Working together for a safer world
Improving the performance and safety of your energy projects Services for upstream, midstream and downstream operations.
LLOYD’S REGISTER IN THE ENERGY SECTOR AT A GLANCE Lloyd’s Register applies its technical and engineering expertise to help operators and regulators across the oil and gas, chemical and petrochemical industries design, construct, operate and decommission their critical assets, and deliver projects to their highest levels of safety and performance.
We apply our expert solutions and independence, from reservoir to refinery and beyond, to assure the integrity, reliability and success of every aspect of a client’s operations. Helping maximise productivity and recovery, reduce operating costs, mitigate risk and demonstrate compliance with government regulations, industry codes and standards.
200 wells
We draw on over 250 years of solutions-led thinking and technical innovation to respond to new challenges, while retaining our commitment to independence, integrity and doing the right thing.
We help our clients in the areas of: Consulting
Asset Inspection
On Target Project Delivery Ensure successful management and delivery of projects and activities: safely, on time and on target. Consulting
Risk and Safety Improve safety and reduce environmental incidents or near misses: protecting lives, assets, environment, investments and reputations.
Asset
Inspection
Drilling
Optimise Asset and Operational Performance Maximise asset (reservoir, platform, plant) productivity, reliability and increase uptime of critical equipment. Drilling
Life Extension Extend asset life and create a smooth transition from late life operation to decommissioning.
Compliance
Compliance Ensure design, critical equipment and projects comply to all specifications and standards.
Technology
Op1: Performance Management
Technology
Compliance
Consulting
Asset
Op2: Performance Management
Drilling
Inspection
Innovation Support adoption and application of innovation and new technology, and extend skills base. Technology
Compliance
Appointed Wells Duty Holder (well operator) for multi-asset portfolio which included a well stock of over 200 wells acquired by new entrant to UKCS.
0
$80
million Developed a business transformation strategy, supported by key performance management tools, to deliver a 40% reduction in well costs over a two year cycle – equivalent to a saving of over $80m.
Hydrocarbon leaks in a three month period, reduced from 900 per year.
$3m
Our approach to performance drilling saved an Operator in excess of $3 million by driving operational improvement throughout a three well campaign.
%reduction 30 95% First year availability
against drilling industry average of 80-90%.
Our maintenance optimisation methodology and software solution, RTAMO™, typically yields a 30% reduction in planned maintenance costs.
0 SHAREHOLDERS
We are financially and politically independent and our services are truly impartial. Lloyd’s Register is wholly owned by the Lloyd’s Register Foundation, a UK charity dedicated to research and education in science and engineering.
N1 o
80
We are the no.1 provider of verification services to offshore operators in the UK by market share.
%
We inspect 80% of the world’s offshore oil rigs.
In fact, we’re the leading provider of independent risk management services to the drilling industry.
100 30
%
Outsourced well management projects.
Achieved 30% reservoir production improvement.
$12billion
We advised on over $12billion worth of assets evaluations over the past 12 months.
40
%
Our drilling audit and planning process identified cost savings of 40% for our middle east client.
Lloyd’s Register Group - Over 250 years of innovation - a snapshot of success 1760 Making a difference from the beginning
1930s Applying our expertise to energy
1940s Supporting the tranformation of the global energy infrastructure
1950s Helping to establish safe nuclear power generation
1960s Improving outcomes in the Oil & Gas sector
1970s Delivering a diverse energy mix
1980s Driving innovation
1990s Enhancing safety and productivity across the industry
2000s Driving improvements
2010s Making a real difference to modern communities
Now Shaping current and future industry
Lloyd’s Register is established and becomes the world’s first ship classification society. By the early 1880s, almost half of the world’s shipping is classed by Lloyd’s Register.
We diversify into the oil and gas industry, leveraging our expertise and experience in high risk capital intensive marine assets into critical energy infrastructure.
We continue to work on complex and largescale energy projects around the world, including a power station in Turkey and a hydroelectric scheme in Tasmania.
In 1953, we inspect Windscale nuclear power plant at Calder Hill, UK. At the opening ceremony in 1956, Lord Privy Seal described the project as “epoch-making”.
We work with BP on their first Canadian refinery at Ville d’Anjou and we publish the first classification notes for offshore platforms.
We support the emergence of renewable energy projects whilst also collaborating on the pioneering work to extract North Sea oil and gas. We gain accreditation to deliver ASME certification services to manufacturers worldwide.
We work on the Thames Barrier in London, a tidal surge barrier in Rotterdam and a 70-metre diameter wind generator.
Lloyd’s Register is now the leading classification society for LNG carriers. We are appointed the certifying authority for Hibernia, the world’s first iceberg resistant platform, help deliver the Sizewell B nuclear power plant and support the Hellenic Natural Gas Project.
We make a series of strategic acquisitions: Capstone (2005), ODS (2005), Human Engineering (2008), Celerity3 (2008), ModuSpec (2008), Scandpower (2010), WEST Engineering (2012).
From 2012, all shares in Lloyd’s Register Group are owned by Lloyd’s Register Foundation, a registered charity with a mission to protect life and property and advance transport and engineering education and research. We enhance our reservoir and subsea capability following acquisition of Senergy (2013). We deliver the first exploration well drilled in the Baltic Sea for more than 25 years. In 2015 we become the first foreign organisation to perform regulatory analyses for the Chinese offshore industry. In 2016, following the lifting of sanctions, we move back into Iran.
Lloyd’s Register continues to support innovative projects, such as Shell Prelude, the world’s first floating liquefied natural gas (FLNG) unit, providing classification and validation services. We continue to be a valued trusted advisor to industry and Government bodies, with agreements in place with the UK’s Oil and Gas Authority (OGA), State owned, Cyprus Hydrocarbons Company (CHC) and more.
THE SERVICES WE PROVIDE Lloyd’s Register’s services to the Oil & Gas sector Our world-class expertise across the Energy industry allows us to resolve and share solutions to the most complex situations, providing the confidence demanded by engineering principles, government regulations and industry codes and standards.
Refinery
Power grid
Fixed and floating MODU
Fixed unit
Land rig
FPS Survey vessel
Tankers & OSV
Pipeline
Well Engineering and Operations
Asset Integrity
We manage well project delivery with a full life cycle approach covering all aspects of well design, construction, intervention, integrity, life extension and abandonment. We help you develop cost-effective wells and realise your strategic commitments, by assisting in meeting your responsibilities to investors/partners and the government. You can outsource your entire well operations and rig management needs to us. In addition, we are also a recognised well operator by the UK authorities.
We apply our expertise in asset integrity to help you manage and improve the integrity, reliability, and performance of your operations and field, covering all asset types from wells, drill packages and platforms to FPSOs, pipelines, land rigs, production plants and pressurised fixed equipment.
reduce
Wells management
Subsea
Field development
We offer an unrivalled portfolio of services to the oil and gas, chemical and petrochemical industries, from reservoirs and pipelines to refineries, power stations and manufacturing.
Costs, risk, project and delays
increase
Drilling performance and project success
Delivering value: At the time of the project start up, our client had no well delivery process or procedure in place. They required the development of a bespoke set of procedures and policies that would meet their requirements and its obligations with the Vietnamese governing body legislations. We developed a bespoke well delivery process for the drilling of two deepwater (>1,500m) wells. Under one team, both wells were safely and successfully drilled, evaluated and abandoned under budget and ahead of schedule. There was < 6 % non-productive time (NPT) over the whole campaign duration with no delays over logistics, materials or personnel. Total time saving over both Wells was 50 days, total cost saving over both Wells was $39million.
Drilling Integrity Reservoir Services
Survey & GeoEngineering
We apply our expertise in geology, geophysics, petrophysics, and reservoir engineering to optimise your exploration and field development projects. • Development of subsurface reservoir models, field development plans, subsurface well location selection, and well design and engineering. • Asset evaluation services for acquisition and divestment support including hydrocarbon potential, risk, estimation of reserves and economic evaluations.
We provide technical assurance, engineering assessments and design, and geohazard assessments as well as project management services for exploration and development well sites, pipeline routes pipe-lay, subsea construction, inspection and rock placement. We help you optimise engineered solutions and the operational efficiency of offshore operations at every lifecycle stage through maximising the knowledge and value of seabed and subsurface survey, geophysical and geotechnical data.
reduce
Production cost per barrel
increase
Production and recovery
Delivering value: A field in the UKCS was a small discovery which appeared to be uneconomic. We worked closely with our client, to develop and accelerate an economic field development option. The development was a huge success and the field production has grossed more than $1.5billion from an investment of $75million.
reduce
Geohazard risk and survey costs
increase
On time project delivery
Delivering value: We project managed a site survey and geotechnical site investigation for a HD jackup rig site and then designed and managed a rock pad placement operation to enable use of the rig in otherwise unsuitable seabed soils.
We help you optimise your drilling operations, delivering integrity and competency assessments to project management and commissioning of new-built and refurbished rigs. Helping you reduce downtime by improving the reliability, safety and competitiveness of your drilling operation from individual rigs, contractors or the entire fleet.
reduce
Costs, risk and NPT
increase
Drilling performance, safety, reliability and uptime
Delivering value: The operational efficiency of assets were under scrutiny, so our client engaged us to perform Operational Integrity Assessments on 110 land rigs and 35 jack-up drilling units in Saudi Arabia. The results and recommendations which followed a thorough People, Systems and Equipment (PSE) assessment resulted in improved drilling operations. We identified 120+ improvement opportunities with a focus on 12 initiatives to yield $220million savings per year.
Our risk-based approach helps you optimise maintenance schedules and prioritise inspection activities based on the potential for failure versus traditional time-based inspection planning. We help determine the probability and consequences of critical equipment and structural failure whilst safely extending the life of your assets, helping you minimise risk and reduce costs.
reduce
Risk, failure, downtime, inspection and maintenance costs, and time
increase
Performance, reliability, uptime
Delivering value: Our client, an international refinery operator, was losing thousands of dollars in downtime carrying out essential maintenance for coke drums which had developed cracks and required repair. We developed a new procedure that reduced their shutdown time by 13 days and saved them over $10million.
Performance and Production Optimisation We apply our multi-disciplinary expertise in facilities, development, processes and subsea engineering and asset management to deliver solutions that optimise the performance of your operations in a safe and cost-effective manner. • Increase proven reserves and production rates through Enhanced Oil Recovery (EOR) techniques. • Ensure physical assets are designed and operated to avoid unnecessary downtime due to equipment or system failure, using condition monitoring, predictive forecasting and reliability-centred maintenance to improve reliability and availability of assets.
reduce
Production cost and NPT
increase
Production rate
Delivering value: We developed coupled geomechanical and sand failure models to determine the conditions of perforation failure for our client in a HPHT and sour gas environment in Pakistan. We advised on a safe, sand free perforating strategy. This process replaced the previous sand control solution (gravel packs) which suffered from massive skin due to reactive clays in the reservoir. All of the gravel packed wells failed, whilst sand production from the selectively perforated wells is non-existent to minimal. Our client estimated savings of over $10million.
Optimising your operations at every stage.
LICENSING
RESERVES/ EXPLORATION
DESIGN
BUILD
OPERATING AND MAINTENANCE
LIFE EXTENSION
L ATE LIFE
MANAGEMENT
DECOMMISSIONING
THE SERVICES WE PROVIDE
TECHNOLOGY AND INNOVATION
Risk Management
Transaction Advisory
Our risk management assessments and studies help you to achieve safe design and operation of assets through major hazard and risk control. We do this by identifying and analysing regulatory requirements, safety and environmental conditions, evaluating possible accidental events and major risks, including their causes and consequences. We help you to develop risk prevention and mitigation strategies and ensure optimum return from investments, by combining assessments with cost-benefit analysis.
We provide owners, operators and financial institutions with integrated technical and commercial advice for investment, divestment, borrowing and lending decision making. We offer reservoir valuation and reserves estimation, technical and operational due-diligence assessments and asset evaluations. We help to you minimise investment risk, avoid toxic investments, and increase knowledge and understanding of asset condition and reservoir potential, improving capital expenditure (CAPEX) and operating expense (OPEX) estimations.
reduce
Risk, incidents and downtime
increase
Safety and risk control
reduce
Non-beneficial deals and risk
increase
Informed decision making and accuracy
Delivering value: Our client was facing complaints from employees being affected by high noise exposure while on duty. We applied our engineering dynamics expertise and assessed the noise scenario in the asset and identified control measures at sources, propagation path and receiver which would help to mitigate the impact. A manning plan was assessed and recommendations made for reducing the exposure. This resulted in a list of actions to mitigate noise and the impact on hearing, thereby reducing the risk of people becoming deaf after long exposure time.
Delivering value: We provided a valuation for a client in its purchase of the remaining stakes in two Drillships, which it already partially owned but were still under construction at different locations around the world. We combined our technical and commercial expertise to provide a valuation based upon the difference between market values for completed assets and our assessment of the remaining costs to completion – this approach overcame the lack of any comparable market data for the valuation of partially completed assets.
Compliance & Verification
Software
Technological innovation drives economies forward, creates jobs and enhances lives.
We help you navigate government and industry standards, regulations and guidelines to ensure compliance. Our services include design appraisal, site survey, technology qualification and supply chain audit assurance and verification. To safe guard your operations we provide ongoing operational verification of safety critical elements.
Our leading software solutions help you manage and optimise your operations. From determining the amount of hydrocarbons in your reservoir, improving well construction and operational decision making to optimising the management of asset integrity and reliability.
At Lloyd’s Register, we understand the challenges you face operating in increasingly difficult conditions and unfamiliar environments which can present unprecedented technical challenges. That’s why, as an expert organisation with the skill to solve complex problems, we remain at the very forefront of technological innovation.
Our classification services and offshore rules will ensure your equipment meets international and national standards and is correctly classed.
reduce
In situations where the standards are not clearly defined, we work with you to apply the appropriate regulatory standards, your company policies and industry best practices.
Training
reduce
Risk, failure and reputational damage
increase
Regulatory compliance and safety
Delivering value: Our global client had assets in the Gulf of Mexico and needed to achieve and demonstrate regulatory compliance in accordance with U.S. Code of Federal Regulations 30 CFR 250. We provided drill pipe shear verification and well compatibility verification that the (BOP) was designed, tested, and maintained to perform under the maximum environmental and operational conditions.
Failure risk by 80% and maintenance costs by 30%
increase
Equipment reliability by 20% and accuracy
We provide regular, dedicated public courses in a wide range of disciplines including risk management, engineering and technical subjects, on a global basis as well as internal, tailored courses to match your company’s specific requirements. Risk and human error
reduce
increase
To meet those challenges, we continue to build on our worldwide research and development network. We have made major investments in two global technology
Lloyd’s Register Group
8,000+ Employees worldwide
centres (GTCs): one at the University of Southampton, a world-leading centre for maritime research. The other, at Singapore’s Nanyang Technological University, tackles the technical and systemic challenges that face the global energy sector, on and offshore. Through industry collaboration we will continue to drive the advanced knowledge, technologies, systems and solutions needed to promote safety and security in an increasingly complex world.
60,000+ Clients
250+ Year heritage
2
Global Technology Centres
Competence, safety and productivity
Image: LR’s Southampton Global Technology Centre
For more information: Lloyd’s Register Group Limited 71 Fenchurch Street London EC3M 4BS E oilandgas@ lr.org United Kingdom T +44 (0)1224 267400 W info.lr.org/decommissioning T +44 (0)20 7709 9166 F +44 (0)20 7423 2258 E oilandgas@lr.org www.lr.org/oilandgas
Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates. Lloyd’s Register Group Services Limited (Reg. no. 6193893) is a limited company registered in England and Wales. Registered office: 71 Fenchurch Street, London, EC3M 4BS, UK. A member of the Lloyd’s Register Group. © Lloyd’s Register Group Services Limited 2017.