, on 23 May announced the start of Norway’s first-ever LiDAR buoy measurement campaign to support offshore wind development. The first floating LiDAR buoy will be deployed in the Utsira-Nord zone and conduct wind, metocean, and environmental measurements to enhance decision-making for the three floating wind project areas to be awarded in Norway’s first floating wind lease round.

Repsol will develop renewable projects in Italy totalling 1,768 MW, the Spanish energy group said in mid-May. Repsol has a portfolio in the country that, once fully operational, will add 943 MW of wind and 825 MW of photovoltaic solar projects to the company's portfolio of renewable projects. More than 60 percent of the projects in Italy are at an advanced stage of development.

Aker Carbon Capture has been awarded a large-scale carbon capture project by Ørsted, a global leader in renewable energy, for the Ørsted Kalundborg Hub in Denmark. As the carbon capture provider, Aker Carbon Capture will deliver five Just Catch units, additional equipment such as liquefaction systems, and temporary CO2 storage and on-/offloading facilities. The carbon capture facilities will have an installed design capture capacity of 500,000 tonnes CO2 per year.

Aker Carbon Capture’s project award follows the 20-year contract award to Ørsted by the Danish Energy Agency (DEA) for its carbon capture and storage (CCS) project.

Irish wave energy developer OceanEnergy has signed up to demonstrate its OE35 floating wave energy converter at the European Marine Energy Centre (EMEC) in Orkney, Scotland. OceanEnergy intends to demonstrate the OE35 over two winter periods from 2024 at EMEC’s Billia Croo wave energy test site off the west coast of Orkney.

Germany-based specialist for water electrolysis, thyssenkrupp nucera, and Swedish industrial start-up H2 Green Steel have entered into an agreement to develop one of the world’s largest electrolysis plants. The deal secures capacity of more than 700 MW for H2 Green Steel’s electrolysis plant in Boden – making it one of the world’s largest electrolysis plants announced to date. The agreement with thyssenkrupp nucera will cover alkaline water electrolysis technology (AWE) and large-scale electrolysis plant engineering. 

Photo: akercarboncapture.com

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Energy Review

By Tsvetana Paraskova

A total of 16 upstream deals for a combined $8.6 billion were announced in the first quarter. Of those, more than $5 billion in deals took place in the Eagle Ford shale play, in “a surprising resurgence in that mature play,” Enverus noted.

The value of the M&As was down by around 20 percent compared to the first quarter average since 2016, while deal volume also continued its multi-year collapse with a disclosed volume of 80 percent less than the Q1 average. That resulted in an average deal size of more than $500 million.

largest chemical makers, UK-based INEOS, which entered US oil and gas production after agreeing to buy Eagle Ford assets from Chesapeake Energy for $1.4 billion. This agreement was the fourth-biggest in terms of value in the US upstream in the first quarter, according to Enverus’ estimates.

The US oil and gas industry continues to call on legislators to enact a permitting reform, which, the sector says, is crucial for securing a reliable and affordable energy supply in the future.

Slow US Deal-Making in Q1

The US shale patch still has opportunities for mergers and acquisitions (M&As), despite the fact that upstream deals fell in terms of both volume and value in the first quarter, Enverus Intelligence Research (EIR) said in a report in early May.

“Last quarter was an outlier in terms of the deal targets and types for upstream transactions,” said Andrew Dittmar, director at Enverus.

“Rather than public E&Ps focusing on buying undeveloped inventory in the Permian Basin from private companies, most of the deals targeted mature assets in the Eagle Ford and included more public-to-private transactions plus a corporate merger.”

The Eagle Ford has producing assets whose proximity to the US Gulf Coast has drawn buyers from outside the US in recent months. Such a deal was agreed by one of the world’s

However, if buyers look for undeveloped assets, the top shale-producing play, the Permian, is the place to go, the analysts at Enverus say. Yet, rising prices for undeveloped acreage in the Permian have been weighing on the deal-making market in recent months.

“M&A may have slowed, and shale may be in its later innings, but there are still opportunities to be had,” Enverus’ Dittmar said.

“The scramble for dwindling inventory is on, and oil prices are in a good place for M&A where both buyers and sellers feel comfortable transacting.”

But deals in the gas sector could continue to be challenged in the near future by volatile and low US benchmark natural gas prices, according to Enverus.

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.

Natural Gas Production and LNG Exports Set for Long-Term Growth

Despite the current low gas prices and the slowdown in drilling activity, US natural gas production is set to grow by 15 percent and LNG exports are expected to surge by 152 percent between 2022 and 2050, the US Energy Information Administration (EIA) forecasts in the reference case in its Annual Energy Outlook 2023.

The EIA expects natural gas production to rise to 42.1 trillion cubic feet (Tcf) by 2050, largely driven by LNG exports. Natural gas production growth on the Gulf Coast and in the Southwest reflects increased activity in the Haynesville Formation and Permian Basin, which are close to infrastructure connecting natural gas supply to growing LNG export facilities, the US administration said.

“We project continued rising global demand for natural gas, which makes it economical to build additional LNG export facilities in the United States,” the EIA said in the outlook.

First Major US Refinery Expansion since Pandemic

The US also saw earlier this year the first major refinery capacity expansion come online since the COVID-19 pandemic. ExxonMobil raised the capacity of its Beaumont refinery on the US Gulf Coast by 250,000 barrels per day (bpd), bringing total processing capacity to more than 630,000 bpd and making it one of the largest refineries in the United States.

The pandemic has led to several refinery closures, and US refinery distillation capacity decreased from 19.0 million bpd at the start of 2020 to 17.9 million bpd at the start of 2022, the EIA notes

Beaumont’s added capacity is the largest of a cluster of new capacity expected to come online in 2023 and 2024, much of it concentrated on the Gulf Coast. The region has historically been the largest refining hub in the United States and hosts 8 of the 10 largest refineries in the country, the EIA said.

US Oil and Gas Industry Delivers $1.8 Trillion in Economic Benefits

The US oil and natural gas industry supported 10.8 million jobs and contributed nearly $1.8 trillion to the US economy in 2021, a new study commissioned by the American Petroleum Institute (API) and prepared by PricewaterhouseCoopers (PwC) showed in the middle of May.

The jobs the industry supported accounted for 5.4 percent of total U.S. employment, while the oil and gas sector generated an additional 3.7 jobs elsewhere in the US economy for each direct job in the natural gas and oil industry.

The industry produced $909 billion in labour income, or 6.4 percent of the US national labour income, the study showed.

Oil and gas activities also supported nearly $1.8 trillion in US gross domestic product, accounting for 7.6 percent of the national total GDP.

Naturally, Texas is the biggest driver of economic contributions from oil and gas, generating $454.5 billion for the state’s economy.

While highlighting the benefits of the industry to the US economy, API continued to call on lawmakers to pass a durable permitting reform.

In early May, US Senators Shelley Moore Capito (R-W.Va.), Ranking Member of the Senate Environment and Public Works (EPW) Committee, and John Barrasso (R-Wyo.), Ranking Member of the Senate Energy and Natural Resources (ENR) Committee, introduced two pieces of legislation to substantively reform the permitting and environmental review processes.

API President and CEO Mike Sommers commented on the introduction of the bills, “Modernizing our permitting process will speed up approvals, create American jobs, and enable the faster movement of energy where it is needed most. Thanks to new bills from Senators Barrasso and Capito we are another step closer to bipartisan permitting reform, and we will continue to work with lawmakers to achieve durable reform for the benefit of all Americans.”

Days before that, API had joined with other members of the Natural Gas Council in sending a letter to US Senate leadership urging them to advance policies that would expedite the permitting process by creating clear timelines, clarifying the scope of agency review, and reducing the uncertainty around judicial review.

“Clear, predictable infrastructure permitting processes remain instrumental to achieving our shared energy, economic, security, and climate-related goals,” the Natural Gas Council wrote in the letter

“Unfortunately, the current processes to site and approve new and expanded infrastructure remain cumbersome, often stalling projects for years with duplicative reviews, unnecessarily burdensome approvals, and unending legal challenges. These inefficiencies hamper access to domestic natural gas resources, creating reliance on imports, raising energy costs in certain regions, and, in the worst cases, limiting access to energy during periods of extreme weather,” the letter reads.

US Oilfield Services Employment Rises To The Highest Since March 2020

Employment in the US oilfield services and equipment sector increased by 5,143 jobs to its highest level since March of 2020, preliminary data from the Bureau of Labor Statistics (BLS) and analysis by the Energy Workforce & Technology Council showed in May.

Employment in April reached 662,454, and the increase continues to bring the sector closer to the pre-pandemic numbers of 706,528 in February 2020, Energy Workforce said.

“The April job increases are significant and show the resilience of our sector through a slowing overall economy. The oilfield services sector is thriving and welcoming new talent across numerous specialties,” said Leslie Beyer, CEO, Energy Workforce & Technology Council.

“Our sector continues to exceed expectations by meeting spikes in demand while developing new technology and deploying innovative production processes that are lowering emissions.” 

“Modernizing our permitting process will speed up approvals, create American jobs, and enable the faster movement of energy where it is needed most."

API President and CEO Mike Sommers

Photo: Beaumont Refinery - ExxonMobil

MIDDLE EAST Energy Review

By Tsvetana Paraskova

OPEC expects China’s economic rebound to lead global oil demand growth this year, Saudi Aramco reported lower first-quarter profits as oil prices declined, and demand for onshore drilling rigs in the Gulf is expected to jump over the next five years—these were the highlights in the oil and gas sector in the Middle East over the past month.

OPEC Leaves Oil Demand Forecast Unchanged

OPEC, the Organization of the Petroleum Exporting Countries dominated by the biggest producers in the Middle East, left its global oil demand forecast for 2023 broadly unchanged in its monthly report for May. OPEC sees the world’s oil demand growing by 2.3 million barrels per day (bpd) this year, with the OECD projected to grow by nearly 100,000 bpd and the non-OECD expected to grow by about 2.3 million bpd.

Minor upward adjustments were made due to the better-than-expected performance in China’s economy, while other regions are expected to see slight declines, due to economic challenges that are likely to weigh on oil demand, according to OPEC.

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For 2023, the forecast for non-OPEC liquids production growth also remained unchanged from the previous month’s assessment, at 1.4 million bpd year over year. The main drivers of liquids supply growth are expected to be the US, Brazil, Norway, Canada, Kazakhstan, and Guyana, while declines are expected primarily in Russia, OPEC said.

“Uncertainties remain, primarily related to the potential of US shale oil output and unplanned field maintenance in 2023,” the organization noted.

Specifically for the US, crude oil and condensate production is forecast to grow by 700,000 bpd in 2023 compared to 2022, according to OPEC’s estimates.

The cartel, however, cautioned that there are a lot of uncertainties on the oil market, which could affect supply and demand going forward.

“Uncertainties to the forecast remain large, especially given ongoing geopolitical developments in Eastern Europe. Moreover, high inflation levels, coupled with supply chain issues and monetary tightening by major central banks may also impact the cost of oil production and upstream sector investment levels,” OPEC said.

The Chinese economy is rebounding after the re-opening, although recent macroeconomic data suggest a more nuanced picture. Still, OPEC expects China’s higher economic

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growth this year compared to the low growth pace in 2022 to support oil demand.

“Fuelled by the growth dynamic that was unleashed by reopening effects, China’s economy is forecast to considerably rebound from last year’s COVID-19-impacted low growth of only 3% y-o-y,” OPEC said in its report.

China’s oil demand growth surged by 1.4 million bpd year-over-year in March, up from the annual growth of 900,000 bpd in February. The strong rebound in economic and social activity amid feedstock requirements for the petrochemical sector supported oil product demand, OPEC noted.

For the second quarter of 2023, Chinese oil demand is set for 1 million bpd growth, thanks to rising international airline activity and improving petrol demand amid a strong rebound in mobility. Diesel consumption is also expected to recover due to infrastructure expansion and fiscal stimulus.

Third-quarter demand is also expected to rise, by 800,000 bpd year over year, due to jet fuel demand growth, an increase in light distillates demand, and continued expansion of the petrochemical industries. Increased mobility and rising construction activity will boost demand for petrol and diesel, OPEC said.

Gulf Onshore Drilling Rig Demand Set for 25% Growth by 2027

The Middle East GCC region is expected to see 25-percent demand growth for land rigs in the over the 2023-2027 period, as Saudi Arabia and the United Arab Emirates (UAE) pump billions of US dollars into reaching their higher production capacity targets, Westwood Global Energy Group said in a new report, MENA Onshore Drilling Rig Market Forecast.

The Middle East and North Africa (MENA) region currently hosts a fleet of 1,159 identified land drilling rigs. The Gulf Cooperation Council (GCC) leads supply with 526 units, or 45 percent of the MENA fleet. North Africa and Other Middle East contain 27 percent and 28 percent, respectively. The largest fleets are hosted by Saudi Arabia, Algeria, and Kuwait, while Iraq and Iran also host fleets of over 100 units, Westwood says.

Analysts at Westwood expect that the GCC will continue to grow strongly throughout the five-year forecast. Demand in 2027 is expected to be 53 percent higher than 2019, driven by production capacity increases at all major onshore producers, with many of the projects required already having passed final investment decision (FID), said Todd Jensen, Senior Analyst – Onshore Energy Services, at Westwood.

Saudi Aramco Profit Slides on Lower Oil Prices

Saudi Aramco, the biggest oil company in the world in terms of both production and market capitalisation, reported in May a decline in its first-quarter net income, due to lower crude oil prices. Aramco’s net income stood at $31.9 billion, down from $39.5 billion for the same period of 2022, but still above the analyst consensus of $30.9 billion in profits. Cash flow from operating activities rose to $39.6 billion from $38.2 billion, while free cash flow inched up to $30.9 billion, from $30.6 billion for the first quarter of 2022.

In the first quarter of 2023, Saudi Aramco’s average realized crude oil price fell to $81.0 per barrel, from $97.70 for the same period last year.

“We are also moving forward with our capacity expansion, and our long-term outlook remains unchanged as we believe oil and gas will remain critical components of the global energy mix for the foreseeable future,” President and CEO Amin Nasser commented, reiterating Aramco’s view that oil and gas will be in demand for decades to come.

Apart from the regular dividend of $19.5 billion for the first quarter, the world’s largest oil firm announced its intention to introduce a mechanism for performance-linked dividends in addition to the base dividend it currently distributes.

“The Company intends to target such performance-linked dividends to be in the amount of 50-70% of the Group’s annual free cash flow, net of the base dividend and other amounts including external investments, to be determined with the annual results,” Aramco said.

Projects & Other News

Aramco also announced in May new leadership positions and appointments. The company has appointed Nasir K. Al-Naimi as President of its Upstream business, and Mohammed Y. Al Qahtani as President of the Downstream business, both reporting along with Aramco’s Executive Vice Presidents to the Company’s President & CEO. The newly created positions and appointments, approved by the Board of Directors, will be effective from July 1, 2023 and will replace the previous Upstream and Downstream Executive Vice President positions, respectively. These appointments will help drive Aramco’s long-term strategy across its global portfolio and value chain, the oil firm said.

“We expect this decision to help drive operational and financial performance, supporting our upstream capacity growth and our downstream expansion, together with our ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across wholly-owned operated assets by 2050,” President and CEO Amin Nasser commented.

In the UAE, ADNOC announced in early May that its low-carbon LNG growth project would move forward in the Al Ruwais Industrial City, Al Dhafrah, Abu Dhabi. The project will help ADNOC to more than double its LNG production capacity to meet increased global demand for natural gas. The plant, which is designed with electric-powered processing facilities, will run on renewable and nuclear grid power, making it one of the lowest carbon-intensity LNG facilities in the world.

As an operational hub for ADNOC and its operating companies, the selected location offers significant synergies and existing infrastructure that will be leveraged to deliver project efficiencies, unlocking additional value for ADNOC, its partners and the UAE, the Abu Dhabi company said.

The proximity of Al Ruwais to ADNOC’s current operations, as well as its future growth projects, in addition to a well-established local supplier base, were important considerations in the company’s decision.

QatarEnergy awarded in the middle of May the engineering, procurement, and construction (EPC) contract for the North Field South (NFS) project, which comprises two LNG mega trains with a combined capacity of 16 million tons per annum (MTPA). The announcement was made during a ceremony held to mark the award of the EPC contract for the two LNG trains and associated facilities with a joint venture of Technip Energies and Consolidated Contractors Company (CCC).

NFS, together with the North Field East (NFE) project, will increase Qatar’s LNG production capacity from the current 77 MTPA to 126 MTPA.

QatarEnergy holds a 75-percent interest in the NFS project and has already signed partnership agreements with TotalEnergies, Shell, and ConocoPhillips for the remaining 25 percent. 

"We are also moving forward with our capacity expansion, and our long-term outlook remains unchanged as we believe oil and gas will remain critical components of the global energy mix for the foreseeable future"

President and CEO Amin Nasser commented

“Demand in 2027 is expected to be 53 percent higher than 2019, driven by production capacity increases at all major onshore producers, with many of the projects required already having passed final investment decision (FID)"

Todd Jensen, Senior Analyst –Onshore Energy Services, at Westwood.

ENERGY PROJECTS MAP

CHINA

Weizhou 10-3W Oil Field

Roc Oil Company Ltd

$100 million

Roc Oil is advancing its plan to develop the Weizhou 10-3W oil field. It is stated that the development will include a new wellhead platform and a central processing platform, along with a subsea pipeline and cable. The project is formally in the Basic Design Phase to detail facilities, drilling and completion, subsurface program, and EIA report. The FID is planned for 2023.

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Equinor

Equinor has reached a final investment decision on the project. The $9 billion investment will feature a new FPSO, with commercial production expected in 2028. Modec has confirmed a contract award for the BM-C-33 FPSO following an FID by Equinor. The two-phase turnkey contract includes both FEED and EPC work. TechnipFMC has been awarded the EPCI contract for the project's SURF scope.

GUYANA

Uaru Oil Field

$12.7 billion

ExxonMobil ExxonMobil, following government approval, reached a final investment decision on the project. The project is targeting the production of 800 million barrels of oil. Offshore Frontier Solutions, a Modec-Toyo joint-venture, will be responsible for the EPCI of the Errea Wittu FPSO. Saipem has confirmed a contract award for the design, fabrication and installation of subsea umbilicals, risers and flowlines associated for the development. TechnipFMC has been awarded a contract for the provision of project management, engineering, and manufacturing services to deliver the overall subsea production system.

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.

ANGOLA

Cameia-Golfinho Field Development Project

$5 billion

TotalEnergies

ANPG, TotalEnergies and Sonangol have inked a head of agreement (HOA) on the future development of the Cameia and Golfinho fields. The HOA marks an important milestone towards FID scheduled for 2023 after receiving the partner's and authorities' approvals.

The EIC is the leading Trade Association providing dedicated services to help members understand, identify and pursue business opportunities globally.

It is renowned for excellence in the provision of services that unlock opportunities for its members, helping the supply chain to win business across the globe.

The EIC provides one of the most comprehensive sources of energy projects and business intelligence in the energy sector today.

BRAZIL

Block BM-C-33Pão de Açucar Gas Field $9 billion

5 USA

BRAZIL Bijupirá-Salema Field Decommissioning Project

$50 million

Shell

Modern American Recycling Services Europe (MARS) has received a limited notice to proceed (LNTP) for the dismantling and recycling of the Fluminense FPSO. A formal contract award will take place in 2023. The FPSO is expected to arrive at the MARS Europe yard in Denmark in 2024.

USA

Kaskida Offshore Oil Field

$15 billion

BP

BP has decided to move forward to the concept selection process for the Kaskida project following positive results at the Mad Dog Phase 2 project. BP's plan is to issue a FID in 2024. Development costs are estimated at US$15-20 per barrel.

Sparta Offshore Oil Field

$5.5 billion

Shell

Worley has been awarded another FEED contract to provide engineering and design services for the project. Under the agreement, Worley will provide engineering, design, procurement support, construction and commissioning support for the FEED work and detailed design on various phases of the project. The FID of the project has been postponed to Q4 of 2023.

PAPUA NEW GUINEA Elk-Antelope Gas Field

$1.5 billion TotalEnergies

A consortium consisting of PT Tripatra Engineers, Saipem and Daewoo Engineering & Construction has been awarded a FEED contract for the PNG LNG's upstream facilities. The contract covers phase 2 of FEED from the central processing facility (CPF) and well pad construction for ElkAntelope, which will supply natural gas for PNG LNG.

8

EGYPT Raven Infill Drilling Project

$100 million BP

Subsea7 has been awarded a contract for the two-well tie-back at Raven. The scope of the contract encompasses engineering, procurement, transportation, and installation of approximately six kilometres of flexible pipes, umbilicals, and related subsea structures in water depths of approximately 800 metres. Project management and engineering will be overseen from Subsea7 offices located in France, the UK, and Portugal.

AUSTRALIA

Rafael Gas Discovery

$500 million

Buru Energy

Buru Energy is looking to proceed with FEED phase for the project following delineation drilling in 2024.

It is mentioned that the pre-feasibility study has been completed and found that 1.6mtpa FLNG facility is technically, commercially and economically feasible option to commercialise the Rafael gas development project. However, the operator is still keeping the development options open via in-house and third party studies.

QATAR

North Field Production Sustainability (NFPS) Compression ProjectPhase 1 & 2

$5 billion

Qatargas Ranhill Worley has stated that it has been awarded the contract by Saipem to provide detailed engineering design for the two compression complexes. The value of the contract is $50 million. The work is expected to be completed by Q3 2024.

12

MEXICO

Block 30 – Kan Oil Discovery

$250 million

Wintershall DEA

Wintershall Dea has announced an oil discovery at Block 30 following the drilling of the Kan-1EXP exploration well. Drilled by the Borr Ran jack-up rig, well was drilled to a total depth of 3,317m and identified more than 170 metres of net pay of good quality oil in the Upper Miocene formation. An updip sidetrack was carried out to a depth of 3,087m, identifying about 250m of net pay across the main reservoir sands. Wintershall Dea and partners plan to present an appraisal plan to Mexican authorities by the end of July 2023.

OFFSHORE WIND SET FOR LONGTERM GROWTH DESPITE NEAR-TERM HEADWINDS

By Tsvetana Paraskova

The offshore wind industry is poised for exponential growth over the next decade amid expected technology and supply-chain development and policy support that will make offshore wind more accessible in more regions around the world.

Despite current setbacks in installations in wind energy – including onshore and offshore – due to supply chain issues and cost inflation, the wind power sector will be a key driver of global renewable capacity additions, with increased focus on offshore wind, analysts say.

Wind Energy Market To Top 1 TW by Year-End

Global wind energy installations are set to exceed one terawatt (TW) by the end of 2023, Wood Mackenzie said in its latest outlook on the industry in April.

Growth will accelerate significantly this decade. It took wind energy 40 years to reach the first TW, but the next TW of installations will need only eight years, Wood Mackenzie Research Director Luke Lewandowski said.

“The next decade will also see an intensified focus on offshore wind as the sector matures and technology innovation and supply chain development help make offshore development more accessible in different regions,” WoodMac noted.

“The global offshore wind sector will experience sevenfold growth by 2032 and account for a 26% share of total capacity over the ten-year outlook.”

Over the next decade, offshore wind capacity will be added in 30 countries, with Europe and China leading global offshore capacity additions with an 81-percent share, according to WoodMac.

Despite near-term setbacks due to supply chain issues, the long-term outlook for offshore wind installations is bright, the energy consultancy says.

Europe, where countries have boosted capacity targets in the wake of the energy crisis, is expected to add more than 343 GW of offshore and onshore wind capacity over the next ten years. Offshore wind is expected to account for 39 percent of new capacity, although onshore growth in emerging markets in Eastern Europe and Uzbekistan, and the repowering of ageing fleets in more mature markets, including Germany and Spain, will also contribute, WoodMac said.

Short-Term Headwinds

Despite the current headwinds with supply chain and cost inflation, the wind power industry should be optimistic about the longer-term prospects, the consultancy said in a separate analysis this year.

“Despite the recent inflationary pressure, onshore wind remains one of the cheapest energy sources globally, while offshore wind leads the cost reduction race by 2050, due to capex and opex improvements and economies of scale,” Wood Mackenzie noted.

Global commissioning of wind turbines declined by 15 percent to 86 GW in 2022, as supply chain constraints and uncertainty around subsidies hit project development, BloombergNEF said in its Global Wind Turbine Market Shares report earlier this year.

Commissioning of new offshore turbines fell to 9.1 GW, which was down by 46 percent compared with 2021. The drop was partly offset by strong activity in the UK which commissioned more than 3 GW of offshore wind for the first time, BloombergNEF said.

“We expect the drop in offshore wind to be short-lived,” said Oliver Metcalfe, head of wind research at BloombergNEF.

“Germany and the Netherlands will install major projects again in 2023, while the industry will also ramp up in newer markets like France and Taiwan.”

Last year, Europe invested 17 billion euros in the construction of new wind farms, the lowest investment level since 2009, industry association WindEurope said in its Annual Financing and Investment Trends report at the end of March. The investment financed wind farms with a total capacity of 12 GW in all of Europe, including 10 GW in the EU. These wind farms will be built over the next few years and must not be confused with

annual installations. In 2022 the EU installed 16 GW and WindEurope estimates that the EU will build on average 20 GW of new wind farms over the next five years, the association says.

Yet, Europe needs to add more capacity each year to reach the targets, WindEurope said.

In 2022, there were no Final Investment Decisions (FIDs) for large-scale offshore wind farms. France was the only country to finance two small floating offshore wind projects with a total capacity of 60 MW, the report found. At least three commercial-scale offshore wind farms were projected to reach FID in 2022 but delayed the decision, and WindEurope now expects them to reach FID this year.

Permitting delays and emergency measures in some EU electricity markets deterred investors last year, according to the association. In addition, the rising interest rates impacted the economics of wind energy projects in 2022.

“Especially big and CAPEX-heavy offshore wind projects are sensitive to interest rate changes and financing risks,” WindEurope noted.

Industry Calls for Acceleration of Offshore Wind Installations

At the WindEurope Annual Event 2023, the industry called for acceleration of the permitting process, support and expansion of the supply chain, acceleration of grid build-out, and optimisation of the use of the electricity grid.

Sven Utermöhlen, CEO Offshore Wind at RWE, said, “It’s time to ramp up the European offshore wind supply chain on a large scale. What we need is a targeted action plan and cost-reflective offshore wind auction designs. Only with the right investment framework can offshore wind create valuable jobs in the future and deliver long-term low-price electricity.”

Rasmus Errboe, Executive Vice President and CEO Europe at Ørsted, commented, “It’s time for a new societal contract in offshore wind and renewable energy.”

“The complexity we face should not stop us from taking the next step forward. Together, let’s open the path to progress,” Errboe added.

The supply chain needs to rapidly expand for Europe to meet its wind energy capacity targets by 2030, Rystad Energy said in a recent report produced in cooperation with WindEurope.

“While the energy crisis and postCovid-19 recovery spurred renewable energy commissioning, materials and components price inflation has put the wind energy supply chain under severe financial pressure,” according to the report published in April.

The estimated supply-demand balance shows that for wind energy capacity targets to be met by 2030, there would be a need to rapidly expand capacities across the supply chain unique to wind, including turbines, towers, foundations, and wind turbine installation vessels (WTIVs), among others, the authors of the report wrote.

UK Offshore Wind Generation Sets Record

Offshore wind farms in UK waters generated enough power to meet the electricity needs of 41 percent, or 11.5 million, of the nation’s homes in a new record year in 2022, the latest Offshore Wind Report from The Crown Estate showed at the end of April.

Offshore wind generated 45 TWh of electricity last year, up from 37 TWh in 2021 and a six-fold increase over the past 10 years. Offshore wind is estimated to generate enough electricity to meet the needs of nearly half (47 percent) of UK homes by the end of this year.

The new record in 2022 was achieved despite wind speeds coming in lower than the longterm average. In 2022, Hornsea 2, the world’s largest offshore wind farm with capacity to power 1.1 million homes, became fully operational, as did Moray East off the North East coast of Scotland.

There are now 50 wind farms in UK waters which are either operating or under construction, with another seven that have secured a Contract for Difference (CfD),

The Crown Estate said. The average size of an operating wind farm stands at 0.3 GW, while the average size of a wind farm under construction is 1.1 GW, according to the report.

Last year, UK offshore wind capacity accounted for 24 percent of global capacity, second only to China, with continued progress to push hard to meet the Government’s target of 50 GW of offshore wind capacity by 2030.

“With more demands than ever on the nation’s invaluable seabed, we must work across sectors to carefully plan how to unlock its full potential whilst supporting a thriving natural world for the benefit of the nation,” said Gus Jaspert, Managing Director for Marine, The Crown Estate.

US Offshore Wind Market Grows Rapidly

In the US, the offshore wind market is rapidly growing, with projects across 32 leases totalling 51,377 MW of expected capacity, which would be enough electricity to power the equivalent of more than 20 million US homes, the American Clean Power Association (ACP) said in a report in early May.

Currently, just 42 MW of offshore wind capacity is online in the US.

The East Coast dominates the projects, with 84 percent of the project pipeline, accounting for 43,115 MW.

The US domestic supply chain for offshore wind is also expected to see significant growth, with 14 facilities announced or under construction. Investment announcements for major offshore wind components have exceeded $1.7 billion, and with three state solicitations pending, more supply chain investments are anticipated, bolstering the sector’s expansion, ACP said.

Still, project costs are rising, due to disruptions in the current supply chains, increases in commodity prices, inflation, and higher interest rates, the association noted. These near-term challenges add to the currently lengthy and unclear permitting and regulatory timelines.

“A strong, collaborative approach between industry stakeholders and government bodies will help us tackle obstacles – like clarifying permitting processes – and realize the full potential of offshore wind as a key component of our clean energy future,” said John Hensley, ACP’s VP of Research & Analytics. 

Offshore wind is estimated to generate enough electricity to meet the needs of nearly half (47 percent) of UK homes by the end of this year.

For the borehole inspection work scope, we used our in-house design and assembly expertise to develop a bespoke inspection tool that could be deployed from a vessel to inspect, survey, and verify successful completion of the drilled sockets. In addition, utilising existing in-house tooling, we engineered solutions for dredging the socket base, jet cleaning the upper socket casing, and removing any debris remaining inside the casing anulus prior to grouting operations commencing. The grout monitoring scope involved the development of a bespoke autonomous monitoring system with sacrificial grout sensor arrays to enable real time monitoring of the grouting process taking place below seabed level. The system provides remote positive verification of grout level to the correct elevation to ensure foundation integrity is met.

More recently, Ashtead Technology was approached to provide an engineered solution for a specific challenge our customer had on installed wind turbine generator jacket foundations. Using our extensive in-house expertise and rapid response capability, we designed, manufactured, and successfully tested a custom tooling solution for honing the internal bore of the j-tube within four weeks of order confirmation. For this project, we provided a fully integrated service supply including the design, manufacture, test, mobilisation, and provision of offshore operation personnel helping to reduce overall project cost and time.

Proven and innovative marine technology solutions for the offshore renewable energy industry

With 38 years’ experience in the energy services sector, Ashtead Technology has a long-established reputation as the go-to partner for underwater operations.

Using our technology and know-how, needed to solve underwater survey, mechanical and asset integrity challenges, Ashtead Technology supports offshore renewables projects from consent & planning and project development, through to construction & installation, operations & maintenance, and repower & decommissioning work scopes.

Our growing track record in the renewables sector is attributed to our technical capability and the breadth of our equipment fleet combined with our agile, highly responsive, and cost-effective approach to successfully delivering our customers’ marine energy campaigns. Specifically for the construction and installation phase, Ashtead Technology has supported offshore wind providers and tier one service contractors with various custom engineering solutions for their unique operational challenges. In 2021, Ashtead Technology was contracted by Saipem to support the foundations installation phase of the Neart na Gaoithe offshore wind farm, in the Firth of Forth. We were initially awarded a contract for drilled borehole inspection and based on the successful delivery of the initial stages of this campaign was subsequently awarded additional scopes to support borehole internal casing cleaning, grouted pile installation and subsequent grout level monitoring.

Our latest award is for the design, development, and mobilisation of a socket inspection technology solution for the construction phase of the Courseulles-sur-Mer offshore wind farm, which is under development near Calvados, Normandy, France. The 45km² wind farm is expected to be commissioned in 2024.

Commenting on our recent awards and growing track record in the offshore wind space, Ross MacLeod, Ashtead Technology’s Integrated Projects Director, said: “Offshore renewable energy is an increasingly important part of our business now and in the future, and we continue to support our customers to meet the growing demand for cleaner, safer and more efficient energy production using our wealth of knowledge, skills and technical expertise.” 

www.ashtead-technology.com

Air lift dredge tool in action

Ashtead Technology are the underwater techonology experts for the global offshore energy industry. To find out more please visit

Ashtead Technology's borehole inspection tool

Delivering on the promise & potential of floating offshore wind (FLOW)

Author: Will Rowley, Group CEO, Offshore Solutions Group. Will.rowley@offshoresolutionsgroup.com

With the 15.5GW Scotwind, recent 5.5GW INTOG round and the upcoming 4GW Celtic Sea leasing round combining with a few pilot, and test & demonstrate projects, there is now a 25GW pipeline of potential floating offshore wind (FLOW) projects across the UK. In physical terms this equates to around 1,500 floating units, each likely to be around 8,500Te each and typical dimensions of H105m x W85m. If you can visualize a floating Eiffel Tower and two VLCC tankers side-by-side, then you can appreciate the scale of a single FLOW unit.

Scale matters as bigger units with bigger turbines equals more power output. On the flip side, delivering #60 or #70 FLOW units for a single 1GW project, and doing this within a 2yr installation window, has some real practical issues. For context, the largest UK FLOW project to date has been #5 smaller units and in overall scale, 1,500 units is about the same tonnage as the entire UK shipping fleet operating today.

Whilst the practical challenges in growth and scale are legion, the following two examples illustrate solutions that are enabling delivery on the promise and potential of floating offshore wind.

Temporary offshore ‘wet’ storage

Bringing together all the supporting vessels, supply components and activities to install a 1GW FLOW project in two seasons is a major undertaking. Key to this schedule is having your floating units built and marshalled, ready to integrate with their towers, turbines, and blades and then ready to be installed. But with most ports and facilities only able to handle 2-3 units at a time (remember the physical dimensions), where do you ‘park’ or store your other units? What do you do is you have supply or delivery delays, or the weather conditions slow you down?

Without answering these simple questions, you cannot deliver a robust integration and installation plan. Offshore Solutions Group identified this issue in late 2021 and, partnering with HR Wallingford, set out in 2022 to answer these questions through the Temporary Storage Floating Wind Joint Industry Project (TS-FLOW© JIP). The TS-FLOW© JIP is now the world’s largest programme focused on temporary wet storage with a phased scope of work covering site identification, investigation, and operational delivery. Current coverage extends across the entire UK (split between Celtic Sea and UK North) with extensions in coverage to Ireland, France (Atlantic), Baltic and Australia under planning.

The oceans and seas are big, finding offshore parking shouldn’t be a problem? Turns out that finding suitable sites is more challenging when you must take account of the following:

• Close to port(s).

• Protected from the worst of the prevailing weather.

• Not too deep or too shallow.

• Not in protected marine areas or other environmentally sensitive areas

• Away from cables, wrecks, and other seabed obstructions.

• Accommodating other uses of the seas (fishing, commercial, leisure etc.)

• Accessible to tugs and supporting vessels.

• Feasible for permitting/licensing.

For the Celtic Sea area, an initial target list of >60 sites yielded only #6 technically & environmentally suitable potential sites and once further investigation is done this may reduce further. Whilst Scotland has sea lochs, larger harbours, and potential anchorages it also has both a greater volume of FLOW projects, many being developed in parallel, and considerable environmental and associated constraints.

Visual scale representation of a FLOW unit.

The TS-FLOW© JIP, supported by multiple Developers, The Crown Estate and Crown Estate Scotland is providing practical answers to a complex challenge and enabling the promise and potential of floating wind to be realized.

UK FLOW Forward©, building industrial-scale, serial production capability.

The industrial scale serial production of floating units has not been attempted since the liberty ships programme of 1942 and as such the facilities to undertake this activity do not exist today. Conventional shipyards for low volume production and ex-oil & gas fabrication yards do exist and some efforts to repurpose these are underway, but most are either physically constrained or devoid of a supporting infrastructure and resources to deliver volume. This is a global issue and not UK specific.

In response to this challenge OSG leads an industrial consortium, UK FLOW Forward©, who are developing Europe’s largest new serial production facility with the capacity to deliver ~2GW/yr of floating unit modules and complex jacket components. UK FLOW Forward© has combined the unique expertise and experiences of OSG with leading UK fabricator Wilton Group and the global leader in welding services, CRC-Evans Group and is also supported by SeAH Wind.

This major initiative also incorporates the latest process engineering and unique technology solutions around autonomous welding and large component alignment, all to deliver efficient and cost-effective serial production. With over 3 million m2 of new facilities (largest is 450mx100mx50m!) and able to handle modules up to 2,000Te and lengths of ~80m this is an industrial scale project akin to new aircraft manufacturing in its complexity and ambition.

By locating these facilities within the industrial heartlands of the North-East of England the initiative draws on local and available resources and an existing supply chain. A key facet of the UK FLOW Forward© approach is final assembly of the produced modules is completed in Scotland or Wales within a fully integrated multi-site process. Undertaking final assembly close to deployment locations provides logistical advantages with these giant structures whilst also enabling many more existing ports & facilities to be involved.

Splitting final assembly from full module fabrication reduces space, resource and support requirements in final assembly ports and gives greater flexibility and opportunities to manage delivery. This more flexible approach still delivers local jobs and local supply chain opportunities.

Summary

The mergence of floating wind as a new energy source and industrial sector has created excitement and with 25GW of projects, Developers have clearly embraced the potential and acquired the licences. Delivering on this promise requires more than a willing supply chain, needing new thinking to solve practical challenges and innovative approaches to industrial-scale supply.

The TS-FLOW© JIP and the UK FLOW Forward© initiative are two practical examples of how the UK supply chain is rising to this challenge. Using a collaboration of expertise and the application of unique experience, OSG and its various partners are leading the sector in providing practical and deliverable solutions, backed by engineering and technology. 

OSG Profile: Offshore Solutions Group (“OSG”) is a floating wind specialist consultancy focused on identifying and then solving some of the major blockers to the delivery of industrial scale (1GW+) floating wind units and their respective mooring & anchoring systems. With a presence across the UK, Europe and in the US, the OSG team comprises industry veterans with extensive operational delivery experience of >100 floating units of all types, globally.

Advanced processes & technology © CRC-Evans Group 2023

Literally’, preparing the ground for new industrial capacity & capability. © Offshore Solutions Group 2023

The power of partnership

Communication lies at the heart of Proserv’s M.O. The controls technology leader has leveraged the voice of the customer to build its position in the global market, while only recently its CEO Davis Larssen was writing in the press about the central role collaboration and dialogue, between developers and the supply chain, must play in the future success of big ticket offshore wind projects like ScotWind and Round 4.

So it seems appropriate for OGV to catch up with the team’s VP, Renewables, Paul Cook the day after a highly relevant industry workshop took place in London that Proserv had sponsored and the Global Underwater Hub had hosted. The event focused on exploring the challenges for the offshore wind sector from subsea cable faults and failures and engaged key stakeholders to discuss new approaches to insuring, and to de-risk owning and operating, this critical infrastructure, with enhanced performance monitoring and improved insights into its condition and integrity at the heart of the conversation. Cook gives the background:

“Cable and termination failures amount to one of the biggest hurdles to the successful future growth of offshore wind. So much investment has been earmarked, so much generating capacity has been predicted, both in the UK and the wider world, to accelerate the transition as swiftly as possible, but the reliability of cable performance represents an undoubted Achilles heel – thousands of miles will be installed and there needs to be a step change in how cables and terminations are monitored in real-time.

“Our subsea cable insurance workshop was a fantastic success. More than 120 stakeholders with broad backgrounds, from OEMs and developers to insurers and brokers, came together to talk openly about their views on how, as an industry, we must reduce failures and alleviate risks.”

Evolution of ECG™

Leading such a collaborative event makes complete sense for Proserv. Its ECG™ subsea cable monitoring system, a vital weapon in the fight to alleviate these expensive and time-consuming failures, evolved from a consortium pooling its respective know-how and domain knowledge:

“Collaboration is absolutely intrinsic to Proserv’s wider philosophy. ECG™ provides a great example with Synaptec, BPP Cable Solutions and ORE Catapult playing essential roles from early support through to deploying cutting-edge expertise and disruptive technologies. Such input has combined with Proserv’s own control system integration capabilities and our global footprint in the energy sector to present a route to commercialisation for this innovation.”

Following its landmark win on the Dogger Bank Wind Farm, where it will monitor the condition and integrity of the inter-array cables and terminations on phases A and B of the project, ECG™ will shortly be installed on Equinor’s Hywind Scotland, the world’s first floating wind asset, and this not only offers exciting intelligence insights in the coming months, but future opportunities too:

“Very little scrutiny or monitoring has been undertaken with regard to dynamic cables on floating wind farms and this will really help prove the methodology and potential of ECG™ right across the offshore wind space, and not simply from evaluating fixed bottom cables and terminations.

“Floating wind has a pivotal part to play in propelling the industry in the next decade. You only need to look at the opportunities ahead on ScotWind where the vast majority of plans will utilise floating foundations. But while that opens up deeper, more remote waters for new offshore wind farms, the requirement for critical infrastructure to perform reliably and to be monitored live only increases.”

Proserv’s Vice President, Renewables, Paul Cook reveals to OGV Energy’s Dan Hyland how “it’s good to talk” as the team’s collaborative instincts underpin its push into offshore wind innovation.

Paul Cook, VP, Renewables, Proserv

Equinor's Hywind Scotland floating wind farm (image: ©Equinor)

Cook adds that cable failures can typically cost millions, and take months, to repair so unplanned downtime out in the harsh, distant environments of the North Sea would be a huge problem. Proserv’s VP points out the rapid progress achieved by ECG™ which was essentially still in development two years ago:

“The technology is still new and its rollout continues. But there is a fundamental need for what ECG™ offers. That’s precisely why the likes of Equinor and ScottishPower Renewables have provided their industrial sponsorship. For example, from our conversations with the market, it is interesting to learn how the significance and impact of ECG™ delivering termination monitoring have taken hold, as actual termination failures have occurred and their consequences have to be faced.”

Digital drive

ECG™ constitutes an important step on Proserv’s on-going pivot into renewable energy but Cook is keen to underline that the team is “seeking to generate further disruptive offerings to address the challenges faced by offshore wind developers.”

So, as Proserv drives further into offshore wind, powered by digital innovation, the business has instinctively established ever closer partnerships. It was announced last year that Davis Larssen had joined the Boards of both Synaptec and Intelligent Plant, another key ally in its digital push, while in the past year an alliance has been formed with innovative start-up Ortomation.io, a specialist in real-time optimisation (RTO).

Cook reveals that Proserv’s ambitious plans reflect the template employed when ECG™ was in early R&D and the team was identifying shortcomings in the industry, its future pinch points, and working to establish partnerships to spark the innovative process:

“In the past year, we have devised a broader technology roadmap and strategy. This now reaches into turbine monitoring, turbine control as well as turbine and field optimisation. We are looking to instigate a truly unique and disruptive methodology, centred around RTO, to reflect the current and future needs of the sector and representing a marked shift from established processes.

“We are focused on accelerating the development of holistic, asset-wide control systems to deliver real-time insights to empower decision-making, extend life and significantly grow return on investment. Elements like RTO and future life extension have not been explored or considered sufficiently within offshore wind.”

Communicate and engage

Cook recognises that disruptive innovation also has its challenges – such as support and buy-in from stakeholders and potential customers. He explains that communication and engagement were crucial to the generation of ECG™ and this is the approach with its drive into RTO and life extension.

“Our philosophy is to position ourselves ahead of the curve and pinpoint opportunities early –most importantly that will benefit the market, but it also benefits Proserv, and our collaborators, if we can work together to innovate the solutions to offshore wind’s current and future issues. As we advance our business into new areas of offshore wind and digital technology, we are also expanding our broader Proserv team to build skill sets and our knowledge base.”

Cook has bolstered Proserv’s presence in the US offshore wind market to leverage openings for ECG™, and subsequent future solutions, with the appointment of Jeff Williamson as Business Development Director. This is a rapidly growing segment where more than 80GW of power generation is presently targeted across ten States.

In January, Callum Maxwell, another key component of Cook’s business development group, was appointed as a co-chair of the O&M Subgroup within the DeepWind Cluster, an initiative established by Offshore Wind Scotland. The DeepWind supply chain cluster consists of 800 members drawn from industry, academia and the public sector, and is the largest offshore wind representative body in Europe.

Earlier this year, Larssen and VP, Digital Innovation Stuart Harvey told this publication about how Proserv’s evolving RTO technology alongside Ortomation.io could optimise the performance of wind turbines. The self-learning application, using live data, autonomously calculates the optimum turbine set points to achieve maximum power yield across a whole asset, while minimising structural stress and fatigue. The solution can not only improve base line performance but can also be used dynamically to support an operator’s strategic objectives in real-time. Providing

“Engagement with stakeholders is how effective innovation takes shape. We were part of the Offshore Wind Growth Partnership’s WEST business transformation programme earlier this year. This is another valuable initiative, based around collaboration and facilitating growth opportunities between developers and the supply chain.

“The UK has exciting opportunities ahead of it, particularly within floating wind. The technologies to accelerate that rollout will only evolve through partnership and open dialogue. This is second nature to Proserv and we are well positioned to play a central part.” 

Floating turbine graphic (image: ©Proserv)

How changing your playlist can help transform your business

By Megan Hine, UK Business Development Manager Clean Energy, Dräger Marine and Offshore

Spotify isn’t the first thing that would spring to mind when you ask someone to create a business model for a marine and offshore organisation.

However, when you mention that by studying companies like Spotify you can help save time and money, you’ve grabbed people’s attention with the same impact you’d get by turning a classic track up to 11. It will be music to their ears. But what does music have to do with the marine and offshore industry? The answer is simple – it’s all in the way products are acquired.

As a society, we are far more likely to rent or hire items than we once were. Your car, for example. Data shows that lease enquiries as a proportion of all new car leads grew in the UK by 325% between 2018 and 2021. While a vehicle is a significant outlay, the idea of not having to own something trickles down to small luxuries such as how we consume our TV shows and films (through the likes of Netflix and Amazon Prime) as well as the multitude of ways to listen to our music via Spotify and Apple Music, for example. As well as saving money, that way of living is often more convenient with instant access to a wide library you don’t need to pay upfront for. So why should it be different in the marine and offshore industry?

Nowadays, we think more and more about efficiency. And when it comes to the pace of the energy transition, cost is going to be king, with speed following swiftly behind. And when we think of wanting things that are faster, more affordable and retain the quality we expect, we often see that if cost and speed are key, quality falls out the window quicker than a rockstar throwing a TV set from the 16th floor. However, that doesn’t have to be the case.

Megan Hine

The solution to how that could be avoided comes through thinking differently – like Spotify, Netflix and other streaming companies. By reducing overheads, such as by not holding on to inventory and renting instead, the speed element of getting equipment is covered as it’s on a rental fleet, which therefore means lead times for the manufacturing and delivery of goods is not an issue. Through a rental model, the kit is there when you need it, but when you don't need it, it's not cluttering up your warehouse, or indeed your balance sheet. Furthermore, there is no need to compromise on quality. You rent what you need for the requirements you have, with expert advice and support.

Cynicism is something that will always be present when a new way of doing things comes along, and it took a long time for Spotify and Netflix – and the streaming of music and movies in general – to shake it off, despite being well priced. That is evidenced by Spotify, which was founded in 2006, holding just 7% of the US music streaming market in 2010, but an astonishing 83% by the end of 2020

There is always a tipping point whereby those early adopters help get the word out before the people that follow the fearless ones come along and change the tide. You become the odd one out if you are not watching the latest Netflix show, or still listening to the music you spent a fortune downloading or physically purchasing. I believe the same will be true, in time, if you're not renting your safety equipment and are still buying and maintaining your own kit.

The industry is already showing signs of that happening, with Dräger Marine & Offshore reporting an increase of more than 20% in the rental of equipment following the opening of a new sales and training centre in Aberdeen last summer, a performance which exceeded expectations.

Our company also reported a rise in rentals across different business units throughout the organisation, which is another indication of the way business in general is going. In the energy sector, the transition is an opportunity to look at the way we do things and to do it more efficiently.

For example, I remember not signing up to Spotify for the longest time because I had an iPhone and I had paid 99p for the songs on there. When I look back now, I realise I had about £700 of songs on there.

I’ve paid to use Spotify for around three years now and am approaching the £400 mark in terms of spend. I’m still spending money, but I have discovered other genres and artists through the features it has, so my engagement with the company has changed. The same can happen in industry.

If you do something slightly differently, you may discover you are opening yourself up to wider benefits. We have seen that the market for renting items in other walks of life works, so why should we continue to do what we have always done?

At Dräger we want to do what’s right, and what is for the greater good. The hire of offshore equipment is not massively widespread, but it is a market that will grow. We're probably at that first follower stage. The same point Spotify pioneers were at in the late 2000s.

One of the big growth areas for us has been the use of our Rental Robot, which is essentially a vending machine, but for safety equipment. Similar to a jukebox, if we are to stay on a musical note.

It’s an automated release and return station for safety equipment from which users can get reliable, 24-hour access to the safety technology, tools and consumables they need. The robot can be rented out in different modules with varying compartment sizes according to the customer’s requirements, whether it is for items as small as gas detection devices or large respiratory protection equipment.

Everything that's in the Rental Robot is owned and maintained by Dräger. Customers pay to rent kit from the minute they open the door and take the item out to the minute they put it back. If someone is on a 12-hour shift, for

example, they would rent it for the 12 hours that it's out with that person as opposed to the traditional rental model where you would have it for days and days.

Why would offshore companies hold three times the number of personal gas monitors for their usual workforce just for the three weeks of the year they have a platform shutdown? If they have a Rental Robot, they’re just borrowing it for the hours that person uses it. And if that person doesn't book it back in or they book it back in with damage, that contractor can be charged for the repair because it can be proven they had it.

With more companies adopting this style, we would see a behaviour change, all because things have been thought out differently, stemming from that idea of not spending 99p to download a song. It's thinking about how you can do things innovatively, and collaboratively, like John and Paul, Liam and Noel or Elton and Bernie. It’s thinking about using a company like Dräger. 

Dräger is an international leader in the fields of medical and safety technology. Since 1889, Dräger products protect, support and save lives.

As a society, we are far more likely to rent or hire items than we once were.

Dräger hire stock

Ports – The key to unlocking the UK’s Floating Offshore Wind Industry

With an upward trajectory in offshore wind projects globally, the challenges to meet 2030 net zero targets are significant. The key to unlocking this potential resides in port infrastructure assessment and selection. This will support projects during both the construction and O&M phases. These challenges are recognised across bottom fixed projects however, Offshore Floating Wind, (OFW) has seen a set of new challenges that need to be addressed.

Global Maritime have been working in the energy sector for many decades. With over 20 years offshore wind experience, the work in Port & Infrastructure assessment and Transport & Installation strategy development started in the infancy stage of offshore wind and has evolved with the industry as projects have got larger and moved further offshore. The floating wind landscape again has brought new challenges and it is these challenges that Global Maritime are addressing to bring solutions and de-risk projects.

Ports are required for substructure construction, turbine assembly, moorings, subsea cables, and operation. Large areas are required for the laydown of mooring equipment, inter array cables, turbine blades and nacelles. Assessing the capabilities of established port facilities as well as reviewing new infrastructure to support floating wind farm construction is key. Elements such as local content/supply chain, methods of launching assets from quayside, weather, vessel selection and Transport and Installation, (T&I), strategies need to be assessed to build out a competent and credible supply base.

These challenges are being faced across the APAC region, Americas, and Europe by Global Maritime with recent project involvement in Japan, South Korea, Australia, West Coast

US, Norway, and UK & Ireland. Whilst the locations vary, the drivers behind utilisation of ‘local infrastructure’ remains due to local content. The Scotwind Leasing round for example requires early supply chain commitments to be defined as well as a significant local content requirement across the project lifecycle. Similarly in USA where these challenges are exasperated by Jones Act legislation. Australia, South Korea, and Japan all have similar challenges with large commitments made in terms of bottom fixed and floating wind development and very ambitious 2030 Net Zero targets.

This is achieved largely through our ability to combine specialist engineering, including integrated geoscience, structural engineering, hydrodynamics, and naval architectures, as well as a significant team of Master mariners and a dedicated Marine Operations business stream who are responsible for delivering large complex marine logistics projects. With recent projects completed in relation to the Celtic and Irish Sea leasing round, Scotwind and West Coast USA, Global Maritime have utilised this experience and our proprietary Event Simulation software OPSIM to define port suitability , enable down selection of floater technology and launching methods, de-risk projects in terms of weather , review wet storage and Navigation risk as well as understand CAPEX cost implications for port upgrades, capital dredging campaigns and seabed risk.

Whilst these challenges are wide and varied, early and open engagement will serve to de risk and enable development of strategies and commitments from stakeholders to invest and allow for the Floating wind sector to progress onwards towards its goal of contributing towards the energy mix.

Global Maritime will be speaking at the upcoming Power and Energy Conference in Cork, Ireland discussing these challenges and how to overcome for the Irish offshore industry. 

For more information visit: www.globalmaritime.com

Author: Scott Cruttenden, Business Development Director, Global Maritime.

The floating wind landscape again has brought new challenges and it is these challenges that Global Maritime are addressing to bring solutions and derisk projects.

© Global Maritime.

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UNTANGLING A PERFECT STORM OF COMPACTED CRISES: THE ROLE OF WIND ENERGY IN ALLEVIATING THE ENERGY CRISIS.

By Benson John MSc CEng MIMeche, Senior Consultant - R&D Tax Incentives

The UK is highly dependent on natural gas. Although this stems from good intentions, it has unfortunately exacerbated the crisis that was borne off the pandemic and a certain ‘special military operation’ that has gone out of control. As natural gas accounts for 40% of the UKs electricity, this has put our energy supply and its suppliers under intense pressure as winter fast approaches. With fuel poverty looming due to the consistent raising of the energy price cap, coupled by pressure on UK’s natural gas sources, the spotlight on the renewables sector gets brighter.

How is the renewables sector, particularly wind energy poised to take this immense task on, or at least ease the load on our primary energy sources? The problem with wind and

other renewable sources is that, they are not constant. Although the opportunity to accelerate the switch to renewables is there for the taking, there is an impending and low-lying issue of ‘wind drought’ that has taken over Europe. Large areas of mainland Europe have experience a drop in wind speeds in the last year as compared to preceding years’ (between 1991 to 2020) taken as reference. The 2021 drop in wind speed has particularly hit the Northern European countries harder, especially ones that rely heavily on wind energy – Denmark

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.

There is now greater demand for high-efficiency wind technologies, with the opportunity for innovation in this sector rife.

which relies on wind energy for 44% of its energy, and Ireland, 31%. With wind speeds becoming increasingly unpredictable, there is a marked impact on the costs of wind energy. There is now greater demand for high-efficiency wind technologies, with the opportunity for innovation in this sector rife. In addition, a recent analysis from specialist energy market researchers has revealed that opportunities in offshore wind have compounded with 135 Giga-Watts of new capacity available for developers. Challenges and unknowns are strife in the wind energy sector, however technological innovations combined with market intelligence that provides key performance and operational cost indicators such as wind farm transaction databases, coverage of wind farms and the tracking of available government awards of financial support will all feed into the drive to enable wind energy technology and directly alleviate concerns over energy futures. 

QHSE ABERDEEN: ASSISTING ORGANISATIONS IN ACHIEVING AND MAINTAINING ISO CERTIFICATION

ISO certification is the bench mark that organisations strive to attain. It demonstrates their level of governance and commitment to meeting internationally recognised standards in various aspects of their operations. While the certification process can be complex and demanding, QHSE Aberdeen has emerged as a trusted partner, helping organisations navigate the journey towards ISO certification with expertise and efficiency.

QHSE Aberdeen, an established consultancy firm specialising in Quality, Health, Safety, and Environment (QHSE) management, understands the challenges organisations face in meeting ISO standards. Their team of seasoned professionals possess indepth knowledge and experience in ISO requirements across various industries.

The first step QHSE Aberdeen takes is to assess an organisation's existing practices and systems. This comprehensive evaluation identifies gaps between current practices and ISO standards, providing a roadmap for improvement. By analysing the organisation's operations, QHSE Aberdeen identifies areas that require attention and works collaboratively with the client to develop tailored solutions.

Once the areas of improvement are identified, QHSE Aberdeen supports organisations in implementing the necessary changes. They assist in designing and implementing robust

management systems, Quality / Health & Safety / Environmental / Information Security or a combination (Integrated) as required by the client By leveraging their expertise, QHSE Aberdeen ensures that organisations adopt best practices aligned with ISO requirements.

QHSE Aberdeen also plays a crucial role in training and developing the organisation's workforce. They provide comprehensive training programs to enhance employees' understanding of ISO standards and the importance of compliance. Through these training initiatives, employees gain the necessary skills and knowledge to contribute actively to the organisation's ISO certification journey.

As the certification process progresses, QHSE Aberdeen conducts independent internal audits and assessments to ensure that the organisation is on track and compliant with ISO standards. Their audits help identify any remaining gaps and provide recommendations for further improvement. QHSE Aberdeen's meticulous approach ensures that organisations are wellprepared for external audits by independent certification bodies.

During external audits, QHSE Aberdeen provides valuable guidance and support to organisations, acting as a liaison between the organisation and the certification body. They help organisations understand the audit

process, address any concerns, and ensure that all ISO requirements are met. QHSE Aberdeen's presence during external audits offers reassurance to organisations and helps them navigate the process with confidence. By partnering with QHSE Aberdeen, organisations gain several advantages in their quest for ISO certification. They benefit from the expertise and experience of professionals who understand the intricacies of ISO standards and guidance that ensures organisations have establish robust systems to develop competent personnel and maintain a culture of continuous improvement.

QHSE Aberdeen's track record of successfully assisting organisations in achieving ISO certification speaks for itself. Their commitment to excellence, attention to detail, and personalised approach have made them a trusted partner for organisations seeking ISO certification. With QHSE Aberdeen's support, organisations can navigate the ISO certification process efficiently and effectively, ultimately enhancing their reputation, credibility, and long-term success.

QHSE ABERDEEN asked a couple of recently Certified Organisations….. Why did you implement the system you have? How it benefits your business, How did you go about it and What advice would you give others thinking about starting on this route? 

Some of QHSE Aberdeen’s recent ISO wins have given reasons for implementing Management Systems…

QHSE ABERDEEN support Sonomatic with ISO Systems and QHSE, this is what they said...

How it benefits your business?

14001 and 45001 certifications have helped to mature and further integrate our QHSE Management system and raise awareness and focus in HSE matters. This has led to analysis in carbon footprint and energy consumption trends as well as increasing consultation with staff through HSE committees to ensure our objectives meet the needs of our interested parties.

Biosus Energy, asked QHSE ABERDEEN for advice and support throughout their ISO Journey, they said..

How did you go about it and what advice would you give others thinking about starting on this route?

Starting off was a little daunting and research showed that a lot of work was required to put the system in place.

I would recommend anyone starting out on this journey, to do their research and engage QHSE Aberdeen to help and advise, but most important of all is to realise this is not just about getting a certificate but is an ongoing way of working that involves the entire company at all levels.

Mintra purchased a Toolkit from QHSE ABERDEEN , this is what they said…

How does a Management System Benefit your business?

When tendering and being audited, if Mintra can show ISO 27001 & 9001 certified status, this greatly reduces security and management system questions saving both time and resource as well as giving the customer the comfort that they do not just need to take Mintra’s word for it as DNV and Bureau Veritas have certified our ISO certificates.

QHSE ABERDEEN supported eCerto with their IMS development, this is what they said..

Why did you implement the system you have?

We are currently supporting corporate clients across the energy sector to secure and deploy project finance globally with INTEGRATI®, which requires building trust among multiple stakeholders.

As such, eCERTO took the strategic decision to lead by example and develop an Integrated Management System that demonstrates our commitment to continuously improve service delivery, whilst protecting the environment and ensuring information security.

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www.sword-group.com

Introduction to our Compliance Specialists: Peter Kennedy, Sword’s Information Management Services Lead, has over 25 years of industry experience delivering high value information and compliance management services across the full spectrum of energy sector information and data. Peter also performs the role of Information and Records Management Lead for one the UK’s leading independent operating companies where he guides strategy and drives operational effectiveness.

Ed Ainsworth, Sword’s Compliance Services Lead, although having a background in zoology now has nearly 20 years’ experience ensuring that North Sea operators records are managed in alignment to internal and regulatory standards. Ed also performs the role of ISC for an international NoC, instrumental in ensuring they maintain the highest compliance standards.

The Role of Regulatory Compliance in the E&P Data Lifecycle

The UK Regulatory Landscape Compliance has historically been an afterthought, sitting out with the core data management lifecycle, side-lined in favour of operational activity and prioritising demand on resource-constrained teams. Internal pressures often left the data and information lifecycle hanging, with the impetus and energy to close out dwindling, likely driven by a lack of realisation of the value that compliance can derive when done effectively.

Times have changed, the data and information landscape has shifted with the realisation of the value that effectively governed data sets can yield, focusing organisations to target data in the search for operational effectiveness, innovation, competitive advantage, and value realisation.

The UK Government, through the North Sea Transition Authority (NSTA), has a directive to maximise the value of UK energy assets and deliver sustainability and security within the UK energy ecosystem. To support this push, it must ensure that the UK’s digital energy assets are optimised and accessible to support hydrocarbon, alternative energy and decarbonising initiatives, inevitably the desire to achieve its goals is being felt by Operators and their compliance teams.

The Regulatory Impact upon the E&P data lifecycle

Recent changes in regulatory requirements have driven the implementation of more structured and standardised workflows throughout the E&P data lifecycle, driving the innovative adaptation of existing processes for data collection, management, analysis, and reporting to reduce time to insight.

The development and widespread adoption of technology advances, specifically data mining, content analytics, cognitive search, GeoSpatial Analytics and data visualisation within better integrated information architectures have no doubt accelerated and streamlined compliance workflows.

Compliance specialists need to keep pace with evolving regulations and industry best practices, continually building on core data competencies, increasingly needing to combine digital skills (either their own or supporting teams), data engineering and low-code techniques to leverage the full technology capability on offer in the marketplace.

Regulatory compliance has further highlighted the value in our trusted digital data assets. Our data professionals must keep pace with change and adapt their reporting behaviours to suit an evolving audience.

The role of the ISC

It is imperative that organisations acknowledge compliance as a long-term investment which delivers cumulative value. Encouraging positive behaviours, developing, and supporting robust processes and a governance-minded culture throughout a business drives the ongoing cost of compliance down.

The role of an Information and Samples Coordinator not only involves managing the flow of information and physical samples, ensuring accuracy and quality, coordinating communication, and continuously improving processes related to information and sample management but also to drive the behavioural adoption and change required to integrate compliance best practice into an organisation’s Business-as-usual.

Sword provides experienced compliance and information managers to perform the ISC role for our clients, equally importantly we provide the support that ISC’s require to ensure the demands of the role are met, especially during periods of peak activity, such as the infrastructure submissions and looming UK NSTA calls for data.

Compliance Driven-Value

Transparency, clarity and domain understanding are essential to determining a company’s regulatory stance and their compliance deficit. Navigating the enormity of an organisations digital and physical assets to “plug” the deficit can be a daunting prospect. Known for providing the expertise and knowledge required to shape and deliver compliance services, Sword specialises in delivering achievable and sustainable technical solutions to support all aspects of managing compliance and the broader data and information domain.

Whether leveraging data science and machine learning to automate data mining, classification, and data extraction of unstructured data, or delivering GeoSpatial environments to transform the way you present and connect your data with external information sources to support an integrated digital infrastructure, data compliance enables you to fully realise the value of your data.

The compliance landscape is no longer static, it is continually evolving, accelerating towards supporting sustainable integrated energy systems, which will require an equally integrated, aligned and compliant data ecosystem. Recognising the demand and anticipating the change are essential to ensuring we maintain the trust and realise the value in our digital data assets. 

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

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

Ed Ainsworth Peter Kennedy

Regulatory compliance has further highlighted the value in our trusted digital data assets.

ECET2023

Engineering Chemistry for the Energy Transition (ECET) will bring together energy industry professionals to share experiences, highlight examples of best practice, and explore innovative chemistries and technologies that are helping accelerate the move towards Net Zero.

Created by training and consultancy specialist Production Chemistry Training (PCT), the ECET conference will engage and inform industry by providing a forum for operators, contractors, supply chain, academics and other stakeholders to explore technical challenges and opportunities facing the energy sectors.

Book now:

www.pctevents-ecet.com

info@pctevents-ecet.com I tel: +44(0)7340476232

CORPORATE PARTNER

www.renewableuk.com

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.

Cerulean Winds set out ambitions for North Sea Renewables Grid

Green infrastructure developer Cerulean Winds recently unveiled plans to develop the North Sea Renewable Grid (NSRG), a £20 billion integrated green power and transmission system, powered by floating wind, that oil and gas platforms will plug into for clean power.

Partnering with Frontier Power and uniting a dedicated consortium of world leading industrial partners, the development will be one of the country’s largest-scale infrastructure projects designed to deliver on the energy sector emissions reduction targets.

Founders, Dan Jackson and Mark Dixon have substantial expertise in the development and delivery of major offshore and deepwater energy projects and have founded and developed businesses in the global energy arena over 20-plus years.

The NSRG will see Cerulean develop three 333 square kilometre sites of hundreds of floating wind turbines, producing multiple gigawatts (GW) of electricity, after being offered the lion’s share of seabed leases in the recent Crown Estate Scotland INTOG leasing round.

Dan Jackson sheds further light on the development and its implications for the sector, economy and supply chain.

What is the North Sea Renewables Grid?

The North Sea Renewables Grid is a largescale offshore renewable power grid that will have the ability to provide clean power from floating wind to oil and gas platforms anywhere in the UK Continental Shelf.

It will link hundreds of offshore turbines with high-voltage cables to transmit green energy to oil and gas production facilities in the North Sea.

We plan to develop the grid in phases, with phase one focused on providing a clean power source for the North Sea’s oil and gas industry. Later phases will help to further commercially scale up renewable power for homes and businesses across the UK and beyond.

The scale and location of our three floating wind sites in the Central North Sea enables a basin-wide transmission approach, which will allow oil and gas operators a flexible option for removing millions of tonnes of production emissions by trading gas and diesel generation for a flexible, cost effective and cleaner alternative.

Each windfarm site is located within 100km of the others and will be connected together to form the offshore ring main around the Central North Sea. A High Voltage Alternating Current (HVAC) transmission will provide availability and redundancy for maximising generation uptime. The scale allows for offtake to other parts of the North Sea through a new High Voltage Direct Current (HDVC) network.

Why is basin-wide decarbonisation important?

The sector has signed up to the North Sea Transition Deal (NSTD) targets, but the challenge now is decarbonising production at scale whilst continuing to prioritise UK energy security.

The targets set by the NSTD demand urgent action. Operators have made it clear they are ready to act now to achieve these goals but cannot do so without a dependable and costeffective solution in place.

We recognise that to achieve meaningful reductions at the pace required, a basin-wide solution is necessary. By taking this integrated approach, we are offering organisations a reliable and flexible power source which they can plug into once they have completed any necessary brownfield works and are ready to make the switch to renewable power.

What is the benefit to oil and gas operators?

Currently, there are limited options for operators to reduce their production emissions and scale is required to hit the 50% reduction by 2030 target set out in the NSTD. Our goal is to provide them with a risk-free solution that will allow them to switch to renewable power as soon as they are ready through standardised Power Purchase Agreements.

Having hundreds of turbines in place over three locations provides the baseline required to build out the grid with a level of consistency that is demanded by the oil and gas industry, this provides redundancy in supply. The basin-wide scale allows us to be reactive, while maintaining lower pricing and supply robustness. For the oil and gas companies, the diversity of offtake through the HDVC network provides robustness to the scheme and further lowers their offtake costs through simple economies of scale. The intent is to minimise the ‘infill’ power from the grid when the wind is not blowing, and the scale of the wind farms provides this.

What delivery partners does Cerulean have on board?

Our delivery consortium brings together a suite of tier-one industrial partners to develop, supply and install the NSRG. This includes NOV, Siemens Gamesa, Siemens Energy, DEME and Worley. Each partner brings a unique skill set to the project that will enable us to fast-track phase one of building out the grid. Never before in the UK has such a consortium been put in place at the early development stage, however this is necessary to provide the confidence the scheme can be delivered on schedule and to budget.

Each of our partners has experience delivering large-scale projects for the offshore oil and gas industry in the North Sea. Their understanding of the region and supply chain are invaluable in allowing us to deliver such an ambitious project at pace.

Why did Cerulean partner with Frontier Power?

Frontier Power was an easy first choice to partner with for this project. Their founders are both ex-National Grid senior executives and they have an impressive track record of delivering large transactions in the power sector, with over £1.5billion of offshore transmission assets under management. They have already delivered an interconnector between the UK and Germany and are developing a UK to Netherlands HVDC link.

The wealth of knowledge and experience they have accumulated assures us that they have the capabilities and prowess to facilitate power transmission on a mammoth scale.

Identifying and achieving regulatory and statutory changes, along with an in-depth insight into the UK grid access process from the team’s time working with the National Grid, provides us with great insight into how to seamlessly rollout grid access for clients across the North Sea. The strength of an integrated offshore transmission and floating wind development team is the key to success.

What timeline is Cerulean working to?

Our target is to have electrons flowing to meet the NSTD milestones for 2027 and 2030, which is crucial for both the UK and Scottish governments to demonstrate they are delivering on their climate change ambitions Further, we are aiming to build out before ScotWind developments start. This will allow the supply chain to respond, creating crucial partnering opportunities for the ports and getting the market ready to deliver floating wind at scale.

Early oil and gas electrification supports the country’s energy security, net zero action and delivers huge benefits to the supply chain and economy. We have fast-tracked phase one of the NSRG to prioritise this, to give the oil and gas operators access to green energy as quickly as we can, with flexibility and reliability. Work with end users has begun in earnest so that we can aim for the first power availability in 2027. Further phases will focus on exporting green power to the grids in UK and Europe.

What is the opportunity for Scotland and its supply chain?

It’s all about scale. The vast amounts of infrastructure required will provide a pipeline of work over many years and provide the opportunity for ports and yards to invest now in expansions ahead of ScotWind, getting the market ready to deliver.

Scotland is one of the most investable countries in the world for large-scale infrastructure in green energy because of its supply chain, which has built up an enviable legacy of expertise from responding to oil and gas projects over half a century.

By creating over 10,000 jobs, this type of ambitious renewable project will help scale Scotland’s green economy. It will make a material impact on the country’s emissions, removing millions of tonnes of CO2 a year to support a just transition. In total, the three windfarms alone will contribute over £12 billion GVA to the UK’s economy.

What’s next?

We will continue our engagement with the supply chain on the packages of work including the tri-floater and with the oil and gas operators on the impact we can make to their emissions reduction ambitions. We want to partner and help make this a smooth transition. We appreciate that the timescales are challenging for the operators and will bring our experience and flexibility to streamline this as much as possible.

Further down the line the direct export route to Europe is a huge opportunity for Scotland to be a globally leading exporter of clean energy, which will provide further economic value. Wind is a reliable source of energy in Scotland, particularly in the deeper offshore waters, so this is a real chance to set the North Sea up for providing the next half a century and beyond of secure energy production.

Dan Jackson

www.infinity-partnership.com

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.

Renewables giant Orsted wins first Danish carbon capture tender

Denmark-based player secures 20-year deal for Kalundborg

Hub that already has agreement with Microsoft

Global renewables giant Orsted has been awarded a 20-year contract from the Danish Energy Agency to establish a carbon capture and storage project, the Orsted Kalundborg Hub, to process CO2 from its wood chip-fired Asnaes Power Station in western Zealand and a straw-fed boiler at the Avedore Power Station near Copenhagen.

Denmark-based Orsted expects to capture about 430,000 tpa of CO2 at the hub — 380,000 tonnes from the Asnaes power station and 150,000 tonnes from Avedore — which will be liquefied and sent by ships to the Northern Lights offshore CO2 storage facility in the Norwegian North Sea, expected to be completed next year.

The company said the Kalundborg hub could potentially provide shipping for CO2 produced by third-party emitters.

The project has support from Microsoft, which signed agreements in 2021 with Orsted and Aker Carbon Capture that will see the US technology company purchase 2.76 million tonnes of biogenic carbon removal over 10 years.

Commercial value

Orsted said the agreement “demonstrates the commercial value associated with carbon capture and removal.

“Given the nascent state of bioenergy-based CCS, Danish state subsidies and Microsoft’s contract were both necessary to make this project viable.”

Construction of the carbon capture units at Asnaes and Avedore is expected to begin in June this year.

CO2 from the Avedore power station will initially be carried by truck to the Asnaes facility “until a shared pipeline infrastructure across Zealand has been established”, Orsted said.

The company said the straw for the Avedore station is an agricultural by-product and the approximately 380,000 tonnes of wood chips burned to generate heat, electricity and process steam at Asnaes “come from sustainably managed production forests and consists of residues from trimming or crooked trees”, primarily in the Baltics.

“Capture and storage of biogenic CO2 is an important tool to mitigate climate change, and we look forward to initiating the work,” said Ole Thomsen, senior vice president and head of Orsted’s bioenergy business, adding that the company plans to have the CCS systems up and running “at the beginning of 2026”.

Italian offshore engineering and construction player Saipem has landed two new contracts worth a total of around $850m.

The first contract involves the second phase of the Sakarya gas field development project in the Turkish Black Sea waters. The work scope covers engineering, procurement, construction and installation of a 175 km long pipeline at 2,200 m water depth. The offshore work will start in the summer of 2024 and will be executed by Saipem’s flagship vessel Castorone. Saipem recently completed the first phase of the project, it secured from Turkish Petroleum OTC in 2021.

The Milan-headquartered firm also revealed a contract with EnQuest for the decommissioning of the existing Thistle A platform, in the UK sector of the North Sea. The deal includes engineering, preparation, removal and disposal of the jacket and topsides, with possible extension to further subsea facilities. One of the largest semisub heavy lift vessels Saipem 7000 has been earmarked for the project.

Saipem wins two contracts worth $850m

Petrofac surges on $1.5bn contract award

Petrofac surges after it said that its joint venture with China Huanqiu Contracting & Engineering Corporation (HQC) has been awarded an engineering, procurement and construction (EPC) contract valued at around $1.5bn by STEP Polymers SPA.

The oilfield services company said this is a "significant" downstream project, which will form part of the Arzew Industrial Zone, located west of Algiers, supporting Algeria’s energy strategy.

Covering the design and build of two major integrated processing units, the contract includes the delivery of a new propane dehydrogenation unit and polypropylene production unit, as well as associated utilities and infrastructure for the site. It is expected to produce 550,000 tons of polypropylene per year.

Chief executive Tareq Kawash said: "We are proud to be supporting our customer to deliver this strategic project. Algeria is a core market for Petrofac and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects."

At 0825 BST, the shares were up 9.4% at 72.45p.

Subsea7 awarded project offshore US Gulf of Mexico

Subsea7 announced an award by LLOG Exploration Offshore, LLC as project manager for the Salamanca development project, which includes the Leon and Castile fields, in the US Gulf of Mexico. The award is defined as sizeable1.

The contract scope includes the installation of three infield subsea pipeline systems, as well as the design and fabrication of subsea structures. Subsea development will consist of two pipeline systems for the Leon field, located in Keathley Canyon 686, and one pipeline system for the Castile field, located in Keathley Canyon 736. The infield pipelines will produce and flow from wellsite PLETs to the Salamanca FPS in water depths ranging from 1,800 to 2,000 metres.

Additionally, the scope includes the installation of oil and gas export pipelines which depart from the Salamanca FPS and tie into existing pipeline transport systems approximately 48 kilometres away.

Project management and engineering will commence immediately at Subsea7’s office in Houston, Texas, with offshore activity expected to begin in 2024.

Allseas and Heerema bag Tennet platforms installation deal

Craig Broussard, Vice President for Subsea7 US said: “We are excited about the opportunity to work closely and openly with LLOG on this fastpaced, greenfield development. Our strengths as a collaborative partner and the versatility of our fleet will be instrumental in ensuring predictable, safe, and timely project delivery.”

Offshore construction specialists Allseas and Heerema Marine Contractors (HMC) have secured multi-year framework agreements with transmission grid operator TenneT to transport and install at least 14 supersized offshore wind converter stations in the Dutch and German parts of the North Sea.

Under the framework deal, which covers at least twenty-eight slots for fourteen jackets and the same number of topsides, Heerema has been awarded about 60% of the available slots, while Allseas has secured approximately 40% of the slots.

The Dutch-based HMC will deploy its semisubmersible crane vessel Sleipnir as well as an owned floatover barge, and the Swissheadquartered Allseas will use its single-lift installation vessel Pioneering Spirit for the installation of the jackets and topsides. Boskalis will act as a subcontractor to Allseas, building one or two new transport vessels.

In April this year, Belgium, Denmark, Germany, the Netherlands, France, Ireland, Luxembourg, Norway and the UK committed to jointly install at least 120 GW of offshore wind power capacity by 2030. TenneT will account for about one-third of this volume.

Key

A leading provider of industrial inspection, maintenance and repair services is set to further its commitment to the energy transition thanks to the launch of a new division which will further enhance its position in the renewables market.

IM&R leader TRAC Energy has a long history of successfully supporting offshore energy operations and has just unveiled the addition of a renewablesfocused talent acquisition arm.  Recruitment

New senior financial appointment to drive continued expansion at North Star

North Star, the UK’s leading offshore infrastructure support vessel operator, has appointed experienced financier, Lesley Dunn, to the newly created role of head of financial planning and analysis to lead the drive for continued growth.

Lesley, a chartered accountant, brings a wealth of knowledge and expertise including more than 25 years’ working in the corporate finance sector. Having established her career with Simmons & Company, now Piper Sandler, an investment bank and advisers to the energy industry, Lesley has participated in over 20 transactions with a combined value in excess of (US) $2bn.

She joins North Star after running her own financial consultancy business for seven years, and most recently acting as a senior specialist for engineering and consultancy business Vysus Group.

In her new role as head of financial planning and analysis, Lesley will be based in the group’s head office in Aberdeen and will work closely with the

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 /

specialist John Lamond has been brought on board to head up the new service in a role that will be pivotal in sourcing candidates for TRAC’s renewables projects and providing external clients with a professional recruitment solution.

John’s career spans almost two decades and he brings to the team a wealth of recruitment and business development experience across the engineering, construction, industrial and offshore sectors and this will be crucial to driving future growth.

John is joined by recruitment consultant Rebecca Wilson and the pair will build the team to keep pace with activity in Scotland and beyond.

The appointments continue a hiring strategy that has seen recent expansion of service delivery (project management, engineering, analytics and technology) and senior management teams.  Further appointments are planned to support new technical products and services and TRAC Energy is currently participating in the Fit4Offshore Renewables scheme.

Commenting on the launch, TRAC Energy Head of Renewables Joel Telling said: “We have a long-standing commitment to creating an expert team with a shared vision to deliver best-in-class renewables solutions.  Expansion of that team to

company’s chief financial officer and chief strategy officer. She will be charged with the management of lender and shareholder information requirements, including detailed financial modelling, currency and interest rate hedging and cash management, in addition to supporting long term business planning for newbuild capex approvals and mergers and acquisitions (M&A).

Lesley said: “I’m thrilled to be joining the team at North Star at a time when it is experiencing considerable growth across the renewable energy sector and looking to expand its hybridelectric offshore wind vessel fleet and services across Europe.

“Following a £140million worth of investment last year, including £50million from Scottish National Investment Bank, North Star is in a financially robust position to further progress its new build programme and seize new market opportunities.

“I’m looking forward to supporting the group as it continues to grow, expanding its reach across the sector, and helping North Star bring its first-class capabilities and innovative solutions to new and returning customers, backed by strong commercial acumen.”

In his new role, Andy Cuniah will work towards the EIC's goal of helping its member companies to export, diversify, and grow in a time of global Net Zero and transition conversation.

"I am excited at the opportunities ahead for the EIC," commented Mr Cuniah. "The EIC has always had a bold ambition, and I look forward to working with our member companies to deliver on our three pillars of Export, Diversify, and Grow. This is more important than ever in a time with a global Net Zero and transition conversation.”

offer professional talent acquisition alongside project IM&R services is a natural extension and will make a compelling value proposition for our current and prospective clients.

“As well as finding and recruiting trained and experienced staff for projects we’re involved in ourselves, our services will be in demand across the wider industry as renewables projects, and the need for good people who can hit the ground running, continue to gather pace.”

Head of Talent Acquisition (Renewables) John Lamond added: “This is an exciting time to join the TRAC Energy renewables team and I look forward to using my years of experience to help unlock the potential of this new division.  TRAC Energy already has a range of highly transferrable products, services, experience, knowledge and skills which fit well within the renewables sector, so it makes sense to take all of that into the sphere of talent acquisition.

“In terms of our own team growth, I am also passionate about training and developing the next generation of recruiters and to working closely with training providers to gain the best candidates available for TRAC Renewables’ projects and the external market.  Our business will open up vital skill transfer opportunities for those seeking to begin new chapters in their energy sector careers.”

Bechtel Limited's supply chain manager, Andy Cuniah, has been appointed as the new chairman of the Energy Industries Council, the world leading trade association for the energy industry. His appointment coincides with the EIC having been awarded last week the prestigious King's Award for Enterprise: International Trade.

“With offices in Rio, Houston, Kuala Lumpur, Dubai and London busier than ever, with the roll out of more countries and areas in EICSupplyMap database of supply chain companies, the organisation is continuing to grow and represent the members at all levels and regions,” he continued. “I would like to extend my thanks to Hugh Saville, my predecessor, who has guided the EIC through COVID, lockdowns and the most recent global disruptions.”

EIC CEO Stuart Broadley commented on the appointment, "We're thrilled to welcome Andy Cuniah as the new Chairman of the EIC. His experience in the energy industry, combined with his passion

Fraser Dobbie, chief strategy officer of North Star, welcomed Lesley to the team.

“As we look to the future and begin to plan and invest in new fleet constructions, Lesley brings with her an exceptional track record for delivering results during critical growth periods including expansion, acquisition, investment and internationalisation. “Lesley’s key skills in creating financial models to support decision making will be invaluable to the team as we plan our future in the energy industry.”

for our mission of promoting the UK's energy industry abroad, make him the ideal leader for our organisation."

Mr Broadley also expressed his gratitude for the service of outgoing Chairman Hugh Saville, stating, "We would like to extend our thanks to Hugh Saville for his exceptional leadership during his tenure as Chairman. Over the years, his support has been invaluable in helping the EIC advance the energy industry's supply chain interests and support members. His unwavering dedication has helped navigate disruptions and uncertainties, allowing EIC to continue its crucial work."

The EIC represents over 900 supply chain companies, globally, across the energy industry, and provides a range of services to its members, including market intelligence, export support, and networking opportunities. The EIC is continuing to expand its global presence to serve its members. Last week, the organisation announced that it had expanded its operations in Saudi Arabia with the appointment of the first Saudi-based membership manager.

renewables appointment heralds expansion for market leader

Andy Cuniah Appointed as Chairman of the Energy Industries Council

SPONSORED BY www.normanbroadbent.com

We have a simple and straightforward objective: to help our clients manage and successfully drive change, mitigate risk, grow, and succeed.

John Begley, Managing Director

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.

He is a Non-Executive Director at Chariot, where he was instrumental in the board’s decision to change strategy from being an oil and gas explorer into a company pursuing transitional gas, power and green hydrogen projects across Africa.

Lynda Armstrong, Chair of the ECITB Board, said: “Andrew joins us at a time when there are critical challenges facing our industry.  Paramount is the need to ensure employers have the skilled people needed in the face of a tight labour market.  As an industry, we must do more to attract, develop and qualify new entrants while continuing to train our existing workforce.

John Begley, Managing

Director

Andrew Hockey will join the Engineering Construction Industry Training Board (ECITB) on 1 June as CEO.

The ECITB’s former Director of Operations, Andy Brown, has been Interim CEO since Chris Claydon’s departure earlier this year. Andy will retain Accounting Officer responsibilities of the industryled skills body until 5 July when Andrew will officially take over the helm.

Andrew comes with four decades of experience, latterly having held numerous directorships and CEO roles across the energy sector.

Andrew has worked in the UK and internationally with European majors Petrofina and ENI and with US and UK independents Triton, Monument and Lasmo. Until the end of 2021 Andrew was a Non-Executive Director at UK oil and gas exploration and production company, Fairfield Energy, which he co-founded in 2005 and helped to transition to a decommissioning company in 2016.

Most recently Andrew was CEO at IOG plc, a low carbon footprint gas developer and operator in the UK Southern North Sea.

5

“Having led major energy-sector organisations, Andrew understands the industry and the challenges in terms of skills shortages and training needs. I cannot think of a better individual to work with us and steer us to achieve the next phase of our mission and vision.

“I would like to thank Andy for taking on the reins as Interim CEO while the Board recruited the permanent replacement for Chris.”

Andrew Hockey said: “I am delighted to be taking on this role at this time. The engineering construction industry faces some major challenges – not least in securing the skills needed for the country to meet its Net Zero aspirations.

“There are huge infrastructure projects on the horizon including multiple carbon capture, hydrogen and fixed offshore wind projects in the design or planning stage, and floating offshore wind projects under discussion. The workforce as it stands right now would be unable to meet this demand.

“Whilst my immediate focus will be to deliver the ECITB Strategy 2023-2025 that was developed in partnership with industry, training providers and the UK, Scottish and Welsh governments – I will also be looking to the future.

Essar Oil (UK) Limited, the leading downstream energy company, has announced the appointment of Tony Fountain, managing partner at Essar Energy Transition, as an non-executive board director. Coming at a key time for Essar as it delivers on its investment plans of transitioning to be amongst the first low carbon refineries globally, Tony’s appointment will support the delivery of Essar Energy Transition (EET) ambition to lead the UK energy transition. EET will be investing US$3.6 billion in developing a range of low carbon energy transition projects over the next five years, of which US$2.4 billion will be invested at the Essar site in Ellesmere Port, between Liverpool and Manchester.

Calum

MacPherson, has been named chief

executive

of the Inverness and Cromarty Firth Green Freeport

The Inverness-born, Calum MacPherson, has been named chief executive of the Inverness and Cromarty Firth Green Freeport in what he describes as a “fantastic opportunity.”

The Aberdeen University law graduate worked in a tax practice in the granite city where he focused primarily on clients in the oil and gas sector but most recently, he has held various positions at the construction firm, Robertson Group.

The latest role Mr McPherson has held at Robertson Group was that of director of capital projects, taking up the job in November 2022. He has worked with this firm for almost 12 years.

Mr McPherson said: “This is a fantastic opportunity to lead an organisation that will play a central role in creating exciting careers for people across the Highlands and further afield, attracting large-scale international investment and playing a central role in delivering net-zero; and putting Inverness and the Cromarty Firth firmly on the renewables map globally. free article.

ICFGF Chair, Jim Smith, added: “As you would expect, the recruitment for a Chief Executive for ICFGF was an extensive selection process.

“We needed someone with the skillset and background to be able to hit the ground running.

“We are delighted to have attracted an individual of the calibre and experience that Calum brings.

“His knowledge will be a significant advantage allowing the Inverness and Cromarty Firth Green Freeport to deliver on the ambitions outlined in our Green Freeport bid on job creation, inward investment, and decarbonisation.”

Tony brings extensive manufacturing, marketing, specialist trading and transformation experience. Having begun his career at BP, Tony’s roles have included CEO of Refining and Marketing at Reliance Industries Limited as well as a period as CEO of the UK Nuclear Decommissioning Authority – with oversight for nuclear decommissioning. Tony then went on to apply this extensive operational, regulatory, and health and safety experience in a range of board positions, also applying his governance experience to companies operating in complex environments over three continents. This includes roles as Chair of Sellafield UK and of Nayara Energy Limited and as a non-Executive Director at ATCO Group.

Prashant Ruia, Non-Executive Chairman of Essar, said: “We would like to welcome Tony to Essar’s Board. He brings over 40 years of operational, regulatory and executive experience that will enhance our business at this vital stage in our transition.

“We are committed to leading the energy transition and Tony’s appointment will play a crucial role in achieving this ambition.”

Tony Fountain, Non-Executive Director of Essar, said: “I am pleased to be invited to Essar’s Board. The Company is committed to be amongst the first low carbon refineries globally and to play a key role in the decarbonisation of the North West.

“The task at hand is a vital one, to secure the refinery’s performance today to enable it to act as a catalyst for the levelling-up investment the region needs and to deliver on Essar Energy Transition’s commitments.

6 Essar announces new energy transition appointment

Andrew Hockey to join the ECITB as CEO

SPONSORED BY

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 debuts saturation dive spread capability on Well-Safe Guardian

Robin Kimber, Rig Manager of the Well-Safe Guardian, added: “The Well-Safe Guardian is the market-leading single-asset well decommissioning solution in the North Sea, with lightweight well intervention, saturation diving and full drilling rig capabilities.

“The dive spread system is designed to work in tandem with the Trendsetter Trident well intervention system previously announced by Well-Safe Solutions in 2022.

“The potential for simultaneous operations with both technologies onboard will unlock even higher levels of operational efficiency, further minimising our environmental footprint and reducing operational risk on behalf of our clients.

“We would like to thank all of our partners involved to date in the safe and successful design, fabrication and loadout of the saturation diving system.”

Well-Safe Solutions has unveiled a D300 saturation diving system aboard the Well-Safe Guardian, making the semisubmersible rig the only one of its type in the North Sea with this capability.

The custom-built dive spread, with capacity for up to 15 persons, enables safe access to legacy subsea wellhead and Christmas tree systems from the 1970s onwards which were originally designed for diver intervention.

Phil Milton, Chief Executive Officer at WellSafe Solutions, said: “With 48% of overall decommissioning expenditure in 2022 focused on well abandonment alone, Well-Safe Solutions has identified a clear market in mature basins such as the UK Continental Shelf for this technology.[1]

“The dive spread system installed on the Well-Safe Guardian is a cost-effective, flexible alternative to the industry standard, which typically sees a light well intervention vessel (LWIV) used to plug and lubricate the well before completing decommissioning operations with a standard semi-submersible mobile offshore drilling unit (MODU).

“Our ‘single asset solution’ offers an alternative to the conventional approach and does not require multiple vessel mobilisations and demobilisations. This results in lower operating costs, minimises the risk of weather-related disruption and boosts overall project efficiency.

“Recent engineering and comparative analysis studies have demonstrated the value this solution can bring to the wider decommissioning industry as it seeks to streamline processes and costs alike as part of the transition to net zero carbon emissions.

“Our data shows that the use of the WellSafe Guardian to plug and abandon (P&A) five wells over three fields in the North Sea generates a 15% total cost reduction and is 44 days quicker than using a LWIV and MODU pairing.”

“We are delighted to be able to bring this solution to market as part of our vision to become the industry’s well decommissioning partner of choice.”

The manufacture, transport and fitment of the dive spread was carried out at Burntisland, Rosyth and Methil ports on the east coast of Scotland.

Equipped with an environmentally-friendly electric bell-handling system and two hyperbaric lifeboats, the system is designed to enable diving operations to be carried out in support of well decommissioning.

Typical operations supported include cleaning, deconstruction, barrier testing, manual tree cap removal, reconfiguration of hydraulic controls and flowline removal.

Even greater efficiencies can also be realised as part of Well-Safe Solutions’ P&A Club; a campaign-based approach to well abandonment which batches and tackles wells in series without intervening returns to port.

Following further systems integration and testing, the Well-Safe Guardian will mobilise early summer 2023, returning to the Buchan field operated by Repsol Sinopec Resources UK to plug and abandon nine wells using the saturation dive system, the Trident well intervention system and the blow out preventer, realising the full potential of this single asset solution.

UK-based RockSalt Subsea will support Well-Safe Solutions with diving services and personnel during all saturated diving operations from the Well-Safe Guardian.

David Whitehouse, Chief Executive Officer of Offshore Energies UK, added: “The UK offshore energy industry has a long history of developing world-class solutions to the challenges it has faced and continues to face

“This latest development and adoption of technology on the Well-Safe Guardian from Well-Safe Solutions shows an absolute commitment to drive forward innovation to improve efficiency for the plug and abandonment of wells. These efficiency improvements will also have a positive impact on safety and environmental performance

‘Petroleum unitisation, pollution prevention’ — NUPRC unveils

7 regulations for oil, gas industry

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed seven key regulations to further ensure the implementation of the Petroleum Industry Act (PIA) 2021.

Speaking at an event in Abuja on Thursday, Gbenga Komolafe, chief executive officer (CEO), NUPRC, said the signing of the regulations was in fulfillment of the mandate of the commission.

Komolafe listed the new regulations as the Nigeria upstream petroleum measurement regulations, 2023; production curtailment and domestic crude oil supply obligation regulations, 2023; frontier basins exploration fund administration regulations, 2023; Nigeria upstream decommissioning and abandonment regulations 2023.

Others are the significant crude oil and gas discovery regulations, 2023; gas flaring, venting, and methane emission (prevention of waste and pollution) regulations, 2023; and the Nigeria upstream petroleum unitisation regulations, 2023.

He said five regulations had earlier been successfully gazetted into law between June and October 2022.

“Gazetting the 12 regulations demonstrates the commission’s commitment towards providing a business-enabling environment in the Nigerian upstream oil and gas industry space,” he said.

Komolafe added that the seven new regulations signed are part of the 13 draft regulations that were presented for discussion “during the first, second, and third phases of our consultations with stakeholders between 2022 and 2023”.

‘BENEFITS OF THE NEW REGULATIONS’

Specifically, Komolafe said the Nigeria upstream petroleum measurement regulations will close the metering gap in upstream petroleum operations, encourage accelerated hydrocarbon measurement metering devices roll-out in upstream petroleum operations; and encourage the development of independent and competitive meters used in the upstream.

“Production curtailment and domestic crude oil supply obligation regulations, 2023. This will provide general rules for production curtailment and utilisation of the produced petroleum in relation to export and domestic crude oil supply obligations, pursuant to sections 8(c) and 109 of the act,” he said.

“Frontier basins exploration fund administration regulations, 2023. This will also provide the general rules for the exercise of the commission’s responsibilities with respect to frontier basins in Nigeria, pursuant to section 9 of the act and the administration of the frontier exploration fund. The aim is to encourage and attract investment to the frontier basins in Nigeria.

“Nigeria upstream decommissioning and abandonment regulations 2023. It seeks to ensure that decommissioning and abandonment activities are conducted in accordance with good international petroleum industry practices. The regulations also set the framework for the establishment and administration of a decommissioning and abandonment fund.

“Significant crude oil and gas discovery regulations, 2023, would ensure optimum exploitation of petroleum covered by petroleum prospecting licenses, granted under the act, by the retention of areas of significant crude oil discovery and significant gas discovery by a licensee for specified time in accordance with section 78 of the act.”

Komolafe also said the gas flaring, venting, and methane emission (prevention of waste and pollution) regulations seek to “reduce the environmental and social impact associated with gas flaring and venting of natural gas and fugitive methane emissions into the atmosphere, preserve and protect the environment”.

He said the Nigeria upstream petroleum unitisation regulations establish the “rules, principles, and procedures for the implementation of unitisation of oil and gas from a petroleum reservoir that extends beyond the boundaries of a licence or lease area into an area to which another licence or lease relates”. 

Decom Mission Leading the decom journey

Last month saw the launch of Decom Mission.

Until now, you’ll have known us as Decom North Sea; the only trade organisation solely focused upon late life and decommissioning. The driver to establish us back in 2009 was the vision to connect the operator and supply chain communities as the North Sea industry’s decommissioning sector began to gather pace.

In reality, that activity gained real momentum rather later than anticipated, but as market conditions changed, and the UKCS’s regulatory context became became better understood over the years, the sector began to develop. Now, as the UKCS decom sector comes of age, it has become one that is rich in experience - viewed by many as a centre of excellence, which offers guidance on best practice to emergent decom regions.

We frequently provide that guidance. Add to the emerging markets of Australia and Brazil the maturity of decommissioning in the Gulf of Mexico, and it becomes clear that the decommissioning industry of 2023 is truly international. “Decom North Sea” worked for many years, now it simply no longer reflects

the industry or the ambitions and locations of our members.

In a nutshell, as the whole energy industry undergoes a period of significant change as we transition towards a net zero future, and decommissioning activity accelerates, there is literally no industry body better placed to inform and independently represent decommissioning across the energy sector. This is where our new identity comes in.

Expanded Horizons

In keeping with the evolving global decom landscape and its multi-national membership, Decom Mission is set to establish a network of international hubs in key locations, whilst maintaining the original North Sea headquarters.

And with the continued call for decommissioning services for the nuclear sector in the near term, and the renewables sector in the longer term, our new strategy and focus reflect that emerging business potential.

However, whilst the decom landscape may have developed, the fundamental objective set in 2009 remains unchanged: to signpost the opportunities ahead for our members - to connect, inform and facilitate industry relationships.

Decom Mission will continue to build upon this, and we will lead our members’ decommissioning journey. We will continue to deliver relevant, timely and cost-effective events and networking, alongside a specific commitment to provide members with improved data, strategic insight and focused member advocacy.

That is our Decom Mission. 

Allseas' Pioneering Spirit Scoops Up Offshore Power Platform Contracts

Nine European countries have pledged to install 120 GW worth of wind capacity in the North Sea by 2030, and these projects will require lots of heavy-duty converter stations. Given its unique capabilities, Allseas is raking in contracts for the jackets and topsides.

In mid-May, it secured a 14-platform contract for converter installation for the $30 billion TenneT offshore transmission grid project. This is a once-in-a-generation project, unprecedented in its scope.

Swiss heavy lift company Allseas may have designed the oneof-a-kind hydraulic lift ship Pioneering Spirit for the offshore oil and gas sector, but it is proving just as useful for offshore wind. The turbines that generate power at wind farms are just half the infrastructure of these massive projects; power conversion and transmission are just as resource-intensive, and often require installation of platforms that look - and weigh - almost exactly the same as offshore production platform topsides.

Pioneering Spirit was built to install and remove massive platform structures in one piece, and is perfectly positioned to capitalize on this new line of business. The ship can even place jackets. After the end of the Nord Stream 2 pipelay contract, Allseas added a gigantic rack to the stern of the Pioneering Spirit for use in decommissioning platform jackets in the North Sea. This rigging can be deployed just as easily in reverse to emplace jackets on the seafloor.

Last week, it added to the list with a contract from Dragados to install two 13,000-tonne jackets and two 27,000-tonne platforms off the coast of Germany. The 2 GW platforms will support power transmission for the BalWin wind farm cluster, and developer Amprion has stepped up the pace for construction. BalWin1 will enter into operation as early as 2029, two years ahead of schedule, and BalWin 2 will follow the year after.

“The next generation converter stations are substantial structures, similar in size to a football pitch and weighing up to 30,000 tonnes, housing complex and delicate HVDC technology that makes them a good match for our industry-leading installation capabilities,” said Pieter Heerema. "Pioneering Spirit’s large lift capacity and high workability ensure that the installations can be safely performed all year round, creating maximum flexibility in the vast and complex building schedules.”“The dive spread system is designed to work in tandem with the Trendsetter Trident well intervention system previously announced by Well-Safe Solutions in 2022.

“The potential for simultaneous operations with both technologies onboard will unlock even higher levels of operational efficiency, further minimising our environmental footprint 

Film-Ocean’s versatile ROV fleet is capable of working from surface to seabed in the most arduous conditions. Our class leading ROV fleet support your projects from vessels & platforms.

We specialise in providing innovative, cost effective subsea solutions to global offshore energy industry.

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Our ROV fleet delivers the latest technology including:

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SPE ABERDEEN WELL

DECOMMISSIONING 2023

6 JUNE 2023

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GLOBAL ENERGY TRANSITION 2023

7-8 JUNE 2023

NEW YORK, USA

EXPO BIOGAZ 2023

7-8 JUNE 2023

STRASBOURG, FRANCE

GLOBAL ENERGY SHOW 2023

13-15 JUNE 2023

CALGARY, CANADA

GLOBAL OFFSHORE WIND (GOW)

14-15 JUNE 2023

LONDON, UK

EES EUROPE 2023

14-16 JUNE 2023

MUNICH, GERMANY

HYDROGEN & P2X 2023

14-15 JUNE 2023

COPENHAGEN, DENMARK

THE SMARTER EUROPE

14-16 JUNE 2023

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INTERSOLAR EUROPE 23

14-16 JUNE 2023

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CHINA INTERNATIONAL WIND ENERGY EXHIBITION AND CONFERENCE 2023

14-16 JUNE 2023 @ CHINA SHANGHAI NEW INTERNATIONAL EXPO CENTRE (SNIEC)

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EUROPEAN CARBON BLACK SUMMIT 2023

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MOVE 2023

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INVESTING IN ENERGY

By Michael Stoneham, Partner and Laura Petrie, Partner, Brodies LLP

Investment for energy projects has gone through a significant landscape change in recent years, with private equity investors steering away from traditional oil and gas projects due to ESG policies and regulatory obstacles and significant competition for financing for renewable energy projects. However, as new technologies emerge and energy supply companies look to transition to a wider portfolio of energy sources the field for investment is also widening.

So what opportunities and challenges are there for financing energy projects?

Financing for proven technologies

The Climate Change Committee is now reporting that a reliable decarbonised energy supply system can now be delivered by 2035. This is due, in part, to the commitment of both existing energy companies and new entrants to the technology market seeking to develop more efficient clean energy solutions, but also to the availability of financing for proven technologies, principally for onshore wind, hydro and solar.

While it was reported last year that the UK Government had not set an ambition for delivering an increase in onshore wind capability, Scotland has identified a target of 12GW of new onshore capacity, more than doubling the existing built capacity, to be delivered from a mix of new build, extensions and repowering. This sits alongside its major programmes of offshore development. For businesses with an oil and gas focus that are looking to diversify or develop technology in these areas there are significant opportunities to secure finance.

Barriers to development

The primary objective of any investment opportunity is to see a clear route to returns. Therefore, projects must have a certain level of certainty in order to attract investors. In the energy transition market there are potentially three barriers to development which can have an impact on the availability of finance.

Grid connection

Projects that have connection dates lined up for the National Grid in advance will be the most attractive to investors. At present, connection dates are ranging between 2027 and 2032 meaning that the financing markets will look to engage in 2025. National Grid is looking to free up further capacity through analysis of offers that may not actively be utilised and developing a queue management system but strategically it will be of key importance to expand grid capacity generally to ensure there is sufficient capacity to align with the expected increase in both generation and use of electricity. A fifty percent increase in demand is expected by 2035, requiring the installation of five times the scale of that achieved over the last 30 years.

Planning and Consenting

The planning process can be very challenging, with the prospect of public inquiries in the planning committee objects, and of local councillors overriding (no doubt for good political reasons) any positive recommendation proposed by officials. Conditions specified in approvals can be obscure and introduce further delays. Similarly, regulatory consent is increasingly facing judicial reviews being raised by activists or other concerned parties where any element of fossil fuels remains inherent to the project (for example, hydrogen developments). Such reviews can lead to significant delays in project development.

Where developments or technology seeking finance are reliant in any way on regulatory or planning consent, these consents should be progressed as far as possible, or at least have a clear timeline, before any form of financing is sought.

Development capacity

The energy industry has always faced supply and demand constraints, whether in costs of raw materials, transportation issues or availability of suitable personnel. As the energy mix develops new technology and widens its remit, so too do these issues expand and already stretched resources are required to cover a wider base. The financial commitments of this process are a burden for developers which investment can relieve but the business models underlying new projects can be significantly impacted by rising costs and supply chain uncertainty. The diversity of taxation approach between energy sources will also play a key part in determining an investors appetite which means a diversified portfolio will make for a more attractive investment.

Investors will always be looking at ways in which costs can be reduced and delivery times guaranteed in order to protect their anticipated return. Efficient contracting and project management can assist with addressing these issues and ensuring projects are investment ready.

Where can progress be made?

Enabling quick progress towards Net Zero with investable projects means ensuring that sufficient consideration has been given to the type of projects, the delivery timelines and the regulatory or panning requirements that need to be in place. Maintaining a mix of energy sources - resourcing short term from oil and gas while fostering new renewables projects and clean technology – means that there are viable investment opportunities while also ensuring security of supply for the energy market. 

www.hfi-consulting.com

HFI – India

At the moment, where geographically do you see opportunity in the Energy sector?

India I think is a complete panoply of challenges and opportunities, and I guess for me there were two drivers. First of all, the International Energy Agency recently published an energy outlook for India in the context of COP21 and the energy transition challenges and clearly these challenges are not going to be met unless India is able to meet them, and we saw that as a huge opportunity.

What role will renewable energy play in India’s future?

From a renewables perspective, India is very exciting, there is a lot of solar activity already happening in India. I suppose for me, the most exciting aspect of India is if the offshore wind industry takes off, that industry clearly has taken route to the Northwest Europe and now the European industry is looking to where it is going to be expanding into. And I think given India has a coastline of over 7,500 kilometres major developments now coming through in Tamil Nadu in the east of India and Gujarat in the northwest of India.

And of course, what will be particularly exciting is if floating offshore wind rolls forward in the same way it is now doing in Europe clearly allowing the industry to extend beyond the typical 50/60 metres of water depth. The fixed installations can operate from floating wind of course liberating the industry from that shallow water environment to allow them to move into deeper environments.

So, very exciting prospects for offshore wind in India and indeed if it flows into floating offshore wind. 

HUGH FRASER INTERNATIONAL

HFI is a specialist professional services firm led by Hugh Fraser, a Scottish corporate/energy lawyer and member of the Scottish Development International GlobalScot international trade ambassador network. HUGH FRAS

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