Multi-user, deep-water extension to service subsea projects and decommissioning

Plans for significant further expansion of Lerwick Harbour's extensive deep-water facilities for the offshore oil and gas industry have advanced with the award of a major contract to extend the quay at Dales Voe South to support subsea developments and decommissioning.

Lerwick Port Authority has commissioned the Scottish business unit of civil engineering contractor BAM Nuttall as main contractor for an £11.95 million investment to lengthen the quay to 130 metres. Part of the Dutch construction group Royal BAM, BAM Nuttall specializes in complex marine construction, with a strong track record working around Scotland and on the Western and Northern Isles.

Lerwick has been servicing the offshore industry for over 50 years and now also has an established reputation as a location for decommissioning. The extended quay will provide deep-water, versatile berthing and heavy load capacity to take an offshore structure in a single lift, with a substantial, expanded laydown area.

Captain Calum Grains, Port Authority Deputy Chief Executive and Harbourmaster, said: "The contract marks an important step in further developing Lerwick's role as a leading centre of offshore industry operations. Dales Voe South is another value-added expansion and reflects our confidence in future activity, including ongoing subsea projects, particularly west of Shetland, and the developing decommissioning and offshore renewable markets."

As previously announced, the Scottish Government and agency, Highlands and Islands Enterprise, are providing £2.39 million in grant for the project, with Bank of Scotland supporting the Port Authority's investment.

Work will begin in April, with completion due in April 2016. At peak, BAM expects up to 40 people to be employed directly in the construction of the new facility, with wider benefits spreading to local suppliers and subcontractors.

Commenting on the contract award, BAM Nuttall's Business Unit Manager for Scotland, Dougie Grant said: 'We've been tracking the proposals for Dales Voe for over a year now and we're delighted to have been chosen by the Port Authority as their construction partner. We understand the positive impact this scale of investment can have locally and we look forward to engaging proactively with the Shetland community to ensure this benefit is fully realised."

Civil Engineers, Arch Henderson LLP, is responsible for design and project management of one of the largest infrastructure developments in recent years in the Port Authority's on-going program.

The contract will extend the quay by around 75 meters, with a load-bearing capacity of 60 tons per square meter, making it unique in Scotland. It will have 12.5 meters water depth alongside, like the existing quay, amongst the deepest of its type in Scotland. The sheltered voe, located between oil basins east and west Shetland, has 24-hour access to the North Sea.

The extension will be complemented by increased, adjacent laydown for equipment and materials. A phased expansion underway in recent years will total 45,000 square meters by 2016.

2014 saw the submarine fiber optics market surge to its highest demand for new cable since 2007 and the second highest since the early years of the 21st Century, before the market collapsed in late 2001.

This is the conclusion of the 2015 edition of TSC's Radar Screen Report (RSR), which analyzes the demand for submarine fiber optic cable based on new contract awards.

For the previous five years, the Radar Screen Report identified steady demand, rather than the traditional boom and bust pattern that had been a staple of the market since its inception. This steady-growth period was caused by various pressures pushing the market up, while similarly strong pressures pushed it down, keeping it to a steady middle ground. The result was an annual demand between 40,000 and 50,000 route-kilometers between the years 2009 and 2013 – far from a complete bust but not high enough for the industry to thrive.

Last year's Radar Screen Report noted slight changes in the landscape, particularly in the availability of financing, and correctly forecast the probability of breaking out from this steady-as-she-goes pattern to reach the highest levels of demand since the last boom in 2007-2008. The surge was even greater than forecast, with demand in 2014 approximately 100% higher than the average full-year totals during the previous five years.

RSR projections indicate the market is not likely to maintain this same momentum in 2015 as the surge took several large-scale systems out of the development pipeline. But the shifting dynamics and still-sizable number of cable projects in the pipeline are positive indications that the market is healthy, and in the near term will maintain the potential to thrive.

NYC-based PIRA Energy Group believes that Saudi Arabian production is likely increasing. In the U.S., another record U.S. crude and total commercial stock level reported. In Japan, crude runs near seasonal maximums and product demands are better. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

Saudi Arabian Production Is Likely Increasing
In discussions with Saudi customers and after reviewing recent U.S. refiner earnings calls, it is becoming clear that production from Saudi Arabia is rising. Saudi production had been averaging around 9.7 MMB/D since last June but PIRA would now guess likely additional demand has pushed output to just under, if not above, 10 MMB/D.

Another Record U.S. Crude & Total Commercial Stock Level Reported
The equation driving the U.S. crude balance is as simple as it is powerful: the 1.4 MMB/D year-on-year increase in domestic crude supply has only been met by a 0.3 MMB/D decline in imports, and the combined increase in crude runs plus exports is not nearly enough to prevent large stock builds in crude from continuing, especially this year versus last. Total commercial stocks built last week to a new record high. However, with a similar build last year, the year-over-year surplus inched up only about 0.1 million barrels.

Japan Crude Runs Near Seasonal Maximums, Product Demands Better
Crude runs rose fractionally, but crude imports rebounded and stocks built. Finished product stocks drew with a pickup in gasoil, gasoline, and kerosene demands. The indicative refining margin remained strong.

U.S. NGLs Stronger Last Week
A large decline in U.S. propane stocks propelled April Mont Belvieu futures over 8% higher to just under 60¢/gal, the highest price for C3 since December 4th. Propane's price relative to WTI rallied to over 45%, the strongest yet this year. April butane was 6% stronger week-on-week despite a disappointing decline in other NGLs stocks as reported by the DOE on Wednesday.

Ethanol Output Increases
U.S. ethanol production rebounded to 961 MB/D the week ending February 6, regaining around half of the sharp loss that occurred in the previous week. The production of ethanol-blended gasoline fell sharply.

Asia-Pacific Oil Market Forecast
Crude stock builds continue at a reduced pace and will give way to product stock builds. Global demand growth, year-on-year, is beginning to look better. The macroeconomic environment in Asia shows no large-scale deterioration in performance that would put our 5.3% Asian GDP growth assumption for 2015 at risk.

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.

Transocean Ltd. (NYSE: RIG) (SIX: RIGN) has announced that Steven Newman and the Board of Directors have mutually agreed that he will step down as President and Chief Executive Officer effective February 16, 2015. Additionally, Mr. Newman has elected to resign as a Director of Transocean Ltd. Until a permanent replacement is named, Ian Strachan, Chairman of the Board of Transocean Ltd., will also serve the company in the role of Interim Chief Executive Officer.

"As Chief Executive, Steven has capably guided Transocean over the last five years, demonstrating outstanding leadership through what was unquestionably the most challenging period in its history," remarked Mr. Strachan. "In addition to leading Transocean through company- and industry-changing events following the Macondo well incident, Steven initiated essential changes that have and will continue to improve the company's fleet, operations, cost structure and long-term competitiveness," Mr. Strachan said. "As a result, Transocean is well positioned to weather the current industry downturn and emerge even stronger. On behalf of the Board of Directors, and all Transocean employees, I would like to thank Steven for his dedicated service to the company and wish him all the best in his future endeavors."

Mr. Strachan has served as a Director of the company since 1999 and as Chairman of the Board since May 2013. His extensive experience includes serving as Chairman of the Board of Instinet Group Incorporated and as a director of several companies, including Xstrata plc; Rolls Royce Group plc; Reuters plc; and Johnson Matthey plc. Mr. Strachan began his career with Exxon Corporation, where he spent 16 years. He went on to serve as Rio Tinto plc's Chief Financial Officer for four years and ultimately the company's Deputy Chief Executive Officer from 1991 to 1995. He then served as Chief Executive Officer of BTR plc for three years beginning in 1996. Mr. Strachan received his BA in 1965 from Cambridge University, and his Master of Public Affairs in 1967 from the Woodrow Wilson School, Princeton University, and was a teaching fellow at Harvard University from 1969 to 1970.

Aberdeen based, Hydro Group Plc, a global designer and manufacturer of underwater cables and connectors for subsea, underwater, topside and onshore applications unveiled new machinery and subsea cabling capabilities at the Subsea Expo in Aberdeen this month.

As the only company in Scotland with this bespoke subsea cabling offering, which enables Hydro Group to offer cable products that will improve and support subsea operations, showcasing these capabilities at the largest annual subsea event in Europe, provides the ideal platform to launch this new offering to the market.

Graham Wilkie, Sales Director at Hydro Group said: "Having recently invested a six-figure sum on new state-of-the-art multi-layered steel armoured cabling machinery, it was important to identify the right opportunity to showcase this significant addition to our current capabilities and how this can enhance the quality of work we produce.

"The Subsea Expo has grown significantly in recent years, and as an Aberdeen headquartered company that continues to develop products from prototype concept through to design and manufacture in Scotland, the show represents a good opportunity to bring these new capabilities to a large target audience."

Expanding the product offering and capabilities has also meant the creation of new jobs for Hydro Group. Staff numbers at the firms Aberdeen base have risen to over 100 for the first time and projected turnover for 2015 is predicted to rise by 12%, thanks to increased development of new and existing markets.

Continuing Mr Wilkie said, "Having recently secured more than £2million worth of subsea contracts, thanks to existing and new capabilities, we will use the Subsea Expo as an opportunity to build on this success and demonstrate our extended product offering that includes hose bundle assemblies, dynamic HV cable, vectran braiding and steel wire armouring for high strain applications for all electrical and fibre optic subsea applications."

Hydro Group is at the forefront in the development and innovation of subsea product technologies, with involvement from prototype concept through to design, manufacture and project management. Hydro Group manufacture the complete package including FAT at its state-of-the-art facilities in Aberdeen, Scotland; umbilical cables, electrical and optical connection systems / assemblies for data, power and signal transmission. The company's customer base include all blue chip and major operators and contractors in both domestic and international subsea markets.

Event seeks out solutions to drive down costs and increase efficiency

Leading oil and gas industry figures will give their views on the growing importance of technology in helping the sector tackle cost and efficiency challenges in a difficult business environment at the Technology Showcase in Aberdeen on March 4.

The conference, organized by the Industry Technology Facilitator (ITF) in partnership with Oil & Gas UK, will take place at Aberdeen Exhibition and Conference Centre and aims to highlight the emerging technologies needed to improve production efficiency and curb rising operating costs in the UK Continental Shelf. The exhibition will showcase latest innovations from companies, universities and technology institutes across the UK.

The opening session will include presentations from Paul Warwick, executive vice president Europe Atlantic for Talisman Energy and Philippe Guys, managing director of Total E&P UK.

In his role as chair of the UK Technology Leadership Board, Mr. Warwick will present on evolving technology priorities for the North Sea industry. He said: "Our industry faces many challenges operating in the mature environment of the UKCS and beyond. This creates opportunities for us to develop and deploy new and existing technologies to deliver greater capital efficiency, improved safety and reliability, and operational excellence.

"To be successful, we will require renewed creativity, ingenuity and innovation and focus on how we recognize and apply new and emerging technologies. This change in approach will help to attract the next generation of technical graduates and apprentices."

Mr. Guys will speak about Total's technology roadmap and its support of the UK Technology Leadership board. He said: "Total takes a long term view when it comes to technology and we are looking to a future where innovation and the adoption of new technology will play an ever more vital role. Total has built on its many years of experience in the North Sea and also made use of the research and development work our company has generated across the world."

Other organizations set to present at the event include GE Oil & Gas, BP, Shell, Chevron and Baker Hughes. The event is also being supported by the Department of Energy & Climate Change and the Department for Business Innovation & Skills.

The four focus areas are:

• Drilling Efficiency, Well Intervention and Abandonment
• Efficient Water Injection, Handling and Processing
• Better Imaging, Targeting & Recovering our Reserves
• Digital Monitoring, Robotics and Autonomous Systems

Dr. Patrick O'Brien, CEO of ITF (photo) said: "There is no doubt of the vital role that technology will play in maximizing reserves and creating cost efficiencies in a low barrel price decline. The Technology Showcase aims to bring to life some of the areas where innovation can make the most dramatic difference from drilling more efficiently to supporting better imaging to target recovery. It's the ideal platform for pin-pointing practical solutions and collaborating to address the ongoing cost pressure challenges."

Oonagh Werngren, operations director at Oil & Gas UK, said: "The industry is operating in a difficult business environment which means that we must accelerate the development of innovative technology specifically to ensure the long-term future of the UKCS. Technologies need to be wide-ranging but deliver greater levels of efficiency and reduced cost. The advantage of the Technology Showcase is that it allows the technology research and development community to more accurately understand operators' technology needs while industry gains a deeper insight into cutting-edge innovations which could contribute to a productive life of the North Sea beyond 2050."

The conference program includes interactive sessions in which operating companies and developers will highlight specific technology needs and solutions for discussion. Alongside the conference program, technology companies and academics will give 'Tech Talks' within the exhibition arena.

As the second largest oil producer in Africa, Angola is heavily dependent on the oil sector, making it vulnerable to oil price fluctuations. In addition, drilling costs offshore Angola are very high, and DW forecasts a resultant drop in deepwater completions in Angola in 2016. Despite this set-back, Angola's deep and ultra-deep projects are key to driving offshore production during a period of reduced spending and retrenchment. We do not expect to see projects that are past FID being cancelled and many projects have been under construction for a number of years and will start up in the coming three years. The recent start-up of Eni's West Hub and Total's CLOV projects form the basis of our positive short-term forecast: DW expects Angola to meet its 2015 target production of 2 million barrels of oil per day.

As cuts to expenditure are announced, operators like BP and Total are looking to core assets in Angola as a focal point for spending over the next three years. Importantly, Total launched the development of the Kaombo ultra-deep project in April 2014, bringing online a potential 230,000 barrels of oil per day following start-up in two years' time. Chevron, ExxonMobil and Eni also have major deepwater oil projects in Angola, collectively adding a peak capacity of nearly 1 million barrels per day. These are all due to start production before 2018. DW forecasts a dip of 2.3% in offshore oil production in 2016, before recovering to 2.2 million barrels of oil per day in 2021.

The downturn offers exploration opportunities for larger oil companies, with potential for expansion in Angola as smaller companies apply for farm-in partners and Sonangol aims to sustain investment. Eni have staked their claim, securing a three year extension for exploration work near their Angolan assets. Repsol has also displaced an exploratory vessel from the Canary Islands for a venture offshore Angola.

A focus on core assets, and even the expansion of assets in Angola has been the message from several major oil companies at the start of 2015, safeguarding Angola through a period of oil price turbulence.

Celia Hayes, Douglas-Westwood London
+44 1795 594747 or This email address is being protected from spambots. You need JavaScript enabled to view it.
www.douglas-westwood.com

Harvey Gulf International Marine LLC made maritime history in North America last week by being not only the first owner/operator of a dual fuel offshore support vessel to bunker LNG as a marine fuel but to also successfully complete the first truck to vessel transfer of LNG and to power the M/V Harvey Energy on LNG.

The Harvey Energy built at GCSG in Gulfport, MS is based on the Vard Marine 1 311 design and is 310x64x24.5ft powered by 3 Wartsila 6L34DF dual fuel gensets providing 7.5MW of power fueled by Wartsila's LNGPac system. The Harvey Energy is US Flagged Subchapter I and L, SOLAS compliant and is classed by the ABS as +A1, OSV, +AMS, +DPS-2, +ACCU, UWILD, FFV-1, ENVIRO+, GP, GFS (Dual Fuel Diesel) E. With 5,150 tons of deadweight, the vessel is capable of carrying 253,000 USG of Fuel Oil, 18, 000 Bbls of Liquid Mud, 1,600 Bbls of Methanol, 10, 250ft3 of Dry Cement and 78,000 USG of LNG fuel.

This historic bunkering took place at a shore-based terminal owned by a subsidiary of Martin Midstream Partners L.P. in Pascagoula, MS. Participating in the activities alongside the crew of the Harvey Energy was the U.S. Coast Guard, the ABS, Wartsila, Martin Energy Services LLC, State and Local Agencies and GCSG. The cool-down process took approximately 12 hours to achieve the desired tank temperature and pressure utilizing 3,800 gallons of nitrogen. The LNG bunkering was successfully completed within a few hours of cool-down. The Harvey Energy will next proceed to LNG trials before delivery.

Mr. Shane Guidry, Chairman and CEO of Harvey Gulf, commented. "today's historic event is an example of Harvey Gulf's commitment to their customers and the environment to provide the most affordable, innovative, environmentally friendly technology solutions to meet their business demands."

In concert with the Harvey Energy, Harvey Gulf is preparing to operate the first LNG marine fueling facility in the United States, located at its vessel facility in Port Fourchon, Louisiana. The fueling facility will be a vital addition to the growing national LNG supply infrastructure, supporting critical operations of the oil and gas industry's offshore support vessel fleet operating on clean burning LNG.

Three More Planned for Coming Weeks

Crowley Accord Management Pvt. Ltd., the international ship management venture managed globally by Crowley Maritime Corp.'s ship management group, was awarded full technical management contracts for five new tankers. These tankers will be joined in the coming weeks by three more, bringing Crowley's international ship management fleet to more than 70.

The five products tankers brought under Crowley Accord management are the MT Dawn Haridwar, MT Dawn Mansarovar (photo), MT Dawn Mathura, MT Dawn Madurai and MT Portland Pearl. The first four are owned by Arya Tankers and will operate along the Indian Coast, while the fifth is owned by Union Maritime Limited and will operate in the Europe-to-Nigeria trade. Combined, these tankers represent over 130,000 gross tons in the market.

"The Crowley Accord partnership continues to be a successful one and this latest onboarding of additional vessels is testament to that," said Mike Golonka, vice president, ship management. "Vessel owners are seeking us out because we provide honesty and transparency in our operations and adaptable, safe and professional solutions for all of our customers."

"Crowley Accord draws on its pool of experienced resources, which are at its disposal both ashore and afloat," said Sanjay Shesh, managing director, Crowley Accord. "We utilize proven systems based on internationally recognized quality management principles and have the flexibility to meet all owners' needs for periodic technical and accounting reports – all things our new customers indicated were of importance to them."

The Crowley Accord acquisition, which took place in April 2014, immediately increased the size and scope of Crowley's technical ship management group and supported the company's expansion into the international ship management market with a foreign crewing presence.
The acquisition also made Crowley a rare U.S. company – one that provides third-party international crewing and technical ship management.

Crowley, founded 1892 and headquartered in Jacksonville, Fla., is one of the oldest ship owning and managing companies in the U.S., providing marine solutions, transportation, logistics and technical services in the domestic and international markets. Accord is a third party ship management company providing technical services and crew management as well as a broad range of back office services. With offices throughout the U.S., Mumbai, Goa, Hong Kong and Amsterdam, Crowley's international ship management group including Crowley Accord manages over 70 vessels of every type and variety. The company shows a strong focus on value added management models and safe, operational efficiency.

HB Rentals, a Superior Energy Services (NYSE: SPN) company specializing in onsite accommodation services, announces the installation of an end-to-end package for BHP Billiton, consisting of offshore accommodation modules and operating essentials for water, sewage, power and lighting.

The BHP Billiton project is in the Angostura Field, offshore Trinidad and Tobago. The installation is on the fixed platform Kairi 2 and supports a workforce of 72 personnel. HB installed its fiberglass stackable modules, consisting of a total of eight sleeper and general purpose buildings. The temporary living-quarter complex required local HB engineering design support to ensure the complex did not violate the structural integrity of the platform and to custom design platforms and stairs for ease of access.

HB's Trinidad-based project management team planned for the volumetric sizing and installation of the operating essentials necessary for daily onsite living and working, including fresh water supply, sewage management, power generation supply and lighting, as a comprehensive end-to-end package.

"HB Trinidad was able to provide all the essentials for this temporary living-quarter installation," said Jude Primeaux, business unit director of Latin / South America Operations. "Because BHP came to us for an end-to-end solution, we were able to streamline the installation process to fit a tight 14-day delivery window. Our product availability in Trinidad was a strong factor in delivering on this temporary project and helping BHP stay on schedule."

"Our ability to quickly respond with available product, engineering and project management support, and a comprehensive package were deciding factors in our being awarded this project," said Jason Cox, business development representative, Trinidad and Tobago. "Our goal with BHP was to help them stay on schedule to minimize the risk of unplanned downtime and associated productivity loss."

HB Rentals has been active in the Trinidad and Tobago market for 15 years and has supported up to 500 personnel on board (POB) at various times. Its accommodation fleet based in Claxon Bay, Trinidad, provides beds, galleys, diners, laundries, offices, recreation rooms and offshore service modules across its Fiberglass, ABS / USCG A60 Certified and DNV A60 Certified product lines.

Harvey Gulf International Marine LLC has achieved another milestone in maritime history by receiving the first ABS Classification Certificate and the first USCG Certificate of Inspection for a vessel powered by LNG. The M/V Harvey Energy is the first LNG powered vessel in service in North America. Last week, Harvey Gulf celebrated the first truck to vessel transfer of LNG, the first vessel to bunker LNG and was the first U.S. Flagged LNG powered vessel to enter into port while being powered by LNG. The vessel will be based out of Port Fourchon, LA and will immediately begin its long term charter role.

The M/V Harvey Energy built at GCSG in Gulfport, MS is based on the Vard Marine 1 311 design and is 310x64x24.5 ft powered by 3 Wartsila 6L34DF dual fuel gensets providing 7.5MW of power fueled by Wartsila's LNGPac system. The Harvey Energy is U.S. Flagged Subchapter I and L, SOLAS compliant and is classed by the ABS as +A1, OSV, +AMS, +DPS-2, +ACCU, UWILD, FFV-1, ENVIRO+, GP, GFS (Dual Fuel Diesel) E. with 5,150 tons of deadweight, the vessel is capable of carrying 253,000 USG of Fuel Oil, 18,000 Bbls of Liquid Mud, 1,600 Bbls of Methanol, 10,250ft3 of Dry Cement and 78,000 USG of LNG fuel.

Mr. Shane Guidry, Chairman and CEO of Harvey Gulf, commented, "The delivery of the Harvey Energy exemplifies Harvey Gulf's commitment to their customers to deliver world class ships that set highest of standards for offshore support vessels in the Gulf of Mexico."

Final Notice of Sale for Central Gulf of Mexico Planning Area

As part of the Obama Administration's all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production, Secretary of the Interior Sally Jewell and Bureau of Ocean Energy Management (BOEM) Director Abigail Ross Hopper have announced that Interior will offer 41.2 million acres for oil and gas exploration and development in the Gulf of Mexico in a March lease sale.

"This lease sale underscores the President's commitment to create jobs through the safe and responsible exploration and development of the Nation's domestic energy resources," said Hopper. "As one of the most productive basins in the world, the Gulf of Mexico is an important part of the Administration's energy strategy."

Photo: Courtesy of BOEM

Lease Sale 235 in the Central Planning Area will be held in New Orleans, Louisiana, on March 18, 2015. The sale will be the seventh offshore auction under the Administration's Outer Continental Shelf Oil and Gas Leasing Program for 2012-2017 (Five Year Program), which makes all areas with the highest-known resource potential available for oil and gas leasing in order to further reduce America's dependence on foreign oil. The lease sale builds on the first six sales in the Five Year Program that offered more than 60 million acres for development and garnered $2.4 billion in high bids.

The Gulf of Mexico contributes about 18 percent of U.S. domestic oil and 5 percent of domestic gas production, providing the bulk of the $13.5 billion in mineral revenue disbursed to Federal, state and American Indian accounts from onshore and offshore energy revenue collections in Fiscal Year 2014.

"As a critical component of the Nation's energy portfolio, the Gulf holds vital energy resources that can continue to generate jobs and spur economic opportunities for Gulf producing states, as well as further reduce the Nation's dependence on foreign oil," said Hopper.

Sale 235 encompasses 7,788 unleased blocks, covering about 41.2 million acres, located from three to 230 nautical miles offshore Louisiana, Mississippi, and Alabama, in water depths ranging from 9 to more than 11,115 feet (3 to 3,400 meters). BOEM estimates the proposed sale could result in the production of approximately 1 billion barrels of oil and 4 trillion cubic feet of natural gas.

The decision to hold this sale follows extensive environmental analysis, public comment and consideration of the best scientific information available. The terms of the sale include stipulations to protect biologically sensitive resources, mitigate potential adverse effects on protected species and avoid potential conflicts associated with oil and gas development in the region.

All terms and conditions for Lease Sale 235 are detailed in the Final Notice of Sale that can be viewed today in the Federal Register and are fully explained on the BOEM website at http://www.boem.gov/Sale-235/.

The sale package as well as printed copies of the maps can be requested from the Gulf of Mexico Region's Public Information Office at 1201 Elmwood Park Boulevard, New Orleans, LA 70123, or at 800-200-GULF (4853).

With submarine pipelines increasing in diameter and extending into deeper waters and more challenging environments, design requirements for concrete weight coating do often not meet current needs. The result is inconsistent safety margins and potentially expensive overdesign and stringent installation requirements. DNV GL has now kicked off the first phase of a joint industry project (JIP) to address these issues and improve the understanding of pipeline concrete behavior. The aim is to develop a design guideline that complements current pipeline codes and standards. The JIP is still open for participants.

Concrete weight coating is widely used to protect submarine pipelines and ensure stability on the seabed. The current design approach for pipeline concrete coating is primarily based on simple and general design requirements. The method has proven reasonably reliable for most traditional pipelines, but does not capture all potential failure modes. In recent times, several cases of concrete coating damage have been observed during installation and operation phases, with varying degrees of severity and potential risk.

The JIP is relevant for pipeline operators, designers, installation contractors and coating contractors. "Many industry players have expressed a wish for a more thorough understanding of the behavior of pipeline concrete weight coating during the installation and operational phases. They expect more specific acceptance criteria, a less conservative approach to the strain in the concrete coating subject to bending and a more accurate estimate of the strain concentration factor at the field joints. These are challenging issues which we want to explore in depth with this joint industry project," says Nguyen Thi Bich Ngoc, JIP Project Manager. "Current participants include Petrobras, Saipem, Bredero Shaw, SVAP and Wasco Coatings, and we still welcome new participants," she adds.

Preliminary studies conducted by DNV GL suggest that in-depth knowledge about the contribution of and interaction among several factors is needed to understand pipeline concrete coating behavior (e.g. the shear transfer capacity, coating thickness, strength, fabrication method, type, location, spacing, percentage steel reinforcement and loads). It is important that these factors are validated against recent test results and combined with knowledge gained from industry experience before being incorporated into pipeline codes and standards.

Richard Harrison, Engineering Manager (Installation Analysis & Sealine Design) in Saipem Ltd, says: "Saipem has continuously upgraded its fleet of pipe-laying vessels and developed new techniques for installing concrete-coated pipelines. Although we have been pushing the boundaries of our knowledge, we have been constrained by the lack of guidance that is available for installing these types of pipelines. Saipem welcomes this initiative and anticipates that such collaboration will directly extend the ability and confidence of the industry to deal with the increasingly challenging pipelines that will need to be designed and installed in the future."

The JIP will lead to a rational design approach based on a quantitative understanding of concrete-coating behavior in response to external loads and the interaction between the important mechanisms and factors that influence this behavior. The first phase of the JIP will develop a design approach for pipeline concrete coating and is due for completion by December 2015. The second phase is for an experimental validation of the design approach and development of a design guideline for pipeline concrete coating. The JIP is expected to be completed by the end of 2016.

Industry, government and regulators join the debate at Interspill 2015

The oil and gas industry is set to discuss the importance of maintaining focus on oil spill response across all sectors at the three day Interspill conference and exhibition in Amsterdam from 24 – 26 March.

Rob Cox, technical director at IPIECA and Interspill chairman, believes it is crucial that spill prevention and response remains a high priority even as the many initiatives set up after the 2009/10 offshore incidents are starting to deliver results.

He said: "Significant progress has been made in the aftermath of the Montara and Macondo incidents by the offshore industry but we must not take our eye off the ball; it is vital this work continues. The upstream community is more engaged than ever and legislation is hardening, so we are expecting a lot of debate around articulating the financial impacts of risk to help progress response capability for the offshore sector."

Interspill 2015 brings together industry, academia and government to hear about the latest developments in spill prevention and response. In addition to the conference, the exhibition will showcase the most ground-breaking technologies helping to improve response times and protect the environment. In the biggest exhibition to date, more than 100 exhibitors will demonstrate their latest innovations.

A packed conference program includes sessions on future risk, stakeholder engagement, multi-agency response, emerging technologies, wildlife preparedness and regulation. The opening plenary on current issues and challenges is being chaired by Rob Cox, and includes chairman of host trade association SRGH, Wierd Koops, Brian Sullivan, IPIECA Executive Director, Richard Johnson, Technical Director at ITOPF and Robert Limb, Chief Executive and Director at OSRL.

Other organizations set to present include: ExxonMobil, Shell Exploration & Production, SINTEF, IPIECA, IOGP, IMO, Cedre and SEA Consulting Group.

A first for Interspill is the closing plenary session where members of the International Offshore Petroleum Environmental Regulators Forum (IOPER) will present their principles for offshore oil spill preparedness in an industry-chaired session.

Mr Cox added: "The 1990 Oil Pollution Preparedness, Response and Cooperation Convention tasks industry to work cooperatively with the IMO and its national delegations and the statistics clearly show the success of our joint work with shipping. Now an opportunity exists for us to work together with international regulators to help improve global oil pollution prevention and preparedness in the offshore sector. We anticipate this will be of great interest to operators and the wider industry keen to hear about how the IOPER principles could drive regional and local regulation in practice."

Under the theme of 'working together' the conference aims to not only reflect on past events, but consider the likely future issues for oil and chemical spill prevention, response and restoration.

In addition to the conference programme, spill industry seminars and scientific workshops are being held on the exhibition floor and are free to attend.

The spill industry seminars feature presentations from leading manufacturers and other organisations, highlighting the latest developments.

The science workshops, led by Cedre will include sessions on dispersant breakthroughs, bioremediation, HNS pollution and spill impact assessment. In particular, the workshop on dispersant breakthroughs will take place on Tuesday at 1.30pm and focuses on chemical dispersion of oil in arctic areas, deep sea and tropical regions. Presenters include Tom Coolbaugh, distinguished scientific associate at ExxonMobil, Per Daling, senior research scientist at SINTEF and Francois Merlin, former head of R&D at Cedre.

The well-established program of educational short courses on a variety of spill related topics will run at the venue on Monday 23 March, the day before the conference opening.

Interspill 2015 takes place at Amsterdam RAI Convention Centre. The last event in 2012 in London attracted over 1,300 delegates, visitors and exhibitors from over 70 countries.

Subsea 7 S.A. (Oslo Børs: SUBC: the Company) has announced it has been awarded a contract by Woodside Energy Ltd for the Persephone Work Pack 2 Fabrication, Subsea Installation and Diving Services project, offshore Australia.

The Persephone Project consists of two wells tied into a subsea production manifold with production fluids transported to the existing North Rankin Complex (NRC). The contract comprises fabrication, transportation, installation and pre-commissioning activities within the principal scope of work, with additional deconstruction and pipeline suspension work in the Echo Yodel Field at the Goodwyn AlphaPlatform.

The Company's diving construction vessel Seven Eagle will perform all of the offshore activities. Project management and engineering will commence immediately from the Company's office in Perth,Australia, with offshore operations scheduled to commence in the fourth quarter of 2015.

Andy Woolgar, Vice President, Australia & New Zealand, said: "We are very pleased to receive this important award from Woodside Energy Ltd. We believe it is a strong reflection of our long, successful and collaborative relationship with Woodside."

The offshore oil and natural gas leasing program proposed by the Obama administration puts America's energy competitiveness at risk, API President and CEO Jack Gerard told reporters as the government kicked off a series of public meetings on the proposal around the country.

"America has a chance to be the world leader in energy now and for decades to come," said Gerard. "But the opportunity could slip through our fingers if the government keeps 87 percent of offshore waters closed to oil and natural gas leasing.

"Studies show we could create 840,000 new jobs and raise more than $200 billion for the government if oil and natural gas development is allowed in the Atlantic, Pacific and Eastern Gulf of Mexico.

"By ignoring major energy-rich areas, the administration is turning its back on American workers. In the Atlantic, the government proposed just one lease sale for the next five-year cycle. Secretary Jewell was quick to say even that may be canceled. Exploration and production in Alaska is also being restricted both on and offshore.

"This is America's energy moment. But the moment will pass unless our government leaders allow more exploration and production of our abundant oil and natural gas resources.

"Consumer benefits are being driven by increased domestic production. To keep these benefits in the future, we must plan for the long-term today.

"Let's seize the opportunity in front of us and secure America's position as the world leader in energy and job creation."

API represents all segments of America's oil and natural gas industry. Its more than 625 members produce, process, and distribute most of the nation's energy. The industry also supports 9.8 million U.S. jobs and 8 percent of the U.S. economy.