Aker Solutions' maintenance, modifications and operations (MMO) business in Norway secured a contract from Statoil for preliminary engineering work to enable a tie-in of the Utgard gas and condensate field to the Sleipner facilities in the North Sea.

Photo: Harald Pettersen / Statoil.

The work involves preliminary engineering for platform modifications at Sleipner to tie in the Utgard subsea field. Statoil may also exercise an option in the contract for engineering, procurement, construction, installation and commissioning (EPCIC) services for the platform modifications, which will be decided on later this year by the development's license partners.

"This builds on the strengths of our operations in Norway and our expertise in complex modifications," said Per Harald Kongelf, head of Aker Solutions' Norwegian operations. "We are pleased to be working further with Statoil on this important field development to secure crucial resources."

The work will be managed and executed by Aker Solutions' MMO unit in Stavanger. It builds on a series of modification projects that Aker Solutions has carried out for Statoil at Sleipner over the past five years.

"We are continually working on delivering the most cost-effective and efficient solutions for our customers," said Knut Sandvik, head of Aker Solutions' MMO operations. "This award confirms that we are on the right track."

ASCO announces the renewal of a significant contract in Norway. The award with BP Norge emphasises the established geographic scope of ASCO’s Norwegian operations as well as the value placed on its integrated approach to logistics management.

The supply services contract will be delivered across Norway, providing support in Tananger and Farsund, as well as further services in the northerly base of Sandnessjøen.

ASCO will continue to provide BP with support relating to quayside handling, local transport, cargo carrying units (CCU) and waste management, inventory and materials management, customs compliance and storage. They will also manage services within aviation, logistics/marine, and material management.

The contract has 3 x 3 year options and this marks the start of the first option period which will run until Q1 2019.

Runar Hatletvedt, Managing Director, Northern Europe at ASCO said: ‘We look forward to continuing and strengthening our valued relationship with BP. This renewal demonstrates ASCO’s capability to provide comprehensive oilfield support services packages that deliver vital efficiency gains.

‘ASCO’s capabilities in Norway are far reaching, and this extension provides recognition of the value this brings to our clients.’

The proprietary Delmar Quick Release (DQR) was successfully installed and activated on a traditionally moored semi-submersible MODU in the US Gulf of Mexico. Eight DQRs were installed in an offshore mooring systems and deployed for over 160 days in approximately 7800' of water.

The DQR was used to save critical path rig time during transit from an offshore drilling site. Through detailed planning and efficient offshore execution, using the DQR resulted in approximately 3.5 days of saved rig time during disconnection operations. In addition, the DQR was used during weather that prohibited the use of the anchor handling vessel's ROV, which would have further delayed the rig move schedule.

“The first use of the Delmar DQR has provided the experience and assurance that our manual mooring release will provide both operational efficiency and mooring diversification for drilling operations in the future”, said Matt Smith, Delmar’s Vice President of Operations. “Our thanks to the drilling contractor and operator for providing us the opportunity to prove this technology in a real work situation.”

The patent pending DQR is an in-line mooring component developed by Delmar Systems, Inc. with a simple mechanical release feature that allows a vessel to separate from its mooring system while the lines are under tension. The system allows the rig to safely and efficiently offset or depart from a moored location, with or without the use of support vessels, alleviating the need for waiting on vessels to mobilize and arrive. The DQR can be used with any anchor foundation and allows for safe mooring of DP rigs as well as traditional moored rigs.

Delmar Systems received classification society approval from ABS and DNV for the design and manufacturing of the DQR, ensuring compliance with the strict industry standards for offshore mooring.

Click here to see the rig activate the DQR

NYC-based PIRA Energy Group believes that fundamentals at weakest point; forward look Is supportive. In the U.S., there was a modest stock increase. In Japan, crude runs were marginally higher, imports rose and stocks still drew. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:

Fundamentals at Weakest Point; Forward Look Is Supportive

Physical crude markets are currently at their maximum period of weakness because of refinery maintenance. Overall global oil supplies increase much less in 2016 than demand growth which will surprise to the upside. The huge difference between supply and demand should force global surplus stocks down in second half 2016 and, in turn, drive oil prices substantially higher. Oil supply disruptions surged in March amidst heightened political risks, and these risks look likely to continue. Margins and refinery runs will strengthen through the summer before weakening.

Supply Challenges Remain

With the 2015-2016 “heating season” officially complete, the market’s focus on weather has clearly slackened. Moreover, it appears spring is already stoking more bullish price expectations despite massive storage surpluses, not to mention the early arrival of injections in some regions, most notably in the South Central (SC). The inherent limits on injections in that region in particular is more than capable of limiting any sustained Henry Hub price strength given the needed increased reliance on demand gains in the electric generation sector. Moreover, the heightened risk of SC storage congestion in 2Q16 stands to distort regional basis relationships, especially in the Midwest (MW). Downstream prices in the MW appear to have already begun to decouple with HH amid the heightened supply competition. Excess SC supply will likely migrate into the MW region, despite the high risk of incremental supply from the WCSB, Rockies, Midcontinent and/or Appalachia.

Wet March Boosts WECC Hydro Prospects

Above-normal precipitation in the Columbia River Basin above The Dalles boosted March hydro generation and lifted April to September runoff projections to above-normal status. With California precipitation also above normal, hydro output forecasts have been revised up WECC-wide. Gas prices averaged below February levels at all Western hubs, with declines ranging from 11% at the PG&E Citygate to 18% at Sumas. However, despite the huge storage overhang, gas spot prices have rallied since early March as markets factored in negative supply impacts from this winter’s price rout. March on-peak energy prices fell from February levels at all hubs with declines ranging from $2/MWh at Palo Verde to $5 at SP15. Given the turnaround in gas markets and warmer-than-normal spring/summer weather forecasts, Southwest power prices should begin to move higher, but strong hydro and rising solar output will pressure gas unit margins for the balance of 2016.

Global Equities Mostly Positive

Global equities posted an aggregated gain of 0.6%, week-on-week. In the U.S, all the tracking indices, other than energy, moved higher. The best performers were housing, technology, consumer staples and consumer discretionary. Internationally, all the tracking indices gained, other than Japan. BRICs, emerging Asia, and China performed the best.

Ethanol Stocks Build

U.S. ethanol production declined for the second straight week as several plants have started to undergo annual maintenance. Inventories built by 503 thousand barrels to 23.0 million barrels, with PADD I stocks increasing to a four-year high.

Funds Selling Corn Again

For the two weeks ending March 29th, Non-Commercials covered 85+K corn shorts, something they probably wished they hadn’t done. While the net short was 142K contracts as of last Tuesday, volume and open interest statistics lead us to believe that the Fund net short is back over the 200K contracts entering a new week of trading. The net soybean short from two weeks ago had turned into 40K contract net long as of last Tuesday, a result of 47K contracts in net buys over the two-week period, and it is currently estimated around 42K contracts.

Coal Market Remains Weak, but Signs of Life for 2017

Forward prices moved decidedly higher in March, particularly for late-2016 and Cal-17. This brings forward prices more in line with PIRA’s outlook from February. While prices are expected to soften over the next two months, we remain generally bullish for 2017 pricing, on the expectation of higher oil prices and slowly realigning fundamentals. There is measurably less upside for CIF ARA pricing due to further weakening in demand.

Russia Confirms Removal of Discount on Ukraine Gas

The discount on the gas price for Ukraine that was valid in the first quarter of the year expired, and from April 1 the price of gas will be in compliance with the current contract, Russia’s Energy Minister Alexander Novak said. The discount was agreed within the framework of the so-called "winter package" by Russia, Ukraine and the European Union. From April 1 of this year, the price of gas for Ukraine will fully comply with the current contract between Gazprom and Naftogaz of Ukraine, the minister said.

Modest U.S. Stock Increase

U.S. commercial oil inventories increased this past week, about half last year’s build for the same week. Crude and distillate narrowed their surplus to last year, while gasoline and the rest of the barrel modestly increased it. Overall stocks remain a huge 150 million barrels (12%) above last year. Higher crude runs and higher product demand have resulted in the first crude stock draw in eight weeks and modest product stock declines.

LNG Looms as We Look Forward to Injection Season

After four straight months of significant demand destruction, March was relatively normal with only 416 MMCM lost due to warmer-than-normal weather. Still, this winter marked the third winter in a row of above-normal temperatures that led to a deterioration in spot prices. This year’s deterioration has been the largest of the last three winters in both absolute (11p/th) and percentage terms (28%). This price loss also confirms our assumption that the relationship between temperature deviations and price is actually growing in significance due to the demise of gas use in the power sector (until recently).

Financial Stress Lower

For the seventh straight week, the S&P 500 rose on a weekly average basis. It also posted a solid gain of about 1.8% week-on-week. Of note was a weakening in the high yield debt tracking index (HYG), though other indicators retained a constructive bias. There continues to be a decline in the yield of BAA rated corporate bonds, which suggests financial stresses have lessened.

Stocks Remain Elevated

U.S. coal stocks remain at elevated levels, as massive supply cuts have been neutralized by extreme demand weakness due to very low natural gas prices and a mild winter. The production constraint does set the stage for material stock declines in the future as natural gas prices rise.

U.S. Ethanol Prices Follow Corn Cost Lower

U.S ethanol prices declined March 31 after corn prices plunged following a bearish report.

Farm Economy Concerns Intensify

As if on cue, the Kansas City Federal Reserve sent out a report titled “Mounting Pressure in the U.S. Farm Sector” Thursday morning before the annual Prospective Plantings and Quarterly Stocks reports were released. Once the numbers were disseminated to the markets, the picture went from worrisome to bleak.

Japanese Crude Runs Marginally Higher; Imports Rose and Stocks Still Drew

Crude runs were marginally higher and crude imports rose, though crude stocks still drew. Finished product stocks also drew slightly. Gasoline demand eased post-holiday, but higher yield was offset by higher exports and stocks drew slightly. Gasoil stocks built on lower demand and much higher yield. Kerosene demand was little changed and stocks continued to post an end-of-season draw. Margins remain good. Cracks were higher week-on-week due to strength in gasoline and naphtha.

Second-Half Price Rebound Ahead

PIRA’s bullish price outlook has been tempered by the collapse of gas-weighted heating degree days (GWHDDs) and the related inflation of end-March storage. During 2Q, the ~1 TCF year-on-year storage surplus should ultimately limit recovery. An end-March exit of ~2.5 TCF will mandate ~40% less year-on-year net injections. Unlike 2012, when EG gains from coal to gas curbed injections, the 2016 remedy will be more back-loaded, tied to declining production and stronger non-EG demand. Indeed, PIRA has maintained a bullish post-2Q HH price posture from expected structurally corrective factors gradually taking firmer control of the market.

Spreads Unsustainably Squeezed

German forward prices have been stabilizing, thanks to higher API 2 coal and carbon prices, but spreads are barely allowing existing coal units to cover their fixed costs. Hedging strategies are in part to blame, as power generators continue to sell, while demand is limited. French prices are too low relative to the forward curve, especially during the winter, considering that the French conventional fleet has narrowed considerably. Even in the U.K. market, where reserve capacity margins are razor thin, prices and spark spreads remain fairly weak. Cash-out prices on March 10 spiked to a multi-year high, suggesting market tightness is already happening during days with lower plant availability.

March Weather: U.S. and Japan Warm, Europe Cold

March weather for the three major OECD markets turned out 6% warmer than the 10-year normal, bringing the month’s oil-heat demand in these markets to a negative 97 MB/D versus normal. They were warmer than the 30-year normal by 13%.

Interplay of Nigerian and Qatari LNG Spot Sales Tell an Important Tale

PIRA sees the flow of Nigerian LNG to Asia and Qatari LNG to Europe as central drivers in spot price formation in the emerging LNG spot trade. These two producing countries alone accounted for 50% of all spot deals in 2015 (and the previous two years) and a vast majority of all LNG moving to markets outside their own region. PIRA sees the role of Nigerian LNG shifting significantly in the years to come, as the opportunity to place spot volumes in Asia will become harder to justify on a netback basis.

Mixed Data on U.S. Economic Growth, but Positive Surprises on Global Manufacturing

There were three main takeaways from this week’s U.S. data releases: key indicators of economic momentum showed strength; data used as inputs for computing GDP, in contrast, pointed to sluggish growth; and inflation has begun to firm. So the question was: how do these developments impact the U.S. growth and monetary policy outlooks? Globally, key confidence indicators on manufacturing revealed surprising strength during March.

LPG Freight Rates Keep Falling

Spot VLGC freight rates continue to plumb new lows. The benchmark Ras Tanura to Chiba, Japan, rate fell another 12% last week to just $28/MT – 82% below the 2015 high. Freight rates are currently at their lowest levels since 2010. There seems to be little relief in sight as new-build tanker deliveries will continue to flood into the fleet throughout 2016 and with, as PIRA predicts, lower exports out of the U.S. in the second half of this year.

Slow Start to the Injection Season Motivates Buyers

Thursday’s 25 BCF storage draw could be the year’s final week-on-week net reduction, despite a shift to colder-than-normal weather in early April. That said, U.S. balances this month should provide greater clarity on the difficulty ahead of adequately curbing year-on-year storage injections given an end-March carryout of ~2.48 TCF. Moreover, while PIRA’s April balances appear constructive, bearish risks exist on both sides of the ledger.

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.

Songa Offshore has taken delivery of Songa Enabler from Daewoo Shipbuilding & Marine Engineering (DSME) in Korea.

Songa Enabler will shortly depart South Korea en route to Norway for commencement of an eight-year drilling contract with Statoil, with the first assignment on the Snøhvit field. The transit will take place with tow-assist and the rig will arrive in Norway with all third party equipment installed and ready for the client's final acceptance testing. Commencement of drilling operations is expected to take place in third quarter 2016.

Songa Enabler is a sixth generation, high specification, harsh environment, fully winterized, midwater rig designed for efficient year around drilling, completion, testing and intervention operations in water depths up to 500 meters. The rig is certified DP3 and is equipped with a "state-of-the-art" drill-floor and an efficient layout with improved safety and working environment features. 

Songa Enabler is the last rig in a series of four Category D rigs specifically built for and contracted to Statoil.

Johan Sverdrup is by far the largest ongoing project on the Norwegian Continental Shelf for the next few years.

Statoil has awarded contracts to DNV GL for verification of all 4 topsides, the 3 bridges, 3 of 4 jackets, topside installation by use of the Allseas single lift vessel ‘Pioneering Spirit and extended site assessment for the jack-up.

Johan Sverdrup is by far the largest ongoing project on the Norwegian Continental Shelf for the next few years. Credit: Statoil ASA

Third party verification gives the operator and the authorities confidence that the project development has the required safety and quality level.

“The contract demonstrates that our investment in technology, service development and efficient operations is making us competitive also in this cost challenged market. We sincerely look forward to supporting Statoil and the Johan Sverdrup partners on this important project,” says Regional Manager for DNV GL- Oil & Gas Norway, Kjell Eriksson.

The value of the contracts is approximately 60 MNOK. 


Third party verification builds trust


Through third party verification, operators, public authorities and society at large can rest assured that operations, structures and systems meet the requirements set by legislation, the industry, authorities - and in some cases - voluntary commitments made by commercial operators. For the structures at Johan Sverdrup, a risk based verification approach is chosen to assess compliance with NORSOK standards, VMO standards (developed by DNV GL) and Statoil’s own technical requirements.

IHC IQIP has officially launched its new S-4000 Hydrohammer pile-driving system. The Royal IHC business unit’s latest development in hydraulic impact hammers is the largest available on the market, and enables the installation of offshore foundations in even the toughest ground conditions with the largest type of monopile. It‘s also suitable for applications in the oil and gas industry.

As offshore wind farms are predicted to move further offshore into deeper waters, the demand for larger monopiles and, subsequently, larger hammers is also expected to increase. Built using proven technology, the Hydrohammer has a strike power of 4,000kJ, which is the most competitive piling outputs currently available.

The S-4000’s slim body design allows for easy handling and can be used in parallel with other IHC IQIP systems, such as the Noise Mitigation System (NMS) and existing pile sleeves (from 108” to 6.5m in diameter). Oil supply has also been upgraded through the implementation of new 3” hydraulic hoses, which can also be easily stored on deck with the Hose Reel 12-80 series.

In addition, the lifting and movement of the hammer has been improved thanks to the new up-end cradles that facilitate easier transportation. Through the development of this supplementary technology, IHC IQIP has been seeking to proactively support the market demand for larger hammer specifications.

IHC IQIP has already supplied a fully operational S-4000 unit to DEME Group’s offshore marine engineering division GeoSea, which specialises in complex engineering projects. The relationship between IHC and GeoSea has long been productive, and the handover period of the S-4000 was a successful one. It has been delivered to the 41.3km² Nordsee One offshore wind farm project in the German North Sea, which has an average water depth of between 25 and 29m. GeoSea already successfully installed more than 10 monopiles with the S-4000, after installing the first 30 monopiles with the Hydrohammer S-3000.

IHC IQIP’s Remco Lowenthal says: “We are delighted that the S-4000 is already proving a success for GeoSea. We have a reliable partnership with them, and it is gratifying to see the confidence they have in us and our technology. The experience and expertise that has gone into the design of the S-4000 will allow us to operate effectively on future projects all over the world, regardless of the conditions.”

Backlogs for subsea equipment manufacturers have been historically high in recent years – following record levels of subsea tree orders posted in 2013-2014. The process of working through these backlogs has thus-far cushioned the market against the decline in order activity seen in 2015. However, these backlogs are now being eroded rapidly as new orders are dwindling. This will expose original equipment manufacturers (OEMs) to the reality of the oil price downturn, with a trough in installations expected in 2017-2018.

With many offshore projects delayed or cancelled due to the oil price downturn, there is understandably a media focus on these delays. But what are operators doing to position themselves for the expected recovery in activity and how quickly will they be able to proceed with delayed development projects in the event of an oil price recovery?

During the previous industry cycle it was evident that many operators took the opportunity in the downturn to continue to progress development concepts and initial engineering on stalled projects. We are seeing a similar trend this cycle. Notably, in Australia, Hess Oil Corporation is proceeding with the tender process for the engineering, procurement and construction (EPC) contracts for a giant semi-submersible platform and other subsea equipment for its Equus field development project. This is despite the fact that the project is not expected to be sanctioned until 2017.

This scenario is not limited to Australia. Notably, in the US Gulf of Mexico, BP is in the process of tendering for EPC contracts for its Mad Dog Phase 2 project, notwithstanding the fact that the timetable for the final investment decision (FID) remains uncertain. Anadarko’s Shenandoah field is an additional example – pre-FEED exploration and appraisal drilling is occurring, even though project sanctioning has been delayed.

Over the course of an upturn in activity, lead-times for delivery and prices typically increase as activity picks up. Being ‘first in the queue’ as a result of a strategy to continue FEED work through the cycle may be vital in maximising the net present value operators can achieve from future field developments.

Katy Smith, Douglas-Westwood London

Statoil has, on behalf of relevant licensees, exercised options for previously awarded drilling service contracts for fixed installations. Options have been exercised for 17 installations on the Norwegian continental shelf.

The company now extends the contracts with the suppliers, exercising the first option. The option period will last from 1 October 2016 to 1 October 2018, with some changes to the scope awarded.

The Njord field. Credit: Statoil

The total contract value for the next two-year period is estimated by Statoil at up to NOK five billion. The work includes drilling and well services, the maintenance of drilling facilities, in addition to modifications and any optional work.

“The suppliers have demonstrated innovation and submitted good proposals for continued development of these services, and Statoil is positive to continuing the work with all of the three companies. The current contracts will help maintain activity on competitive terms in a market challenged by profitability,” says Geir Tungesvik, Statoil’s senior vice president for drilling and well.

Seagull Oil & Gas has launched the most cost efficient and comprehensive e-learning training package in the industry for offshore personnel working in explosive atmospheres.

Building on International Electrotechnical Commission (IEC) standards, the new series covers basic understanding, installation in Ex-areas, Exi installation, cable entry, IP degree, and inspection and maintenance.

“We believe today’s market requires more cost efficient and better Ex and El safety training” says Morten Aasen, Managing Director, Seagull Oil & Gas. “Together with leading subject experts we have developed a series of new courses covering these safety-critical subjects. The e-learning will work as individual self-study courses but also offered as part of blended learning."

The content of the courses includes e-learning modules that normally require two days of classroom study covering theory. ExTek, the only certified CompEx centre in Norway, will offer the self-study course components so that an entire five-day 01-04 CompEx course can be completed with only three days spent in the classroom.

“Blended learning and self-study will be a greater part of future training, both to increase quality and reduce the cost of training,” says Mr. Aasen. “Ex and El safety are important subjects for our clients and we will continue to develop innovative and cost efficient solutions to meet their demands.”

The next MTS Houston Section luncheon will be held on April 28 2016. Dr. Michael Pavia, Chief Technology Officer with Glori Energy, will discuss delaying plug and abandonment by improving oil cut for mature offshore facilities.

Enhanced oil recovery operations are less common offshore in comparison to their mature counterparts onshore. Large inter-well distances, facilities constraints and capital expenditure limitations due to declining production greatly restrict choices for tertiary recovery strategies. Moreover, as oil cut continues to fall, maintaining economic production requires processing ever-increasing water volumes eventually requiring plugging and abandonment (P&A) even though well over 60% of the original oil remains in the formation.

A biological enhanced oil recovery (EOR) solution initially deployed offshore in the North Sea has been validated with multiple onshore demonstrations and is now available for mature, offshore facilities to promote preferential oil flow in water-flooded sandstone reservoirs. The method makes use of the existing biology in the formation.

This presentation will cover how rapid increases in oil production and oil-water ratios were achieved in as little as two to four months following initiation of biological EOR. Recommendations are offered for extracting otherwise trapped oil and recovering significantly more of the oil-in-place prior to P&A.

About the Speaker:

Dr. Michael Pavia is Chief Technology Officer with Glori Energy. Prior to joining Glori, Dr. Pavia was Entrepreneur-in-Residence with the venture capital firm Oxford Bioscience Partners, a position he held from 2002 to 2010.

Before joining Oxford, Mike Pavia was Chief Technology Officer at Millennium Pharmaceuticals, where his major focus was to improve the productivity of the drug discovery and development process through the appropriate use of new technologies.

Dr. Pavia has over 20 years of experience in pharmaceutical research and discovery. He was formerly VP - Cambridge Research at Sphinx Pharmaceuticals.

He also held senior scientific positions in the Department of Chemistry at the Parke-Davis Pharmaceutical Research Division of Warner-Lambert with a focus on drugs of the central nervous system. He serves on the boards of Azevan Pharmaceuticals Inc., and Selventa, Inc.

Dr. Pavia holds a bachelor’s degree in chemistry from Lehigh University and a doctorate in organic chemistry from the University of Pennsylvania.

UPCOMING MTS HOUSTON PRESENTATIONS AND EVENTS

Intertek, a leading global quality solutions provider, has been appointed by FAB Link Ltd. to provide marine environmental and planning support for the France-Alderney-Britain (FAB) Project - a proposed electrical interconnector situated underwater between France and Great Britain via the island of Alderney.

A 1400MW High Voltage Direct Current (HVDC) electricity interconnector project that will connect the French and British electricity grids. The project will consist of two pairs of electrical cables, a converter station at each end, and connections into the high voltage grids at each end. The interconnector will travel nearly 220 km between the electrical substations at Menuel, on the Cotentin peninsula in France, and near Exeter, Devon, England and is scheduled to commence construction in 2018.

As marine specialists with extensive interconnector project experience in the UK and internationally, Intertek will be responsible for coordinating pre-application consultation, consent applications and consent compliance activities for FAB Link’s offshore infrastructure between UK landfall and southern extent of Alderney waters. This will include delivery of a marine license application to the Marine Management Organization (MMO) in England and a Food and Environment Protection Act (FEPA) license application to the States of Guernsey for protection of the seabed required during the cable installation process.

Frank Beiboer, Managing Director of Intertek Energy & Water, said: “With a submarine power cable track record which spans more than 15 years and 10 interconnector projects, we are pleased to have been selected by FAB Link and look forward to working closely with their project team to develop this major international offshore infrastructure project.”

Intertek has extensive interconnector project experience including cable routing constraints and feasibility studies, route engineering, and survey management.

This project is being jointly developed by RTE and FAB Link Limited. FAB Link Ltd is a joint venture company of Transmission Investment LLP and Alderney Renewable Energy Ltd. RTE is the French transmission system operator of the electricity grid.

The project will allow a maximum transmission of 1400MW to help meet the need for increased capacity of energy trade between the two countries and thus contribute to the energy transition in Europe. The project is also designed to provide a route to market for marine renewable energy planned to be constructed in the seas around Alderney.

FAB has been recognized as a “Project of Common Interest” by the European Union following support received from both the French and UK governments. The FAB project has received funding from the European Commission through the Connecting Europe Facility.

Intertek’s Energy & Water provide the power transmission & renewables, oil & gas, water utility, and ports & harbours sectors with technical solutions to complex environmental and regulatory challenges throughout their project life cycle.

The Bureau of Safety and Environmental Enforcement (BSEE) and The National Aeronautics and Space Administration (NASA) have announced a five-year agreement allowing BSEE to capitalize on the best risk management approaches from the aeronautics industry to inform stakeholders and further strengthen worker and environmental safety protections on the Outer Continental Shelf.

Photo credit: BSEE

“Both BSEE and NASA work in harsh and uncompromising environments, relying on cutting edge technology to go deeper and further than previously thought possible,” said BSEE Director Brian Salerno. “This partnership brings together technical experts from BSEE and NASA to focus on the specific risks associated with offshore operations so that we can continue to find ways to improve safety for offshore workers and protect the environment.”

Used by NASA, probabilistic risk assessment is a technique to quantitatively model risk. It was used in the modeling of the Space Shuttle Program and is presently being used for the International Space Station and Orion deep space capsule programs.

“Whether the task takes one to deep space, or into the deep ocean, the analysis of the environment, training of personnel and risk mitigation factors are similar,” said Jack James, technology transfer strategist at the Johnson Space Center. “NASA is pleased to work with BSEE, and we endeavor to learn best practices from each other.”

Damen Anchor & Chain Factory (AKF) has shown it remains expert in welding following the renewal of its ISO certification. The certificates; ISO 9001 and ISO 3834 welding procedure show AKF follows stringent quality management systems and has strict procedures in place for its welders and welding procedures.

“The ISO 3834 welding procedure is a foundation for Damen Anchor & Chain Factory for its future strategy in meeting the market demands in custom made towing chains and the repair of towing and hoisting equipment,” explained Laurens van Gelder, General Manager of AKF. “Offshore companies and steel mills require us to have certain procedures in place and of course want to be assured they are receiving quality standards in welding jobs. Receiving our renewal shows we remain experts in the field of welding.”

The certification addresses all aspects of design and fabrication of welded components, including welding procedure specifications, quality control and quality assurance during welding.

In order to receive the qualification, AKF had to demonstrate its welding and procedures are of the highest quality and use quality components. Welders have extensive training and experience, their skills are verified and comply with all applicable codes and standards.

Mr. Van Gelder added: “Most of the well-known offshore companies in the field of oil and gas and steel mills requiring heavy duty hoisting equipment already know where to find us. Being an anchor and chain producer from origin, Damen Anchor & Chain Factory is among the world’s most experienced companies to handle such requests.”

The welding certification, which is part of ISO 9001, was first obtained in 2012 and covers hoisting and towing equipment, anchors and chains. ISO 9001 was first obtained in 1998.

A total of 36 crude and natural gas projects are expected to commence operations in the North Sea by 2025, with the UK being responsible for 25, while nine will be located in Norway and the remaining two in Denmark, according to research and consulting firm GlobalData.

The company’s latest report* states that of these planned projects, 31 will be for crude, with all five gas projects to be undertaken by the UK. In terms of their impact on global crude production, key planned projects in the North Sea are expected to contribute 819,000 barrels of oil per day (mbd) and 1.1 billion cubic feet of gas per day (bcfd) by 2025.

Joseph Gatdula, GlobalData’s Senior Upstream Analyst, explains: “The UK will contribute the most planned projects in the North Sea region to 2025 as most new fields are smaller, less expensive tie-backs that utilise existing infrastructure.”

GlobalData’s report also states that the total capital expenditure (capex) incurred by key planned projects is expected to total US$86.5 billion, of which US $43.4 billion is anticipated to be spent between 2016 and 2025. Norway is expected to lead the region in these terms, with capex of US $27.8 billion during the 2016-2025 period.

Matthew Beven, GlobalData’s Upstream Analyst, comments: “Norway will lead North Sea capital expenditure, with Statoil contributing around 65%. This is mainly due to the Johan Sverdrup project due on stream in 2019.”

*Production and Capital Expenditure Outlook for Key Planned Upstream Projects in North Sea

The global oil and gas industry gathers a large amount of data on HSE incidents, which is shared both within companies and amongst peers. Despite this, similar types of incidents occur again and again – why?

Next month’s SPE International Conference and Exhibition on Health, Safety, Security, Environment, and Social Responsibility (HSSE-SR) will be an excellent opportunity for oil and gas professionals to hear HSE best practice in other industry sectors, and discuss how this can be applied in the oil and gas industry.

HSSE-SR, to be held at the Stavanger Forum in Norway from 11 to 13 April 2016, will take place under the theme ‘Sustaining Our Future Through Innovation and Collaboration’. This year’s event will include a number of presentations from other relevant sectors and stakeholders, aimed at reaching beyond the oil and gas industry.

The airline industry, for example, has well-developed processes for sharing and learning from their incidents and near misses. At HSSE-SR, attendees will hear about these processes from airline industry experts. This will be followed by a discussion on how these processes can be applied in the oil and gas industry, in order that it better learns from past incidents and establishes a culture of learning that runs from top to bottom within companies.

Session Chair Claudine Gorman, SSH&E Manager at ExxonMobil said, "I have tremendous respect for the improvements that the airline industry has made in their safety performance, and am excited about the opportunity to learn from their experiences. I think that their ability to connect with their people has facilitated their ability to truly learn from their incidents and near misses".

Robert Schroeder, Check-Captain/Flight Safety Specialist, Lufthansa is more succinct, “In the words of Antoine de Saint-Exupery ‘there is only one true joy: interacting with people’”.

HSSE-SR is expected to draw a wide range of delegates to share new ideas, process improvements, technological advances and innovative applications to enhance HSE performance. As well as plenary and panel sessions, there will be a multi-stream technical programme, which will include oral and Knowledge Sharing ePosters.

Attendees will also have the opportunity to visit more than 20 exhibitors, who will be demonstrating the latest solutions to HSE challenges facing stakeholders in oil and gas exploration and production, as well as attend a variety of networking events, which will be an opportunity to share experiences with peers and build fruitful relationships with stakeholders.

HSSE-SR will be hosted by Statoil, Platinum Sponsors are Baker Hughes, ExxonMobil and Shell, and ERM is the Gold Sponsor. The event is endorsed by the International Association of Drilling Contractors (IADC) and International Association of Oil and Gas Producers (IOGP).

For more information, and to register, click here.