Energy, Oil & Gas Issue 178 March 2020

ISSUE 178 MARCH

energy-oil-gas.com

Creating positive change THE OLIVER FAMILY OF COMPANIES HAS ADAPTED AND EVOLVED IN ORDER TO BE READY TO MEET THE NEEDS OF A CHANGING MARKET

Alternative options

Hydrogen could have a big part to play in reducing emissions for both transport and heat

Gaining visibility

The need to keep offshore drilling secure and the challenge of preventing a cyberattack at sea

The solar division of LG Electronics named the Top PV Brand in Europe Wintershall Noordzee BV starts successful gas production from Sillimanite field

EDITOR Editors Chairman Andrew Schofield Editor Libbie Hammond - libbie@schofieldpublishing.co.uk Assistant Editor Will Daynes Staff Writer Alex McDonald Art Editor Fleur Daniels Advertising Designer Fiona Jolliffe

The focus of this piece is on the energy transition and creating a greener world but the premise – that a vast pool of female skill and talent is currently untapped – must surely be relevant in a future where the workforce has been reduced and labour is needed

Managing Director Joe Woolsgrove Operations Director Philip Monument Operations Manager Natalie Griffiths Sales Mark Cawston Dave King Theresa McDonald Gary Silk Sam Surrell Web Sales web@schofieldpublishing.co.uk Exclusive Features Darren Jolliffe - djolliffe@schofieldpublishing.co.uk Research Managers Ben Richell Kieran Shukri Editorial Researchers Mark Cowles Wendy Russell Richard Saunders ­Office Manager/Advertisement Administrator Tracy Chynoweth Digital Subscriptions Iain Kidd - digital @schofieldpublishing.co.uk Social Media Abigail Blake

© 2020 Schofield Publishing Limited all rights reserved

Skills and strength With coronavirus dominating the news and every sector feeling the effect, the focus of the world appears to be on COVID-19. Operators and contractors will need to be making up for lost time later in the year, potentially fast tracking projects and getting staff back up to full speed and strength.

This latter point can link into our feature on page 18, where Joyce Lee takes a look at how women can be a transformative force in providing the labour and innovation required to upscale clean energy. The focus of this piece is on the energy transition and creating a greener world but the premise – that a vast pool of female skill and talent is currently untapped – must surely be relevant in a future where the workforce has been reduced and labour is needed.

10 Cringleford Business Centre Intwood Road Cringleford Norwich NR4 6AU 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.

EDITOR LIBBIE HAMMOND ENERGY,OIL&GAS

energy-oil-gas.com

1

REGULARS

4

Infrastructure How the government decides to approach the decommissioning of oil and gas platforms will set an example for a range of newer offshore infrastructures

8

Hydrogen Several opportunities present alternative options to the current transport and heating markets which could help us meet climate change targets

12 Cybersecurity By connecting their entire fleet of rigs to a single platform, contractors will be able to gain visibility of

4

potential security threats

14 News Some of the recent developments within the oil and gas industry

16 Automation A reduction in digital complexity should result from oil & gas companies collaborating to create an open standard for process automation control systems

18 Skills and talent A more sustainable world demands diverse and inclusive workforces, and that requires tapping into

8

the underutilised pool of female skill and talent

12

16 2

ENERGY,OIL&GAS

energy-oil-gas.com

PROFILES

22

Byco Petroleum

32

40

Oliver Family of Companies

Natref

46

50

Cory Riverside Energy

Axis Energy Services

ENERGY,OIL&GAS

energy-oil-gas.com

3

W

ith the marine environment facing intensifying pressures from climate change, waste and resource management, and habitat destruction, and as the debate on the drivers of the OSPAR Convention reignites, is it time to take a more holistic approach

4

ENERGY,OIL&GAS

energy-oil-gas.com

and assess the sustainability of offshore infrastructure decommissioning? In pursuing its ambition to become a global leader in decommissioning oil and gas installations and mature field management, the UK government should evaluate the range of options that address environmental responsibility and deliver best value for money.

INFRASTRUCTURE

Understanding the

trade-offs LARA ALVAREZ ANALYSES THE VALUE OF FLEXIBILITY IN OIL AND GAS DECOMMISSIONING

The UK is one of the largest and fastest growing markets by value in offshore decommissioning, with almost one million tonnes of oil and gas installations, pipelines and underwater assets to be removed within the next seven years. As it currently stands, EU nations are implementing a policy of complete removal of all

structural elements of offshore oil and gas platforms.

However, scientific evidence suggests that the total removal of such structures can in fact have negative consequences to valuable marine ecosystems.

Not only does it pose a huge technical challenge, but the financial upshots of these plans are equally

ENERGY,OIL&GAS

energy-oil-gas.com

5

astounding, with the Oil & Gas Authority and HM Revenue and Customs approximating costs of £61 billion for operations. As for taxpayers, an additional sum of £24 billion has been estimated, owing to high-tax deductible expenditures.

In addition to costs and technical barriers, the physical scale of the decommissioning process demands tradeoffs between a range of other factors including: engineer safety; disturbing or removing habitats and the marine life they support; reducing biological connectivity between platforms; re-opening areas for bottom fishing; mobilising buried contamination; and the carbon footprint of air emissions associated with the removal of piled structures.

Such a vast array of considerations has meant that the number of scientific publications aimed at improving the understanding of the impact of removing these man-made structures in the North Sea has grown at pace, supported by research programmes such as INSITE. Initial results are in line with the findings from more extensive research conducted in other jurisdictions such as the Gulf of Mexico and California, and there now seems to be a wider understanding that failure to consider the negative impacts associated with offshore decommissioning in the North Sea could have extremely damaging effects on marine ecosystems. Many of these North Sea installations have been in place for over 30

6

ENERGY,OIL&GAS

energy-oil-gas.com

years and have established communities, including protected cold-water coral species attached to structures and mobile organisms (such as crustaceans and fish) that utilise the different ecological niches provided by these structurally complex habitats for feeding or reproduction. The increase in seafloor heterogeneity and the provision of a safe zone that attracts fish and supports the recruitment and growth of larvae and pelagic juveniles ultimately enhances fisheries.

Offshore platforms can also support the conservation and restoration of the benthos and reduce fish overexploitation through their exclusion zones, which bar fishing and other activities from the area. The loss of access and displaced fishing effort for fishermen can be partially compensated by the increased fish production rate when overspill effects occur outside of the exclusion zones, reducing the catch per unit effort associated with the harvest of commercial fish species. Some researchers are therefore promoting the use of exclusion zones as a tool to assist the management of marine resources, together with ‘total allowable catches’ or fishing closures.

Evidence also indicates that some installations constitute a network of artificial reefs, and are biologically connected, placing the aggregate habitat value and associated productivity of the network higher than that of its individual structures.

INFRASTRUCTURE

Despite this evidence, the UK government continues to enforce a clean seabed policy in line with OSPAR Decision 98/3, which prohibits leaving the installation on the seabed (partially or entirely) and demands a return to its ‘natural state’ upon decommissioning. This policy assumes that man-made structures have lower ecological value than the pre-installation seafloor habitat and lacks flexibility in decommissioning strategies. Derogation from full removal is solely based on technical criteria and, as such, may not be granted.

The increasing scientific evidence on the unintended consequences of offshore decommissioning, coupled with the growing intensity of decommissioning efforts and large investment programmes should position the UK as the global leader in sustainable decommissioning. R&D focused on transforming the conventional approach to decommissioning, plus cost reduction for taxpayers and the oil and gas industry, is resulting in much-needed debate on decommissioning approaches across the UK Continental Shelf. On the back of these developments, the UK has a unique opportunity to examine the impact of large-scale decommissioning on the long-term sustainability of marine ecosystems.

If we are to truly protect the environment, the complexity and variety in designs, installations and operations of individual oil and gas structures must be reflected in a flexible policy that allows for tailored solutions for each platform and seeks a wider understanding of the unintended consequences of full removal. Importantly, this flexible approach in no way constitutes a license to pollute as measures aimed at ensuring the safe abandonment of the installation, such as flushing of pipelines, would be incorporated in a viable decommissioning option. In fact, a welldesigned decommissioning strategy would identify and minimise unintended consequences to the environment – particularly important given the extensive pressures impacting marine ecosystems at present, including depletion of fish stocks on the seafloor, loss of habitat and further ecosystem components under conventional fishery management, and changes to ocean circulation and stratification induced by climate change.

The analysis of decommissioning alternatives for each individual structure should be based on a transparent assessment, utilising robust scientific approaches such as resource or habitat equivalency analysis, the Green Book Value-for-Money framework, and net environmental benefit analysis (NEBA) underpinned by ecosystem services frameworks. Critically, the range of costs, benefits and wider impacts of the various decommissioning options should be identified and the trade-off should be clearly presented. This will ensure that the net environmental and socio-economic impacts are analysed alongside technical, cost and safety criteria, facilitating a

well-balanced decision for an individual platform as part of a wider collection of biologically-connected offshore installations.

Ultimately, how the government decides to approach the decommissioning of oil and gas platforms will set an example for a range of newer offshore infrastructures such as wind turbines, which will require decommissioning in the near future. Keeping tabs on circularity, design, installation and end-of-life considerations of new infrastructure will ensure we have learnt from the oil and gas industry, and fully incorporating them into the early project planning phases will hopefully enhance the habitat value of the structures in the marine environment, minimising disturbance to the ecosystem.

RAMBOLL Lara Alvarez is Managing Consultant 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: https://uk.ramboll.com/

ENERGY,OIL&GAS

energy-oil-gas.com

7

Alternative options

THE OPPORTUNITIES AND CHALLENGES OF INTRODUCING HYDROGEN. BY DR GARETH HINDS

W

ith the UK hosting COP26 in November 2019 and targets being set to reach zero emissions by 2050, tackling climate change requires all sectors and industries to adapt and adopt new ways of operating in an effort to reduce carbon emissions. Within the energy sector, hydrogen has a big part to play in reducing emissions for both transport and heat.

The UK Government has announced a ban on the sale of petrol and diesel cars by 2035, and the current alternative modes of transport are battery electric or fuel cell electric vehicles. Fuel cell electric vehicles are powered by hydrogen and produce only water in the exhaust, thus eliminating the emissions that are currently

8

ENERGY,OIL&GAS

energy-oil-gas.com

being emitted by petrol and diesel vehicles. Whilst many organisations such as the National Physical Laboratory (NPL), taxi firm Green Tomato and the Metropolitan Police have recently taken up hydrogen vehicles, many battery car enthusiasts appear to be condemning fuel cell electric vehicles (including Tesla CEO Elon Musk who refers to fuel cells as ‘fool cells’). However, there are several advantages of fuel cell electric vehicles including a range in excess of 350 miles from one fill, a refuelling time of within three to five minutes and according to Toyota the lifecycle emissions are better than battery vehicles. NPL owns a hydrogen car (a Toyota Mirai) and staff have remarked that it operates very similarly to the conventional petrol or diesel car. Whilst this ‘battery vs.

HYDROGEN

hydrogen war’ is probably to be expected, especially with car manufacturers appearing to favour one technology over the other, the main focus should be the move away from petrol- and diesel-powered vehicles, so at this stage there is no need for any competition as there is room for both technologies to grow. This mentality is enforced at NPL at least where scientists are currently working on advancing both hydrogen and battery vehicles.

In addition to decarbonising transport, hydrogen also has a part to play in decarbonising heat, and the first step being planned is to inject hydrogen (up to 20 per cent) into natural gas. This percentage amount fraction is widely accepted as a safe level at which no changes would need to be made to the existing gas grid

or domestic appliances, whereas higher amounts could lead to issues with corrosion and reduced performance, respectively. Looking to the future however, for 100 per cent hydrogen to be used consumers would need to buy ‘hydrogen ready’ boilers. These boilers would need to be designed to work with natural gas but easily modified to work with hydrogen when the switch happens.

Interestingly, the UK was in a similar position when we successfully converted the gas grid to supply natural gas instead of town gas 50 years ago.

Converting and introducing hydrogen on a large scale is not straightforward and does create technical challenges. NPL is the UK’s National Metrology Institute (NMI) and is focused on solving any issues related to gas quality and purity when introducing hydrogen to heat and transport. NPL supplies Primary Reference Materials (PRMs) to the natural gas industry, underpinning the gas quality measurements that they perform. NPL participates in key comparisons with other NMIs worldwide, to demonstrate their ability to provide traceability for gas composition. As gas measurements are currently used to measure the energy content of gas (and therefore determine how much customers are charged), it is important to get this measurement correct, and consistent with other countries we trade with.

ENERGY,OIL&GAS

energy-oil-gas.com

9

Now that the UK plans to inject hydrogen into natural gas, NPL has developed a new suite of PRMs that reflect the change in composition. These PRMs are important for industry as they provide traceability for new gas analysis methods (for determining energy content) and are required to develop new accurate online analysers capable of monitoring hydrogen blend at the injection point.

Whereas in heat applications, gas composition measurements are used to determine energy content, purity analysis has another important role, which is to protect appliances or other devices against harmful levels

10

ENERGY,OIL&GAS

energy-oil-gas.com

of impurities. Recently the UK gas grid started accepting biomethane (which is essentially biogas cleaned up and converted to natural gas). However, there are some impurities that could be present in biomethane, and not natural gas, such as siloxanes. If siloxanes reach domestic boilers and cookers the consumer may experience a reduced performance over time thus shortening the appliance lifetime. Hydrogen vehicles require extremely pure hydrogen (unlike petrol or diesel engines) with even four parts per billion of sulphur destroying the fuel cell. This means the supply at refuelling stations needs

HYDROGEN

In addition to directly supporting the energy industry through providing PRMs and gas quality measurements, NPL has carried out research work to support the introduction of hydrogen gas to the grid. If we switched to hydrogen, we would still need to odorise the gas to help customers quickly identify a gas leak. NPL through the SGN Hydrogen 100 Programme has performed extensive laboratory studies to confirm that existing odorants used today for natural gas can continue to be used with hydrogen in the gas grid. NPL is also currently working with Cadent Gas to understand whether it would be feasible to supply grid hydrogen to hydrogen refuelling stations as part of the Hydrogen Grid to Vehicle (HG2V) project. Being able to do this would open up the hydrogen market by allowing a hydrogen refuelling station to quickly be installed anywhere in the country where there is an existing gas supply. Currently, there are not enough stations to support the existing hydrogen vehicles market, so the work of HG2V could be a game changer for the industry.

All of these opportunities present alternative options to the current transport and heating markets that could aid in meeting the climate change targets.

ELECTROCHEMISTRY GROUP, NPL to be carefully monitored. Refuelling stations need to ensure that the quality of their hydrogen complies with ISO 14687. If the hydrogen is not checked, or it contains high levels of impurities, the car that is being supplied could break down whilst in operation. NPL has developed the capability to perform purity analysis of biomethane and hydrogen and has also made good use of its on-site hydrogen refuelling station (owned and operated by ITM Power) to make improvements to its high-pressure sampling techniques and validating online purity analysis instruments.

Dr Gareth Hinds FREng, is NPL Fellow and Science Area Leader, Electrochemistry Group, NPL. NPL is the UK’s National Metrology Institute, providing the measurement capability that underpins the UK's prosperity and quality of life. From new antibiotics to tackle resistance and more effective cancer treatments, to secure quantum communications and superfast 5G, technological advances must be built on a foundation of reliable measurement to succeed. As a national laboratory, NPL’s advice is always impartial and independent, meaning consumers, investors, policymakers and entrepreneurs can totally rely on its work.

For further information please visit: www.npl.co.uk

ENERGY,OIL&GAS

energy-oil-gas.com

11

Gaining

visibility RISING TO THE CHALLENGE OF KEEPING OFFSHORE DRILLING SECURE. BY DAVE WEINSTEIN

T

he oil and gas industry presents a unique and complex cyber security profile. A serious attack disabling offshore drilling rigs carries devastating consequences not just for the organisations that own the infrastructure, but also for wider global economies as supply is disrupted. Due to the often precarious and isolated nature of offshore facilities, such attacks could easily go beyond the digital to directly endanger real human lives.

At the same time, the Industrial Control Systems (ICS) and Supervisory Control And Data Acquisition (SCADA) systems at the heart of the industry are notoriously challenging to secure in the digital age. As organisations face pressure to keep up with the wider business world by digitising and automating their operational technology (OT) systems, they are at risk of providing threat actors with additional attack surfaces to exploit.

Thankfully, a large-scale cyber attack on offshore infrastructure has yet to occur and would likely only take place as part of the highest level of offensive nation state activity. However, these systems still remain vulnerable as a point of entry for criminals seeking entry into company

12

ENERGY,OIL&GAS

energy-oil-gas.com

networks and valuable data such as financial information and intellectual property.

Why is offshore infrastructure so challenging to secure?

One of the biggest issues around offshore technology is its fragmented nature. Assets and infrastructure often use multiple different systems provided by different external contractors. Looking at floater assets for example, standard drilling ships and semisubmersibles typically include four major independent OT networks. Each of these different elements will generally be following its own communication protocols and using different automation equipment, making it extremely difficult to gain a single unified view of the network as a whole.

This fragmented approach introduces multiple different potential vulnerabilities that can be exploited by threat actors. For example, the contractors responsible for maintaining the systems will typically be using remote access to carry out their duties. Attackers can compromise these privileged third parties to gain access to the systems.

CYBERSECURITY

Compounding this, a drilling ship’s OT network is rarely air-gapped and is instead connected directly to the rig contractor’s main IT network, which is in turn connected to the internet. This means that, in addition to the risk of the ship itself being disabled, offshore assets can easily be used as a stepping stone to execute attacks on the main IT network of the parent organisation.

Despite the significant threat posed by these common operational practices however, it is apparent that the risk cannot be easily managed by the rig contractors. Each network is managed in a complete silo by its respective contractor, which means there is no cohesive visibility of the assets across the OT environment.

Further, traditional IT security monitoring products are not equipped to deal with the proprietary nature of the OT protocols being used by different assets throughout the floater’s network. This disjointed approach is an additional boon to cyber attackers, making it much more likely that any suspicious network activity will go undetected.

However, while this fragmented environment presents significant security challenges, it is it possible for rig contractors to regain control and oversight with the right approach and tools.

the priority should be replicating and monitoring all traffic that directly impacts physical processes.

Following this, the next objective is to identify and monitor strategic switches such as intersection points between network segments and working zones. This includes for example the intersection between IT and OT networks, which present opportunities for lateral movement by threat actors.

Once the key switches are identified and connected, the most effective approach is to use threat monitoring powered by machine learning to fully automate the process. The machine learning tool can be trained to recognise normal network behaviour for the rig, enabling it to instantly detect and flag any anomalies.

By connecting their entire fleet of rigs to a single platform, contractors will be able to cut through the opaque complexity of the typical rig OT arrangement and finally gain visibility of any potential threats, regardless of where they emerge.

The importance of a clear view Attaining visibility of all of the disparate OT systems is essential to securing offshore infrastructure against malicious cyber activity. This is most effectively achieved with the use of a single, vendor agnostic security platform that is able to integrate with the different systems being used by each rig contractor involved. As mentioned previously, traditional IT management tools usually struggle with OT systems because of the number of different proprietary technologies, each with its own particular protocols. Therefore, successfully integrating with multiple OT systems demands a specialised solution that has been designed with the oil and gas industry in mind.

The main objective is to be able to monitor all traffic across the network, but how this is achieved will depend on the specific configuration being used. A network that features a main switch that aggregates all the traffic can be monitored from this single point. Meanwhile, a network that is more segmented, or features independent level-one clusters, can be monitored by port-mirroring each of the relevant switches and sending copies of the data packets to another main switch. Here, a balance needs to be struck between achieving maximum coverage with a minimal footprint on the network.

Prioritising threat detection Because the impact of a successful attack on the infrastructure itself has such devastating consequences,

CLAROTY Dave Weinstein is CSO at Claroty. Claroty was conceived to secure the industrial control networks that run the world from cyberattacks. The Claroty Platform is an integrated set of cybersecurity products that provides extreme visibility, unmatched cyberthreat detection, secure remote access, and risk assessments for industrial control networks (ICS).

For further information please visit: www.claroty.com

ENERGY,OIL&GAS

energy-oil-gas.com

13

In Brief Research reveals failures New DNV GL research based on more than 1000 failure cases has revealed that tubes and piping are the most failure-prone components in the oil and gas and maritime industries.

Fatigue and corrosion are the most common failure types.

The accumulation of more

Partnership extended

and better data and learnings from failures can be applied in the front-end engineering design phase of development projects to engineer more robust assets. During operations, learnings can enhance optimisation of inspection, repair and maintenance for more efficient and safer use of capital and people.

Bendy energy A new bendable supercapacitor made from graphene, which charges quickly and safely stores a record-high level of energy for use over a long period, has been developed and demonstrated by UCL and Chinese Academy of Sciences researchers. While at the proof-ofconcept stage, it shows enormous potential as a portable power supply in several practical applications including electric vehicles, phones and wearable

PD&MS Group is going to continue to support a leading North Sea operator with engineering operations across its assets in the UK Continental Shelf (UKCS), after securing a new contract for a further three years, with options to extend by a further two years.

Commenting on the deal, Simon Rio, PD&MS Chief Executive said: “Being awarded this three-to-five year contract renewal is testament to the consistent high quality of work our teams have been delivering on their assets over the past two years.

“Our joint openness and collaboration has allowed us to apply value-adding and sustainable working practices and we look forward to working in partnership with them and providing engineering expertise to maximise recovery and support the energy transition agenda.”

The new scope follows on from the successful completion of a two-year campaign with the E&P organisation, where PD&MS has delivered a range of modifications and capital projects including new wells, caisson repairs and replacements, as well as an accelerated scheduled lifeboat upgrade.

PD&MS VP of operations and projects, Liam O’Neil added: “Our fit-for-purpose approach has proven well suited to our client’s strategic objectives and principles, and has established us as a trusted and reliable partner. One of our core values is to engage directly with our partners and we feel that the learnings we have implemented together over the last two years sets us up for even more success over the new contract term.”

technology.

Local support

Top award

Killingholme-based Fussey Engineering has been hired to supply and install steel framework and cladding at the National Grid 400kV substation site adjacent to the Ørsted’s newest offshore wind farm, Hornsea Two. The steelworks, which will involve the construction of an annex building adjoining the National Grid substation, includes around 30 tonnes of locally sourced steel. Construction of the building annex is anticipated to complete on the 1st April, and once complete, it will house the switchgear to control the feed in to the national grid.

Supplying the needs for National Grid is principal contractor Siemens Energy, who awarded the tendering works to Fussey Engineering.

Senior Project Engineer for Siemens Energy UK, Lee Laffey said: “Not only was there a logistical advantage of having the steel framework supplier so close to the site works with regards to carbon emissions, the expertise provided by Fussey’s and their proven track record in providing a quality product together with a qualified workforce able to work within the constraints of a live electrical substation made this a double win for Siemens.”

The solar division of electronics specialist LG Electronics, has been awarded the Top PV brand in Europe in the Module category, for the seventh consecutive time. The annual independent survey by Bonn-based market research company, EuPD found LG Solar had the top brand perception and management in the PV Industry.

Michael Harre, Vice President of the EU Solar Business Group at LG Electronics was delighted to win the award again, and highlighted the businesses’ philosophy – to combine innovative and high-quality technology with a partnership approach that is tailored to the requirements of installers and users.

14

ENERGY,OIL&GAS

energy-oil-gas.com

NEWS

Gas field comes on stream Wintershall Noordzee B.V. (a Joint Venture of Wintershall Dea and Gazprom EP International) has successfully started gas production from its operated Sillimanite field. Discovered in June 2015, the unitised gas field stretches across the UK and the Dutch Continental Shelves and is located approximately 200 kilometres off the coast of Den Helder.

As part of its sustainability programme, the company also, for the second time, recycled the topside of its recently decommissioned E18-A platform, formerly P14-A topside, in the Sillimanite project.

“With first gas from Sillimanite we once more underline our ability to successfully explore for hydrocarbons and transfer development projects successfully into production. As Sillimanite will increase the amount of gas produced in Europe, it underlines Wintershall Dea’s capabilities as Europe’s leading, independent gas and oil producer,” says Hugo Dijkgraaf, Chief Technology Officer and Board Member at Wintershall Dea.

ENERGY,OIL&GAS

energy-oil-gas.com

15

Reducing the complexity AN OPEN STANDARD FOR PROCESS AUTOMATION.

BY ED HARRINGTON

P

rocess automation contrasts from other types of manufacturing automation in that it is ‘always-on’. Within the Oil and Gas and Utilities industries, for instance, it is crucial that plants run at peak efficiency – or else the organisations will see a dramatic decline in profits and their customers will be negatively affected.

Really, process automation control systems are central to any industry that is required to keep operations going on a constant basis. Process automation technologies, then, are fundamental in Power Generation and Distribution for converting fossil fuel, thermal, or water power to energy; in the Food and Beverage sector for making the foods we buy in supermarkets out of raw materials; in Pulp and Paper for transforming wood into paper; and in Mining Exploration for extracting minerals.

The connecting factor linking the Oil and Gas industry to Pulp and Paper, for example, is the ability to continually convert one form of resource into an end product in a way that is carefully controlled and monitored.

16

ENERGY,OIL&GAS

energy-oil-gas.com

Given that it resonates with so many seemingly disparate industries, three years ago, a group of companies representing a variety of verticals got together to discuss the possibility of developing an open standard for process automation – each driven by the need for more flexible manufacturing solutions.

Shortly after, the Open Process Automation™ Forum (OPAF) was born under the guidance of The Open Group.

From then on, the Forum began to lay the foundations for developing a standard that would help manufacturers overcome the main challenges they face every day. A year ago, over 90 member organisations were involved in the creation of the preliminary standard, O-PAS™ Standard, Version 1.0, which in 2019 became a full Standard of The Open Group. Here’s the story so far.

Why does process automation need an open standard?

Firstly, it’s important to clarify that industry standards for process automation are already available in the marketplace

PROCESS AUTOMATION

and fit-for-purpose. These include ISA 62443 for security, OPC UA for communications and information modelling, and DMTF Redfish for systems management.

As a result, we did not set out with the intention of developing something completely new – and this is why Version 1.0 of the O-PAS Standard focuses on interoperability, utilising these existing industry standards, and adopting and adapting them, to create a ‘standard of standards’. Our main goal here is to make sure that process automation control systems are secure, interoperable and scalable.

By bringing greater harmony and consistency across process automation as a whole, an open standard will allow Oil and Gas organisations, and other companies working across a variety of industries, to reduce capital and operational costs for their process control systems.

Solving the interoperability problem More often than not, the same type of process automation equipment and processes are deployed across different sectors. Yet there are only a few suppliers providing the relevant services. These suppliers have a complete ‘stack’, running all the way from a device – like a thermostat for example – to providing information to a separate material requirements planning system.

However, these systems are proprietary and cannot be easily replaced, which leads to organisations running into obstacles. To use a tangible example, imagine that you are using a basic control system from one vendor, but you are also interested in implementing the Human Machine Interface from another. The issue of vendor lock-in means that combining the two is not an option.

This is also limiting from the perspective of digital transformation given that you are unable to deploy new technological innovations if they are not yet provided by your chosen supplier.

In our quest to create a ‘standard of standards’ for process control, then, OPAF is working to identify the logical points in the supplier stack to break this chain and create a set of standard interfaces. This is not to say that we are attempting to reproduce the IP of those suppliers. Instead, we are seeking to build appropriate interfaces that will bring the end-user closer to a ‘plug-and-play’ environment, as opposed to being locked-in to just one vendor.

The digital transformation benefits Open systems allow digital transformation initiatives to thrive as they drive innovation with little to no disturbance.

Moreover, these systems reduce costs and, in turn, drive a higher ROI. In addition, as the line between Information Technology (IT) and Operations Technology (OT) blurs, closed networks are beginning to open up, introducing new threats and expanding the cyber-attack surface for

control systems. Having an open system enables Oil and Gas organisations to make sure that these systems are more secure.

Traditionally, many Oil and Gas plants and companies dealt with OT security by air-gapping their facilities, allowing for no interaction to take place outside the OT space. But the rise of new technologies including cloud computing, edge computing and wireless communication, coupled with the uptake of digital transformation projects, leaves systems at risk of being breached. This is why security is a main part of O-PAS, and it has been a main consideration in the development of the standard from day one.

A bright future As more Oil and Gas companies, and, indeed, organisations across all kinds of vertical industries, collaborate to create an open standard for process automation control systems, we can expect to see a reduction in digital complexity.

Ultimately, this will not only improve operational efficiency, but also drive innovation forward.

THE OPEN GROUP Ed Harrington is Forum Director, Open Process Automation™ Forum, The Open Group. The Open Process Automation Forum is an international forum of endusers, system integrators, suppliers, academia, and other standards organisations working together to develop a standards-based, open, secure, and interoperable process control architecture.

For further information please visit: www.opengroup.org/forum/open-process-automation-forum

ENERGY,OIL&GAS

energy-oil-gas.com

17

The need for

diversity A GREENER DECADE AHEAD MEANS GREATER GENDER EQUITY ACCORDING TO JOYCE LEE

A

s we enter 2020, we leave behind a decade of successes and challenges in the clean energy transition.

In the first column, wind and solar energy now represent the lowest-cost option for power generation in markets where two-thirds of the global population live, according to BloombergNEF. Wind and other forms of renewable energy are on-track to generate around one-quarter of the world’s electricity by 2030, driven by national green deals and ambitious emission reduction targets from governments and corporates. The passage of the Paris Agreement represented a landmark moment in international co-operation on climate change, while grassroots campaigns for greater climate action have united students and citizens around the world.

The other column looks less rosy. While growth of global emissions has slowed down over the last decade, it continued to rise through 2019, according to the Global Carbon Project. Sea levels climbed steadily higher, as sea ice retreated. The release of the IPCC Special Report on Global Warming of 1.5°C was followed by a cascade of analysis which shows that a Paris-compliant pathway by 2030 will be out of reach if current patterns are maintained. The rates of change in energy demand, energy efficiency, electrification and decarbonisation are insufficient to reverse a course towards devastating climate change for many parts of the world. The raging bushfires that rang in 2020 in Australia are just one harbinger of the complex challenges to come.

18

ENERGY,OIL&GAS

energy-oil-gas.com

Conditional optimism, then, as we look ahead. All told, expectations for renewable energy deployment have been smashed with remarkable speed and growth. Yet there is more urgency than ever to align political, financial, economic and social resources to create a greener world in the next ten years. A chief concern will be how to harness the skills and talent needed for this mission – and in so doing, make the global energy transition more genderequitable.

A gender perspective of wind and renewable energy The role of women in the energy sector should be highlighted for two main reasons: necessity and fairness.

Women will be a transformative force in providing the labour and innovation required to upscale clean energy, supply skilled workforces in emerging markets and co-ordinate on international climate action. Meanwhile, the dividends of the energy transition – employment, capital, security, health and other social and economic benefits – should be distributed in an equitable way.

A 2019 report by the International Renewable Energy Agency (IRENA) showed that women represent around 32 per cent of the global renewable energy workforce.

Respondents to a worldwide survey cited cultural and social norms and lack of gender-sensitive policies among the barriers to women’s participation in renewables.

A new report released in January 2020 by IRENA and the Women in Wind Global Leadership Program –

SKILLS AND TALENT

jointly organised by the Global Wind Energy Council (GWEC) and the Global Women’s Network for the Energy Transition (GWNET) – dives deeper into women’s representation in the wind sector, one of the fastestgrowing renewable industries. Data from 71 countries shows that women represent only 21 per cent of the wind energy workforce – more or less on par with the share of women in the oil and gas industry.

Dissecting this data further finds that women in wind energy are generally more prevalent in administrative and non-STEM functions than in STEM and management roles. Notably, only eight per cent of senior management (owners or board members) in the wind sector were found to be women, according to the IRENA survey.

As in the global renewables sector, the majority of women working in wind energy perceive gender-related barriers from male-biased norms to prevailing hiring practices. Perception of a persistent gender pay gap is one of the key barriers to retention, as the largest wage inequities exist in executive roles. A whopping 54 per cent of female respondents believe that men are paid more than women for equivalent work in wind energy.

By 2050, IRENA forecasts the number of onshore and offshore wind energy jobs to rise from its current 1.16 million to more than six million. There are job opportunities for men and women across the wind energy value chain, including project management, manufacturing and a range of professional services like financing, legal advisory and IT. But workplaces and policies need to be designed to encourage inclusivity and neutrality, in order to enable greater access for women.

Paving the way for more women in wind energy The data above tells a story of a clean energy workforce which is failing to deliver its full potential and leaving a vast pool of female skills and talent untapped. With rising emissions and urgent imperatives to scale up climate action, the wind and renewables sectors must do all they can to strengthen their appeal to attract and retain women.

There is no perfect formula for diversity, but helpful measures range from networking and mentoring opportunities to policies that encourage work-life balance and equal opportunities for professional development.

Diversity initiatives must be monitored and reported as a priority to a company’s board and senior leadership.

Women must be highlighted as thought leaders at internal and external events, in order to break unconscious biases and challenge existing gender norms.

A more sustainable world demands diverse and inclusive workforces. Ten years from now, as we tally wins and losses in the fight against climate change, the gender-inclusivity of our global efforts will not only be an item to highlight – it will determine how much we have achieved.

GLOBAL WIND ENERGY COUNCIL Joyce Lee is Policy and Operations Director at the Global Wind Energy Council (GWEC). The Women in Wind Global Leadership Program was launched in 2019 by GWEC and Global Women’s Network for the Energy Transition (GWNET). Its mission is to advance the role of women as agents of change in the global energy transition, in line with SDGs 5 and 7, and contribute to a more just, innovative and prosperous society. As a multidimensional program including mentorship, learning and development, exclusive webinars, a study tour and an online storytelling campaign, Women in Wind is designed to accelerate the careers of women in wind power and foster a global network of knowledge-sharing, inclusion and empowerment.

For further information please visit: https://gwec.net/women-in-wind/about-the-program/

ENERGY,OIL&GAS

energy-oil-gas.com

19

Byco -

Be the change!

Nine days into the new year, Byco Petroleum – Pakistan’s largest oil refining company – had a remarkable occasion to celebrate. On 9 January 2020, the petroleum organisation, also involved in marketing and logistics operations, marked its 25th anniversary. Founded by Mr Parvez Abbasi and his son Amir Abbassciy with the vision to make Pakistan self-sufficient in energy production, Byco has grown continuously to become

22

ENERGY,OIL&GAS

energy-oil-gas.com

the largest of its kind by installed capacity, working tirelessly to accomplish its mission.

Reflecting on the milestone reached by the company, Amir, who is currently its CEO, shared some of the most significant events in Byco’s history to date. “Innovation is at the heart of everything we have aimed to achieve.

We launched our first refinery in 2004 with a capacity of 18,000 barrels per day. Three years later, we introduced our first retail

PROFILE

BYCO PETROLEUM

Mr. Amir Abbassciy

I have an unrelenting trust in our potential to become a great strategic asset thanks to the capabilities of our dedicated, hardworking, and loyal team. Though we have realised many a dream and steadily taken steps towards our vision, our path to the future has only just begun.

Leveraging our employees, who are our biggest strength, we intend to reach even greater heights in the future

outlets in Sukkur and Rawalpindi. Then, in 2012, we commissioned Pakistan’s first, and still the only, Single Point Mooring (SPM) – a dedicated deep sea floating port for petroleum shipments deemed a strategic national asset, which has safely imported 11 million tonnes of crude oil so far, come rain or shine, even in South Asia’s storied Monsoon seasons. As the only floating liquid port in the country, the company has taken care to employ a

round-the-clock crew dedicated to the safety and security of the buoy and vessels in and around the SPM’s anchorage area.”

Amir continued: “We also have 389 retail outlets across the country, with about half of our products sold through our own marketing channel. We have achieved remarkable success over the last 25 years, but this is not to say that we have not had challenges along the road. On the contrary, we have faced, and

...continued on page 27

ENERGY,OIL&GAS

energy-oil-gas.com

23

A Reliable Partner Offering a broad range of technical solutions in the Oil & Gas sector, plus a dedicated team and a reputation for excellence, Matrix (Pvt) Limited is ideally positioned for international companies looking for a partner in Pakistan

Matrix (Pvt) Limited is the parent company of the Matrix Group. It was established by a team of professionals with decades of experience in their respective fields in 2006 and started operations in 2008. It acts as local agent and distributor for a number of foreign principals and international associates. The team has strong technical background, excellent market knowledge, good credibility and above all a passion for excellence.

It has a vision to have a synergistic business matrix with global outreach. The company takes pride in providing unmatchable services to ensure customers’ satisfaction.

With head office in Islamabad and sales offices in Karachi and Lahore, the company has five business divisions viz Fuel Additives, Lubricant Additives, Water Treatment, Polymers and Industrial Chemicals. Each business division is headed by professionals who are highly experienced in their respective fields. Its subsidiaries are involved in Distribution, Manufacturing/Formulations and Travel Services. The team has international exposure and vast experience with some of the largest multinational companies like BASF, Dow, GE, Huntsman, Afton, Total Petrochemicals etc.

The company has a very strong presence in the Oil and Gas sector, both upstream and downstream from exploration to marketing. It is by far the leading supplier of fuel additives in Pakistan. It is also a leading supplier of Chemicals for Sweetening and Dehydration of Natural Gas. It is working on a number of opportunities for Water Treatment Chemicals and aims to be the market leader in each area of its activities. The sales teams are backed by strong local technical service and engineering support. During the year 2018, the company secured business worth nearly $40 million for its foreign principals. It also achieved local sales of

24

ENERGY,OIL&GAS

energy-oil-gas.com

nearly PKR 2.5 billion during the year 2018/19. The company lays great emphasis on customer needs and differentiates itself through customer service.

It regularly arranges overseas technical training of its customers relevant staff around its Principals Technical training centres, outside Pakistan. It also conducts in-country training programs for customers. The company is continually expanding its activities in the Oil and Gas sector and is always looking for new partners, solutions, and services to broaden the base and strengthen its footprint.

The company has a culture of Responsible Care and lays a strong emphasis on Health, Safety and Environment. Product Stewardship is an integral part of its activities. It believes in developing a healthy society and supports a number of organisations and individuals as part of its Corporate Social Responsibility. It considers its employees as its most valuable resource and has voluntarily taken a number of initiatives for the welfare of the employees and their families. An employee’s contribution to the company’s growth is duly recognised and rewarded. The company is also cognizant of its obligations towards the country. During the financial year 2018/19 it contributed more than half a billion rupees to the national exchequer in shape of various taxes.

The company is making use of information technology to keep pace with the growth and to stream line its operations, it has recently embarked upon the project to implement ERP system. The company enjoys good relations with reputable foreign multi-national companies and is using these to also establish its footprint outside Pakistan and has already established an office in UAE. It has short-term and long-term plans to further expand its product range to cater for more industrial segments. The company has strong commitment

MATRIX (PVT) LIMITED

towards the country and there are plans to expand local manufacturing.

One of the subsidiaries - Matrix Chemical Industries (Pvt) Limited - is a leading manufacturer of Unsaturated Polyester Resins in Pakistan at its plant in Lahore. The major consumption of these resins is in highly technical Fiberglass Reinforced Composites like Chemical Resistant Pipes, Electrical Insulators, Ladders, Cooling Towers, Fishing Boats and Specialised Containers. The resins are also used to produce Car Putties, Plywood Coatings and Buttons. The company offers complete package to its customers, which includes Glass Fiber, Hardeners and other auxiliaries.

Meet the team Mr. Nasim-uz-Zafar Burney is the Chairman of the company. He also manages the Travel Services business.

He has a degree in economics and over 40 years’ experience including 20 years at management level.

Dr. Nadeem Akhtar Burney is Executive Director. He is a well-known economist holding a doctorate in Economics from the Johns Hopkins University (USA) with more than 40 years’ experience including Pakistan Institute of Development Economics (PIDE), Kuwait Institute for Scientific Research (KISR), the World Bank (USA). He specialises in macroeconomics and has to his credit a large number of research papers published in international referred journals.

Mr. Naeem Burney is the Founder and Chief Executive. He is a Polymer Technologist with over 35 years’ of marketing experience in Pakistan. Prior to entering into business he worked for BASF and Dow Chemical. With his broad exposure, technical and marketing experience and understanding of the applications of Chemicals and Plastics, he has steered the company’s business in different industrial segments which ensures sustainable growth. Under his leadership the Matrix Group has achieved tremendous growth by establishing long term partnerships with leading refineries and oil companies in Pakistan and also developing a strong customer base in other industrial segments.

Mr. Irfan K. Qureshi is Executive Director. He is a business graduate with more than 40 year’s experience in petroleum industry. He was associated with Caltex/Chevron at senior positions before being appointed in 2009 as Managing Director of Pakistan State Oil, which is the largest oil marketing company in Pakistan - a position in which he served for two years.

Principals and International Associates • • • • • • • • • • • • • •

Afton Chemical USA Huntsman Corporation USA Culligan USA Total Petrochemicals France CZ Baolong Chemical Industries China M. I. Drilling Fluids USA Inoex Gmbh Germany Akpa Organic Peroxides Turkey Guang Dong Huaye China Sino Adhesives China Fineamin SA Switzerland John Hogg Technical Solutions UK Foosin Medical Supplies China CJ Polymers Malaysia

Industries Being Served • • • •

Oil and Gas Lubricant Construction Packaging

• • • •

Electronics Composites Automotive Textile

• • •

Power Fertilizer Agrochemicals

Product Range •

• • • • • • • • • • • • • • • • •

Fuel Additives (Octane Boosters, Detergents, Anti-Corrosion, Anti-Static, Metal Deactivators, Jet Fuel Additives) Lubricant Additives Ethanol Amines for Gas Sweetening (DEA, MDEA) Ethylene Glycols (MEG, DEG, TEG) Adsorbents for Mercury Removal Water Treatment Chemicals (Cooling Towers, Boilers, RO Plants, Waste Water) Reverse Osmosis Plants Waste Water Treatment Plants Electrochemical Equipment for Cooling Towers Plastics (PE, PP, PS, PVC, BOPS Film) Gravimetric and Ultrasonic Equipment for Plastic Extrusion Machines Adhesives for Flexible Packaging Catalysts for Polymerization Unsaturated Polyester Resins Organic Peroxides (MEKP, BPO, MIKP, TBHP, TBPB etc) Fiber Glass (CSM, Filament Roving, Woven Roving, 3D Fiberglass) PVC Medical Compounds Petroleum Dyes

ENERGY,OIL&GAS

energy-oil-gas.com

25

PROFILE

BYCO PETROLEUM

Mr. Fayaz Ahmad Khan

continue to face, more serious issues than any other refinery, but we have always met these bravely and head-on.”

Pioneer in Pakistan Amir also praised Byco’s team for their role in the company’s rise to its current position.

“I have an unrelenting trust in our potential to become a great strategic asset thanks to the capabilities of our dedicated, hardworking, and loyal team. Though we have realised many a dream and steadily taken steps towards our vision, our path to the future has only just begun. Leveraging our employees, who are our biggest strength, we intend to reach even greater heights in the future. We will achieve that by diversifying our revenue streams, expanding our refining capacity, and making our business model future-proof by investing in and upgrading our facilities and infrastructure.”

Shortly after its Silver Jubilee, Byco registered another memorable first in its history. The company became a pioneer in Pakistan by exporting high sulphur furnace oil (HSFO). By doing this, it has potentially found a solution to the longstanding problem that the country’s domestic refineries have encountered since its fuel mix has evolved, the latter throwing the country’s entire oil industry into a crisis.

With the local demand of HSFO dwindling and the passing of the new IMO regulations on 1 January 2020, furnace oil demand has

almost disappeared, but Byco’s initiative to export HSFO could restore some hope for the industry. At the end of January, the company loaded the first consignment of 25,000 metric tonnes on to the Roy Maersk vessel at Keamari Port.

“We believe that in every challenge lies an opportunity, and we have always advocated change. In fact, our motto is ‘Be The Change’, and we have stayed true to it in our work. Innovation is the key that will lead Pakistan to becoming self-sufficient in energy production and we are pleased to add another first to our growing list of innovations,” said Fayaz Ahmad Khan, Byco’s Vice President of Commercial, upon the revelation of the news.

Digital initiative As well as furnace oil, Byco’s refining capacity of 155,000 barrels a day enables the company to convert crude oil into various other saleable components, too.

These include liquefied petroleum gas, light naphtha, heavy naphtha, high-octane blending component, motor gasoline, kerosene, jet fuels, and high-speed diesel.

To support the side of the business that covers the conversion of light naphtha into premium motor gasoline (PMG), Byco formed its wholly-owned subsidiary called Byco Isomerisation Pakistan (Private) Limited (BIPPL) in 2014. The latter then acquired an isomerisation plant with a ENERGY,OIL&GAS

energy-oil-gas.com

27

PROFILE

processing capacity of 12,500 barrels per day from Byco. Rashid Badruddin, Byco’s Vice President of Operations commented, “Byco’s Isom is the largest unit of its type in Pakistan and since its installation, Byco’s PMG volumes have increased five-fold.

Moreover, PMG from the isomerisation facility is more environmentally-friendly due to the unit’s ability to convert the hazardous unsaturated compounds (benzene ring) into non-hazardous saturated compounds, i.e., cyclohexane ring.”

Byco is benefitting from the newlyestablished partnership between Byco and Bank Alfalah, a leading bank in Pakistan, which will see the launch of digital payments across the former’s retail outlets. Together, the two entities aim to break the shackles of financial marginalisation by digitising the retail landscape in Pakistan.

Zafar Shahab, Byco’s Chief Financial Officer, welcomed the collaboration: “I welcome the partnership between Byco and Bank Alfalah to roll out Alfa digital payments across our network of outlets, beginning with all 31 stations in Karachi. We hope to expand the use of digital payments

BYCO PETROLEUM

to facilitate our customers and also better document the economy.”

Mr. Azfar Saeed Baig

Friendly culture The dramatic changes in the socio-economic environment inhabited by Byco forces the company to constantly reinvent itself. Azfar Saeed Baig, Vice President AHR at Byco, has confirmed that the organisation has transformed considerably over the last five years. Despite the challenges related to the phasing out of HSFO demand and the constantly evolving fuel standards, Azfar expressed his confidence that Byco has the size and scale to take on these issues, relying on its in-house expertise, experience, and skills.

“One of the key strategies to enable our industry to surmount such challenges is to develop our human resources,” Azfar reasoned. “Only a visionary and resultoriented leadership, together with highly professional teams, can take the refining industry to new heights. We are committed to preserving a company culture where employees feel like part of a family when they work here. We have a very friendly

OPECS OPECS (Oil Petroleum Energy Carrier Services) is an independent, global ship (tankers) operator, incorporated in Pakistan in 2016.

Our core business is the transportation of crude and petroleum products. We are custom house Shipping Agent for all Pakistan ports, and we believe strongly in trust and transparency. We are an all-round, integrated service provider to the maritime industry. We aim to provide the very best services to our clients, and to become their preferred choice, by offering long-term experience and transparency in a turbulent and volatile freight market.

We practice and maintain our safety management system based on international safety management standards and ISO 9001/ISO 14001 certifications. In the event of any marine causality within one of Pakistan’s ports, we have sufficient structures in place to minimise damage to human life, the environment and to property.

ENERGY,OIL&GAS

energy-oil-gas.com

29

and warm environment where our staff are supportive towards each other.”

Discussing the potential difficulties Byco may have to address in regards to attracting and retaining new talent, Azfar posited: “With more and more millennials and now Generation Z joining the workforce, companies will have to adapt themselves and offer an experience that is at once stimulating, challenging, and rewarding. In my view, this is the way futuristic companies must take on the challenge of talent management that we have already begun to face.”

Byco incorporates innovation in its approach to sustainability as well. The year 2025 has been marked as the year when Pakistan might turn from a ‘water-stressed’ country to a ‘water-scarce’ country. Having only a 30-day water storage capacity, while the water shortage is at 106 million gallons

30

ENERGY,OIL&GAS

energy-oil-gas.com

per day, the need to conserve and reuse water has become more pressing than ever.

Carbon neutral ambition Placing sustainability at the core of its values, Byco has sought ways to tackle Pakistan’s water scarcity challenges. In November 2019, the company signed a memorandum of understanding (MoU) with the United Nations Development Programme (UNDP) to undertake a series of water conservation initiatives by saving water normally wasted at car wash stations, and reusing it. Having developed a cost-effective water recycling prototype that recycles 5000 litres of water, the UNDP was lent a hand by Byco, with the latter committing to expand the installation of the waste water recycling plants at car washes across its retail network.

Byco is conscious of global warming and therefore has adopted an innovative

PROFILE

BYCO PETROLEUM

– reassessed. Renowned for its proactive approach and trusting of its workforce, however, the company looks poised not only to weather brewing storms but continue to thrive in the years to come.

Byco Petroleum www.byco.com.pk .........................................

Services: Oil refining; petroleum marketing; petroleum logistics

approach to addressing the challenge of carbon emissions as well. “By planting Urban Forests using the Miyawaki Method, developed by the renowned Japanese horticulturist Dr. Akira Miyawaki, Byco intends to offset its carbon emissions completely and become Pakistan’s first carbon neutral oil company,” Azfar comments.

Throughout its first quarter century, Byco has demonstrated an impressive nimbleness and adaptability, in the face of the very tough conditions it has had to grow its business in. The challenges have tempered the company’s spirit and led Byco to develop a strong resilience, inspiring a confidence in its team that it has the historic experience to successfully surmount headwinds. Byco knows that problems will arise in the course of doing business. Strategies must be evolved accordingly, and ways of thinking business ENERGY,OIL&GAS

energy-oil-gas.com

31

Creating positive change

32

ENERGY,OIL&GAS

energy-oil-gas.com

PROFILE

The Oliver Family of Companies, comprising Oliver Valves Ltd, Oliver Valvetek Ltd and Oliver Twinsafe Ltd, has evolved over four decades to become a world leader in the manufacture of instrumentation, subsea and pipeline valves.

With the business last being featured in Energy, Oil & Gas in 2009, today’s market is a very different environment, and The Oliver Family of Companies (Olivers) has had to demonstrate an admirable level of flexibility and forward-thinking in order to move forward and not just survive, but thrive. EOG spoke to Colm Kane, Managing Director, to find out more details about how the company has adapted operations to address difficult conditions and restore its growth trajectory.

“The oil sector suffered a major collapse in 2014 when the price of oil per barrel reduced from a significant height, to an extraordinary low in early 2016. Businesses involved in the oil industry had to reassess their position, realign their cost base and ride the storm as new investment in oil extraction collapsed.

Our business had a healthy turnover in the financial year of 2013/2014, which then dropped by below half at the end of 2016.

It was a difficult time as we made our own adjustments to our business, restructuring until the growth came back.

“Although the recovery in the oil price has been slow, which made investment in the industry hesitant, the price increased steadily from late 2017 to today. As renewed

OLIVER FAMILY OF COMPANIES

confidence in the oil market grew, our recovery started and in 2017/2018 we saw an increase in turnover of 20 per cent.”

During the market downturn, Olivers concentrated heavily on developing its product range, spending time on value engineering processes, evaluating efficiencies and reducing cost. As a result of this approach, the three divisions were well placed for an upturn in the market, allowing them to be at the front of the field when the market increased. “Without this forward-looking philosophy we would not have been ready for what is turning out to be a very buoyant market where demands for lower prices and shorter lead times are growing,” Colm agreed.

Facility expansion The team at Olivers had positioned the company where it needed to be, and as oil operators all around the world began reigniting previously dormant projects, Olivers was ready to deliver. “Late 2018 and into 2019 our turnover grew again by around 30 per cent,” Colm continued. “This resulted in a revised strategy involving the development of a very ambitious five-year plan, a strengthening of our management team and recruitment of over 70 additional employees. The plan included development of geographical targets, bringing new products to market faster than ever before and ensuring our capacity could meet with renewed demands for our products.”

Colm Kane, Managing Director

We are renowned worldwide for our product quality and reliability. The R&D facility ensures all new valve designs are put through their paces before sales/production can release them to the market.

Tests are taken to extreme levels, way beyond what the valves will see in service, to ensure valves are fully proven

ENERGY,OIL&GAS

energy-oil-gas.com

33

PROFILE

Part of the above plan includes buying/ incorporating three new factory units on the Parkgate Industrial Estate in Knutsford, Cheshire in the UK. Olivers already operates from eight factory units on this site and the addition of the new space will help the business meet the increased demand it is forecasting for the future. “As the company regrows, our ability to keep pace with the need for space, equipment and people continues to be reviewed,” expanded Colm. “As part of our long-term plans we looked ahead into this new decade, and we foresaw that our factory space needed to be increased.”

Quality and reliability The three new factory buildings, which represent approximately 20,000 sq. ft of space, will be purpose-built for Olivers and are planned to be completed by September 2020.

With the company able to plan the new factory from the ground up, it has been able to design an eco-friendly manufacturing facility, with an ideal layout to allow continued increases

OLIVER FAMILY OF COMPANIES

in productivity and resulting in further employment opportunities.

It has also enhanced this with investments in new test equipment and machinery, which further supports the new state-of-the-art Research and Development (R&D) facilities that were opened in a new building in May 2019. “We are renowned worldwide for our product quality and reliability. The R&D facility ensures all new valve designs are put through their paces before sales/production can release them to the market. Tests are taken to extreme levels, way beyond what the valves will see in service, to ensure valves are fully proven,” explained Colm, as he highlighted the importance the organisation places on both quality and reliability. He also highlighted an important piece of equipment: “The new R&D facilities have in their array of specialised equipment an automated test rig, which allows the remote control of the rig 24/7 for testing valves and includes gathering the test data, which is continually being recorded.”

Having established a reputation for creating not just an innovative range of valves for

ENERGY,OIL&GAS

energy-oil-gas.com

35

Keeping the world moving with precision VK INDUSTRIES

Precision manufacturing for the global oil, gas and petrochemical industries

VK INDUSTRIES

56F, 7th Street, Sector 1, Sidco Industrial Estate, Ambattur, Chennai 600098, India, Tel: +91 9444418190 Email: vkindustries@gmail.com | www.vkindustries.co.in

PROFILE

demanding applications, but for valves that are known for ‘being the best in the world’ Olivers has to work hard to continuously reinforce this position. Therefore, it maintains a steady stream of highly innovative new product launches, which are not released until they have been tested sufficiently to prove their suitability and ability to perform.

“New valves are now being developed at the R&D facility for low and high temperatures beyond our previous offering and we are undertaking cryogenic tests for extreme deployment depths,” noted Colm. “Recently, for example, the Rotary Gate Valve was released, and this underwent many months of testing to prove its capability and robustness, and places it as the market leader in terms of excellence and application.”

Major contract win However, it’s not only new valves upon which Olivers is working, as the business also offers a servicing option, which one Far Eastern client recently utilised. “An Oliver Twinsafe Valve 10” Bore X 600 class Trunnion DBB valve in Duplex material was returned to us with a query regarding whether it was a viable option to be refurbished,” explained Colm.

“The valve went into service in the summer of 2009 and had been exposed to the elements for over ten years. When the valve was tested, it was fully functional and when stripped the general condition was excellent. This was a great testament to the design and quality of our products.”

With the last two years proving pivotal to the history of Olivers, 2020 is already shaping up to also be a significant contributor to the company’s success, with a noteworthy contract win occurring within

OLIVER FAMILY OF COMPANIES

the first two months. The team at Olivers are understandably delighted with this outcome, representing as it does both the culmination of months of hard work from all departments and one of the biggest orders ever placed with the company. The new deal saw a major international EPC company based in the Middle East place an order valued in excess of £10m for the supply of more than of 1200 Double Block & Bleed valves to the Arabian Gulf. The project will run for approximately one year with deliveries being progressively sent up until completion in February 2021.

V.K INDUSTRIES V.K industries is a precision manufacturing company focused on delivering close tolerance parts to valves in the global Oil, Gas and Petrochemical industries.

Recognised as one of the most reliable firms for machining tighttolerance parts, from exotic materials V.K industries delivers precision parts for valves, which function on flow regulation, pressure reduction for fluids, one-way flow, and toxic liquid flow.

Machined bodies from V.K industries form critical components for valves also used in sub-sea environments withstanding the effects of raised external pressure, salt-water corrosion, and bubbles.

The firm’s precision-machined high-quality parts help valves reduce potential leak paths and minimise maintenance requirements.

V.K industries is one of the very few firms approved for precision machining solutions by valve manufacturers from the UK. It’s a privilege to have been associated with Oliver Valves for the past 14 years as one of its trusted machining partners, delivering precision parts for all critical projects.

“Movement is the essence of life” We at VK industries keep the world moving with precision

ENERGY,OIL&GAS

energy-oil-gas.com

37

Colm was quick to credit the team at Olivers as one of the main reasons for its success. “Our employees are a significant part of our business, and our motto of ‘it can be done’ runs true within every department in the organisation,” he said. “We have over 100 employees who have each given the company over ten years’ valuable service, and this year alone we have three employees reaching 35 years with the business, which is absolutely amazing!”

Key strengths This longevity and staff loyalty could in some part be attributed to Olivers’ team ethos, which encourages trust and respect for each other’s role, and recognises that everyone is there to help each other. “The hierarchal levels are very flat, which allows senior management to be heavily involved, hands-on and approachable to discuss ideas, improvements and concepts at a moment’s notice,” added Colm.

Furthermore, Olivers has sales offices and employees strategically placed globally,

38

ENERGY,OIL&GAS

energy-oil-gas.com

meaning that it has the ability to meet with customers face to face quickly and efficiently in all regions/continents. “This gives us a greater footprint on the oil and gas sector worldwide and remains a focus point going forward,” Colm explained, before sharing details of some of Olivers’ additional strengths: “Strong cash management remains key to success and one that served the company well during the worldwide financial crisis in 2008. Having very little debt certainly helped us through at a critical time.

“The process of reinvesting profit back into the business bodes well for the foreseeable future, with the new R&D centre that we discussed earlier being a perfect example. This is a facility that makes us proud and one that has received a lot of positive press from our customers, so we certainly view that as money well spent.”

Equally, the quality of the products is also key, as Olivers has built its reputation for valve superiority and reliability over 40 years and it has to maintain and improve on these

PROFILE

OLIVER FAMILY OF COMPANIES

standards in order to continue to hold its market leading position. Colm concluded by summing up a few of the plans Olivers has created in order to sustain the momentum it has gained over the past year. “Our focus will be on getting new products to market quickly, significantly growing globally with specific geographical targets, developing the relationships we have with our major customers and continuing to increase the intellectual capability of the company.

“This year is already well placed to achieve a further 40 per cent increase in turnover, which is phenomenal growth for the company. The excitement that this is generating within the business is plain to see and we aim to offer such high-performance levels to our customers that its makes them come back time and time again.”

Oliver Family of Companies

M SEALS UK M Seals supplies high quality sealing products for industrial use globally, and to the UK market through its three technical distribution centres in Leicester, Manchester and Newcastle. The company supplies an extensive range of sealing products with the relevant industry approvals for the oil and gas, and renewable energy markets. Norsok M710 certified materials are available, including PTFE & Peek 450G, with many o-rings available from stock, including FFKM. Die-formed graphite rings, packing sets and graphite tapes are also available, as are a wide range of gaskets. M Seals uses its extensive knowledge to advise and provide solutions.

www.valves.co.uk .........................................

Products: One of the world’s leading designers and developers of valve solutions

ENERGY,OIL&GAS

energy-oil-gas.com

39

Fuelling South Africa Commissioned in 1971, National Petroleum Refiners of South Africa (Natref) is South Africa’s only inland refinery, situated approximately 80km south of Johannesburg, in the town of Sasolburg in the Free State.

The crude oil that is destined for Natref is offloaded in Durban via floating Single Buoy Moor (SBM), which is co-shared with other oil companies. The crude is stored in 15 crude storage tanks in Durban, then

40

ENERGY,OIL&GAS

energy-oil-gas.com

pumped approximately 600km in distance and approximately 5000ft in elevation to the Natref oil refinery.

Due to its inland location, near the industrial heartland of South Africa, the refinery is sited in a place where the market for heavy fuel oil is quite limited. Therefore, since it was founded, Natref has needed to be able to get the most out of crude oil, and this requires state-of-the-art equipment. By utilising the bottoms upgrading refining

PROFILE

process using medium gravity crude oil, the refinery has the capability of producing 70 per cent more white product than coastal refineries, which have to rely on heavy fuel oil.

Having commenced operations almost half a century ago, it is no surprise that in that time period the refinery has undergone several expansions and upgrades. Mr Dayanand Rajaram, Senior Vice President at Natref, shared some of the more technical

NATREF

details about the refinery’s evolution and current capabilities: “The refinery was originally designed as a 55,000 bbl/d refinery.

In 1976, it was expanded to 75,000 bb/d, and then to 86,000 bb/d in 1993 and to 108,000 bb/d in 2002. In 2005, the refinery was upgraded to clean fuels 1 specification.

In 2016, the refinery started producing 50ppm diesel.

“The refinery configuration has a Solomon complexity factor of 10.9. As mentioned ENERGY,OIL&GAS

energy-oil-gas.com

41

earlier, it has a significant bottoms upgrading unit (residual crude desulphurization - RCD), as well as the capability for processing vacuum residue and atmospheric residue from the crude columns into FCC feed. In addition, the refinery also has a hydrogen reformer unit, a hydrofluoric acid (HF) unit, and a bitumen unit.”

He continued with some more recent key projects: “A number of upgrades to infrastructure have been completed, with the human machine interface (HMI), and distributed control system (DCS) upgrades undertaken in the past two years. We have implemented health monitoring on key rotating equipment by upgrading the Bentley system, and we have installed state-of-the-art training simulators on two production units, with a further view to link this with virtual reality to improve operator training. Solutions that provide online monitoring of critical operating parameters to prevent process safety incidents have also been installed.

“At the moment, the refinery is piloting and rolling out a wireless plant inspection tool that will assist operators and maintenance staff in improving their effectiveness. These are among some of the more recent changes to improve the data gathering, decision-making and the training of employees.”

42

ENERGY,OIL&GAS

energy-oil-gas.com

PROFILE

Shareholder support The refinery has also just completed a stateof-the-art hydrofluoric acid cloud mitigation project, to control any significant releases of product. The installations consist of 18 spray monitors, three boundary water curtains, 20 point-source detectors and eight perimeter detectors. This has improved the mitigation actions significantly on the unit, and will increase the safety response in the event of an unforeseen release.

Thanks to the success of these improvement projects and the efforts of its expert team of staff, FY19 (July 2018 to June 2019) was a benchmark year for Natref,

NATREF

with the refinery achieving its best volume throughout performance in the past eight years. Reliability, availability and air quality were all highlighted as areas to improve and Dayanand noted that to achieve the FY19 results, the groundwork of defining the targets, work processes and requirements was laid approximately two years ago. “Using the Solomon benchmark data, and tracing the bad actors affecting previous performance, the targets were set and divided into quarterly milestones. Recognition was also given to the fact that our employees are our most valuable assets and the results could only be achieved by taking them along on the journey.

ART HYDROPROCESSING ART Hydroprocessing™ or ART®, a Chevron and Grace joint venture, is a leading supplier of hydroprocessing catalysts that produce cleaner fuels. ART offers a complete portfolio of resid hydrotreating, hydrocracking and lubes hydroprocessing, and distillate hydrotreating catalyst technologies through a global manufacturing network. ART combines Chevron’s extensive expertise in refining operations, catalyst technology and development, process design leadership, and licensing with Grace’s materials science, specialty chemical manufacturing, and global sales and technical service strengths, to improve refiners’ profitability, like for example NATREF, through catalytic solutions that improve the quality and yields of fuels refined from a wide variety of feedstocks.

ENERGY,OIL&GAS

energy-oil-gas.com

43

“The alignment of the various levels of the management teams to these goals was an important step in the process. In addition, the alignment of the broader organisation to the goals was completed. The desired performance was contracted with people in various KPI sets and the relevant

44

ENERGY,OIL&GAS

energy-oil-gas.com

measurements made accordingly.�

Looking specifically at air quality and environmental compliance, Natref, with the support of its shareholders, is in the process of implementing technology to reduce its foot print. A number of the air quality compliance projects are in execution and expected to be

PROFILE

on line in the committed time frame. Natref is using technology that is available to the greater refinery industry worldwide, making the implementation easier to get to the final compliance commitments.

The shareholders referenced above (Sasol Oil and Total South Africa) play a very important role in the operations of Natref, as the refinery is a joint venture between the two businesses and it operates as a toll processing facility on their behalf. “No commercial discussions related to products and purchases are done

by Natref, as each shareholder manages their markets independently,” emphasised Dayanand. “Crude is received from each shareholder at the Natref gate, processed into products and custody handed back to the shareholders at the point of dispatch.

The mandate on safe operations, complying with applicable legislation, rests with the management of Natref, guided by the board and sub-committees of the board. Various mandated meeting structures are in place to ensure that the best safety, operational and technical guidance is vested in the business.”

He also noted that the shareholders have played a key role in assisting with technical challenges as and when they have arisen, helping with a speedy resolution.

make to the success of South Africa as a whole. “South Africa is a net importer of refined products,” explained Dayanand. “We therefore have a significant part to play in the refinement of crude into motor and aviation fuels. The location of the refinery also services an area of the country that does not have other close proximity refiners.

“We make an important contribution to the regional energy mix, but we are aware that the wider oil industry in South Africa, like most of the refineries around the world, operates in a constantly changing landscape. Responding to these changes in a timely manner is crucial for the industry going forward. The evolution of technologies, changing levels of technical skills, a connected world, and faster responses to environmental challenges all require the refining industry to adapt more quickly and become more agile.” In the short term, Natref is executing several capital projects to meet commitments environmentally and improve its business performance, and going forward it looks highly likely to set further benchmarks for excellence in its sector and in South Africa.

NATREF

Natref www.total.co.za/discovertotal/total-south-africa/ natref-refinery .........................................

Services: South Africa’s only inland crude oil refinery

Valuable contributors Sasol Oil and Total South Africa will continue to guide and support Natref going forward, as it undertakes feasibility studies around South Africa’s planned clean fuel standards and regulations, and evaluates and implements energy efficiency improvements to reduce greenhouse gas emissions. “Together with Sasol, we are also engaged with the wider community, supporting various interventions such as dust suppression, reducing wild fires, and recycling,” added Dayanand, shedding some light on the corporate social responsibility side of the business. “We have also implemented changes in our operations to improve our water consumption.”

In broader fiscal terms, Natref is an important contributor to the local economy. “We employ 650 people directly and approximately 600 contractors and up to 3000 people during shutdowns and other projects,” agreed Dayanand. “Further jobs are created in a broader context by the road delivery network, and we also contribute significantly to the local municipality in various forms of taxes.”

Looking out further than the Sasolburg area, Natref has a larger contribution to ENERGY,OIL&GAS

energy-oil-gas.com

45

Low emission ambitions

In April 2019, waste management specialist Cory Riverside Energy appointed former Interserve director Dougie Sutherland as its new CEO. When we asked Dougie what attracted him to the new role, his answer was simple. “One of the deciding factors was Cory’s strategy around the river,” he said. “As a business, it is quite unique.”

46

ENERGY,OIL&GAS

energy-oil-gas.com

Cory’s relationship with the River Thames dates back to 1896, but in 2020, the company sees the river as a green highway of the future. “Looking ahead, there is going to be more and more pressure, particularly in London, to get vehicles off the road, and the River Thames is a perfect natural resource to support businesses,” Dougie explains.

PROFILE

CORY RIVERSIDE ENERGY

Dougie Sutherland - CEO

We provide an important public service and there remains a lack of infrastructure to deal with our waste. The new facility would be a strategic asset.

It’s not just the waste, but also the increased contribution we could provide to the UK’s baseload

Today, Cory uses the Thames to transport London’s waste on a fleet of barges, before turning it into reliable, sustainable energy at its Belvedere energy from waste facility. The river-based infrastructure eliminates the need for up to 100,000 road journeys per year, reducing NOx emissions and contributing to a safer, healthier environment. “That’s why

we continue to invest in the river,” Dougie says. “What Cory is doing is fit for the future already in many ways.”

Currently, around three million tonnes of the UK’s waste is exported abroad. Of the remaining residual waste, around half goes to landfill and around half is sent to Energy from Waste (EFW) plants such as Cory’s. PoliticoENERGY,OIL&GAS

energy-oil-gas.com

47

economic factors continue to bring change and upheaval to the waste industry though, none more so than the Netherlands’ recent decision to increase tax on waste imports to €32 per tonne. “Around 1.8 million tonnes of our waste is imported by the Dutch,” Dougie states. “With these tax increases, and Brexit looming, the cost of exporting waste is becoming uneconomic. The question is, where does all the waste go?”

New facility plans The most eco-conscious solution to this problem would be the construction of more EFW plants. Since 2011, Cory’s Belvedere facility has produced a total of over 3.7 million MWh of electricity from waste – enough energy to power around 140,000 homes per year over that period and a significant contribution to the baseload required in the UK. The company hopes that the introduction of a second facility in the coming years will enable it to address the significant discrepancy between the waste London produces and the city’s ability to process it, an issue that Cory has labelled ‘the capacity gap’.

“Energy for Waste plants are all pretty well contracted to capacity, so a second plant of a similar size to the existing one would be an important milestone for us,” Dougie says. The company has submitted a planning application for the new facility and is currently awaiting approval from the secretary of state. If the proposals are approved, Cory hopes to begin construction in the first half of next year. The plant could be operational as early as 2024. “It’s such a big deal,” Dougie says. “We provide an important public service and there remains a lack of infrastructure to deal with our waste. The new facility would be a strategic asset. It’s not just the waste, but also the increased contribution we could provide to the UK’s baseload.”

Along with Cory’s existing facility, a new plant would play a role in the company’s district heating project. Strategic Infrastructure Development Director, Andy Pike, explains that the company is already in advanced discussions to take the scheme to the next level. “We’re actively in search of a strategic partner at the moment to work with us on district heating, from both the existing facility and the proposed new facility, out to the borough of Bexley and the Thamesmead area. It’s got potential to be one of the largest district heating projects in London.”

48

ENERGY,OIL&GAS

energy-oil-gas.com

PROFILE

District heating plays an important role in Cory’s emissions strategy, which remains at the core of all its activities. “There are good economic reasons behind the project, but it also helps to reduce our carbon footprint,” Dougie says. “The offset by generating heat into a network is very, very meaningful.”

Exciting times The importance Cory places on valuing its staff and ensuring their welfare is something that is paying off for the company. “We don’t struggle to recruit or retain,” Dougie states, though he thinks this may also be related to a public shift in perspective surrounding the importance of the environment. “People want to come and work for companies like ours. I suspect it probably wasn’t as cool to work for a waste energy company ten years ago, but

CORY RIVERSIDE ENERGY

now, it’s actually quite a cool place to be.”

It certainly is an exciting time to be involved with the company. At the end of 2019, Cory was named in The Sunday Times Top Track 250, a list of Britain’s top-selling, best-performing, mid-market growth companies. Dougie remains very humble about the achievement. “It was quite a surprise,” he says, “but any sort of recognition is always good.”

As London’s energy needs increase, Cory remains a key contributor to the diverse regional energy mix. With a potential new facility on the horizon, increasing the company’s capability to build on the circa 750,000 tonnes of waste it already turns into electricity per year, it certainly won’t be the last time Cory is recognised for its achievements.

Cory Riverside Energy

LOMAS DISTRIBUTION ENERGY FROM WASTE - SILO EVACUATION AND INDUSTRIAL CLEANING SERVICES A major part of our business is providing both routine and emergency cleaning and product evacuation services to our Energy from Waste customers.

Whether it be routine silo cleaning, confined space entry or emergency evacuation to deal with blockages and process failure, we have a fleet of Disab Centurion Vacloaders which are capable of evacuating hundreds of tonnes of material each day.

www.coryenergy.com ............................................

Services: Recycling, resource management and energy recovery

...with exciting plans for new developments, upgrades and refinery expansions on the agenda, the business can be viewed as a leading light for not just Pakistan but for the wider energy industry

ENERGY,OIL&GAS

energy-oil-gas.com

49

A revolutionary way of working

50

ENERGY,OIL&GAS

energy-oil-gas.com

PROFILE

AXIS ENERGY SERVICES

Axis has made significant investments into technology, namely our highspec equipment and real-time rig software, and predictive analytics on workover rigs, and into becoming a leader by implementing data and safety systems on snubbing units

ENERGY,OIL&GAS

energy-oil-gas.com

51

The common challenge facing shale plays across the United States in 2020 is the need to drive down costs and cycle times, while at the same time continuously pushing the limits of extended-reach wells. Fortunately, help is at hand in the guise of Axis Energy Services (Axis), which is pioneering a new model of completion and workover services.

Formed in 2018, following the union of three highly regarded well service legacy companies – TEC Well Service, Momentum Pressure Control, and M6 Energy Services – Axis today possesses offerings including 24-hour drill outs, pressure control and pumping services, as well as pressure control equipment rentals. “Our integrated, datadriven and training-focused approach delivers seamless solutions that drive efficiency and simplify operations,” begins Axis’ President and CEO, Dirk Lee. “Axis has made significant investments into technology, namely our highspec equipment and real-time rig software, and predictive analytics on workover rigs, and into becoming a leader by implementing data and safety systems on snubbing units.

“Additionally, Axis maintains a fleet of nitrogen pumping units to support a wide range of oilfield applications, brand new chemical mixing and injection units with built-in data acquisition to increase efficiencies during drill outs, and a new, diesel-powered torque and test service line.”

Focused services Prior to 2018, TEC Well Service, Momentum Pressure Control, and M6 Energy Services each provided superior services focused

52

ENERGY,OIL&GAS

energy-oil-gas.com

around the well, and through Axis the three combined to create one completions-focused, data-driven company that utilises new, purpose-engineered equipment optimised for long laterals. “With a focus on completions and workovers across the board, we can offer our customers the convenience of providing the rig, high-horsepower pumps, support equipment, and all necessary pressure control equipment – all on one invoice – as part of our standard drill out service,” Dirk continues. “With our headquarters based in East Texas, and major operations in the Permian Basin, South Texas, Ohio and North Dakota, customers can trust Axis to be where they need us, and provide every service they need around the wellhead, without having multiple third parties at one rig location.”

PROFILE

As Dirk goes on to detail, 2019 will go down as being a very good year for Axis.

“The oil and gas industry remains under pressure to reduce costs and improve efficiency as our customers struggle to live within their cash flow,” he says. “We think that Axis is uniquely positioned to support our customers through our data driven and analytics based services, which can lead to continuous improvements and reduce costs.

“During 2019, we also rolled out our proprietary Axis CORE® data acquisition system to about half of our fleet. CORE utilises a series of wireless sensors embedded in the rig and on key support equipment that allows us to capture all of the key data that we and our customers need to make better decisions. The equipment involves no additional rig up so it has zero impact on the

AXIS ENERGY SERVICES

time to rig up and move between wells. This data is available in real time to our customers on their computers, pads or phones.”

Some, but not all, of the data that is collected when doing frac plug drill outs includes average time to drill out a plug, average time to next plug, name of the frac plug, depth in the well, weight on bit, rate of penetration, pump pressure, swivel torque, rig mobilisation time, third party downtime and all company downtime.

Problem solvers By having a rich data source such as that provided by CORE, Axis has been able to learn several things that have significantly improved its own operations, while reducing its customer’s costs at the same time. “For example, we know that drilling out a plug

ENERGY,OIL&GAS

energy-oil-gas.com

53

only takes a few minutes regardless of the brand of frac plug,” Dirk details. “A much bigger challenge is the residual sand in the well that causes major delays in getting to the next frac plug to drill out. The delay can be 10-to-20 times longer than actually drilling out the plug. However, the sand needs to be removed from the well in order for the well to produce at the expected rate. Our highspec drill out rigs and pumps are designed to efficiently remove this sand debris while we are drilling out the frac plugs.

“We have also noticed that a lot of the delay in getting to the next plug is because the tool hand or well site consultant has a ‘rule of thumb’ that says, for example, to do a bottoms up pump sweep after every third plug drill out. A bottoms up pump sweep can take a minimum of 45 minutes to complete.

With the data we have now from CORE, we can tell based on rate of penetration and pump pressure when the ‘optimal’ time for a pump sweep is rather than depending on a rule of thumb that may no longer be valid.

We will begin working with our customers to see if we can safely reduce the number of pump sweeps during a drill out, which will save time and money.”

Another observation that Axis has made is that third party downtime is a much bigger problem than previously realised.

“Third party vendors might include the BOP

54

ENERGY,OIL&GAS

energy-oil-gas.com

providers, wireline companies, downhole motor vendors, or flow back companies. In this sense our operations, and indeed every vendor on the pad, is held up until these third-party vendors fix their problems,” Dirk adds. “On a two-to-three day drill out job, third party downtime can amount to between 10 and 20 per cent of the total time spent on the job. Through CORE we capture all of this downtime including the vendor name and the reasons for the downtime. We can then provide our customers with an overview of the job and identify whether there is a chronic performance problem with third party vendors which is costing the customer money.

“One of our customers said that ‘CORE is like having a second well site supervisor on the location’, and we are learning more everyday as we collect and analyse the data we are collecting through it. We continue to roll out CORE technology to more of our rigs and support equipment and develop the post-job reports and KPI reports that are most useful to our field management and our customers. We also continue to expand our service offerings to capture more revenue at the well head.”

New options Axis Energy Services has also recently added two new lines of service: Chemical Mixing and Torque and Test. “We have designed and

PROFILE

built a data-driven chemical mixing and injection system for use with either stick pipe or coil tubing applications that can reduce the cost of chemicals and increase efficiencies during drill outs by accurately controlling the injection rate of chemicals pumped downhole and using the data acquisition to blend the chemicals more precisely,” Dirk proclaims.

“We have also introduced a first-generation, comprehensive torque and test service to meet customer needs in all pressure testing applications. We’re focused on faster torque times and have developed a diesel-powered hydraulic booster system to accelerate torqueing and improve efficiencies, and are using a pressure testing pump powered by a pre-emissions diesel engine. Second-generation equipment will be introduced this year to include CORE technology, in order to record torque and test psi in real-time.”

AXIS ENERGY SERVICES

and Rental service line will mark the third new service line introduced in the past 12 months—Chemical Mixing, BOP Torque and Test, and now Fishing and Rental. Our goal is to be able to provide our customers an allin-one solution of integrated completion and workover services in order to efficiently and effectively drive down costs and cycle times.”

Axis will continue to grow and expand its service offerings in 2020 and beyond.

Axis Energy Services www.axisofs.com .........................................

Services: Well completion and workover services

Added value Axis believes that the US oilfield services market in 2020 has changed, and that a lower level of activity and customers finding themselves under spending constraints is the new normal. As a result, the company thinks that customers will be looking to align with vendors that can provide more added value in their services, while at the same time reducing cost. “We think Axis is uniquely positioned to take advantage of this new market reality by exploiting our CORE data system, identifying areas of further cost reductions, and partnering with our customers to provide them with the data they need to ensure their projects are completed on time and budget,” Dirk enthuses.

“We will also add a new Fishing and Rental service line of Axis this year. Our focus will be on providing unique solutions to fit customers’ needs in production fishing jobs, complex workovers, and fishing and rental needs for completions. Our Fishing

HORN EQUIPMENT COMPANY LLC.

Horn Equipment has been serving the oil and natural gas industry since 1979. Horn Equipment provides manufacturing/repair of BOP’s, valves, spools, flanges, and other well intervention equipment. Horn Equipment currently holds API Licensing in 6A, 16A, 16C, and Q1 Certification.

ENERGY,OIL&GAS

energy-oil-gas.com

55