Energy, Oil & Gas Issue 166 March 2019

Page 1

issue 166 MARCH

For a

better tomorrow

Neste’s ground-breaking decision to focus ON the production of sustainable solutions has resulted in its standing today as the world’s largest producer of renewable diesel refined from waste and residues

Sensible precautions

As the sanctions landscape becomes increasingly complicated, companies need to be sure they’re not breaking the rules

Opportunity knocks

Already possessing a reputation for world-class engineering, Scotland could become a centre of excellence for oil and gas decommissioning

News: World’s first fully automated LNG safety transfer system transforming lives in Jamaica

DESIGN. BUILD. CONNECT. Jan De Nul Group is a leading expert in dredging and marine construction activities, and provides services related to the installation of offshore wind farms and related subsea export cables and umbilicals. The combination of design and detailed engineering and all aspects of civil works, dredging and rock and marine installation enable Jan De Nul Group to offer a total package on an EPC basis.

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Editor Editors Chairman Andrew Schofield Editor Libbie Hammond - Assistant Editor Will Daynes Staff Writer Vladi Nikolov Art Editor Fleur Daniels Advertising Designer Fiona Jolliffe

With the theme ‘The Next 50 Years’ the event features some fascinating speakers, as well as extraordinary technology and pioneering innovation. Are you visiting or exhibiting?

Managing Director Joe Woolsgrove Operations Director Philip Monument Operations Manager Natalie Griffiths Sales Mark Cawston Theresa McDonald Gary Silk Web Sales Tim Eakins - Exclusive Features Darren Jolliffe - Independent Sales Dave King - Research Managers Ben Richell Kieran Shukri Editorial Researchers Wendy Russell Richard Saunders ­Office Manager/Advertisement Administrator Tracy Chynoweth Digital Subscriptions Iain Kidd - digital

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On with the show! With the 2019 Offshore Technology Conference (OTC) just a couple of months away as I write this, and this year being the event’s 50th Anniversary, it’s only right that all eyes are now starting to turn to Houston and what promises to be a landmark conference and exhibition. With the theme ‘The Next 50 Years’ the event features some fascinating speakers, as well as extraordinary technology and pioneering innovation. Are you visiting or exhibiting? I’d love to hear from you with some details and include your tech in our next issue of Energy, Oil & Gas! We can also help you with brochures or any marketing collateral for the show, so if you need any assistance, our studio would be happy to help.

T: +44 (0) 1603 274130

Energy, Oil & Gas Magazine


@EOG_magazine please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, and correct at time of writing, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.






There are many who now think that a shift to widespread use of hydrogen in many sectors is inevitable



Decommissioning activity in the North Sea is predicted to grow steadily and average £1.8bn per annum over the next decade

11 Olympus

The FlexoFORM™ scanner from Olympus has an array of advanced features and offers several advantages


12 News

Some of the recent developments within the oil and gas industry

14 Shale Oil

Maintaining a leadership position in production will require US shale oil developers to make changes to behaviour and capabilities

16 Sanctions

Having an understanding of the type of sanctions companies are potentially exposed to is a sensible precaution to avoid problems

18 OTC 2019 Preview


May sees the return of the Offshore Technology Conference, with this year’s event planned to be better than ever



16 2





22 DeepOcean UK Limited 26 Neste Oyj 32 Cross Country Infrastructure Services 38 Bahrain LNG

(Import Terminal Project)

42 Krampitz Tanksystem GmbH 38

44 WGP Group

42 44 ENERGY,oil&gas


Back to the future

Dr Ben Todd looks at what’s new in the area of using hydrogen for energy


ydrogen is neither a new molecule nor new to industry. But it’s emerging role in the energy system is new and businesses are waking up to the energy opportunities in hydrogen. The increasing influence of the global Hydrogen Council, with representation from global energy and manufacturing players, illustrates this. In the UK, much of the work is being supported by the Government’s Hydrogen Economy programme, bringing together the various strands of possibility for hydrogen into a coherent systems approach.

Low carbon hydrogen The big win for hydrogen is that in use it is zero carbon and low or zero in other emissions too, improving air quality. So, like electricity, the question is how to produce it in a way which is low carbon, and at sufficient scale to provide a meaningful contribution to global carbon emission reductions. Again, like electricity, there are many ways to make hydrogen, including chemical and biological routes. But there are two main approaches likely to dominate low-



carbon hydrogen production in both the short and the long term. The first is electrolysis, using electrical power to split water. If that electricity is renewable then you have low carbon hydrogen. But perhaps more importantly, there is an electricity network benefit for the use of electrolysis as an enabler of increased renewable penetration. Mopping up excess power on the grid and conversion to hydrogen is being explored as a route to addressing intermittency challenges of renewables. Unlike electricity, hydrogen can be stored at truly grid-scale, even for long periods of time, and transported to where it is needed in trucks or pipelines. The second production route is the more familiar steam reforming of methane. Looking ahead to large scale hydrogen production for energy, reforming is well known and relatively cheap. As the reforming reaction produces a clean stream of CO2, carbon capture is relatively straightforward, and so this potentially provides a cost-effective long-term route to low carbon hydrogen, provided carbon storage mechanisms are realised.


of the Government’s Hy4Heat programme, appliance manufacturers are developing boilers and other devices that can use 100 per cent hydrogen. A whole town conversion pilot is planned for in the next few years.


Greening industrial processes Hydrogen has been produced and used for decades in many parts of the oil, chemical and steel industries. So, if we can make it renewably, why not transform the carbon impact of these energy intensive processes? Several established industries are exploring just this. Shell is piloting a 10MW electrolyser to produce hydrogen for a refinery, and there are developments in steel and ammonia production. Fuel switching for energy intensive industries is an active area of exploration for the UK government’s programme.

Zero emission transport

Hydrogen for heat So, if low-carbon hydrogen production is possible, what are the new uses of hydrogen that will drive demand in the energy sector? The big one is heat, getting serious attention at the moment, not least as Government has realised how big a challenge it is to ‘decarbonise heat’. Hydrogen offers something conceptually simple in countries with an established gas grid – displacing methane with low-carbon hydrogen. Cue ‘Power-to-Gas’ – using renewable energy to make ‘green’ hydrogen for injection into the gas grid; which is being trialled in Germany and soon in the UK. The parallel methane reforming route, with sequestration of CO2, could provide the scale for long-term complete grid conversion to hydrogen. Practically, up to 20 per cent of the natural gas in pipelines can be replaced with hydrogen without any modification of end use appliances, and the recent Leeds H21 study showed that 100 per cent conversion is feasible. Gas networks are now looking at the implications and opportunities for hydrogen in the gas grid. Cadent is leading a significant project in the North West to explore the use of the gas network. As part

Transport has long been a key part of the strategy for hydrogen adoption, with fuel cell cars offering zero emissions and performance similar to conventional vehicles. Indeed, you could say that much of the recent interest in hydrogen was kicked off by the arrival of the Toyota Mirai on UK streets in 2016. But the short-term development of hydrogen for transport is more likely to be in heavy-duty vehicles. With city air-quality high on the political agenda, zero emission buses are a priority for public transport now and delivery trucks and refuse collection vehicles will be next. These vehicles with high duty-cycles and high capacity requirements are hard to address with current battery technology. Fleets of back-to-base vehicles make the development of refuelling infrastructure straightforward and the high-volume use makes hydrogen supply close to commercial even today. With these new opportunities emerging there are many who now think that a shift to widespread use of hydrogen in many sectors is inevitable. The question now is not if, but when, and more importantly, who. Who will step up and lead this transformation?

Arcola Energy Dr Ben Todd is Managing Director of fuel cell and hydrogen system engineering business Arcola Energy. Working as specialist engineers and Tier 1 suppliers to vehicle manufacturers, Arcola Energy is a leading developer of zeroemission buses and heavy-duty vehicles. Arcola Energy also designs and deploys energy systems integrating hydrogen storage and fuel cell power generation. For further information please visit:




orecasts suggest that 100 platforms (and 7500 km of pipelines) will be decommissioned over the next decade in the North Sea, giving the UK supply chain industry the chance to develop world-class decommissioning opportunities. Decommissioning activity in the North Sea is predicted to grow steadily and average ÂŁ1.8 billion per annum over the next decade. Globally it is forecast that



approximately 600 platforms will be decommissioned over the next five years. Perhaps conscious of previous missed chances, both the UK and Scottish governments have been taking steps to help convert this opportunity. Notably, the Scottish government launched the ÂŁ5 million Decommissioning Challenge Fund (DCF) in February 2017 with the intention of enhancing the




Should Scotland grasp the opportunity to become a ‘centre of excellence’ for oil and gas decommissioning? By Nathan Swankie

capability of the Scottish supply chain, with funding and assistance available for projects that will contribute to making Scotland a world leader in decommissioning. This was followed by an announcement in the 2018 Autumn Budget, with Chancellor Philip Hammond issuing a call for evidence on plans to make Scotland a global decommissioning hub. Most recently, the National Decommissioning Centre

(NDC) located in Newburgh officially opened its doors in January 2019. This ÂŁ38 million world leading research and development centre is a partnership between the University of Aberdeen and the Oil and Gas Technology Centre. The NDC is intended to share and advance knowledge in areas such as decommissioning technologies, environmental assessment and predictive modelling, and economics. The focus on each



topic is transforming the traditional approaches to decommissioning and driving late life extension and decommissioning cost reduction.

Current challenges facing the decommissioning industry Decommissioning is a technically challenging process, and the North Sea is the first region in the world to undertake it at scale in deep waters. Planning a decommissioning project can take several years of leadin work, which includes undertaking the necessary safety, environmental and engineering studies to fully understand the scope of the project and how it should be executed, engagement with stakeholders, seeking the necessary approvals, and selecting contractors. The massive structures that require decommissioning were designed for structural integrity, not ease of removal. A further complication is that much of the infrastructure is inter-connected, so careful sequencing is required to avoid adjacent assets either being decommissioned prematurely or requiring additional infrastructure to remain operational.



Perhaps the biggest challenge is finding a way to reduce decommissioning costs. In 2016, the Oil and Gas Authority challenged the industry to reduce offshore decommissioning costs by 35 per cent (based on an estimate of ÂŁ59 billion up to 2050).

Developing existing capabilities to benefit the oil and gas decommissioning industry Scotland is well positioned to support the oil and gas decommissioning industry. Decommissioning requires a similar skill set to that needed for oil and gas exploration and production. Indeed, Scottish firms can provide capability and expertise across the full spectrum of needs, including consultancy, project management, cleaning, topsides preparation, subsea, pipelines, wells, ports infrastructure and waste management. There are already examples of informal and formal supply chain collaborations emerging to support the decommissioning industry.

Scotland’s global reputation as an engineering hub will help maximise investment


Aberdeen is truly a global oil and gas hub and Scotland is Europe’s oil capital. Dozens of multi-nationals and hundreds of Scottish/UK supply chain companies can be found in a small geographic area. Across Scotland we have over 2000 supply chain companies supporting the oil and gas industry. Scottish expertise has delivered innovation for the oil and gas industry for decades, and it makes sense to tap into this prowess. The opening of the NDC is a perfect illustration of how Scottish skills and experience have attracted investment. Furthermore, oil and gas decommissioning is becoming a truly global business and offers opportunities well beyond the North Sea. We are already seeing an increase in global trade and using our expertise to train others in emerging markets. Thought leadership, such as the collaboration between Robert Gordon University and the University of Aberdeen to launch a Masters in oil and gas decommissioning, will continue to enhance our international reputation.

Targeting innovation Well plugging and abandonment represents

approximately 50 per cent of the overall forecast cost of decommissioning, so it’s no surprise that this is an area of focus for innovation. The Oil & Gas Technology Centre has recently invested £1.3 million in four projects aiming to transform well plugging and abandonment. The Oil and Gas Innovation Centre (OGIC) has also supported this part of the decommissioning industry through matching two companies with Robert Gordon and Glasgow University respectively, specifically with the aim of developing ways to lower well plugging and abandonment costs. As an emergent industry, there is considerable scope for innovation and disruption. The development of the ‘Pioneering Spirit’ by Allseas for the single-lift of very large topsides is an obvious example. Over the longer term, transformational change is likely to include both innovative cutting techniques and a reduced reliance on Heavy Lift Vessels. One area of increasing focus is the circular economy. Whilst the industry has achieved outstanding recycling rates (primarily of steel), there is a desire to see some of the infrastructure moved up the waste hierarchy and value chain through finding ways to either re-use or re-purpose. There are clear synergies with carbon capture and storage, should this technology ever be developed at scale. Finally, in step with the digital revolution transforming our world, digital technologies are being deployed to advance the decommissioning practice. Examples include the use of drones by Cyberhawk to undertake pre-decommissioning asset inspections, concepts such as ‘True Digital Twin’, which combines both a digital copy of a structure and performance data, enabling prediction of the structural health of an asset, and a DCF & Decom North Sea (DNS) sponsored project to develop a digital decommissioning knowledge hub, designed to share knowledge, guidance, research and practice.

Ramboll Nathan Swankie is a Principal at Ramboll. Ramboll is a leading engineering, design and consultancy company founded in Denmark in 1945. With 300 offices in 35 countries, Ramboll combines local experience with a global knowledgebase constantly striving to achieve inspiring and exacting solutions that make a genuine difference to clients, end-users, and society. Ramboll works across a range of markets, including Environment & Health, Energy, Buildings and Transport. For further information please visit:



EX Series Flaw Detectors Versatility and Peace of Mind in Explosive Atmospheres

Helps Keep You Safer: Flammable gases and vapours can create explosive atmospheres. If you work in an environment where an explosive atmosphere might be present, an EX series instrument can help keep you safe. The Right Tools for the Job: Three of our most popular instruments are now available in versions that conform to the requirements of the ATEX directive*—the EPOCH® 650 flaw detector, BondMaster® 600 multimode bond tester, and the NORTEC® 600 eddy current flaw detector. Reliability and Functionality You Expect: These EX units offer the same leading-edge flaw detection capabilities and functionality you’ve come to expect, in a version that conforms to the ATEX directive. Be confident in your inspection results, no matter where you work, without the hassle and cost of a hot work permit.

*Assembly is qualified for use in explosive atmosphere conditions conforming to ATEX Directive 2014/34/EDU for Group II, Category 3, Zone 2 (CE Ex II 3 G Ex ic IIA T4 Gc IP54). Not for use in mines; for use in areas where flammable material (gas group IIA) is present abnormally as a vapor or mist.

Olympus, EPOCH, BondMaster, and NORTEC are registered trademarks of Olympus Corporation.

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The power of flexibility


lympus has built its name and recognition on the back of offering scientific solutions based on innovative products and services that anticipate the evolving needs, and exceed the expectations of professionals from various different industry segments. Its industrial solutions range from materials science microscopes and industrial videoscopes, to non-destructive testing technology and x-ray analysers. These are widely used for quality control, inspection and measurement applications, and help to contribute to product quality, and the safety of infrastructure and facilities in a number of fields. In the oil and gas industry, for example, where safety is the priority and unplanned downtime is costly, a robust nondestructive testing programme is important to help maintain the safety of people and the environment, and to keep pipelines operating efficiently. To meet these requirements, inspectors typically use x-ray fluorescence analysers to verify that pipelines are made from the proper alloy, and ultrasonic and phased array flaw detectors to check pipelines and welds for flaws and corrosion. In October 2018, Olympus introduced a new phased array ultrasonic testing (PAUT) solution for the reliable inspection of pipe elbows – the FlexoFORM™ scanner. Incorporating Olympus’ proven flexible array probe technology with an innovative water wedge designed to conform to the inner and outer curved surfaces of pipe elbows, the FlexoFORM™ scanner can acquire corrosion mapping data for a complete picture of a pipe elbow’s integrity. Thanks to a number of advanced features, this scanner solution offers several advantages: 100 per cent pipe elbow coverage: FlexoFORM™ water wedges feature a foam gasket that contours to the elbow’s inner and outer curves, helping ensure a reliable signal of the entire circumference of pipes 4.5 in. OD and up. Reduces preparation time: An encoder maps the scan axis of the pipe, and an indexing button is located right on the

scanner to increment the index axis. Drawing lines is optional, depending on the level of precision required. Acquires high-resolution data (1 mm × 1 mm): Olympus’ advanced imaging technology provides a comprehensive image of the overall condition of the pipe elbow and facilitates the analysis of flaws, such as corrosion pitting and mid-wall lamination, inclusions, and remaining wall thickness. Smoother and faster scanning: Minimal operator effort is required. Magnetic wheels are positioned to support the FlexoFORM™ scanner so that it naturally follows the centerline of the pipe elbow. Cost effective and versatile: The same scanner and phased array probe are used to cover the entire range of diameters. Only the water wedge needs to be changed to adapt to a different diameter. The FlexoFORM™ scanner is used with an OmniScan® MX2 or SX flaw detector to acquire and save data in order to detect and measure different types of damage or anomalies. The high-density data combined with the multiple views available directly in the flaw detector or through OmniPC™ software provide clear images of the pipe material’s condition and make data interpretation faster and easier. As the entire surface of the elbow is covered, the FlexoFORM™ solution is less dependent on the operator and provides an improved probability of detection as compared to simple spot checking. The scan direction is encoded, and an indexing button is positioned directly on the scanner to perform the index increment in the second axis to create 2D surface maps within the same file. The FlexoFORM™ scanner can also inspect pipes in the longitudinal direction. This configuration is especially useful for smaller pipes or when the region of interest is concentrated within a specific sector around the pipe. In these situations, inspection in the longitudinal axis can be more appropriate than scanning in the circumferential direction with a flat phased array probe. The FlexoFORM scanner can also be a powerful tool for the inspection of water walls in power generation boilers. For further information please visit:



In Brief Water-based fuel launch Australian-Israeli company Electriq~Global and Dutch company Eleqtec have entered into an agreement to launch Electriq~Global’s water-based fuel technology in the Netherlands. Together they plan to launch Electriq~Fuel’s recycling plants, and introduce eMobility applications for trucks, barges and mobile generators. Comprised of 60% water,

Powering Jamaica

Electriq~Fuel is a game-changer in zero-emissions energy. When compared to green energy storage solutions like lithium-ion batteries or compressed hydrogen, Electriq~Global achieves a greater range at a lower cost.

Project refinancing Cubico Sustainable Investments has completed the refinancing of 17 onshore wind and solar PV projects in the UK. All projects are fully operational and reached commercial operations between 2013-2016. The portfolio is comprised of a mixture of ROC accredited and Feed-in Tariff projects. The total amount of nonrecourse, long-term project finance debt raised was £258m with a £14m debt service reserve facility.

Baltic States ahead In a recently published EU report, which showed the Netherlands and the UK to be the least energy efficient EU member states in terms of renewables, the same findings showed that the Baltic States of Lithuania, Latvia, and Estonia make up over 30% of the EU countries that have already met their 2020 renewable energy targets. Sun Investment Group, (SIG), a Lithuanian-Polish investment firm with one the biggest shares of the solar energy market in Poland believes that the Baltic States’ drive for self-determination both in terms of energy and seeking closer ties with the EU is why they have managed to outperform longer-standing EU member states.



Signum Technology Group company KLAW LNG, the world-leading specialist in the design and engineering of ship-to-ship and ship-to-shore LNG transfer systems, has transformed the lives of the people of Montego Bay, Jamaica by delivering the world’s first fully automated LNG safety transfer system to enable a reliable flow of LNG to this community. Working in partnership with Exida and Siemens for client Fortress Energy, KLAW LNG designed, engineered and manufactured this ground-breaking Safety Integrity Level and Safety Instrumented System (SILSIS). “It is no exaggeration to say that the cost of the power previously [which was fuelled by diesel] was crippling to the island’s economy and up until now they had no practical alternative. SILSIS means they now have a reliable and cost-effective energy source that is delivered with the highest safety levels of any LNG transfer system on the planet,” commented Julian Fairman, KLAW LNGs Technical Manager – Control Systems. “SILSIS in Montego Bay is a genuinely ground-breaking innovation that has had an enormous positive impact on the lives of local people and it is something that we are very proud of indeed,” added Jeff Vile, Signum Technology’s Sales and Compliance Director. “It is remarkable on a number of different levels – in addition to being the world’s first fully-automated LNG transfer system and the world’s first SIL2 compliant LNG transfer system, it is also the first LNG land terminal in the world that uses a Flexible Hose Transfer System and the first LNG transfer system in Jamaica.”

Landmark celebration ScottishPower Renewables has been celebrating the creation of the ‘first blade’ for the East Anglia ONE windfarm. The 75-metre long blades are being made at Siemens Gamesa’s Hull factory demonstrating ScottishPower Renewables’ commitment to UK content. Production of the first wind turbine blade for the East Anglia ONE offshore windfarm represents a significant milestone for the project located 43km off the Suffolk coast. Inspection of the blade, and sign-off by the East Anglia ONE project team, was completed on 7th February. With the blade’s comparable in length to the wingspan of an Airbus A380, this feat of engineering forms part of the major contract between leading wind energy producer ScottishPower Renewables and Siemens Gamesa to manufacture and install the turbines for the East Anglia ONE Offshore Windfarm. The £2.5 billion East Anglia ONE project will see 102 Siemens Gamesa turbines deployed, each with a capacity of seven megawatts. This announcement follows ScottishPower Renewables’ £25 million investment in the Port of Lowestoft with the construction of a start-of-the-art operations and maintenance building. The base, at Associated British Ports’ Hamilton Dock, Lowestoft, will see 100 full-time employees manage the day-to-day operations and maintenance activities for East Anglia ONE.

News $110m contracts Global drilling and engineering contractor KCA Deutag’s land drilling operation has won new contracts and contract extensions worth approximately $110m. These contracts are for onshore drilling in the Middle East, Russia and Africa. In the Middle East, KCAD has been successful in winning a total of seven years of contract extensions for five heavy rigs operating in Oman, as well as signing a contract with a new client in Oman for one of its 2000hp rigs. This is for a fixed term of six months. In Russia, KCAD’s land operation has been awarded a new drilling

Further support

contract for a 1000hp rig with one of the country’s leading integrated oil companies. The contract has a

Babcock has been awarded a four-year framework contract for brownfield fabrication and modification projects on the BW Catcher, a Floating Production Storage and Offloading (FPSO) vessel owned by BW Offshore. The scope of the contract includes engineering, onshore fabrication and offshore modifications on the Catcher FPSO. BW Catcher is a newly deployed FPSO in the North Sea, which achieved first oil late in 2017. It has an oil storage capacity of 650,000 barrels, with a processing capacity of 60,000 barrels per day. With a design life of 20 years without dry docking, it can be moored using a submerged turret production at an average water depth of 90 metres. BW Catcher is on a seven-year fixed term and 18 years of options contract with Premier Oil and will be deployed to the Catcher field in Central North Sea, UK. Sean Donaldson, Babcock’s Managing Director of Energy and Marine, and the Rosyth site, said: “The framework contract taps into Babcock’s experience of supporting specialist maritime vessels from our Rosyth facility using our expert teams. BW Offshore is a company which we have had an enduring relationship with over the years and we are delighted to be supporting them with the Catcher FPSO.”

fixed term of one year. In Nigeria one of KCAD’s 700hp rigs has won a one year contract to carry out a workover program, with a further one year extension option.


Additionally, a second rig has won a short-term contract for a threemonth programme. This 1500hp rig will be operating in an area of Nigeria where the company will see increasing activity. This is the rig’s second contract in quick succession in this location. KCAD has also had some success in Algeria where it was awarded a short-term contract extension for

New hope for North Sea

one of its 1500hp Speed rigs.

Geologists at the University of Aberdeen have discovered a huge swathe of the North Sea left unexplored for oil and gas because of so-called ‘phantom’ volcanoes they have proven don’t exist. The 7000 sq km area, known as the Rattray Volcanic Province, was previously thought to contain the remains of three volcanoes, however, a study led by Dr Nick Schofield and PhD student Ailsa Quirie from the University’s School of Geosciences, with colleagues from HeriotWatt University and the University of Adelaide, has overturned this view. Dr Schofield explained: “Building on methods we have used to look at prospectivity in volcanics elsewhere in the UKCS, we combined 3D seismic data donated to us by Petroleum Geo-Services (PGS) with well data to take a fresh look at the Rattray Volcanic Province. “What we found has completely overturned decades of accepted knowledge. Previously, it was believed the area contained old magma chambers - the plumbing systems of three Jurassic-era volcanoes – that effectively ruled out the potential for oil and gas discoveries. “However, our study has shown these volcanoes never existed at all, and that the fireworks preceding the North Sea’s attempt to create an ocean with Europe came via a series of lava fissures. “Essentially this gives us back a huge amount of gross rock volume that we never knew existed, in one of the world’s most prolific regions for oil and gas production.”



Collaborate to


US shale oil: How the US can become a lead exporter by updating business practices. By Bob Peterson


he phenomenal development of shale oil and gas production in the US is a result of innovation, solid infrastructure and easy access to capital markets. Shale production grew from nothing to four million barrels per day from 2008 to 2014, and is expected to increase by another four million per day by 2022. This growth has been largely in the Permian basin in Texas and New Mexico. By 2022, the US’ production in the Permian alone will achieve parity with that of large OPEC producing countries such as Kuwait and Nigeria. Because of this dramatic increase, the US has become an oil exporter, having moved some two million barrels per day in 2018 – but to what markets, and at what price? Maintaining a leadership position in production will require developers to make significant changes in their behavior and capabilities. They must consider and manage a number of complex issues, including



establishing global markets, finding new partners, collaborating more effectively, and attracting new sources of capital.

Traditional independents and partnerships Independents are just that: ‘independent,’ specifically from owning refining and marketing operations. As a result, these companies sell their oil at the wellhead and move on to the next drilling campaign. It is a simple world, but a risky one as the US becomes a major exporter and competition rises in global markets such as Latin America and the Pacific Rim. In this environment, the ‘drill, sell direct at the wellhead, repeat’ behaviour will need to change if independents want to maximise steady cash flow. They will need to comprehend and exploit global markets; just as Canadian heavy oil producers have done with excess heavy production. For example, in order to cover

Shale oil

shortages in input by Reliance, an Indian oil and gas refiner, Husky and Devon has entered into long-term oil supply arrangements, in exchange for a slight price premium on the heavy oil index.

Regional pricing spreads’ effect on profitability Under the traditional model of selling oil at the wellhead, independent producers have become accustomed to success without factoring in fluctuations in the global markets. Those days are gone, as regional pricing spreads will certainly impact producers’ ability to stay predictably profitable. Consider the widening gap between the two primary benchmarks for the pricing of oil, West Texas Intermediate (WTI) and Brent light, a North Sea-based index. Since the advent of shale, WTI has traded at a discount to Brent as steep as $10/barrel (2011–2014), which largely reflects the lack of ‘take-away infrastructure’ as production has ramped up in North America. Independents can stay ahead of the pricing fray by identifying and establishing strategies for not only reducing that discount, but also realising premiums for their oil in some cases. These players will need to develop new export-shipping capacity at ports such as Brownsville, Texas to alleviate the growing bottlenecks at Houston and Corpus Christie (also in Texas). Additionally, new, dedicated pipelines for ultra-light Delaware basin production can avoid blending with lower-quality crude and command premium pricing. Finally, independent operators with sophisticated trading capabilities can take advantage of short-term WTI pricing variations by timing hedge puts and calls with ‘on-demand’ well completions – similar to the strategy that Shell is currently following.

Case example: The Permian basin According to our recent research on production growth challenges in the Permian basin, more than 41,000 wells, at a total capital cost of approximately $300 billion, are planned over the next five years. The demands on infrastructure will be tremendous. Trucking, roads, water usage, power consumption, and sand to frack the wells, as well as community services such as housing, schools, and hospitals, will all be necessary to sustain rapid development. We estimate that about one million barrels per day in production growth are at risk due to the inability of the local infrastructure to support daily operations. As one example, the Wall Street Journal estimates that as activity increases, 120,000 truckloads of sand will be hauled within the Permian on a road system that was built to handle less than 1000. Considering that this figure does not account for the water and chemicals that

will also need to be transported in and out of the area, this is clearly unsustainable. It offers an opportunity for operators to pool capital and planning to build a robust road system, which would also reduce trucking demand by ten to 20 per cent. While building out the Permian requires collaboration, it also calls for a massive influx of capital. This is perhaps the greatest challenge in the basin. To provide potential solutions, operators have to think more creatively about funding structured projects. Pioneer’s proposed power generation scheme offers a strong example in this case. The company seeks to pool operator electric power demand as an incentive to infrastructure investors. In return those investors, such as insurance companies, retirement funds and family offices, would receive a 20-year, low-risk, annuity-like return. Similar projects have already become commonplace in the pipeline space, but these practices must expand to areas such as water management, community infrastructure, roads, and transportation to enable sustainable development.

Conclusion The development of shale oil sources in the US, such as the Permian, is a challenge unlike any yet encountered in the global oil industry: to grow production to exceed that of all oil-exporting countries except Saudi Arabia and Russia in less than five years. It is uncertain whether this challenge can be met. It demands that US independents go against their nature by collaborating in key areas. It requires establishing new global markets, building new partnerships to a level not yet seen in the sector, and giving up control of traditionally competitive capabilities in order to attract the necessary investment capital. Forward-thinking players will change the way they do business, giving rise to a new ecosystem that will be able to capitalise on current opportunities and create new avenues for growth.

Arthur D. LITTLE Bob Peterson works at Arthur D. Little. Founded in 1886, Arthur D. Little is the world’s first management consultancy. It is a recognised expert in companies that want to combine strategy, innovation and transformation in technology-intensive and converging industries. Arthur D. Little navigates clients through changing markets and ecosystems, helping them to take the lead and shape in this transformation. For further information please visit:




precautions Brett Hillis offers some guidance on how to navigate an increasingly complex sanctions landscape


anctions regimes in two of the world’s most important markets have grown more varied and more complex in recent years. US and EU sanctions have become out-of-step, and in the case of Iran, have become directly contradictory. Companies face an uncertain political environment in which to trade across borders – having to navigate these regimes, with increased uncertainties raised by the US’ withdrawal from the JCPOA, and with the potential problems caused by Brexit. While companies are increasingly using comprehensive contractual wording to mitigate their exposure to sanctions breaches, finding wording that covers all bases can be challenging. Having an understanding of the type of sanctions companies are



potentially exposed to is a sensible precaution to avoid falling foul of any regime.

Russia Whereas the US and EU were initially in sync regarding sanctions against Russia (imposed following the annexation of Crimea and in response to the ensuing conflict in Eastern Ukraine) the two have diverged over time. While the EU approach has remained relatively static – partially due to European reliance on Russia for its energy security, and the need for unanimity in the Council in order to make changes – the US has expanded its “secondary sanctions” regime, which potentially applies to non-US companies. Companies now risk becoming subject


to sanctions by carrying out ‘significant transactions’ directly or indirectly with Specially Designated Nationals (SDNs). Of particular note to the energy, oil and gas sectors, President Trump is legally required to impose sanctions on any person that ‘knowingly makes a significant investment’ in special Russian crude oil projects. This includes deepwater extraction, Russian Arctic exploration and Russian shale projects. Additionally, President Trump is entitled (albeit he has not yet done so) to impose secondary sanctions on non-US persons investing in enhancing Russia’s energy export pipelines, or providing goods, services or technology to support Russian pipes. Further, the potential exposure of energy, oil and gas companies to secondary sanctions increased in April 2018 when the US Office of Foreign Assets Control (OFAC) designated numerous persons and entities – including seven oligarchs and 12 companies they own or control – as SDNs. As some of these companies and individuals are highly active and important to the industry, the imposition of sanctions restricts trading options for companies in the market. Some pressure has recently been alleviated with OFAC’s removal of some companies from the SDN list, however companies are still advised to remain vigilant that they do not become entangled inadvertently in expansive US sanctions.

Iran Since President Trump’s May 2018 decision to re-impose sanctions on Iran, including secondary sanctions, trade prospects with the oil-producing country have become both more limited and more complex. In response, the EU added certain US sanctions laws on Iran to the list of ‘blocked legislation’ under the EU Blocking Regulation, hence ‘protecting’ EU companies from the extraterritorial effects of these laws. This puts companies in a ‘catch-22’ situation – either risk severe penalties under the US regime if they do business with Iran, or breach the EU Blocking Regulation if they comply with the US regime. That said, in practice, there are relatively few instances where a company has been subject to enforcement action under the EU Blocking Regulation. In this connection, we have been advising companies on contractual obligations to help them address the risks arising from the different regimes. It is notable that France, Germany and the UK have established the ‘Instrument for Supporting Trade Exchanges SPV’ (INSTEX) to facilitate payment for exports from Iran, theoretically providing a mechanism via which EU companies could continue trading. The operation of INSTEX has yet to be tried and tested and as such, it remains to be seen whether it will effectively mitigate the ‘catch-22’ situation companies face.

Recent developments With regard to Russia, companies may take comfort in the fact that, on 27 January 2019, OFAC delisted Rusal, EN+ and EuroSibEnego from its SDN list, after oligarch Oleg Deripaska reduced his direct and indirect shareholding stake in the companies, and severed his control. While Mr Deripaska himself remains an SDN, trade with and investments in these influential companies is now permissible under the US sanctions regime. An added positive is that it was supported and lobbied for by the EU, demonstrating a level of co-operation across the Atlantic that had appeared to be missing in recent years. However, in the US political climate, in which an investigation is ongoing into potential interference by Russia in the 2016 Presidential Election, and in which the Democratic Party has recently taken control of the House of Representatives, the potential of additional sanctions has increased. In the Senate, a large 57-vote bipartisan coalition formed to oppose the lifting of sanctions on the Deripaska-affiliated companies – only three votes short of the required supermajority to block such a move. Finally, in Venezuela, OFAC has designated staterun petroleum company Petróleos de Venezuela, S.A. (PdVSA) as an SDN, prohibiting US persons from engaging in virtually all transactions with the company – a company with access to the world’s largest proven oil reserves. Further, US dollars cannot be used to transact with PdVSA, as is the case with any other SDN, and non-US persons risk exposure to the US “secondary sanctions” regime if they transact directly or indirectly with PdVSA. It is understood that the EU is currently reviewing their sanctions regime against Venezuela, in particular against certain individuals.

Reed Smith Brett Hillis is Partner at Reed Smith. Reed Smith is a global relationship law firm with more than 1700 lawyers in 28 offices throughout the United States, Europe, Asia and the Middle East. Founded in 1877, the firm represents leading international businesses, from Fortune 100 corporations to mid-market and emerging enterprises. Its lawyers provide litigation and other dispute resolution services in multi-jurisdictional and other high-stakes matters; deliver regulatory counsel; and execute the full range of strategic domestic and cross-border transactions. For further information please visit:



50 years of displaying

the offshore’s best

The Offshore Technology Conference (OTC) is the world’s principal event for the development of offshore resources that attracts exhibiting companies and visitors from around the globe


he offshore industry is at the threshold of a brave new world where digitalisation, automation, and machine learning reign. Significant transformations to the way the sector functions seem inevitable and there is no better place to obtain an in-depth understanding of how the biggest names in the field are preparing for the new era than the Offshore Technology Conference (OTC). Celebrating its 50th anniversary in 2019, the OTC established its reputation of a must-go event long ago, precisely because of its ability to line up a starstudded panel of keynote speakers operating at the highest possible level of the energy industry. This year’s exhibition will kick off on the morning of 6 May



(Monday) under the theme: ‘OTC: The Next 50 Years’ and will feature senior figures from some of the biggest organisations working in offshore. We find among the confirmed speakers at the event Total’s Exploration & Production President Arnaud Breuillac; TechnipFMC’s CEO Doug Pferdehirt; Susan Dio, who is Chairman and President of BP America; EVP and COO of Equinor Jannicke Nilsson; as well as Maria Claudia Borras, the Oilfield Services President & CEO at Baker Hughes. In addition, the world of academia will also be represented in the like of Scott Tinker, Director of the Bureau of Economic Geology at the University of Texas. Finally, appearing as a special guest speaker will be Malcolm Frank – EVP of Strategy and Marketing for

OTC 2019 Preview

All images © OTC

Cognizant and co-author of What to Do When Machines Do Everything. Replete with technical presentations, networking events, and breakfasts and luncheons, the four days of OTC 2019 will also feature a series of panels where recognised industry leaders will broach some of the hottest topics across the industry. Starting on Monday, a discussion of the impact venture capital, mergers and acquisitions, and innovators have had on the advancement of technologies within the energy industry, will take place at 14:30 under the title ‘Venture Capital Investment Driving Innovation in Offshore Deepwater.’ On the following day, a panel will assemble to hash out the rapid growth in wind energy activities offshore

the US. Comprised of offshore wind energy project developers and supporting organisations, the panel will discuss the technological, commercial, and regulatory challenges this new industry faces from 14:00 until 16:30 on 7 May. Then, on the morning of the conference’s final day (9 May), two sessions on digitalisation will take place simultaneously. The first one, titled ‘Digitalization and New Technology: Safety in the 21st Century’ will be presented by the Center for Offshore Safety, while the second one will build on prior successful panel sessions in 2017 and 2018, which set the stage of the world of big data and its potential to revolutionise the offshore industry. This year’s theme – ‘Big Data Successful Applications of Digital Transformation and Future Advances’ will showcase specific solutions for added value from digital technologies, its main aim being to demonstrate the industry’s acceptance of digital transformation, strong evidence of insights and knowledge gained, specific value-add realised, and future trends. Committed to providing a platform for industry professionals from all corners of the world to share their experiences, this year’s edition of the OTC will be the inauguration of a newly-established programme called ‘Around the World Series.’ Scheduled to take place in the first three days of the conference (between 6 May and 8 May), the series will give global industry leaders the chance to discuss new licencing and business opportunities, and present recently-introduced technologies. As of mid-February, representatives from





OTC 2019 Preview

Australia, Norway, Mexico, France, the UK, Israel, Canada, and Guyana have been booked in to deliver insight on what is new in their respective countries. For centuries in the Western civilisation, the academic world has been looked up to as a cluster of buzzing hubs of innovation and fresh and forward thinking. It is the place where the boldest projects are set in motion to challenge the conventions of the industry and very often charter a better course for it to follow. In order to give exposure to universities’ latest advancements, the OTC will once again run its already traditional University R&D Showcase Programme that will enable institutions of higher education to share with exhibition attendees their current and planned R&D projects that are relevant to offshore technology. The application process to participate in this year’s University R&D Showcase may now be closed, but it is nonetheless well worth sharing the thoughts of previous years’ exhibitors to highlight the value of being part of the programme. Professor Zenon Medina-Cetina of the Departments of Civil & Petroleum Engineering at the Texas A&M University emphasised the networking benefits the event has brought for the institution: “It provided an opportunity to get first-hand feedback and true interests for collaboration.” A similar sentiment was expressed by John Marsh, Director of Operations at The Richard E. Smalley Institute for Nanoscale Science and Technology at Rice University. “Rice University has participated in the University R&D Showcase since its inception and each year, we are able to highlight the late-breaking work of several of our top graduate students. To me, that is the most important thing: sharing the excitement of

discovery with the people who are going to make the highest and best use of Rice research.” It is estimated that since 1969, the OTC has made an economic impact in Houston worth $3 billion. In 2018 alone, the event’s venue – NRG Park – welcomed over 2000 exhibiting companies from more than 40 countries. A total of 22 topical breakfasts and luncheons, 11 panels, and more than 350 technical presentations were held, and over 61,000 visitors attended the conference. All these figures mean to reveal the virtually endless opportunities for exhibitors and attendees alike to mingle with each other, learn from the best, and set up possibly invaluable business connections with peers from all over the world. Furthermore, as this will be the OTC’s Golden Anniversary, the 2019 edition of the conference will be historic in itself, which provides another incentive to everyone who wishes to be involved. Just under three months away, there is still time to become part of OTC’s history. Book away!

OTC 2019 Venue: NRG Park, Houston, TX Dates: 6-9 May 2019 Exhibition hours: Monday, 6 May 09:00 – 17:30 Tuesday, 7 May 09:00 – 17:30 Wednesday, 8 May 09:00 – 17:30 Thursday, 9 May 09:00 – 14:00 For further information please visit:




in the deep

Formed in May 2011, following the successful restructuring of its former parent company, DeepOcean Group Holding (DeepOcean) offers a breadth of subsea services, from survey and seabed mapping, subsea installation and seabed intervention, to inspection, maintenance and repair, and decommissioning. This portfolio, coupled with a fleet of owned and controlled specialised equipment and multi-purpose support spreads, allows DeepOcean to bundle its subsea services to deliver cost-effective, tailored solutions to meet its clients’ needs. Today, DeepOcean operates in the oil and



gas, offshore renewables and electrical power transmission industries. Across these industry sectors, it provides both fully managed EPIC contract installation project services, as well as being able to take on a sub-contractor role for individual work packages on major installation projects. DeepOcean’s experienced project teams provide fully managed, safe and efficient services for the installation of subsea modular structures, umbilicals, risers, flexibles, HVAC and HVDC cables, and fiber optic cables. Furthermore, it has access to both owned and chartered DPII class vessels, while its owned equipment ranges from work


DeepOcean UK Limited

for the global telecommunications market, it later diversified and added cable lay and trenching services for the oil and gas, offshore renewables and interconnectors industries.

Sophisticated offering DeepOcean UK Limited offers survey and seabed-mapping services, including seabed mapping, route survey, pipeline inspection, lay support, and cable survey; and subsea installation services, including cable lay, flexible product and umbilical, life of field seismic systems, subsea structures, and diverless subsea installation; and seabed intervention services, including trenching, ploughing, and excavation and dredging. It also provides decommissioning services, including pre-and post survey, cutting and recovery, pipeline removal by burial, subsea structures removal, towing and transport, and disposal. In addition, it offers inspection, maintenance, and repair services, including structure inspection, cable inspection, remotely operated tool operations, scale squeeze operations, subsea systems

ESCO Hydra UK Ltd. We have been designing and supplying bespoke cutting chains to DeepOcean since 2014. The chains have a unique tooling system fitted, whereby both rotating and non-rotating cutting tools can be used on the same chain, enabling continued performance through varying conditions without the need to re-fit different chains. The heavy-duty, heat-treated, forged chain links provide exceptional wear resistance in the arduous conditions when trenching. ESCO wishes DeepOcean further success on future projects and look forward to our continued support.

class and observation class ROVs, module handling systems, carousel systems, subsea ploughs, jet trenching ROVs and mechanical trenchers. To support its operations, DeepOcean has its own marine base facilities in the UK, Norway and the Netherlands, as well as mobilisation capacities in Mexico, Ghana and Dubai. DeepOcean UK Limited (also often referred to as DO 1 UK Ltd.), formerly known as CTC Marine Projects Ltd., was established in 1993. While the initial core of the business was the provision of fibre optic cable lay and seabed intervention solutions ENERGY,oil&gas


Coda Octopus Coda Octopus has been a global leader and specialist in underwater technologies for the past 25 years, supplying the world’s only real-time 3D sonar technology, the Echoscope®. The Echoscope provides the 3D real time imaging and visualisation of subsea targets, including in zero visibility water conditions. DeepOcean has used the Echoscope technology on a number of offshore wind energy installation projects in Europe for the real-time visualisation of cable pull-ins, cable touchdown points, and pre- and post-lay surveys of the seabed. The Echoscope has revolutionised subsea operations, and we continue to operate as the leading experts on subsea sonar visualisation.



maintenance, subsea systems repair, pipeline and cable repair, wind turbine scour survey and monitoring, commissioning, and module replacement. At the heart of DeepOcean UK Limited is its state-of-the-art, purpose-built asset and project support facility, DeepOcean Offshore Services Base – Blyth. Opened in September 2018, the facility has been crated to support the planning, preparation, mobilisation and maintenance of DeepOcean’s sophisticated subsea trenching assets and vessel fleet. At 1000 square metres, the facility includes covered storage space and six internal work bays, with access to 10Te and 15Te capacity overhead cranes. It also features two heavy lift quays with deep-water berths of 8.5 metres, year-round access for large vessels, and crane support up to 250Te. Alongside the quays are 1800 square metres of secure external storage, an external asset wash down area, and an asset calibration pit. By supporting around-the-clock activities, and with immediate and easy marine access, Offshore Service Base – Blyth will improve

DeepOcean’s ability for rapid deployment of high sea state and repair solutions to the North Sea. As well as providing for a number of new jobs in the local area, the facility also now houses DeepOcean UK Limited’s Asset Management Team, which relocated from its head office in Darlington, County Durham. Upon the facility’s official opening in September 2018, Pierre Boyde, Managing Director of cable installation and trenching at DeepOcean provided the following comments: “The opening of DeepOcean’s new offshore base is a significant demonstration of our confidence in our capabilities to comprehensively serve the offshore industry and the importance of North East England to the successful provision of our services. We are pleased to be working with the Port of Blyth, a rapidly expanding offshore energy base with a good reputation for servicing the sector.”

Significant improvement It was then one month on from the opening of its new Blyth facility, in October 2018,


that DeepOcean UK Limited returned to spotlight as it announced a “very significant improvement” in its financial figures after slashing losses and growing its turnover by approximately a third. In the 12-month period to 31 December 2017, the company recorded revenues of £152.5 million, up 30 per cent on the previous year. In a strategic report accompanying the results, the company detailed how it has suffered in recent years against the backdrop of the decline in global oil prices, and how it has worked to rebalance its portfolio away from oil and gas, and into other offshore energy sectors, a move that has proven to be extremely beneficial. This move has seen the company become involved in a number of important projects such as the Race Bank wind farm and the installation of high voltage connections between the UK and Belgium. As oil prices improve, it is expected that an increase in offshore drilling activity and offshore construction will bring with it increased demand for the company’s services,

DeepOcean UK Limited

PanGeo Subsea

and DeepOcean UK Limited already has in place an end-of-year backlog of £141.8 million, and forecasts that future backlog projects will be completed at profitable levels. While it continues to work predominantly on projects located around the UK and on European contracts in the North Sea, the company also has its sights set on the possibility of increasing its scope of work overseas in the not-too-distant future.

PanGeo Subsea is proud to support DeepOcean in its interarray cable trenching and cable installation work at Hornsea Project One. PanGeo Subsea has been providing cable depth of burial services to DeepOcean for several years now and are pleased to see that our Sub Bottom Imager (SBI) continues to be used as DeepOcean’s technology of choice for accurate cable burial depth confirmation. We look forward to continuing our long and successful relationship with DeepOcean on the next phase of Hornsea Offshore Wind Farm and on many other future projects.

DeepOcean UK Limited ............................................ Products: Subsea project services and technologies



For a better

tomorrow Founded in January 1948, Neste Corporation (Neste) was created as a means of securing Finland’s oil supply. With the idea of building an oil refinery in Finland first being muted in the mid1940s, this vision was realised in 1957 with the commissioning of a facility in the city



of Naantali that was capable of producing 800,000 tonnes per annum of petroleum products. By 1962, this capacity had increased to 2.5 million tonnes per annum, at the same time that Neste was successfully starting to expand into the petrochemical industry. Such


Neste Oyj

Peter Vanacker

What personally inspired me to move to Neste was its enthusiasm to help create a healthier, cleaner planet for our children. What also impressed me was the drive and motivation of every employee of the business to be a part of this journey, and how this passion helps to form the DNA of Neste

was the growing demand for its products in Finland that a second refinery was commissioned in Porvoo in 1965, and in the years that followed, the company’s business interests also grew to include natural gas, exploration and production, and even a retail service station brand. “Right from the very

beginning, Neste has been willing and able to invest heavily in its operations. In doing so, and by partnering formidable industry experience with environmental values, it was able to create some of Europe’s finest refineries. For example, we launched leadfree and sulphur-free fuels decades ago – and ENERGY,oil&gas





Neste Oyj

we were the first company in the world to do so,” begins Neste Corporation President and CEO, Peter Vanacker.

Leading authority Such achievements became something of a precursor to a major transformation of the business that began in 2005, when the decision was made to switch Neste’s focus to the production of renewable and sustainable solutions. This global range of products and services would allow its customers to reduce their carbon footprint by combining highquality and low-emission renewable products and oil products to tailor-made solutions. “As you can probably imagine, there were few people within the industry at the time that believed that a regional oil refinery company could become a global leader in renewable products,” Peter reveals. “For our part, we immediately set about focusing on the production of cleaner, higher quality products, and building production capacity and capabilities for such products in not only Finland, but also in Rotterdam and Singapore. This has resulted in Neste becoming the world’s largest producer of renewable diesel refined from waste and residues, as well as a leading authority when it comes to bringing renewable solutions to the aviation, plastics, polymers and chemicals industries.” Peter himself began his role as President and CEO at the beginning of November 2018, having previously worked as the CEO and MD of CABB Group, a leading fine and specialty chemicals company, and having held various executive positions at Bayer. “What personally inspired me to move to Neste was its enthusiasm to help create a healthier, cleaner planet for our children,” he details. “What also impressed me was the drive and motivation of every employee of the business to be a part of this journey, and how this passion helps to form the DNA of Neste. “My main priority will be to maintain the growth that Neste has experienced in recent years, while we continue to work towards increasing the positive impact our activities have on our climate. One of the ways we will do so is by moving into new bio-based and recyclable feeds for use in our production processes. We have established a target of preventing nine million tonnes of greenhouse gas emissions being emitted by our customers in 2022, and where we stand ENERGY,oil&gas


Clariant Clariant is a leading global specialty chemicals company whose favourite solutions combine high customer value with outstanding innovation and sustainability. One of the Swiss group’s top products is Tonsil, an ingeniously enhanced adsorbent used to purify oils and fats for over a century. In biofuels production, Tonsil has proven extremely effective at removing impurities from renewable feedstock during pre-treatment and protecting the catalysts necessary for its transformation, so that customers can rely on stable processes despite uneven feedstock quality. Leveraging the long chemical tradition they stand for, innovative purposes like these are just what Clariant’s experts live for: using their knowledge to protect what’s precious to all of us.



today we feel that we are in a position to set even more ambitious targets in the coming years.” In its home country of Finland, Neste today possesses an oil refining capacity of approximately 15 million tonnes per annum, giving it a strong market position in the Baltic Sea region, and now boasts 2.7 million tonnes per annum of renewable product production capacity. With the removal of any remaining bottlenecks, this is due to increase to 3.0 million tonnes by 2020, while expansion of capacity in international markets will bring it close to 4.5 million tonnes per annum by 2022. In addition to producing renewable diesel, most of Neste’s renewable product refineries are able to produce renewable aviation fuel and raw materials for various polymers and chemicals. “In recent years, we have spent a great deal of time and effort developing renewable jet fuel as we believe it is one of the most viable solutions for emission reductions in the world of aviation,” Peter adds. “During 2018, we have been

ramping up production of this business stream, culminating in Neste making the single biggest investment in its history in December, committing 1.4 billion euros to the extension of its renewable product overall capacity in Singapore by up to 1.3 million tonnes per annum. As well as strengthening our leading global position in the production of renewable products made from waste and residues, our investment will also improve our capability to enter into new markets, for example the rapidly growing aviation market – one which is crying out for sustainable solutions to meet its emissions reductions targets.” Such has been the inspired success of Neste that, for two years running now, it has found itself placed in the top three of the Corporate Knights Global 100 Most Sustainable Corporations list. Marking the thirteenth consecutive year of inclusion, Neste has been included continuously on the list longer than any other energy company in the world. “We are delighted about our inclusion among the 100 most sustainable


Neste Oyj

companies in the world and utterly grateful and honored to have been selected in the top three for the second consecutive time,” Peter stated upon release of the 2019 list. “Such a top ranking can never be taken for granted as all the world’s best performing companies aim higher and improve their performance year after year. Our ranking shows that Neste has continued to develop its sustainability in the right direction.”

Working in partnership The work of the company does not stop there, however, what with approximately 1500 of its total workforce of 5500 directly employed within its R&D and technology departments diligently looking for new breakthroughs in renewable products. “Among the many different things we are doing at present, we are putting increasing resources into the possibility of using waste and residue raw materials to create bio plastics, or even introducing waste plastics as a raw material element itself. This latter development also falls into the work our people are doing to improve feedstock flexibility,” Peter states. “In the meantime, we are also embracing partnerships with other key industry players such as Clariant, a world leader in specialty chemicals.” This particular partnership, announced in November 2018, will happen in two phases. The first will see the two companies start by replacing fossil-based ethylene and propylene used in Clariant’s high-quality hot-melt adhesives, with monomers derived from renewable feedstock. The second phase will then see the two develop other

sustainable additive solutions derived from renewable raw materials for plastics and coatings applications. It is believed that this will enable other sustainabilityfocused brand owners, such as furniture producers, sporting goods manufacturers, and electronics and automotive companies to increase their own bio-based offering, and thus reduce their respective climate emissions. “Going forward, I believe that it is very important that we continue to expand our global reach in order to meet our goal of helping as many companies and brand owners to meet their mandates and aspirations as it relates to climate emissions,” Peter goes on to say. “These efforts are at the forefront of our thoughts every single day, after all it is climate change that we feel will define the future of the energy sector and drive the demand for sustainable solutions. For our part, Neste will remain steadfast in its commitment to making a positive impact on the environment as we introduce more bio-based and renewable feeds into our own processes and products.”

Neste Oyj ............................................ Products: Renewable fuels



Expanding across countries From day one of its existence, what has now become known as Cross Country Infrastructure Services, had in its mind a clear expansion strategy that would take the company across multiple geographies in the US and Canada, and develop its expertise in a wide range of infrastructure-related market segments. “Our story began in June 2013 when a private equity investor called Odyssey



Investment Partners, alongside a group of smaller independent investors, invested in Cross Country Pipeline Supply – a leading supplier of materials, tools, equipment, and parts for the pipeline construction industry. At the time, about two-third of the business was coming from equipment rental to pipeline contractors and the rest from selling supplies to the same contractors. Then, within the next year and a half, we


Cross Country Infrastructure Services

performed several other acquisitions that allowed us to grow significantly,� CEO Gerald Plescia introduces to us the origins of the business. By the end of 2013, Cross Country had also finalised the acquisition of Power Associates International (PAI), whose specialism lies in renting equipment for the integrity testing of both new and used pipeline installations. It was in 2015,

however, when a resounding statement of intent was sent through the industry, as Cross Country purchased four more businesses, thus entering new market fields and establishing a visible geographical footprint throughout North America, including making its first foray into Canada. Gerry discusses: “These transactions helped us add new competences to our ENERGY,oil&gas


offering. For example, we developed an integrity services capability, as well as infrastructure rental expertise, courtesy of the successful acquisition of Stone Pump & Trench, which led us to broaden our catalogue with items like dewatering pumps, trench plates, and trench safety equipment. Acquisition is a key part of our growth strategy, but we continue to broaden



our equipment categories as well. CCIS recently signed a distribution agreement with SCAIP, a premier equipment provider manufacturing industry leading pipeline and agricultural equipment. CCIS will be the exclusive distributor within North, Central and South America effectively enhancing our ability to support our clients with new sales, as well as rental. “In parallel with introducing new product lines to our portfolio, we also opened up a number of new locations. In a very short space of time, we were able to grow from one major hub operation in Denver, CO, to five such hubs, setting up central facilities in Houston, TX; Eighty Four, PA; Midland, TX; and Edmonton in Canada. In addition, we have opened other smaller sites surrounding these hubs and now all of these locations make up a well-connected network, which enables us to serve our customers efficiently.”

Strategic acquisitions Epitomising the model Cross Country is trying to establish, is the company’s growth in Canada. Gerry explains: “Our idea is to be able to put all our capabilities together into every market we target, so that we can provide an unrivalled offering to potential customers there. In Canada, we made one relatively small acquisition, but by being able to offer equipment that had not been seen before in that area, we elicited fantastic customer response, which helped us grow our turnover from about five times our original base revenue in a four year period.” In fact, Cross Country’s Canadian operations tell us only a tiny bit of the success story the company has turned into in just over half a decade. Similar rapid growth can be observed in the other geographies where it is present, all due to the integration of the newly-added types of equipment into the entity’s product ranges. “We have certainly begun winning more and more business once we have assimilated all the acquisitions into our work. For instance, if an individual customer was only renting equipment from us in the past, they have already started buying supplies, or renting pumps or hydrostatic testing units, because we can now act as a one-stop shop for them. Speaking in real figures, 2017 saw us achieve a 70 per cent organic growth in revenue, and another 40 per cent organic growth in 2018 over 2017,” Gerry enthuses. Considered a stepping stone along the


Cross Country Infrastructure Services

Gorman-Rupp Pumps

path that will take it to the glamour of the Western US, Cross Country’s acquisition of Nevada-based Rain2Day has added further variation to the business’ expertise in the construction and civils realm. “It gave us the chance to enrich our dewatering proposition on the pump rental

side of the business,” Gerry comments. “Furthermore, it works well with our ambition to penetrate the municipal, civil and infrastructure markets deeper, as we can now participate not only in water removal from pipelines, but a multitude of infrastructure projects.”

When you specify Gorman-Rupp, you benefit from worldwide service centers, knowledgeable engineers and a selection of nearly 3000 pumps. GormanRupp has been manufacturing pumps and pumping systems since 1933. Pump models offered by GormanRupp include self-priming centrifugal, standard centrifugal, submersible, rotary gear and diaphragm pumps. GormanRupp has over one million square feet of the most modern manufacturing and warehousing facilities found throughout the world. As we continue to provide pumps and pumping systems to customers around the globe, we never lose sight of the original philosophy that started our company: INNOVATION, IMPROVEMENT AND SUPERIOR PRODUCTS.



Pipeline Inspection Company Pipeline Inspection Company (PIC), manufacturer of SPY® equipment, has been a leading brand of coating inspection, jeep meter and pig tracking equipment serving the oil and gas industry for 65 years. All of its SPY® brand products are highly regarded by many in the oil and gas industry as the best in class. Not only does PIC offer superior manufactured equipment and accessories, but it also offers the kind of solid expertise and support for its equipment that should be expected from a leading manufacturer for the oil and gas industry.



Throughout its short but colourful history, Cross Country has been involved in a multitude of high-profile projects, such as the Dakota Access Pipeline (DAPL) and the Rover Pipeline. “The latter,” Gerry contends, “is a particularly good example that shows our involvement in every single phase of the scheme. We were actually the only supplier that extended across all segments of that project, clearly demonstrating the breadth of our capabilities.”

site clearing and water removal. After that, we rented specialty equipment for the actual laying of the pipe. Next came the backfilling stage of the project for which we provided padding buckets and other similar equipment to backfill the installation. Lastly, when the pipe had to be tested for its integrity, we were ready with pig launchers, pig receivers, flow metres, and hydrostatic testing units, which we offered to the testing contractors,” Gerry reviews Cross Country’s involvement in the programme.

Comprehensive services

Further diversification

The Rover pipeline is 713 miles long and transports up to 3.25 billion cubic feet per day of domestically-produced natural gas from the Marcellus and Utica Shale production areas to markets across the US, as well as into the Union Gas Dawn Storage Hub in Ontario, Canada for redistribution back into the US or into the Canadian market. “We started by supplying part of the equipment required for the processes of

Taking into account the host of infrastructure developments that are still needed in the US and Canada, he is confident that the company will be kept busy in the coming years. “From a pipeline perspective, there are significant projects that are waiting to be set in motion. For example, a lot of planning has taken place for the transportation of oil and gas from core development sites to new facilities near ports. This includes connecting


Cross Country Infrastructure Services

Cross Country Infrastructure Services ............................................ Services: Equipment rental, sales and custom fabrication, supply sales, integrity rentals and service

Central and Northern Alberta with the Vancouver area in British Columbia. Also, there is relatively inexpensive production of oil and gas in the Permian Basin that needs to be moved to the Texas Gulf Coast for LNG processing and exporting, which is producing large diameter pipeline projects. “All in all, I foresee continued growth in the future. We are convinced that our business model can be applied to other industries that are very attractive to us and we will also be looking to build upon our expertise with new acquisitions, some of which may even happen in the next couple of months,” Gerry divulges Cross Country’s aspirations to join new businesses to the organisation. “The key theme in the long-term will be the further diversification of the business. When we started about five years ago, pipeline rental and supply sales comprised 95 per cent of our work. Today, it represents 65 per cent of our business, while integrity and infrastructure rental has grown to 30 per cent, and the rest comes from services and equipment sales. Five years from now, we should be even more balanced, having maintained our core competencies, while also including new products and services to our offering,” he sums up. ENERGY,oil&gas


Energising the economy For around 50 years, Bahrain has enjoyed the benefits of relatively inexpensive domestic gas production from the Khuff formation. Khuff gas is used extensively for the generation of power and water, for industrial processes and for enhanced oil recovery. However, Khuff gas production is set to peak in the near future, while at the same time gas demand continues to rise. The development of supplementary domestic gas resources is being investigated, but these supplementary supplies have uncertainties in terms of timing and rate of delivery. As a result, the Bahrain LNG Import Terminal (the Terminal) is being developed adjacent to the Khalifa bin Salman Port (KBSP) facility, with the goal of providing additional security of supply of gas to Bahraini gas consumers. “One of the key goals the project has set itself to achieve is to ensure the supply of natural gas during peak periods, thus complementing the existing energy infrastructure in Bahrain, and guaranteeing that no shortages will occur, as demand grows,” explains Terminal Project



Director Tony Bingham. “This flexibility of the terminal will enable the Government to use it only when they need to bring in extra gas and we expect that it will come in particularly handy two or three years after it has started operating commercially, due to requirements growing gradually.” Bahrain LNG WLL has been granted a 20-year concession to develop, build and operate the Terminal for the National Oil and Gas Authority of Bahrain (NOGA) and the facility is designed for 40 years of continuous natural gas delivery operations. The shareholders of Bahrain LNG are nogaholding (30 per cent), Teekay LNG Partners (30 per cent), Gulf Investment Corporation (24 per cent) and Samsung C&T (16 per cent). A spokesman from Bahrain LNG gave some more details about the facilities. “The Terminal consists of an offshore facility with floating storage and includes a regasification unit mounted on a regasification platform adjacent to the floating storage jetty. The Terminal also has an onshore facility, which includes nitrogen


Bahrain LNG (Import Terminal Project)

ballasting, pressure control and measurement. The LNG storage capacity is 173,400m3 and gas produced in the Terminal will be supplied into the Bahraini gas distribution network.” He continued: “The terminal contains facilities for berthing and unloading LNG ships of between 125,000 and 266,000m3 capacity, storage of LNG in the floating storage unit (FSU) ‘Bahrain Spirit’ (unloading will be carried out on an across the jetty basis), LNG regasification (at a rate of up to 800 mmscfd) and injection of gas into the distribution network. The facilities have been designed to operate safely and reliably over a wide operating range to provide security of supply and flexibility. The configuration of the Terminal, including an offshore jetty with two berths and regasification facilities with a separate FSU, is rare but not unique and the main elements making up the facilities are tried and tested.” The new-build FSU, Bahrain Spirit, owned by Teekay, was delivered in the second half of 2018, and was briefly subcontracted and used to transport LNG in Asia. Once the Terminal is complete, LNG will be delivered via carrier ships, stored in the FSU and then turned back into natural gas using sea water to warm the LNG. Tony gave some extra insight into this process and the engineering behind it: “Once the LNG is turned into natural gas, it will be transferred in a buried pipeline to shore. There is a facility onshore in which the nitrogen is injected into the regasified LNG supply to get it down to the right calorific value and then the resulting gas mixture is fed into the gas distribution network. In the construction of the pipeline, we made extensive use of a method called horizontal directional drilling (HDD), which allowed us to run the pipeline up to 28 metres underground underneath the port causeway and for about 2.5 kilometres horizontally from the onshore receiving facility across the inner port area from where it runs to the Hidd metering station where it is tied to the existing gas network. By employing this practice, we were able to complete the pipeline installation works in a shorter time frame without the need for subsea trenching of the inner port or onshore trenching of the causeway, which would have impacted the only road between Bahrain and the Container Terminal – a busy vein between the Kingdom and the rest of the world.” At the time of writing, the construction of the Bahrain LNG Import Terminal is 99 per cent complete, with 2018 being a year of intensive development that saw the project progress considerably. Alongside the delivery of the

pipeline Tony has just discussed, a number of key milestones across the various facilities were also reached last year. At the start of April, the dredging works were completed to ensure the required water depth was achieved at the jetty berths, in a turning circle for LNG ships, and in the access channel. Two months later, the final Accropode – a concrete block designed to resist the action of waves on breakwaters and coastal structures – was placed in the Terminal breakwater, helping to ensure the protection of the offshore facilities and the floating assets. In parallel with the offshore activities, the majority of the civil works regarding the multitude of onshore buildings was completed. Following that was the arrival of sizable



Global Process Systems Global Process Systems (GPS) is a world leader in oil & gas processing solutions. We have recently undertaken the EPC Subcontract of the 7300Te Bahrain LNG Regasification Topside Module. Detailed engineering and procurement were executed from our Head Office in Dubai, with fabrication undertaken in a South East Asian yard in the presence of a large GPS management team. GPS has a long history of supplying engineering services and process equipment directly to global oil majors and international contractors. Our dynamic and responsive team will work with you to develop a bespoke solution to meet your process, operational, budget, and schedule requirements.



equipment to form the Nitrogen Production Facility (NPF) in April and since then, integration works have been in place to tie the equipment packages together. During the second half of 2018, the Regasification Platform module sailed to Bahrain from its construction yard in Thailand. The module was rolled out onto a barge using heavy lift low loaders and then the barge itself was towed to a deep-water anchorage offshore Thailand and floated onto a heavy lift vessel ready for piggyback transportation to Bahrain. The vessel arrived in Bahrain in September and was installed on top of the offshore jacket structure that had been built in South Korea and delivered to Bahrain earlier in the year. To cap it all off, the end of 2018 marked the successful delivery of the FSU’s first cargo, which was delivered to Japan with the FSU acting as an LNG ship. “When the Terminal is not in use, the FSU will be able to leave it and go trading,” Tony explains. With much of the preparation and construction now complete, the next stage of the project is to finish pre-commissioning and

to start to introduce LNG into the Terminal for gassing up and cooling down the facilities and to complete commissioning. The spokesman from NOGA noted that the LNG needed for commissioning and testing is being procured by NOGA in two parts, in line with Bahrain LNG’s indicated schedule. “This involves a part cargo, which has already been delivered on a FOB basis to the Bahrain Spirit, and which was intended to be used for gassing up and cooling down the terminal, and an ex-cargo ship for the remainder of commissioning and testing,” he stated. He continued with some details on how significant the Terminal is to the wider Bahraini economy: “Natural gas is a very important energy resource in the Kingdom of Bahrain. Gas is used for power and water production, by industrial users and in oil production. The largest demand comes from the industrial sector with over 80 per cent of industrial gas demand being from three principal consumers: the ALBA aluminium smelter, the Bahrain Petroleum refinery and the Gulf Petrochemicals Company. The next largest sector is power and water production with the vast majority of power


Bahrain LNG (Import Terminal Project)

produced in Bahrain being produced using gas. Finally, gas is used in the oil production sector to assist the production of hydrocarbon liquids. “The main effect of the completion of the terminal will be an enhancement of security of supply of gas, which will help to maintain Bahrain’s status as a reliable and secure place in which to live and from which to operate businesses. The Terminal will also provide local jobs both directly and indirectly through service providers.” NOGA is also looking forward to being involved in the future expansion of the LNG market. “The supply of LNG is continuing to grow and there is still a lot of potential as demonstrated by the number of new LNG projects that are in various stages of planning,” the spokesman commented. “This growth in LNG supply, particularly from places such as Australia and the US, is facilitating more flexible trading terms, shorter contract periods, the entry of new participants and greater competition in the industry. As a future consumer of LNG, the Kingdom of Bahrain welcomes the further development of a global market in LNG and

increasing competition in supply. “Furthermore, we believe that a link to the Saudi Arabian gas network could provide the Terminal with additional exciting opportunities in the future, and we are supportive of the development of a GCC gas grid.” With ambitious aims for the future of the Bahrain LNG Terminal project, NOGA is looking forward to the successful entry of the Terminal into its commercial operation phase. The focus is now fully directed at performing the required commissioning works and facilitating the transition into operations. Important scopes are to be executed to ensure that the terminal is safely commissioned and supplying energy to the Kingdom of Bahrain. 2019 promises to be an exciting year of development for the Bahrain LNG Import Terminal Project.

Bahrain LNG (Import Terminal Project) ........................................................................ Services: Developing a major LNG receiving and regasification terminal in Bahrain

SICK AG Intelligent sensor and system solutions from SICK deliver data that leads to cleaner processes and higher efficiencies in production, processing, storage, transport, and distribution of natural gas. From wellhead to burner tip, from crude to final product – it is often crucial to determine the volume and quality of hydrocarbons, to monitor toxic and corrosive substances in process streams and on emission stacks, or, to detect and prevent explosion hazards. The huge solution range allows reliable measuring even under the most rigorous operating conditions. Flow metering systems from SICK incorporate leading ultrasonic metering technology and are delivered as customised turnkey solutions.



Tank commanders In 1990, Mr.Friedemann Krampitz founded the company KRAMPITZ Tanksystem GmbH to actively promote his concept of a new generation of steel storage tanks. He proposed that by using rectangular/cubicle tanks, instead of the traditional cylindrical tanks, he could improve the amount of liquid stored in the same footprint by using the ‘corners’. In general, he could increase the storage capacity by 20 per cent with the same footprint. From the very beginning, KRAMPITZ focused on the creation of non-pressurised steel tanks, recognising that the industry prefers to make long-lasting investments in the highest quality products, that offer the longest durability. Having convinced the market of the viability of Friedemann’s idea and obtained all the required certificates, KRAMPITZ then made the next step forward and introduced double walled tanks in 1994. With detailed static calculations, a unique manufacturing process and via numerous tests, the company was able to prove to the authorities that double walled tanks were safe for the environment. At that time, most installations used single wall tanks. An additional drip pan, or any other type of containment below the tank, was



required so that, in the event that corrosion or an accident caused a leakage at the tank, the contents could not drain into the soil/ground, with devastating environmental consequences. Also, big tanks were normally buried in the ground, whereas KRAMPITZ tanks are certified as above ground storage tanks. Thanks to the vision and determination of Friedemann and subsequent members of the Krampitz family, today KRAMPITZ is the leading manufacturer worldwide of cubicle tanks for any kind of fuel and other liquid as per DIN 6601. Even though the company’s major focus remains on diesel and hydrocarbon fuels, KRAMPITZ nonpressurised tanks are also used to store any kind of liquids with a maximum density of 1.2 kg/ltr. The business manufactures tanks from as small as 100 ltr. up to large storage tanks of 96,000 ltr., all made from either mild steel (SS235JR) or stainless steel. All single walled tanks are also available as double walled tanks. Additionally, KRAMPITZ offers double walled tanks in ISO-Standard sizes of 10”, 20” and 40”, with 20” and 40” also in HC design. For easy handling and transportation those ISO-tanks can be supplied with a CSCcertification from DNV-GL. It is also possible


KRAMPITZ Tanksystem GmbH

to split these tanks into up to three chambers for different liquids, which means that only one single tank installation may be needed, bringing investment, installation cost and space advantages.

German quality KRAMPITZ tanks can be installed inside or outdoors, can be insulated, can be equipped with tank heaters and are designed to meet almost all earthquake-zone-requirements worldwide. It is also possible to group a number of tanks, creating an automated tank farm with a centralised dispensing and filling point, for example. On top of that, KRAMPITZ ISO-container tanks can be delivered with a specially certified design so that they can be stapled up to three tanks high. Therefore, large volumes can be stored, even if only a small installation area is available. Having achieved these major goals in storage technology, KRAMPITZ maintained its momentum, and continued with its path of innovation. Over the years, the business increased its portfolio, and using existing tank know-how, it was able develop new products, such as its CEN-transport tanks in 1999, which come with a BAM certificate, or its mobile fuel stations, based on 20” and 40” ISO-HC tank containers, which have several niches in which items such as dispensers, diesel GenSets and pumps can be installed. The ability to offer the tanks with up to three chambers allows the operator to fill vehicles with diesel, gasoline and AdBlue from a single tank installation, for instance. In a single-lift design, these mobile fuel stations can be placed at any location on simple strip foundations, connect to electricity (or use a built-in diesel generator), be filled and immediately start dispensing to cars, buses, trucks or any other equipment that needs fuel. As we enter the early months of 2019, KRAMPITZ is still a family-owned company, which manufactures more than 2500 fully welded tanks per year. Offering German quality, ISO 9001 certification, a registered and certified welding shop, and is certified by the German water environmental authority, KRAMPITZ also holds several patents on storage tank technology. Its tanks and mobile fuel stations can be found all over the world, and are used in industries including power, mining, small airfields, chemicals, machinery, petrochemicals, small harbours and fuel distribution.

Its customers return time and again to buy products from a company that changed the tank world, and with nearly three decades of experience in the manufacturing of tanks, remains dedicated to innovation, the latest technology and exemplary levels of customer service. The KRAMPITZ name guarantees the highest quality, security, safety and product design – more than 35,000 manufactured units represent the trust of a wide variety of customers from around the world.

KRAMPITZ Tanksystem GmbH ............................................ Products: Manufacturer of steel storage and transport tanks



Exploration and beyond ‘Exploration and Beyond...’ is a tagline that captures perfectly the vast operational expertise possessed by WGP Group (WGP) – a marine geophysical services company, whose bespoke project management capabilities and knowledge of geophysics have made it a reputable partner throughout the global upstream oil and gas industry. Having operated in the market for 25 years, WGP is a proven leader in the exploration sector, boasting a significant role in a number of key discoveries of new hydrocarbon reserves. Further to this, the company has developed production related technologies as a speciality, providing contemporary services to the industry to increase the value and output of active reservoirs.



Driven by modern technology and supporting new methods, WGP has been actively involved in a large number of seismic projects, thus keeping its position at the forefront of the industry. WGP’s mission is to deliver bespoke operational solutions, the demand for which is anticipated to grow immensely in the future as exploration continues to move into ever more challenging frontiers. WGP’s strength lies in its core of vast technical knowledge and operational experience coupled with an in-depth comprehension and adherence to the requirements of the industry. This has helped the company to establish itself as a reliable business partner and has resulted in the


WGP Group

We are very pleased to be part of Equinor’s commitment to PRM as a means to manage and improve overall recovery from Johan Svedrup. The contract demonstrates full confidence in the technique and the responsible attitude Equinor maintains in operating their assets

successful transformation of its clients’ ideas into safe and achievable operations. 2018 proved to be an eventful year for WGP. In July, it was awarded the permanent reservoir monitoring acquisition contract for Johan Svedrup Field. The Equinor-operated field, which is one of the five largest oil fields on the Norwegian continental shelf, will make use of a new containerised seismic source system that is being designed, built, and commissioned by WGP. The system in question can be configured for dualor triple-source operations and features swift mobilisation and demobilisation to accommodate the variable demands in timing and scope of developing oilfields. The Sverdrup system is the sixth generation

of portable source designed and built by WGP. Per Christian Grytnes, CEO of Magseis Fairfield, understands the value WGP brought to its recent acquisition of Fairfield Seismic Technologies. “With more than 15 years of experience, WGP is known for operational excellence and project execution around PRM (permanent reservoir management). Their technology will be crucial to our ability to help our customers realize the full potential of their reservoirs.” WGP’s CTO, Terry Hibben also expressed his satisfaction with the commencement of the contract, saying: “We are very pleased to be part of Equinor’s commitment to PRM as a means to manage and improve overall recovery from Johan Svedrup. The contract ENERGY,oil&gas



demonstrates full confidence in the technique and the responsible attitude Equinor maintains in operating their assets.” The contract award for Johan Svedrup Field came on the back of the ongoing work WGP is delivering to ConocoPhillips for the latter’s Ekofisk project. WGP was selected for that project to develop a PRM system, once again highlighting WGP’s heightened interest and involvement in the field of PRM. Further evidence of this was WGP’s presence at the first-ever EAGE (European Association of Geoscientists and Engineers) PRM Workshop held in March 2017 in Amsterdam. The workshop highlighted the benefits of PRM on existing fields. The event also provided insights into exciting potential future developments to help reduce the costs and exposure in PRM acquisition, thus broadening the global appeal of this type of acquisition. WGP’s participation in the Eldfisk project also led to a prestigious recognition from ConocoPhillips in the spring of 2018. The world’s largest independent E&P company, honoured ten of its suppliers as part of its 2017 Supplier Recognition Award Programme for exhibiting exceptional leadership that celebrates ConocoPhillips’ SPIRIT values. WGP, alongside Magseis Operations, won in the ‘Doing Business Better’ category, courtesy of its contribution to the 2017 Eldfisk seismic campaign. Mr Hibben commented that WGP’s ‘One Team’ ethos was to be praised for ensuring the close working relationships between the client and other contractors in the efficient delivery of a safe, and high-quality project. Tom Scoulios, Magseis Fairfield’s Western Hemisphere COO, added that ‘WGP’s background of innovation and leadership in high-quality source systems coupled with their ability to provide technical solutions to a wide variety of difficult problems, makes them a natural addition to the Magseis Fairfield group. Going forwards, the aim is to expand WGP’s capabilities into new areas of operations and to continue to leverage improved geophysical technologies to provide bespoke solutions.’ In late 2018, the Norwegian geophysical company, Magseis, announced its intention to acquire Fairfield Seismic Technologies, including WGP. The deal closed in December 2019 and Magseis Fairfield ASA was formed. Magseis Fairfield now operates with the industry’s largest marine nodal inventory, a combination of the industry’s two leading technology platforms, which will allow

Magseis Fairfield to capitalise on exciting growth opportunities in the marine seismic industry. Whilst there is no doubt that becoming part of Magseis Fairfield ushers in a new era for WGP in terms of opportunities for synergy and growth, the company will stick to the basic principles that have steered it to the dominant position it occupies at present. Adhering to its ‘One Team’ approach that emphasises narrow collaboration between team members and working as one tight unit. WGP enters this new exciting era with a wide portfolio of offerings to the market including: • Building and operating portable single, dual and triple modular Source systems • Applications of P-Cable technique offering high resolution bespoke 3D and 4D seismic solutions • The ability to field a cost-effective, small scale node crew where larger crews are not economically viable WGP will also continue to seek out new disruptive technologies – a commitment that reflects its desire for continuous improvement. What is more, the business is determined to maintain a line of clearly defined processes, so that it can run efficiently and serve its clients in the most optimal way possible.

Last but not least, recognising its responsibility to the community within whose boundaries it operates, WGP will strive to fulfil its CSR obligations, in order to retain and foster the positive relationships it has built with various stakeholders in the years to come.

WGP Group

InProspect Limited Since its foundation in 2012, InProspect Limited have provided systems and services to WGP Group Ltd. They have adopted InProspect’s Triggerfish for all their survey methods; PRM/LoF, 3DHR P-Cable, 2D streamer, OBN source and ASV autonomous shooting. InProspect fully support WGP’s navigation and acquisition aims and requirements for the years’ ahead, fulfilling the transition of source systems being driven by the technical requirements and environmental concerns of their clients and industry. The recent Triggerfish release, TF3, supports their fully flexible source requirements; dithered, apparated and multi-source. It also supports our HR/UHR clients with ultra-short-shot interval firing. Get in touch at info@inprospect. com to start the discussion. Aligning Triggerfish to agile development practices allows InProspect to deliver your changing survey needs; be that multi-vessel OBC crew control over large radio networks, or single vessel UHR or source. Microsecond precision with IOGP Px/11 and SPS extended deliverables.

WGP Group ............................................ Services: Project management and geophysical services



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