Oceaneering International, Inc. (“Oceaneering” or the “Company”) (NYSE:OII) announced that it has entered into a Master Service Agreement with Heerema Marine Contractors Nederland SE (“HMC”) through December 2020. During this time Oceaneering will provide up to ten Remotely Operated Vehicle (“ROV”) systems with associated subsea tooling, engineering and technicians to support HMC’s global operations, including fixed and floating platform installations, platform decommissioning, subsea infrastructure and pipeline installations.
Photo courtesy: Oceaneering
The ROV systems will be installed onboard HMC’s deepwater construction vessels Aegir, Thialf and Balder; the semi-submersible crane vessels Hermod and Sleipnir (a newbuild vessel); and other additional support vessels.
M. Kevin McEvoy, Chief Executive Officer of Oceaneering, said, “We are very pleased to have been selected by HMC against a backdrop of what is a very challenging market environment. This is a position we have achieved through our customer focus and commitment to growing market share while safely providing state-of-the-art equipment, highly trained personnel, and complementary engineering services and products.”
Remaining true to its principle of innovation, Trelleborg’s marine systems operation has launched a new ISO17357-1:2014 compliant, high performance pneumatic fender designed to address the evolving needs of ports, terminals and offshore ship-to-ship transfer applications.
Trelleborg’s new quality assured fender features a thinner, lighter body for easier transportation and handling, improved netting and hemispherical ends designed to offer superior functional performance and enhanced continuity of end fittings for optimum deflection capability.
Richard Hepworth, President of Trelleborg’s marine systems operation, says: In addition to improvements in the design of the fender, materials have been engineered to ensure a stronger overall performance. After detailed research into optimum tire cord reinforcement, we have re-evaluated our materials to enhance fender performance.
Unlike other manufacturers who use synthetic tire cords for only the body of the fender and chafer fabric at both hemispherical ends, Trelleborg now uses 100% synthetic tire cord for the construction of the entire fender. This directly enhances the fender’s operational ability because synthetic tire-cord has a higher tensile strength than chafer fabric. By incorporating the synthetic tire cord into the entire fender, the stability, longevity, and shape retention of the fender are all significantly enhanced.
Demonstrating our best practice approach to delivering superior products that incorporate optimum, high quality materials, our new pneumatic fender goes above and beyond the minimum requirements of the ISO 17357-1:2014 standard which recommends the use of synthetic tire-cords but does not make it mandatory, added Hepworth.
Trelleborg not only meets but exceeds the demands of the ISO17357-1:2014 standard with quality assurance documents and test results shared in a comprehensive, fully-authenticated supporting document package. Proof data, inner and outer rubber material specifications and pressure test data are all included as standard for even greater peace of mind.
Many suppliers however utilize low cost, low quality, non-compliant materials and fail to perform stringent materials and product testing to the requirements of the ISO standard. For instance, for the external rubber layer composition of a fender which plays a major role in its longevity, many suppliers use rubber compounds which fail to comply with the new ISO requirement.
In addition, a large number of suppliers also turn to low cost recycled rubber-based compounds. Others use chafer fabric, a cheaper alternative to tire-cord. The chafer fabric is unable to provide Minimum Endurable Pressure (MEP) at 0% and 60% deflection, which is imperative for pneumatic fenders to work efficiently in harsh conditions.
Many suppliers also reduce the number of plies, or use a reinforcing layer made from a low-cost suboptimal combination of chafer fabric and tire cord as they lack the basic design concepts to produce high quality pneumatic fenders.
Specifiers should also be wary of inefficient, cost-reducing methods used by suppliers such as the use of a heating jacket instead of a mold during the curing process. It is also critical that specifiers are aware of manufacturers claiming to be supplying ISO17357-1:2014 compliant pneumatic fenders which are actually produced using the airbag construction method. Products constructed in this manner, are not compliant with ISO17537-1 and will not guarantee the level or longevity of performance of a true pneumatic fender.
To find out more about Trelleborg’s new ISO17357-1:2014 compliant, high performance pneumatic fender, download the Product Application Briefing now.
Trelleborg’s marine systems operation has launched a new survey aiming to assess the digital maturity of global ports. The Terminal Automation Audit is intended to determine how future ready international facilities are by examining how advanced the use of smart technology and data is across the industry.
The results of the survey will set the benchmark for a new industry assessment tool and feed into a report on the state of play in the industry now, with predictions for the future.
Richard Hepworth, President at Trelleborg’s marine systems operation, says: Changes in the shipping industry are posing new challenges to ports which automated technologies are very well placed to solve. As well as improving safety, reliability and efficiency, and reducing human error, automation can help to speed up loading and unloading: ultimately increasing efficiencies and saving money.
We’re keen to understand exactly where ports and terminals around the world sit in terms of their progression towards The Port of the Future whether they are preparing now to embrace and take advantage of new technologies. By developing a deeper understanding of the way they operate now, we hope to evolve our offering to best support them in future.
The Terminal Automation Audit takes the form of two surveys: one for terminal and port stakeholders, and a second for ship owners, builders and shipping lines. From terminal and port owners and operators, Trelleborg wants to understand the current uptake of automated technologies, ongoing optimization, data use and future planning.
From shipping stakeholders, Trelleborg is keen to learn how much importance is placed on digital technologies at marine facilities, and how much automation plays a role on board.
To have your say and set the industry benchmark, visit:
Qatar Petroleum (QP) announced on June 27, that it has concluded the competitive process which it initiated in 2015, for the further development and operation of its Al-Shaheen offshore oil field, starting July 2017.
As part of the announcement, QP said that the company that presented the best offer to meet QP requirements was Total.
The announcement was marked by the signature by QP and Total of the relevant agreements for the further development and operation of Al-Shaheen oil field, which was held under the patronage and in the presence of His Excellency Sheikh Abdullah Bin Nasser Al Thani, the Prime Minister and Minister of Interior of the State of Qatar.
Photo courtesy: Qatar Petroleum
The signed agreements included a Joint Venture Agreement (JVA) to establish a new Qatari company to be known as “North Oil Company” that will develop and operate Al-Shaheen oil field. The new company will be 70% owned by QP and 30% by Total.
A Development and Fiscal Agreement (DFA) was also signed between QP and the two parties to the joint venture, in which QP licensed the rights for the development and operation of the field, and for the production, sale and export of crude oil from Al-Shaheen oil field for a period of 25 years starting in July 2017.
Mr. Saad Sherida Al-Kaabi, President & CEO of Qatar Petroleum said “QP’s objective for the competitive process was to choose a partner that has world class technical capabilities that enable it to continue the development and operation of Al-Shaheen Field in partnership with QP, while at the same time ensuring the highest possible financial return to the State of Qatar.”
Speaking at a press conference held on this occasion, Mr. Al-Kaabi added: “The strong and serious technical and financial offers we have received during an industry downturn is a true testament to Qatar’s attractiveness reflected by its natural resources, safe investment climate, and for being such a great place to live in. This is another proof of Qatar’s ability to ensure the future successes of its development strategy, including that of its strategic natural resources.”
The President & CEO of Qatar Petroleum told reporters that the success of the competitive process is owed to the vision, guidance and strong support of His Highness Sheikh Tamim bin Hamad Al Thani, the Emir of the State of Qatar. He said “this process has -from day one- enjoyed the gracious guidance of His Highness to seek innovative ways to develop our country’s energy resources through successful international partnerships, to enhance the transfer of technology and knowledge, develop our young workforce in Qatar.”
Mr. Al-Kaabi thanked Maersk Oil Qatar for their “significant efforts and valuable contribution in managing Al-Shaheen field during the past quarter of a century and for the offer they have presented.”
He also thanked all the major oil companies that participated in the competitive process and encouraged them to participate in future opportunities in Qatar.
Al-Shaheen oil field is among the world’s largest oil fields. It has been producing oil for 22 years, yet holds the potential to produce a few-fold of the oil it has produced so far. It currently produces around 40% of Qatar’s crude oil, at around 300,000 barrels per day.
Global Maritime Consultancy & Engineering, a provider of marine warranty, dynamic positioning and engineering services to the offshore sector, has signed a contract with leading offshore wind developer Deepwater Wind to provide marine warranty services for the Block Island Wind Farm, America’s first offshore wind farm.
Services that will be provided include a technical review of all installation procedures and calculations; the survey and inspection of installation vessels; the witnessing of the installation of turbines and subsea cables; and the issuing of Certificates of Approval.
BIWF cable spooling - “Spooling of electrical cable onto the Cable Lay Barge ‘Big Max’”.
David Sutton, CEO of Global Maritime Consultancy & Engineering, said: “The potential for offshore wind in the US is huge – both in terms of jobs created and in providing cleaner energy into the national energy mix. Global Maritime is therefore delighted to be involved in such a prestigious project. As a leader in marine warranty services, we will help set the standards in offshore wind operations in the US, developing technical audits, assessing the readiness of operations, and reducing risk.”
Global Maritime Engineering Manager Thomas Smith backed up his words: "This is a significant milestone for Global Maritime as we look to demonstrate our expertise in offshore wind power. With Deepwater Wind having a number of other potential projects (as do others), we will continue to look for opportunities in this sector, both in Marine Warranty and in Engineering.”
Global Maritime has more than 30 years experience in Marine Warranty services, providing third-party verification, warranty and assurance services, audits/operational advisory services and representation. Services include certificates of approval (COA) and statements of compliance, where Global Maritime reviews all relevant engineering, design and marine procedural documentation; and surveys & audits. Global Maritime also has extensive experience and capabilities with engineering design and the analysis of a wide variety of offshore platforms.
Block Island is located 15 kilometers from the coast of the State of Rhode Island. The Block Island Wind Farm will consist of five GE Haliade turbines, each with a 6 Megawatt capacity, mounted on jacket foundation structures off the southeast corner of the island. A submarine cable will connect these to the island, while another cable will be laid to connect the island to the mainland, allowing excess power to be sold there. The farm is scheduled to become operational in November 2016.
Deepwater Wind is America’s leading offshore wind developer with the Block Island Wind Farm the first in the nation. Headquartered in Providence, Rhode Island, Deepwater Wind is actively developing and building a portfolio of offshore wind projects to serve multiple markets on both the East and West Coasts of the US.
Canadian Differentials Remain Strong Post-WildfiresCanadian oil sands supplies partially recovered in June, with production volumes approaching normal in early July. Canadian, Bakken and Rockies differentials remained strong, supported by the reduced supplies. A small Cushing crude stock draw in June will be followed by another small draw in July.
Gazprom is offering Ukraine’s Naftogaz somewhat lower gas prices than European suppliers for the third quarter, the head of the Ukraine's national oil and gas company Naftogaz has said. "The price offered by Gazprom is somewhat lower as of today than the one offered by European suppliers, though the market is very volatile and the price on the European market has started to lower," Andriy Kobolyev told reporters. Gas supplies from Europe are sufficient to provide Ukraine with reserves for the winter season.
Warmer weather so far during July has added 2 GWs of demand in Italy, with the week starting also with extra cooling needs of roughly 4 GWs. Day-ahead prices have, however, been generally in line with expectations so far in July, with maximum hourly prices also under check, most likely as thermal demand is being undermined by a weaker economy, generally healthy hydro levels, and more favorable gas pricing.
Coal pricing was mixed last week, although the fact that the market was able to hold onto sizeable gains posted in the prior week despite weaker oil prices illustrates that the market has found a vein of structural strength. Interestingly, deferred pricing for API#2 (Northwest Europe) and API#4 (South Africa) strengthened relative to the prompt, while the opposite was true of FOB Newcastle (Australia). PIRA continues to assert that 2017 prices are undervalued, although we are doubtful that prices can maintain the recent run in pricing. While China's thermal coal imports have turned positive year-on-year, India's imports remain notably below prior-year levels and do not look poised to emerge any time soon, particularly during the monsoon season.
The U.S. EPA finalized designations for the 2010 SO2 NAAQS, classifying 61 areas, compared to 66 areas from February’s proposal. The five areas where EPA has backed off for now (no final action is being taken) include four in Texas and one in Oklahoma — all of which had been targeted in February’s proposal (contrary to those states’ own recommendations). EPA’s final four non-attainment regions include areas with coal plants in Illinois, Maryland and Michigan. All but one of EPA’s finalized designations for Texas agree with state recommendations, bearish for longer-term gas demand and power prices in ERCOT, though Regional Haze regs still await the outcome of legal challenges.
With pollination in full swing for many, weather forecasts offer something for both the bull and the bear. Expected hot temperatures this week will be somewhat offset by additional precipitation for almost everyone in the Eastern Belt. Those west of the Mississippi River are forecast to receive even more rain on top of last weeks’ very impressive totals.
Production was over 1 MMB/D for the third time in four weeks. Corn prices tumbled after bearish USDA reports, boosting manufacturing margins. 2016-D6 RIN prices soar.
PIRA’s analysis of resource control policies around the world suggests a marked trend towards more investor-friendly policies in the upstream oil sector. Most notably, Saudi Arabia, Russia, and Nigeria all announced plans to sell stakes in state-owned upstream operators, and improved contractual terms could soon materialize in major producers, including Iran, the UAE, and Venezuela. The moves are being partially offset by prohibitive tax increases in some countries, in an attempt to support government revenues. But if prices remain below the levels of the past decade, as PIRA forecasts, we would not be surprised to see more widespread implementation of policies favorable for foreign or private investment.
This week’s economic developments highlighted the global economy’s resiliency as well as its potential vulnerabilities. The U.S. jobs data for June were constructive: they showed healthy gains in payrolls, but did not point to overheating in the labor market. The latest data on Chinese foreign exchange reserves were also positive for the outlook. At the same time, the U.S. dollar continued to strengthen, a fallout from the Brexit decision two weeks ago. In addition, the European banking sector remained under pressure.
Crude stocks drew just 320 MB/D this past week, about one third the level PIRA expected. We believe floating stocks in the Gulf of Mexico were reduced to support the high import level. With floating stocks now likely more normal, PIRA expects July imports to reflect FOB cargo loadings, which imply lower than June imports and larger stock declines. For next week, we have crude stocks falling 620 MB/D with imports at 7.85 MMB/D.
The prospects for heavy summer cooling loads should favor a market “buying the dips,” despite prices retracing last week’s gains. Indeed, a sea change in sentiment has been on display as of late, whereby expectations for expanding cooling degree days (CDDs) have positively colored speculative positioning and price. Certainly, the latest snapshot of open interest in NYMEX/ICE futures encapsulates the shifting environment, which has seen Henry Hub (HH) prices rally ~30% month-on-month. Most notably, the long-to-short ratio between non-commercial longs and shorts continues to push deeper into new high ground, rising to ~1.1, the highest level since 2014.
In recent months, several utility-scale solar PV projects have been announced at ultra-low prices, raising questions about downside risk to natural gas and other power sources. As a result, PIRA recently raised its 2025 U.S. solar generation outlook 41% above the previous outlook from fall 2015. However, PIRA does not see substantial downward medium-term flexibility for U.S. utility-scale solar PPA prices below current subsidized levels, assuming a link to fundamental economics. Nevertheless, in regions with strong insolation and meaningful incentive mechanisms, solar will continue to pressure other power sources as it continues to grow from its small base.
California carbon prices were up in June vs. May, but remained below the auction floor. Declines in open interest suggest that market players are not switching to the secondary market for procurement, but rather refraining from taking new positions altogether. There is little incentive to purchase allowances at the August auction. Re-offering of unsold consigned allowances raises the auction quantity and will require a higher bidding volume to clear. PIRA does see pricing once again exceeding the auction reserve this year. Cap-and-trade regulatory amendments will be released July 12th, addressing post-2020 caps and allocations, linkages and also unsold allowances.
Inventories build by 390 thousand barrels the week ending July 1. PADD V received approximately 2.9 million gallons of imported ethanol from Brazil, only the second week this year in which imports were reported.
The 2016/2017 corn and soybean acreage numbers have turned into “knowns” for the July WASDE, but higher-than-expected old crop corn and soybean supplies in the Quarterly Stocks report just a few days ago may have more than a few scratching their heads at the World Board. Add to the mix these extremely fragile markets, and Tuesday’s outcome is far from a certainty in PIRA’s opinion.
Financial stress continues to lessen post-Brexit. On the week, the S&P 500 flirted with record highs, while volatility declined and emerging market debt prices rose sharply. The dollar retains a mixed upward bias. It has continued to strengthen against the British pound and some of the Eastern European currencies. However, it has weakened against a host of Asian currencies.
Crude runs rose on the week as maintenance continues winding down. Crude imports moved higher by 0.9 MMB/D and crude stocks built 1.5 MMBbls. Finished product stocks built 1.1 MMBbls, with increases in all the products other than gasoline. Gasoline demand was relatively strong and stocks drew, while gasoil posted a significant stock build on lower yield and exports. Refining margins have remained soft with little barrel support other than fuel oil and naphtha.
Even with send-outs sputtering into the N.W. European market during the shoulder months of the late second and early third quarters, the need for access to the liquid pricing hubs at the Dutch Title Transfer facility (TTF) U.K. NBP has never been more pronounced. The Atlantic Basin market stands poised to absorb some 90-bcm/yr. of new supplies by 2020 (not including Yamal), and sellers are extremely active in securing a portion of this total.
The horizontal oil rig count reached a trough in mid-May. Despite this, shale production is not expected to immediately return to growth. PIRA expects the rig count to continue increasing at a gradual pace for the balance of the year and beyond. An estimated 400 horizontal oil rigs are currently needed to maintain production, which is 128 rigs higher than the current count of 272. Production is expected to shift to growth by 2Q17. On an annual basis, PIRA expects shale crude and condensate production to decline 330 MB/D in 2016 and 60 MB/D in 2017. This represents a 70 MB/D upward revision in 2017 versus our June Reference Case.
After gas demand in the U.K. finally grew last year for the first time since 2010, many hailed it as a case when demand finally bottomed out. Gas burn is now getting strong support in the U.K. in the form of a £18.08/ton carbon floor and coal-fired power stations are getting shut down. Future growth prospects hang on power sector growth, but the upside appears to be limited, particularly from the perspective of National Grid.
Mont Belvieu propane prices narrowly beat out broader energy markets by declining 5.7% on the week to settle near 50¢/gal (August). Butane futures fell in line with WTI (-7.3%) while ethane prices dropped nearly two cents to 21¢, the lowest level since May.
The overall global equity market was unchanged for the week, with U.S. market gains offsetting weakness elsewhere. Gains in the U.S. market were broad based across most of the tracking sectors, except energy. Housing, retail, and consumer discretionary were the strongest performers. Internationally, the performance was mixed and tended to be weaker. Asia and Europe both displayed aggregated declines on the week of 1.2-1.5%.
Oil prices fell $3.70/Bbl this past week with time spreads getting crushed on both sides of the Atlantic. There was not a specific story to point to but just a host of negative news. PIRA's outlook for the week ahead is that the market will continue to be range bound and should therefore find support within a couple of dollars from here.
In June 2006, PIRA put forward a simple model to approximate the method used by some major oil companies to evaluate long-term investment projects. We have updated the results and not surprisingly prices are a lot lower.
The information above is part of PIRA Energy Group's weekly Energy Market Recap - which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.
GRAY, La. – Danos’ fabrication facility in Amelia now features on-site instrumentation and electrical services, including automation, safety and control systems.
“As a result of adding I&E capabilities to our Amelia yard, our customers can now access an even broader range of services – all in a single location,” said Mark Danos, vice president of project services.
Danos' Amelia fabrication facility offers an integrated line of services, including materials management, storage facilities, coatings services, project laydown areas and covered warehouses. With the addition of I&E services, the Amelia facility can also offer customers on-site integration of automation systems, control panels, and installation and maintenance for a broad range of control and electrical systems. This allows Danos to better serve customers in the upstream, production, midstream and hydrocarbon processing markets.
Located on 175 acres along Bayou Boeuf, the facility features 120,000 square-feet of under-roof fabrication area that can accommodate large-scale custom fabrication projects of more than 1,000 tons. Five thousand linear feet of bulkhead and 18 feet of water depth enable easy loading and receiving via barge. Danos also has a second I&E office located in Carencro, La.
Noble Energy, Inc. (NYSE: NBL) ("Noble Energy" or "the Company") announced on Tuesday, July 5, 2016, that it signed a definitive agreement to divest a 3 percent working interest in the Tamar field, offshore Israel, to the Harel Group ("Harel"), a leading insurance provider and pension manager in Israel, in partnership with Israel Infrastructure Fund ("IIF"), Israel's largest infrastructure private equity fund.
The transaction value of $369 million is based upon a gross pre-tax Tamar valuation of approximately $12 billion and is subject to purchase price adjustments between January 1, 2016 and the closing date. Closing for the transaction is anticipated in the third quarter of 2016, subject to customary terms and conditions, with after-tax proceeds received expected to be approximately $275 million. Under terms of the agreement, Harel and IIF have the option to elect, before closing, to purchase an additional 1 percent working interest from Noble Energy at the same valuation.
Image courtesy: Noble Energy
Gary W. Willingham, the Company's Executive Vice President of Operations, commented, "This transaction reflects the inherent value of our producing Tamar asset, which reliably fuels more than half of Israel's electricity generation today. It also highlights the potential of our other undeveloped Levant Basin discoveries, which share similar reservoir and well deliverability characteristics and are poised to bring needed energy to a region which is fundamentally short natural gas. We are excited about partnering with Harel and IIF, which bring additional leading Israeli investors into the project. These proceeds further bolster our balance sheet in the near-term and will contribute to our upcoming capital investments in Israel, including our initial investment in the Leviathan project."
Noble Energy and partners are planning to drill and complete an additional development well at the Tamar field in response to the continued increasing demand and outlook for natural gas usage within Israel, as Israel displaces coal for clean-burning natural gas. Drilling is anticipated to commence in the fourth quarter of 2016. The additional producing well will further enhance redundancy while meeting maximum deliverability for extended peak demand periods. There is no material change to the Company's overall 2016 capital program.
Prior to the announced working interest sale, Noble Energy operated the Tamar field with a 36 percent working interest. The Company is carrying out an 11 percent sell-down of its interest in the Tamar field in accordance with Israel's approved Natural Gas Regulatory Framework. Noble Energy anticipates the sale of the remaining 7 to 8 percent working interest over the next 36 months.
Following completion of this sell-down process, Noble Energy will retain a 25 percent working interest and operatorship in the Tamar field, which has recoverable gross mean natural gas resources of 10 trillion cubic feet (Tcf). The Tamar field sold 252 million cubic feet per day, net, of natural gas and generated net pre-tax income of $318 million for Noble Energy in 2015. Noble Energy also operates the Leviathan field, offshore Israel, with a 39.66 percent working interest and the Aphrodite field, offshore Cyprus, with a 35 percent working interest. The Leviathan field has an estimated 22 Tcf of recoverable gross natural gas resources, while Aphrodite holds an estimated 4 Tcf of recoverable gross natural gas resources.
Driven by its purpose of safeguarding life, property and the environment, DNV GL has officially opened a new, state-of-the-art training center at its large-scale testing and research facility at Spadeadam in Cumbria, UK. It was opened by The Rt Hon The Lord Cullen of Whitekirk KT. The international oil & gas advisory and classification society is also inviting participation in a new joint industry project (JIP) to improve cost-efficiencies in explosion protection designs for process areas with testing to take place at the site.
More than £3 million has been invested in the Spadeadam Testing and Research center to enhance its offering to perform rarely available trials in a controlled and secure ‘real-life’ environment. The site features some of the world's most advanced destructive and non-destructive test facilities. The new training and conference facility will enhance experiential learning for the oil and gas, chemical, utilities and security industries.
Elisabeth Torstad, CEO, DNV GL – Oil & Gas, said: “While the industry is understandably preoccupied with generating shorter-term value, we must be vigilant in ensuring safety remains as a top priority. Our challenge is to continue giving the message to clients that cutting costs without understanding the bigger risk picture can end up being ineffective, and ultimately very costly to the business.
“The primary role of the Spadeadam Testing and Research centre is to provide our clients with the knowledge and understanding to ensure risks are reduced and operations are safer. It is the availability of this infrastructure that allows Spadeadam to respond so effectively across a number of sectors.”
The Rt Hon The Lord Cullen of Whitekirk KT, said: “I welcome the creation of this conference centre for the support of training. Hazard awareness is essential for the successful management of safety in the interface between people, plant and equipment, with which they have to work.”
Spadeadam will run full-scale experiments, using available test rigs, for a new DNV GL-led JIP, CostFX, to investigate cost-efficient explosion load descriptions for process areas. The project, which is still open to new participants, is driven by a need to improve and align knowledge between HSE and structural disciplines on explosion load criteria. The aim is to reduce complexity and over design in current models and methodologies for explosion protection, while balancing demand for valid, accountable safety margins. The results will be used to generate standards and guidelines to allow structural engineers to pre-define design explosion loads for standard installations, mitigating the need for costly, specialist analyses. For non-standard installations, a direct link from complex explosion load assessments to structure response and design analyses will be provided. Overall saving in project execution, duration and steel thickness is foreseen, while areas where increased safety is needed will be identified - providing both increased safety and reduced cost.
Work carried out at the site, which is the largest facility of its kind in the UK, consists of confidential, large-scale, major hazard tests, including flammable gas dispersion, fires, explosions, pipeline fracture tests, blast and product testing in a safe and secure environment. Hari Vamadevan, Regional Manager, UK and West Africa, DNV GL – Oil & Gas, said: “The demonstrations today, showcasing an explosion simulation and a pipeline failure, have been a real testament to the capability of the centre at Spadeadam. The ability to show first-hand the reality of these types of scenarios shows just what can happen when things go wrong. Our highly specialised hazards awareness courses demonstrate how this can be prevented and that the experience and variety of work being carried out is unrivalled.
“Although the oil and gas and other industries are facing challenging times, safety is one area which cannot be compromised and it is important that we provide an environment where research and training can be conducted safely, securely and confidentially.”
Reducing drilling and development spend has largely been the focus of services and equipment providers in the Gulf of Mexico – with the aim of lowering costs at the most capital intensive period of asset lifecycles. Often overlooked, Opex costs have grown in line with other upstream costs – 7% CAGR from 2010 to 2014 in the Gulf of Mexico. The North American offshore market has some of the highest overall MMO costs per barrel – more than twice the global average.
Historically, offshore Opex has been largely ignored as a critical driver of deepwater project economics, yet this is beginning to change. The current rate of growth combined with the overall operational cost in the Gulf of Mexico is not sustainable. Operators are deferring and cancelling many historically routine operational objectives as long as they stay within safety and regulatory guidelines. Budgets for maintenance and modification projects are now being revisited and contractors will feel the impact. Within our offshore support sector clients, many firms typically point to the large proportion of revenue that is production-linked, implying that this insulates from the effect of oil price cycles. Whilst this may be true up to a point, the effect of the current prolonged downturn clearly reaches far further than exploration and development activities.
Mergers and acquisitions are likely to be a result of this operational spending compression, but there are still many efficiencies to be shaken out. Practices such as consolidating projects and optimising contracting processes are already producing results in many cases. With breakeven economics at $70 per barrel or higher at some Gulf of Mexico prospects, recognition of operational costs and streamlining the value chain can no longer be overlooked.
Andrew Meyers, Douglas-Westwood Houston
Subsea IMR provider, N-Sea, has appointed Rienk De Vries as Chief Commercial Officer.
Currently based near Rotterdam, Mr. De Vries joins N-Sea with more than 20 years’ experience in the energy industry. Having spent a significant amount of time with Applus+ RTD, one of the world’s leading testing, inspection and certification companies, Mr. De Vries has experience of global leadership, driving businesses strategies and new product and technology innovation.
Commenting on Mr. De Vries’ appointment, N-Sea’s CEO Gerard Keser, said: “We are delighted to welcome Rienk to N-Sea’s management team. His depth of knowledge and experience will be invaluable to the company, helping to ensure we identify and pursue the most effective market opportunities, and remain resilient in a competitive marketplace.
As part of its continuing global growth strategy, N-Sea has also announced the opening of a new office in Dubai, with operations due to commence as early as August 2016.
The new base will support N-Sea’s increased presence in the region, allowing the company to conduct diving, ROV and survey projects in the civil engineering and offshore markets throughout the UAE.
The company has appointed Asa Gamble as Managing Director for the Middle East region, who will be responsible for the establishment and growth of all N-Sea services and products in the region.
“As we are starting the riser platform construction we are taking another important step in delivering the Johan Sverdrup project on schedule,” says project director for Johan Sverdrup Kjetel Digre.
The preparations for the riser platform construction started already in January 2015, when Aker Solutions was awarded the contract for engineering and procurement management for the processing platform and the riser platform for Johan Sverdrup.
The platform construction work commenced in the beginning of June 2016.
Project director for Johan Sverdrup Kjetel Digre (from right), project manager for the riser platform and the processing platform Ståle Nordal and head of Samsung Heavy Industries’ offshore division Younsang Won led the formal celebration of the construction start in South Korea 30 June. Photo courtesy: Statoil
“As of today Samsung Heavy Industries will gradually be given more responsibility for ensuring that the riser platform is built without any HSE incidents and that the platform is delivered according to plan and cost. We have an ambitious project plan for Johan Sverdrup, and we depend on high-quality and precision work from Samsung and more than 100 equipment package suppliers when they are delivering the riser platform and the processing platform topsides,” says Kjetel Digre.
The riser platform will play a key role on the field centre, as it will be the receiver of land-based power that will maintain operation on the Johan Sverdrup field for more than 50 years. From this platform the oil and gas from the huge Johan Sverdrup reservoir will be exported to land, to Kårstø (gas) and to Mongstad (oil).
The riser platform also represents the future of the Johan Sverdrup field.
“Our Johan Sverdrup development is based on 40 years of experience from the Norwegian continental shelf. We know that by working hard every day we are able to improve the oil and gas recovery and extend the life of our fields.
During the 50 years of production from Johan Sverdrup, innovation and new technology will open up new possibilities. That is why we, for the first time in an offshore project, have more than 2500 square meters of free deck space, which will be used for equipment and technology that may improve recovery and extend the life of Johan Sverdrup,” says Digre.
The free space will be used for realizing measures for improved recovery and phasing in future phases of the Johan Sverdrup development, and any other future discoveries on the Utsira High.
The riser platform is the largest of the four platforms constituting the Johan Sverdrup field centre. The platform will be 124 meters long, 28 meters wide, 42 meters tall, and have a total weight of 23,000 tons.
Construction of the processing platform (P1) for Johan Sverdrup will start during July 2016.
UTEC Survey, an Acteon company and one of the world’s largest independent offshore and onshore survey providers, has successfully completed a significant ROV navigation and seismic node positioning project in deepwater Gulf of Mexico.
The project, carried out for seismic nodal technology leader FairfieldNodal and undertaken in 2425m of water, involved use of the latest software and navigation technologies available to simplify operations, increase cost savings on an original scope of work, provide greater precision, increase efficiencies and thereby reduce job time.
UTEC conducted the project using a combination of acoustics and inertial positioning technology. A key element was the creation of an improved navigation software package incorporating the latest NavView technology from data and positioning analysis expert 4D Nav. The system provided enhanced and precise positioning awareness along with the management of inertial sensors and a bespoke link to FairfieldNodal’s data acquisition system. The innovative, real-time software enabled UTEC to integrate three separate positioning modules into one comprehensive package to increase efficiency and streamline user operations. It also provided enhanced graphics capabilities, following the replacement of existing online navigation, inertial navigation and node management software.
UTEC Regional Manager (Americas) Dave Ross said: “The successful completion of this project underlines the value in applying innovative solutions to increase operational efficiency and address costs, which is critical in the modern industry.
“Our excellent relationship with 4DNav meant that we were able to provide a bespoke solution to FairfieldNodal, which exceeded expectations, eliminated the need for multiple computers, streamlined activities and created a much more efficient operation. We are delighted at the successful outcome achieved by this exciting solution.”
The global oil and gas industry has sent out a strong message about its commitment to maintaining the safety of its workforce in the downturn with international training standards body OPITO on track to deliver a record number of approvals.
More than double the number originally projected, the industry organization is forecasting a record-breaking 108 new additions to the courses delivered by their network of approved training providers by the end of the year.
Recognized as the best in the world, OPITO standards are used by major international and national oil and gas companies in over 45 countries. Since the start of the downturn, OPITO has seen an increase in centers applying to deliver basic safety training to the workforce as well as specialist training such as fire-fighting and lifting operations; and dedicated training for offshore installation managers.
From October 2015 - March 2016 alone OPITO also approved 14 new survival training centers in six countries, with particular interest in the US and West Africa, some of which is new territory for the organization.
“The hazards and risks surrounding our industry remain the same regardless of the oil price,” said OPITO global chief executive David Doig. “Looking back to the number of incidents and accidents recorded around the previous lows of 1986 and 1999, the figures show a clear correlation between poor safety performance and a global downturn.
“Throughout the current downturn we have consistently urged companies to implement robust strategies that look at the long term needs of the workforce and avoid seeking to gain a measure of fiscal balance by cutting their investment in safety and skills development.
“While the numbers going through training have fallen in line with the jobs that have been lost in the global workforce what we are not seeing, by quite some way, is any reduction in the industry’s commitment to invest in the safety of its workforce. Instead what we are seeing is more demand than ever for people to be trained to globally recognized standards.”
The industry body sets training standards to ensure the safety of those working in oil and gas. Delivered by approved training providers across the globe, personnel receive quality assured training so they are competent to do carry out their roles safely.
“This is, at a fundamental level, what has changed between this and previous downturns. The industry now has a standards-based approach to training and competency which simply didn’t exist before,” added Mr. Doig.
“For many months we have seen the industry adjusting to the low oil price environment and there will likely continue to be bad news for many in the months ahead with regards to workforce cuts. But what we aren’t seeing is a race to the bottom with standards going out the window in favor of cost-based training.
“Instead, the message we are hearing loud and clear is that these standards are critical and the industry wants them.”
ExxonMobil Corporation (NYSE:XOM) confirms that drilling results from the Liza-2 well, the second exploration well in the Stabroek block offshore Guyana, confirm a world-class discovery with a recoverable resource of between 800 million and 1.4 billion oil-equivalent barrels.
“We are excited by the results of a production test of the Liza-2 well, which confirms the presence of high-quality oil from the same high-porosity sandstone reservoirs that we saw in the Liza-1 well completed in 2015,” said Steve Greenlee, president of Exxon Mobil Exploration Company. “We, along with our co-venturers, look forward to continuing a strong partnership with the government of Guyana to further evaluate the commercial potential for this exciting prospect.”
The Liza wells are located in the Stabroek block approximately 120 miles (193 kilometers) offshore Guyana. Data from the successful Liza-2 well test is being assessed.
The Liza-2 well was drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Ltd., approximately 2 miles (3.3 km) from the Liza-1 well. The Liza-2 well encountered more than 190 feet (58 meters) of oil-bearing sandstone reservoirs in Upper Cretaceous formations. The well was drilled to 17,963 feet (5,475 meters) in 5,551 feet (1,692 meters) of water.
“This exploration success demonstrates the strength of our long-term investment approach, as well as our technology leadership in ultra, deepwater environments,” said Greenlee.
The Stabroek block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds 25 percent interest.
The Industry Technology Facilitator (ITF) has launched a call for proposals to improve or offer alternative approaches to cement plugs which are currently deployed in plugging and abandonment (P&A) operations in wells.
The invitation is open to qualified organizations, with successful applicants having the opportunity to lead their own joint industry project (JIP) with support, funding and participation provided by influential members of ITF.
Throughout the JIP, the developer will receive technical guidance from ITF’s membership of global oil and gas operators and service companies to develop the technology further to best meet industry needs. This will profile the capabilities of the technology to a wider network of potential clients.
At present, cement plugs are the most conventional barrier material to isolate and protect all potential producing or water bearing zones from leaks and to allow the safe removal of subsea equipment. However, they come with a number of technically complex and costly issues, particularly around the hydration and placement process.
ITF is seeking an alternative or revised permanent well barrier that is long lasting, strong, able to be pumped, of extremely low permeability and able to perform at different temperatures and pressure ranges whilst maintaining its strength. The alternative material must adhere to best practice guidelines. The deadline for responses is Friday 22 July, 2016.
Dr Patrick O’Brien, CEO of ITF said: “There is now a clear impetus from energy leaders to address decommissioning challenges from the outset before real activity begins. We are looking for solutions which will safely improve operability, increase reliability and cut the cost of conventional technologies.
“Collaboration in technology development and delivery provides risk and cost reduction for the industry. We welcome submissions from all sectors, such as aerospace, medical and automotive, as often the answer can be transferred from outwith our own field of expertise.”
This is the third in a series of six calls to improve and develop cost-effective technologies to address the most pertinent problems when decommissioning a well, as identified by ITF members. Potential solutions for through tubing logging and removal of casing and tubing are currently being reviewed.
Offshore Source keeps you updated with relevant information concerning the Offshore Energy Sector.
Any views or opinions represented on this website belong solely to the author and do not represent those of the people, institutions or organizations that Offshore Source or collaborators may or may not have been associated with in a professional or personal capacity, unless explicitly stated.